Minnesota Session Laws - 1989 1st Special Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1989
CHAPTER 1-H.F.No. 1
An act relating to the financing and operation of
government in Minnesota; changing tax rates and bases;
modifying the administration, collection, and
enforcement of taxes; imposing taxes; creating tax
exemptions; changing the computation, administration,
and payment of aids, credits, and refunds; providing
new aids and credits; making technical corrections and
clarifications; changing proposed property tax notice
provisions; changing levy limits and other local
government powers and duties; allowing certain units
of local governments to impose taxes; changing tax
increment financing provisions; providing that the
state will be supplier of gambling equipment;
authorizing establishment of an economic development
authority in the city of Otsego and in Kandiyohi
county; exempting Itasca county from a levy limit
penalty and authorizing a special levy; modifying the
levy authority of the Red River watershed management
district; authorizing an appropriation by Aitkin
county; providing for payment of certain aid to the
cities of Falcon Heights and Lauderdale; extending the
duration of tax increment financing districts in the
cities of Moorhead and Chanhassen; exempting a
redevelopment district in the city of Minneapolis from
certain requirements; allowing certain cities or towns
in Pine county to become part of the North Pine area
hospital district; granting certain powers to towns;
modifying certain bond allocation procedures;
requiring studies of state and local finance issues;
requiring the governor to recommend spending
reductions; setting the amount of the budget reserve;
establishing plans and programs to reduce waste
generated, recycle waste, develop markets for
recyclables, address materials that cause special
problems in the waste stream, prevent, control, and
abate litter, inform and educate the public on proper
waste management; requiring a mechanism to fund
certain mental health services; providing procedures
for allocating costs of certain human services between
the state and county agencies; imposing penalties;
appropriating money; amending Minnesota Statutes 1988,
sections 3.885, subdivisions 3, 5, and by adding
subdivisions; 3.982; 6.62, subdivision 1; 10A.31,
subdivision 5; 16A.15, subdivision 6; 18.023,
subdivision 8; 60A.14, subdivision 1; 60A.15,
subdivision 1; 60A.19, subdivision 6; 110B.15,
subdivision 4; 115.34, subdivision 1; 115A.03,
subdivision 25a, and by adding subdivisions; 115A.072;
115A.15, subdivision 5, and by adding subdivisions;
115A.46, by adding a subdivision; 115A.48, subdivision
3, and by adding a subdivision; 115A.915; 115A.96,
subdivision 2, and by adding a subdivision; 116.07, by
adding a subdivision; 116K.04, by adding a
subdivision; 124.42, subdivisions 1 and 4; 124.83,
subdivision 1; 124A.26, subdivision 1; 129A.06,
subdivision 2; 145A.08, subdivision 3; 164.041;
256.736, subdivision 13; 256B.091, subdivision 8;
256B.19, subdivision 1, and by adding a subdivision;
256D.03, subdivision 6; 256G.01, subdivision 3;
256G.05; 256G.07; 256G.10; 256G.11; 270.067,
subdivisions 1 and 2; 270.11, subdivision 2; 270.12,
subdivision 3, and by adding a subdivision; 270.13;
270.18; 270.77; 270.82; 270.84; 270.85; 270.87;
272.02, subdivision 4, and by adding subdivisions;
272.025, subdivision 1; 272.115, subdivision 1;
273.064; 273.065; 273.111, subdivision 4; 273.123,
subdivisions 4, 5, and 7; 273.13, subdivisions 21a,
24, 25, 31, and by adding subdivisions; 273.1392;
273.1398, subdivisions 2, 3, and by adding
subdivisions; 273.33, subdivision 2; 273.37,
subdivision 2; 274.14; 275.065, subdivisions 1, 3, 4,
6, 7, and by adding subdivisions; 275.07, subdivision
1, and by adding a subdivision; 275.08, subdivisions 2
and 3; 275.124; 275.125, subdivision 18; 275.15;
275.16; 275.29; 275.50, subdivision 5; 275.51,
subdivisions 3f, 3h, 3i, 3j, 4, 6, and by adding a
subdivision; 275.58, subdivisions 2 and 3; 276.01;
276.04, subdivisions 2 and 3; 276.09; 276.10; 276.11,
subdivision 1; 277.01, subdivision 1; 277.02; 277.05;
277.06; 277.13; 284.28, subdivisions 4 and 7; 287.29;
290.01, subdivision 29; 290.02; 290.05, subdivisions 1
and 2; 290.06, subdivisions 1, 21, and by adding a
subdivision; 290.067, subdivision 2, and by adding a
subdivision; 290.091, subdivision 2, and by adding a
subdivision; 290.095, subdivision 2, and by adding a
subdivision; 290.17, by adding a subdivision; 290.21,
subdivision 4; 290.35, subdivisions 1, 4, and by
adding a subdivision; 290.37, subdivision 1; 290.38;
290.92, subdivision 21, and by adding a subdivision;
290.934, subdivision 3a; 290A.04, subdivisions 2, 2h,
3, and by adding subdivisions; 290A.07, subdivision
2a; 295.34, subdivision 1; 297A.01, subdivision 3;
297A.02, subdivision 2; 297A.15, subdivision 5, and by
adding a subdivision; 297A.25, subdivision 3, and by
adding subdivisions; 297A.257, subdivision 1; 297A.39,
by adding a subdivision; 298.01, by adding
subdivisions; 298.28, subdivisions 6 and 12; 298.282,
subdivision 3; 298.39; 298.396; 325E.115, subdivision
1; 349.12, subdivision 19, and by adding subdivisions;
349.16, by adding a subdivision; 349.212, subdivisions
1, 2, 4, and by adding a subdivision; 349.2127,
subdivision 4, and by adding a subdivision; 353A.10,
subdivision 3; 360.037, subdivision 2; 368.01,
subdivision 14; 373.40, subdivisions 1 and 2; 375.18,
by adding a subdivision; 386.015, subdivision 5;
400.08, by adding a subdivision; 412.221, subdivision
22; 414.01, subdivision 15; 444.075, subdivisions 1
and 4; 444.16; 444.17; 444.18; 444.19; 444.20; 447.34,
subdivision 1; 447.35; 465.73; 469.167, subdivision 2;
469.171, subdivision 7, and by adding a subdivision;
469.174, subdivisions 10, 16, 17, and by adding a
subdivision; 469.175, by adding a subdivision;
469.176, by adding a subdivision; 469.177,
subdivisions 6 and 10; 469.190, subdivisions 2 and 3;
471.572, subdivision 2; 471.74, subdivision 2;
471A.03, subdivision 4; 473.149, subdivision 1;
473.167, subdivision 4; 473.249, subdivision 2;
473.446, subdivision 8; 473.711, subdivision 5;
473.803, subdivision 1; 473.87; 473F.05; 473F.06;
473F.07, subdivisions 1, 2, and 5; 473F.08,
subdivisions 3, 3a, 5, and by adding a subdivision;
473F.09; 473H.10, subdivision 3; 474A.061,
subdivisions 1, 2, and 4; 474A.091, subdivisions 2 and
3; 475.74; 475.754; 477A.011, subdivisions 1a, 3, 3a,
20, and by adding subdivisions; 477A.012, by adding
subdivisions; 477A.013, subdivision 3, and by adding
subdivisions; 477A.014, subdivision 1; 508.75; 508.76;
508.77; 508.78; 508.79; 508.82; 508A.76; 508A.77;
508A.78; 508A.79; 508A.82; Minnesota Statutes 1989
Supplement, sections 16A.1541; 115A.12, subdivision 1;
115A.46, subdivision 2; 121.904, subdivisions 4a and
4e; 124.2131, subdivision 1; 124.243, subdivision 3;
124.244, subdivision 2; 124.83, subdivision 4;
124A.03, subdivision 2; 124A.23, subdivision 1;
256.82, subdivision 1; 256.871, subdivision 6;
256.935, subdivision 1; 256B.041, subdivision 5;
256D.03, subdivision 2; 256D.051, subdivision 6;
256D.36, subdivision 1; 256G.02, subdivision 4;
270.12, subdivision 2; 272.02, subdivision 1; 273.061,
subdivision 1; 273.1104, subdivision 2; 273.119,
subdivision 2; 273.124, subdivision 6; 273.13,
subdivisions 22 and 23; 273.135, subdivision 2;
273.1391, subdivision 2; 273.1398, subdivisions 1, 5,
and 6; 275.07, subdivision 3; 275.125, subdivisions 5,
5b, and 9; 275.14; 275.28, subdivision 1; 275.58,
subdivision 1; 287.12; 290.01, subdivision 19c;
290.015, subdivisions 3 and 4; 290.05, subdivision 3;
290.06, subdivision 2c; 290.0802, subdivision 1;
290.17, subdivision 2; 290.191, subdivision 6; 290.92,
subdivision 4b; 297A.25, subdivisions 11 and 16;
297A.44, subdivision 1; 298.282, subdivision 2;
349.12, subdivision 11; 349.15; 349.161, subdivision
1; 349.163, subdivision 3; 349.19, subdivision 6;
349.214, subdivision 2; 357.021, subdivision 1a;
373.40, subdivision 6; 412.251; 426.04; 469.033,
subdivision 6; 469.174, subdivision 7; 469.175,
subdivisions 3 and 7; 469.176, subdivisions 1 and 6;
469.190, subdivision 1; 471.1921; 473.882, subdivision
3; and 477A.013, subdivision 1; Laws 1976, chapter
162, section 1, as amended; Laws 1986, chapter 399,
article 1, section 1; Laws 1987, chapter 268, article
6, section 54, as amended; 1988, chapter 719, article
1, section 22; and article 12, section 29, as amended;
Laws 1989, chapter 282, article 5, section 133;
chapter 329, article 1, section 17, subdivision 2;
article 2, section 8, subdivision 2; and article 5,
section 21, subdivisions 2 and 3; and chapter 335,
article 3, sections 54, subdivision 8; and 58, as
amended; proposing coding for new law in Minnesota
Statutes, chapters 3; 16B; 115A; 124; 173; 256; 273;
274; 290; 290A; 297A; 325E; 349; 469; and 473;
reenacting Minnesota Statutes 1988, section 256D.051,
subdivision 6a; repealing Minnesota Statutes 1988,
sections 3.981; 3.983, as amended; 134.34, subdivision
6; 245.775; 270.81, subdivision 5; 273.135,
subdivision 2a; 273.1391, subdivision 2a; 275.065,
subdivisions 2 and 5; 275.11; 275.50; 275.51; 275.54;
275.55; 275.56; 275.561; 275.58; 290.092, subdivision
5; 290A.04, subdivision 2h; 349.2121, subdivision 4;
471A.04; 477A.011, subdivision 24; 477A.013,
subdivision 4; Laws 1989, chapter 282, article 5,
section 133, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
STATE-LOCAL FINANCE REFORM
Section 1. [STATEMENT OF POLICY.]
The legislature finds that Minnesota's system of state
government support of local government operations has helped
local governments to provide needed local services and to hold
down property taxes but that substantial reform of Minnesota's
state-local finance system is now needed.
The legislature further finds that a system of state-local
finance that properly allocates funding between the state and
political subdivisions will distribute state assistance more
efficiently and fairly, will contribute to a more equitable
distribution of tax burden among individuals based upon ability
to pay, will encourage cost-efficient operations by both state
government and political subdivisions, will hold state
government and political subdivisions accountable for the
services they provide and finance, will provide stability to the
property tax and local aids systems and help to ensure the
financial stability of state and local governments, will have
more understandable state aids and mandates, and will serve to
reduce overall state and local costs for program delivery.
Sec. 2. [3.881] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] For purposes of this article,
the following terms have the meanings given them.
Subd. 2. [POLITICAL SUBDIVISIONS.] "Political subdivisions"
are counties, cities, towns, school districts, and other local
government jurisdictions to which the state provides state aids
or on which the state imposes state mandates.
Subd. 3. [STATE AIDS.] "State aids" are programs by which
state government provides financial assistance to political
subdivisions to assist them in delivering public services, to
finance public facilities, or to reduce property taxes. These
programs include both state funding provided in connection with
state mandates and other state financial assistance programs
that do not involve state mandates.
Subd. 4. [STATE MANDATES.] "State mandates" are those
programs and procedures required by state law or rule to be
financed, delivered, or performed by political subdivisions.
State mandates include federal programs to the extent the state
elects to impose them as mandates on political subdivisions but
does not include federal mandates for which there is no
substantial state discretion.
Subd. 5. [NONPROGRAM MANDATES.] "Nonprogram mandates" are
those state mandates which apply equally to private entities and
political subdivisions or which relate to the basic organization
and institutional operation of political subdivisions.
Nonprogram mandates include, but are not limited to,
requirements relating to:
(1) the provision of constitutionally prescribed rights and
privileges;
(2) the implementation of generally applicable health and
safety standards, provided that nonprogram mandates do not
include requirements relating to recycling, wastewater
treatment, and hazardous and solid waste disposal;
(3) the provision of services by licensed or credentialed
persons or institutions;
(4) the holding of elections for offices other than
national and state offices;
(5) the holding of public meetings and the giving of
notices to the public in connection with those meetings;
(6) the collection of taxes and other revenues;
(7) the preparation of financial audits and other reports
required by the state;
(8) the collection, creation, reception, maintenance, or
dissemination of public data;
(9) collective bargaining, binding arbitration with public
employees, pay equity, comparable worth, and other provisions
affecting terms and conditions of public employment;
(10) competitive bidding and other provisions relating to
the execution of public contracts;
(11) the protection of the public from illegal or unethical
actions by local public officials; and
(12) the enforcement and administration of discretionary
local ordinances and rules.
Subd. 6. [PROGRAM MANDATES.] "Program mandates" are those
state mandates other than nonprogram mandates.
Subd. 7. [STATE PROGRAMS.] "State programs" are programs
operated by state agencies or authorities that are not state
mandates or state aids.
Sec. 3. [3.882] [POLICIES FOR REVIEWING THE FUNDING OF STATE AIDS
AND MANDATES.]
Subdivision 1. [GENERAL PRINCIPLES.] The following general
principles shall guide state-local finance reform in Minnesota.
(a) State resources should finance all or most of the cost
of program mandates.
(b) Political subdivision resources should finance all or
most of the cost of nonprogram mandates and those local programs
that are not state mandates.
(c) A combination of state and political subdivision
resources should finance certain programs that, because of their
purpose, extent, or cost, are shared responsibilities of the
state and the political subdivisions.
(d) In order to accommodate wealth disparities among
Minnesota's political subdivisions and income disparities among
individuals, the state should assist political subdivisions in
providing a basic level of local services at levels of local
taxation that are not excessive.
Subd. 2. [POLICY FOR FUNDING PROGRAM MANDATES.] Preference
for higher proportions of state funding should be given to those
program mandates having the most specific and extensive
requirements, that permit the least amount of discretion by
local public officials, and that relate primarily to services to
individuals rather than services to real property. Preference
for lesser proportions of state funding shall be given to those
program mandates which tend not to meet the preceding criteria
and for which program effectiveness, fairness, and
cost-efficiency will likely be greater with financial
participation by political subdivisions.
Sec. 4. Minnesota Statutes 1988, section 3.885, is amended
by adding a subdivision to read:
Subd. 1a. [TASK FORCE.] For the purpose of implementing
the review of state aids and state mandates required under
subdivision 6, paragraph (d), the commission must designate a
joint legislative task force to advise and make recommendations
to the commission regarding the review of state aid programs.
Sec. 5. Minnesota Statutes 1988, section 3.885,
subdivision 3, is amended to read:
Subd. 3. [STAFF.] (a) The commission may:
(1) employ and fix the salaries of professional, technical,
clerical, and other staff of the commission;
(2) employ and discharge staff solely on the basis of their
fitness to perform their duties and without regard to political
affiliation;
(3) buy necessary furniture, equipment, and supplies;
(4) enter into contracts for necessary services, equipment,
office, and supplies;
(5) provide its staff with computer capability necessary to
carry out assigned duties. The computer should be capable of
receiving data and transmitting data to computers maintained by
the executive and judicial departments of state government that
are used for budgetary and revenue purposes; and
(6) use other legislative staff.
(b) The commission may hire an executive director and
delegate any of its authority under paragraph (a) to that
person. The executive director shall be appointed by the chair
and vice-chair to a four-year term, shall serve in the
unclassified service, and is subject to removal by a majority
vote of the members of either the senate or the house of
representatives.
(c) The legislative coordinating commission shall provide
office space and administrative support to the committee. The
state planning agency shall report to the committee, and the
committee may make recommendations to the state planning agency.
Sec. 6. Minnesota Statutes 1988, section 3.885,
subdivision 5, is amended to read:
Subd. 5. [DUTIES.] (a) The commission shall:
(1) provide the legislature with research and analysis of
current and projected state revenue, state expenditures, and
state tax expenditures;
(2) provide the legislature with a report analyzing the
governor's proposed levels of revenue and expenditures for
biennial budgets submitted under section 16A.11 as well as other
supplemental budget submittals to the legislature by the
governor;
(3) provide an analysis of the impact of the governor's
proposed revenue and expenditure plans for the next biennium;
(4) conduct research on matters of economic and fiscal
policy and report to the legislature on the result of the
research;
(5) provide economic reports and studies on the state of
the state's economy, including trends and forecasts for
consideration by the legislature;
(6) conduct budget and tax studies and provide general
fiscal and budgetary information;
(7) review and make recommendations on the operation of
state programs in order to appraise the implementation of state
laws regarding the expenditure of funds and to recommend means
of improving their efficiency;
(8) recommend to the legislature changes in the mix of
revenue sources for programs, in the percentage of state
expenditures devoted to major programs, and in the role of the
legislature in overseeing state government expenditures and
revenue projections; and
(9) make a continuing study and investigation of the
building needs of the government of the state of Minnesota,
including, but not limited to the following: the current and
future requirements of new buildings, the maintenance of
existing buildings, rehabilitating and remodeling of old
buildings, the planning for administrative offices, and the
exploring of methods of financing building and related costs;
and
(10) conduct a continuing study of state-local finance,
analyzing and making recommendations to the legislature on
issues including levels of state support for political
subdivisions, basic levels of local need, balances of local
revenues and options, relationship of local taxes to
individuals' ability to pay, and financial reporting by
political subdivisions. In conducting this study, the
commission shall consult with the governor, the staff of
executive branch agencies, and the governor's advisory
commission on state-local relations.
(b) In performing its duties under paragraph (a), the
commission shall consider, among other things:
(1) the relative dependence on state tax revenues, federal
funds, and user fees to support state-funded programs, and
whether the existing mix of revenue sources is appropriate,
given the purposes of the programs;
(2) the relative percentages of state expenditures that are
devoted to major programs such as education, assistance to local
government, aid to individuals, state agencies and institutions,
and debt service; and
(3) the role of the legislature in overseeing state
government expenditures, including legislative appropriation of
money from the general fund, legislative appropriation of money
from funds other than the general fund, state agency receipt of
money into revolving and other dedicated funds and expenditure
of money from these funds, and state agency expenditure of
federal funds.
(c) The commission's recommendations must consider the
long-term needs of the state. The recommendations must not
duplicate work done by standing committees of the senate and
house of representatives.
The commission shall report to the legislature on its
activities and recommendations by January 15 of each
odd-numbered year.
The commission shall provide the public with printed and
electronic copies of reports and information for the legislature.
Copies must be provided at the actual cost of furnishing each
copy.
Sec. 7. Minnesota Statutes 1988, section 3.885, is amended
by adding a subdivision to read:
Subd. 6. [MANDATE, STATE AID, AND STATE PROGRAM
REVIEWS.] (a) The commission shall, after consultation with the
governor and with the chairs of the standing committees of the
legislature, select mandates and state programs for review.
When selecting mandates, state aids, or state programs to be
reviewed, the commission shall give priority to those that
involve state payments to local units of government.
(b) The governor is responsible for the performance of the
reviews. Staff from affected agencies, staff from the
department of finance and the state planning agency, and
legislative staff shall participate in the reviews.
(c) At the direction of the commission, reviews of state
programs shall include:
(1) a precise and complete description of the program;
(2) the need the program is intended to address;
(3) the recommended goals and measurable objectives of the
program to meet those needs;
(4) program outcomes and measures which identify:
(i) results in meeting stated needs, goals, and objectives;
(ii) administrative efficiency, which, when appropriate,
shall include number of program staff and clients served,
timeliness in processing clients and rates and administrative
cost as a percent of total program expenditures;
(iii) unanticipated program outcomes;
(iv) program expenditures compared with program
appropriations;
(v) historical cost trends and projected program growth,
including reasons for fiscal and program growth, for all levels
of government involved in the program;
(vi) if rules or guidelines or instructions have been
promulgated for a program, a review of their efficacy in helping
to meet program goals and objectives and in administering the
program in a cost-effective way; and
(vii) quality control monitoring and sanctions including a
review of the level of training, experience, skill, and
standards of staff;
(5) recommended changes in the program that would lead to
its policy objectives being achieved more efficiently or
effectively, or at lower cost; and
(6) additional issues requested by the commission.
(d) The following state aids and associated state mandates
shall be reviewed:
(1) local aids and credits including local government aid,
homestead and agricultural credit aid, disparity reduction aid,
taconite homestead credit and aids, tax increment financing, and
fiscal disparities;
(2) human services aids including community health services
aids, correctional program aids, and social service program and
administrative aids;
(3) elementary and secondary education aids including
school district general fund aids and levies, school district
capital expenditure fund aids and levies, school district debt
service fund aids and levies, and school district community
service fund aids and levies; and
(4) general government aids including natural resource
aids, environmental protection aids, transportation aids,
economic development aids, and general infrastructure aids.
(e) At the direction of the commission, the reviews of
state aids and state mandates involving state financing of local
government activities listed in paragraph (d) shall include:
(1) the employment status, wages, and benefits of persons
employed in administering the programs;
(2) the desirable applicability of state procedural laws
and rules;
(3) methods for increasing political subdivision options in
providing their share, if any, of program costs;
(4) desirable redistributions of funding responsibilities
for the program and the time period during which any recommended
funding distribution should occur;
(5) opportunities for reducing program mandates and giving
political subdivisions more flexibility in meeting program
needs;
(6) comparability of treatment of similar units of
government;
(7) the effect of the state aid or mandate on the
distribution of tax burdens among individuals, based upon
ability to pay;
(8) coordination of the payment or allocation formula with
other state aid programs;
(9) incentives that have been created for local spending
decisions, and whether the incentives should be changed;
(10) ways in which political subdivisions have changed
their revenue-raising behavior since receiving these grants; and
(11) consideration of the program's consistency with the
policies set forth in section 3.
(f) Each review shall also include an assessment of the
accountability of all government agencies that participate in
administration of the program.
(g) Each review that is intended to be considered in the
development of the governor's budget recommendations for the
following year shall be completed and submitted to the
commission no later than November 15.
Sec. 8. Minnesota Statutes 1988, section 3.885, is amended
by adding a subdivision to read:
Subd. 7. [FUNDS FOR STATE AID RESTRUCTURING.] If, upon
completion of a review of a state aid or state mandate under
subdivision 6, the governor determines that the program should
be abolished or changed in a manner that would increase,
decrease, or redirect the aid that is paid under the program,
the governor may recommend that change to the commission. If
the commission agrees with that recommendation, the governor
shall include the change in the next budget presented to the
legislature under section 16A.11. If the agreed upon
recommendation is to abolish the state aid program or to reduce
the amount that would otherwise be recommended for expenditure
for the program, the budget must designate the amount that would
have been recommended for expenditure, and reserve that amount
in a state aid account. The governor may make specific
recommendations for expenditure from the account only for other
state aid programs or general property tax relief. If the
recommendation by the governor and the commission on a state aid
program is to increase the amount to be expended, that amount
must be financed within the budget submitted to the legislature
in accordance with section 16A.11.
Sec. 9. Minnesota Statutes 1988, section 3.885, is amended
by adding a subdivision to read:
Subd. 8. [POLITICAL SUBDIVISION REPORTING.] No later than
November 15, 1990, the commission shall make recommendations to
appropriate standing committees of the legislature on any
changes in uniform accounting and financial reporting methods
necessary to assure public and legislative oversight of
expenditures by cities, counties, towns, and special service
districts. The recommendations shall consider opportunities for
on-line access by appropriate state officers to political
subdivision accounts. In preparing these recommendations, the
commission shall consult with the state auditor, the legislative
auditor, and the commissioners of finance and revenue.
Sec. 10. Minnesota Statutes 1988, section 3.982, is
amended to read:
3.982 [FISCAL NOTES FOR STATE-MANDATED ACTIONS.]
When the state proposes to mandate that a local agency or
school district take an action, and when reasonable compliance
with that action would force the local agency or school district
to incur costs mandated by the state, a fiscal note shall be
prepared as provided in section 3.98, subdivision 2, and made
available to the public upon request. If the action is among
the exceptions listed in section 3.983, a fiscal note need not
be prepared.
When a bill proposing a new or expanded mandate on a
political subdivision is introduced and referred to a standing
committee, the chair of the standing committee to which the bill
is referred shall request the appropriate state agency or
department to prepare a fiscal note before the bill is heard in
the committee. Before a proposed mandate is issued in an
executive order, the governor or appropriate agency head
assigned by the governor shall prepare the fiscal note and make
it available to the public. the head of each affected department
or agency of the state government shall prepare a fiscal note
identifying the projected fiscal impact of the bill on state
government and on the affected political subdivisions. The
commissioner of finance shall be responsible for coordinating
the fiscal note process, for assuring the accuracy and
completeness of the note, and for ensuring that fiscal notes are
prepared, delivered, and updated as provided in this section.
The fiscal note shall categorize mandates as program or
nonprogram mandates and shall include estimates of the levy
impacts of the mandates. To the extent that the bill would
impose new fiscal obligations on political subdivisions, the
note shall indicate the efforts made to reduce those
obligations, including consultations made with representatives
of the political subdivisions. Chairs of legislative committees
receiving bills on rereferrals from other legislative committees
may request that fiscal notes be amended to reflect amendments
made to the bills by prior committee action. Preparation of the
fiscal notes required in this section shall be consistent with
section 3.98. The commissioner of finance shall periodically
report to and consult with the legislative commission on
planning and fiscal policy on the issuance of the notes.
Sec. 11. [STATE AIDS TO LOCAL GOVERNMENTS.]
The commissioner of revenue shall submit to the governor,
the legislative commission on planning and fiscal policy, the
taxes committee of the house of representatives, and the taxes
and tax laws committee of the senate by January 15, 1991,
recommendations for amendments to the formulas by which state
government provides local government aid to cities. The
legislative commission on planning and fiscal policy shall
provide for a representative expenditure study of alternative
means to assess the relative service needs of cities, counties,
towns, and school districts by November 15, 1990. The results
of this study may be used by the commissioner of revenue in
preparing recommendations on state aids to local governments.
Sec. 12. [APPROPRIATION.]
There is appropriated to the legislative commission on
planning and fiscal policy the sum of $600,000 for the period
ending June 30, 1991, to be used to perform the duties imposed
under this article.
There is appropriated to the commissioner of finance the
sum of $100,000 for the period ending June 30, 1991 for the
purpose of implementing the provisions of section 10. The
approved complement of the department of finance is increased by
two positions.
Sec. 13. [REPEALER.]
Minnesota Statutes 1988, sections 3.981 and 3.983, as
amended, are repealed.
Sec. 14. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 2
PROPERTY TAX CLASSIFICATION
Section 1. Minnesota Statutes 1988, section 273.13,
subdivision 21a, is amended to read:
Subd. 21a. [TAX CAPACITY CLASS RATE.] In this section,
wherever the "tax capacity class rate" of a class of property is
specified without qualification as to whether it is the
property's "net tax capacity class rate" or its "gross tax
capacity class rate," the "net tax capacity class rate" and
"gross tax capacity class rate" of that property are the same as
its "tax capacity class rate."
Sec. 2. Minnesota Statutes 1988, section 273.13, is
amended by adding a subdivision to read:
Subd. 21b. [TAX CAPACITY.] (a) Gross tax capacity means
the product of the appropriate gross class rates in this section
and market values.
(b) Net tax capacity means the product of the appropriate
net class rates in this section and market values.
Sec. 3. Minnesota Statutes 1989 Supplement, section
273.13, subdivision 22, is amended to read:
Subd. 22. [Class 1.] (a) Except as provided in subdivision
23, real estate which is residential and used for homestead
purposes is class 1. The market value of class 1a property must
be determined based upon the value of the house, garage, and
land.
The first $68,000 of market value of class 1a property has
a net tax capacity class rate of one percent of its market value
and a gross tax capacity class rate of 2.17 percent of its
market value. The market value of class 1a property that
exceeds $68,000 but does not exceed $100,000 has a tax capacity
class rate of 2.5 two percent of its market value. The market
value of class 1a property that exceeds $100,000 has a tax
capacity class rate of 3.3 three percent of its market value.
(b) Class 1b property includes real estate or manufactured
homes used for the purposes of a homestead by
(1) any blind person, if the blind person is the owner
thereof or if the blind person and the blind person's spouse are
the sole owners thereof; or
(2) any person, hereinafter referred to as "veteran," who:
(i) served in the active military or naval service of the
United States; and
(ii) 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
(iii) 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 a homestead; or
(3) any person who:
(i) is permanently and totally disabled and
(ii) receives 90 percent or more of total income from
(A) aid from any state as a result of that disability; or
(B) supplemental security income for the disabled; or
(C) workers' compensation based on a finding of total and
permanent disability; or
(D) 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
(E) aid under the Federal Railroad Retirement Act of 1937,
United States Code Annotated, title 45, section 228b(a)5; or
(F) a pension from any local government retirement fund
located in the state of Minnesota as a result of that
disability; or
(iii) whose household income as defined in section 290A.03,
subdivision 5, is 150 percent or less of the federal poverty
level.
Property is classified and assessed pursuant to clause (1)
only if the commissioner of jobs and training certifies to the
assessor that the owner of the property satisfies the
requirements of this subdivision.
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 the person an income. The first $32,000 market
value of class 1b property has a net tax capacity class rate of
.4 percent of its market value and a gross tax capacity class
rate of .87 percent of its market value. The remaining market
value of class 1b property has a gross or net tax capacity class
rate using the rates for class 1 or class 2a property, whichever
is appropriate, of similar market value.
(c) Class 1c property is commercial use real property that
abuts a lakeshore line and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted
to commercial purposes for more than 200 225 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner, which includes a dwelling
occupied as a homestead by a shareholder of a corporation that
owns the resort or a partner in a partnership that owns the
resort, even if the title to the homestead is held by the
corporation or partnership. Class 1c property has a tax
capacity class rate of .9 .4 percent of the first $32,000 of
market value for taxes payable in 1990, .6 percent of the first
$32,000 of market value for taxes payable in 1991, .8 percent of
the first $32,000 of market value for taxes payable in 1992, and
one percent of market value in excess of $32,000 for taxes
payable in 1990, 1991, and 1992, and one percent of total market
value for taxes payable in 1993 and thereafter with the
following limitation: the area of the property must not exceed
100 feet of lakeshore footage for each cabin or campsite located
on the property up to a total of 800 feet and 500 feet in depth,
measured away from the lakeshore.
(d) For taxes levied in 1988, payable in 1989 only, the tax
to be paid on class 1a or class 1b property shall be reduced by
54 percent of the tax imposed on the first $68,000 of market
value. The amount of the reduction shall not exceed $725.
Sec. 4. Minnesota Statutes 1989 Supplement, section
273.13, subdivision 23, is amended to read:
Subd. 23. [Class 2.] (a) Class 2a property is agricultural
land including any improvements that is homesteaded. The market
value of the house and garage and immediately surrounding one
acre of land that does not exceed $65,000 has a net tax capacity
of .805 percent of market value and a gross tax capacity of 1.75
percent of market value. The excess market value over $65,000
has a tax capacity of 2.2 percent has the same class rates as
class 1a property under subdivision 22. If the market value of
the house, garage, and surrounding one acre of land is less
than $65,000 $100,000, the value of the remaining land including
improvements equal to the difference between $65,000 $100,000
and the market value of the house, garage, and surrounding one
acre of land has a net tax capacity class rate of 1.12 .4
percent of market value and a gross tax capacity of 1.75 percent
of market value for the first 320 acres of land and the
remaining value over 320 acres has a net tax capacity of 1.295
percent of market value and a gross tax capacity class rate of
1.75 percent of market value. The remaining value of class 2a
property over the $65,000 $100,000 of market value that does not
exceed 320 acres has a net tax capacity class rate of 1.44 1.3
percent of market value for taxes payable in 1990, 1.4 percent
of market value for taxes payable in 1991, and 1.5 percent of
market value for taxes payable in 1992 and thereafter, and a
gross tax capacity class rate of 2.25 percent of market value.
The remaining property over the $65,000 $100,000 market value in
excess of 320 acres has a net tax capacity class rate of 1.665
1.7 percent of market value for taxes payable in 1990, 1.6
percent of market value for taxes payable in 1991, and 1.5
percent of market value for taxes payable in 1992 and
thereafter, and a gross tax capacity of 2.25 percent of market
value.
(b) Class 2b property is (1) real estate, rural in
character and used exclusively for growing trees for timber,
lumber, and wood and wood products; and (2) real estate that is
nonhomestead agricultural land. Class 2b property has a net tax
capacity class rate of 1.665 1.7 percent of market value for
taxes payable in 1990, 1.6 percent of market value for taxes
payable in 1991, and 1.5 percent of market value for taxes
payable in 1992 and thereafter, and a gross tax capacity class
rate of 2.25 percent of market value.
(c) Agricultural land as used in this section means
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.
(d) Real estate of less than ten acres used principally for
raising poultry, livestock, fruit, vegetables or other
agricultural products, including the breeding of fish for sale
and consumption if the fish breeding occurs on land zoned for
agricultural use, shall be considered as agricultural land, if
it is not used primarily for residential purposes. The term
"agricultural products" as used in the preceding sentence means
any of the products identified in section 273.111, subdivision
6, clause (2). "Agricultural purposes" as used in this section
means the raising or cultivation of agricultural products.
(e) If a parcel used for agricultural purposes is also used
for commercial or industrial purposes, including but not limited
to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities
enumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used for
agricultural purposes as class 1b, 2a, or 2b, whichever is
appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural
products for first sale is considered an agricultural purpose.
A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail
sales must be classified as agricultural if it is primarily used
for the growing of horticultural or nursery products from seed,
cuttings, or roots and occasionally as a showroom for the retail
sale of those products. Use of a greenhouse or building only
for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
The assessor shall determine and list separately on the
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. 5. Minnesota Statutes 1988, section 273.13,
subdivision 24, is amended to read:
Subd. 24. [CLASS 3.] (a) Commercial, and industrial,
property and utility real and personal property, except class 5
property as identified in subdivision 31, clause (1), is class
3a. It has a tax capacity class rate of 3.3 percent of the
first $100,000 of market value for taxes payable in 1990, 3.2
percent for taxes payable in 1991, 3.1 percent for taxes payable
in 1992, and three percent for taxes payable in 1993 and
thereafter, and 5.25 5.06 percent of the market value over
$100,000. For taxes payable in 1991, the 5.25 percent rate
shall be 5.2 percent and for taxes payable in 1992 and
subsequent years the rate shall be 5.15 percent. In the case of
state-assessed commercial, industrial, and utility property
owned by one person or entity, only one parcel has a tax
capacity 3.3 percent reduced class rate on the first $100,000 of
market value. In the case of other commercial, industrial, and
utility property owned by one person or entity, only one parcel
in each county has a tax capacity of 3.3 percent reduced class
rate on the first $100,000 of market value.
(b) Employment property defined in section 469.166, during
the period provided in section 469.170, shall constitute class
3b and has a tax capacity class rate of 2.5 2.4 percent of the
first $50,000 of market value and 3.5 3.6 percent of the
remainder, except that for employment property located in a
border city enterprise zone designated pursuant to section
469.168, subdivision 4, paragraph (c), the tax capacity class
rate of the first $100,000 of market value is 3.3 percent and
the tax capacity class rate of the remainder is 4.8 percent
determined under paragraph (a), unless the governing body of the
city designated as an enterprise zone determines that a specific
parcel shall be assessed pursuant to the first clause of this
sentence. The governing body may provide for assessment under
the first clause of the preceding sentence only for property
which is located in an area which has been designated by the
governing body for the receipt of tax reductions authorized by
section 469.171, subdivision 1.
Sec. 6. Minnesota Statutes 1988, section 273.13,
subdivision 25, is amended to read:
Subd. 25. [CLASS 4.] (a) Class 4a is residential real
estate containing four or more units and used or held for use by
the owner or by the tenants or lessees of the owner as a
residence for rental periods of 30 days or more. Class 4a also
includes hospitals licensed under sections 144.50 to 144.56,
other than hospitals exempt under section 272.02, and contiguous
property used for hospital purposes, without regard to whether
the property has been platted or subdivided. Class 4a property
has a tax capacity class rate of 4.1 3.6 percent of market
value.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational, and a
structure having five or more stories that is constructed with
materials meeting the requirements for type I or II construction
as defined in the state building code, 90 percent or more of
which is used or is to be used as apartment housing for a period
of 40 years from the date of completion of original
construction, or the date of initial though partial use,
whichever is the earlier date;
(2) post-secondary student housing not to exceed one acre
of land which is owned by a nonprofit corporation organized
under chapter 317 and is used exclusively by a sorority or
fraternity organization for housing;
(3) manufactured homes not classified under any other
provision;
(4) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b), which has a tax capacity of 2.7 percent of market
value.
Class 4b property has a tax capacity class rate of 3.5 3.0
percent of market value, except as provided in clause (4).
(c) Class 4c property includes:
(1) a structure that is situated on real property that is
used for housing for the elderly or for low and moderate income
families as defined by Title II of the National Housing Act or
the Minnesota housing finance agency law of 1971 or rules
promulgated by the agency pursuant thereto and financed by a
direct federal loan or federally insured loan or a loan made by
the Minnesota housing finance agency pursuant to the provisions
of either of those acts and acts amendatory thereof. This
clause applies only to property of a nonprofit or limited
dividend entity. Property is classified as class 4c under this
clause for 15 years from the date of the completion of the
original construction or substantial rehabilitation, or for the
original term of the loan;
(2) a structure that is:
(i) situated upon real property that is used for housing
lower income families or elderly or handicapped persons, as
defined in section 8 of the United States Housing Act of 1937,
as amended; and
(ii) owned by an entity which has entered into a housing
assistance payments contract under section 8 which provides
assistance for 100 percent of the dwelling units in the
structure, other than dwelling units intended for management or
maintenance personnel. Property is classified as class 4c under
this clause for the term of the housing assistance payments
contract, including all renewals, or for the term of its
permanent financing, whichever is shorter; and
(3) a qualified low-income building that (i) receives a
low-income housing credit under section 42 of the Internal
Revenue Code of 1986, as amended through December 31, 1987 1988;
or (ii) meets the requirements of that section. Classification
pursuant to this clause is limited to buildings the construction
or rehabilitation of which began after May 1, 1988, and to a
term of 15 years.
For all properties described in clauses (1), (2), and (3)
and in paragraph (d), the market value determined by the
assessor must be based on the normal approach to value using
normal unrestricted rents. The land on which these structures
are situated has a tax capacity of 3.5 percent of market
value the class rate given in paragraph (b) if the structure
contains fewer than four units, and 4.1 percent of market value
the class rate given in paragraph (a) if the structure contains
four or more units.
(4) a parcel of land, not to exceed one acre, and its
improvements or a parcel of unimproved land, not to exceed one
acre, if it is owned by a neighborhood real estate trust and at
least 60 percent of the dwelling units, if any, on all land
owned by the trust are leased to or occupied by lower income
families or individuals. This clause does not apply to any
portion of the land or improvements used for nonresidential
purposes. For purposes of this clause, a lower income family is
a family with an income that does not exceed 65 percent of the
median family income for the area, and a lower income individual
is an individual whose income does not exceed 65 percent of the
median individual income for the area, as determined by the
United States Secretary of Housing and Urban Development. For
purposes of this clause, "neighborhood real estate trust" means
an entity which is certified by the governing body of the
municipality in which it is located to have the following
characteristics: (a) it is a nonprofit corporation organized
under chapter 317; (b) it has as its principal purpose providing
housing for lower income families in a specific geographic
community designated in its articles or bylaws; (c) it limits
membership with voting rights to residents of the designated
community; and (d) it has a board of directors consisting of at
least seven directors, 60 percent of whom are members with
voting rights and, to the extent feasible, 25 percent of whom
are elected by resident members of buildings owned by the trust;
and
(5) except as provided in subdivision 22, paragraph (c),
real property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real property
devoted to temporary and seasonal residential occupancy for
recreation purposes and not devoted to commercial purposes for
more than 200 225 days in the year preceding the year of
assessment. 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 the use. Class 4c also includes commercial
use real property used exclusively for recreational purposes in
conjunction with class 4c 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 200 225 days in the
year preceding the year of assessment and is located within two
miles of the class 4c property with which it is used. Class 4c
property classified in clauses (5) and (6) also includes the
remainder of class 1c resorts and has a tax capacity of 2.6
percent of market value, except that noncommercial seasonal
recreational property has a tax capacity of 2.3 percent of
market value; and
(6) real property up to a maximum of one acre of land owned
by a nonprofit community service oriented organization; provided
that the property is not used for a revenue-producing activity
for more than six days in the calendar year preceding the year
of assessment and the property is not used for residential
purposes on either a temporary or permanent basis. For purposes
of this clause, a "nonprofit community service oriented
organization" means any corporation, society, association,
foundation, or institution organized and operated exclusively
for charitable, religious, fraternal, civic, or educational
purposes, and which is exempt from federal income taxation
pursuant to section 501(c)(3), (10), or (19) of the Internal
Revenue Code of 1986, as amended through December 31, 1986 1988.
For purposes of this clause, "revenue-producing activities"
shall include but not be limited to property or that portion of
the property that is used as an on-sale intoxicating liquor or
nonintoxicating malt liquor establishment licensed under chapter
340A, a restaurant open to the public, bowling alley, a retail
store, gambling conducted by organizations licensed under
chapter 349, an insurance business, or office or other space
leased or rented to a lessee who conducts a for-profit
enterprise on the premises. Any portion of the property which
is used for revenue-producing activities for more than six days
in the calendar year preceding the year of assessment shall be
assessed as class 3a. The use of the property for social events
open exclusively to members and their guests for periods of less
than 24 hours, when an admission is not charged nor any revenues
are received by the organization shall not be considered a
revenue-producing activity; and
Class 4c property classified under clauses (1), (2), (3),
and (4) has a tax capacity class rate of 2.5 2.4 percent of
market value.
(d) Class 4d property includes any structure:
(i) situated on real property that is used for housing for
the elderly or for low and moderate income families as defined
by the farmers home administration;
(ii) located in a municipality of less than 10,000
population; and
(iii) financed by a direct loan or insured loan from the
farmers home administration. Property is classified under this
clause for 15 years from the date of the completion of the
original construction or for the original term of the loan.
The 1.5 percent and 2.5 percent tax capacity assignments
apply to the properties described class rates in paragraph (c),
clauses (1), (2), and (3) and this clause apply to the
properties described in them, only in proportion to occupancy of
the structure by elderly or handicapped persons or low and
moderate income families as defined in the applicable laws
unless construction of the structure had been commenced prior to
January 1, 1984; or the project had been approved by the
governing body of the municipality in which it is located prior
to June 30, 1983; or financing of the project had been approved
by a federal or state agency prior to June 30, 1983.
Classification under this clause is only available to property
of a nonprofit or limited dividend entity.
Class 4d property has a tax capacity class rate of 1.5 1.7
percent of market value for taxes payable in 1990, and two
percent of market value for taxes payable thereafter.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (2); paragraph (c), clauses (1), (2), (3), or
(4); or paragraph (d), is assessed at the class rate applicable
to it under Minnesota Statutes 1988, section 273.13, if it is
found to be a substandard building under section 273.1316.
Sec. 7. Minnesota Statutes 1988, section 273.13,
subdivision 31, is amended to read:
Subd. 31. [CLASS 5.] All property not included in any
other class is class 5 property.
(a) Class 5 property includes:
(1) 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, have a tax capacity of 4.6
percent of market value.;
(b) (2) unmined iron ore and low-grade iron-bearing
formations as defined in section 273.14 have a tax capacity of
5.25 percent of market value.;
(c) (3) vacant land has a tax capacity of 5.25 percent of
market value.; and
(d) (4) all other property not otherwise classified has a
tax capacity of 5.25 percent of market value.
Class 5 property has a class rate of 5.06 percent of market
value.
Sec. 8. Minnesota Statutes 1988, section 273.13, is
amended by adding a subdivision to read:
Subd. 32. [TARGET CLASS RATE.] All classes of property
with a class rate of 5.06 percent have a target class rate of
four percent. At the time of submission of the biennial budget
under section 16A.11, the governor shall recommend the effective
class rate for taxes payable in the following two calendar years
by designating a "phase-in percentage," equal to the proportion
of the effective class rate that will be based on the target
class rate of four percent, with the remaining proportion based
on the class rate of 5.06 percent. The governor shall identify
and include within the budget funding for the increased
expenditures for homestead and agricultural credit aid over the
amount of expenditures for homestead and agricultural credit aid
provided in this act that are estimated to result from the
recommendation. At that time, the governor may propose
alternative programs other than homestead and agricultural
credit aid to prevent other taxpayers' taxes from increasing as
a result of the governor's recommended increase in the phase-in
percentage. The effective net class rate is the sum of the
products of:
(1) the phase-in percentage adopted by the legislature
multiplied by four percent; and
(2) 100 percent minus the phase-in percentage multiplied by
5.06 percent.
The phase-in percentage in any year cannot be less than it
was in the prior year. The phase-in percentage for taxes
payable in 1991 is ten percent provided that the governor may
recommend an alternative phase-in percentage for taxes payable
in 1991.
Beginning in 1991, the commissioner of revenue shall
annually set the effective class rate to use for taxes payable
in the following year as provided in this subdivision and
announce it by June 1. For purposes of any aid, levy
limitation, debt limit, or salary limitation, and property tax
administration, net tax capacity must be computed with reference
to the effective class rate for the properties affected by this
subdivision.
Sec. 9. [273.1316] [CLASSIFICATION OF SUBSTANDARD
RESIDENTIAL RENTAL PROPERTY.]
Subdivision 1. [DENIAL OF RENTAL CLASSIFICATION.] A
building that is classified as residential rental property under
section 273.13, subdivision 25, and that is determined to be
substandard under this section is assessed as provided in
section 273.13, subdivision 25, paragraph (e).
Subd. 2. [DEFINITION.] "Substandard building" means a
building that:
(1) has been determined by a state, county, or city agency
that is charged by the governing body of the appropriate
political subdivision with the responsibility for enforcing
health, housing, building, fire prevention, or housing
maintenance codes:
(i) to materially endanger the health and safety of the
occupants; or
(ii) if unoccupied, to be a hazardous building within the
meaning of section 463.15, subdivision 3; or
(iii) to be substantially out of compliance with the basic
provisions of the housing and maintenance code of that county or
city; and
(2) has not been repaired or brought to a condition of
compliance within three months after the date of the violation
notice to the owner as provided in subdivision 3, or within the
time prescribed by the agency in the notice in accordance with
applicable state law or local ordinance, whichever period is
longer.
A building is not substandard under this subdivision if it
was rendered substandard solely by reason of a tornado, flood,
or other natural disaster.
Subd. 3. [VIOLATION NOTICE.] The initial notice of
violation by the agency to the owner must be written and must
contain:
(1) the details of the violation;
(2) the date by which repairs must be completed or
compliance with other requirements must be achieved;
(3) a general description of the tax consequences if the
violations are not corrected; and
(4) information on where and how an appeal may be filed.
The agency may extend the compliance date prescribed in the
violation notice, for good cause shown, or may determine that
good faith efforts at compliance are sufficient to prevent
designation as a substandard building.
Subd. 4. [NOTICE OF NONCOMPLIANCE.] When the period
specified in subdivision 3 has expired without compliance and
the building has been determined to be substandard as defined in
subdivision 2, the agency shall mail to the owner a notice of
noncompliance. The notice of noncompliance must be mailed by
certified mail, return receipt requested, to the owner of the
property at the owner's last known address. The notice must
contain:
(1) the details of the noncompliance;
(2) a statement that the local assessor has been notified
of the noncompliance and that the property will be reclassified
unless compliance is achieved within 30 days of the mailing of
the notice;
(3) a general description of the tax consequences resulting
from the denial of a residential rental property tax
classification; and
(4) information on where and how an appeal may be filed.
Subd. 5. [APPEALS TO BOARD.] Appeals shall be made to the
board created under this subdivision. Each county and city,
prior to issuance of a violation notice under subdivision 3,
must establish a board to hear appeals under this subdivision.
The board shall have five members appointed by the governing
body. A decision of the appeal board may be appealed to the
district court of the county in which the building is located,
concerning the violation and determination of material
endangerment, hazard, or lack of substantial compliance with the
basic provisions of the housing and maintenance code under
subdivision 2, and concerning a determination of noncompliance
under subdivision 4. An appeal must be made no later than 30
days after receipt of the notice of the action or determination
being appealed. If the board determines that the substandard
building has been brought to a condition of compliance, the
board shall require the agency to mail to the taxpayer a notice
of compliance, which shall be in the form and include the
information prescribed by the local assessor.
Subd. 6. [TIMING OF PROCESS.] If a notice of noncompliance
is mailed before July 1 of any year, and the property owner has
neither (1) successfully appealed the determination, nor (2)
brought the property into compliance by October 15 of that year,
the property will be assessed under section 273.13, subdivision
25, paragraph (e), for taxes levied in that year and all
subsequent years until the agency determines that the property
is no longer a substandard building, or the property owner
prevails on an appeal of the matter. If a notice of
noncompliance is mailed after June 30 of any year, the
disqualification would initially be effective for taxes levied
in the following year.
Subd. 7. [REFUND UPON APPEAL.] If the property owner
prevails on an appeal at any time after taxes have been paid
based on assessment of the property as provided in section
273.13, subdivision 25, paragraph (e), the agency shall notify
the property owner concerning the procedures for the filing for
a refund. The notice shall be in the form and include the
information prescribed by the local tax assessor. The taxpayer
may then file for a refund of the difference between the amount
of the tax paid and the tax that would have been payable if the
property had not been incorrectly assessed under this section,
and each governmental subdivision that levied the tax on the
property shall refund to the property owner its proportionate
share of the refund.
Subd. 8. [SPECIFICATION OF VIOLATIONS.] A notice of
noncompliance shall not be mailed by the agency to the taxpayer
until the state or the governing body of the appropriate
political subdivision has prescribed by statute or ordinance the
nature and types of violations of codes referred to in
subdivision 2, that would constitute substantial noncompliance
with the basic provisions of the code or material endangerment
to the health and safety of occupants of buildings, or that
would constitute a hazardous building within the meaning of
section 463.15, subdivision 3.
Sec. 10. [STUDY OF FARM CLASS RATES.]
The department of revenue shall study the effect of the
changes in class rates that apply to farm homesteads for taxes
payable in 1990, 1991, 1992, and thereafter that are enacted in
this act.
The commissioner of revenue shall report the findings of
the study by February 12, 1990, to the chairs of the house of
representatives committee on taxes, the senate committee on
taxes and tax laws, the house of representatives committee on
agriculture, and the senate committee on agriculture and rural
development.
Sec. 11. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor
shall substitute the term "class rate" for "tax capacity," "tax
capacity percentage," "tax capacity percent," or similar term or
phrase, wherever it refers only to the percentage of market
value applied to property under Minnesota Statutes, section
273.13, and the term "local tax rate" for "tax capacity rate,"
or similar term or phrase wherever it refers to the rate of tax
applied to the tax capacity of property within a local unit of
government or to the sum of the rates of tax of local
governments.
The revisor of statutes shall notify the commissioner of
revenue of the proposed text changes. The commissioner of
revenue shall assist the revisor in making the appropriate
changes.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 7 are effective for taxes payable in 1990 and
thereafter.
Sections 8 and 9 are effective for taxes levied in 1990 and
thereafter, payable in 1991 and thereafter.
Section 10 is effective the day following final enactment.
ARTICLE 3
PROPERTY TAX
Section 1. Minnesota Statutes 1988, section 270.12, is
amended by adding a subdivision to read:
Subd. 4. For purposes of equalization only, public utility
personal property shall be treated as a separate class of
property notwithstanding the fact that its tax capacity
percentage is the same as commercial-industrial property.
Sec. 2. Minnesota Statutes 1989 Supplement, 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 described in
section 273.13, subdivision 25, paragraph (c), clauses (1), (2),
and (3), or paragraph (d);
(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, paragraphs (c) and (d), 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; 273.124,
subdivision 7; 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) manufactured homes and sectional structures; 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., and real property
which is used primarily for abatement and control of air, water,
or land pollution as part of an agricultural operation or as
part of an electric generation system. For purposes of this
clause, personal property includes ponderous machinery and
equipment used in a business or production activity that at
common law is considered real property.
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, rules, 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. On determining that property qualifies for
exemption, the commissioner 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. Upon receipt of an
application for the exemption provided in this clause 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 the 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 1986, as amended through December 31,
1986, 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; and
(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.
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.
(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.
(17) Notwithstanding section 273.19, state lands that are
leased from the department of natural resources under section
92.46.
(18) Electric power distribution lines and their
attachments and appurtenances, that are used primarily for
supplying electricity to farmers at retail.
(19) Transitional housing facilities. "Transitional
housing facility" means a facility that meets the following
requirements. (i) It provides temporary housing to parents and
children who are receiving AFDC or parents of children who are
temporarily in foster care. (ii) It has the purpose of
reuniting families and enabling parents to obtain
self-sufficiency, advance their education, get job training, or
become employed in jobs that provide a living wage. (iii) It
provides support services such as child care, work readiness
training, and career development counseling; and a
self-sufficiency program with periodic monitoring of each
resident's progress in completing the program's goals. (iv) It
provides services to a resident of the facility for at least six
months but no longer than three years, except residents enrolled
in an educational or vocational institution or job training
program. These residents may receive services during the time
they are enrolled but in no event longer than four years. (v)
It is sponsored by an organization that has received a grant
under either section 256.7365 for the biennium ending June 30,
1989, or section 462A.07, subdivision 15, for the biennium
ending June 30, 1991, for the purposes of providing the services
in items (i) to (iv). (vi) It is sponsored by an organization
that is exempt from federal income tax under section 501(c)(3)
of the Internal Revenue Code of 1986, as amended through
December 31, 1987. This exemption applies notwithstanding the
fact that the sponsoring organization receives financing by a
direct federal loan or federally insured loan or a loan made by
the Minnesota housing finance agency under the provisions of
either Title II of the National Housing Act or the Minnesota
housing finance agency law of 1971 or rules promulgated by the
agency pursuant to it, and notwithstanding the fact that the
sponsoring organization receives funding under Section 8 of the
United States Housing Act of 1937, as amended.
Sec. 3. Minnesota Statutes 1988, section 272.02, is
amended by adding a subdivision to read:
Subd. 7. [POLLUTION ABATEMENT PROPERTY.] Property,
including real property, qualifies as exempt pollution abatement
property under subdivision 1, clause (9), if the following
conditions are satisfied.
(a)(1) The property is part of a refuse derived fuel
facility converted from a coal burning electric generation
facility and the property consists of:
(i) boiler modifications necessary to efficient handling
and burning of refuse derived fuel and transfer of the heat
produced by combustion of the fuel;
(ii) ash handling and storage systems, such as
vacuum-pneumatic equipment, conveyors, crushers, and storage
buildings to remove, convey, process, and temporarily store
bottom and fly ash from the burning of refuse derived fuel;
(iii) control systems, such as computers, to control the
operation of equipment described in clauses (i) to (iv) and
other pollution abatement equipment; and
(iv) equipment to monitor emissions into the air and
combustion efficiency; or
(2) the property is a solid waste resource recovery mass
burn facility.
(b) The facility was constructed and will be operated under
a contractual arrangement providing for payment, in whole or
part, of the property tax on the property by a political
subdivision of the state.
Sec. 4. Minnesota Statutes 1988, section 272.02, is
amended by adding a subdivision to read:
Subd. 8. [PROPERTY LEASED TO SCHOOL DISTRICTS.] Property
that is leased or rented to a school district is exempt from
taxation if it meets the following requirements:
(1) the lease must be for a period of at least 12
consecutive months;
(2) the terms of the lease must require the school district
to pay a nominal consideration for use of the building;
(3) the school district must use the property to provide
direct instruction in any grade from kindergarten through grade
12 or special education for handicapped children or adult basic
and continuing education as described in section 124.26,
including provision of administrative services directly related
to the educational program at that site; and
(4) the lease must provide that the school district has the
exclusive use of the property during the lease period.
If the property that is leased to the school district is
less than a complete parcel for assessment purposes, the value
of that portion of the parcel that is leased is exempt under
this subdivision.
Sec. 5. Minnesota Statutes 1988, section 272.025,
subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 3, a
taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivision 1, clauses (1) to (7),
except churches and houses of worship and property solely used
for educational purposes by academies, colleges, universities or
seminaries of learning and property owned by the state of
Minnesota or any political subdivision thereof, shall file a
statement of exemption with the assessor of the assessment
district in which the property is located, or, in the case of a
taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivision 1, clause (9), shall
file a statement of exemption with the commissioner or revenue,
on or before February 15 of each year for which the taxpayer
claims an exemption. In case of sickness, absence or other
disability or for good cause, the assessor may extend the time
for filing the statement of exemption for a period not to exceed
60 days. The commissioner of revenue shall prescribe the form
and contents of the statement of exemption.
Sec. 6. Minnesota Statutes 1989 Supplement, section
273.061, subdivision 1, is amended to read:
Subdivision 1. [OFFICE CREATED; APPOINTMENT,
QUALIFICATIONS.] Every county in this state shall have a county
assessor. The county assessor shall be appointed by the board
of county commissioners and shall be a resident of this state.
The assessor shall be selected and appointed because of
knowledge and training in the field of property taxation and
appointment shall be approved by the commissioner of revenue
before the same shall become effective. Upon receipt by the
county commissioners of the commissioner of revenue's refusal to
approve an appointment, the term of the appointee shall
terminate at the end of that day. Notwithstanding any law to
the contrary, a county assessor must have senior accreditation
from the state board of assessors by January 1, 1992, or within
two years of the assessor's first appointment under this
section, whichever is later.
Sec. 7. Minnesota Statutes 1988, section 273.111,
subdivision 4, is amended to read:
Subd. 4. The value of any real estate described in
subdivision 3 shall upon timely application by the owner, in the
manner provided in subdivision 8, be determined solely with
reference to its appropriate agricultural classification and
value notwithstanding sections 272.03, subdivision 8 and
273.11. In determining such the value for ad valorem tax
purposes, the assessor shall use sales data obtained from
agricultural lands located outside the seven metropolitan
counties but within the region used for computing the range of
values under section 273.11, subdivision 10. The sales shall
have similar soil types, number of degree days, and other
similar agricultural characteristics as contained in section
273.11, subdivision 10. Furthermore, the assessor shall not
consider any added values resulting from nonagricultural factors.
Sec. 8. Minnesota Statutes 1988, section 273.123,
subdivision 7, is amended to read:
Subd. 7. [LOCAL OPTION; OTHER PROPERTY.] The owner of
homestead property not qualifying for an adjustment in valuation
pursuant to subdivisions 1 to 5 or of nonhomestead property may
receive a reduction in the amount of taxes payable on the
property for the year in which the destruction occurs on the
property and in the following year if:
(a) 50 percent or more of the homestead dwelling or other
structure, as established by the county assessor, is
unintentionally or accidentally destroyed and the homestead is
uninhabitable or the other structure is not usable;
(b) the owner of the property makes written application to
the county assessor as soon as practical after the damage has
occurred; and
(c) the owner of the property makes written application to
the county board.
The county board may grant a reduction in the amount of
property tax which the owner must pay on the qualifying property
in the year of destruction and in the following year. Any
reduction in the amount of tax payable which is authorized by
county board action shall be calculated based upon the number of
months that the home is uninhabitable or the other structure is
unusable. The amount of net tax due from the taxpayer shall be
multiplied by a fraction, the numerator of which is the number
of months the dwelling was occupied by that taxpayer, or the
number of months the other structure was used by the taxpayer,
and the denominator of which is 12. For purposes of this
subdivision, if a structure is occupied or used for a fraction
of a month, it is considered a month. "Net tax" is defined as
the amount of tax after the subtraction of all of the state paid
property tax credits. If application is made following payment
of all property taxes due for the year of destruction, the
amount of the reduction granted by the county board shall be
refunded to the taxpayer by the county treasurer as soon as
practical.
Any reductions or refunds approved by the county board
shall not be subject to approval by the commissioner of revenue.
The county board may levy in the following year the amount
of tax dollars lost to the county government as a result of the
reductions granted pursuant to this subdivision. Any amount
levied for this purpose shall be exempt from the levy limit
provisions of sections 275.50 to 275.56.
Sec. 9. Laws 1987, chapter 268, article 6, section 54, as
amended by Laws 1988, chapter 719, article 6, section 20, is
amended to read:
Sec. 54. [EFFECTIVE DATE.]
Except where provided otherwise, sections 1 to 13, and 15
to 53 are effective for taxes levied in 1988, payable in 1989,
and thereafter. Section 14 is effective for taxes payable
in 1987 1986 and thereafter.
Sec. 10. Minnesota Statutes 1989 Supplement, section
273.124, subdivision 6, is amended to read:
Subd. 6. [LEASEHOLD COOPERATIVES.] When one or more
dwellings or one or more buildings which each contain several
dwelling units is owned by a nonprofit corporation subject to
the provisions of chapter 317 and qualifying under section
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as
amended through December 31, 1988, or a limited partnership
which corporation or partnership operates the property in
conjunction with a cooperative association, homestead treatment
may be claimed by the cooperative association on behalf of the
members of the cooperative for each dwelling unit occupied by a
member of the cooperative. The cooperative association must
provide the assessor with the social security numbers of those
members. To qualify for the treatment provided by this
subdivision, the following conditions must be met:
(a) the cooperative association must be organized under
chapter 308A and all voting members of the board of directors
must be resident tenants of the cooperative and must be elected
by the resident tenants of the cooperative;
(b) the cooperative association must have a lease for
occupancy of the property for a term of at least 20 years, which
permits the cooperative association, while not in default on the
lease, to participate materially in the management of the
property, including material participation in establishing
budgets, setting rent levels, and hiring and supervising a
management agent;
(c) to the extent permitted under state or federal law, the
cooperative association must have a right under a written
agreement with the owner to purchase the property if the owner
proposes to sell it; if the cooperative association does not
purchase the property it is offered for sale, the owner may not
subsequently sell the property to another purchaser at a price
lower than the price at which it was offered for sale to the
cooperative association unless the cooperative association
approves the sale;
(d) the cooperative must meet one of the following criteria
with respect to the income of its members: (1) a minimum of 75
percent of members must have incomes at or less than 90 80
percent of area median income, (2) a minimum of 40 percent of
members must have incomes at or less than 60 percent of area
median income, or (3) a minimum of 20 percent of members must
have incomes at or less than 50 percent of area median income.
For purposes of this clause, "member income" shall mean means
the income of a member existing at the time the member acquires
his or her cooperative membership, and "median income" shall
mean means the St. Paul-Minneapolis metropolitan area median
income as determined by the United States Department of Housing
and Urban Development; and
(e) if a limited partnership owns the property, it must
include as the managing general partner either the cooperative
association or a nonprofit organization operating under the
provisions of chapter 317. and qualifying under section
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as
amended through December 31, 1988, and the limited partnership
agreement must provide that the managing general partner have
sufficient powers so that it materially participates in the
management and control of the limited partnership;
(f) prior to becoming a member of a leasehold cooperative
described in this subdivision, a person must have received
notice that (1) describes leasehold cooperative property in
plain language, including but not limited to the effects of
classification under this subdivision on rents, property taxes
and tax credits or refunds, and operating expenses, and (2)
states that copies of the articles of incorporation and bylaws
of the cooperative association, the lease between the owner and
the cooperative association, a sample sublease between the
cooperative association and a tenant, and, if the owner is a
partnership, a copy of the limited partnership agreement, can be
obtained upon written request at no charge from the owner, and
the owner must send or deliver the materials within seven days
after receiving any request;
(g) if a dwelling unit of a building was occupied on the
60th day prior to the date on which the unit became leasehold
cooperative property described in this subdivision, then (1) the
notice described in paragraph (f) must have been sent by first
class mail to the occupant of the unit at least 60 days prior to
the date on which the unit became leasehold cooperative
property, and (2) prior to the mailing of the notice, copies of
the documents identified in the notice must have been filed with
the secretary of state; and
(h) the county attorney of the county in which the property
is located must certify to the assessor that the property meets
the requirements of this subdivision.
Homestead treatment must be afforded to units occupied by
members of the cooperative association and the units must be
assessed as provided in subdivision 3, provided that any unit
not so occupied shall be classified and assessed pursuant to the
appropriate class. No more than three acres of land may, for
assessment purposes, be included with each dwelling unit that
qualifies for homestead treatment under this subdivision.
Sec. 11. Minnesota Statutes 1989 Supplement, section
273.135, subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1989 only 1990 and
subsequent years, the amount of the reduction authorized by
subdivision 1 shall be:
(a) In the case of property located within the boundaries
of a municipality which meets the qualifications prescribed in
section 273.134, 66 percent of the net tax up to the taconite
breakpoint plus a percentage equal to the homestead credit
equivalency percentage of the net tax in excess of the taconite
breakpoint, provided that the reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to the product of 95 percent of the base year
effective tax rate multiplied by the ratio of the current year's
tax rate to the payable 1989 tax rate. In no case will the
reduction for each homestead resulting from this credit be less
than $10.
(b) In the case of property located within the boundaries
of a school district which qualifies as a tax relief area but
which is outside the boundaries of a municipality which meets
the qualifications prescribed in section 273.134, 57 percent of
the net tax up to the taconite breakpoint plus a percentage
equal to the homestead credit equivalency percentage of the net
tax in excess of the taconite breakpoint, provided that the
reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to the product
of 95 percent of the base year effective tax rate multiplied by
the ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10.
(c)(1) The maximum reduction of the net tax up to the
taconite breakpoint is $225.40 on property described in clause
(a) and $200.10 on property described in clause (b), for taxes
payable in 1985. These maximum amounts shall increase by $15
times the quantity one minus the homestead credit equivalency
percentage per year for taxes payable in 1986 and subsequent
years.
(2) The total maximum reduction of the net tax on property
described in clause (a) is $490 for taxes payable in 1985. The
total maximum reduction for the net tax on property described in
clause (b) is $435 for taxes payable in 1985. These maximum
amounts shall increase by $15 per year for taxes payable in 1986
and thereafter.
For the purposes of this subdivision, "net tax" means the
tax on the property after deduction of any credit under section
273.13, subdivision 22 or 23, "taconite breakpoint" means the
lowest possible net tax for a homestead qualifying for the
maximum reduction pursuant to section 273.13, subdivision 22,
rounded to the nearest whole dollar, "homestead credit
equivalency percentage" means a percentage equal to the
percentage reduction authorized in section 273.13, subdivision
22 one minus the ratio of the net tax capacity percentage to the
gross tax capacity percentage applicable to the first $68,000 of
the market value of residential homesteads, "effective tax rate"
means tax divided by the market value of the a property, and the
"base year effective tax rate" means the payable 1988 tax on the
a property with an identical market value to that of the
property receiving the credit in the current year after the
application of the credits payable under Minnesota Statutes
1988, section 273.13, subdivisions 22 and 23, and this
section for taxes payable in 1988, divided by the market value
of the property. A new parcel of property or a parcel with a
current year classification that is different from its base year
classification has the same base year effective tax rate as an
equivalent homesteaded parcel.
Sec. 12. Minnesota Statutes 1989 Supplement, section
273.1391, subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1989 only 1990 and
subsequent years, the amount of the reduction authorized by
subdivision 1 shall be:
(a) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a county
with a population of less than 100,000 in which taconite is
mined or quarried and wherein a school district is located which
does meet the qualifications of a tax relief area, and provided
that at least 90 percent of the area of the school district
which does not meet the qualifications of section 273.134 lies
within such county, 57 percent of the net tax up to the taconite
breakpoint plus a percentage equal to the homestead credit
equivalency percentage of the net tax in excess of the taconite
breakpoint on qualified property located in the school district
that does not meet the qualifications of section 273.134,
provided that the amount of said reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to the product of 95 percent of the base year
effective tax rate multiplied by the ratio of the current year's
tax rate to the payable 1989 tax rate. In no case will the
reduction for each homestead resulting from this credit be less
than $10. The reduction provided by this clause shall only be
applicable to property located within the boundaries of the
county described therein.
(b) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a school
district in a county containing a city of the first class and a
qualifying municipality, but not in a school district containing
a city of the first class or adjacent to a school district
containing a city of the first class unless the school district
so adjacent contains a qualifying municipality, 57 percent of
the net tax up to the taconite breakpoint plus a percentage
equal to the homestead credit equivalency percentage of the net
tax in excess of the taconite breakpoint, but not to exceed the
maximums specified in clause (c), and shall not exceed an amount
sufficient to reduce the effective tax rate on each parcel of
property to the product of 95 percent of the base year effective
tax rate multiplied by the ratio of the current year's tax rate
to the payable 1989 tax rate. In no case will the reduction for
each homestead resulting from this credit be less than $10.
(c)(1) The maximum reduction of the net tax up to the
taconite breakpoint is $200.10 for taxes payable in 1985. This
maximum amount shall increase by $15 multiplied by the quantity
one minus the homestead credit equivalency percentage per year
for taxes payable in 1986 and subsequent years.
(2) The total maximum reduction of the net tax is $435 for
taxes payable in 1985. This total maximum amount shall increase
by $15 per year for taxes payable in 1986 and thereafter.
For the purposes of this subdivision, "net tax" means the
tax on the property after deduction of any credit under section
273.13, subdivision 22 or 23, "taconite breakpoint" means the
lowest possible net tax for a homestead qualifying for the
maximum reduction pursuant to section 273.13, subdivision 22,
rounded to the nearest whole dollar, "homestead credit
equivalency percentage" means a percentage equal to the
percentage reduction authorized in section 273.13, subdivision
22 one minus the ratio of the net tax capacity percentage to the
gross tax capacity percentage applicable to the first $68,000 of
the market value of residential homesteads, and "effective tax
rate" means tax divided by the market value of the a property,
and the "base year effective tax rate" means the payable 1988
tax on the a property with an identical market value to that of
the property receiving the credit in the current year after
application of the credits payable under Minnesota Statutes
1988, section 273.13, subdivisions 22 and 23, and this
section for taxes payable in 1988, divided by the market value
of the property. A new parcel with a current year
classification that is different from its base year
classification has the same base year effective tax rate as an
equivalent homesteaded parcel.
Sec. 13. Minnesota Statutes 1988, section 273.1392, is
amended to read:
273.1392 [PAYMENT; AIDS TO SCHOOL DISTRICTS.]
(1) [AIDS TO SCHOOL DISTRICTS.] The amounts of disaster or
emergency reimbursement under section 273.123; attached
machinery aid under section 273.138; homestead credit under
section 273.13; agricultural credit under section 273.132; aids
and credits under section 273.1398; and metropolitan
agricultural preserve reduction under section 473H.10, shall be
certified to the department of education by the department of
revenue. The amounts so certified shall be paid according to
section 124.195, subdivisions 6 and 10.
(2) [AIDS TO COUNTIES.] The amounts of human services aid
increase determined under section 273.1398, subdivision 5b,
shall be deposited in a human services aid account hereby
created as an account within the state's general fund. The
amount within the account shall annually be transferred to the
department of human services by the department of revenue. The
amounts so transferred shall be paid according to article 16,
section 1.
Sec. 14. Minnesota Statutes 1989 Supplement, section
273.1398, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) In this section, the
terms defined in this subdivision have the meanings given them.
(b) "Unique taxing jurisdiction" means the geographic area
subject to the same set of tax capacity rates.
(c) "Gross tax capacity" means the product of the
appropriate percentages of market value listed as gross tax
capacities in section 273.13 class rates and equalized estimated
market values. "Total gross tax capacity" means the gross tax
capacities for all property within the unique taxing
jurisdiction. The total gross tax capacity used shall be
reduced by the sum of (1) the unique taxing jurisdiction's gross
tax capacity of commercial industrial property as defined in
section 473F.02, subdivision 3, multiplied by the ratio
determined pursuant to section 473F.08, subdivision 6, for the
municipality, as defined in section 473F.02, subdivision 8, in
which the unique taxing jurisdiction is located and, (2) the
gross tax capacity of the captured value of tax increment
financing districts as defined in section 469.177, subdivision
2, and (3) the gross tax capacity of transmission lines deducted
from a local government's total gross tax capacity under section
273.425. For purposes of determining the gross tax capacity of
property referred to in clauses (1) and (2) for disparity
reduction aid payable in 1989, the gross tax capacity before
equalization shall equal the property's 1987 assessed value
multiplied by 12 percent. Gross tax capacity cannot be less
than zero.
(d) "Net tax capacity" means the product of the appropriate
percentages of market value listed as net tax capacities in
section 273.13 net class rates for the year in which the aid is
payable, except that for class 3 utility real and personal
property the class rate applied shall be 5.38 percent and
equalized estimated market values for the assessment two years
prior to that in which aid is payable. "Total net tax capacity"
means the net tax capacities for all property within the unique
taxing jurisdiction. The total net tax capacity used shall be
reduced by the sum of (1) the unique taxing jurisdiction's net
tax capacity of commercial industrial property as defined in
section 473F.02, subdivision 3, multiplied by the ratio
determined pursuant to section 473F.08, subdivision 6, for the
municipality, as defined in section 473F.02, subdivision 8, in
which the unique taxing jurisdiction is located and, (2) the net
tax capacity of the captured value of tax increment financing
districts as defined in section 469.177, subdivision 2, and (3)
the net tax capacity of transmission lines deducted from a local
government's total net tax capacity under section 273.425. For
purposes of determining the net tax capacity of property
referred to in clauses (1) and (2), the net tax capacity before
equalization shall equal the property's 1987 assessed value be
multiplied by 12 percent the ratio of the highest class rate for
class 3a property for taxes payable in the year in which the aid
is payable to the highest class rate for class 3a property in
the prior year. Net tax capacity cannot be less than zero.
(e) "Equalized market values" are market values that have
been equalized by dividing the assessor's estimated market value
for the second year prior to that in which the aid is payable by
the assessment sales ratios determined by class in the
assessment sales ratio study conducted by the department of
revenue pursuant to section 124.2131 in the second year prior to
that in which the aid is payable. For computation of aids
payable in 1989 only, if the aggregate assessment sales ratio is
less than or equal to 92 percent, the assessment sales ratios by
class shall be adjusted proportionally so that the aggregate
ratio of the unequalized market values to the equalized market
values equals 92 percent; otherwise The equalized market values
shall equal the unequalized market values divided by the
assessment sales ratio.
(f) "Homestead effective Local tax rate" means the product
of (i) 46 percent; (ii) 2.17 percent; and (iii) the total tax
capacity rate for taxes payable in 1989 within a unique taxing
jurisdiction multiplied by the 1988 aggregate assessment sales
ratio. A sales ratio of .92 is used if the actual sales ratio
is less than .92 the quotient derived by dividing the gross
taxes levied within a unique taxing jurisdiction for taxes
payable in 1989 by the gross tax capacity of the unique taxing
jurisdiction for taxes payable in 1989. For computation of the
local tax rate for aid payable in 1991 and subsequent years,
gross taxes for taxes payable in 1989 exclude equalized levies
as defined in article 6, section 8. For purposes of computation
of the local tax rate only, gross taxes shall not be adjusted by
inflation or household growth.
(g) For purposes of calculating the homestead and
agricultural credit aid authorized pursuant to subdivision 2,
the "subtraction factor" is the product of (i) a unique taxing
jurisdiction's homestead effective local tax rate; (ii)
its total net tax capacity; and (iii) 103 .9767.
(h) For purposes of calculating and allocating homestead
and agricultural credit aid authorized pursuant to subdivision 2
and the disparity reduction aid authorized in subdivision 3,
"gross taxes levied on all properties" or "gross taxes" means
the total gross taxes levied on all properties except that
levied on the captured value of tax increment districts as
defined in section 469.177, subdivision 2, and that levied on
the portion of commercial industrial properties' assessed value
or gross tax capacity, as defined in section 473F.02,
subdivision 3, subject to the areawide tax as provided in
section 473F.08, subdivision 6, in a unique taxing jurisdiction
before reduction by any credits for taxes payable in the year
prior to that in which the aids are payable 1989. For purposes
of disparity reduction aid only, total gross taxes shall be
reduced by the taxes levied for any school district referendum
levies authorized pursuant to section 124A.03, subdivision 2,
and any school district debt levies authorized pursuant to
section 475.61 Gross taxes are before any reduction for
disparity reduction aid. Gross taxes levied cannot be less than
zero.
For homestead and agricultural credit aid payable in 1991
and subsequent years, "gross taxes" or "gross taxes levied on
all properties" shall mean gross taxes payable in 1989,
excluding taxes defined as "equalized levies" in article 6,
section 8, multiplied by the cost-of-living adjustment factor
and the household adjustment factor.
(i) "Income maintenance Human services aids" means:
(1) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(2) preadmission screening and alternative care grants
under section 256B.091, subdivision 8;
(3) general assistance, and work readiness under section
256D.03, subdivision 2;
(4) general assistance medical care under section 256D.03,
subdivision 6;
(5) aid to families with dependent children under section
256.82, subdivision 1, including emergency assistance under
section 256.871, subdivision 6; and funeral expense payments
under section 256.935, subdivision 1; and
(6) supplemental aid under section 256D.36, subdivision 1.
(1) Aid to Families with Dependent Children under sections
256.82, subdivision 1, and 256.935, subdivision 1;
(2) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,
subdivision 6;
(4) general assistance under section 256D.03, subdivision
2;
(5) work readiness under section 256D.03, subdivision 2;
(6) emergency assistance under section 256.871, subdivision
6;
(7) Minnesota supplemental aid under section 256D.36,
subdivision 1;
(8) preadmission screening and alternative care grants
under section 256B.091;
(9) work readiness services under section 256D.051;
(10) case management services under section 256.736,
subdivision 13;
(11) general assistance claims processing, medical
transportation and related costs; and
(12) medical assistance, medical transportation and related
costs.
(j) "Adjustment factor" means one plus the percentage
change in (1) the ratio of estimated market value of residential
homesteads to the estimated market value of all taxable property
within the city or township containing the unique taxing
jurisdiction based on the assessment one year prior to the year
in which the aid is payable when compared to the same ratio
based on the assessment two years prior to the year in which the
aid is payable. If the market value of farm homesteads exceeds
the market value of residential homesteads in the city or
township containing the unique taxing jurisdiction, "adjusted
factor" means one plus the percentage change in the ratio of the
estimated market value of farm homesteads to the estimated
market value of all taxable property within the city or township
containing the unique taxing jurisdiction based on the
assessment one year prior to the year in which the aid is
payable when compared to the same ratio based on the assessment
two years prior to the year in which the aid is payable. The
adjustment factor cannot be less than one. Estimates of market
value for the assessment one year prior to the year in which the
aid is paid will be made on the basis of the abstract submitted
pursuant to section 270.11. Discrepancies between the estimate
and actual market values will not result in increased or
decreased aid in the year in which the estimates are used to
compute aid.
(k) "Cost-of-living adjustment factor" means one plus the
percentage, if any, by which:
(1) the consumer price index for the calendar year
preceding that in which aid is payable, exceeds
(2) the consumer price index for calendar year 1989.
(l) "Consumer price index for any calendar year" means the
average of the consumer price index as of the close of the
12-month period ending on May 31 of such calendar year.
(m) "Consumer price index" means the last consumer price
index for all-urban consumers published by the department of
labor. For purposes of the preceding sentence, the revision of
the consumer price index which is most consistent with the
consumer price index for calendar year 1989 shall be used.
(n) "Household adjustment factor" means the number of
households for the most recent year preceding that in which the
aids are payable divided by the 1988 number of households. The
household adjustment factor cannot be less than one.
Sec. 15. Minnesota Statutes 1988, section 273.1398,
subdivision 2, is amended to read:
Subd. 2. [TRANSITION HOMESTEAD AND AGRICULTURAL CREDIT
AID.] (a) Transition Initial homestead and agricultural credit
aid for each unique taxing jurisdiction for taxes payable in
1990 equals the total gross taxes levied on all properties,
minus the unique taxing jurisdiction's subtraction
factor. Transition The commissioner of revenue may, in
computing the amount of the homestead and agricultural credit
aid paid in 1990, adjust the gross tax capacity, net tax
capacity, and gross taxes of a taxing jurisdiction for taxes
payable in 1989 to reflect auditor's errors in computing taxes
payable for 1989 in unique taxing jurisdictions within
independent school district Nos. 720 and 792. Homestead and
agricultural credit aid cannot be less than zero. The
transition aid so determined for school districts for purposes
of general education and transportation levies shall be
multiplied by the ratio of the adjusted gross tax capacity based
upon the 1988 adjusted gross tax capacity to the estimated 1987
adjusted gross tax capacity based upon the 1987 adjusted
assessed value. Each county assessor and the city assessors of
Minneapolis, Duluth, and St. Cloud shall furnish the
commissioner of revenue with the 1988 market values for taxes
payable in 1989 for any new classes of property established in
this article. The commissioner shall use those values, and
estimate values where needed, in developing the 1988 tax
capacity for each unique taxing jurisdiction under this section.
(b)(1) The transition homestead and agricultural credit aid
is allocated to each local government levying taxes in the
unique taxing jurisdiction in the proportion that the local
government's gross taxes bears to the total gross taxes levied
within the unique taxing jurisdiction.
(2) The 1990 homestead and agricultural credit aid so
determined for school districts for purposes of general
education levies pursuant to section 124A.23, subdivisions 2 and
2a, and transportation levies pursuant to section 275.125,
subdivisions 5 and 5c, shall be multiplied by the ratio of the
adjusted gross tax capacity based upon the 1988 adjusted gross
tax capacity to the estimated 1987 adjusted gross tax capacity
based upon the 1987 adjusted assessed value.
(3) If a local government's total tax capacity rate for all
funds for taxes payable in 1989 varies within the area in which
it exercises taxing authority, the local government's allocated
transition homestead and agricultural credit aid must be further
allocated between the part of its levy in respect to which the
tax capacity rate is constant throughout the area in which it
exercises taxing authority and the part of its levy in respect
to which the tax capacity rate varies throughout the area in
which it exercises taxing authority.
(c) In 1991 and subsequent years, a local government shall
receive transition aid equal to that it received in 1990 subject
to the requirement of the last sentence of subdivision 6.
(d) The difference between (1) the income maintenance aids
payable to a county and (2) the income maintenance aids that
would be payable to the county pursuant to the rates in effect
for calendar year 1989 shall be reduced by the sum of the amount
of transition aid a county receives under this subdivision for
all unique taxing jurisdictions located within its borders. The
reduction must not reduce the difference to less than zero. The
reduction shall be prorated among all payments of the increased
income maintenance aids so that each payment is reduced by an
equal percentage amount. The commissioner of revenue shall
certify each county's transition aid to the commissioner of
human services for purposes of this adjustment. The calendar
year 1990 homestead and agricultural credit aid shall be
adjusted by the adjustment factor.
(d) Payments under this subdivision to counties in 1990 and
subsequent years shall be reduced by the amount provided in
section 477A.012, subdivision 3, paragraph (d), and subdivision
4, paragraph (d).
(e) Payments under this subdivision to cities and towns
shall be annually reduced by the amount of the homestead and
agricultural credit aid adjustment, if any, determined for 1990
under section 477A.013, subdivision 6.
Sec. 16. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 2b. [FISCAL DISPARITY HOMESTEAD AND AGRICULTURAL
CREDIT AID.] For aids payable in 1991 and subsequent years, each
local government subject to the provisions of chapter 473F shall
receive fiscal disparity homestead and agricultural credit aid.
The aid shall be computed for each affected local government in
a manner consistent with that computed under subdivision 2
except that:
(1) "total gross taxes" shall mean the local government's
levy on its distribution value pursuant to section 473F.08 for
taxes payable in 1990, excluding a school district's equalized
levies as defined in article 6, section 8, and adjusted for
inflation and household growth subsequent to 1990;
(2) "total net tax capacity" shall mean its distribution
value for taxes payable in the year prior to that in which the
aid is payable times the ratio of the class rate applicable to
class 3a property in excess of $100,000 of estimated market
value for taxes payable in the year preceding that in which the
aid is payable to 5.25 percent; and
(3) "local tax rate" shall mean the rate used to determine
its areawide portion of the levy pursuant to section 473F.08,
subdivisions 3, paragraph (a), and 8a, for taxes payable in
1990, excluding that portion of the rate attributable to a
school district's equalized levies as defined in article 6
section 8.
Sec. 17. Minnesota Statutes 1988, section 273.1398,
subdivision 3, is amended to read:
Subd. 3. [DISPARITY REDUCTION AID.] (a) For taxes payable
in 1989, a disparity reduction aid shall be calculated for each
unique taxing jurisdiction. The aid is the greater of:
(1) the difference between (i) the total 1988 gross tax
payable on all taxable property within the unique taxing
jurisdiction, and (ii) the gross tax capacity of the unique
taxing jurisdiction; or
(2) 20 percent of the difference between (i) the 1988 gross
tax of the city or township, and (ii) 23 percent of the city's
or township's gross tax capacity.
In no case can the aid be less than $0. For taxes payable in
1990, and subsequent years, the amount of disparity aid
originally certified for each unique taxing jurisdiction for
taxes payable in the prior year shall be multiplied by the ratio
of (1) the jurisdiction's tax capacity using the class rates for
taxes payable in the year for which aid is being computed, to
(2) its tax capacity using the class rates for taxes payable in
the year prior to that for which aid is being computed, both
based upon market values for taxes payable in the year prior to
that for which aid is being computed.
(b) The disparity reduction aid is allocated to each local
government levying taxes in the unique taxing jurisdiction in
the proportion that the local government's payable gross taxes
bears to the total payable gross taxes levied within the unique
taxing jurisdiction.
(c) In 1990 and subsequent years, a local government shall
receive disparity reduction aid equal to that it received in
1989.
Sec. 18. Minnesota Statutes 1989 Supplement, section
273.1398, subdivision 5, is amended to read:
Subd. 5. [ADDITIONAL HOMESTEAD AND AGRICULTURAL CREDIT
GUARANTEE.] Beginning with taxes payable in 1990, each unique
taxing jurisdiction may receive additional homestead and
agricultural credit guarantee payments.
(1) Each year, the commissioner shall certify to the county
auditor determine the total education aids paid under chapters
124 and 124A, homestead and agricultural credit aid and
disparity reduction aid paid under section 273.1398, local
government aid to cities, counties, and towns paid under chapter
477A, and income maintenance aid paid to counties for each
taxing jurisdiction. The county auditor commissioner shall
apportion each local government's aids to the unique taxing
jurisdiction based upon the proportion that the unique taxing
jurisdiction's tax capacity bears to the total tax capacity of
the local government.
(2) Each year, the county auditor commissioner will compute
a gross tax capacity rate for each taxing jurisdiction equal to
its total levy divided by its gross tax capacity under Minnesota
Statutes 1988, section 273.13. For each unique taxing
jurisdiction, a total gross tax capacity rate will be
determined. This total gross tax capacity rate will be applied
against the gross tax capacity of each property that would have
been eligible for the homestead credit or the agricultural
credit for taxes payable in 1989. A An estimated credit amount
will be determined for each parcel all qualifying parcels based
upon the credit rate structure in effect for taxes payable in
1989. The resulting credit amounts will be summed for all
parcels in the unique taxing jurisdiction.
If the amount determined in clause (2) is greater than the
amount determined in clause (1), the difference will be
additional homestead and agricultural credit guarantee payments
for the unique taxing jurisdiction. The additional credit
amount shall proportionately reduce the tax capacity rates of
all local governments levying taxes within the unique taxing
jurisdiction in the following year. The county auditor
commissioner shall certify the amounts of additional credits
determined under this subdivision in a form prescribed by the
commissioner to the county auditor at the time provided in
subdivision 6.
Sec. 19. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 5a. [AID ADJUSTMENT FOR COUNTY HUMAN SERVICES
AID.] (a) There shall be transferred to the human services aid
account from the payment to a county under subdivision 2 an
amount representing a county's human services aid increase as
calculated in subdivision 5b, paragraphs (a) to (c). The amount
calculated for each county shall be deducted from the first
payment to the county under this section in 1991 and subsequent
years. If the deduction exceeds the amount of the first
payment, the balance shall be subtracted from the second
payment. The amount of the payments under subdivision 2 shall
not be less than zero as a result of this adjustment.
Sec. 20. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 5b. [STATE AID FOR COUNTY HUMAN SERVICES COSTS.] (a)
Human services aid increase for each county equals an amount
representing the county's costs for human services programs
cited in subdivision 1, paragraph (i). The amount of the aid
increase is calculated as provided in this section. The aid
increase shall be deposited in the human services account
created pursuant to section 273.1392.
(b) On July 15, 1990, each county shall certify to the
department of revenue the estimated difference between the
county's base amount costs as defined in section 256.025 for
human services programs cited in subdivision 1, paragraph (i),
for calendar year 1990 and human services program revenues from
all nonproperty tax sources excluding revenue from state and
federal payments for the programs listed in section 273.1398,
subdivision 1, paragraph (i), and revenue from incentive
programs pursuant to sections 256.019, 256.98, subdivision 7,
256D.06, subdivision 5, 256D.15, and 256D.54, subdivision 3,
used at the time the levy was certified in 1989. At that time
each county may revise its estimate for taxes payable in 1990
for purposes of this subdivision. The human services program
estimates provided pursuant to this clause shall only include
those costs and related revenues up to the extent the county
provides benefits within statutory mandated standards. This
amount shall be the county's human services aid amount under
this section.
(c) On July 15, 1991, each county shall certify to the
department of revenue the actual difference between the county's
human services program costs and nonproperty tax revenues as
provided in paragraph (b) for calendar year 1990. If the actual
difference is larger than the estimated difference as calculated
in paragraph (b), the aid amount for the county shall be
increased by that amount. If the actual difference is smaller
than the estimated difference as calculated in paragraph (b),
the aid amount to the county shall be reduced by that amount.
(d) On January 1, 1991, the department of finance shall
certify to the department of revenue the estimated amount of
county receipts deducted from county human services expenditures
pursuant to Minnesota Statutes 1988, section 287.12, in calendar
year 1990. This amount shall be added to the human services aid
increase amount under this section.
Sec. 21. Minnesota Statutes 1989 Supplement, section
273.1398, subdivision 6, is amended to read:
Subd. 6. [PAYMENT.] The commissioner shall certify the
aids provided in subdivisions 2 and, 2a, 3, and 5 before
September 30 December 1, 1989, and October 1 thereafter of the
year preceding the distribution year to the county auditor of
the affected local government and pay them and the credit
reimbursements to local governments other than school districts
at the times provided in section 477A.015 for payment of local
government aid to taxing jurisdictions. Aids and credit
reimbursements to school districts must be certified to the
commissioner of education and paid under section 273.1392.
Except for education districts and secondary cooperatives that
receive revenue according to section 124.2721 or 124.575,
payment shall not be made to any taxing jurisdiction that has
ceased to levy a property tax nor shall homestead and
agricultural credit aid be payable on the part of a levy to
which homestead and agricultural credit aid was separately
allocated under subdivision 2, paragraph (b), clause (2), which
is no longer levied.
Sec. 22. [274.20] [MANUFACTURED HOME HOMESTEAD AND
AGRICULTURAL CREDIT AID.]
Subdivision 1. [DEFINITIONS.] (a) The term "total gross
taxes" means the total gross taxes levied on manufactured homes
assessed pursuant to section 274.19 in a unique taxing
jurisdiction as defined in section 273.1398 before reduction by
any credits for taxes in 1989. For aid payable in 1991 and
subsequent years total gross taxes for 1989 shall be multiplied
by the cost of living adjustment factor as defined in section
273.1398.
(b) "Local tax rate" means the total tax capacity tax rate
for taxes payable in 1989 within a unique taxing jurisdiction.
(c) "Total net tax capacity" means the net tax capacities
as defined in section 273.1398 of all manufactured homes
assessed pursuant to section 274.19 except the market value used
shall be for the assessment one year prior to that in which aid
is payable.
(d) "Subtraction factor" means the product of (i) a unique
taxing jurisdictions local tax rate; (ii) its total net tax
capacity; and (iii) 0.9767.
Subd. 2. [MANUFACTURED HOME HOMESTEAD AND AGRICULTURAL
CREDIT AID.] Manufactured home homestead and agricultural credit
aid for each unique taxing jurisdiction equals total gross taxes
minus the unique taxing jurisdiction's subtraction factor. The
aid shall be allocated to each local government levying taxes in
the unique taxing jurisdiction in the proportion that the local
government's gross taxes bear to the total gross taxes.
Subd. 3. [AID CALCULATION.] The commissioner of revenue
shall make the calculation required in subdivision 2 and
annually pay manufactured home homestead and agricultural credit
aid to the local governments at the times provided in section
477A.015 for local governments other than school districts. Aid
payments to the school districts must be certified to the
commissioner of education and paid under section 273.1392.
Subd. 4. [APPROPRIATION.] There is annually appropriated
from the general fund to the commissioner of revenue a sum
sufficient to pay the aids provided under this section.
Sec. 23. Minnesota Statutes 1989 Supplement, section
275.07, subdivision 3, is amended to read:
Subd. 3. The county auditor shall adjust each local
government's levy certified under subdivision 1 by the amount of
homestead and agricultural credit aid certified by section
273.1398, subdivision 2, reduced by the amount under section
273.1398, subdivision 5a. If a local government's homestead and
agricultural credit aid was further allocated between portions
of its levy pursuant to section 273.1398, subdivision 2,
paragraph (b)(2), the levy or fund to which the homestead and
agricultural credit aid was allocated is the levy or fund which
must be adjusted.
Sec. 24. Minnesota Statutes 1989 Supplement, section
287.12, is amended to read:
287.12 [TAXES, HOW APPORTIONED.]
All taxes paid to the county treasurer under the provisions
of sections 287.01 to 287.12 shall be credited to the county
revenue fund apportioned, 97 percent to the general fund of the
state, and three percent to the county revenue fund.
On or before the tenth day of each month the county
treasurer shall determine the receipts from the mortgage
registration tax during the preceding month. The treasurer
shall report to the county welfare agency on or before the tenth
day of each month 97 percent of the receipts attributable to the
statutory rate in section 287.05. That amount, in addition to
97 percent of the amount determined under section 287.29, must
be shown as a deduction from the report filed with the
department of human services as required by section 256.82. The
net receipts from the preceding month must be credited to the
county welfare fund by the tenth day of each month. If a
county's mortgage and deed tax receipts exceed the state share
of AFDC grants for the county, the excess amount must be offset
against state payments to the county for the state share of the
income maintenance programs. Any excess remaining after
offsetting all state payments for income maintenance programs
must be paid to the commissioner of human services and credited
to the AFDC account and pay to the commissioner of revenue for
deposit in the state treasury and credit to the general fund the
state's portion of the receipts from the mortgage registration
tax during the preceding month. The county treasurer shall
provide any related reports requested by the commissioner of
revenue.
Sec. 25. Minnesota Statutes 1988, section 287.29, is
amended to read:
287.29 [PAYMENT OF RECEIPTS TO COUNTY STATE GENERAL
FUND; REPORT; RECORD REPORTS.]
Subdivision 1. On or before the tenth day of each month,
the county treasurer shall determine and report pay to the
county welfare agency the receipts attributable to the tax
imposed during the preceding month. The report must accompany
the report required in section 287.12. The receipts shall be
deposited in the county treasury and credited to the county
revenue fund. The net receipts from the preceding month must be
credited to the county welfare fund by the tenth day of each
month commissioner of revenue for deposit in the state treasury
and credit to the general fund the receipts from the sale of
documentary stamps during the preceding month. The county
treasurer shall provide any related reports requested by the
commissioner of revenue.
Sec. 26. [290A.045] [COMMERCIAL/INDUSTRIAL EQUALIZATION
REFUND.]
Subdivision 1. [DEFINITIONS.] (a) "Eligible property"
means that portion of property classified as commercial or
industrial property under section 273.13, subdivision 24,
paragraph (a), which is subject to the highest class rate within
class 3a.
(b) "Eligible property market value" means the assessor's
estimated market value of eligible property.
(c) "Eligible tax" means the net property tax payable on
eligible property market value that is in excess of the tax
capacity of the eligible property market value.
(d) "Net property tax payable" means the property tax
payable on eligible property value, less
(1) special assessments, penalties, and interest payable on
the property; and
(2) any state-paid credits other than the refund provided
under this section. The taxes are considered payable in the
year prescribed by law for payment of the taxes.
Subd. 2. [NOTIFICATION BY COUNTY AUDITOR.] For taxes
payable in 1990 and 1991 only, the county auditor shall notify
the owners of commercial and industrial properties with eligible
tax amounts that they are eligible for a state-paid refund.
This notification shall be provided to taxpayers either along
with the tax statements mailed under section 276.04, subdivision
3, or in a separate mailing to the taxpayer during the same time
period. The notification shall include the amount of the
eligible tax, eligible property market value, and instructions
for submitting a claim for the commercial/industrial
equalization refund under this section.
Subd. 3. [FILING OF CLAIM.] A claim for a
commercial/industrial equalization refund under this section
must be filed with the commissioner of revenue on or before June
1 of the year the property taxes are payable. Claims under this
section must be made in the form and contain the information
required by the commissioner of revenue. Eligible property
consisting of contiguous parcels owned by the same person or
entity are considered a single parcel for the purposes of this
section and must be filed on a single claim.
Subd. 4. [CALCULATION OF REFUND AMOUNT.] The refund amount
under this section for each eligible property is equal to 75
percent of the eligible tax up to a maximum of $4,000 for each
claim. If the amount appropriated under subdivision 7 is
insufficient to pay the refund amounts calculated under this
subdivision, the commissioner of revenue shall proportionately
reduce the refund amount for each eligible property so that the
sum of the refund amounts paid under this section equals the
amount appropriated in subdivision 7.
Subd. 5. [PAYMENT OF CLAIM.] Allowable claims filed under
this section shall be paid by the commissioner prior to October
1. If the initial refund amounts were proportionately reduced
under subdivision 4, the commissioner shall attach an
explanation of the calculation of the refund amount.
Subd. 6. [ADMINISTRATION.] Sections 290A.11, 290A.111,
290A.112, 290A.12, 290A.14, 290A.15, 290A.17, 290A.18, and
290A.20, including the penalties imposed on the claimants and
tax return preparers in those sections, apply to claims allowed
under this section. The commissioner of revenue has the powers
granted in those sections to administer the refund under this
section.
Subd. 7. [APPROPRIATION.] $10,000,000 is appropriated for
fiscal year 1991 from the general fund to the commissioner of
revenue to pay the refund under this section for taxes payable
in 1990. $10,000,000 is appropriated for fiscal year 1992 from
the general fund to the commissioner of revenue to pay the
refund under this section for taxes payable in 1991.
Sec. 27. Minnesota Statutes 1988, section 298.28,
subdivision 6, is amended to read:
Subd. 6. [PROPERTY TAX RELIEF.] (a) Twelve Fifteen cents
per taxable ton, less any amount required to be distributed
under paragraphs (b) and (c), must be allocated to St. Louis
county acting as the counties' fiscal agent, 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, .1875
cent per taxable ton of the tax imposed and collected from such
taxpayer shall be paid to the county.
(c) 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 school district other than a school
district in which the mining and concentrating processes are
conducted, .5625 cent per taxable ton of the tax imposed and
collected from the taxpayer shall be paid to the school district.
Sec. 28. Minnesota Statutes 1988, section 473F.08, is
amended by adding a subdivision to read:
Subd. 8a. [FISCAL DISPARITIES ADJUSTMENT.] In any year in
which the highest class rate for class 3a property changes from
the rate in the previous year, the following adjustments shall
be made to the procedures described in sections 473F.06 to
473F.08.
(1) An initial contribution tax capacity shall be
determined for each municipality based on the previous year's
class rates.
(2) Each jurisdiction's distribution tax capacity shall be
determined based upon the areawide tax base determined by
summing the tax capacities computed under clause (1) for all
municipalities and apportioning the resulting sum pursuant to
section 473F.07, subdivision 5.
(3) Each jurisdiction's distribution levy shall be
determined by applying the procedures described in subdivision
3, clause (a), to the distribution tax capacity determined
pursuant to clause (2).
(4) Each municipality's final contribution tax capacity
shall be determined equal to its initial contribution tax
capacity multiplied by the ratio of the new highest class rate
for class 3a property to the previous year's highest class rate
for class 3a property.
(5) The areawide tax capacity rate shall be determined by
dividing the sum of the amounts determined in clause (3) by the
sum of the values determined in clause (4).
(6) The final contribution tax capacity determined in
clause (4) shall also be used to determined the portion of each
commercial/industrial property's tax capacity subject to the
areawide tax capacity rate pursuant to subdivision 6.
Sec. 29. [NOTIFICATION OF ADMINISTRATIVE DIRECTIVES.]
The commissioner of revenue shall notify the chairs of the
senate committee on taxes and tax laws and the house committee
on taxes of administrative directives or interpretations of the
provisions of this article. The notice must be given at least
five days before a directive or interpretation is released to
the public or provided to a local government to allow time for
the chairs to provide advice or to comment on the commissioner's
directive or interpretation of the law. An administrative
directive or interpretation includes an explanation of a
provision, a clarification of its application to a particular
circumstance, a directive on how to apply or administer a
provision, and other similar communications that are intended to
direct or guide local government officials in administering the
law. This section applies only to written materials that are
either released to the public or mailed, sent, or provided to a
local government or a local government official.
Sec. 30. [6.76] [LOCAL GOVERNMENTAL EXPENDITURES FOR LOBBYISTS.]
On or before January 31, 1990, and each year thereafter,
all counties, cities, school districts, metropolitan agencies,
regional railroad authorities, and the regional transit board
shall report to the state auditor, on forms prescribed by the
auditor, their estimated expenditures paid for the previous
calendar year to a lobbyist as defined in section 10A.01,
subdivision 11, and to any staff person not registered as a
lobbyist but who spends over 25 percent of his or her time
during the legislative session on legislative matters.
Sec. 31. [PROPERTY TAX REFUNDS FOR TENANTS OF DISQUALIFIED
LEASEHOLD COOPERATIVES.]
Property tax refunds payable under Minnesota Statutes,
chapter 290A, for rent paid in 1988 and property taxes payable
in 1989 to residents of a leasehold cooperative that is
disqualified from classification as a leasehold cooperative
under Minnesota Statutes, section 273.124, subdivision 6,
effective for assessment year 1989 shall not be reduced by the
commissioner of revenue because of the disqualification.
Sec. 32. [ASSESSMENT OF MANUFACTURED HOME PARKS.]
Subdivision 1. [NO VALUATION INCREASE.] (a)
Notwithstanding Minnesota Statutes, section 273.11, or any other
law to the contrary, the estimated market value of manufactured
home parks as defined in section 327.14, subdivision 3, and
assessed under section 273.13, subdivision 25, paragraph (a) or
(b), for taxes levied in 1989, may not exceed its estimated
market value for taxes levied in 1988.
(b) This subdivision does not apply to increases in value
attributable to improvements made to the real estate since the
January 2, 1988, assessment. It does not apply to property
becoming subject to taxation since the January 2, 1988,
assessment. The limitation in this subdivision applies to any
increase in valuation imposed by the local boards of review
under section 274.01, the county boards of equalization under
section 274.13, and the state board of equalization and the
commissioner of revenue under sections 270.11, 270.12, and
270.16.
Subd. 2. [NOTICE TO PROPERTY OWNER.] If an assessor has
increased the estimated market value of property over that
allowed in subdivision 1, the assessor must reduce the estimated
market value to the amount allowed under subdivision 1. On or
before November 1, 1989, the assessor must mail notices to all
owners of property subject to subdivision 1. The notice must
state that any increase in the estimated market value of
manufactured home park land for taxes levied in 1989 over that
for taxes levied in 1988 has been limited by this act.
Subd. 3. [STUDY.] The department of revenue shall study
the valuation and assessment of manufactured home parks. It
shall compile information on valuation and assessment practices,
evaluate alternative valuation and assessment methods, and
report its findings, along with recommendations and proposals
for legislation in the 1990 session, to the chair of the house
of representatives tax committee and to the chair of the senate
committee on taxes and tax laws. The report must be submitted
by February 12, 1990.
Sec. 33. [273.1398] [Subd. 5c.] [APPROPRIATION.]
Pursuant to section 273.1398, subdivision 5b, paragraph
(d), there shall be appropriated on January 1 and July 1, 1991,
and each year thereafter, from the general fund to the county
human services aid account under Minnesota Statutes, section
273.1392, subdivision 2, an amount equal to the amount certified
by the department of human services to the department of revenue
under Minnesota Statutes, section 273.1398, subdivision 5b,
clause (d). Each of the two appropriations shall equal one-half
of the certified amount.
Sec. 34. [REPEALER.]
Minnesota Statutes 1988, sections 273.135, subdivision 2a;
and 273.1391, subdivision 2a, are repealed.
Sec. 35. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment
and is intended to confirm and clarify the original intent of
the legislature in the taxation and equalization of
state-assessed public utility property.
Sections 2 and 7 are effective for taxes payable in 1991
and thereafter.
Sections 3, 5, 8, 11, 12, 23, 26, and 28 are effective for
taxes payable in 1990 and thereafter.
Section 4 is effective January 1, 1989.
Sections 6, 9, 21, 29 to 32, and 34 are effective the day
following final enactment.
Section 10 is effective for taxes levied in 1989, payable
in 1990 and thereafter, provided that cooperatives that
qualified under Minnesota Statutes, section 273.124, subdivision
6, on January 2, 1989, shall meet the board membership
requirements of paragraph (a) by December 1, 1989, and shall
meet the requirements of section 501(c)(3) or 501(c)(4) status
under the Internal Revenue Code in the first paragraph and in
paragraph (e) by January 1, 1990, and that the notice and filing
requirements of paragraphs (f) and (g) shall apply only to
leasehold cooperatives created later than 60 days after the date
of enactment of this act.
Sections 13, 19, and 20 are effective January 1, 1991.
Section 14, paragraph (i), clauses (1) to (12), are
effective for aids paid in 1991 and thereafter. The rest of
section 14 and sections 15, 17, 18, and 22 are effective for
aids paid in 1990 and thereafter, except as otherwise provided
in those sections.
Section 16 is effective for aids payable in 1991 and
thereafter.
Sections 24 and 25 are effective for mortgage registration
and deed taxes collected after November 30, 1990.
Section 27 is effective for taconite produced in 1989,
proceeds distributed in 1990, and thereafter.
Section 33 is effective July 1, 1991.
ARTICLE 4
LOCAL GOVERNMENT AIDS
Section 1. Minnesota Statutes 1988, section 275.07,
subdivision 1, is amended to read:
Subdivision 1. The taxes voted by cities, towns, counties,
school districts, and special districts shall be certified by
the proper authorities to the county auditor on or before
October 25 in each year. The taxes certified shall not be
adjusted by the aid received under section 273.1398,
subdivisions 2 and 3 and section 477A.013, subdivision 5. If a
city, town, county, school district, or special district fails
to certify its levy by that date, its levy shall be the amount
levied by it for the preceding year. If the local unit notifies
the commissioner of revenue before October 25 of its inability
to certify its levy by that date, and the commissioner is
satisfied that the delay is unavoidable and is not due to the
negligence of the local unit's officials or staff, the
commissioner shall extend the time within which the local unit
shall certify its levy up to 15 calendar days beyond the date of
request for extension.
Sec. 2. Minnesota Statutes 1989 Supplement, section
275.07, subdivision 3, is amended to read:
Subd. 3. The county auditor shall adjust each local
government's levy certified under subdivision 1 by the amount of
homestead and agricultural credit aid certified by section
273.1398, subdivision 2 and equalization aid certified by
section 477A.013, subdivision 5. If a local government's
homestead and agricultural credit aid was further allocated
between portions of its levy pursuant to section 273.1398,
subdivision 2, paragraph (b)(2), the levy or fund to which the
homestead and agricultural credit aid was allocated is the levy
or fund which must be adjusted.
Sec. 3. Minnesota Statutes 1988, section 477A.011,
subdivision 1a, is amended to read:
Subd. 1a. [CITY.] City means a statutory or home rule
charter city. City also means a town having a population of
5,000 or more for purposes of the aid payable under section
477A.013, subdivision 3. Towns and cities of the first class
are not eligible to be treated as cities for purposes of aid
payable under section 477A.013, subdivision 5.
Sec. 4. Minnesota Statutes 1988, section 477A.011, is
amended by adding a subdivision to read:
Subd. 1b. [TOWN.] "Town" means a township with a
population of less than 5,000.
Sec. 5. Minnesota Statutes 1988, section 477A.011,
subdivision 20, is amended to read:
Subd. 20. [CITY TAX CAPACITY.] "City tax capacity" means
(1) 23 percent of the net tax capacity computed using the net
tax capacity rates listed in Minnesota Statutes 1988, section
273.13, for aids payable in 1990 and the net tax capacity rates
listed in Minnesota Statutes 1989, section 273.13, for aids
payable in 1991 and subsequent years for all taxable property
within the city based on the assessment two years prior to that
for which aids are being calculated, plus (2) a city's levy on
the fiscal disparities distribution under section 473F.08,
subdivision 3, paragraph (a), for taxes payable in the year
prior to that for which aids are being calculated. The market
value utilized in computing net tax capacity shall be reduced by
the sum of (1) a city's market value of commercial industrial
property as defined in section 473F.02, subdivision 3,
multiplied by the ratio determined pursuant to section 473F.08,
subdivision 2, paragraph (a), and (2) the market value of the
captured value of tax increment financing districts as defined
in section 469.177, subdivision 2, and (3) the market value of
transmission lines deducted from a city's total net tax capacity
under section 273.425. The net tax capacity will be computed
using equalized market values.
Sec. 6. Minnesota Statutes 1988, section 477A.011, is
amended by adding a subdivision to read:
Subd. 25. [NET TAX CAPACITY.] "Net tax capacity" means for
aids payable under section 477A.013, subdivision 5, (1) the net
tax capacity of a city computed using the net tax capacity rates
in Minnesota Statutes 1988, section 273.13, and based on 1988
estimated market values plus (2) a city's fiscal disparities
distribution tax capacity under section 473F.08, subdivision 2,
paragraph (b), for taxes payable in 1989. The market value
utilized in computing net tax capacity shall be reduced by the
sum of (1) a city's market value of commercial industrial
property as defined in section 473F.02, subdivision 3,
multiplied by the ratio determined pursuant to section 473F.08,
subdivision 2, paragraph (a), (2) the market value of the
captured value of tax increment financing districts as defined
in section 469.177, subdivision 2, and (3) the market value of
transmission lines deducted from a city's total net tax capacity
under section 273.425. The net tax capacity will be computed
using equalized market values.
Sec. 7. Minnesota Statutes 1988, section 477A.012, is
amended by adding a subdivision to read:
Subd. 3. [AID OFFSET FOR COURT COSTS.] (a) There shall be
deducted from the payment to a county under this section an
amount representing the cost to the state for assumption of the
cost of district court administration and operation of the trial
court information system in the county and, in the case of
Hennepin and Ramsey counties, of public defense services in
juvenile and misdemeanor cases in the county. The amount of the
deduction shall be computed as provided in this subdivision.
(b) By October 15, 1989, the board of public defense shall
determine and certify to the department of revenue the cost of
the state-financed public defense services in juvenile and
misdemeanor cases for Hennepin and Ramsey counties during the
fiscal year beginning the following July 1. By October 15,
1989, the supreme court shall determine and certify to the
department of revenue for each county, except counties located
in the eighth judicial district, the pro rata estimated share
for each county of district court administration and trial court
information system costs during the fiscal year beginning on the
following July 1.
(c) One-half of the amount computed under paragraph (b) for
each county shall be deducted from each payment to the county
under section 477A.015 in 1990 and each subsequent year.
(d) If the amount computed under paragraph (b) plus, if
applicable, the amount deducted under paragraph (e), exceeds the
amount payable to a county under subdivision 1, the excess shall
be deducted from the aid payable to the county under section
273.1398, subdivision 2.
(e) By July 15, 1990, the board of public defense and the
supreme court shall determine and certify to the department of
revenue the final actual budgeted amounts for the activities
described in paragraph (b). If the amount certified under
paragraph (b) is greater than the amount certified under this
paragraph, the excess shall be deducted from the aid payable to
the county in 1991 and each subsequent year under this section.
If the amount certified under paragraph (b) is less than the
amount certified under this paragraph, the difference shall be
added to the aid payable to the county in 1991 and each
subsequent year under this section.
Sec. 8. Minnesota Statutes 1988, section 477A.012, is
amended by adding a subdivision to read:
Subd. 4. [AID OFFSET FOR 1992 COURT COSTS.] (a) There
shall be deducted from the payment to a county under this
section an amount representing the cost to the state for
assumption of the cost of court reporters, judicial officers,
and district court referees and the expenses of law clerks and
court reporters as authorized in Laws 1989, chapter 335, article
3, sections 17 and 26. The amount of the deduction is computed
as provided in this subdivision.
(b) By June 30, 1991, the supreme court shall determine and
certify to the department of revenue for each county, except
counties located in the eighth judicial district, the pro rata
share for each county of court reporter, judicial officer, and
district court referee costs and law clerk and court reporter
expenses during the calendar year beginning on January 1, 1992.
(c) One-half of the amount computed under paragraph (b) for
each county shall be deducted from each aid payment to the
county under section 477A.015 in 1992 and each subsequent year.
(d) If the amount computed under paragraph (b) exceeds the
amount payable to a county under subdivision 1, the excess shall
be deducted from the aid payable to the county under section
273.1398, subdivision 2.
Sec. 9. Minnesota Statutes 1989 Supplement, section
477A.013, subdivision 1, is amended to read:
Subdivision 1. [TOWNS.] In calendar year 1988, each town
which had levied for taxes payable in the previous year at least
one mill on the dollar of the assessed value of the town shall
receive a distribution equal to the greater of: (a) 60 percent
of the amount received in 1983 pursuant to Minnesota Statutes
1982, sections 273.138, 273.139, and 477A.011 to 477A.03; or (b)
the amount certified in 1987 pursuant to sections 477A.011 to
477A.03. In calendar year 1989, each town that had levied for
taxes payable in 1988 at least one mill on the dollar of the
assessed value of the town shall receive a distribution equal to
106 percent of the distribution received under Minnesota
Statutes 1987 Supplement, section 477A.013, subdivision 1, in
1988. In calendar year 1990 and subsequent years, each town
that had levied for taxes payable in the prior year a tax
capacity rate of at least .008 shall receive a distribution
equal to 106 percent of the amount received in 1989 under this
subdivision. In calendar year 1991 and subsequent years, each
town that had levied for taxes payable in the prior year a tax
capacity rate of at least .008 shall receive a distribution
equal to the amount it received in 1990 under this subdivision
less the amount deducted in 1989 under section 477A.013,
subdivision 6.
Sec. 10. Minnesota Statutes 1988, section 477A.013,
subdivision 3, is amended to read:
Subd. 3. [CITY AID DISTRIBUTION.] In 1989, a city whose
initial aid is greater than $0 will receive the following aid
increases in addition to an amount equal to the local government
aid it received in 1988 under Minnesota Statutes 1987
Supplement, section 477A.013:
(1) for a city whose expenditure/unlimited aid ratio is at
least 1.5, two percent of city revenue;
(2) for a city whose expenditure/unlimited aid ratio is at
least 1.4 but less than 1.5, 2.5 percent of city revenue;
(3) for a city whose expenditure/unlimited aid ratio is at
least 1.3 but less than 1.4, three percent of city revenue;
(4) for a city whose expenditure/unlimited aid ratio is at
least 1.2 but less than 1.3, four percent of city revenue;
(5) for a city whose expenditure/unlimited aid ratio is at
least 1.1 but less than 1.2, five percent of city revenue;
(6) for a city whose expenditure/unlimited aid ratio is at
least 1.05 but less than 1.1, six percent of city revenue;
(7) for a city whose expenditure/unlimited aid ratio is at
least 1.0 but less than 1.05, seven percent of city revenue;
(8) for a city whose expenditure/unlimited aid ratio is at
least .95 but less than 1.0, 7.5 percent of city revenue;
(9) for a city whose expenditure/unlimited aid ratio is at
least .75 but less than .95, 8.5 percent of city revenue; and
(10) for a city whose expenditure/unlimited aid ratio is
less than .75, nine percent of city revenue.
In 1990 and subsequent years, a city whose initial aid is
greater than $0 will receive an amount equal to the aid it
received under this subdivision and subdivision 4 section in the
year prior to that for which aids are being calculated plus an
aid increase equal to 50 percent of the rates listed in clauses
(1) to (10) multiplied by city revenue.
In 1991 and subsequent years, a city whose initial aid is
greater than $0 will receive an amount equal to the aid it
received under this section in the year prior to that for which
aids are being calculated plus an aid increase equal to 25
percent of the rates listed in clauses (1) to (10) multiplied by
city revenue.
A city's aid increase under this subdivision is limited to
the lesser of (1) 20 percent of its levy for taxes payable in
the year prior to that for which aids are being calculated after
the adjustments provided in section 273.1398, subdivision 2, or
(2) its initial aid amount, or (3) 15 percent of the total
amount received under this section in the previous year,
provided that no city will receive an increase that is less than
two percent of its 1988 1989 local government aid for aids
payable in 1989 1990.
A city whose initial aid is $0 will receive in 1989 1990 an
amount equal to 102 percent of the local government aid it
received in 1988 1989 under Minnesota Statutes 1987 Supplement
1988, section 477A.013. A city whose initial aid is $0 will
receive in 1990 1991 and subsequent years an amount equal to the
aid it received in the previous year under this subdivision and
subdivision 4 section. For purposes of this subdivision the
term "local government aid" includes equalization aid for aids
payable in 1991 and thereafter.
Sec. 11. Minnesota Statutes 1988, section 477A.013, is
amended by adding a subdivision to read:
Subd. 5. [EQUALIZATION AID.] A city is eligible for
equalization aid in 1990 only. The amount of the aid is equal
to (1) the product of (i) a city's average levy for the three
immediately preceding years less the disparity reduction aids
allocated to the city pursuant to Minnesota Statutes 1988,
section 273.1398, subdivision 3, (ii) .36, and (iii) one minus
the ratio of the net tax capacity per capita to 900; less (2)
the local government aid increase for the city under subdivision
3. The aid under this section is limited to 15 percent of the
total local government aid the city received in 1989. The aid
under this section cannot be less than zero. For the purposes
of this subdivision "levy" includes a city's levy on fiscal
disparities distribution under section 473F.08, subdivision 3,
paragraph (a).
Sec. 12. Minnesota Statutes 1988, section 477A.013, is
amended by adding a subdivision to read:
Subd. 6. [AID ADJUSTMENT.] For calendar year 1990, there
shall be an amount equal to 3.4 percent of the town's or city's
adjusted net tax capacity computed using the net class rates for
taxes payable in 1990 and equalized market values as defined in
section 273.1398, subtracted from the aid amounts computed under
subdivision 1, in the case of towns, and under subdivisions 3
and 5 in the case of cities. For cities, the subtraction will
be made first from the aid computed under subdivision 3. If the
subtraction amount under this section is greater than the aid
amount computed under subdivision 3, the remaining amount will
be subtracted from the aid computed under subdivision 5. The
resulting amounts shall be the town's local government aid or
the city's local government aid and equalization aid for
calendar year 1990. The local government aid and equalization
aid amount for any city or town cannot be less than zero. If
the subtraction amount under this section is greater than the
amount for any town or city computed under subdivisions 1, 3,
and 5, the remaining amount shall be subtracted from the town's
or city's homestead and agricultural credit aid under section
273.1398, subdivision 2.
For purposes of this subdivision, "adjusted net tax
capacity" means the city's total net tax capacity using the net
class rates for taxes payable in 1990 and equalized market
values as defined in section 273.1398, as adjusted for the
contributions and distributions required by chapter 473F in the
case of a city or town located within the metropolitan area and
less the captured value in any tax increment district.
An increase in a city's property tax levy for taxes payable
in 1990 attributable to the amount deducted from the city's aids
under this subdivision is exempt from the city's per capita levy
limit under section 275.11 and from the city's percentage of
market value levy limit under section 412.251 or 426.04.
Sec. 13. Minnesota Statutes 1988, section 477A.014,
subdivision 1, is amended to read:
Subdivision 1. [CALCULATIONS AND PAYMENTS.] The
commissioner of revenue shall make all necessary calculations
and make payments pursuant to sections 477A.012, 477A.013 and
477A.03 directly to the affected taxing authorities annually.
In addition, the commissioner shall notify the authorities of
their aid amounts, as well as the computational factors used in
making the calculations for their authority, and those statewide
total figures that are pertinent, before August 15 of the year
preceding the aid distribution year, except that for aid payable
in 1990 the commissioner of revenue must notify the authorities
of their aid amounts as well as the computational factors used
in the calculation before October 23, 1989.
Sec. 14. [1990 TOWN LEVY ADJUSTMENT.]
For 1990 only, for all towns, except towns subject to levy
limits under Minnesota Statutes, sections 275.50 and 275.51, the
commissioner of revenue will certify to the county auditor an
amount equal to the reduction in local government aid under
section 12 at the same time that the homestead and agricultural
credit aid is certified. The county auditor shall add this
amount to the town's certified levy before subtraction of the
homestead and agricultural credit aid under section 275.07,
subdivision 3, unless otherwise directed by the town clerk.
Sec. 15. [REPEALER.]
Minnesota Statutes 1988, sections 477A.011, subdivision 24,
and 477A.013, subdivision 4, are repealed.
Sec. 16. [EFFECTIVE DATE.]
Sections 1 and 2 are effective for taxes levied in 1989 and
thereafter, payable in 1990, and thereafter. Sections 3 to 7
and 9 to 12 and 14 are effective for local government aid paid
in 1990. Section 8 is effective for local government aid paid
in 1992. Section 13 is effective the day following final
enactment. Section 15 is effective January 1, 1991.
ARTICLE 5
LEVY LIMITS
Section 1. Minnesota Statutes 1988, section 6.62,
subdivision 1, is amended to read:
Subdivision 1. [LEVY OF TAX.] Counties, cities and towns
are authorized, if necessary, to levy, over and above tax levy
limitations for other governmental purposes, an amount
sufficient to pay the expense of a postaudit by the state
auditor.
A school district is authorized to levy an amount
sufficient to pay for the expense of a postaudit by the state
auditor if the audit is performed at the discretion of the state
auditor pursuant to section 6.51 or if the audit has been
requested through a petition by eligible voters pursuant to
section 6.54. A school district is not authorized to levy these
amounts if the postaudit by the state auditor is requested by
the school board pursuant to section 6.55.
Sec. 2. Minnesota Statutes 1988, section 18.023,
subdivision 8, is amended to read:
Subd. 8. [DEPOSIT OF PROCEEDS IN SEPARATE FUND.] The
proceeds of any tax levied, assessments and interest collected,
or any bonds or certificates of indebtedness issued under
subdivision 7 and section 275.50, subdivision 6, and any grants
received under subdivision 3a, shall be deposited in the
municipal treasury in a separate fund and expended only for the
purposes authorized by this section.
Sec. 3. Minnesota Statutes 1988, section 110B.15,
subdivision 4, is amended to read:
Subd. 4. [SPECIAL TAXING DISTRICT.] (a) A tax district
authorized under subdivision 3, clause (4), must be established
by resolution adopted by the county board after a hearing.
Notice of the time, place, and purpose of the hearing must be
published for two successive weeks in the official newspaper of
the county, ending at least seven days before the day of the
hearing. The resolution must describe with particularity the
territory or area to be included in the tax district. After
adoption, the resolution must be filed with the county auditor
and county recorder. The district may be dissolved by following
the procedures prescribed for the establishment of the district.
(b) After adoption of the resolution under paragraph (a), a
county may annually levy a tax on all taxable property in the
district for the purposes for which the tax district was
established. The proceeds of the tax must be paid into a fund
reserved for these purposes. Any proceeds remaining in the
reserve fund at the time the tax is terminated or the district
is dissolved must be transferred and irrevocably pledged to the
debt service fund of the county to be used only to reduce tax
levies for bonded indebtedness of taxable property in the
district. A tax levied in accordance with this subdivision for
paying capital costs is a levy for the payment of principal and
interest on bonded indebtedness within the meaning of section
275.50, subdivision 5, clause (e).
(c) After adoption of the resolution under paragraph (a),
and after a contract for the construction of all or part of an
improvement has been entered into or the work has been ordered
to be done by hired labor, the county may issue obligations in
the amount determined by the county board to be necessary to pay
in whole or in part the capital cost incurred and estimated to
be incurred in making the improvement. The obligations are
payable out of the proceeds of the tax levied under this
subdivision. The county board may, by resolution adopted prior
to the sale of obligations, pledge the full faith, credit, and
taxing power of the county to assure payment of the principal
and interest in the event the proceeds of the tax levy in the
district are insufficient to pay principal and interest. The
amount of any taxes that are required to be levied outside of
the territory of the tax district or taken from the general
funds of the county to pay principal and interest on the
obligations must be reimbursed to the county from taxes levied
within the territory of the tax district. Obligations must be
issued in accordance with chapter 475, except that an election
is not required and the amount of any obligations must not be
included in determining the net indebtedness of the county under
the provisions of any law or charter limiting indebtedness.
Sec. 4. Minnesota Statutes 1988, section 115.34,
subdivision 1, is amended to read:
Subdivision 1. The board may authorize the borrowing of
money for any district purpose and provide for the repayment
thereof, subject to chapter 475. The taxes initially levied by
any district in accordance with section 475.61 for the payment
of its bonds, upon property within each municipality included in
the district, shall be included in computing the limitations
upon the levy of such municipality under section 275.11. If the
tax required by section 475.61 to be levied for any year of the
term of a bond issue upon property within any municipality
included in the district would, when added to the taxes levied
by such municipality for all purposes in the year preceding such
issue, exceed the limitations prescribed in section 275.11, the
bonds shall not be issued without the consent by resolution of
the governing body of such municipality.
Sec. 5. Minnesota Statutes 1988, section 129A.06,
subdivision 2, is amended to read:
Subd. 2. In order to provide the necessary funds for
extended employment programs offered by a rehabilitation
facility, the governing body of any city, town, or county may
expend money which may be available for such purposes in the
general fund, and may levy a tax which, except when levied by a
county, shall not exceed in any one year the following amounts
per capita of the population, based upon the last federal
census: Cities of the first class, not to exceed ten cents per
capita; cities of other than the first class, and towns, not to
exceed 30 cents per capita. A tax levied pursuant to this
subdivision is not a special levy as defined in section 275.50,
subdivision 5, and shall be subject to the limitation provided
in sections 275.51 to 275.56. Any city, town, county, or
nonprofit corporation may accept gifts or grants from any source
for the rehabilitation facility. Any money appropriated, taxed,
or received as a gift or grant may be used to match funds
available on a matching basis.
Sec. 6. Minnesota Statutes 1988, section 145A.08,
subdivision 3, is amended to read:
Subd. 3. [TAX LEVY AUTHORIZED.] A city council or county
board that has formed or is a member of a board of health may
levy taxes under sections 275.50 to 275.56 on all taxable
property in its jurisdiction to pay the cost of performing its
duties under this chapter.
Sec. 7. Minnesota Statutes 1988, section 164.041, is
amended to read:
164.041 [REMOVAL OF LEVY LIMIT; ROAD AND BRIDGE PURPOSES.]
It is the intent of this legislation to remove all
limitations relating specifically to the authority of a town to
levy taxes for road and bridge purposes and any act for a single
town or for a group of towns relating specifically to a
limitation on the authority of a town to levy taxes for road and
bridge purposes, however stated in mills, dollars, or a per
capita amount is hereby superseded; provided that nothing in
Laws 1975, chapter 268, shall be construed to permit a levy in
excess of the limitations imposed by sections 275.50 to 275.58.
Sec. 8. Minnesota Statutes 1988, section 273.123,
subdivision 7, is amended to read:
Subd. 7. [LOCAL OPTION; OTHER PROPERTY.] The owner of
homestead property not qualifying for an adjustment in valuation
pursuant to subdivisions 1 to 5 or of nonhomestead property may
receive a reduction in the amount of taxes payable for the year
in which the destruction occurs on the property if:
(a) 50 percent or more of the homestead dwelling or other
structure, as established by the county assessor, is
unintentionally or accidentally destroyed and the homestead is
uninhabitable or the other structure is not usable;
(b) the owner of the property makes written application to
the county assessor as soon as practical after the damage has
occurred; and
(c) the owner of the property makes written application to
the county board.
The county board may grant a reduction in the amount of
property tax which the owner must pay on the qualifying property
in the year of destruction. Any reduction in the amount of tax
payable which is authorized by county board action shall be
calculated based upon the number of months that the home is
uninhabitable or the other structure is unusable. The amount of
net tax due from the taxpayer shall be multiplied by a fraction,
the numerator of which is the number of months the dwelling was
occupied by that taxpayer, or the number of months the other
structure was used by the taxpayer, and the denominator of which
is 12. For purposes of this subdivision, if a structure is
occupied or used for a fraction of a month, it is considered a
month. "Net tax" is defined as the amount of tax after the
subtraction of all of the state paid property tax credits. If
application is made following payment of all property taxes due
for the year of destruction, the amount of the reduction granted
by the county board shall be refunded to the taxpayer by the
county treasurer as soon as practical.
Any reductions or refunds approved by the county board
shall not be subject to approval by the commissioner of revenue.
The county board may levy in the following year the amount
of tax dollars lost to the county government as a result of the
reductions granted pursuant to this subdivision. Any amount
levied for this purpose shall be exempt from the levy limit
provisions of sections 275.50 to 275.56.
Sec. 9. Minnesota Statutes 1989 Supplement, section
275.14, is amended to read:
275.14 [CENSUS.]
For the purposes of sections 124.2713 and 275.11 275.124 to
275.16, the population of a city shall be that established by
the last federal census, by a special census taken by the United
States Bureau of the Census, by an estimate made by the
metropolitan council, or by the state demographer made according
to section 116K.04, subdivision 4, whichever has the latest
stated date of count or estimate, before July 2 of the current
levy year. The population of a school district must be as
certified by the department of education from the most recent
federal census.
In any year in which no federal census is taken pursuant to
law in any school district affected by sections 275.11 275.124
to 275.16 a population estimate may be made and submitted to the
state demographer for approval as hereinafter provided. The
school board of a school district, in case it desires a
population estimate, shall pass a resolution by September 1
containing a current estimate of the population of the school
district and shall submit the resolution to the state
demographer. The resolution shall describe the criteria on
which the estimate is based and shall be in a form and
accompanied by the data prescribed by the state demographer.
The state demographer shall determine whether or not the
criteria and process described in the resolution provide a
reasonable basis for the population estimate and shall inform
the school district of that determination within 30 days of
receipt of the resolution. If the state demographer determines
that the criteria and process described in the resolution do not
provide a reasonable basis for the population estimate, the
resolution shall be of no effect. If the state demographer
determines that the criteria and process do provide a reasonable
basis for the population estimate, the estimate shall be treated
as the population of the school district for the purposes of
sections 275.11 275.124 to 275.16 until the population of the
school district has been established by the next federal census
or until a more current population estimate is prepared and
approved as provided herein, whichever occurs first. The state
demographer shall establish guidelines for acceptable population
estimation criteria and processes. The state demographer shall
issue advisory opinions upon request in writing to cities or
school districts as to proposed criteria and processes prior to
their implementation in an estimation. The advisory opinion
shall be final and binding upon the demographer unless the
demographer can show cause why it should not be final and
binding.
In the event that a census tract employed in taking a
federal or local census overlaps two or more school districts,
the county auditor shall, on the basis of the best information
available, allocate the population of said census tract to the
school districts involved.
The term "council," as used in sections 275.11 275.124 to
275.16, means any board or body, whether composed of one or more
branches, authorized to make ordinances for the government of a
city within this state.
Sec. 10. Minnesota Statutes 1988, section 275.15, is
amended to read:
275.15 [NOT TO INCREASE LEVIES.]
Sections 275.11 275.124 to 275.16 shall not authorize, nor
be construed as, in any instance, authorizing the levy of total
amounts of taxes in any year in excess of the amount allowed by
law at the time of the passage of these sections, but shall be
considered an additional limitation.
Sec. 11. Minnesota Statutes 1988, section 275.16, is
amended to read:
275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.]
If any such municipality shall return to the county auditor
a levy greater than permitted by sections 275.11 275.124 to
275.16, such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit;
provided, if such levy shall include any levy for the payment of
bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the
remainder of the levies shall be reduced so that the total
thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will
permit.
Sec. 12. Minnesota Statutes 1988, section 275.50,
subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other law to the contrary for
taxes levied in 1988 1989 payable in 1989 1990 and subsequent
years, "special levies" means those portions of ad valorem taxes
levied by governmental subdivisions to:
(a) for taxes levied in 1990, payable in 1991 and
subsequent years, pay the costs not reimbursed by the state or
federal government, of payments made to or on behalf of
recipients of aid under any public assistance program authorized
by law, and the costs of purchase or delivery of social
services. Except for the costs of general assistance as defined
in section 256D.02, subdivision 4, general assistance medical
care under section 256D.03 and the costs of hospital care
pursuant to section 261.21, The aggregate amounts levied
pursuant to under this clause for the costs of purchase or
delivery of social services and income maintenance programs,
other than those identified in section 273.1398, subdivision 1,
paragraph (i) are subject to a maximum increase over the amount
levied for the previous year of 18 12 percent over the amount
levied for these purposes in the previous year for counties
within the metropolitan area as defined in section 473.121,
subdivision 2, or counties outside the metropolitan area but
containing a city of the first class, and 15 percent for other
counties. For purposes of this clause, "income maintenance
programs" include income maintenance programs in section
273.1398, subdivision 1, paragraph (i), to the extent the county
provides benefits under those programs over the statutory
mandated standards. Effective with taxes levied in 1989 1990,
the portion of this special levy for income maintenance programs
human service programs identified in section 273.1398,
subdivision 1, paragraph (i), is eliminated;
(b) pay the costs of principal and interest on bonded
indebtedness except on bonded indebtedness issued under section
471.981, subdivisions 4 to 4c or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due
in the year preceding the year for which the levy limit is
calculated on municipal liquor store bonds;
(c) pay the costs of principal and interest on certificates
of indebtedness, except tax anticipation or aid anticipation
certificates of indebtedness, issued for any corporate purpose
except current expenses or funding an insufficiency in receipts
from taxes or other sources or funding extraordinary
expenditures resulting from a public emergency; and to pay the
cost for certificates of indebtedness issued pursuant to
sections 298.28 and 298.282;
(d) fund the payments made to the Minnesota state armory
building commission pursuant to section 193.145, subdivision 2,
to retire the principal and interest on armory construction
bonds;
(e) provide for the bonded indebtedness portion of payments
made to another political subdivision of the state of Minnesota;
(f) pay the amounts required, in accordance with section
275.075, to correct for a county auditor's error of omission but
only to the extent that when added to the preceding year's levy
it is not in excess of an applicable statutory, special law or
charter limitation, or the limitation imposed on the
governmental subdivision by sections 275.50 to 275.56 in the
preceding levy year;
(g) pay amounts required to correct for an error of
omission in the levy certified to the appropriate county auditor
or auditors by the governing body of a city or town with
statutory city powers in a levy year, but only to the extent
that when added to the preceding year's levy it is not in excess
of an applicable statutory, special law or charter limitation,
or the limitation imposed on the governmental subdivision by
sections 275.50 to 275.56 in the preceding levy year;
(h) pay amounts required by law to be paid to pay the
interest on and to reduce the unfunded accrued liability of
public pension funds in accordance with the actuarial standards
and guidelines specified in sections 356.215 and 356.216 reduced
by 106 percent of the amount levied for that purpose in 1976,
payable in 1977. For the purpose of this special levy, the
estimated receipts expected from the state of Minnesota pursuant
to sections 69.011 to 69.031 or any other state aid expressly
intended for the support of public pension funds shall be
considered as a deduction in determining the required levy for
the normal costs of the public pension funds. No amount of
these aids shall be considered as a deduction in determining the
governmental subdivision's required levy for the reduction of
the unfunded accrued liability of public pension funds;
(i) to compensate the state for the cost of a reassessment
ordered by the commissioner of revenue pursuant to section
270.16; and
(j) pay the debt service on tax increment financing revenue
bonds to the extent that revenue to pay the bonds or to maintain
reserves for the bonds is insufficient as a result of the
provisions of Laws 1988, chapter 719, article 5.;
(k) pay the cost of hospital care under section 261.21;
(l) pay the unreimbursed costs incurred in the previous
year to satisfy judgments rendered against the governmental
subdivision by a court of competent jurisdiction in any tort
action, or to pay the costs of settlements out of court against
the governmental subdivision in a tort action when substantiated
by a stipulation for the dismissal of the action filed with the
court of competent jurisdiction and signed by both the plaintiff
and the legal representative of the governmental subdivision,
provided that an appeal for the unreimbursed costs under this
clause was approved by the commissioner of revenue under section
16;
(m) pay the expenses reasonably and necessarily incurred in
preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes such as earthquake, fire, flood, wind storm, wave
action, oil spill, water contamination, air contamination, or
drought in accordance with standards formulated by the emergency
services division of the state department of public safety,
provided that an appeal for the expenses incurred under this
clause were approved by the commissioner of revenue under
section 16;
(n) pay a portion of the losses in tax receipts to a city
due to tax abatements or court actions in the year preceding the
current levy year, provided that an appeal for the tax losses
was approved by the commissioner of revenue under section 16.
This special levy is limited to the amount of the losses times
the ratio of the nonspecial levies to total levies for taxes
payable in the year the abatements were granted. County
governments are not authorized to claim this special levy;
(o) pay the operating cost of regional library services
authorized under section 134.34, subject to a maximum increase
over the previous year of the greater of (1) 103 percent
multiplied by one plus the percentage increase determined for
the governmental subdivision under section 275.51, subdivision
3h, clause (b), or (2) six percent. If a governmental
subdivision elected to include some or all of its levy for
libraries within its adjusted levy limit base in the prior year,
but elects to claim the levy as a special levy in the current
levy year, the allowable increase is determined by applying the
greater percentage determined under clause (1) or (2) to the
total amount levied for libraries in the prior levy year. After
levy year 1989, the increase must not be determined using a base
amount other than the amount that could have been levied as a
special levy in the prior year. In no event shall the special
levy be less than the minimum levy required under sections
134.33 and 134.34, subdivisions 1 and 2;
(p) pay the amount of the county building fund levy
permitted under section 373.40, subdivision 6;
(q) pay the county's share of the costs levied in 1989,
1990, and 1991 for the Minnesota cooperative soil survey under
Minnesota Statutes 1988, section 40.07, subdivision 15;
(r) for taxes levied in 1989, payable in 1990 only, pay the
cost incurred for the minimum share required by counties levying
for the first time under section 134.34 as required under
section 134.341. For taxes levied in 1990, and thereafter,
counties levying under this provision must levy under clause
(o), and their allowable increase must be determined with
reference to the amount levied in 1989 under this paragraph;
(s) for taxes levied in 1989, payable in 1990 only, provide
an amount equal to 50 percent of the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990;
(t) for taxes levied in 1990 only by a county in the eighth
judicial district, provide an amount equal to the amount of the
levy, if any, that is required under Laws 1989, chapter 335,
article 3, section 54, subdivision 8; and
(u) for taxes levied in 1989, payable in 1990 only, pay the
costs not reimbursed by the state or federal government:
(i) for the costs of purchase or delivery of social
services. The aggregate amounts levied under this item are
subject to a maximum increase over the amount levied in the
previous year of 12 percent for counties within the metropolitan
area as defined in section 473.121, subdivision 2, or counties
outside the metropolitan area but containing a city of the first
class, and 15 percent for other counties.
(ii) for payments made to or on behalf of recipients of aid
under any public assistance program authorized by law. The
aggregate amounts levied under this item are subject to a
maximum increase over the amount levied in the previous year of
12 percent and must be used only for the public assistance
programs.
If the amount levied in 1989 is less than the actual
expenditures needed for these programs for 1990, the difference
between the actual expenditures and the amount levied may be
levied in 1990 as a special levy. If the amount levied in 1989
is greater than the actual expenditures needed for these
programs for 1990, the difference between the amount levied and
the actual expenditures shall be deducted from the 1990 levy
limit, payable in 1991.
Sec. 13. Minnesota Statutes 1988, section 275.51,
subdivision 3f, is amended to read:
Subd. 3f. [LEVY LIMIT BASE.] (a) The property tax levy
limit base for governmental subdivisions for taxes levied in
1988 shall be equal to the total actual levy for taxes payable
in 1988 plus the amount of any payments the governmental
subdivision was certified to receive in 1988 under sections
477A.011 to 477A.014 and minus any special levies claimed for
taxes payable in 1988 pursuant to Laws 1987, chapter 268,
article 5, section 12, subdivision 4, clauses (1), (2), (3), and
(4). A county's levy limit base will be increased by the amount
of any increase in its levy under section 134.07 over that
levied under section 134.07 for taxes payable in 1988 which is
required under section 134.341. For governmental subdivisions
located in the seven-county metropolitan area, the total actual
levy for taxes payable in 1988 shall include the fiscal
disparities distribution levy pursuant to Minnesota Statutes
1986, section 473F.08, subdivision 7a with additions and
subtractions as specified in paragraphs (b) and (c).
(b) The amounts to be added to the actual 1988 levy are (1)
the amount of local government aid the governmental subdivision
was certified to receive in 1988 under sections 477A.011 to
477A.014, (2) its 1988 taconite aids under sections 298.28 and
298.282, and (3) its 1988 wetlands and native prairie
reimbursements under Minnesota Statutes 1986, sections 273.115,
subdivision 3, and 273.116, subdivision 3.
(c) The amounts to be subtracted from the actual 1988 levy
are (1) any special levies claimed for taxes payable in 1988
pursuant to Laws 1987, chapter 268, article 5, section 12,
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a
governmental subdivision participating in a regional library
system receiving grants from the department of education under
section 134.34, the amount levied for taxes payable in 1988 for
the operating costs of a public library service.
(b) (d) For taxes levied in 1989 and subsequent years, a
governmental subdivision's levy limit base is equal to its
adjusted levy limit base for the preceding year not including
the adjustment made under subdivision 3h, paragraph (c), plus,
provided that for taxes levied in 1989, the amount of the
administrative reimbursement aid received in 1988 shall be added
to the base.
(e) For taxes levied by a county in 1989, the levy limit
base determined under paragraph (d) shall be reduced by an
amount equal to 90 percent of the cost of public defender
services for felonies and gross misdemeanors and the costs of
law clerks in the county that are assumed by the state during
calendar year 1990, less 103 percent of one-half the amount of
fees collected by the courts in the county during calendar year
1988. For taxes levied in 1990, the levy limit base determined
under paragraph (d) shall be reduced by an amount equal to the
cost of public defender services for felonies and gross
misdemeanors and the cost of law clerks in the county that are
assumed by the state during calendar year 1991, less the amount
of fees collected by the courts in the county during calendar
year 1989, computed at the rate of $30 for civil and probate
filings and $20 for marriage dissolutions.
(f) For taxes levied in 1989 only, by a county that is
located in the eighth judicial district, the levy limit base
determined under paragraphs (d) and (e) shall be further reduced
by an amount equal to 90 percent of the cost of operation of the
trial courts in the county during calendar year 1990 that are
assumed by the state and for which an appropriation is provided,
less 103 percent of the sum of (1) the remaining one-half of the
amount of fees and (2) 100 percent of the amount of fines
collected by the courts in the county during calendar year
1988. For taxes levied in 1990 only by those counties, the levy
limit base determined under paragraphs (d) and (e) shall be
further reduced by an amount equal to the cost of operation of
the trial courts in the county during the first six months of
calendar year 1991 that are assumed by the state less 50 percent
of the amount of fines collected by the courts during calendar
year 1989.
(g) By October 15, 1989, the board of public defense shall
determine and certify to the commissioner of revenue the pro
rata share for each county of the state-financed public defense
services described in paragraph (e) during the six-month period
beginning July 1, 1990. By October 15, 1989, the supreme court
shall determine and certify to the department of revenue for
each county the pro rata share for each county of the cost of
providing law clerks during the three-month period beginning
October 1, 1990, plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during calendar year 1990.
By July 15, 1990, the board of public defense shall
determine and certify to the department of revenue the pro rata
share for each county of the state-financed public defense
services described in paragraph (e) during calendar year 1991.
By July 15, 1990, the supreme court shall determine and certify
to the department of revenue for each county the pro rata share
for each county of the cost of providing law clerks during
calendar year 1991 plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during the first six months of 1991.
(h) For taxes levied in a county in 1991, the levy limit
base shall be reduced by an amount equal to the cost in the
county of court reporters, judicial officers, and district court
referees and the expenses of law clerks and court reporters as
authorized in Laws 1989, chapter 335, article 3, sections 17 and
26 as certified by the supreme court pursuant to section
477A.012, subdivision 4.
(i) If a governmental subdivision received an adjustment to
its levy limit base for taxes levied in 1988 under section
275.51, subdivision 3j, its levy limit base for taxes levied in
1989 must be reduced by the lesser of (1) the adjustment under
section 275.51, subdivision 3j, or (2) the difference between
its (i) levy limit for taxes levied in 1988 and its (ii) total
actual levy for taxes levied in 1988 minus any special levies
claimed for taxes levied in 1988 under section 275.50,
subdivision 5.
Sec. 14. Minnesota Statutes 1988, section 275.51,
subdivision 3h, is amended to read:
Subd. 3h. [ADJUSTED LEVY LIMIT BASE.] For taxes levied
in 1988 1989 and thereafter, the adjusted levy limit base is
equal to the levy limit base computed pursuant to subdivision
3f, increased by:
(a) a percentage equal to four percent for taxes levied in
1988 and three percent for taxes levied in 1989 and subsequent
years; and
(b) a percentage equal to (1) one-half of the greater of
the percentage increases in population or in number of
households, if any, for the most recent 12-month period for
which data is available, for cities and towns and (2) the lesser
of the percentage increase in population or the number of
households, if any, for counties, using figures derived pursuant
to subdivision 6.;
For taxes levied in 1989 and subsequent years, to the
resulting product must be added the estimated reduction in a
county's income maintenance aids as defined in section 273.1398,
subdivision 1, pursuant to section 273.1398, subdivision 2,
paragraph (d). The department of human services shall annually
estimate the increase in income maintenance aids referred to in
section 273.1398, subdivision 2, paragraph (d), and certify it
by county to the department of revenue by July 15 of the levy
year preceding that in which the aids are payable. If the
actual increase in a county's income maintenance aid referred to
in section 273.1398, subdivision 2, paragraph (d), is less than
or greater than the amount added to a county's adjusted levy
limit base in the prior year, its adjusted levy limit base for
the subsequent year will be increased or decreased by the
appropriate amount.
(c) the amount of a permanent increase in the levy limit
base approved at a general or special election held during the
12-month period ending September 30 of the levy year under
section 275.58, subdivisions 1 and 2;
(d) for levy year 1989, for a county which incurred costs
since October 1978, for the litigation of federal land claims
under United States Code, title 18, section 1162; United States
Code, title 25, section 331; and United States Code, title 28,
section 1360; an amount of up to the actual costs incurred by
the county for this purpose. This adjustment shall not exceed
$250,000;
(e) for levy year 1989, an amount of $1,724,000 for Ramsey
county for implementing the local government pay equity act
under sections 471.991 to 471.999. Furthermore, in levy years
1990 and 1991, an additional amount of $862,000 shall be added
to Ramsey county's adjusted levy limit base under this clause
for each of the two years; and
(f) for levy year 1989, an amount equal to the decrease in
a county's 50 percent share of the powerline taxes extended
between taxes payable years 1988 and 1989 under section 273.42,
subdivision 1. The adjustment shall be determined by the
department of revenue.
For taxes levied in 1989, the adjusted levy limit base is
reduced by an amount equal to the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990.
Sec. 15. Minnesota Statutes 1988, section 275.51,
subdivision 3i, is amended to read:
Subd. 3i. [LEVY LIMITATION.] The levy limitation for a
governmental subdivision shall be equal to the adjusted levy
limit base determined pursuant to subdivision 3h, reduced by:
(1) the local government aid that the governmental
subdivision has been certified to receive pursuant to sections
477A.011 to 477A.014., excluding the aid received pursuant to
section 477A.013, subdivision 5; and
(2) taconite aids under sections 298.28 and 298.282
including any aid received in the levy year that was required to
be placed in a special fund for expenditure in the next
succeeding year.
As provided in section 298.28, one cent per taxable ton of
the amount distributed under section 298.28, subdivision 5,
paragraph (d), must not be deducted from the levy limit base of
a county that receives the aid.
This amount is the amount of property taxes which a
governmental subdivision may levy for all purposes other than
those for which special levies and special assessments are made.
For taxes levied in 1989 and later years, the levy limit
for a county calculated under clause (1) must be decreased by an
additional amount equal to the difference between what would
have been a county's production year 1986 payable 1987
distribution under Minnesota Statutes 1984, section 298.28,
based on 1986 production and its actual distribution for
production year 1986, payable 1987.
Sec. 16. Minnesota Statutes 1988, section 275.51,
subdivision 3j, is amended to read:
Subd. 3j. [APPEALS.] (a) A governmental subdivision
subject to the limitations in this section county may appeal to
the commissioner of revenue for an adjustment in its levy limit
base under this section. If the governmental subdivision county
can provide evidence satisfactory to the commissioner that its
levy for taxes payable in 1988 had been reduced because it had
made expenditures from reserve funds 1989 under Minnesota
Statutes 1988, section 275.50, subdivision 5, paragraph (a),
included a levy for the cost of administration of the programs
listed in that paragraph, the commissioner may permit
the governmental subdivision county to increase its levy limit
base under this section by the amount determined by the
commissioner to have been levied for that purpose, provided that
the total adjustment shall not be in excess of three percent of
the total expense for income maintenance programs within the
county. The commissioner's decision is final.
(b) A governmental subdivision subject to the limitations
in this section may appeal to the commissioner of revenue for
authorization to levy for the special levies as contained in
section 275.50, subdivision 5, clauses (l), (m), and (n). If
the governmental subdivision can provide evidence satisfactory
to the commissioner that it incurred costs for the specified
purposes of those levies, the commissioner may allow the
governmental subdivision to levy under section 275.50,
subdivision 5, clause (l), (m), or (n), by the amount determined
by the commissioner. The commissioner's decision is final.
(c) A county may appeal to the commissioner of revenue for
an adjustment to its levy limit base for taxes levied in 1989.
If the county can provide evidence satisfactory to the
commissioner that the percentage adjustments to the costs, fees,
or fines described in subdivision 3f, paragraph (e) or (f), do
not provide accurate adjustments for that county, the
commissioner may permit the county to increase its levy limit
base by the amount determined by the commissioner. The
commissioner's decision is final.
(d) A county may appeal to the commissioner of revenue for
an increase in its levy base for the 12 or 15 percent limit
under section 275.50, subdivision 5, clause (u), item (i) for
the portion of the amount of its payable 1989 special levy under
Minnesota Statutes 1988, section 275.50, subdivision 5, clause
(a) for the income maintenance programs that was actually used
to finance social services and social services administration
subject to the 18 percent limit under Minnesota Statutes 1988,
section 275.50, subdivision 5, clause (a) for payable 1989. If
the county can provide evidence satisfactory to the commissioner
in support of this claim, the commissioner may permit the county
to increase its levy base for the 12 or 15 percent limit under
section 275.50, subdivision 5, clause (u), item (i) in the
amount determined by the commissioner. The commissioner's
decision is final.
(e) A county may appeal to the commissioner of revenue for
an adjustment in its special levy for 1990 under section 275.50,
subdivision 5, clause (u), item (ii), if the difference between
the county share of costs not reimbursed by the state or federal
government of payments made in 1989 to or on behalf of
recipients of aid under any public assistance program authorized
by law and the amount levied in 1988 to pay those costs is
greater than 30 percent of the 1989 costs. The adjustment may
not exceed the amount of the difference between the county share
of these costs and the amount levied in 1988 to pay these costs.
Sec. 17. Minnesota Statutes 1988, section 275.51,
subdivision 4, is amended to read:
Subd. 4. If 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 tax
capacity 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 or homestead and
agricultural credit aid under section 273.1398, shall be reduced
33 cents for each full dollar the levy exceeds the limitation.
Sec. 18. Minnesota Statutes 1988, section 275.51,
subdivision 6, is amended to read:
Subd. 6. [POPULATION AND HOUSEHOLD ESTIMATES.] For the
purpose of determining the amount of tax that a governmental
subdivision may levy in accordance with limitation established
by this chapter, the population or the number of households of
the governmental subdivision shall be that established by the
last federal census, by a census taken pursuant to section
275.14, or by an estimate made by the metropolitan council, or
by the state demographer made pursuant to section 116K.04,
subdivision 4, whichever is the most recent as to the stated
date of count or estimate, up to and including July 1 of for the
calendar year preceding the current levy year.
Sec. 19. Minnesota Statutes 1989 Supplement, section
275.58, subdivision 1, is amended to read:
Subdivision 1. Notwithstanding Subject to the provisions
of sections 275.50 to 275.56, but subject and to other law or
charter provisions establishing per capita, mill, tax capacity
rate, or other limitations on the amount of taxes that may be
levied, the levy of a governmental subdivision, as defined by
section 275.50, subdivision 1, may be increased above the
limitation imposed by sections 275.50 to 275.56 in any per
capita or dollar amount which is approved by the majority of
voters of the governmental subdivision voting on the question at
a general or special election. When the governing body of the
governmental subdivision resolves to increase the levy of the
governmental subdivision pursuant to this section, it shall
provide for submission of the proposition of an increase in the
levy limit base per capita or the proposition of an additional
levy, as the case may be, at a general or special election.
Notice of the election shall be given in the manner required by
law. If the proposition is for an adjustment to the
governmental subdivision's levy limit base per capita,
increasing the levy limit base per capita over the per capita
amount established pursuant to section 275.51, subdivision 3,
the notice shall state the purpose of the per capita adjustment
and the per capita amount of the adjustment. If the proposition
is for an additional levy, the notice shall state the purpose
and maximum yearly amount of the additional levy.
Sec. 20. Minnesota Statutes 1988, section 298.28,
subdivision 12, is amended to read:
Subd. 12. [ESTIMATES.] 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 provided in subdivision 13. 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 subdivision 5, paragraph (d)
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 275.58 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 275.58, 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 275.58 an amount sufficient to
pay such certificates of indebtedness and interest thereon, or,
if no certificates were issued, an amount equal to such shortage.
Sec. 21. Minnesota Statutes 1989 Supplement, section
298.282, subdivision 2, is amended to read:
Subd. 2. (a) Each year following the final determination
of the amount of taxes payable under section 298.24, the
commissioner of revenue shall determine the amount in the
taconite municipal aid account as of July 1 of that year and the
amount to be distributed to each qualifying municipality during
the year. The amount to be distributed to each qualifying
municipality shall be determined by determining an index for
each qualifying municipality by subtracting its local effort tax
capacity rate, multiplied by its equalized gross tax capacity,
from its fiscal need factor. For the purposes of this
subdivision, the following terms have the meanings given them
herein. A municipality's "local effort tax capacity rate" means
its fiscal need factor per capita divided by $21 per capita for
each one percent of the gross tax capacity rate or $17 per
capita for each one percent of the net tax capacity rate for the
first $350 of its fiscal need factor per capita; plus its fiscal
need factor per capita divided by $18 per capita for each one
percent of the gross tax capacity rate or $15 per capita for
each one percent of the net tax capacity rate on that part of
its fiscal need factor per capita, if any, in excess of $350.
In no case shall a municipality's local effort tax capacity rate
be less than a gross tax capacity rate of 6.56 percent or a net
tax capacity rate of 8.16 percent. A municipality's "equalized
gross tax capacity" means its previous year tax capacity, less
the tax capacity in any tax increment district, divided by the
municipality's aggregate sales ratio covering the period ending
two years prior to the year of aid distribution. A
municipality's "fiscal need factor" means the three-year average
of the sum of its municipal levy, taconite aids received under
section 298.28, subdivisions 2, 11, paragraph (b), and this
section and its local government aid distribution amount, for
taxes payable and distribution amounts receivable in the three
years immediately preceding the aid distribution year.
The ratio of the resulting index for each qualifying
municipality to the sum of all qualifying municipalities'
indexes shall be multiplied by the total amount in the taconite
municipal aid account less the amount distributed pursuant to
subdivision 5.
(b) If the distribution under this section, sections
273.138, 298.26 and 298.28, and chapter 477A, to any
municipality would exceed that municipality's levy limit base
for that year, computed pursuant to sections 275.50 to 275.58,
the amount in excess of the levy limit base for that year shall
reduce the amount distributed to the municipality under this
section and this excess amount shall be distributed to the other
qualifying municipalities in the same manner as the distribution
made pursuant to subdivision 2, except that the qualifying
municipality receiving an initial distribution when added to
that received pursuant to sections 273.138, 298.26, 298.28, and
chapter 477A in excess of the qualifying municipality's levy
limit base, shall not receive a distribution nor shall its index
be used in computing the distribution pursuant to this clause.
The distributions to be received in the year in which the taxes
are payable shall be compared to the levy limit base for that
same year. Upon completion of the determination, the
commissioner of revenue shall certify to the chief clerical
officer of each qualifying municipality the amount which will be
distributed to the municipality from the taconite municipal aid
account that year.
Sec. 22. Minnesota Statutes 1988, section 298.282,
subdivision 3, is amended to read:
Subd. 3. If the amount certified by the commissioner of
revenue as distributable to any qualifying municipality is
greater than the amount previously estimated to have been
distributable to such qualifying municipality in such year, the
excess distributed to such municipality shall be held in a
separate fund by the qualifying municipality and shall not be
expended until the succeeding calendar year. If the amount
distributable to any qualifying municipality, after final
determination by the commissioner of revenue is less than the
amount estimated to have been distributable to such qualifying
municipality, such municipality may issue certificates of
indebtedness in the amount of the shortage and may include in
its next tax levy in excess of the limitations under sections
275.50 to 275.56, an amount sufficient to pay such certificates
of indebtedness and interest thereon or, if no certificates were
issued, an amount equal to such shortage.
Sec. 23. Minnesota Statutes 1988, section 298.39, is
amended to read:
298.39 [DISTRIBUTION OF PROCEEDS.]
The proceeds of the tax collected under section 298.35
shall be distributed by the state treasurer, upon certificate of
the commissioner of revenue to the general fund of the state and
to the various taxing districts in which the lands from which
the semitaconite was mined or quarried were located in the
following proportions: 22 percent thereof to the city or town;
50 percent thereof to the school district; 22 percent thereof to
the county; six percent thereof to the state. If the mining 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 or towns among such subdivisions, and the part going to
school districts among such districts, and the part going to
counties among such counties, upon the basis of attributing 40
percent of the proceeds of the tax to the operation of mining or
quarrying the semitaconite, 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. The commissioner's 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. The amount so distributed
shall be divided among the various funds of the state, or of the
taxing districts in the same proportion as the general ad
valorem tax thereof. If in any year the state shall not spread
any general ad valorem tax levy against real property, the
state's proportion of the tax shall be paid into the general
fund. The amount distributed to any city shall be included in
computing the permissible levies of such city under section
275.11, but shall not be included in computing tax capacity rate
limitations, including cost of living adjustments thereof, so
long as the levies do not exceed the limitations provided by
section 275.11. On or before October 10 of each calendar year
each producer of semitaconite subject to taxation under section
298.35, hereinafter called "taxpayer," shall file with the
commissioner of revenue and with the county auditor of each
county in which such taxpayer operates, and with the chief
clerical officer of each school district or city which is
entitled to participate in the distribution of the tax, 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. Such
estimate shall list the taxing districts entitled to participate
in the distribution of such tax, and the amount of the estimated
tax which would be distributable to each such district in such
next ensuing calendar year on the basis of the last percentage
distribution certified by the commissioner of revenue. If there
be no such prior certification, the taxpayer shall set forth its
estimate of the proper distribution of such tax under the law,
which estimate may be corrected by the commissioner on deeming
it improper, notice of such correction being given by the
commissioner to the taxpayer and the public officers receiving
such estimate. The officers with whom such report is so filed
shall use the amount so indicated as being distributable to each
taxing district in computing, pursuant to section 275.11, the
permissible tax levy of such city in the year in which such
estimate is made, and payable in the next ensuing calendar
year. Such taxpayer shall then pay, at the times payments are
required to be made pursuant to section 298.36, as the amount of
tax payable under section 298.35, the greater of (a) the amount
shown by such estimate, or (b) the amount due under said section
as finally determined by the commissioner of revenue pursuant to
law. If, as a result of the payment of the amount of such
estimate, the taxpayer has paid in any calendar year an amount
of tax in excess of the amount due in such year under section
298.35, after application of credits for any excess payments
made in previous years, all as determined by the commissioner of
revenue, the taxpayer shall be given credit for such excess
amount against any taxes which, under said section, may become
due from the taxpayer in subsequent years. In any calendar year
in which a general property tax levy subject to chapter 124 or
124A or section 275.11 or 275.125 has been made, if the taxes
distributable to any such city or school district are greater
than the amount estimated to be paid to any such city or school
district in such year, the excess of such distribution shall be
held in a special fund by the city or school district and shall
not be expended until the succeeding calendar year, and shall be
included in computing the permissible levies under chapter 124
or 124A or section 275.11 or 275.125 of such city or school
district payable in such year. If the amounts distributable to
any such city or school district, after final determination by
the commissioner of revenue under this section are less than the
amounts indicated by such estimates, such city or school
district 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 chapters 124 and 124A and sections 275.11 and
section 275.125 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 appropriated to such taxing districts as
are stated herein, from any fund or account in the state
treasury to which the money was credited, an amount sufficient
to make the payment or transfer.
Sec. 24. Minnesota Statutes 1988, section 298.396, is
amended to read:
298.396 [DISTRIBUTION OF PROCEEDS.]
The proceeds of the tax collected under section 298.393
shall be distributed by the state treasurer, upon certificate of
the commissioner to the general fund of the state and to the
various taxing districts in which the agglomerating facility is
located in the following proportions: 22 percent thereof to the
city or town; 50 percent thereof to the school district; 22
percent thereof to the county; 6 percent thereof to the state.
If the agglomerating facility is located in more than one tax
district, the commissioner shall apportion equitably the
proceeds of the part of the tax going to cities or towns among
such subdivisions, and the part going to school districts among
such districts, and the part going to counties among such
counties, giving due consideration to the relative extent of the
facilities located in each such taxing district. The
commissioner's 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. The amount to be distributed among the
several taxing districts of the state shall be divided by such
districts among the funds of such districts in the same
proportion as the general ad valorem tax thereof. The amount
distributed to any city shall be included in computing the
permissible amount of the levies of such city under section
275.11, but shall not be included in computing tax capacity rate
limitations, including cost of living adjustments thereof, so
long as the levies do not exceed the limitations provided by
section 275.11.
Sec. 25. Minnesota Statutes 1988, section 353A.10,
subdivision 3, is amended to read:
Subd. 3. [LEVY AND BONDING AUTHORITY.] A municipality in
which was located a local police or firefighters relief
association that has consolidated with the fund may issue
general obligation bonds of the municipality to defray all or a
portion of the principal amounts specified in section 353A.09,
subdivisions 2 to 6, or certify to the county auditor an
additional special a levy in the amount necessary to defray all
or a portion of the principal amount specified in section
353A.09, subdivisions 2 to 6, or the annual amount specified in
section 353A.09, subdivisions 2 to 6. The municipality may
pledge the full faith, credit, and taxing power of the
municipality for the payment of the principal of and interest on
the general obligation bonds. Notwithstanding any law to the
contrary, any additional special levy may not be included in any
limitation concerning rate or amount established by charter or
law and must be a special levy for the purposes of section
275.50, subdivision 5, clause (o), and Any municipal bond may be
issued without an election under section 475.58 and may not be
included in the net debt of the municipality for purposes of any
charter or statutory debt limitation, nor may any tax levy for
the payment of bond principal or interest be subject to any
limitation concerning rate or amount established by charter or
law.
Sec. 26. Minnesota Statutes 1988, 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
section 275.11.
Sec. 27. Minnesota Statutes 1989 Supplement, section
373.40, subdivision 6, is amended to read:
Subd. 6. [BUILDING FUND LEVY.] (a) If a county other than
Hennepin or Ramsey has an approved capital improvement plan, the
county board may annually levy 0.05367 percent of taxable market
value, less the amount levied to pay principal and interest on
bonds issued under this section. If the Hennepin county board
has an approved capital improvement plan, the county board may
annually levy 0.02684 percent of taxable market value, less the
amount levied to pay principal and interest on bonds issued
under this section. If the Ramsey county board has an approved
capital improvement plan, the county board may annually levy
0.06455 percent of taxable market value, less the amount levied
to pay principal and interest on bonds issued under this
section. The proceeds of this levy must be deposited in the
county building fund under section 373.25 and may only be
expended for capital improvements as provided in the approved
capital improvement plan.
(b) The maximum amount of the levy, when added to the
unexpended balance in the building fund, must not exceed the
projected cost of the remaining improvements in the capital
improvement plan. A levy made under this section is not subject
to any other levy limitation, nor may the levy be included in
the computation of any other levy limitation.
(c) This subdivision and the exercise of levy authority
under it does not supersede or preempt the authority to levy
under section 373.25 or any other law.
Sec. 28. Minnesota Statutes 1989 Supplement, section
412.251, is amended to read:
412.251 [ANNUAL TAX LEVY.]
The council shall make its annual tax levy by resolution
within the per capita limits established by statute. The amount
of taxes levied for general city purposes shall not exceed
0.28207 percent of taxable market value in cities having a
taxable market value of less than $6,200,000 and 0.24177 percent
of taxable market value in cities having a taxable market value
of more than $6,200,000. The following taxes may be levied in
addition to the levies above as authorized:
(1) a tax for the payment of principal and interest on
outstanding obligations of the city as provided by sections
475.61, 475.73, and 475.74;
(2) a tax for the payment of judgments as authorized by
section 465.14;
(3) a maximum of 0.00805 percent of taxable market value
but not to exceed $500 to provide musical entertainment to the
public in public buildings or on public grounds;
(4) a tax for band purposes as authorized by section
449.09;
(5) a tax for the support of a municipal forest, as
authorized by section 459.06;
(6) a tax for advertising purposes, as authorized by
section 469.189;
(7) a tax for forest fire protection in any city in a
forest area, as authorized by section 88.04;
(8) a maximum of 0.04030 percent of taxable market value
for the utilities fund in any city whose utilities are under the
jurisdiction of a public utilities commission. The tax shall be
levied for the purpose of paying the cost of the utility service
or other services supplied to the city;
(9) a tax for the support of a public library, as
authorized by section 134.07;
(10) a tax for firefighters' relief association purposes as
authorized by sections 69.772, subdivision 4, 69.773,
subdivision 5, or other statutes; and
(11) other special taxes authorized by law.
Nothing in this section shall be construed to reduce levies
of any municipality below the per capita levy spread in 1970.
Sec. 29. Minnesota Statutes 1988, section 414.01,
subdivision 15, is amended to read:
Subd. 15. When a board order enlarges an existing
municipality or creates a new municipality, the board may
indicate in its order the estimated increased costs to the
municipality as the result of the boundary adjustment, and the
time period that the municipality would be allowed a special
levy for these increased costs pursuant to section 275.50,
subdivision 5.
Sec. 30. Minnesota Statutes 1989 Supplement, section
426.04, is amended to read:
426.04 [TAXES FOR GENERAL PURPOSES.]
The governing body of any home rule charter city of the
third or fourth class in this state may levy taxes for all
general fund purposes, not exceeding 0.32237 percent of taxable
market value unless the charter of the city authorizes it to
levy taxes for general fund purposes in excess of that amount.
This section does not apply to a third class city which is
contiguous to a city of the first class located in a different
county or to a fourth class city in a county containing a first
class city.
Sec. 31. Minnesota Statutes 1988, section 444.075,
subdivision 4, is amended to read:
Subd. 4. [LEVY ASSESSMENTS.] The governing body of a
municipality or county may also levy assessments against
property within the municipal or county limits benefited by the
facilities under the procedure authorized by law or charter with
reference to other assessments for benefits of local
improvements, may transfer and use for the purposes hereof
surplus funds of the municipality or county not specifically
dedicated to another purpose, and may levy taxes on property
within the municipal or county limits for the purposes within
the limitations of section 275.11; except that of the taxes
levied, including taxes initially levied under section 475.61
for the payment of the principal and interest on the bonds
issued, an amount equal to 35 percent of the total cost of the
construction, reconstruction, repair, enlargement, improvement,
or other obtainment of the facilities, plus an amount sufficient
to pay the interest on the bonds issued in an amount equal to 35
percent of the total cost of the construction, reconstruction,
repair, enlargement, improvement, or other obtainment of any the
facilities, shall not be included in computing the levies
subject to the limitations of section 275.11. A municipality or
county may contract with any person, company or corporation for
the purposes and under the restrictions set forth in subdivision
5. The contract shall be binding upon the parties to it for the
full term agreed upon but in no event more than 30 years, and
shall not be changed by either party without the consent of the
other party.
Sec. 32. Minnesota Statutes 1988, section 447.34,
subdivision 1, is amended to read:
Subdivision 1. [EXPENSES PAID FROM REVENUE, TAXES, AND
APPROPRIATIONS; TAX LIMITS.] Expenses of acquiring, improving,
and running hospital and nursing home facilities operated by a
hospital district, expenses incurred under section 447.331,
subdivision 1, and expenses of organization and administration
of the district and of planning and financing the facilities,
must be paid from the revenues derived from them, and to the
extent necessary, from ad valorem taxes levied by the hospital
board on all taxable property within the district, and, to the
extent determined from time to time by the board of county
commissioners of any county containing territory of the
district, from appropriations made by the county board in
accordance with section 376.08. Money appropriated by the board
of county commissioners to acquire or improve facilities of the
hospital district may be transferred in the discretion of the
hospital board to a sinking fund for bonds issued for that
purpose. The hospital board may agree to repay to the county
any sums appropriated by the board of county commissioners for
this purpose, out of the net revenues to be derived from
operation of its facilities, and subject to the terms agreed on.
Taxes levied by a hospital district in any year, other than
taxes levied for payment of bonded indebtedness, must not exceed
$1.50 per capita of the population of the district according to
the last federal census, if the amount proposed to be levied in
excess of that amount, when added to the levy subject to the
limitations of section 275.11, of any of the municipalities
within the district, would cause the municipal levy to exceed
the limitations of that section.
Sec. 33. Minnesota Statutes 1988, section 447.35, is
amended to read:
447.35 [BONDS.]
A hospital district may borrow money by the issuance of its
general obligation bonds:
(1) to acquire and better hospital and nursing home
facilities including the provision of an adequate working
capital for a new hospital or nursing home;
(2) for ambulances and related equipment;
(3) for refunding its outstanding bonds; and
(4) for funding valid outstanding orders.
Bonds must be issued by the procedure and subject to the
limitations and conditions in chapter 475 for the issuance of
bonds by municipalities. Except for revenue bonds issued under
sections 447.45 to 447.50, no bonds of a hospital district are
excluded from its net debt by virtue of section 475.51,
subdivision 4, clause (5). Except as authorized by special law,
the taxes initially levied by any district in accordance with
section 475.61, for the payment of its bonds, upon property
within each municipality included in the hospital district, must
be included in computing the limitations upon the levy of the
municipality under section 275.11, as the case may be; but
nothing here limits the taxes required by section 475.74, to be
levied by the district for payment of any deficiency in its bond
sinking funds. If the tax required by section 475.61 to be
levied for any year of the term of a bond issue upon property
within any municipality included in the district would, when
added to the taxes levied by the municipality for all purposes
in the year before the issue, exceed the limitations prescribed
in section 275.11, the bonds must not be issued without the
consent by resolution of the governing body. An election is
required before the issuance of all bonds except funding or
refunding bonds. The proposition submitted at the election must
be whether the hospital board shall be authorized to issue bonds
of the district in a specified maximum amount, for the purpose
of financing the acquisition and betterment of hospital and
nursing home facilities, or of facilities of other stated types
if it is not proposed to use the bond proceeds for hospital and
nursing home facilities. Bonds issued by a hospital district do
not constitute indebtedness for any purpose of any county, city,
or town whose territory is included in the district.
Sec. 34. Minnesota Statutes 1988, section 465.73, is
amended to read:
465.73 [TOWN HALLS; FIRE HALLS OR EQUIPMENT; DIRECT LOANS
TO POLITICAL SUBDIVISIONS.]
For purposes of constructing or acquiring town halls, fire
halls or fire equipment any city, county or town may borrow up
to $100,000 directly from the Farmers Home Administration on a
note secured by a mortgage on the real or personal property
purchased with the borrowed funds. The city, county or town may
assign revenues from the town halls, fire department or fire
hall or any other available funds to the Farmers Home
Administration to repay the loan. When the full faith and
credit of the city, county or town is irrevocably pledged for
the redemption of the note and mortgage, the taxes levied to pay
principal and interest thereon shall be considered special
levies within the meaning of section 275.50, subdivision 5,
clause (j). The amount of the obligation shall be included when
computing the net debt of the city or county but not the town.
Unless expressly provided otherwise in the mortgage instrument,
when a city, county or town borrows on a mortgage and fails to
repay all or a part of the mortgage, the agency is confined to
the remedy of recovery of the property purchased with the
borrowed funds. An election shall be required to authorize the
note and mortgage unless the agency is confined to the remedy of
recovery of the property.
Sec. 35. Minnesota Statutes 1989 Supplement, section
469.033, subdivision 6, is amended to read:
Subd. 6. [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.]
All of the territory included within the area of operation of
any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in
this subdivision. All of the taxable property, both real and
personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied
under this subdivision. Subject to the consent by resolution of
the governing body of the city in and for which it was created,
an authority may levy each year a tax upon all taxable property
within that taxing district. The authority shall certify the
tax to the auditor of the county in which the taxing district is
located on or before October 10 each year. The tax shall be
extended, spread, and included with and as a part of the general
taxes for state, county, and municipal purposes by the county
auditor, to be collected and enforced therewith, together with
the penalty, interest, and costs. As the tax, including any
penalties, interest, and costs, is collected by the county
treasurer it shall be accumulated and kept in a separate fund to
be known as the "housing and redevelopment project fund." The
money in the fund shall be turned over to the authority at the
same time and in the same manner that the tax collections for
the city are turned over to the city, and shall be expended only
for the purposes of sections 469.001 to 469.047. It shall be
paid out upon vouchers signed by the chair of the authority or
an authorized representative. The amount of the levy shall be
an amount approved by the governing body of the city, but shall
not exceed .0081 .0131 percent of taxable market value except
that in cities of the first class having a population of less
than 200,000, the levy shall not exceed .00403 .0065 percent of
taxable market value. The authority may levy an additional
levy, not to exceed .0008 .0013 percent of taxable market value,
to be used to defray costs of providing informational service
and relocation assistance as set forth in section 462.445,
subdivision 4. The authority shall each year formulate and file
a budget in accordance with the budget procedure of the city in
the same manner as required of executive departments of the city
or, if no budgets are required to be filed, by August 1. The
amount of the tax levy for the following year shall be based on
that budget and shall be approved by the governing body.
Sec. 36. Minnesota Statutes 1989 Supplement, section
471.1921, is amended to read:
471.1921 [CITIES AND TOWNS; PLAYGROUNDS AND RECREATION; TAX
LEVY.]
Whenever any city or town in which the net tax capacity
consists in part of iron ore or lands containing taconite or
semitaconite operates a program of public recreation and
playgrounds or other recreational facilities and expends funds
for the operation of the program pursuant to sections 471.15 to
471.19, in addition to funds otherwise provided therefor, the
governing body of the city or town may levy a tax in excess of
any charter or statutory limitation, except the limitation
imposed in sections 275.50 to 275.58, for the support of this
program of public recreation and playgrounds as follows:
(1) in cities the council or governing body may levy a tax
not exceeding the lesser of (i) 0.00537 percent of taxable
market value; (ii) $3 per capita; or (iii) $15,000; and
(2) in towns the governing body may levy a tax not
exceeding the lesser of (i) 0.00537 percent of taxable market
value; or (ii) $10,000.
Sec. 37. Minnesota Statutes 1988, section 471.572,
subdivision 2, is amended to read:
Subd. 2. [TAX LEVY.] The governing body of a city may
establish, by a two-thirds vote of all its members, by ordinance
or resolution a reserve fund and may annually levy a property
tax for the support of the fund. The proceeds of taxes levied
for its support must be paid into the reserve fund. Any other
revenue from a source not required by law to be paid into
another fund for purposes other than those provided for the use
of the reserve fund may be paid into the fund. A tax levied by
the city in accordance with this section is a special levy
within the meaning of section 275.50, subdivision 5. Before a
tax is levied under this section, the city must publish in the
official newspaper of the city an initial resolution authorizing
the tax levy. If within ten days after the publication a
petition is filed with the city clerk requesting an election on
the tax levy signed by a number of qualified voters greater than
ten percent of the number who voted in the city at the last
general election, the tax may not be levied until the levy has
been approved by a majority of the votes cast on it at a regular
or special election.
Sec. 38. Minnesota Statutes 1988, section 471.74,
subdivision 2, is amended to read:
Subd. 2. The governing body of any municipality issuing
bonds under sections 471.71 to 471.83 shall, at the time of the
issuance thereof, by resolution, provide for a levy of taxes for
the payment thereof, such levy to be in accordance with the
provisions of chapter 475. Levies for the payment of these
bonds shall be within the limitations upon tax levies for the
payment of funding bonds in the particular municipality issuing
the bonds. Such levies shall be subject to the provisions of
sections 275.11 and section 275.125, to the extent that these
sections are applicable this section applies to the municipality
issuing such bonds. In all cases the levies for these bonds
shall be spread by the county auditor in full and the levy of
the municipality for other purposes shall be reduced, if
necessary, so that the total amount levied for the municipality
does not exceed said limitations.
Sec. 39. Minnesota Statutes 1988, section 471A.03,
subdivision 4, is amended to read:
Subd. 4. [SOURCES OF PAYMENT; COLLECTION PROCEDURE.] (a)
For the payment of a service fee or other monetary obligation
under an existing service contract or in anticipation of need
under a future service contract, the municipality may:
(1) levy property taxes, impose rates and charges, levy
special assessments, and exercise any other revenue producing
authority granted to it and apply public funds for the payment
of the service fee and any other monetary obligations under the
service contract in the same manner, and subject to the same
conditions and limitations, except as provided in section
471A.04, that would apply if the related facilities were
acquired, constructed, owned, and operated exclusively by the
municipality; and
(2) establish by ordinance, revise when considered
advisable, and collect just and reasonable rates and charges for
the capital intensive public services provided under the service
contract. The ordinance may obligate the owners, lessees, or
occupants of property, or any or all of them, to pay charges for
the capital intensive public services available for their
properties and may obligate the user of a related facility to
pay a reasonable charge for the use of the related facility.
Rates and charges may take into account the character, kind, and
quality of the capital intensive public service and all other
factors that enter into the cost of the capital intensive public
service, including but not limited to the service fee payable
with respect to it, depreciation, and payment of principal and
interest on money borrowed for the acquisition or betterment of
related facilities.
(b) The rates and charges may be billed and collected in a
manner the municipality shall determine consistent with this
paragraph and other applicable law. On or before October 15 in
each year, the municipality shall certify to the county auditor
all unpaid outstanding charges for services provided under the
service contract and a statement of the description of the lands
against which the charges arose. It is the duty of the county
auditor, upon order of the governing body of the municipality,
to extend the rates and charges with interest as provided for by
ordinance upon the tax rolls of the county for the taxes of the
year in which the rate or charge is filed. For each year ending
October 15 the rates and charges with interest shall be carried
into the tax becoming due and payable in January of the
following year, and shall be enforced and collected in the
manner provided for the enforcement and collection of real
property taxes in accordance with the provisions of the laws of
the state. The rates and charges, if not paid, shall become
delinquent and be subject to the same penalties and the same
rate of interest as the taxes under the general laws of the
state. All rates and charges shall be uniform in their
application to use and service of the same character or quantity.
(c) An ordinance establishing rates and charges shall also
establish a procedure by which a person obligated to pay the
rates and charges may, each year at a public hearing held before
August 1 of each year, protest the payment of the rates and
charges on the grounds that services to be provided under the
service contract are not available to the person. The services
shall be deemed available for the property of the person if the
vendor agrees, and the related facilities have the capacity, to
provide the services to the person as soon as the municipality
or any other entity provides the property of the person with
access to the services. Notice of the hearing shall be
published at least 30 days prior to the hearing in an official
newspaper in general circulation in the municipality. A person
protesting the assessment of rates and charges under this
paragraph shall file the objection in writing with the
municipality at least five days prior to the hearing. Within
ten days after the hearing, the municipality shall determine
whether the rates and charges were properly assessed. A person
protesting the assessment of rates and charges may appeal the
assessment, and a private vendor may appeal a reduction in rates
and charges for any person, to the district court in the same
manner as appeal of other civil cases. Rates and charges
erroneously collected shall be refunded with the same rate of
interest as taxes refunded with interest under the general laws
of this state.
(d) A public hearing on the proposed ordinance shall be
held prior to the meeting at which it is to be considered by the
governing body of the municipality and after notice of the
hearing has been published in the official newspaper of the
municipality not less than ten days prior to the hearing. The
notice shall state the subject matter and the general purpose of
the proposed ordinance.
Sec. 40. Minnesota Statutes 1988, section 473.87, is
amended to read:
473.87 [EXEMPTION FROM LEVY LIMIT FOR INCREASED COSTS.]
Subdivision 1. The increased costs to a municipality of
implementing sections 473.175; 473.858, subdivisions 1 to 3;
473.859 to 473.862; and 473.866 shall be deemed a special levy
under section 275.50, subdivision 5.
Subd. 2. and the proceeds of any tax levied under this
section shall be deposited in the municipal treasury in a
separate fund and expended only for the purposes authorized by
this section.
Sec. 41. Minnesota Statutes 1989 Supplement, section
473.882, subdivision 3, is amended to read:
Subd. 3. [TAX.] After adoption of the ordinance under
subdivision 2, a local government unit may annually levy a tax
on all taxable property in the district for the purposes for
which the tax district is established. The tax may not exceed
0.02418 percent of market value on taxable property located in
rural towns other than urban towns, unless allowed by resolution
of the town electors. The proceeds of the tax shall be paid
into a fund reserved for these purposes. Any proceeds remaining
in the reserve fund at the time the tax is terminated or the
district is dissolved shall be transferred and irrevocably
pledged to the debt service fund of the local unit to be used
solely to reduce tax levies for bonded indebtedness of taxable
property in the district. A tax levied in accordance with this
subdivision for paying capital costs is a levy for the payment
of principal and interest on bonded indebtedness within the
meaning of section 275.50, subdivision 5, clause (e).
Sec. 42. Minnesota Statutes 1988, section 473F.08,
subdivision 3a, is amended to read:
Subd. 3a. Beginning in 1987 and each subsequent year
through 1998, the city of Bloomington shall determine the
interest payments for that year for the bonds which have been
sold for the highway improvements pursuant to Laws 1986, chapter
391, section 2, paragraph (g). Effective for property taxes
payable in 1988 through property taxes payable in 1999, after
the Hennepin county auditor has computed the areawide portion of
the levy for the city of Bloomington pursuant to subdivision 3,
clause (a), the auditor shall annually add a dollar amount to
the city of Bloomington's areawide portion of the levy equal to
the amount which has been certified to the auditor by the city
of Bloomington for the interest payments for that year for the
bonds which were sold for highway improvements. The total
areawide portion of the levy for the city of Bloomington
including the additional amount for interest repayment certified
pursuant to this subdivision shall be certified by the Hennepin
county auditor to the administrative auditor pursuant to
subdivision 5. The Hennepin county auditor shall distribute to
the city of Bloomington the additional areawide portion of the
levy computed pursuant to this subdivision at the same time that
payments are made to the other counties pursuant to subdivision
7a. This additional areawide portion of the levy which is
distributed to the city of Bloomington shall be exempt from the
city's levy limit provisions contained in sections 275.50 to
275.56. For property taxes payable from the year 2000 through
2009, the Hennepin county auditor shall adjust Bloomington's
contribution to the areawide gross tax capacity upward each year
by a value equal to ten percent of the total additional areawide
levy distributed to Bloomington under this subdivision from 1988
to 1999, divided by the areawide tax capacity rate for taxes
payable in the previous year.
Sec. 43. Minnesota Statutes 1988, section 475.74, is
amended to read:
475.74 [PER CAPITA LIMITATION NOT APPLICABLE.]
The provisions of any law limiting taxes on a per capita
basis or otherwise shall not limit the power of any city of the
first or second class or any independent school district in any
city of the first class, or any special school district in a
city of the second class having a population of not less than
28,000 nor more than 32,000 according to the 1950 federal
census, to levy taxes to pay its general obligation bonds nor
shall such provisions limit the power of any municipality to
levy taxes to make good any deficiency in any prior levies made
pursuant to section 475.61. The governing body shall levy such
taxes without limitation as to rate or amount.
Sec. 44. Minnesota Statutes 1988, section 475.754, is
amended to read:
475.754 [DISASTERS OR PUBLIC EMERGENCIES, CERTIFICATES OF
INDEBTEDNESS.]
If in any fiscal year the receipts from taxes or other
sources are insufficient to meet the expenses incurred or to be
incurred in said year by any city however organized, county or
town by reason of any natural disaster or other public emergency
requiring the making of extraordinary expenditures, the
governing body of any such city, county or town may authorize
the sale of certificates of indebtedness to mature within three
years and to bear interest at a rate not to exceed the amount
prescribed in this chapter. The certificates may be issued with
or without advertising for bids on such terms and conditions as
the governing body may determine and shall be in such form as
the state auditor in cooperation with the commissioner of
commerce shall prescribe. All certificates and interest thereon
shall be payable from taxes levied within existing limitations
or from other available revenue. Certificates of indebtedness
issued under the provisions of this section shall not be
considered bonded indebtedness for the purposes of section
275.50, subdivision 5, clause (h). The certificates shall not
be included in the net debt of the issuing city, county or town.
Sec. 45. Laws 1976, chapter 162, section 1, as amended by
Laws 1982, chapter 474, section 1, and Laws 1983, chapter 338,
section 1, is amended to read:
Section 1. [RED RIVER WATERSHED; TAX BY WATERSHED
DISTRICTS.]
Each watershed district located within the counties of
Kittson, Marshall, Polk, Pennington, Red Lake, Norman, Clay,
Mahnomen, Clearwater, Roseau, Wilkin, Otter Tail, Becker,
Koochiching, Beltrami, and Itasca, which district is a member of
the lower Red River watershed management board, established by a
joint powers agreement in accordance with Minnesota Statutes,
Section 471.59, may levy an ad valorem tax not to exceed two
mills on each dollar of assessed valuation of all
taxable 0.04836 percent of the taxable market value of all
property within the district. This levy shall be in excess of
any levy authorized by Minnesota Statutes, Section 112.61. The
proceeds of one-half of this levy shall be credited to the
district's administrative fund and shall be used for the
construction and maintenance of projects of common benefit to
the district. The proceeds of the remaining one-half of this
levy shall be credited to the construction fund of the lower Red
River watershed management board and shall be used for the
construction and maintenance of projects of common benefit.
Sec. 46. Laws 1986, chapter 399, article 1, section 1, is
amended to read:
Section 1. [AITKIN COUNTY; DEVELOPMENT LEVY.]
The Aitkin county board may annually levy a tax of not more
than one and one third mills 0.03224 percent of market value on
taxable property in the county, to provide funds to be used by
the county for tourist, agricultural, industrial, and economic
development. A levy under this section is in addition to any
other permitted by law and shall be disregarded in the
calculation of any other levies or limits on levies provided by
Minnesota Statutes, sections 275.50 to 275.56 or other law.
For 1989 and 1990 only, the annual appropriation limitation
in Minnesota Statutes, section 375.83 is increased to $100,000
for Aitkin county only.
Sec. 47. Laws 1989, chapter 335, article 3, section 54,
subdivision 8, is amended to read:
Subd. 8. [LEVY.] During the pilot project the counties
that make up the eighth judicial district shall continue to levy
for and pay the costs to operate the eighth judicial district
and public defense services that the state does not fund during
the eighth district project. The supreme court shall certify to
the counties on or before October 1 of each year the amount
necessary in excess of the state-funded eighth district project
costs. The counties are responsible on a per capita prorated
basis for the costs that the state is not assuming. These
include but are not limited to capital costs, rent, and other
associated costs. The county administrator of each of the
counties shall consult with the supreme court and the eighth
judicial district administrator regarding these costs before
setting county budgets and levies for calendar year 1990.
Sec. 48. Laws 1989, chapter 335, article 3, section 58, as
amended by Laws 1989, chapter 356, section 67, is amended to
read:
Sec. 58. [EFFECTIVE DATES.]
Subdivision 1. [JANUARY 1, 1992; EXCEPTIONS.] (a) In all
judicial districts except the eighth, sections 1, 2, 3, 4, 5,
14, 17, 18, 19, 20, 21, and 26, are effective January 1, 1992;
except that these sections are effective to make affected
district administration staff, other than district
administration staff in the second and fourth judicial
districts, state employees on July 1, 1990, and law clerks state
employees October 1, 1990.
(b) The sections listed in paragraph (a) are effective
January 1, 1990, for all court employees in the eighth judicial
district including court administrators and staff.
(c) Section 1 is effective July 1, 1989, for guardians ad
litem.
Subd. 2. [JULY 1, 1990, OUTSIDE 8TH.] (a) Except as
provided in paragraph (b) and subdivision 3, in all judicial
districts except the eighth, sections 6, 8, 13, 15, 22, 23, 30,
31, 32, 33, 34, 35, 36, 37, 38, and 56, are effective July 1,
1990.
(b) For all judicial districts, section 6 is effective July
1, 1989, with respect to the increase in fees under section 7.
For all judicial districts, sections 7 and 11 are effective July
1, 1989.
(c) Except as otherwise provided in this section, section 6
is effective for counties in the eighth judicial district on
January 1, 1990.
Subd. 3. [JANUARY 1, 1991; ALL DISTRICTS.] That portion of
section 6 which amends the first sentence of Minnesota Statutes
1989 Supplement, section 357.021, subdivision 1a, requiring
counties to pay filing fees in district court actions is
effective January 1, 1991, for counties in all judicial
districts.
Sec. 49. [ITASCA COUNTY; LEVY LIMIT PENALTY EXEMPTION.]
The amount of any tax levied by Itasca county under Laws
1988, chapter 517, is not subject to a penalty imposed under
Minnesota Statutes, section 275.51, subdivision 4, for exceeding
levy limits under Minnesota Statutes, sections 275.50 to 275.56.
Sec. 50. [LEVY LIMIT EXCEPTION.]
For taxes levied in 1989 and 1990 only, payable in 1990 and
1991 only, a levy by the Itasca county board under Laws 1988,
chapter 517, is not subject to the levy limitations of Minnesota
Statutes, sections 275.50 to 275.56, or other law.
Sec. 51. [REPEALER.]
Minnesota Statutes 1988, sections 134.34, subdivision 6;
275.11; 275.50; 275.51; 275.54; 275.55; 275.56; 275.561; 275.58;
and 471A.04, are repealed.
Sec. 52. [EFFECTIVE DATE.]
Except as otherwise provided, sections 12 to 19, 27, 35,
45, and 47 are effective for taxes levied in 1989, payable in
1990 and subsequent years. Section 49 is effective upon
approval by the Itasca county board for taxes levied in 1988,
payable in 1989 only. Sections 1, 5, 6, 20, 31, 34, 41, 44, and
51 are effective for taxes levied by cities and towns in 1991,
payable in 1992 and thereafter, and for taxes levied by counties
in 1992, payable in 1993 and thereafter. Sections 2, 4, 7, 9 to
11, 21 to 26, 28 to 30, 32, 33, 36 to 40, 42, and 43 are
effective for taxes levied in 1991, payable in 1992 and
thereafter. Sections 3 and 8 are effective for taxes levied in
1992, payable in 1993 and thereafter. Section 50 is effective
for taxes payable in 1989 and 1990 only.
ARTICLE 6
EDUCATION
Section 1. Minnesota Statutes 1989 Supplement, section
121.904, subdivision 4a, is amended to read:
Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax
settlement revenue" means the current, delinquent, and
manufactured home property tax receipts collected by the county
and distributed to the school district, including distributions
made pursuant to section 279.37, subdivision 7, and excluding
the amount levied pursuant to sections 124.2721, subdivision 3;
124.575, subdivision 3; and 275.125, subdivision 9a; and Laws
1976, chapter 20, section 4.
(b) In June of each year, the school district shall
recognize as revenue, in the fund for which the levy was made,
the lesser of:
(1) the June and July school district tax settlement
revenue received in that calendar year; or
(2) the sum of the state aids and credits enumerated in
section 124.155, subdivision 2, which are for the fiscal year
payable in that fiscal year plus 27.8 31.0 percent of the amount
of the levy certified in the prior calendar year according to
section 124A.03, subdivision 2, plus or minus auditor's
adjustments, not including levy portions that are assumed by the
state; or
(3) 27.8 31 percent of the amount of the levy certified in
the prior calendar year, plus or minus auditor's adjustments,
not including levy portions that are assumed by the state, which
remains after subtracting, by fund, the amounts levied for the
following purposes:
(i) reducing or eliminating projected deficits in the
reserved fund balance accounts for unemployment insurance and
bus purchases;
(ii) statutory operating debt pursuant to section 275.125,
subdivision 9a, and Laws 1976, chapter 20, section 4; and
(iii) retirement and severance pay pursuant to sections
124.4945 and 275.125, subdivision 6a, and Laws 1975, chapter
261, section 4; and
(iv) amounts levied for bonds issued and interest thereon,
amounts levied for debt service loans and capital loans, amounts
levied for down payments under section 124.82, subdivision 3,
amounts levied for education district bonds under section
122.96, subdivision 5, and amounts levied pursuant to section
275.125, subdivision 14a.
(c) In July of each year, the school district shall
recognize as revenue that portion of the school district tax
settlement revenue received in that calendar year and not
recognized as revenue for the previous fiscal year pursuant to
clause (b).
(d) All other school district tax settlement revenue shall
be recognized as revenue in the fiscal year of the settlement.
Portions of the school district levy assumed by the state,
including prior year adjustments and the amount to fund the
school portion of the reimbursement made pursuant to section
273.425, shall be recognized as revenue in the fiscal year
beginning in the calendar year for which the levy is payable.
Sec. 2. Minnesota Statutes 1989 Supplement, section
121.904, subdivision 4e, is amended to read:
Subd. 4e. [COOPERATION LEVY RECOGNITION.] (a) A
cooperative district is a district or cooperative that receives
revenue according to section 124.2721 or 124.575.
(b) In June of each year, the cooperative district shall
recognize as revenue, in the fund for which the levy was made,
the lesser of:
(1) the sum of the state aids and credits enumerated in
section 124.155, subdivision 2, that are for the fiscal year
payable in that fiscal year; or
(2) 27.8 31.0 percent of the difference between
(i) the sum of the amount of levies certified in the prior
year according to sections 124.2721, subdivision 3, and 124.575,
subdivision 3; and
(ii) the amount of transition aid paid to the cooperative
unit according to section 273.1392 for the fiscal year to which
the levy is attributable.
Sec. 3. Minnesota Statutes 1989 Supplement, section
124.243, subdivision 3, is amended to read:
Subd. 3. [CAPITAL EXPENDITURE FACILITIES LEVY.] To obtain
capital expenditure facilities revenue, a district may levy an
amount not to exceed the capital expenditure facilities revenue
determined in subdivision 2 multiplied by the lesser of one, or
the ratio of:
(1) the quotient derived by dividing the adjusted gross net
tax capacity of the district for the year preceding the year the
levy is certified by the actual pupil units in the district for
the school year to which the levy is attributable, to
(2) 70 100 percent of the equalizing factor for the school
year to which the levy is attributable.
Sec. 4. Minnesota Statutes 1989 Supplement, section
124.244, subdivision 2, is amended to read:
Subd. 2. [CAPITAL EXPENDITURE EQUIPMENT LEVY.] To obtain
capital expenditure equipment revenue, a district may levy an
amount not to exceed the district's capital expenditure
equipment revenue as determined in subdivision 1 multiplied by
the lesser of one, or the ratio of:
(1) the quotient derived by dividing the adjusted gross net
tax capacity of the district for the year preceding the year the
levy is certified by the actual pupil units in the district for
the school year to which the levy is attributable, to
(2) 70 100 percent of the equalizing factor for the school
year to which the levy is attributable.
Sec. 5. [124.2442] [CAPITAL EXPENDITURE PRORATION.]
Subdivision 1. [INSUFFICIENT FUNDS.] If the total
appropriation for capital expenditure equipment aid or capital
expenditure facilities aid for any fiscal year is insufficient
to pay all districts the full amount of aid earned, the
department of education shall reduce each district's capital
expenditure facilities and equipment revenue according to the
calculations in subdivisions 2 to 4.
Subd. 2. [ALLOWANCE REDUCTION.] If there are insufficient
capital expenditure equipment and facility aid funds, the
department must recompute the capital expenditure equipment and
facility revenue by reducing the formula allowances to the
levels that eliminate the deficiencies. The levy amounts must
not be recomputed.
Subd. 3. [AID REDUCTION.] A district's proration aid
reduction is equal to the lesser of zero, or the difference of
the existing aid calculation minus the aid amount computed under
subdivision 2.
Subd. 4. [LEVY REDUCTION.] If a district's proration aid
reduction is less than its revenue reduction, its capital
expenditure levy authority for the following year must be
reduced by the amount of the difference between its revenue
reduction and its aid reduction.
Sec. 6. Minnesota Statutes 1989 Supplement, section
124.83, subdivision 4, is amended to read:
Subd. 4. [HEALTH AND SAFETY LEVY.] To receive health and
safety revenue, a district may levy an amount equal to the
district's health and safety revenue as defined in subdivision 3
multiplied by the lessor of one, or the ratio of:
(1) the quotient derived by dividing the adjusted gross tax
capacity of the district for the year preceding the year the
levy is certified by the actual pupil units in the district for
the school year to which the levy is attributable, to
(2) 70 percent of the equalizing factor for the school year
to which the levy is attributable $7,128.10.
Sec. 7. Minnesota Statutes 1989 Supplement, section
124A.23, subdivision 1, is amended to read:
Subdivision 1. [GENERAL EDUCATION TAX CAPACITY RATE.] The
general education tax capacity rate for fiscal year 1991 is 26.3
percent. Beginning in 1990, the commissioner of revenue shall
establish the general education tax capacity rate and certify it
to the commissioner of education by September July 1 of each
year for levies payable in the following year. The general
education tax capacity rate shall be a rate, rounded up to the
nearest tenth of a percent, that, when applied to the
adjusted gross net tax capacity for all districts, raises the
amount specified in this subdivision. The general education tax
capacity rate shall be the rate that raises
$1,156,000,000 $845,000,000 for fiscal year 1991 1992
and $1,213,800,000 for subsequent fiscal years. The general
education tax capacity rate certified by the commissioner of
revenue may not be changed due to changes or corrections made to
a district's adjusted gross net tax capacity after the tax
capacity rate has been certified.
Sec. 8. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 2a. [EDUCATION LEVY REDUCTION.] (a) As used in this
subdivision, "equalized levies" means the sum of the maximum
amounts that may be levied for:
(1) general education under section 124A.23, subdivision 2;
(2) supplemental revenue under section 124A.23, subdivision
2a;
(3) capital expenditure facilities revenue under section
124.243, subdivision 3;
(4) capital expenditure equipment revenue under section
124.44, subdivision 2; and
(5) basic transportation under section 275.125, subdivision
5.
(b) By December 1, the commissioner of education shall
determine and certify to the commissioner of revenue the amount
of the education levy reduction. The reduction shall be equal
to the amount by which:
(1) the amount that would have been computed as the
district's total maximum levy for property taxes payable in
1990, if the equalized levies had been based upon the district's
adjusted gross tax capacity, the general education tax capacity
rate had been 29.1 percent, the taconite levy reduction limit
according to section 275.125, subdivision 9, had been 10.22
percent of adjusted gross tax capacity, and the capital
expenditure equipment and facilities levies had been calculated
using 70 percent of the equalizing factor, exceeds
(2) the amount that would have been computed as the
district's total maximum levy for property taxes payable in
1990, if the equalized levies had been based upon the district's
adjusted net tax capacity, the general education tax capacity
rate had been 29.1 percent, the taconite levy reduction limit
according to section 275.125, subdivision 9, had been 10.22
percent of adjusted net tax capacity, and the capital
expenditure equipment and facilities levies had been calculated
using 70 percent of the equalizing factor.
(c) For property taxes payable in 1990, the amount of the
education levy reduction shall be deducted from the homestead
and agricultural credit aid payable to each school district
under subdivision 2.
Homestead and agricultural credit aid shall not be reduced
below zero.
Sec. 9. Minnesota Statutes 1989 Supplement, section
275.125, subdivision 5, is amended to read:
Subd. 5. [BASIC TRANSPORTATION LEVY.] Each year, a school
district may levy for school transportation services an amount
not to exceed the amount raised by the basic transportation tax
capacity rate times the adjusted gross net tax capacity of the
district for the preceding year. The basic transportation tax
capacity rate for fiscal year 1991 is 2.04 percent. Beginning
in 1990, the commissioner of revenue shall establish the basic
transportation tax capacity rate and certify it to the
commissioner of education by September July 1 of each year for
levies payable in the following year. The basic transportation
tax capacity rate shall be a rate, rounded up to the nearest
hundredth of a percent, that, when applied to the adjusted gross
net tax capacity of taxable property for all districts, raises
the amount specified in this subdivision. The basic
transportation tax capacity rate for transportation shall be the
rate that raises $82,063,200 for fiscal year 1991 and
$86,166,400 $66,700,000 for fiscal year 1992 and subsequent
fiscal years. The basic transportation tax capacity rate
certified by the commissioner of revenue must not be changed due
to changes or corrections made to a district's adjusted gross
net tax capacity after the tax capacity rate has been certified.
Sec. 10. Minnesota Statutes 1989 Supplement, section
275.125, subdivision 9, is amended to read:
Subd. 9. [LEVY REDUCTIONS; TACONITE.] (1) Reductions in
levies pursuant to subdivision 10, and section 273.138, shall be
made prior to the reductions in clause (2).
(2) Notwithstanding any other law to the contrary,
districts which received payments pursuant to sections 298.018;
298.23 to 298.28, except an amount distributed under section
298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to
298.39; 298.391 to 298.396; 298.405; and any law imposing a tax
upon severed mineral values, or recognized revenue pursuant to
section 477A.15; shall not include a portion of these aids in
their permissible levies pursuant to those sections, but instead
shall reduce the permissible levies authorized by this section
and chapters 124 and 124A by the greater of the following:
(a) an amount equal to 50 percent of the total dollar
amount of the payments received pursuant to those sections or
revenue recognized pursuant to section 477A.15 in the previous
fiscal year; or
(b) an amount equal to the total dollar amount of the
payments received pursuant to those sections or revenue
recognized pursuant to section 477A.15 in the previous fiscal
year less the product of the same dollar amount of payments or
revenue times the ratio of the maximum levy allowed the district
under Minnesota Statutes 1986, sections 124A.03, subdivision 2,
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10,
subdivision 3a, 124A.12, subdivision 3a, and 124A.14,
subdivision 5a, to the total levy allowed the district under
this section and Minnesota Statutes 1986, sections 124A.03,
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10,
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision
5a, and 124A.20, subdivision 2, for levies certified in 1986.
(3) No reduction pursuant to this subdivision shall reduce
the levy made by the district pursuant to section 124A.23, to an
amount less than the amount raised by a levy of a gross tax
capacity rate of 10.22 percent times the adjusted gross tax
capacity for taxes payable in 1990 or a net tax capacity rate of
12.71 6.82 percent times the adjusted net tax capacity for taxes
payable in 1991 1990 and thereafter of that district for the
preceding year as determined by the commissioner. The amount of
any increased levy authorized by referendum pursuant to section
124A.03, subdivision 2, shall not be reduced pursuant to this
subdivision. The amount of any levy authorized by subdivision
4, to make payments for bonds issued and for interest thereon,
shall not be reduced pursuant to this subdivision.
(4) Before computing the reduction pursuant to this
subdivision of the capital expenditure facilities levy
authorized by section 124.243, the capital expenditure equipment
levy authorized by section 124.244, the health and safety levy
authorized by section 124.83, and subdivision 12a, and the
community education levy authorized by subdivisions 8 and 8b,
the commissioner shall ascertain from each affected school
district the amount it proposes to levy under each section or
subdivision. The reduction shall be computed on the basis of
the amount so ascertained.
(5) Notwithstanding any law to the contrary, any amounts
received by districts in any fiscal year pursuant to sections
298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396;
298.405; or any law imposing a tax on severed mineral values;
and not deducted from general education aid pursuant to section
124A.035, subdivision 5, clause (2), and not applied to reduce
levies pursuant to this subdivision shall be paid by the
district to the St. Louis county auditor in the following amount
by March 15 of each year, the amount required to be subtracted
from the previous fiscal year's general education aid pursuant
to section 124A.035, subdivision 5, which is in excess of the
general education aid earned for that fiscal year. The county
auditor shall deposit any amounts received pursuant to this
clause in the St. Louis county treasury for purposes of paying
the taconite homestead credit as provided in section 273.135.
Sec. 11. Minnesota Statutes 1988, section 275.125,
subdivision 18, is amended to read:
Subd. 18. [NOTICE OF CERTIFIED LEVIES.] By November 1
September 15 of each year each district shall notify the
commissioner of education of the proposed levies certified in
compliance with the levy limitations of this section and chapter
chapters 124 and 124A. By January 15 of each year each district
shall notify the commissioner of education of the final levies
certified. The commissioner of education shall prescribe the
form of this notification these notifications.
Sec. 12. Laws 1989, chapter 329, article 1, section 17,
subdivision 2, is amended to read:
Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For
general and supplemental education aid:
$1,222,815,000 $1,237,064,000 ..... 1990
$1,293,366,000 $1,600,994,000 ..... 1991
The 1990 appropriation includes $174,824,000 for 1989 and
$1,047,991,000 $1,062,240,000 for 1990.
The 1991 appropriation includes $177,889,000 for 1990 and
$1,115,477,000 $1,423,105,000 for 1991.
The 1991 appropriation recognizes an entitlement of
$285,744,000 attributable to homestead and agricultural credit
aid.
Sec. 13. Laws 1989, chapter 329, article 2, section 8,
subdivision 2, is amended to read:
Subd. 2. [TRANSPORTATION AID.] For transportation aid
under Minnesota Statutes, section 124.225:
$91,979,000 ..... 1990
$99,265,000 $114,157,000 ..... 1991
The 1990 appropriation includes $12,773,000 for 1989 and
$79,206,000 for 1990.
The 1991 appropriation includes $13,978,000 for 1990 and
$85,287,000 $100,179,000 for 1991.
The 1991 appropriation recognizes an entitlement of
$20,452,000 attributable to homestead and agricultural credit
aid.
Sec. 14. Laws 1989, chapter 329, article 5, section 21,
subdivision 2, is amended to read:
Subd. 2. [CAPITAL EXPENDITURE FACILITIES AID.] For capital
expenditure facilities aid according to Minnesota Statutes,
section 124.243, subdivision 5:
$33,800,000 ..... 1990
$41,039,000 $67,844,000 ..... 1991
The 1990 appropriation includes $33,800,000 for 1990.
The 1991 appropriation includes $5,965,000 for 1990 and
$35,074,000 $61,879,000 for 1991.
The 1991 appropriation recognizes an entitlement of
$13,957,000 attributable to homestead and agricultural credit
aid.
Sec. 15. Laws 1989, chapter 329, article 5, section 21,
subdivision 3, is amended to read:
Subd. 3. [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital
expenditure equipment aid according to Minnesota Statutes,
section 124.244, subdivision 3:
$16,900,000 ..... 1990
$20,520,000 $33,922,000 ..... 1991
The 1990 appropriation includes $16,900,000 for 1990.
The 1991 appropriation includes $2,983,000 for 1990 and
$17,537,000 $30,939,000 for 1991.
The 1991 appropriation recognizes an entitlement of
$6,978,000 attributable to homestead and agricultural credit aid.
Sec. 16. [CONVERSION OF REFERENDUM LEVIES.]
For a referendum levy authorized under Minnesota Statutes,
section 124A.03, on November 7, 1989, the department of
education shall convert the net tax capacity rate specified on
the ballot to a revised net tax capacity rate by dividing the
approved levy amount by the 1988 net tax capacity of the school
district, as determined by the provisions of this act.
Sec. 17. [NOVEMBER 1989 REFERENDUM LEVY ELECTIONS.]
In 1989, a school board in a district holding a referendum
levy election may not represent to the voters that education
property taxes will be lowered because of the transfer of state
appropriations from cities and townships to education funding.
If this representation is made by the school board, the election
shall be subject to contest under Minnesota Statutes, chapter
209, and the court may invalidate the election results.
Sec. 18. [ADJUSTED GROSS TAX CAPACITY.]
For purposes of computing 1989 payable 1990 school district
levies under Minnesota Statutes, chapters 124 and 124A and
section 275.125, adjusted gross tax capacity means adjusted
gross tax capacity as defined in Minnesota Statutes 1988,
section 273.13.
Sec. 19. [EFFECTIVE DATE.]
Sections 1 to 18 are effective the day following final
enactment.
ARTICLE 7
PROPERTY TAX REFUND AND TARGETING
Section 1. Minnesota Statutes 1988, section 290A.04,
subdivision 2, is amended to read:
Subd. 2. [HOMEOWNERS.] A claimant whose property taxes
payable or rent constituting property taxes are in excess of the
percentage of the household income stated below shall pay an
amount equal to the percent of income shown for the appropriate
household income level along with the percent to be paid by the
claimant of the remaining amount of property taxes payable or
rent constituting property taxes. The state refund will be
equal to equals the amount of property taxes payable or rent
constituting property taxes that remain, up to the state refund
amount shown below.
Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 999 1.0 percent 10 percent $1,100
1,000 to 1,999 1.1 percent 11 percent $1,100
2,000 to 2,999 1.2 percent 12 percent $1,100
3,000 to 3,499 1.3 percent 13 percent $1,100
3,500 to 3,999 1.3 percent 13 percent $1,100
4,000 to 4,499 1.4 percent 14 percent $1,100
4,500 to 4,999 1.4 percent 14 percent $1,100
5,000 to 5,999 1.5 percent 15 percent $1,100
6,000 to 6,999 1.5 percent 16 percent $1,100
7,000 to 7,999 1.6 percent 17 percent $1,100
8,000 to 8,999 1.6 percent 18 percent $1,100
9,000 to 9,999 1.7 percent 19 percent $1,100
10,000 to 10,999 1.7 percent 20 percent $1,075
11,000 to 11,999 1.8 percent 22 percent $1,075
12,000 to 12,999 1.8 percent 24 percent $1,075
13,000 to 13,999 1.9 percent 26 percent $1,075
14,000 to 14,999 2.0 percent 28 percent $1,075
15,000 to 15,999 2.1 percent 30 percent $1,075
16,000 to 16,999 2.2 percent 32 percent $1,075
17,000 to 17,999 2.3 percent 34 percent $1,050
18,000 to 18,999 2.4 percent 36 percent $1,050
19,000 to 19,999 2.6 percent 38 percent $1,050
20,000 to 20,999 2.8 percent 40 percent $1,050
21,000 to 21,999 3.0 percent 42 percent $1,050
22,000 to 22,999 3.2 percent 44 percent $1,050
23,000 to 23,999 3.3 percent 46 percent $1,025
24,000 to 24,999 3.4 percent 48 percent $1,025
25,000 to 25,999 3.5 percent 50 percent $1,025
26,000 to 26,999 3.6 percent 52 percent $1,025
27,000 to 27,999 3.7 percent 54 percent $1,000
28,000 to 28,999 3.8 percent 56 percent $ 900
29,000 to 29,999 3.9 percent 58 percent $ 800
30,000 to 30,999 4.0 percent 60 percent $ 700
31,000 to 31,999 4.0 percent 60 percent $ 600
32,000 to 32,999 4.0 percent 60 percent $ 500
33,000 to 33,999 4.0 percent 60 percent $ 300
34,000 to 34,999 4.0 percent 60 percent $ 100
$0 to 999 1.2 percent 22 percent $400
1,000 to 1,999 1.3 percent 24 percent $400
2,000 to 2,999 1.4 percent 26 percent $400
3,000 to 3,999 1.6 percent 28 percent $400
4,000 to 4,999 1.7 percent 30 percent $400
5,000 to 5,999 1.9 percent 33 percent $400
6,000 to 6,999 1.9 percent 35 percent $400
7,000 to 7,999 2.1 percent 38 percent $400
8,000 to 8,999 2.2 percent 40 percent $400
9,000 to 9,999 2.3 percent 42 percent $400
10,000 to 10,999 2.4 percent 45 percent $400
11,000 to 11,999 2.5 percent 48 percent $400
12,000 to 13,999 2.6 percent 48 percent $400
14,000 to 14,999 2.8 percent 48 percent $400
15,000 to 15,999 3.0 percent 50 percent $400
16,000 to 16,999 3.2 percent 50 percent $400
17,000 to 20,999 3.3 percent 50 percent $400
21,000 to 23,999 3.4 percent 50 percent $400
24,000 to 24,999 3.5 percent 50 percent $400
25,000 to 27,999 3.5 percent 50 percent $400
28,000 to 29,999 3.5 percent 50 percent $400
30,000 to 34,999 3.5 percent 55 percent $400
35,000 to 39,999 3.7 percent 55 percent $400
40,000 to 56,999 4.0 percent 55 percent $400
57,000 to 57,999 4.0 percent 55 percent $300
58,000 to 58,999 4.0 percent 55 percent $200
59,000 to 59,999 4.0 percent 55 percent $100
The payment made to a claimant shall be the amount of the
state refund calculated pursuant to under this subdivision. For
taxes payable in 1989, the amount of the refund must be reduced
by the homestead credit. No payment is allowed if the
claimant's household income is $35,000 $60,000 or more.
Sec. 2. Minnesota Statutes 1988, section 290A.04, is
amended by adding a subdivision to read:
Subd. 2a. [RENTERS.] A claimant whose rent constituting
property taxes exceeds the percentage of the household income
stated below must pay an amount equal to the percent of income
shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of
rent constituting property taxes. The state refund equals the
amount of rent constituting property taxes that remain, up to
the maximum state refund amount shown below.
Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 999 1.0 percent 9 percent $1,000
1,000 to 1,999 1.1 percent 9 percent $1,000
2,000 to 2,999 1.2 percent 10 percent $1,000
3,000 to 3,999 1.3 percent 10 percent $1,000
4,000 to 4,999 1.4 percent 11 percent $1,000
5,000 to 5,999 1.5 percent 12 percent $1,000
6,000 to 6,999 1.5 percent 13 percent $1,000
7,000 to 7,999 1.6 percent 14 percent $1,000
8,000 to 8,999 1.6 percent 15 percent $1,000
9,000 to 9,999 1.7 percent 16 percent $1,000
10,000 to 10,999 1.7 percent 17 percent $1,000
11,000 to 11,999 1.8 percent 19 percent $1,000
12,000 to 12,999 1.8 percent 21 percent $1,000
13,000 to 13,999 1.9 percent 23 percent $1,000
14,000 to 14,999 2.0 percent 24 percent $1,000
15,000 to 15,999 2.0 percent 26 percent $1,000
16,000 to 16,999 2.1 percent 27 percent $1,000
17,000 to 17,999 2.2 percent 28 percent $1,000
18,000 to 18,999 2.3 percent 30 percent $1,000
19,000 to 19,999 2.5 percent 32 percent $1,000
20,000 to 20,999 2.7 percent 34 percent $1,000
21,000 to 21,999 2.9 percent 36 percent $1,000
22,000 to 22,999 3.0 percent 37 percent $1,000
23,000 to 23,999 3.1 percent 38 percent $1,000
24,000 to 24,999 3.2 percent 40 percent $1,000
25,000 to 25,999 3.3 percent 43 percent $1,000
26,000 to 26,999 3.4 percent 43 percent $1,000
27,000 to 27,999 3.5 percent 45 percent $1,000
28,000 to 28,999 3.6 percent 47 percent $ 900
29,000 to 29,999 3.7 percent 47 percent $ 800
30,000 to 30,999 3.8 percent 48 percent $ 700
31,000 to 31,999 3.9 percent 48 percent $ 600
32,000 to 32,999 4.0 percent 50 percent $ 500
33,000 to 33,999 4.0 percent 50 percent $ 300
34,000 to 34,999 4.0 percent 50 percent $ 100
The payment made to a claimant is the amount of the state
refund calculated under this subdivision. No payment is allowed
if the claimant's household income is $35,000 or more.
Sec. 3. Minnesota Statutes 1988, section 290A.04,
subdivision 2h, is amended to read:
Subd. 2h. (a) If the net gross property taxes payable in
1989 on a homestead increase more than ten percent over the net
property taxes payable in 1988 the prior year on the same
property that is owned by the same owner in both years, and the
amount of that increase is $40 or more for taxes payable in 1990
and 1991, $60 or more for taxes payable in 1992, $80 or more for
taxes payable in 1993, and $100 or more for taxes payable in
1994, a claimant who is a homeowner shall be allowed an
additional refund equal to 75 percent of the amount by which the
increase exceeds ten percent the sum of (1) 75 percent of the
first $250 of the amount of the increase over ten percent for
taxes payable in 1990 and 1991, 75 percent of the first $275 of
the amount of the increase over ten percent for taxes payable in
1992, 75 percent of the first $300 of the amount of the increase
over ten percent for taxes payable in 1993, and 75 percent of
the first $325 of the amount of the increase over ten percent
for taxes payable in 1994, and (2) 90 percent of the amount of
the increase over ten percent plus $250 for taxes payable in
1990 and 1991, 90 percent of the amount of the increase over ten
percent plus $275 for taxes payable in 1992, 90 percent of the
amount of the increase over ten percent plus $300 for taxes
payable in 1993, and 90 percent of the amount of the increase
over ten percent plus $325 for taxes payable in 1994. This
subdivision shall not apply to any increase in the net property
taxes payable attributable to improvements made to the homestead.
A refund under this subdivision shall not exceed $250.
(b) For purposes of this subdivision, the following terms
have the meanings given:
(1) "Net property taxes payable" means property taxes
payable after reductions made pursuant to under sections 273.13,
subdivisions 22 and 23; 273.132; 273.135; 273.1391; and 273.42,
subdivision 2, and any other state paid property tax credits and
after the deduction of tax refund amounts for which the claimant
qualifies pursuant to subdivision 2 and this subdivision.
(2) "Gross property taxes" means net property taxes payable
determined without regard to the refund allowed under this
subdivision.
(c) In addition to the other proofs required by this
chapter, each claimant under this subdivision shall file with
the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other
documents required by the commissioner.
On or before December 1, 1990, and December 1 of each of
the following three years, the commissioner shall estimate the
cost of making the payments provided by this subdivision for
taxes payable in the following year. Notwithstanding the open
appropriation provision of section 290A.23, if the estimated
total refund claims exceed the following amounts for the taxes
payable year designated, the commissioner shall decrease the
percentages of the excess taxes the state will pay and increase
the dollar amount of tax increase which must occur before a
taxpayer qualifies for a refund.
Taxes payable in: Appropriation limit
1991 $7,000,000
1992 $6,500,000
1993 $6,000,000
1994 $5,500,000
The commissioner shall make the adjustments so that half of
the estimated savings come from decreasing the percentages of
the excess taxes the state will pay and half of the estimated
savings come from increasing the dollar amount of the tax
increase which must occur before a taxpayer qualifies for a
refund. The determinations of the revised percentages and
thresholds by the commissioner are not rules subject to chapter
14.
Sec. 4. Minnesota Statutes 1988, section 290A.04, is
amended by adding a subdivision to read:
Subd. 2i. If the net property taxes payable in 1990 on a
seasonal residential and recreational property, not devoted to
commercial use, increase more than ten percent over the net
property taxes payable in 1989 and if the amount is $40 or more,
one claimant who is an owner of the property in both years is
allowed a refund equal to 75 percent of the first $250 of the
excess of the increase over ten percent. This subdivision does
not apply to the portion of an increase in taxes payable that
are attributable to improvements to the property.
In addition to the other proofs required by this chapter,
each claimant under this subdivision shall file with the
application a copy of the property tax statement for property
taxes payable in 1989 and 1990 and any other documents required
by the commissioner.
Sec. 5. Minnesota Statutes 1988, section 290A.04,
subdivision 3, is amended to read:
Subd. 3. The commissioner of revenue shall construct and
make available to taxpayers a comprehensive table showing the
property taxes to be paid and refund allowed at various levels
of income and assessment. The table shall follow the schedule
of income percentages, maximums and other provisions specified
in subdivision 2, except that the commissioner may graduate the
transition between income brackets. All refunds shall be
computed in accordance with tables prepared and issued by the
commissioner of revenue.
The commissioner shall include on the form an appropriate
space or method for the claimant to identify if the property
taxes paid are for a manufactured home, as defined in section
274.19, subdivision 8, paragraph (c).
Sec. 6. Minnesota Statutes 1988, section 290A.07,
subdivision 2a, is amended to read:
Subd. 2a. A claimant who is a renter or a homeowner who
occupies a manufactured home, as defined in section 274.19,
subdivision 8, paragraph (c), shall receive full payment after
August 1 and prior to August 15 or 60 days after receipt of the
application, whichever is later. Interest shall be added at the
rate specified in section 270.76 from August 15 or 60 days after
receipt of the application whichever is later.
Sec. 7. [GOVERNOR'S RECOMMENDATION; PROPERTY TAX REFUND.]
The legislature finds that it is a desirable policy to
improve the protection for low income persons and low value
homes from future property tax increases. Therefore, the
governor, by February 15, 1990, shall submit to the legislature
recommendations regarding
(1) modifications to the property tax refund schedule for
homeowners that will improve eligibility for and the amount of
refunds that will provide up to $10,000,000 in additional
refunds over the amount provided by the schedule in effect for
taxes payable in 1990, (2) other modifications to the program to
make it simpler and more understandable to the general public,
(3) a proposal for increasing public awareness of and
participation in the program by eligible homeowners, and (4) a
separate effective tax rate credit to be administered as part of
the property tax refund which would provide state refunds to
homeowners who have high effective tax rates on modest or low
value homes and who have low or moderate household incomes.
It is the intent of the legislature that this act not
increase the net cost of rental housing to tenants after taking
into consideration the combined effect of the reductions in
property tax, rent, and property tax refund. Article 2 will
significantly reduce the property tax burden on rental housing.
Since the property tax refund for renters is based on the
property tax paid on the rental unit, the reductions in article
2 will also reduce the amount of property tax refunds. However,
because of conditions in the market for rental housing units in
some or many areas, the property tax reductions may not affect
the amount of rent the tenant must pay. As a result, the net
effect of the provisions of this act may not improve the net
cost of housing to some tenants. The property tax refund
schedule for renters in this article was increased to partially
offset this effect. In order to insure that this act does not
adversely affect the net cost of housing to tenants, the
department of revenue is directed to study this issue and to
prepare a property tax refund schedule for renters that
increases the eligibility for and amount of refunds in a manner
found necessary to prevent increases in overall rental housing
costs resulting from the adoption of article 2 and this article,
as compared with prior law. This schedule must be submitted to
the 1990 legislature along with the governor's recommendations
required by this section.
Sec. 8. [INTEREST ON ADDITIONAL REFUNDS FOR PROPERTY TAXES
PAID IN 1989.]
Notwithstanding Minnesota Statutes, section 290A.07,
subdivision 3, interest on the portion of a property tax refund
generated by removing the $250 maximum limit for taxes paid in
1989 shall be computed from the later of 60 days from the final
day of enactment or 60 days from receipt of the application.
Sec. 9. [REPEALER.]
Minnesota Statutes 1988, section 290A.04, subdivision 2h,
is repealed.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 and 4 to 6 are effective beginning for property
taxes paid in 1990. Section 2 is effective beginning for
refunds based on rent paid in 1990. Section 3 is effective
beginning for property taxes payable in 1990 except that the
repeal of the $250 maximum limitation is effective for taxes
paid in 1989 and paragraph (b), clause (1), is effective for
refunds for taxes payable in 1991. Section 7 is effective the
day following final enactment. Section 8 is effective the day
following final enactment. Section 9 is effective for property
taxes payable in 1995 and thereafter.
ARTICLE 8
LOCAL REVENUE OPTION
Section 1. Minnesota Statutes 1989 Supplement, section
469.190, subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] Notwithstanding section
477A.016 or any other law, a statutory or home rule charter city
may by ordinance, and a town may by the affirmative vote of the
electors at the annual town meeting, or at a special town
meeting, impose a tax of up to three six percent on the gross
receipts from the furnishing for consideration of lodging at a
hotel, motel, rooming house, tourist court, or resort, other
than the renting or leasing of it for a continuous period of 30
days or more. A statutory or home rule charter city may by
ordinance impose the tax authorized under this subdivision on
the camping site receipts of a municipal campground.
Sec. 2. Minnesota Statutes 1988, section 469.190,
subdivision 2, is amended to read:
Subd. 2. [EXISTING TAXES.] No statutory or home rule
charter city or town may impose a tax under this section upon
transient lodging that, when combined with any tax authorized by
special law or enacted prior to 1972, exceeds a rate of three
six percent.
Sec. 3. Minnesota Statutes 1988, section 469.190,
subdivision 3, is amended to read:
Subd. 3. [DISPOSITION OF PROCEEDS.] Ninety-five percent of
the gross proceeds from the first three percent of any tax
imposed under subdivision 1 shall be used by the statutory or
home rule charter city or town to fund a local convention or
tourism bureau for the purpose of marketing and promoting the
city or town as a tourist or convention center. This
subdivision shall not apply to any statutory or home rule
charter city or town that has a lodging tax authorized by
special law or enacted prior to 1972 at the time of enactment of
this section.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective January 1, 1990.
ARTICLE 9
PROPOSED AND FINAL TAX NOTICE
Section 1. Minnesota Statutes 1989 Supplement, section
124.2131, subdivision 1, is amended to read:
Subdivision 1. [ADJUSTED GROSS TAX CAPACITY.] (a)
[COMPUTATION.] The department of revenue shall annually conduct
an assessment/sales ratio study of the taxable property in each
school district in accordance with the procedures in paragraphs
(b) and (c). Based upon the results of this assessment/sales
ratio study, the department of revenue shall determine an
aggregate equalized gross tax capacity and an aggregate
equalized net tax capacity for the various classes of taxable
property in each school district, which tax capacity shall be
designated as the adjusted gross tax capacity and the adjusted
net tax capacity, respectively. The department of revenue may
incur the expense necessary to make the determinations. The
commissioner of revenue may reimburse any county or governmental
official for requested services performed in ascertaining the
adjusted gross tax capacity and the adjusted net tax capacity.
On or before March 15 annually, the department of revenue shall
file with the chair of the tax committee of the house of
representatives and the chair of the committee on taxes and tax
laws of the senate a report of adjusted gross tax capacities and
adjusted net tax capacities. On or before June April 15
annually, the department of revenue shall file its final report
on the adjusted gross tax capacities and adjusted net tax
capacities established by the previous year's assessment with
the commissioner of education and each county auditor for those
school districts for which the auditor has the responsibility
for determination of tax capacity rates. A copy of the report
so filed shall be mailed to the clerk of each district involved
and to the county assessor or supervisor of assessments of the
county or counties in which each district is located.
(b) [METHODOLOGY.] In making its annual assessment/sales
ratio studies, the department of revenue shall use a methodology
consistent with the most recent Standard on Assessment Ratio
Studies published by the assessment standards committee of the
International Association of Assessing Officers. The
commissioner of revenue shall supplement this general
methodology with specific procedures necessary for execution of
the study in accordance with other Minnesota laws impacting the
assessment/sales ratio study. The commissioner shall document
these specific procedures in writing and shall publish the
procedures in the State Register, but these procedures will not
be considered "rules" pursuant to the Minnesota administrative
procedure act.
(c) [AGRICULTURAL LANDS.] For purposes of determining the
adjusted gross tax capacity and adjusted net tax capacity of
agricultural lands for the calculation of adjusted gross tax
capacities and adjusted net tax capacities, the market value of
agricultural lands shall be the price for which the property
would sell in an arms length transaction.
Sec. 2. Minnesota Statutes 1988, section 124.42,
subdivision 1, is amended to read:
Subdivision 1. [QUALIFICATION; APPLICATION; AWARD;
INTEREST.] Any school district in which the required levy for
debt service in any year will exceed its maximum effort debt
service levy by ten percent or by $5,000, whichever is less, is
qualified for a debt service loan hereunder in an amount not
exceeding the amount applied for, and not exceeding one percent
of the net debt of the district, and not exceeding the
difference between the required and the maximum effort debt
service levy in that year. Applications shall be filed with the
commissioner in each calendar year up to and including September
15 July 1. The commissioner shall determine whether the
applicant is entitled to a loan and the amount thereof, and on
or before October 1 shall certify to each applicant district the
amount granted and its due date. The commissioner shall notify
the county auditor of each county in which the district is
located that the amount certified is available and appropriated
for payment of principal and interest on its outstanding bonds,
and the auditors shall reduce by that amount the taxes otherwise
leviable as the district's debt service levy on the tax rolls
for that year. Each debt service loan shall bear interest from
its date at a rate equal to the average annual rate payable on
Minnesota state school loan bonds most recently issued prior to
the disbursement of the loan to the district, but in no event
less than 3-1/2 percent per annum on the principal amount from
time to time remaining unpaid, payable on December 15 of the
year following that in which the loan is received and annually
thereafter.
Sec. 3. Minnesota Statutes 1988, section 124.42,
subdivision 4, is amended to read:
Subd. 4. Each district receiving a debt service loan shall
levy for debt service in that year and each year thereafter,
until all its debts to the fund are paid, (a) the amount of its
maximum effort debt service levy, or (b) the amount of its
required debt service levy less the amount of any debt service
loan in that year, whichever is greater. Whenever the maximum
effort debt service levy is greater the district shall remit to
the commissioner, within ten days after its receipt of the last
regular tax distribution in the year in which it is collected,
that portion of the maximum effort debt service tax collections,
including penalties and interest, which exceeds the required
debt service levy. On or before November September 1 in each
year the commissioner shall notify the county auditor of each
county containing taxable property situated within the school
district of the amount of the maximum effort debt service levy
of the district for that year, and said county auditor or
auditors shall extend upon the tax rolls an ad valorem tax upon
all taxable property within the district in the aggregate amount
so certified.
Sec. 4. Minnesota Statutes 1988, section 124.83,
subdivision 1, is amended to read:
Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive
health and safety revenue a district must submit to the
commissioner of education an application for aid and levy by
August 15 June 1 in the previous school year. The application
may be for hazardous substance removal, fire code compliance, or
life safety repairs. The application must include a health and
safety program adopted by the school district board. The
program must include the estimated cost of the program by fiscal
year.
Sec. 5. Minnesota Statutes 1989 Supplement, section
124A.03, subdivision 2, is amended to read:
Subd. 2. [REFERENDUM LEVY.] (a) The levy authorized by
section 124A.23, subdivision 2, may be increased in the amount
approved by the voters of the district at a referendum called
for the purpose. The referendum may be called by the school
board or shall be called by the school board upon written
petition of qualified voters of the district. The referendum
must be held on the first Tuesday after the first Monday in
November. The ballot shall state the maximum amount of the
increased levy as a percentage of net tax capacity, the amount
that will be raised by that tax capacity rate in the first year
it is to be levied, and that the tax capacity rate shall be used
to finance school operations. The ballot may shall designate a
the specific number of years for which the referendum
authorization shall apply. The ballot may contain a textual
portion with the information required in this subdivision and a
question stating substantially the following:
"Shall the increase in the levy proposed by (petition to)
the board of ........., School District No. .., be approved?"
If approved, the amount provided by the approved tax
capacity rate applied to the net tax capacity for the year
preceding the year the levy is certified shall be authorized for
certification for the number of years approved, if applicable,
or until revoked or reduced by the voters of the district at a
subsequent referendum.
(b) The school board shall prepare and deliver by first
class mail at least 15 days but no more than 30 days prior to
the day of the election to each taxpayer at the address listed
on the school district's current year's assessment roll, a
notice of the referendum and the proposed levy increase. For
the purpose of giving mailed notice under this subdivision,
owners shall be those shown to be owners on the records of the
county auditor or, in any county where tax statements are mailed
by the county treasurer, on the records of the county
treasurer. Every property owner whose name does not appear on
the records of the county auditor or the county treasurer shall
be deemed to have waived this mailed notice unless the owner has
requested in writing that the county auditor or county
treasurer, as the case may be, include the name on the records
for this purpose. The notice must project the anticipated
amount of increase in annual dollars and annual percentage for
typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the school
district.
The notice must include the following statement: "In 1989
the legislature reduced property taxes for education by
increasing the state share of funding for education. However,
state aid for cities and townships was reduced by a
corresponding amount. As a result, property taxes for cities
and townships may increase. Passage of this referendum will
result in an increase in your property taxes."
(c) A referendum on the question of revoking or reducing
the increased levy amount authorized pursuant to paragraph (a)
may be called by the school board and shall be called by the
school board upon the written petition of qualified voters of
the district. A levy approved by the voters of the district
pursuant to paragraph (a) must be made at least once before it
is subject to a referendum on its revocation or reduction for
subsequent years. Only one revocation or reduction election may
be held to revoke or reduce a levy for any specific year and for
years thereafter.
(c) (d) A petition authorized by paragraph (a) or (b) (c)
shall be effective if signed by a number of qualified voters in
excess of 15 percent of the registered voters of the school
district on the day the petition is filed with the school
board. A referendum invoked by petition shall be held on the
date specified in paragraph (a).
(d) (e) The approval of 50 percent plus one of those voting
on the question is required to pass a referendum authorized by
this subdivision.
(e) (f) Within 30 days after the district holds a
referendum pursuant to this clause, the district shall notify
the commissioner of education of the results of the referendum.
Sec. 6. Minnesota Statutes 1989 Supplement, section
124A.23, subdivision 1, is amended to read:
Subdivision 1. [GENERAL EDUCATION TAX CAPACITY RATE.] The
commissioner of revenue shall establish the general education
tax capacity rate and certify it to the commissioner of
education by September July 1 of each year for levies payable in
the following year. The general education tax capacity rate
shall be a rate, rounded up to the nearest tenth of a percent,
that, when applied to the adjusted gross tax capacity for all
districts, raises the amount specified in this subdivision. The
general education tax capacity rate shall be the rate that
raises $1,156,000,000 for fiscal year 1991 and $1,213,800,000
for subsequent fiscal years. The general education tax capacity
rate certified by the commissioner of revenue may not be changed
due to changes or corrections made to a district's adjusted
gross tax capacity after the tax capacity rate has been
certified.
Sec. 7. Minnesota Statutes 1988, section 124A.26,
subdivision 1, is amended to read:
Subdivision 1. [REVENUE REDUCTION.] A district's general
education revenue for a school year shall be reduced if
the estimated net unappropriated operating fund balance as of
June 30 in the second prior school year exceeds $600 times the
actual pupil units in the second prior year. The amount of the
reduction shall equal the lesser of:
(1) the amount of the excess, or
(2) $150 times the actual pupil units for the school year.
The final adjustment payments made under section 124.195,
subdivision 6, must be adjusted to reflect actual net operating
fund balances as of June 30 of the prior school year.
Sec. 8. Minnesota Statutes 1988, section 270.11,
subdivision 2, is amended to read:
Subd. 2. [COUNTY ASSESSOR'S REPORTS OF ASSESSMENT FILED
WITH COMMISSIONER.] Each county assessor shall file by June 15
April 1 with the commissioner of revenue a copy of the abstract
that will be acted upon by the local and county board boards of
review. The abstract must list the real and personal property
in the county, as equalized by the local board of review or
equalization, itemized by assessment districts. A printed or
typewritten copy of the proceedings of the local board of review
or equalization must also be filed with the commissioner. The
assessor of each county in the state shall file with the
commissioner, within five ten working days following final
action of the local board of review or equalization and within
five days following final action of the county board of
equalization, any changes made by the local or county board of
equalization. The information must be filed in the manner
prescribed by the commissioner. It must be accompanied by a
printed or typewritten copy of the proceedings of the county
board of equalization appropriate board.
The final abstract of assessments after adjustments by the
state board of equalization and inclusion of any omitted
property shall be submitted to the commissioner of revenue on or
before November 15 September 1 of each calendar year. The final
abstract must separately report the captured tax capacity of tax
increment financing districts under section 469.177, subdivision
2, the metropolitan revenue contribution value under section
473F.07, and the value subject to the power line credit under
section 273.42.
Sec. 9. Minnesota Statutes 1989 Supplement, section
270.12, subdivision 2, is amended to read:
Subd. 2. The board shall meet annually between July April
15 and October 1 June 30 at the office of the commissioner of
revenue and examine and compare the returns of the assessment of
the property in the several counties, and equalize the same so
that all the taxable property in the state shall be assessed at
its market value, subject to the following rules:
(1) The board shall add to the aggregate valuation of the
real property of every county, which the board believes to be
valued below its market value in money, such percent as will
bring the same to its market value in money;
(2) The board shall deduct from the aggregate valuation of
the real property of every county, which the board believes to
be valued above its market value in money, such percent as will
reduce the same to its market value in money;
(3) If the board believes the valuation for a class or
classes of the real property of any town or district in any
county, or the valuation for a class or classes of the real
property of any county not in towns or cities, should be raised
or reduced, without raising or reducing the other real property
of such county, or without raising or reducing it in the same
ratio, the board may add to, or take from, the valuation of a
class or classes in any one or more of such towns or cities, or
of the property not in towns or cities, such percent as the
board believes will raise or reduce the same to its market value
in money;
(4) The board shall add to the aggregate valuation of any
class of personal property of any county, town, or city, which
the board believes to be valued below the market value thereof,
such percent as will raise the same to its market value in
money;
(5) The board shall take from the aggregate valuation of
any class of personal property in any county, town or city,
which the board believes to be valued above the market value
thereof, such percent as will reduce the same to its market
value in money;
(6) The board shall not reduce the aggregate valuation of
all the property of the state, as returned by the several county
auditors, more than one percent on the whole valuation thereof;
(7) When it would be of assistance in equalizing values the
board may require any county auditor to furnish statements
showing assessments of real and personal property of any
individuals, firms, or corporations within the county. The
board shall consider and equalize such assessments and may
increase the assessment of individuals, firms, or corporations
above the amount returned by the county board of equalization
when it shall appear to be undervalued, first giving notice to
such persons of the intention of the board so to do, which
notice shall fix a time and place of hearing. The board shall
not decrease any such assessment below the valuation placed by
the county board of equalization; and
(8) In equalizing values pursuant to this section, the
board shall utilize a 12-month assessment/sales ratio study
conducted by the department of revenue containing only sales
that are filed in the county auditor's office under section
272.115, by November 1 of the previous year and that occurred
between October 1 of the year immediately preceding the previous
year to and September 30 of the previous year. The sales prices
used in the study must be discounted for terms of financing.
The board shall use the median ratio as the statistical measure
of the level of assessment for any particular category of
property.
Sec. 10. Minnesota Statutes 1988, section 270.12,
subdivision 3, is amended to read:
Subd. 3. 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 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 gross tax capacity
value in one of the counties is less than ten percent of the
total adjusted gross tax capacity 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 gross tax capacity as determined by the commissioner in
each portion is to the total adjusted gross tax capacity 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. Gross tax capacities as
determined by the commissioner shall be the gross tax capacities
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 July April 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 October 1 June 30.
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. 11. Minnesota Statutes 1988, section 270.13, is
amended to read:
270.13 [RECORD OF PROCEEDINGS CHANGING GROSS TAX CAPACITY;
DUTIES OF COUNTY AUDITOR.]
A record of all proceedings of the commissioner of revenue
affecting any change in the gross tax capacity of any property,
as revised by the state board of equalization, shall be kept by
the commissioner of revenue and a copy thereof, duly certified,
shall be mailed each year to the auditor of each county wherein
such property is situated, on or before October 1 June 30 or 30
days after submission of the abstract required by section
270.11, subdivision 2, whichever is later. This record shall
specify the amounts or amount, or both, added to or deducted
from the gross tax capacity of the real property of each of the
several towns and cities, and of the real property not in towns
or cities, also the percent or amount of both, added to or
deducted from the several classes of personal property in each
of the towns and cities, and also the amount added to or
deducted from the assessments of individuals, copartnerships,
associations, or corporations. The county auditor shall add to
or deduct from such tract or lot, or portion thereof, of any
real property in the county the required percent or amount, or
both, on the gross tax capacity thereof as it stood after
equalized by the county board, adding in each case a fractional
sum of 50 cents or more, and deducting in each case any
fractional sum of less than 50 cents, so that no gross tax
capacity of any separate tract or lot shall contain any fraction
of a dollar; and add to, or deduct from, the several classes of
personal property in the county the required percent or amount,
or both, on the gross tax capacity thereof as it stood after
equalized by the county board, adding or deducting in manner
aforesaid any fractional sum so that no gross tax capacity of
any separate class of personal property shall contain a fraction
of a dollar, and add to or deduct from assessments of
individuals, copartnerships, associations, or corporations, as
they stood after equalization by the county board, the required
amounts to agree with the assessments as returned by the
commissioner of revenue.
Sec. 12. Minnesota Statutes 1988, section 270.18, is
amended to read:
270.18 [REASSESSMENT; COMPENSATION; REIMBURSEMENT BY
COUNTIES.]
The compensation of each special assessor and deputies,
appointed under the provisions of sections 270.11, subdivision
3, and 270.16, and the expenses as such, shall be fixed by the
commissioner of revenue and paid out of money appropriated for
operation of the department of revenue. The commissioner of
revenue on October August 1 shall notify the auditor of each
affected county of the amount thereof paid on behalf of such
county since October August 1 of the preceding year, whereupon
the county auditor shall levy a tax upon the taxable property in
the assessment district or districts wherein such reassessment
was made sufficient to pay the same. One-half of such tax shall
be levied in the year in which the commissioner of revenue so
notifies the county auditor and the remaining one-half shall be
levied in the following year. The respective counties shall
reimburse the state by paying one-half of the tax so assessed on
or before July 1 and the remaining one-half on or before
December 1 in the year in which the tax is payable by owner,
whether or not the tax was collected by the county. The
reimbursement shall be credited to the general fund. If any
county fails to reimburse the state within the time specified
herein, the commissioner of revenue is empowered to order
withholding of state aids or distributions to such county equal
to the amount delinquent.
Sec. 13. Minnesota Statutes 1988, section 270.82, is
amended to read:
270.82 [REPORTS OF RAILROAD COMPANIES.]
Subdivision 1. Every railroad company doing business in
Minnesota shall annually file with the commissioner on or before
April 30 March 31 a report under oath setting forth the
information prescribed by the commissioner to enable the
commissioner to make the valuation and equalization required by
Laws 1979, chapter 303, article 7, sections 1 to 13.
Subd. 2. The commissioner for good cause may extend for up
to 15 days the time for filing the report required by
subdivision 1.
Sec. 14. Minnesota Statutes 1988, section 270.84, is
amended to read:
270.84 [ANNUAL VALUATION OF OPERATING PROPERTY.]
Subdivision 1. The commissioner shall annually between
April 30 March 31 and July May 31 make a determination of the
fair market value of the operating property of every railroad
company doing business in this state as of January 2 of the year
in which the valuation is made. In making this determination,
the commissioner shall employ generally accepted appraisal
principles and practices which may include the unit method of
determining value. The commissioner may promulgate emergency
rules adopting valuation procedures under sections 14.29 to
14.36.
The commissioner shall give a report to the legislature in
February 1985 and in February 1986 on the formula used to
determine the value of railroad operating property pursuant to
Laws 1984, chapter 502, article 9. This report shall also
contain the valuation for taxes payable 1985 and 1986 by company
and the taxes payable in 1985 and 1986 by company based upon the
valuation of operating property. The legislature may review the
formula, the valuation, and the resulting taxes and may make
changes in the formula that it deems necessary.
Subd. 2. The commissioner, after determining the fair
market value of the operating property of each railroad company,
shall give notice by first class mail to the railroad company of
the valuation by first class mail, overnight delivery, or
messenger service.
Sec. 15. Minnesota Statutes 1988, section 270.85, is
amended to read:
270.85 [REVIEW OF VALUATION.]
A railroad company may within 15 ten days of receipt the
date of the notice of valuation file a written request for a
conference with the commissioner relating to the value of its
operating property. The commissioner shall thereupon designate
a time and place for the conference which the commissioner shall
conduct, upon commissioner's entire files and records and such
further information as may be offered. Said The
conference shall must be held no later than 30 20 days after
mailing the date of the commissioner's valuation notice. At a
reasonable time after such conference the commissioner shall
make a final determination of the fair market value of the
operating property of the railroad company and shall notify the
company promptly thereof of the determination.
Sec. 16. Minnesota Statutes 1988, section 270.87, is
amended to read:
270.87 [CERTIFICATION TO COUNTY ASSESSORS.]
After making an annual determination of the equalized fair
market value of the operating property of each company in each
of the respective counties, and in the taxing districts therein,
the commissioner shall certify the equalized fair market value
to the county assessor on or before October 1, which shall
constitute June 30. The equalized fair market value of the
operating property of the railroad company in such the county
and the taxing districts therein upon is the value on which
taxes shall must be levied and collected in the same manner as
on the commercial and industrial property of such county and the
taxing districts therein.
Sec. 17. Minnesota Statutes 1988, section 272.02,
subdivision 4, is amended to read:
Subd. 4. Any property exempt from taxation on January 2 of
any year which, due to sale or other reason, loses its exemption
prior to October 1 December 20 of any year, shall be placed on
the current assessment rolls for that year.
The valuation shall be determined with respect to its value
on January 2 of such year. The classification shall be based
upon the use to which the property was put by the purchaser, or
in the event the purchaser has not utilized the property by
October 1 December 20, the intended use of the property,
determined by the county assessor, based upon all relevant facts.
Sec. 18. Minnesota Statutes 1988, section 272.115,
subdivision 1, is amended to read:
Subdivision 1. Whenever any real estate is sold on or
after January 1, 1978 for a consideration in excess of $1,000,
whether by warranty deed, quitclaim deed, contract for deed or
any other method of sale, the grantor, grantee or the legal
agent of either shall file a certificate of value with the
county auditor in the county in which the property is
located within 30 days of the sale. Value shall, in the case of
any deed not a gift, be the amount of the full actual
consideration thereof, paid or to be paid, including the amount
of any lien or liens assumed. The certificate of value shall
include the classification to which the property belongs for the
purpose of determining the fair market value of the property.
The certificate shall include financing terms and conditions of
the sale which are necessary to determine the actual, present
value of the sale price for purposes of the sales ratio study.
The commissioner of revenue shall promulgate administrative
rules specifying the financing terms and conditions which must
be included on the certificate.
Sec. 19. Minnesota Statutes 1988, section 273.064, is
amended to read:
273.064 [EXAMINATION OF LOCAL ASSESSOR'S WORK; COMPLETION
OF ASSESSMENTS.]
The county assessor shall examine the assessment appraisal
records of each local assessor anytime after January 15 of each
year and shall immediately give notice in writing to the
governing body of said district of any deficiencies in the
assessment procedures with respect to the quantity of or quality
of the work done as of that date and indicating corrective
measures to be undertaken and effected by the local assessor not
later than 30 days thereafter. If, upon reexamination of such
records at that time, the deficiencies noted in the written
notice previously given have not been substantially corrected to
the end that a timely and uniform assessment of all real
property in the county will be attained, then the county
assessor with the approval of the county board shall collect the
necessary records from the local assessor and complete the
assessment or employ others to complete the assessment. When
the county assessor has completed the assessments, the local
assessor shall thereafter resume the assessment function within
the district. In this circumstance the cost of completing the
assessment shall be charged against the assessment district
involved. The county auditor shall certify the costs thus
incurred to the appropriate governing body not later than
September August 1 and if unpaid as of October 10 September 1 of
the assessment year, the county auditor shall levy a tax upon
the taxable property of said assessment district sufficient to
pay such costs. The amount so collected shall be credited to
the general revenue fund of the county.
Sec. 20. Minnesota Statutes 1988, section 273.065, is
amended to read:
273.065 [DELIVERY OF ASSESSMENT APPRAISAL RECORDS;
EXTENSIONS.]
Assessment districts shall complete the assessment
appraisal records on or before March 15 February 1. The records
shall be delivered to the county assessor as of that date and
any work which is the responsibility of the local assessor which
is not completed by March 15 February 1 shall be accomplished by
the county assessor or persons employed by the county assessor
and the cost of such work shall be charged against the
assessment district as provided in section 273.064. Extensions
of time to complete the assessment appraisal records may be
granted to the local assessor by the county assessor if such
extension is approved by the county board.
Sec. 21. Minnesota Statutes 1989 Supplement, section
273.1104, subdivision 2, is amended to read:
Subd. 2. On or before September 15 May 1 in each year, the
commissioner shall send to each person subject to the tax on
unmined iron ores and to each taxing district affected, a notice
of the market value of the unmined ores as determined by the
commissioner prior to adjustment under subdivision 1. Said
notice shall be sent by mail directed to such person at the
address given in the report filed and the assessor of such
taxing district, but the validity of the tax shall not be
affected by the failure of the commissioner of revenue to mail
such notice or the failure of the person subject to the tax to
receive it.
On the first secular day following the first day of October
May 20, the commissioner of revenue shall hold a hearing which
may be adjourned from day to day. All relevant and material
evidence having probative value with respect to the issues shall
be submitted at the hearing and such hearing shall not be a
"contested case" within the meaning of section 14.02,
subdivision 3. Every person subject to such tax may at such
hearing present evidence and argument on any matter bearing upon
the validity or correctness of the tax determined to be due, and
the commissioner of revenue shall review the determination of
such tax.
Sec. 22. Minnesota Statutes 1989 Supplement, section
273.119, subdivision 2, is amended to read:
Subd. 2. [REIMBURSEMENT FOR LOST REVENUE.] The county may
transfer money from the county conservation account created in
section 40A.152 to the county revenue fund to reimburse the fund
for the cost of the property tax credit. The county auditor
shall certify to the commissioner of revenue on or before June 1
of each year, as part of the abstracts of tax lists required to
be filed with the commissioner under section 275.29, the amount
of tax lost to the county from the property tax credit under
subdivision 1 and the extent that the tax lost exceeds funds
available in the county conservation account. Any prior year
adjustments must also be certified in the abstracts of tax
lists. The commissioner of revenue shall review the
certifications to determine their accuracy. The commissioner
may make the changes in the certification that are considered
necessary or return a certification to the county auditor for
corrections. On or before July 15 of each year, The
commissioner shall reimburse the county each taxing district,
other than school districts, from the Minnesota conservation
fund under section 40A.151 for the taxes lost in excess of the
county account. The payments must be made at the times provided
in section 477A.015 for payment of local government aid to
taxing jurisdictions in the same proportion that the ad valorem
tax is distributed.
Sec. 23. Minnesota Statutes 1988, section 273.123,
subdivision 4, is amended to read:
Subd. 4. [STATE REIMBURSEMENT.] The county auditor shall
calculate the tax on the property described in subdivision 2
based on the assessment made on January 2 of the year in which
the disaster or emergency occurred. The difference between the
tax determined on the January 2 gross tax capacity and the tax
actually payable based on the reassessed gross tax capacity
determined under subdivision 2 shall be reimbursed to each
taxing jurisdiction in which the damaged property is located.
The amount shall be certified by the county auditor and reported
to the commissioner of revenue. The commissioner shall make the
payments to the taxing jurisdictions, other than school
districts, containing the property at the time distributions are
made pursuant to section 273.13 for taxes payable in 1989, and
pursuant to section 273.1398 for taxes payable in 1990 and
thereafter under section 477A.015, in the same proportion that
the ad valorem tax is distributed.
Sec. 24. Minnesota Statutes 1988, section 273.123,
subdivision 5, is amended to read:
Subd. 5. [COMPUTATION OF CREDITS.] The amounts of any
credits or tax relief which reduce the gross tax shall be
computed upon the reassessed gross tax capacity determined under
subdivision 2. Payment shall be made pursuant to section 273.13
for taxes payable in 1989, and pursuant to section 273.1398 for
taxes payable in 1990 and thereafter. 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 gross tax capacity determined under
subdivision 2.
Sec. 25. Minnesota Statutes 1988, section 273.1392, is
amended to read:
273.1392 [PAYMENT; AIDS TO SCHOOL DISTRICTS.]
The amounts of conservation tax credits under section
273.119; disaster or emergency reimbursement under section
273.123; attached machinery aid under section 273.138; homestead
credit under section 273.13; agricultural credit under section
273.132; aids and credits under section 273.1398; enterprise
zone property credit payments under section 469.171; and
metropolitan agricultural preserve reduction under section
473H.10, shall be certified to the department of education by
the department of revenue. The amounts so certified shall be
paid according to section 124.195, subdivisions 6 and 10.
Sec. 26. Minnesota Statutes 1988, 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 pipelines, 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 pipelines nor to the lines of local commercial gas companies
engaged primarily in the business of distributing gas to
consumers at retail nor to pipelines 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 October 1 June 30, 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. 27. Minnesota Statutes 1988, section 273.37,
subdivision 2, is amended to read:
Subd. 2. Transmission lines of less than 69 kv,
transmission lines of 69 kv and above located in an unorganized
township, and distribution lines, and equipment attached
thereto, having a fixed situs outside the corporate limits of
cities except distribution lines taxed as provided in sections
273.40 and 273.41, shall be listed with and assessed by the
commissioner of revenue in the county where situated. The
commissioner shall assess such property at the percentage of
market value fixed by law; and, on or before the 15th day of
November June 30, shall certify to the auditor of each county in
which such property is located the amount of the assessment made
against each company and person owning such property.
Sec. 28. [273.371] [REPORTS OF UTILITY COMPANIES.]
Subdivision 1. [REPORT REQUIRED.] Every electric light,
power, gas, water, express, stage, and transportation company
and pipeline doing business in Minnesota shall annually file
with the commissioner on or before March 31 a report under oath
setting forth the information prescribed by the commissioner to
enable the commissioner to make valuations, recommended
valuations, and equalization required under sections 273.33,
273.35, 273.36, and 273.37.
Subd. 2. [EXTENSION.] The commissioner for good cause may
extend the time for filing the report required by subdivision
1. The extension may not exceed 15 days.
Sec. 29. Minnesota Statutes 1988, section 274.14, is
amended to read:
274.14 [LENGTH OF SESSION; RECORD.]
The county board of equalization or the special board of
equalization appointed by it shall meet during the last two
weeks in June that contain ten meeting days, excluding Saturday
and Sunday. The commissioner may extend the session period to
July 15 but No action taken by the county board of review
after the extended termination date June 30 is valid. The
county auditor shall keep an accurate record of the proceedings
and orders of the board. The record must be published like
other proceedings of county commissioners. A copy of the
published record must be sent to the commissioner of revenue,
with the abstract of assessment required by section 274.16.
Sec. 30. [274.175] [VALUES FINALIZED.]
The assessments recorded by the county assessor and the
county auditor under sections 273.124, subdivision 9; 274.16;
274.17; or other law for real and personal property are final on
July 1 of the assessment year, except for property added to the
assessment rolls under section 272.02, subdivision 4, or deleted
because of tax forfeiture pursuant to chapter 281. No changes
in value may be made after July 1 of the assessment year.
Sec. 31. Minnesota Statutes 1988, section 275.065,
subdivision 1, is amended to read:
Subdivision 1. [PROPOSED LEVY.] Notwithstanding any law or
charter to the contrary, on or before August September 1, each
taxing authority, other than a school district, shall adopt a
proposed budget and each taxing authority shall certify to the
county auditor the proposed property tax levy for taxes payable
in the following year. For purposes of this section, "taxing
authority" shall include includes all home rule and statutory
cities with a population of over 2,500, towns with a population
over 5,000, counties, school districts, the metropolitan
council, and the metropolitan regional transit commission and
special taxing districts.
Sec. 32. Minnesota Statutes 1988, section 275.065, is
amended by adding a subdivision to read:
Subd. 1a. [OVERLAPPING JURISDICTIONS.] In the case of a
taxing authority lying in two or more counties, the home county
auditor shall certify the proposed levy to the other county
auditor by September 20 for taxes levied in 1990, and
thereafter, and the proposed tax capacity rate by September 5
for taxes levied in 1991, and thereafter, for counties
containing a city of the first class. The home county auditor
must estimate the levy or rate in preparing the notices required
in subdivision 3, if the other county has not certified the
appropriate information. If requested by the home county
auditor, the other county auditor must furnish an estimate to
the home county auditor.
Sec. 33. Minnesota Statutes 1988, section 275.065, is
amended by adding a subdivision to read:
Subd. 1b. [CERTIFICATION OF POPULATION; PUPILS.] (a) On or
before September 1, the state demographer shall certify to the
county auditor the population of each taxing authority and the
change in population as required in subdivision 3, paragraph
(d), clause (3).
(b) On or before September 1, the commissioner of education
shall certify to the county auditor the number of pupils in
average daily membership in the school district and the change
in the number of pupils in average daily membership as required
in subdivision 3, paragraph (d), clause (3).
Sec. 34. Minnesota Statutes 1988, section 275.065,
subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) If there
is a percentage increase in property taxes proposed by the
taxing authority, on or before September 15, The county auditor
shall compute for each parcel of property on the assessment
rolls within the taxing authority the proposed property tax for
taxes levied in the current year. In the case of cities under
2,500 population, and all special taxing districts except the
metropolitan council and the metropolitan regional transit
commission, the auditor shall use the taxing district's previous
year tax capacity rate for use in computing the total property
tax. The county auditor shall prepare and the county treasurer
shall deliver on or before November 10 each year, by first class
mail to each taxpayer at the address listed on the city's
county's current year's assessment roll, a notice of the
taxpayer's proposed property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) A notice in substantially the following form shall be
sufficient.
NOTICE OF PROPOSED PROPERTY TAXES
DO NOT PAY THIS IS NOT A BILL
This notice shows the amount your next property tax bill will be
if proposed budgets are approved by the local government
districts you live in. It also shows the amount of your next
property tax bill if the local government districts you live in
do not change their budgets from this year.
Name of Description Market value Class of
property of property of property property
owner
John Q. Lot 1, $65,000 residential
and Mary Block 1 homestead
W. Smith Pleasant
Acres sub-
division
Middletown,
Minnesota
Based on their proposed budgets, next year the governing bodies
of the county, city, school district, and special tax districts
you live in are proposing to collect from you the amount of
property tax shown below. At the meetings listed below, the
governing bodies will discuss and vote on the amount of their
budgets for next year. The larger the amount of the budget, the
more property tax you will pay. You can attend the meetings and
express your opinions about the amount of the budget before the
budget is voted on.
These local Amount of Amount of Time and
governments your tax your tax place of
These local Amount of Amount of Time and
governments your tax your tax place of
collect next year next year meetings on
property tax if they if they proposed
from you do not adopt budgets
change their
their proposed
budgets budgets
from
this
year
County: Spruce $218.55 $257.75 September 1,
1988, 7:30 pm
Room 123, Spruce
Co. Courthouse
City or Town: $168.63 $184.09 October 1, 1988,
Middletown 8:00 pm Middletown
Town Hall
Public School: Ind. Dist. 123
set by school $47.56 $146.88 September 25, 1988,
board
set by state law $300.00 $300.00 Cafeteria,
Middletown
Town Hall
Special Tax Districts
Metropolitan Council $25.00 $50.00 October 5,
1988, 3:00 pm
Board Room,
Tri-County
Hospital
Metropolitan $10.00 $12.00 October 12,
Regional Transit 1988, 6:00 pm
Board Common Room,
Tri-County
Library
Tax before State
payments: $769.74 $950.72
Payments by
State: (subtract: $215.00) (subtract: $235.00)
-----------------------------------------------------------
Your tax if budget is not changed: $554.74
Your tax if proposed budget is adopted: $715.72
The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to
collect for taxes payable the following year as required in
paragraph (d) or (e). It must clearly state that each taxing
authority, other than a town or special taxing district, will
hold a public meeting to receive public testimony on the
proposed budget and property tax levy, or, in case of a school
district, on the proposed property tax levy. It must clearly
state the time and place of each taxing authority's meeting and
an address where comments will be received by mail. It must
state the time and place for the continuation of the hearing if
the hearing is not completed on the original date.
(d) Except as provided in paragraph (e), the notice must
state by county, city or town, and school district:
(1) the total proposed property tax levy for taxes payable
the following year after reduction for state aid;
(2) the percentage increase or decrease from the actual
property tax levy for taxes payable in the current year; and
(3) for counties, cities, and towns, the increase or
decrease in population from the second previous calendar year to
the immediately prior calendar year, as determined by the state
demographer, and for school districts, the increase or decrease
in the number of pupils in average daily membership from the
second previous school year to the immediately prior school year
as determined by the commissioner of education.
For purposes of this paragraph, "proposed property taxes
after reduction for state aid" means the taxing authority's levy
certified under section 275.07, subdivision 1.
(e) In the case of a county containing a city of the first
class, or taxing authority lying wholly within a county or
counties containing a city of the first class, for taxes levied
in 1991, and thereafter, the notice must state for each parcel:
(1) the market value of the property as defined under
section 272.03, subdivision 8, for property taxes payable in the
following year and for taxes payable the current year;
(2) by county, city or town, school district, the sum of
the special taxing districts, and as a total of the taxing
authorities, including special taxing districts, the proposed
net tax on the property for taxes payable the following year and
the actual tax for taxes payable the current year; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed taxes payable
the following year, expressed as a dollar amount and as a
percentage.
(f) The notice must clearly state that the proposed taxes
do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, school
district levy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified; and
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified.
Sec. 35. Minnesota Statutes 1988, section 275.065,
subdivision 4, is amended to read:
Subd. 4. [COSTS.] The taxing authority shall pay the
county for If the reasonable cost of the county auditor's
services and for the costs cost of preparing and mailing the
notice required in this section exceed the amount distributed to
the county by the commissioner of revenue to administer this
section, the taxing authority must reimburse the county for the
excess cost. The excess cost must be apportioned between taxing
jurisdictions as follows:
(1) one-third is allocated to the county;
(2) one-third is allocated to cities and towns within the
county; and
(3) one-third is allocated to school districts within the
county.
The amounts in clause (2) must be further apportioned among
the cities and towns in the proportion that the population of
the city and town bears to the population of all the cities and
towns within the county. The amount in clause (3) must be
further apportioned among the school districts in the proportion
that the number of pupils in the school district bears to the
number of pupils in all school districts within the county.
Sec. 36. Minnesota Statutes 1988, section 275.065,
subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]
Prior to October 25 Between November 15 and December 20, the
governing body bodies of the city and county shall each hold a
public hearing to adopt its final budget and property tax levy
for taxes payable in the following year, and the governing body
of the school district shall hold a public hearing to adopt its
property tax levy for taxes payable in the following year. The
hearing must be held not less than two days or more than five
days after the day the notice is first published.
At the hearing, the taxing authority, other than a school
district, may amend the proposed budget and property tax levy
and must adopt a final budget and property tax levy, and the
school district may amend the proposed property tax levy and
must adopt a final property tax levy.
The adopted property tax levy adopted may must not exceed
the final proposed levy determined under subdivision 2, 1
paragraph (c)., except by an amount up to the sum of the
following amounts:
(1) the amount of a school district levy whose voters
approved a referendum to increase taxes under section 124A.03,
subdivision 2, or 124.82, subdivision 3, after the proposed levy
was certified;
(2) the amount of a city or county levy approved by the
voters under section 275.58 after the proposed levy was
certified;
(3) the amount of a levy to pay principal and interest on
bonds issued or approved by the voters under section 475.58
after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural
disaster occurring after the proposed levy was certified, if
that amount is approved by the commissioner of revenue under
subdivision 6a; and
(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under subdivision 6a.
At the hearing the percentage increase in property taxes
proposed by the taxing authority, if any, and the specific
purposes for which property tax revenues are being increased
must be discussed. During the discussion, the governing body
shall hear comments regarding a proposed increase and explain
the reasons for the proposed increase. The public shall be
allowed to speak and to ask questions prior to adoption of any
measures by the governing body. The governing body, other than
the governing body school districts, shall adopt its final
property tax levy prior to adopting its final budget.
The hearing must be held after 5:00 p.m. if scheduled on a
day other than Saturday. No hearing may be held on a Sunday.
The school board and county board shall The commissioner of
revenue shall provide for the coordination of hearing dates so
that a taxing authority does not schedule public meetings
on days the days scheduled for the hearing by the governing body
of the city another taxing authority.
If the hearing is recessed, the taxing authority shall
publish a notice in a qualified newspaper of general paid
circulation in the city. The notice must state the time and
place for the continuation of the hearing and must be published
at least two days but not more than five days prior to the date
the hearing will be continued.
This subdivision does not apply to towns and special taxing
districts.
Sec. 37. Minnesota Statutes 1988, section 275.065, is
amended by adding a subdivision to read:
Subd. 6a. [APPROVAL OF COMMISSIONER.] (a) A taxing
authority may appeal to the commissioner of revenue for
authorization to levy an amount over the amount of the proposed
levy. The taxing authority must provide evidence satisfactory
to the commissioner that it has incurred costs for the purposes
specified in paragraph (b). The commissioner may approve an
increase in the taxing authority's levy of up to the amount of
costs incurred or a lesser amount determined by the
commissioner. The commissioner's decision is final.
(b) A levy addition may be made under paragraph (a) for the
following costs incurred after the proposed levy is certified:
(1) the unreimbursed costs to satisfy judgments rendered against
the taxing authority by a court of competent jurisdiction in a
tort action in excess of $50,000 or ten percent of the current
year's proposed certified levy whichever is less; and (2) the
costs incurred in clean up of a natural disaster. For purposes
of this subdivision, "natural disaster" includes the occurrence
or threat of widespread or severe damage, injury, or loss of
life or property resulting from causes such as earthquake, fire,
flood, windstorm, wave action, oil spill, water contamination,
air contamination, or drought.
Sec. 38. Minnesota Statutes 1988, section 275.065,
subdivision 7, is amended to read:
Subd. 7. [CERTIFICATION OF COMPLIANCE.] At the time the
taxing authority certifies its tax levy under section 275.07, it
shall certify to the commissioner of revenue its compliance with
this section. The certification must contain copies of the
advertisement required under subdivision 5, the resolution
adopting the final property tax levy under subdivision 6, and
any other the information required by the commissioner of
revenue to determine compliance with this section. If the
commissioner determines that the taxing authority has failed to
substantially comply with the requirements of this section, the
commissioner of revenue shall notify the county auditor. The
decision of the commissioner is final. When fixing rates under
section 275.08 for a taxing authority that has not complied with
this section, the county auditor must use the no-increase tax
rate taxing authority's previous year's levy.
Sec. 39. Minnesota Statutes 1988, section 275.07,
subdivision 1, is amended to read:
Subdivision 1. The taxes voted by cities, towns, counties,
school districts, and special districts shall be certified by
the proper authorities to the county auditor on or before
October 25 five working days after December 20 in each year.
The taxes certified shall not be adjusted by the aid received
under section 273.1398, subdivisions 2 and 3. If a city, town,
county, school district, or special district fails to certify
its levy by that date, its levy shall be the amount levied by it
for the preceding year. If the local unit notifies the
commissioner of revenue before October 25 of its inability to
certify its levy by that date, and the commissioner is satisfied
that the delay is unavoidable and is not due to the negligence
of the local unit's officials or staff, the commissioner shall
extend the time within which the local unit shall certify its
levy up to 15 calendar days beyond the date of request for
extension.
Sec. 40. Minnesota Statutes 1988, section 275.07, is
amended by adding a subdivision to read:
Subd. 4. [REPORT TO COMMISSIONER.] On or before September
15 for taxes levied in 1990, and thereafter, the county auditor
shall report to the commissioner of revenue the proposed levy
certified by local units of government under section 275.065,
subdivision 1. On or before January 15, for taxes levied in
1989 and thereafter, the county auditor shall report to the
commissioner of revenue the final levy certified by local units
of government under subdivision 1. The levies must be reported
in the manner prescribed by the commissioner. The reports must
show a total levy and the amount of each special levy.
Sec. 41. Minnesota Statutes 1988, section 275.08,
subdivision 2, is amended to read:
Subd. 2. [ESTIMATES.] If, by December January 15 of any
year, the county auditor has not received from another county
auditor the tax capacity rate or gross tax capacity applicable
to any taxing district lying in two or more counties, the county
auditor who has not received the necessary information may levy
taxes for the overlapping district by estimating the tax
capacity rate or the gross tax capacity.
Sec. 42. Minnesota Statutes 1988, section 275.08,
subdivision 3, is amended to read:
Subd. 3. [ASSISTANCE OF COUNTY AUDITOR.] A county auditor
who has not furnished the tax capacity rate or gross tax
capacity of property in the county by December January 15 shall,
on request, furnish the county auditor of a county in the
overlapping district an estimate of the tax capacities or the
tax capacity rate. The auditor may request the assistance of
the county assessor in determining the estimate.
Sec. 43. Minnesota Statutes 1988, section 275.124, is
amended to read:
275.124 [REPORT OF CERTIFIED LEVY.]
Prior to February 1 April 1 of each year, each county
auditor shall report to the commissioner of education on forms
furnished by the commissioner, the amount of the certified levy
made by each school district within the county which has taxable
property and any other information concerning these levies that
is deemed necessary by the commissioner.
Sec. 44. Minnesota Statutes 1989 Supplement, section
275.125, subdivision 5, is amended to read:
Subd. 5. [BASIC TRANSPORTATION LEVY.] Each year, a school
district may levy for school transportation services an amount
not to exceed the amount raised by the basic transportation tax
capacity rate times the adjusted net tax capacity of the
district for the preceding year. The commissioner of revenue
shall establish the basic transportation tax capacity rate and
certify it to the commissioner of education by September July 1
of each year for levies payable in the following year. The
basic transportation tax capacity rate shall be a rate, rounded
up to the nearest hundredth of a percent, that, when applied to
the adjusted net tax capacity of taxable property for all
districts, raises the amount specified in this subdivision. The
basic transportation tax capacity rate for transportation shall
be the rate that raises $82,063,200 for fiscal year 1991 and
$86,166,400 for subsequent fiscal years. The basic
transportation tax capacity rate certified by the commissioner
of revenue must not be changed due to changes or corrections
made to a district's adjusted net tax capacity after the tax
capacity rate has been certified.
Sec. 45. Minnesota Statutes 1989 Supplement, section
275.125, subdivision 5b, is amended to read:
Subd. 5b. [TRANSPORTATION LEVY OFF-FORMULA ADJUSTMENT.]
(a) In the 1989 and 1990 fiscal years, if the basic
transportation levy under subdivision 5 in a district
attributable to the fiscal year exceeds the transportation aid
computation under section 124.225, subdivisions 8b, 8i, 8j, and
8k, the district's levy limitation shall be adjusted as provided
in this subdivision. In the next second year following each
fiscal year, the district's transportation levy shall be reduced
by an amount equal to the difference between (1) the amount of
the basic transportation levy under subdivision 5, and (2) the
sum of the district's transportation aid computation pursuant to
section 124.225, subdivisions 8b, 8i, 8j, and 8k, and the amount
of any subtraction made from special state aids pursuant to
section 124.2138, subdivision 2, less the amount of any aid
reduction due to an insufficient appropriation as provided in
section 124.225, subdivision 8a.
(b) For 1991 and later fiscal years, in a district if the
basic transportation levy under subdivision 5 attributable to
that fiscal year is more than the difference between (1) the
district's transportation revenue under section 124.225,
subdivision 7c, and (2) the sum of the district's maximum
nonregular levy under subdivision 5c and the district's
contracted services aid reduction under section 124.225,
subdivision 8k, and the amount of any reduction due to
insufficient appropriation under section 124.225, subdivision
8a, the district's transportation levy in the next second year
following each fiscal year must be reduced by the amount of the
excess.
Sec. 46. Minnesota Statutes 1989 Supplement, section
275.14, is amended to read:
275.14 [CENSUS.]
For the purposes of sections 124.2713 and 275.11 to 275.16,
the population of a city shall be that established by the last
federal census, by a special census taken by the United States
Bureau of the Census, by an estimate made by the metropolitan
council, or by the state demographer made according to section
116K.04, subdivision 4, whichever has the latest stated date of
count or estimate, before July 2 of the current levy year. The
population of a school district must be as certified by the
department of education from the most recent federal census.
In any year in which no federal census is taken pursuant to
law in any school district affected by sections 275.11 to 275.16
a population estimate may be made and submitted to the state
demographer for approval as hereinafter provided. The school
board of a school district, in case it desires a population
estimate, shall pass a resolution by September July 1 containing
a current estimate of the population of the school district and
shall submit the resolution to the state demographer. The
resolution shall describe the criteria on which the estimate is
based and shall be in a form and accompanied by the data
prescribed by the state demographer. The state demographer
shall determine whether or not the criteria and process
described in the resolution provide a reasonable basis for the
population estimate and shall inform the school district of that
determination within 30 days of receipt of the resolution. If
the state demographer determines that the criteria and process
described in the resolution do not provide a reasonable basis
for the population estimate, the resolution shall be of no
effect. If the state demographer determines that the criteria
and process do provide a reasonable basis for the population
estimate, the estimate shall be treated as the population of the
school district for the purposes of sections 275.11 to 275.16
until the population of the school district has been established
by the next federal census or until a more current population
estimate is prepared and approved as provided herein, whichever
occurs first. The state demographer shall establish guidelines
for acceptable population estimation criteria and processes.
The state demographer shall issue advisory opinions upon request
in writing to cities or school districts as to proposed criteria
and processes prior to their implementation in an estimation.
The advisory opinion shall be final and binding upon the
demographer unless the demographer can show cause why it should
not be final and binding.
In the event that a census tract employed in taking a
federal or local census overlaps two or more school districts,
the county auditor shall, on the basis of the best information
available, allocate the population of said census tract to the
school districts involved.
The term "council," as used in sections 275.11 to 275.16,
means any board or body, whether composed of one or more
branches, authorized to make ordinances for the government of a
city within this state.
Sec. 47. Minnesota Statutes 1989 Supplement, section
275.28, subdivision 1, is amended to read:
Subdivision 1. [AUDITOR TO MAKE.] The county auditor shall
make out the tax lists according to the prescribed form, and to
correspond with the assessment districts. The rate percent
necessary to raise the required amount of the various taxes
shall be calculated on the net tax capacity of property as
determined by the state board of equalization, but, in
calculating such rates, no rate shall be used resulting in a
fraction other than a decimal fraction, or less than a gross tax
capacity rate of .01 percent or a net tax capacity rate of .01
percent; and, in extending any tax, whenever it amounts to the
fractional part of a cent, it shall be made one cent. The tax
lists shall also be made out to correspond with the assessment
books in reference to ownership and description of property,
with columns for the valuation and for the various items of tax
included in the total amount of all taxes set down opposite each
description. Opposite each description which has been sold for
taxes, and which is subject to redemption, but not redeemed,
shall be placed the words "sold for taxes." The amount of all
special taxes shall be entered in the proper columns, but the
general taxes may be shown by entering the rate percent of each
tax at the head of the proper columns, without extending the
same, in which case a schedule of the rates percent of such
taxes shall be made on the first page of each tax list. If the
auditor fails to enter on any such list before its delivery to
the treasurer any tax levied, the tax may be subsequently
entered. The tax lists shall be deemed completed, and all taxes
extended thereon, as of October 16 January 1 annually.
Sec. 48. Minnesota Statutes 1988, section 275.29, is
amended to read:
275.29 [ABSTRACTS TO COMMISSIONER OF REVENUE.]
On or before January 1 Not later than March 31, in each
year, the county auditor shall make and transmit to the
commissioner of revenue, in such form as may be prescribed by
the commissioner of revenue, complete abstracts of the tax lists
of the county, showing the number of acres of land assessed; its
value, including the structures thereon; the value of town and
city lots, including structures; the total value of all taxable
personal property in the several assessment districts; the
aggregate amount of all taxable property in the county, and the
total amount of taxes levied therein for state, county, town,
and all other purposes for that year.
Sec. 49. Minnesota Statutes 1988, section 275.51, is
amended by adding a subdivision to read:
Subd. 7. [LEVY LIMIT CERTIFICATION.] The commissioner of
revenue must certify the levy limitations under sections 275.50
to 275.58 to each governmental subdivision by October 23 for
levy year 1989 and August 1 of levy year 1990 and thereafter.
Sec. 50. Minnesota Statutes 1988, section 275.58,
subdivision 2, is amended to read:
Subd. 2. A levy limit base per capita adjustment approved
pursuant to subdivision 1 at a general or special election held
prior to October 1 five working days after December 20 in any
levy year increases the levy limit base per capita in that same
levy year by the approved per capita amount and provides a
permanent adjustment to the levy limit base per capita of the
governmental subdivision for future levy years. A levy limit
base per capita adjustment approved pursuant to subdivision 1 at
a general or special election held on or after September 30 five
working days after December 20 in any levy year shall not
increase the levy limit base per capita in that same levy year
but shall provide a permanent adjustment to the levy limit base
per capita of the governmental subdivision for future levy years.
Sec. 51. Minnesota Statutes 1988, section 275.58,
subdivision 3, is amended to read:
Subd. 3. An additional levy approved pursuant to
subdivision 1 at a general or special election held prior to
October 1 five working days after December 20 in any levy year
may be levied in that same levy year and in any levy years
thereafter. An additional levy approved pursuant to subdivision
1 at a general or special election held on or after September 30
five working days after December 20 in any levy year shall not
be levied in that same levy year, but may be levied in the
subsequent levy year and in levy years thereafter.
Sec. 52. Minnesota Statutes 1988, section 276.01, is
amended to read:
276.01 [DELIVERY OF LISTS TO TREASURER.]
On or before the first business day in January March in
each year, the county auditor shall deliver the lists of the
districts of the county to the county treasurer and get the
treasurer's receipt for them. The lists must show the total
amount of taxes due. Where the names of taxpayers appear in the
property tax lists, the county auditor shall show the taxpayers'
addresses. The lists are authority for the treasurer to collect
the taxes shown on the list.
In counties that have elected to come under section 273.03,
subdivision 2, when the county treasurer possesses the lists
provided for in section 275.28, subdivision 3, the county
auditor shall have access to the lists to change the market
valuations and the classifications of real estate in the lists
that the auditor would have been required to change in the
assessment books provided for in section 273.03, subdivision 1,
except for the election to discontinue the preparation of the
assessment books. The county auditor is the official custodian
of the lists after the year when they are in the county
treasurer's possession.
Sec. 53. Minnesota Statutes 1988, section 276.04,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
shall, whether or not directed by the county board, cause to be
printed on all provide for the printing of the tax statements,
or on an attachment,. The commissioner of revenue shall
prescribe the form of the property tax statement and its
contents. The statement must contain a tabulated statement of
the dollar amount due to each taxing authority from the parcel
of real property for which a particular tax statement is
prepared. The dollar amounts due the county, township or
municipality and school district must be separately stated. The
amounts due other taxing districts, if any, may be aggregated.
The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar.
For purposes of this section whole odd-numbered dollars may be
adjusted to the next higher even-numbered dollar. The statement
shall include the following sentence, printed in upper case
letters in boldface print: "THE STATE OF MINNESOTA DOES NOT
RECEIVE ANY PROPERTY TAX REVENUES. THE STATE OF MINNESOTA
REDUCES YOUR PROPERTY TAX BY PAYING CREDITS AND REIMBURSEMENTS
TO LOCAL UNITS OF GOVERNMENT."
(b) The property tax statements for manufactured homes and
sectional structures taxed as personal property shall contain
the same information that is required on the tax statements for
real property.
(c) For taxes payable in 1990 and thereafter, real and
personal property tax statements must contain (1) the property's
market value, as defined in section 272.03, subdivision 8, (2)
the net tax capacity rate applicable to the property's
classification under section 273.13, and the product of (1) and
(2), the property's initial tax. The statement must show the
difference between a property's gross tax capacity and net tax
capacity multiplied by the tax capacity rate as "state paid
homestead and agricultural credit." The statement must also
show the decrease in tax attributable to that portion of the sum
of the following aids attributable to the property as "state
paid tax relief": (i) education aids payable under chapters 124
and 124A, (ii) local government aid for cities, towns, and
counties under chapter 477A, (iii) disparity reduction aid paid
under section 273.1398, and (iv) income maintenance aids as
defined in section 273.1398, subdivision 1, paragraph (i). The
commissioner of revenue shall certify to the county auditor the
actual or estimated aids local governments will receive in the
following year.
(d) For taxes payable in 1989 only, the statement must show
the property's market value, as defined in section 272.03,
subdivision 8, and the amount attributable to section 273.13,
subdivisions 22 and 23, as "state paid homestead credit" and the
amount attributable to section 273.132 as "state paid
agricultural credit." The statement must also show the decrease
in tax attributable to that portion of the sum of the following
aids attributable to the property as "state paid tax relief":
(i) education aids under chapters 124 and 124A, (ii) local
government aid for cities, towns, and counties under chapter
477A, and (iii) disparity reduction aid under section 273.1398.
The commissioner of revenue shall certify to the county auditor
the actual or estimated aids local governments will receive in
the following year.
Real and personal property tax statements must contain the
following information in the order given in this paragraph. The
information must contain the current year tax information in the
right column with the corresponding information for the previous
year in a column on the left:
(1) the property's estimated market value as defined in
section 272.03, subdivision 8;
(2) the property's gross tax, calculated by multiplying the
property's gross tax capacity times the total tax capacity rate
and adding to the result the sum of the aids enumerated in
clause (3);
(3) a total of the following aids:
(i) education aids payable under chapters 124 and 124A;
(ii) local government aids for cities, towns, and counties
under chapter 477A; and
(iii) disparity reduction aid under section 273.1398;
(4) for homestead residential and agricultural properties,
the homestead and agricultural credit aid apportioned to the
property. This amount is obtained by multiplying the total tax
capacity rate by the difference between the property's gross and
net tax capacities under section 273.13. This amount must be
separately stated and identified as "homestead and agricultural
credit." For purposes of comparison with the previous year's
amount for the statement for taxes payable in 1990, the
statement must show the homestead credit for taxes payable in
1989 under section 273.13, and the agricultural credit under
section 273.132 for taxes payable in 1989;
(5) any credits received under sections 273.119; 273.123;
273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
473H.10; and
(6) the net tax payable in the manner required in paragraph
(a).
The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clauses (3)
and (4) that local governments will receive in the following
year. In the case of a county containing a city of the first
class, or a county that has adopted the provisions of section
81, the commissioner must certify this amount by September 1.
(d) For taxes payable in 1990, the commissioner shall
prescribe language notifying taxpayers that state aid dollars
were transferred from the city or town to the school district.
The language must notify taxpayers that the transfer results in
an increase in city or town taxes and a decrease in school taxes
that is unrelated to spending decisions of the city or town and
school district. The commissioner may prescribe that the amount
of the transfer be stated. The commissioner may provide that
the statement required under this clause be included as a
separate enclosure.
Sec. 54. Minnesota Statutes 1988, section 276.04,
subdivision 3, is amended to read:
Subd. 3. [MAILING OF TAX STATEMENTS.] The county treasurer
shall mail to taxpayers statements of their personal property
taxes due not later than February 15 April 15 for property taxes
payable in 1990 and March 31 thereafter, except in the case of
manufactured homes and sectional structures taxed as personal
property. Statements of the real property taxes due shall be
mailed not later than January 31 April 15 for property taxes
payable in 1990 and March 31 thereafter. The validity of the
tax shall not be affected by failure of the treasurer to mail
the statement. The taxpayer is defined as the owner who is
responsible for the payment of the tax.
Sec. 55. Minnesota Statutes 1988, section 276.09, is
amended to read:
276.09 [SETTLEMENT BETWEEN AUDITOR AND TREASURER.]
On March 5, and May 20 of each year, the county treasurer
shall make full settlement with the county auditor of all
receipts collected for all purposes, from the date of the last
settlement up to and including each day mentioned. The county
auditor shall, within 30 days after each the settlement, send an
abstract of it to the state auditor in the form prescribed by
the state auditor. At each the settlement the treasurer shall
make complete returns of the receipts on the current tax list,
showing the amount collected on account of the several funds
included in the list.
Settlement of receipts from May 20 to December 31 of each
year must be made as provided in section 276.111.
For purposes of this section, "receipts" includes all tax
payments received by the county treasurer on or before the
settlement date.
Sec. 56. Minnesota Statutes 1988, section 276.10, is
amended to read:
276.10 [APPORTIONMENT AND DISTRIBUTION OF FUNDS.]
On the settlement day in March and May of each year, the
county auditor and county treasurer shall distribute all
undistributed funds in the treasury. The funds must be
apportioned as provided by law, and credited to the state, town,
city, school district, special district and each county fund.
Within 20 days after the distribution is completed, the county
auditor shall report to the state auditor in the form prescribed
by the state auditor. The county auditor shall issue a warrant
for the payment of money in the county treasury to the credit of
the state, town, city, school district, or special districts on
application of the persons entitled to receive the payment. The
county auditor may apply the tax capacity rate from the year
before the year of distribution when apportioning and
distributing delinquent tax proceeds, if the composition of the
previous year's tax capacity rate between taxing districts is
not significantly different than the tax capacity rate that
existed for the year of the delinquency.
Sec. 57. Minnesota Statutes 1988, section 276.11,
subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] As soon as practical after the
March and May settlements settlement the county treasurer shall
pay to the state treasurer or the treasurer of a town, city,
school district, or special district, on the warrant of the
county auditor, all receipts of taxes levied by the taxing
district and deliver up all orders and other evidences of
indebtedness of the taxing district, taking triplicate receipts
for them. The treasurer shall file one of the receipts with the
county auditor, and shall return one by mail on the day of its
receipt to the clerk of the town, city, school district, or
special district to which payment was made. The clerk shall
keep the receipt in the clerk's office. Upon written request of
the taxing district, to the extent practicable, the county
treasurer shall make partial payments of amounts collected
periodically in advance of the next settlement and
distribution. A statement prepared by the county treasurer must
accompany each payment. It must state the years for which taxes
included in the payment were collected and, for each year, the
amount of the taxes and any penalties on the tax. Upon written
request of a taxing district, except school districts, the
county treasurer shall pay at least 70 percent of the estimated
collection within 30 days after the March and May settlement
dates date. Within seven business days after the due date, the
county treasurer shall pay to the treasurer of the school
districts 50 percent of the estimated collections arising from
taxes levied by and belonging to the school district. The
remaining 50 percent of the estimated collections must be paid
to the treasurer of the school district within the next seven
business days. The treasurer shall pay the balance of the
amounts collected to the state or to a municipal corporation or
other body within 60 days after the March and May settlement
dates date. After 45 days interest at an annual rate of eight
percent accrues and must be paid to the taxing district.
Interest must be paid upon appropriation from the general
revenue fund of the county. If not paid, it may be recovered by
the taxing district, in a civil action.
Sec. 58. Minnesota Statutes 1988, section 277.01,
subdivision 1, is amended to read:
Subdivision 1. All unpaid personal property taxes where
the amount is $50 or less shall be deemed delinquent on the
later of March 1 May 16 next after they become due or 30 days
after the postmark date on the envelope containing the property
tax statement, and thereupon a penalty of eight percent shall
attach and be charged upon all such taxes. When the amount of
such tax exceeds the sum of $50 the first half shall become
delinquent if not paid prior to March 1 or 30 days after the
postmark date on the envelope containing the property tax
statement, whichever is later, and thereupon a penalty of eight
percent shall attach on such unpaid first half. The second half
of a tax in excess of $50 shall become delinquent if not paid
prior to July 1 and thereupon a penalty of eight percent shall
attach on such unpaid second half. This section shall not apply
to class 2a property.
A county may provide by resolution that in the case of a
property owner that has multiple personal property tax
statements with the aggregate taxes exceeding $50, payments may
be made in installments as provided in this subdivision.
The county treasurer may accept payments of more or less
than the exact amount of a tax installment due. If the accepted
payment is less than the amount due, payments must be applied
first to the penalty accrued for the year the payment is made.
Acceptance of partial payment of tax does not constitute a
waiver of the minimum payment required as a condition for filing
an appeal under section 277.011 or any other law, nor does it
affect the order of payment of delinquent taxes under section
280.39.
Sec. 59. Minnesota Statutes 1988, section 277.02, is
amended to read:
277.02 [DELINQUENT LIST FILED IN COURT.]
On the last secular day of July, By June 15 of each year,
the county treasurer shall make a list of all personal property
taxes remaining delinquent July first May 16, and shall
immediately certify to and file the same with the court
administrator of the district court of the county, and upon such
filing the list shall be prima facie evidence that all of the
provisions of law in relation to the assessment and levy of such
taxes have been complied with.
Sec. 60. Minnesota Statutes 1988, section 277.05, is
amended to read:
277.05 [SHERIFF TO FILE LIST OF UNCOLLECTED TAXES.]
If the sheriff is unable, for want of goods and chattels
whereon to levy, to collect by a distress, or otherwise, the
taxes, or any part thereof, assessed upon the personal property
of any persons, the sheriff shall file with the court
administrator of the district court, on September first July 15
following, a list of such taxes, with an affidavit of the
sheriff, or of the deputy sheriff entrusted with the collection
thereof, stating that the affiant has made diligent search and
inquiry for goods and chattels from which to collect such taxes,
and is unable to collect the same. The list of such taxes as
they apply to manufactured homes shall be filed on December 1.
The sheriff shall note on the margin of such list the place to
which any delinquent taxpayer may have removed, with the date of
removal, if known. At the time of filing the list the sheriff
shall also return all the warrants with endorsements thereon
showing the doings of the sheriff or deputy in the premises, and
the court administrator shall file and preserve the same. On or
before September tenth thereafter, the court administrator shall
deliver such list and affidavit to the county treasurer, who
shall, by comparison of such list with the tax duplicates in the
treasurer's office, ascertain whether or not all personal
property taxes reported by the treasurer to the court
administrator as delinquent, except those included in such list,
have been paid into the treasurer's office, and shall attach to
the list a certificate stating whether or not all taxes reported
by the treasurer to the court administrator as delinquent and
not included in the list have been received, and stating the
items of such taxes, if any, as have been received. The court
administrator shall deliver such list and affidavit as they
apply to manufactured homes on or before December 10. The
treasurer shall deliver such list and affidavit, with the
certificate attached, to the county board at its first session
thereafter, which shall cancel such taxes as it is satisfied
cannot be collected. A copy of the tax list so revised, and
also a separate list of the taxes so canceled, shall be included
in the records of the proceedings of the board, and published in
full, as a part of the proceedings.
Sec. 61. Minnesota Statutes 1988, section 277.06, is
amended to read:
277.06 [CITATION TO DELINQUENTS; DEFAULT JUDGMENT.]
On October 20 September 5, or within ten days after the
adjournment of the county board, whichever occurs first, the
county auditor shall file a copy of such revised list with the
court administrator of the district court. The county auditor
shall file a copy of the revised list as it applies to
manufactured homes on January 20. Within ten days after the
list has been filed, the court administrator shall issue a
citation to each delinquent named in the list, stating the
amount of tax and penalty, and requiring such delinquent to
appear on a day to be set by the district court in the county,
appointed to be held at a time not less than 30 days after the
issuance of such citation, and show cause, if any there be, why
the delinquent should not pay the tax and penalty. The citation
shall be delivered for service to the sheriff of the county
where such person may at the time reside or be. If such person,
after service of the citation, fails to pay such tax, penalty,
and costs to the sheriff before the first day of the term, or on
such day to show cause as aforesaid, the court shall direct
judgment against the person for the amount of such tax, penalty,
and costs. When unable to serve the citation, the sheriff shall
return the same to the court administrator, with a return
thereto to that effect, and thereupon, or if the court decides
that the service of such citation made or attempted to be made,
or the issuance thereof by the court administrator, was illegal,
the court administrator shall issue another like citation,
requiring such delinquent to appear on the first day of the next
general term to be held in the county, and show cause as
aforesaid, and if the delinquent fails to pay or to show cause,
the court shall direct judgment as aforesaid. Whenever the
sheriff has been unable to serve any such citation theretofore
issued in any year or years, or whenever the court decides that
the service of any such citation theretofore made or attempted
to be made, or the issuance thereof by the court administrator,
was illegal, the court administrator shall issue another like
citation requiring such delinquent to appear, as in the case
last provided, and with like effect; provided, that all
citations other than the first shall be issued only on the
request of the county attorney.
Sec. 62. Minnesota Statutes 1988, section 277.13, is
amended to read:
277.13 [REMOVAL OF DELINQUENT; DUTY OF COUNTY AUDITOR.]
Within 30 days after June first By July 30, in each year,
the county auditor shall make out and forward to the court
administrator of the district court of any county to which any
delinquent personal property taxpayer may have removed a
statement of such delinquent taxes, specifying the value of the
property on which such taxes were levied and the amount of the
taxes, to which the auditor shall add an amount equal to 25
percent on the taxes levied if such delinquent taxpayer left the
county in which the taxes were levied after the day upon which
they became due, but not otherwise. On receipt of such
statement or account, the court administrator shall issue a
warrant to the sheriff of the county, who shall immediately
proceed to collect the same of the person so charged with the
taxes and percent, together with a court administrator's fee of
25 cents for each warrant so issued. The sheriff shall deliver
such warrant, with the doings thereunder, to the court
administrator, together with the amount of collections thereon.
The court administrator shall remit all taxes thus collected to
the treasurer of the county to which they belong, and at the
same time shall return the original statement to the auditor of
such county, certifying the amount of such collections, and, if
any taxes remain unpaid, the reason why they could not be
collected. The auditor shall charge the treasurer to whom such
remittance is made with the amount thereof, and cancel such
taxes from the list. Receipts shall be issued to the sheriff
for delinquent taxes collected and the payment shall be made in
the manner provided in section 276.05.
Sec. 63. Minnesota Statutes 1989 Supplement, section
469.033, subdivision 6, is amended to read:
Subd. 6. [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.]
All of the territory included within the area of operation of
any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in
this subdivision. All of the taxable property, both real and
personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied
under this subdivision. Subject to the consent by resolution of
the governing body of the city in and for which it was created,
an authority may levy each year a tax upon all taxable property
within that taxing district. The authority shall certify the
tax to the auditor of the county in which the taxing district is
located on or before October 10 five working days after December
20 in each year. The tax shall be extended, spread, and
included with and as a part of the general taxes for state,
county, and municipal purposes by the county auditor, to be
collected and enforced therewith, together with the penalty,
interest, and costs. As the tax, including any penalties,
interest, and costs, is collected by the county treasurer it
shall be accumulated and kept in a separate fund to be known as
the "housing and redevelopment project fund." The money in the
fund shall be turned over to the authority at the same time and
in the same manner that the tax collections for the city are
turned over to the city, and shall be expended only for the
purposes of sections 469.001 to 469.047. It shall be paid out
upon vouchers signed by the chair of the authority or an
authorized representative. The amount of the levy shall be an
amount approved by the governing body of the city, but shall not
exceed .0081 percent of taxable market value except that in
cities of the first class having a population of less than
200,000, the levy shall not exceed .00403 percent of taxable
market value. The authority may levy an additional levy, not to
exceed .0008 percent of taxable market value, to be used to
defray costs of providing informational service and relocation
assistance as set forth in section 462.445, subdivision 4. The
authority shall each year formulate and file a budget in
accordance with the budget procedure of the city in the same
manner as required of executive departments of the city or, if
no budgets are required to be filed, by August 1. The amount of
the tax levy for the following year shall be based on that
budget and shall be approved by the governing body.
Sec. 64. Minnesota Statutes 1988, section 469.171, is
amended by adding a subdivision to read:
Subd. 7a. [PROPERTY TAX CREDIT; APPROPRIATION.] There is
annually appropriated from the general fund to the commissioner
of revenue the amounts required to reimburse taxing
jurisdictions for the revenue lost due to the property tax
credit provided in subdivision 1, clause (4). Payment shall be
made to taxing jurisdictions in the same proportion that the ad
valorem tax is distributed. Payment shall be made to taxing
jurisdictions, other than school districts, at the times
provided in section 477A.015.
Sec. 65. Minnesota Statutes 1988, section 469.177,
subdivision 6, is amended to read:
Subd. 6. [REQUEST FOR CERTIFICATION OF NEW TAX INCREMENT
FINANCING DISTRICT.] A request for certification of a new tax
increment financing district pursuant to subdivision 1 or of a
modification to an existing tax increment financing district
pursuant to section 469.175, subdivision 4, received by the
county auditor on or before October 10 July 1 of the calendar
year shall be recognized by the county auditor in determining
tax capacity rates for the current and subsequent levy years.
Requests received by the county auditor after October 10 July 1
of the calendar year shall not be recognized by the county
auditor in determining tax capacity rates for the current levy
year but shall be recognized by the county auditor in
determining tax capacity rates for subsequent levy years.
Sec. 66. Minnesota Statutes 1988, section 473.167,
subdivision 4, is amended to read:
Subd. 4. [STATE REVIEW.] The council must certify its
property tax levy to the commissioner of revenue by August 1 of
the levy year. The commissioner of revenue shall annually
determine whether the property tax for the right-of-way
acquisition loan fund certified by the metropolitan council for
levy following the adoption of its budget is within the levy
limitation imposed by this section. To the extent practicable,
The determination must be completed prior to November September
1 of each year. If current information regarding market
valuation in any county is not transmitted to the commissioner
in a timely manner, the commissioner may estimate the current
market valuation within that county for purposes of making the
calculation.
Sec. 67. Minnesota Statutes 1988, section 473.249,
subdivision 2, is amended to read:
Subd. 2. The council must certify its property tax levy to
the commissioner of revenue by August 1 of the levy year. The
commissioner of revenue shall annually determine whether the ad
valorem property tax certified by the metropolitan council for
levy following the adoption of its budget is within the levy
limitation imposed by this section. To the extent practicable,
The determination shall be completed prior to December September
1 of each year. If current information regarding gross tax
capacity in any county is not transmitted to the commissioner in
a timely manner, the commissioner may estimate the current gross
tax capacity within that county for purposes of making the
calculation.
Sec. 68. Minnesota Statutes 1988, section 473.446,
subdivision 8, is amended to read:
Subd. 8. [STATE REVIEW.] The board must certify its
property tax levy to the commissioner of revenue by August 1 of
the levy year. The commissioner of revenue shall annually
determine whether the property tax for general purposes
certified by the regional transit board for levy following the
adoption of its budget is within the levy limitation imposed by
subdivision 1. The commissioner shall also annually determine
whether the transit tax imposed on all taxable property within
the metropolitan transit area but outside of the metropolitan
transit taxing district is within the levy limitation imposed by
subdivision 1a. To the extent practicable, The determination
must be completed prior to November September 1 of each year.
If current information regarding market valuation in any county
is not transmitted to the commissioner in a timely manner, the
commissioner may estimate the current market valuation within
that county for purposes of making the calculations.
Sec. 69. Minnesota Statutes 1988, section 473.711,
subdivision 5, is amended to read:
Subd. 5. [STATE REVIEW.] The commission must certify its
property tax levy to the commissioner of revenue by August 1 of
the levy year. The commissioner of revenue shall annually
determine whether the property tax certified by the metropolitan
mosquito control commission for levy following the adoption of
its budget is within the levy limitation imposed by subdivision
2. To the extent practicable, The determination must be
completed prior to November September 1 of each year. If
current information regarding market valuation in any county is
not transmitted to the commissioner in a timely manner, the
commissioner may estimate the current market valuation within
that county for purposes of making the calculation.
Sec. 70. Minnesota Statutes 1988, section 473F.05, is
amended to read:
473F.05 [GROSS TAX CAPACITY; 1988 AND SUBSEQUENT YEARS.]
On or before November 20 August 5 of 1988 and
each subsequent year, the assessors within each county in the
area shall determine and certify to the county auditor the gross
tax capacity in that year of commercial-industrial property
subject to taxation within each municipality in the county,
determined without regard to section 469.177, subdivision 3.
Sec. 71. Minnesota Statutes 1988, section 473F.06, is
amended to read:
473F.06 [INCREASE IN GROSS TAX CAPACITY.]
On or before September 1 July 15 of 1976 and
each subsequent year, the auditor of each county in the area
shall determine the amount, if any, by which the gross tax
capacity determined in the preceding year pursuant to section
473F.05, of commercial-industrial property subject to taxation
within each municipality in the auditor's county exceeds the
gross tax capacity in 1971 of commercial-industrial property
subject to taxation within that municipality. If a municipality
is located in two or more counties within the area, the auditors
of those counties shall certify the data required by section
473F.05 to the county auditor who is responsible under other
provisions of law for allocating the levies of that municipality
between or among the affected counties. That county auditor
shall determine the amount of the net excess, if any, for the
municipality under this section, and certify that amount under
section 473F.07. Notwithstanding any other provision of
sections 473F.01 to 473F.13 to the contrary, in the case of a
municipality which is designated on July 24, 1971, as a
redevelopment area pursuant to section 401(a)(4) of the Public
Works and Economic Development Act of 1965, Public Law Number
89-136, the increase in its gross tax capacity of
commercial-industrial property for purposes of this section
shall be determined in each year subsequent to the termination
of such designation by using as a base the gross tax capacity of
commercial-industrial property in that municipality in the year
following that in which such designation is terminated, rather
than the gross tax capacity of such property in 1971. The
increase in gross tax capacity determined by this section shall
be reduced by the amount of any decreases in the gross tax
capacity of commercial-industrial property resulting from any
court decisions, court related stipulation agreements, or
abatements for a prior year, and only in the amount of such
decreases made during the 12-month period ending on June 30 May
1 of the current assessment year, where such decreases, if
originally reflected in the determination of a prior year's
gross tax capacity under section 473F.05, would have resulted in
a smaller contribution from the municipality in that year. An
adjustment for such decreases shall be made only if the
municipality made a contribution in a prior year based on the
higher gross tax capacity of the commercial-industrial property.
Sec. 72. Minnesota Statutes 1988, section 473F.07,
subdivision 1, is amended to read:
Subdivision 1. Each county auditor shall certify the
determinations pursuant to sections 473F.05 and 473F.06 to the
administrative auditor on or before November 20 August 1 of each
year. The administrative auditor shall determine the sum of the
amounts certified pursuant to section 473F.06, and divide that
sum by 2-1/2. The resulting amount shall be known as the
"areawide gross tax capacity for ........(year)."
Sec. 73. Minnesota Statutes 1988, section 473F.07,
subdivision 2, is amended to read:
Subd. 2. The commissioner of revenue shall certify to the
administrative auditor, on or before November 20 August 10 of
each year, the population of each municipality for the second
preceding year, the proportion of that population which resides
within the area, the average fiscal capacity of municipalities
for the preceding year, and the fiscal capacity of each
municipality for the preceding year.
Sec. 74. Minnesota Statutes 1988, section 473F.07,
subdivision 5, is amended to read:
Subd. 5. The product of the multiplication prescribed by
subdivision 4 shall be known as the "areawide gross tax capacity
for ........(year) attributable to
..................(municipality)." The administrative auditor
shall certify such product to the auditor of the county in which
the municipality is located on or before November 25 August 15.
Sec. 75. Minnesota Statutes 1988, section 473F.08,
subdivision 3, is amended to read:
Subd. 3. On or before October 15 of 1976 and each
subsequent year, The county auditor shall apportion the levy of
each governmental unit in the auditor's county in the manner
prescribed by this subdivision. The auditor shall:
(a) by August 20, determine the areawide portion of the
levy for each governmental unit by multiplying the tax capacity
rate of the governmental unit for the preceding levy year times
the distribution value set forth in subdivision 2, clause (b);
and
(b) by September 5, determine the local portion of the
current year's levy by subtracting the resulting amount from
clause (a) from the governmental unit's current year's levy.
Sec. 76. Minnesota Statutes 1988, section 473F.08,
subdivision 5, is amended to read:
Subd. 5. On or before November 30 of 1972 and August 25 of
each subsequent year, the county auditor shall certify to the
administrative auditor that portion of the levy of each
governmental unit determined pursuant to subdivision 3, clause
(a). The administrative auditor shall then determine the tax
capacity rate sufficient to yield an amount equal to the sum of
such levies from the areawide gross tax capacity. On or before
December 5 September 1 of each year, the administrative auditor
shall certify said rate to each of the county auditors.
Sec. 77. Minnesota Statutes 1988, section 473F.09, is
amended to read:
473F.09 [ADJUSTMENTS IN DATES.]
If, by reason of the enactment of any other law, the date
by which the commissioner of revenue is required to certify to
the county auditors the records of proceedings affecting the
gross tax capacity of property is advanced to a date earlier
than November 15 June 30, the dates specified in sections
473F.07 and 473F.10 may be modified in the years to which such
other law applies in the manner and to the extent prescribed by
the administrative auditor.
Sec. 78. Minnesota Statutes 1988, section 473H.10,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF TAX; STATE REIMBURSEMENT.] (a)
After having determined the market value of all land valued
according to subdivision 2, the assessor shall compute the gross
tax capacity of those properties by applying the appropriate
classification percentages. When computing the rate of tax
pursuant to section 275.08, the county auditor shall include the
gross tax capacity 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 gross tax capacity 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 gross tax
capacity times 105 percent of the previous year's statewide
average tax capacity 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 may transfer money from the county conservation
account created in section 40A.152 to the county revenue fund to
reimburse the fund for the tax lost as a result of this
subdivision or to pay taxing jurisdictions within the county for
the tax lost. The county auditor shall certify to the
commissioner of revenue on or before June 1 the total amount of
tax lost to the county and taxing jurisdictions located within
the county as a result of this subdivision and the extent that
the tax lost exceeds funds available in the county conservation
account. Payments shall be made by the state as provided in
section 273.13, subdivision 15a, at the times provided in
section 477A.015 to each of the affected taxing jurisdictions,
other than school districts, in the same proportion that the ad
valorem tax is distributed if the county conservation account is
insufficient to make the reimbursement. There is annually
appropriated from the Minnesota conservation fund under section
40A.151 to the commissioner of revenue an amount sufficient to
make the reimbursement provided in this subdivision. If the
amount available in the Minnesota conservation fund is
insufficient, the balance that is needed is appropriated from
the general fund.
Sec. 79. Minnesota Statutes 1988, section 477A.011,
subdivision 3, is amended to read:
Subd. 3. [POPULATION.] Population means the population
established by the most recent federal census, by a special
census conducted under contract with the United States Bureau of
the Census, by a population estimate made by the metropolitan
council, or by a population estimate of the state demographer
made pursuant to section 116K.04, subdivision 4, clause (10),
whichever is the most recent as to the stated date of the count
or estimate for the preceding calendar year. The term "per
capita" refers to population as defined by this subdivision.
Sec. 80. Minnesota Statutes 1988, section 477A.011,
subdivision 3a, is amended to read:
Subd. 3a. [NUMBER OF HOUSEHOLDS.] Number of households
means the number of households established by the most recent
federal census, by a special census conducted under contract
with the United States bureau of the census, by an estimate made
by the metropolitan council, or by an estimate of the state
demographer made pursuant to section 116K.04, subdivision 4,
whichever is the most recent as to the stated date of the count
or estimate for the preceding calendar year.
Sec. 81. [APPROPRIATION.]
$1,840,000 is appropriated for fiscal year 1991 from the
general fund to the commissioner of revenue to reimburse
counties for costs of compliance with Minnesota Statutes,
section 275.065, for taxes payable in 1991. This appropriation
must be apportioned among the counties and distributed by the
commissioner of revenue in the same manner that the
appropriation in Laws 1988, chapter 719, article 5, section 85,
was apportioned and distributed.
Sec. 82. [APPROPRIATION; COMPLEMENT INCREASE.]
$60,000 is appropriated for fiscal year 1990 and $80,000
for fiscal year 1991 is appropriated from the general fund to
the commissioner of education for costs to administer Minnesota
Statutes, section 275.065. The complement of the education
finance and analysis section of the department of education is
increased by two.
Sec. 83. [PROPOSED PROPERTY TAXES; NOTICE FOR PROPERTY
TAXES PAYABLE IN 1990.]
Subdivision 1. [APPLICABILITY.] Notwithstanding Minnesota
Statutes, section 275.065, or any other law or charter to the
contrary, for property taxes levied in 1989 and payable in 1990,
proposed budgets and property tax levies shall be certified and
adopted under this section.
Subd. 2. [PROPOSED LEVY.] On or before November 15, 1989,
each taxing authority, other than a school district, shall adopt
a proposed budget and each taxing authority shall certify to the
county auditor the proposed property tax levy. For purposes of
this section, "taxing authority" includes all home rule and
statutory cities with a population over 2,500, counties, school
districts, the metropolitan council, and the metropolitan
regional transit commission.
Subd. 3. [FORM OF NOTICE.] (a) Each taxing authority shall
publish an advertisement at least five weekdays before a public
budget hearing or public property tax levy hearing that includes:
(1) the hour, date, and place of hearing; and the hour,
date, and place for a continuation of the hearing if the hearing
is not completed on the original date;
(2) the total dollar amount of the proposed property taxes
payable in 1990 to be levied by the taxing authority;
(3) the percentage of increase or decrease between the
proposed property tax payable in 1990 over the amount of
property taxes payable in 1989; and
(4) a statement inviting all citizens to attend and
participate in the hearing.
(b) In the case of cities, the notice may include a
statement that part of a percentage increase in property taxes
under paragraph (a), clause (3), reflects a transfer of state
aid dollars from the city to the school district to reduce
school district taxes, and is not caused by increased city
spending.
Subd. 4. [PUBLICATION OF NOTICE.] (a) Taxing authorities
located within the counties of Hennepin, Ramsey, Dakota,
Washington, Anoka, Carver, and Scott and not located partly
within any other county must publish the notice provided under
subdivision 3 in the community section of the Minneapolis Star
Tribune or the St. Paul Pioneer Press-Dispatch, whichever is
circulated to the greatest number of people within the taxing
authority. The notice must be published in the edition of the
community section that regularly publishes news of the taxing
authority area.
(b) All taxing authorities not included in paragraph (a),
except for cities with a population over 2,500, shall publish
the notice provided under subdivision 3 in the official
newspaper of the taxing authority.
(c) Cities with populations over 2,500 not included in
paragraph (a) shall publish the notice provided under
subdivision 3 in a daily newspaper that is printed in the city
for circulation in the city. If there is no daily newspaper
printed in the city, the notice must be published in the weekly
newspaper of the greatest circulation that is printed in the
city for circulation in the city. If there is no daily or
weekly newspaper printed in the city for circulation in the city
then the notice must be published in a daily newspaper printed
in the county in which the city is located for circulation
within the county. If there is no daily newspaper printed in
the county for circulation in the county, the notice must be
published in the weekly newspaper of the greatest circulation
that is printed in the county for circulation in the county.
(d) For purposes of paragraphs (b) and (c), the newspapers
in which the notices are published must meet the following
requirements:
(1) the newspaper must be sold;
(2) the newspaper must regularly contain news articles of
general interest;
(3) the newspaper must be delivered directly to subscribers
by mail or carrier; and
(4) if there is no newspaper of general circulation that is
sold within the taxing authority, the notice may be published in
a free newspaper if the free newspaper meets the requirements of
clauses (2) and (3).
Subd. 5. [PUBLIC HEARING.] On or before December 28, 1989,
the governing body of each taxing authority shall hold a public
hearing to adopt its final budget and property tax levy, or, in
the case of a school district, its property tax levy, for taxes
payable in 1990.
At the hearing, the taxing authority, other than a school
district, may amend the proposed budget and property tax levy
and must adopt a final budget and property tax levy, and the
school district may amend the proposed property tax levy and
must adopt a final property tax levy.
Subd. 6. [ADDITIONS TO LEVY.] (a) The adopted property tax
levy must not exceed the proposed levy, except by an amount up
to the sum of the following amounts:
(1) the amount of a school district levy whose voters
approved a referendum to increase taxes under section 124A.03,
subdivision 2, after the proposed levy was certified;
(2) the amount of a city or county levy approved by the
voters under section 275.58 after the proposed levy was
certified;
(3) the amount of a levy to pay principal and interest on
bonds issued or approved by the voters under section 475.58
after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural
disaster occurring after the proposed levy was certified, if
that amount is approved by the commissioner of revenue under
this subdivision; and
(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under this subdivision.
(b) A taxing authority may appeal to the commissioner of
revenue for authorization to levy an amount over the amount of
the proposed levy under clause (4) or (5). The taxing authority
must provide evidence satisfactory to the commissioner that it
has incurred costs for the purposes specified in this
subdivision. The commissioner may approve an increase in the
taxing authority's levy of up to the amount of costs incurred or
a lesser amount determined by the commissioner. The
commissioner's decision is final.
A levy addition may be made under this subdivision only if
the following costs incurred after the proposed levy is
certified are: (1) the unreimbursed costs to satisfy judgments
rendered against the taxing authority by a court of competent
jurisdiction in a tort action in excess of $50,000 or ten
percent of the current year's proposed certified levy whichever
is less; and (2) the costs incurred in clean up of a natural
disaster. For purposes of this subdivision, "natural disaster"
includes the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
causes such as earthquake, fire, flood, windstorm, wave action,
oil spill, water contamination, air contamination, or drought.
Subd. 7. [CERTIFICATION.] Each taxing authority shall
certify its final levy for property taxes payable in 1990 on or
before December 28, 1989.
Subd. 8. [APPROVAL OF COMMISSIONER.] Each taxing authority
shall certify to the commissioner of revenue its compliance with
this section. The certification must contain copies of the
advertisement required under subdivision 4, the final property
tax levy under subdivision 5, and any other information required
by the commissioner. If the commissioner determines that the
taxing authority has failed to substantially comply with this
section, the commissioner shall notify the county auditor. The
decision of the commissioner is final. When fixing rates under
section 275.08 for a taxing authority that has not complied with
this section, the county auditor must use the taxing authority's
1988 property tax levy.
Subd. 9. [NEW NOTICE AND HEARING REQUIRED.] Each taxing
authority must comply with the provisions of this section for
taxes levied in 1989. If a taxing authority has published a
notice or had a public hearing prior to the date of final
enactment of this act that does not comply with the provisions
of this section, or if a proposed levy or adopted levy will
change as a result of the provisions of this act, the taxing
authority must publish a correct notice and hold a hearing that
complies with the provisions of this section.
Sec. 84. [PRESCRIPTION OF TAX STATEMENTS; NOTIFICATION.]
At least 15 working days before the commissioner of revenue
prescribes the property tax statement for taxes payable in 1990
as required under Minnesota Statutes, section 276.04, the
commissioner shall notify the chairs of the senate committee on
taxes and tax laws and the house committee on taxes of the
property tax statement that the commissioner proposes to
prescribe. The commissioner shall consider the advice and
comments of the chairs before prescribing the statement.
Sec. 85. [REPEALER.]
Minnesota Statutes 1988, sections 270.81, subdivision 5;
and 275.065, subdivisions 2 and 5, are repealed.
Sec. 86. [EFFECTIVE DATES.]
Section 5 is effective for school district referenda held
after July 15, 1990, for property taxes levied in 1990, payable
in 1991, and thereafter.
Sections 1 to 4, 6 to 8, 10 to 12, 17, 19 to 21, 26 to 30,
41 to 48, 50 to 52, and 66 to 77 are effective for taxes levied
in 1990, payable in 1991, and thereafter.
The part of section 9 changing the meeting date of the
state board of equalization is effective for taxes levied in
1990, payable in 1991, and thereafter. The rest of section 9
and sections 13 to 16, 22 to 25, 78, and 82, 84, and 85 are
effective the day following final enactment.
Section 18 is effective for sales after January 1, 1990.
Sections 31 to 38 and 40 are effective for taxes levied in
1990, payable in 1991, and thereafter, except as otherwise
provided.
Sections 39, 49, 54 to 64, 79, and 80 are effective for
property taxes levied in 1989, payable in 1990, and thereafter.
Section 53 is effective for property taxes levied in 1989,
payable in 1990, and thereafter, except that the provision
requiring certification of aids by September 1, is effective for
taxes levied in 1990, payable in 1991, and thereafter.
Sections 65 and 81 are effective July 1, 1990.
Section 83 is effective only for taxes levied in 1989,
payable in 1990.
ARTICLE 10
INCOME AND BUSINESS TAXES
Section 1. Minnesota Statutes 1988, section 10A.31,
subdivision 5, is amended to read:
Subd. 5. In each calendar year the money in the general
account shall be allocated to candidates as follows:
(1) 21 percent for the offices of governor and lieutenant
governor together;
(2) 3.6 percent for the office of attorney general;
(3) 1.8 percent each for the offices of secretary of state,
state auditor, and state treasurer;
(4) In each calendar year during the period in which state
senators serve a four-year term, 23-1/3 percent for the office
of state senator and 46-2/3 percent for the office of state
representative;
(5) In each calendar year during the period in which state
senators serve a two-year term, 35 percent each for the offices
of state senator and state representative.
In each calendar year the money in each party account shall
be allocated as follows:
(1) 14 percent for the offices of governor and lieutenant
governor together;
(2) 2.4 percent for the office of attorney general;
(3) 1.2 percent each for the offices of secretary of state,
state auditor, and state treasurer;
(4) In each calendar year during the period in which state
senators serve a four-year term, 23-1/3 percent for the office
of state senator and 46-2/3 percent for the office of state
representative;
(5) In each calendar year during the period in which state
senators serve a two-year term, 35 percent each for the offices
of state senator and state representative;
(6) ten percent for the state committee of a political
party; money allocated to each state committee under this clause
must be deposited in a separate account and must be spent for
legitimate political party operations, including voter
education; the sample ballot; operations of precinct caucuses,
county unit conventions, and state conventions; and the
maintenance and programming of computers used to provide lists
of voters, party workers, party officers, patterns of voting,
and other data for use in political party activities only those
items enumerated in section 10A.275; money allocated to a state
committee under this clause must be paid to the committee by the
state treasurer as notified by the state ethical practices board
as it is received in the account, on a monthly or other basis
agreed to between the committee and the board., with payment on
the 15th day of the calendar month following the month in which
the tax returns were received, provided that these distributions
would be equal to the amount of money indicated in the
department of revenue's weekly unedited reports of income tax
returns for that month, subject to final annual adjustment and
settlement as indicated according to the certification by the
commissioner of revenue under subdivision 6. If the amount of
total payments received before September 15 is greater than the
amount certified by the commissioner of revenue on September 15,
the total amount of payments distributed between September 1 and
December 31 must be reduced by the amount of the overpayment.
To assure that moneys will be returned to the counties from
which they were collected, and to assure that the distribution
of those moneys rationally relates to the support for particular
parties or for particular candidates within legislative
districts, money from the party accounts for legislative
candidates shall be distributed as follows:
Each candidate for the state senate and state house of
representatives whose name is to appear on the ballot in the
general election shall receive money from the candidate's party
account set aside for candidates of the state senate or state
house of representatives, whichever applies, according to the
following formula;
For each county within the candidate's district the
candidate's share of the dollars allocated in that county to the
candidate's party account and set aside for that office shall be:
(a) The sum of the votes cast in the last general election
in that part of the county in the candidate's district for all
candidates of that candidate's party (i) whose names appeared on
the ballot in each voting precinct of the state and (ii) for the
state senate and state house of representatives, divided by
(b) The sum of the votes cast in that county in the last
general election for all candidates of that candidate's party
(i) whose names appeared on the ballot in each voting precinct
in the state and (ii) for the state senate and state house of
representatives, multiplied by
(c) The amount in the candidate's party account allocated
in that county and set aside for the candidates for the office
for which the candidate is running.
The sum of all the county shares calculated in the formula
above is the candidate's share of the candidate's party account.
In a year in which an election for the state senate occurs,
with respect to votes for candidates for the state senate only,
"last general election" means the last general election in which
an election for the state senate occurred.
For any party under whose name no candidate's name appeared
on the ballot in each voting precinct in the state in the last
general election, amounts in the party's account shall be
allocated based on (a) the number of people voting in the last
general election in that part of the county in the candidate's
district, divided by (b) the number of the people voting in that
county in the last general election, multiplied by (c) the
amount in the candidate's party account allocated in that county
and set aside for the candidates for the office for which the
candidate is running.
In a year in which the first election after a legislative
reapportionment is held, "the candidate's district" means the
newly drawn district, and voting data from the last general
election will be applied to the area encompassing the newly
drawn district notwithstanding that the area was in a different
district in the last general election.
If in a district there was no candidate of a party for the
state senate or state house of representatives in the last
general election, or if a candidate for the state senate or
state house of representatives was unopposed, the vote for that
office for that party shall be the average vote of all the
remaining candidates of that party in each county of that
district whose votes are included in the sums in clauses (a) and
(b). The average vote shall be added to the sums in clauses (a)
and (b) before the calculation is made for all districts in the
county.
Money from a party account not distributed to candidates
for state senator and representative in any election year shall
be returned to the general fund of the state. Money from a
party account not distributed to candidates for other offices in
an election year shall be returned to the party account for
reallocation to candidates as provided in clauses (1) to (6) in
the following year. Money from the general account refused by
any candidate shall be distributed to all other qualifying
candidates in proportion to their shares as provided in this
subdivision.
Sec. 2. Minnesota Statutes 1988, section 60A.14,
subdivision 1, is amended to read:
Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In
addition to the fees and charges provided for examinations, the
following fees must be paid to the commissioner for deposit in
the general fund:
(a) by township mutual fire insurance companies:
(1) for filing certificate of incorporation $25 and
amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10.
(b) by other domestic and foreign companies including
fraternals and reciprocal exchanges:
(1) for filing certified copy of certificate of articles of
incorporation, $100;
(2) for filing annual statement, $225;
(3) for filing certified copy of amendment to certificate
or articles of incorporation, $100;
(4) for filing bylaws, $75 or amendments thereto, $75;
(5) for each company's certificate of authority, $575,
annually.
(c) the following general fees apply:
(1) for each certificate, including certified copy of
certificate of authority, renewal, valuation of life policies,
corporate condition or qualification, $15;
(2) for each copy of paper on file in the commissioner's
office 50 cents per page, and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign
companies, $575;
(4) for receiving and forwarding each notice, proof of
loss, summons, complaint or other process served upon the
commissioner of commerce, as attorney for service of process
upon any nonresident agent or insurance company, including
reciprocal exchanges, $15 plus the cost of effectuating service
by certified mail, which amount must be paid by the party
serving the notice and may be taxed as other costs in the
action;
(5) for valuing the policies of life insurance companies,
one cent per $1,000 of insurance so valued, provided that the
fee shall not exceed $1,000 per year for any company. The
commissioner may, in lieu of a valuation of the policies of any
foreign life insurance company admitted, or applying for
admission, to do business in this state, accept a certificate of
valuation from the company's own actuary or from the
commissioner of insurance of the state or territory in which the
company is domiciled;
(6) for receiving and filing certificates of policies by
the company's actuary, or by the commissioner of insurance of
any other state or territory, $50;
(7) for issuing an initial license to an individual agent,
$20 per license, for issuing an initial agent's license to a
partnership or corporation, $50, and for issuing an amendment
(variable annuity) to a license, $20, and for renewal of
amendment, $20;
(8) for each appointment of an agent filed with the
commissioner, a domestic insurer shall remit $5 and all other
insurers shall remit $3;
(9) for renewing an individual agent's license, $20 per
year per license, and for renewing a license issued to a
corporation or partnership, $50 per year;
(10) for issuing and renewing a surplus lines agent's
license, $150;
(11) for issuing duplicate licenses, $5;
(12) for issuing licensing histories, $10;
(13) for filing forms and rates, $50 per filing;
(14) for annual renewal of surplus lines insurer license,
$300.
The commissioner shall adopt rules to define filings that
are subject to a fee.
Sec. 3. Minnesota Statutes 1988, section 60A.15,
subdivision 1, is amended to read:
Subdivision 1. [DOMESTIC AND FOREIGN COMPANIES.] (a) On or
before April 15, June 15, and December 15 of each year, every
domestic and foreign company, including town and farmers' mutual
insurance companies and domestic mutual insurance companies,
shall pay to the commissioner of revenue installments equal to
one-third of the insurer's total estimated tax for the current
year. For insurers other than town and farmers' mutual
insurance companies and mutual property and casualty insurance
companies other than those (i) principally writing workers'
compensation insurance, (ii) writing life insurance, or (iii)
whose total assets at the end of the preceding calendar year
exceed $1,600,000,000 Except as provided in paragraph (b),
installments must be based on a sum equal to two percent of the
premiums described in paragraph (b) (c).
(b) For town and farmers' mutual insurance companies and
mutual property and casualty insurance companies other than
those (i) principally writing workers' compensation insurance,
(ii) writing life insurance, or (iii) (ii) whose total assets at
the end of the preceding calendar year exceed $1,600,000,000,
the installments must be based on an amount equal to the
following percentages of the premiums described in
paragraph (b) (c):
(1) for premiums paid after December 31, 1987, and before
January 1, 1989, 1.5 percent;
(2) for premiums paid after December 31, 1988, and before
January 1, 1992, one percent; and
(3) (2) for premiums paid after December 31, 1991, one-half
of one percent.
(b) (c) Installments under paragraph (a) or (b) are
percentages of gross premiums less return premiums on all direct
business received by the insurer in this state, or by its agents
for it, in cash or otherwise, during such year, excepting
premiums written for marine insurance as specified in
subdivision 6.
(c) (d) Failure of a company to make payments of at least
one-third of either (1) the total tax paid during the previous
calendar year or (2) 80 percent of the actual tax for the
current calendar year shall subject the company to the penalty
and interest provided in this section.
Sec. 4. Minnesota Statutes 1988, section 60A.19,
subdivision 6, is amended to read:
Subd. 6. [RETALIATORY PROVISIONS.] (1) When by the laws of
any other state or country any taxes, fines, deposits,
penalties, licenses, or fees, other than assessments made by an
insurance guaranty association or similar organization, in
addition to or in excess of those imposed by the laws of this
state upon foreign insurance companies and their agents doing
business in this state, other than assessments made pursuant to
section 60C.06, are imposed on insurance companies of this state
and their agents doing business in that state or country, or
when any conditions precedent to the right to do business in
that state are imposed by the laws thereof, beyond those imposed
upon these foreign companies by the laws of this state, the same
taxes, fines, deposits, penalties, licenses, fees, and
conditions precedent shall be imposed upon every similar
insurance company of that state or country and their agents
doing or applying to do business in this state so long as these
foreign laws remain in force.
(2) In the event that a domestic insurance company, after
complying with all reasonable laws and rulings of any other
state or country, is refused permission by that state or country
to transact business therein after the commissioner of commerce
of Minnesota has determined that that company is solvent and
properly managed and after the commissioner has so certified to
the proper authority of that other state or country, then, and
in every such case, the commissioner may forthwith suspend or
cancel the certificate of authority of every insurance company
organized under the laws of that other state or country to the
extent that it insures, or seeks to insure, in this state
against any of the risks or hazards which that domestic company
seeks to insure against in that other state or country. Without
limiting the application of the foregoing provision, it is
hereby determined that any law or ruling of any other state or
country which prescribes to a Minnesota domestic insurance
company the premium rate or rates for life insurance issued or
to be issued outside that other state or country shall not be
reasonable.
(3) This section does not apply to insurance companies
organized or domiciled in a state or country, the laws of which
do not impose retaliatory taxes, fines, deposits, penalties,
licenses, or fees or which grant, on a reciprocal basis,
exemptions from retaliatory taxes, fines, deposits, penalties,
licenses, or fees to insurance companies domiciled in this state.
Sec. 5. Minnesota Statutes 1989 Supplement, section
290.01, subdivision 19c, is amended to read:
Subd. 19c. [CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE
INCOME.] For corporations, there shall be added to federal
taxable income:
(1) the amount of any deduction taken for federal income
tax purposes for income, excise, or franchise taxes based on net
income or related minimum taxes paid by the corporation to
Minnesota, another state, a political subdivision of another
state, the District of Columbia, or any foreign country or
possession of the United States;
(2) interest not subject to federal tax upon obligations
of: the United States, its possessions, its agencies, or its
instrumentalities; the state of Minnesota or any other state,
any of its political or governmental subdivisions, any of its
municipalities, or any of its governmental agencies or
instrumentalities; or the District of Columbia;
(3) exempt-interest dividends received as defined in
section 852(b)(5) of the Internal Revenue Code;
(4) the amount of any windfall profits tax deducted under
section 164 or 471 of the Internal Revenue Code;
(5) the amount of any net operating loss deduction taken
for federal income tax purposes under section 172 or 832(c)(10)
of the Internal Revenue Code or operations loss deduction under
section 810 of the Internal Revenue Code;
(6) the amount of any special deductions taken for federal
income tax purposes under sections 241 to 247 of the Internal
Revenue Code;
(7) losses from the business of mining, as defined in
section 290.05, subdivision 1, clause (a), that are not subject
to Minnesota income tax;
(8) the amount of any capital losses deducted for federal
income tax purposes under sections 1211 and 1212 of the Internal
Revenue Code;
(9) the amount of any charitable contributions deducted for
federal income tax purposes under section 170 of the Internal
Revenue Code;
(10) the exempt foreign trade income of a foreign sales
corporation under sections 921(a) and 291 of the Internal
Revenue Code;
(11) the amount of percentage depletion deducted under
sections 611 through 614 and 291 of the Internal Revenue Code;
(12) for certified pollution control facilities placed in
service in a taxable year beginning before December 31, 1986,
and for which amortization deductions were elected under section
169 of the Internal Revenue Code of 1954, as amended through
December 31, 1985, the amount of the amortization deduction
allowed in computing federal taxable income for those
facilities; and
(13) the amount of any deemed dividend from a foreign
operating corporation determined pursuant to section 290.17,
subdivision 4, paragraph (g).
Sec. 6. Minnesota Statutes 1988, section 290.01,
subdivision 29, is amended to read:
Subd. 29. [TAXABLE INCOME.] For tax years beginning after
December 31, 1986, the term "taxable income" means:
(1) for individuals, estates, and trusts, the same as
taxable net income;
(2) for corporations, including insurance companies, the
taxable net income less
(i) the net operating loss deduction under section 290.095;
(ii) the dividends received deduction under section 290.21,
subdivision 4; and
(iii) the charitable contribution deduction under section
290.21, subdivision 3.
Sec. 7. Minnesota Statutes 1989 Supplement, section
290.015, subdivision 3, is amended to read:
Subd. 3. [EXCEPTIONS.] (a) A person is not subject to tax
under this chapter if the person is engaged in the business of
selling tangible personal property and taxation of that person
under this chapter is precluded by Public Law Number 86-272,
United States Code, title 15, sections 381 to 384 or would be so
precluded except for the fact that the person stored tangible
personal property in a state licensed facility under chapter 231.
(b) Ownership of an interest in the following types of
property (including those contacts with this state reasonably
required to evaluate and complete the acquisition or disposition
of the property, the servicing of the property or the income
from it, the collection of income from the property, or the
acquisition or liquidation of collateral relating to the
property) shall not be a factor in determining whether the owner
is subject to tax under this chapter:
(1) an interest in a real estate mortgage investment
conduit, a real estate investment trust, or a regulated
investment company or a fund of a regulated investment company,
as those terms are defined in the Internal Revenue Code of 1986,
as amended through December 31, 1987;
(2) an interest in money market instruments or securities
as defined in section 290.191, subdivision 6, paragraphs (c) and
(d);
(3) an interest in a loan-backed, mortgage-backed, or
receivable-backed security representing either: (i) ownership
in a pool of promissory notes, mortgages, or receivables or
certificates of interest or participation in such notes,
mortgages, or receivables, or (ii) debt obligations or equity
interests which provide for payments in relation to payments or
reasonable projections of payments on the notes, mortgages, or
receivables, and which are issued by a financial institution or
by an entity substantially all of whose assets consist of
promissory notes, mortgages, receivables, or interests in them;
(4) an interest acquired from a person in any assets
described in section 290.191, subdivision 11, paragraphs (e) to
(l), and in which the payment obligations embodied in such
assets were solicited and entered into by persons independent
and not acting on behalf of the owner subject to the provisions
of paragraph (c), clause (2)(A);
(5) an interest acquired from a person in the right to
service, or collect income from any assets described in section
290.191, subdivision 11, paragraphs (e) to (l), and in which the
payment obligations embodied in such assets were solicited and
entered into by persons independent and not acting on behalf of
the owner subject to the provisions of paragraph (c), clause
(2)(A);
(6) an interest acquired from a person in a funded or
unfunded agreement to extend or guarantee credit whether
conditional, mandatory, temporary, standby, secured, or
otherwise, subject to the provisions of paragraph (c), clause
(2)(A);
(7) an interest of a person other than an individual,
estate, or trust, in any intangible, tangible, real, or personal
property acquired in satisfaction, whether in whole or in part,
of any asset embodying a payment obligation which is in default,
whether secured or unsecured, the ownership of an interest in
which would be exempt under the preceding provisions of this
subdivision, provided the property is disposed of within a
reasonable period of time; or
(7) (8) amounts held in escrow or trust accounts, pursuant
to and in accordance with the terms of property described in
this subdivision.
If the person is a member of the unitary group, paragraph
(b), clauses (2) to (7), do not apply to an interest acquired
from another member of the unitary group.
(c)(1) For purposes of paragraph (b), clauses (4) to (6),
an interest in the type of assets or credit agreements described
is deemed to exist at the time the owner becomes legally
obligated, conditionally or unconditionally, to fund, acquire,
renew, extend, amend, or otherwise enter into the credit
arrangement.
(2)(A) An owner has acquired an interest from a person in
paragraph (b), clauses (4) to (6), assets if:
(i) the owner at the time of the acquisition of the asset
does not own, directly or indirectly, 15 percent or more of the
outstanding stock or in the case of a partnership 15 percent or
more of the capital or profit interests of the person from whom
it acquired the asset;
(ii) the person from whom the owner acquired the asset
regularly sells, assigns, or transfers interests in paragraph
(b), clauses (4) to (6), assets during the 12 calendar months
immediately preceding the month of acquisition to three or more
persons; and
(iii) the person from whom the owner acquired the asset
does not sell, assign, or transfer 75 percent or more of its
paragraph (b), clauses (4) to (6), assets during the 12 calendar
months immediately preceding the month of acquisition to the
owner.
For purposes of determining indirect ownership under item (i),
the owner is deemed to own all stock, capital, or profit
interests owned by another person if the owner directly owns 15
percent or more of the stock, capital, or profit interests in
the other person. The owner is also deemed to own through any
intermediary parties all stock, capital, and profit interests
directly owned by a person to the extent there exists a 15
percent or more chain of ownership of stock, capital, or profit
interests between the owner, intermediary parties and the person.
(B) If the owner of the asset is a member of the unitary
group, paragraph (b), clauses (4) to (8), do not apply to an
interest acquired from another member of the unitary group. If
the interest in the asset was originally acquired from a
nonunitary member and at that time qualified as a section
290.015, subdivision 3, paragraph (b), asset, the foregoing
limitation does not apply.
Sec. 8. Minnesota Statutes 1989 Supplement, section
290.015, subdivision 4, is amended to read:
Subd. 4. [LIMITATIONS.] (a) This section does not subject
a trade or business to any regulation, including any tax, of any
local unit of government or subdivision of this state if the
trade or business does not own or lease tangible or real
property located within this state and has no employees or
independent contractors present in this state to assist in the
carrying on of the business.
(b) The purchase of tangible personal property or
intangible property or services by a person that conducts a
trade or business with the principal place of business outside
of Minnesota (, referred to as the "non-Minnesota person"), from
a person within Minnesota shall not be taken into account in
determining whether the non-Minnesota person is subject to the
taxes imposed by this chapter, except for services involving
either the direct solicitation of Minnesota customers or
relationships with Minnesota customers after sales are made.
This paragraph is subject to the limitations contained in
subdivision 3, paragraph (b), clauses (4) and (5) to (6).
(c) No contact with any Minnesota financial institution by
any financial institution with its principal place of business
outside Minnesota with respect to transactions described in
subdivision 3, or with respect to deposits received from or by a
Minnesota financial institution, shall be taken into account in
determining whether such a financial institution is subject to
the taxes imposed by this chapter. The fact of participation by
a Minnesota financial institution in a transaction which also
involves a borrower and a financial institution that conducts a
trade or business with its principal place of business outside
of Minnesota shall not be a factor in determining whether such
financial institution is subject to the taxes imposed by this
chapter. This paragraph does not apply to transactions between
or among members of the same unitary group.
Sec. 9. Minnesota Statutes 1988, section 290.02, is
amended to read:
290.02 [FRANCHISE TAX ON CORPORATIONS MEASURED BY NET
INCOME.]
An annual franchise tax on the exercise of the corporate
franchise to engage in contacts with this state that produce
gross income attributable to sources within this state is
imposed upon every corporation that so exercises its franchise
during the taxable year.
Contacts within this state do not include transportation in
interstate or foreign commerce, or both, by means of ships
navigating within or through waters that are made international
for navigation purposes by any treaty or agreement to which the
United States is a party.
The tax so imposed shall be is measured by such the
corporations' taxable income and alternative minimum tax
base taxable income for the taxable year for which the tax is
imposed, and computed in the manner and at the rates provided in
this chapter.
Sec. 10. Minnesota Statutes 1988, section 290.05,
subdivision 1, is amended to read:
Subdivision 1. The following corporations, individuals,
estates, trusts, and organizations shall be exempted from
taxation under this chapter, provided that every such person or
corporation claiming exemption under this chapter, in whole or
in part, must establish to the satisfaction of the commissioner
the taxable status of any income or activity:
(a) corporations, individuals, estates, and trusts engaged
in the business of mining or producing iron ore and other ores
the mining or production of which is subject to the occupation
tax imposed by section 298.01; but if any such corporation,
individual, estate, or trust engages in any other business or
activity or has income from any property not used in such
business it shall be subject to this tax computed on the net
income from such property or such other business or activity.
Royalty shall not be considered as income from the business of
mining or producing iron ore within the meaning of this section;
(b) the United States of America, the state of Minnesota or
any political subdivision of either agencies or
instrumentalities, whether engaged in the discharge of
governmental or proprietary functions.;
(c) any insurance company that is domiciled in a state or
country other than Minnesota that imposes retaliatory taxes,
fines, deposits, penalties, licenses, or fees and that does not
grant, on a reciprocal basis, exemption from such retaliatory
taxes to insurance companies or their agents domiciled in
Minnesota. "Retaliatory taxes" means taxes imposed on insurance
companies organized in another state or country that result from
the fact that an insurance company organized in the taxing
jurisdiction and doing business in the other jurisdiction is
subject to taxes, fines, deposits, penalties, licenses, or fees
in an amount exceeding that imposed by the taxing jurisdiction
upon an insurance company organized in the other state or
country and doing business to the same extent in the taxing
jurisdiction; and
(d) town and farmers' mutual insurance companies and mutual
property and casualty insurance companies, other than those (1)
writing life insurance or (2) whose total assets at the end of
the preceding calendar year exceed $1,600,000,000.
Sec. 11. Minnesota Statutes 1988, section 290.05,
subdivision 2, is amended to read:
Subd. 2. Except as provided in subdivisions 1 and 3,
organizations are exempted from, including specifically
nonprofit health service plan corporations, as defined in
chapter 62C, are subject to taxation under this chapter if
unless they are exempt from income taxation pursuant to
Subchapter F of the Internal Revenue Code. Township mutual
insurance companies, as defined in chapter 67A, and nonprofit
health service plan corporations, as defined in chapter 62C, are
subject to taxation under this chapter unless they are exempt
from taxation under subchapter F of the Internal Revenue Code of
1986.
Sec. 12. Minnesota Statutes 1989 Supplement, section
290.05, subdivision 3, is amended to read:
Subd. 3. (a) An organization exempt from taxation under
subdivision 2 shall, nevertheless, be subject to tax under this
chapter to the extent provided in the following provisions of
the Internal Revenue Code:
(i) section 527 (dealing with political organizations) and;
(ii) section 528 (dealing with certain homeowners
associations); and
(iii) sections 511 to 515 (dealing with unrelated business
income); but
notwithstanding this subdivision, shall be considered an
organization exempt from income tax for the purposes of any law
which refers to organizations exempt from income taxes.
(b) The tax shall be imposed on the taxable income of
political organizations or homeowner associations or the
unrelated business taxable income, as defined in section 512 of
the Internal Revenue Code, of organizations defined in section
511 of the Internal Revenue Code, provided that the tax is not
imposed on advertising revenues from a newspaper published by an
organization described in section 501(c)(4) of the Internal
Revenue Code. The tax shall be at the corporate rates. The tax
shall only be imposed on income and deductions assignable to
this state under sections 290.17 to 290.20. To the extent
deducted in computing federal taxable income, the deductions
contained in section 290.21 shall not be allowed in computing
Minnesota taxable net income.
Sec. 13. Minnesota Statutes 1988, section 290.06,
subdivision 1, is amended to read:
Subdivision 1. [COMPUTATION, CORPORATIONS.] (a) The
franchise tax imposed by this chapter upon corporations shall be
computed by applying to their taxable income the rate of 9.5
percent adjusted as provided in paragraph (b).
(b) For taxable years beginning after December 31, 1989,
the commissioner of revenue must adjust the rate provided in
paragraph (a) as provided in this paragraph. By December 15,
1989, the commissioner shall prepare a forecast of revenues
predicted to be raised for taxable years beginning in 1990 by
the franchise tax on corporations under this chapter for taxable
years beginning in 1990, including the tax under section
290.092, computed as if the tax were imposed under section
290.092, subdivisions 1 to 4, and the rate in effect in this
subdivision were 9.5 percent. The commissioner shall adjust the
rate provided in paragraph (a) so that the amount forecast to be
raised by the franchise tax on corporations under this chapter,
including the tax under section 290.092, subdivision 5, is equal
to the amount of the forecast computed as if the tax under
section 290.092, subdivisions 1 to 4, were in effect. The
adjustment of the tax rate by the commissioner under this
subdivision shall not be considered a "rule" and shall not be
subject to the administrative procedure act contained in chapter
14.
Sec. 14. Minnesota Statutes 1988, section 290.06, is
amended by adding a subdivision to read:
Subd. 1a. [SURTAX; CORPORATIONS.] (a) In addition to the
tax computed under subdivision 1 and section 290.0921, a surtax
is imposed upon corporations equal to a percentage of the sum of
the corporation's tax under subdivision 1 and section 290.0921.
(b) By May 31, 1990, the commissioner of revenue shall
determine the rate of the surtax to be imposed under paragraph
(a). The commissioner of revenue shall prepare a forecast of
the revenue predicted to be raised for taxable years beginning
in calendar years 1990 through 1992 by the franchise tax on
corporations under this chapter, including the tax under section
290.092, computed as if the tax were imposed under section
290.092, subdivisions 1 to 4a, and the rate under subdivision 1
were 9.5 percent. The commissioner shall set the rate of the
surtax so that the amount forecast to be raised by the surtax
(when added to the tax imposed under subdivision 1 and section
290.0921) equals the amount of revenue forecast to be raised if
the tax under section 290.092, subdivisions 1 to 4a, were in
effect and section 290.0921 did not apply.
(c) The rate determined under paragraph (b) applies to
taxable years beginning after December 31, 1989.
(d) If the rate determined under paragraph (b) is held
invalid, the surtax rate in effect for taxable years beginning
after December 31, 1989 is 7.5 percent.
Sec. 15. Minnesota Statutes 1989 Supplement, section
290.06, subdivision 2c, is amended to read:
Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES,
AND TRUSTS.] (a) The income taxes imposed by this chapter upon
married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code of 1986
as amended through December 31, 1987, must be computed by
applying to their taxable net income the following schedule of
rates:
if taxable income is: the tax is:
not over $19,000 6 percent
over $19,000 $1,140 plus 8 percent of
the excess over $19,000
plus an amount computed using the following schedule of rates:
if taxable income is: the tax is:
over $75,500, but not 0.5 percent of the
over $165,000 excess over $75,500
over $165,000 $447.50.
Married individuals filing separate returns, estates, and
trusts must compute their income tax by applying the above rates
to their taxable income, except that the income brackets will be
one-half of the above amounts. In the case of married
individuals filing separately, the additional 0.5 percent tax
provided in this subdivision shall be applied to taxable income
over $37,750, but not over $127,500.
(b) The income taxes imposed by this chapter upon unmarried
individuals must be computed by applying to taxable net income
the following schedule of rates:
if taxable income is: the tax is:
not over $13,000 6 percent
over $13,000 $780 plus 8 percent
of the excess over $13,000
plus an amount computed using the following schedule of rates:
if taxable income is: the tax is:
over $42,700, but not 0.5 percent of the
over $93,000 excess over $42,700
over $93,000 $251.50.
(c) The income taxes imposed by this chapter upon unmarried
individuals qualifying as a head of household as defined in
section 2(b) of the Internal Revenue Code of 1986, as amended
through December 31, 1987, must be computed by applying to
taxable net income the following schedule of rates:
if taxable income is: the tax is:
not over $16,000 6 percent
over $16,000 $960 plus 8 percent
of the excess over $16,000
plus an amount computed using the following schedule of rates:
if taxable income is: the tax is:
over $64,300, but not 0.5 percent of the
over $135,000 excess over $64,300
over $135,000 $353.50.
(d) In lieu of a tax computed according to the rates set
forth in this subdivision, the tax of any individual taxpayer
whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in
accordance with tables prepared and issued by the commissioner
of revenue based on income brackets of not more than $100. The
amount of tax for each bracket shall be computed at the rates
set forth in this subdivision, provided that the commissioner
may disregard a fractional part of a dollar unless it amounts to
50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the
entire year must compute the individual's Minnesota income tax
as provided in this subdivision. After the application of the
nonrefundable credits provided in this chapter, the tax
liability must then be multiplied by a fraction in which:
(1) The numerator is the individual's Minnesota source
federal adjusted gross income as defined in section 62 of the
Internal Revenue Code of 1986, as amended through December 31,
1987, after applying the allocation and assignability provisions
of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted
gross income as defined in section 62 of the Internal Revenue
Code of 1986, as amended through December 31, 1987, increased by
the addition required for interest income from non-Minnesota
state and municipal bonds under section 290.01, subdivision 19a,
clause (1).
(f) Any individual who has income which is included in the
computation of federal adjusted gross income but is not subject
to tax by Minnesota other than income specifically allowed as a
subtraction under section 290.01, subdivision 19b, shall compute
the tax in the same manner described in paragraph (e). The
numerator of the fraction under paragraph (e) is the
individual's Minnesota source federal adjusted gross income
reduced by the income not subject to Minnesota tax and the
denominator is the federal adjusted gross income.
Sec. 16. Minnesota Statutes 1988, section 290.06,
subdivision 21, is amended to read:
Subd. 21. [ALTERNATIVE MINIMUM TAX; FACTORS TAX.] (a) A
corporation is allowed a credit for alternative minimum tax
previously paid for any taxable year in which the corporation
has no tax liability under section 290.092, subdivision 1, and
has an alternative minimum tax credit carryover from a previous
year. The credit allowable in any taxable year shall be equal
to equals the lesser of (1) the excess of the tax under this
section for the taxable year over the amount computed under
section 290.092, subdivision 1, clause (1), for the taxable
year, or (2) the alternative minimum tax credit carryover to the
taxable year.
(b) The tax imposed under section 290.092, subdivision 1,
for any the taxable year is an alternative minimum tax credit
carryover to each of the five taxable years succeeding the
taxable year. The entire amount of the alternative minimum tax
credit must be carried to the earliest taxable year to which
such the amount may be carried. Any The unused portion of the
credit must be carried to the following taxable year. No credit
may be carried to a taxable year more than five years after the
taxable year in which the alternative minimum tax under section
290.092, subdivision 1, was paid.
(c) For taxable years beginning after December 31, 1989,
qualification for a credit and computation of the amount of the
credit for alternative minimum tax under paragraph (a) must be
determined by computing the alternative minimum tax that would
apply if section 290.092 were in effect for the taxable year.
Sec. 17. Minnesota Statutes 1988, section 290.067,
subdivision 2, is amended to read:
Subd. 2. [LIMITATIONS.] The credit for expenses incurred
for the care of each dependent shall not exceed $720 in any
taxable year, and the total credit for all dependents of a
claimant shall not exceed $1,440 in a taxable year. The maximum
total credit shall be reduced according to the amount of the
income of the claimant and a spouse, if any, as follows:
income up to $12,200 $13,350, $720 maximum for one
dependent, $1,440 for all dependents;
income over $12,200 $13,350, the maximum credit for one
dependent shall be reduced by $12 $18 for every $200 $350 of
additional income, $24 $36 for all dependents;
for income of $24,001 and over, no credit shall be received.
The commissioner shall construct and make available to
taxpayers tables showing the amount of the credit at various
levels of income and expenses. The tables shall follow the
schedule contained in this subdivision, except that the
commissioner may graduate the transitions between expenses and
income brackets.
Sec. 18. Minnesota Statutes 1988, section 290.067, is
amended by adding a subdivision to read:
Subd. 2b. [INFLATION ADJUSTMENT.] The dollar amount of the
income threshold at which the maximum credit begins to be
reduced under subdivision 2 must be adjusted for inflation. The
commissioner shall adjust the threshold amount by the percentage
determined under section 290.06, subdivision 2d, for the taxable
year.
Sec. 19. Minnesota Statutes 1989 Supplement, section
290.0802, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Adjusted gross income" means federal adjusted gross
income as used in section 22(d) of the Internal Revenue Code for
the taxable year, plus the ordinary income portion of a lump sum
distribution as defined in section 402(e) of the Internal
Revenue Code, and less pension, annuity, or disability benefits
paid under the Railroad Retirement Act of 1974 that are included
in federal gross income but are not subject to state taxation.
(b) "Disability income" means disability income as defined
in section 22(c)(2)(B)(iii) of the Internal Revenue Code.
(c) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1987.
(d) "Nontaxable retirement and disability benefits" means
the amount of pension, annuity, or disability benefits that
would be included in the reduction under section 22(c)(3) of the
Internal Revenue Code, but excluding tier one railroad
retirement benefits and pension, annuity, or disability benefits
paid under the Railroad Retirement Act of 1974 that are included
in federal gross income but are not subject to state taxation.
(e) "Qualified individual" means a qualified individual as
defined in section 22(b) of the Internal Revenue Code.
Sec. 20. Minnesota Statutes 1988, section 290.091,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by
this section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of
the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable
income as defined in section 55(b)(2) of the Internal Revenue
Code;
(2) the taxpayer's itemized deductions allowed in computing
federal alternative minimum taxable income, but excluding the
portion of the charitable contribution deduction that
constitutes an item of tax preference under section 57(a)(6) of
the Internal Revenue Code;
(3) to the extent not included in federal alternative
minimum taxable income, the amount of interest income as
provided by section 290.01, subdivision 19a, clause (1); less
the sum of
(i) interest income as defined in section 290.01,
subdivision 19b, clause (1);
(ii) an overpayment of state income tax as provided by
section 290.01, subdivision 19b, clause (2); and
(iii) the amount of investment interest paid or accrued
within the taxable year on indebtedness to the extent that the
amount does not exceed net investment income, as defined in
section 163(d)(4) of the Internal Revenue Code. Interest does
not include amounts deducted in computing federal adjusted gross
income.
In the case of an estate or trust, alternative minimum
taxable income must be computed as provided in section 59(c) of
the Internal Revenue Code.
(b) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1987.
(c) "Investment interest" means investment interest as
defined in section 163(d)(3) of the Internal Revenue Code.
(d) "Tentative minimum tax" equals six percent of
alternative minimum taxable income after subtracting the
exemption amount determined under subdivision 3.
(e) "Regular tax" means the tax that would be imposed under
this chapter (without regard to this section and section
290.032), reduced by the sum of the nonrefundable credits
allowed under this chapter.
(f) "Net minimum tax" means the minimum tax imposed by this
section.
Sec. 21. Minnesota Statutes 1988, section 290.091, is
amended by adding a subdivision to read:
Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit
is allowed against the tax imposed by this chapter on
individuals, trusts, and estates equal to the minimum tax credit
for the taxable year. The minimum tax credit equals the
adjusted net minimum tax for taxable years beginning after
December 31, 1988, reduced by the minimum tax credits allowed in
a prior taxable year. The credit may not exceed the excess (if
any) for the taxable year of
(1) the regular tax, over
(2) the greater of (i) the tentative alternative minimum
tax, or (ii) zero.
(b) The adjusted net minimum tax for a taxable year equals
the lesser of the net minimum tax or the excess (if any) of
(1) the tentative minimum tax, over
(2) six percent of the sum of
(i) adjusted gross income as defined in section 62 of the
Internal Revenue Code,
(ii) interest income as defined in section 290.01,
subdivision 19a, clause (1),
(iii) interest on specified private activity bonds, as
defined in section 57(a)(5) of the Internal Revenue Code, to the
extent not included under clause (ii),
(iv) depletion as defined in section 57(a)(1) of the
Internal Revenue Code, less
(v) the deductions provided in clauses (3)(i), (3)(ii), and
(3)(iii) of subdivision 2, paragraph (a), and
(vi) the exemption amount determined under subdivision 3.
In the case of an individual who is not a Minnesota
resident for the entire year, adjusted net minimum tax must be
multiplied by the fraction defined in section 290.06,
subdivision 2c, paragraph (e). In the case of a trust or
estate, adjusted net minimum tax must be multiplied by the
fraction defined under subdivision 4, paragraph (b).
Sec. 22. [290.0921] [CORPORATE ALTERNATIVE MINIMUM TAX
AFTER 1989.]
Subdivision 1. [TAX IMPOSED.] (a) In addition to the taxes
computed under this chapter without regard to this section, the
franchise tax imposed on corporations includes a tax equal to
the excess, if any, for the taxable year of:
(1) seven percent of Minnesota alternative minimum taxable
income less the credit allowed under section 290.35, subdivision
3; over
(2) the tax imposed under section 290.06, subdivision 1,
without regard to this section.
(b) If the sum of the corporation's Minnesota sales and
receipts, property, and payrolls, as defined in section 290.092,
subdivision 4, exceeds $5,000,000, the amount under paragraph
(a), clause (1) is the greater of
(1) $500 or
(2) the amount otherwise determined.
The provisions of this paragraph do not apply to
corporations subject to tax under section 60A.15, subdivision 1;
real estate investment trusts; and regulated investment
companies or a fund thereof.
Subd. 2. [DEFINITIONS.] (a) For purposes of this section,
the following terms have the meanings given them.
(b) "Alternative minimum taxable net income" is alternative
minimum taxable income,
(1) less the exemption amount, and
(2) apportioned or allocated to Minnesota under section
290.17, 290.191, or 290.20.
(c) The "exemption amount" is $40,000, reduced, but not
below zero, by 25 percent of the excess of alternative minimum
taxable income over $150,000.
(d) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1988.
(e) "Minnesota alternative minimum taxable income" is
alternative minimum taxable net income, less the deductions for
alternative tax net operating loss under subdivision 4;
charitable contributions under subdivision 5; and dividends
received under subdivision 6. The sum of the deductions under
this paragraph may not exceed 90 percent of alternative minimum
taxable net income. This limitation does not apply to a
deduction for dividends paid to or received from a corporation
which is subject to tax under section 290.35 or 290.36 and which
is a member of an affiliated group of corporations as defined by
the Internal Revenue Code.
Subd. 3. [ALTERNATIVE MINIMUM TAXABLE INCOME.]
"Alternative minimum taxable income" is Minnesota net income as
defined in section 290.01, subdivision 19, and includes the
adjustments and tax preference items in sections 56, 57, 58, and
59(d), (e), (f) and (h) of the Internal Revenue Code. If a
corporation files a separate company Minnesota tax return, the
minimum tax must be computed on a separate company basis. If a
corporation is part of a tax group filing a unitary return, the
minimum tax must be computed on a unitary basis. The following
adjustments must be made.
(1) For purposes of the depreciation adjustments under
section 56(a)(1) and 56(g)(4)(A) of the Internal Revenue Code,
the basis for depreciable property placed in service in a
taxable year beginning before January 1, 1990, is the adjusted
basis for federal income tax purposes, including any
modification made in a taxable year under section 290.01,
subdivision 19e, or Minnesota Statutes 1986, section 290.09,
subdivision 7, paragraph (c).
(2) The alternative tax net operating loss deduction under
sections 56(a)(4) and 56(d) of the Internal Revenue Code does
not apply.
(3) The special rule for 100 percent dividends under
section 56(g)(4)(C)(ii) of the Internal Revenue Code does not
apply.
(4) The special rule for dividends from section 936
companies under section 56(g)(4)(C)(iii) does not apply.
(5) The tax preference for depletion under section 57(a)(1)
of the Internal Revenue Code does not apply.
(6) The tax preference for intangible drilling costs under
section 57(a)(2) of the Internal Revenue Code must be calculated
without regard to the subtraction under section 290.01,
subdivision 19d, clause (4).
(7) The tax preference for tax exempt interest under
section 57(a)(5) of the Internal Revenue Code does not apply.
(8) The tax preference for charitable contributions of
appreciated property under section 57(a)(6) of the Internal
Revenue Code does not apply.
(9) For purposes of calculating the tax preference for
accelerated depreciation or amortization on certain property
placed in service before January 1, 1987, under section 57(a)(7)
of the Internal Revenue Code, the deduction allowable for the
taxable year is the deduction allowed under section 290.01,
subdivision 19e.
Items of tax preference must not be reduced below zero as a
result of the modifications in this subdivision.
Subd. 4. [ALTERNATIVE TAX NET OPERATING LOSS.] (a) An
alternative tax net operating loss deduction is allowed from
alternative minimum taxable net income equal to the net
operating loss deduction allowable for the taxable year under
section 290.095 with the following modifications:
(1) The amount of the net operating loss deduction must not
exceed 90 percent of alternative minimum taxable net income.
(2) In determining the amount of the net operating loss
deduction (i) the net operating loss under section 290.095 must
be adjusted as provided in paragraph (b), and (ii) for taxable
years beginning after December 31, 1989, section 290.095,
subdivision 3, must be applied by substituting "90 percent of
alternative minimum taxable net income" for "taxable net income."
(b) The following adjustments must be made to the
alternative tax net operating loss deduction under paragraph (a):
(1) For a loss year beginning after December 31, 1989, the
net operating loss for each year under section 290.095 must be
(i) determined with the adjustments provided in sections 56 and
58 of the Internal Revenue Code, as modified by subdivision 3
and (ii) reduced by the items of tax preference for the year
determined under section 57 of the Internal Revenue Code, as
modified by subdivision 3.
(2) For a loss year beginning before January 1, 1990, the
amount of the net operating loss that may be carried over to
taxable years beginning after December 31, 1989, equals the
amount which may be carried from the loss year to the first
taxable year of the taxpayer beginning after December 31, 1989.
Subd. 5. [CHARITABLE CONTRIBUTIONS.] (a) A deduction from
alternative minimum taxable net income is allowed equal to the
deduction for charitable contributions under section 290.21,
subdivision 3. The deduction allowable for capital gain
property is limited to the adjusted basis of the property as
defined in section 290.01, subdivision 19f. The term capital
gain property has the meaning given by section 170(b)(1)(C)(iv)
of the Internal Revenue Code, but does not include property to
which an election under section 170(b)(1)(C)(iii) of the
Internal Revenue Code applies.
(b) The amount of the deduction may not exceed 15 percent
of alternative minimum taxable net income less the deduction
allowed under subdivision 6.
Subd. 6. [DIVIDENDS RECEIVED.] (a) A deduction is allowed
from alternative minimum taxable net income equal to the
deduction for dividends received under section 290.21,
subdivision 4, for purposes of calculating taxable income under
section 290.01, subdivision 29.
(b) The amount of the deduction must not exceed 90 percent
of alternative minimum taxable net income. This limitation does
not apply to dividends paid to or received from a corporation
which is subject to tax under section 290.35 or 290.36 and which
is a member of an affiliated group of corporations as defined by
the Internal Revenue Code.
Subd. 7. [FOREIGN OPERATING COMPANIES.] The income and
deductions related to foreign operating companies, as defined in
section 290.01, subdivision 6b, that are used to calculate
Minnesota alternative minimum taxable income, are limited to the
amounts included for purposes of calculating taxable income
under section 290.01, subdivision 29.
Subd. 8. [CARRYOVER CREDIT.] (a) A corporation is allowed
a credit against qualified regular tax for qualified alternative
minimum tax previously paid. The credit is allowable only if
the corporation has no tax liability under section 290.0921 for
the taxable year and if the corporation has an alternative
minimum tax credit carryover from a previous year. The credit
allowable in a taxable year equals the lesser of
(1) the excess of the qualified regular tax for the taxable
year over the amount computed under subdivision 1, paragraph
(a), clause (1) multiplied by the sum of one plus the surtax
percentage under section 290.06, subdivision 1a, for the taxable
year or
(2) the carryover credit to the taxable year.
(b) For purposes of this subdivision, the following terms
have the meanings given.
(1) "Qualified alternative minimum tax" equals the amount
determined under subdivision 1 for the taxable year multiplied
by the sum of one plus the surtax percentage rate under section
290.06, subdivision 1a. In computing the amount of alternative
minimum tax
(i) the adjustment under section 56(c)(3) of the Internal
Revenue Code must not be made;
(ii) the full amount of the charitable contribution
deduction under section 290.21, subdivision 3, must be deducted
in computing Minnesota alternative minimum taxable income; and
(iii) in the case of a corporation subject to an occupation
tax under section 298.01 the tax preference for depletion under
section 57(a)(1) of the Internal Revenue Code must be deducted
in computing Minnesota alternative minimum taxable income.
(2) "Qualified regular tax" means the tax imposed under
section 290.06, subdivision 1, and a surtax imposed on that tax
under section 290.06, subdivision 1a.
(c) The qualified alternative minimum tax for a taxable
year is an alternative minimum tax credit carryover to each of
the five taxable years succeeding the taxable year. The entire
amount of the credit must be carried to the earliest taxable
year to which the amount may be carried. Any unused portion of
the credit must be carried to the following taxable year. No
credit may be carried to a taxable year in which alternative
minimum tax was paid.
Sec. 23. Minnesota Statutes 1988, section 290.095, is
amended by adding a subdivision to read:
Subd. 1a. [INSURANCE COMPANIES.] Insurance companies may
deduct for the taxable year the amount of any operations loss
deduction as provided in section 810, or a net operating loss
deduction as provided in sections 172 and 832(c)(10) of the
Internal Revenue Code of 1986 as amended through December 31,
1988, subject to the limitations provided in this section.
Sec. 24. Minnesota Statutes 1988, section 290.095,
subdivision 2, is amended to read:
Subd. 2. [DEFINED AND LIMITED.] (a) The term "net
operating loss" as used in this section shall mean a net
operating loss as defined in section 172(c) or 810(a), in the
case of life insurance companies, of the Internal Revenue Code
of 1986, as amended through December 31, 1987 1988, with the
modifications specified in subdivision 4. The deductions
provided in section 290.21 and the modification provided in
section 290.01, subdivision 19d, clause (11), cannot be used in
the determination of a net operating loss.
(b) The term "net operating loss deduction" as used in this
section means the aggregate of the net operating loss carryovers
to the taxable year, computed in accordance with subdivision 3.
The provisions of section 172(b) or 810(b), in the case of life
insurance companies, of the Internal Revenue Code of 1986, as
amended through December 31, 1987 1988, relating to the
carryback of net operating losses, do not apply.
Sec. 25. Minnesota Statutes 1989 Supplement, section
290.17, subdivision 2, is amended to read:
Subd. 2. [INCOME NOT DERIVED FROM CONDUCT OF A TRADE OR
BUSINESS.] The income of a taxpayer subject to the allocation
rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to
(f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from
labor or personal or professional services is assigned to this
state if, and to the extent that, the labor or services are
performed within it; all other income from such sources is
treated as income from sources without this state.
Severance pay shall be considered income from labor or
personal or professional services.
(2) In the case of an individual who is a nonresident of
Minnesota and who is an athlete or entertainer, income from
compensation for labor or personal services performed within
this state shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for an
individual who is a nonresident salaried athletic team employee
shall be determined by using a fraction in which the denominator
contains the total number of days in which the individual is
under a duty to perform for the employer, and the numerator is
the total number of those days spent in Minnesota; and
(ii) The amount of income to be assigned to Minnesota for
an individual who is a nonresident, and who is an athlete or
entertainer not listed in clause (i), for that person's athletic
or entertainment performance in Minnesota shall be determined by
assigning to this state all income from performances or athletic
contests in this state.
(3) For purposes of this section, amounts received by a
nonresident from the United States, its agencies or
instrumentalities, the Federal Reserve Bank, the state of
Minnesota or any of its political or governmental subdivisions,
or a Minnesota volunteer firefighters' relief association, by
way of payment as a pension, public employee retirement benefit,
or any combination of these, or as a retirement or survivor's
benefit made from a plan qualifying under section 401, 403, 408,
or 409, or as defined in section 403(b) or 457 of the Internal
Revenue Code of 1986, as amended through December 31, 1987, are
not considered income derived from carrying on a trade or
business or from performing personal or professional services in
Minnesota, and are not taxable under this chapter.
(b) Income or gains from tangible property located in this
state that is not employed in the business of the recipient of
the income or gains must be assigned to this state.
(c) Except upon the sale of a partnership interest or the
sale of stock of an S corporation, income or gains from
intangible personal property not employed in the business of the
recipient of the income or gains must be assigned to this state
if the recipient of the income or gains is a resident of this
state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to
this state in the ratio of the original cost of partnership
tangible property in this state to the original cost of
partnership tangible property everywhere, determined at the time
of the sale. If more than 50 percent of the value of the
partnership's assets consists of intangibles, gain or loss from
the sale of the partnership interest is allocated to this state
in accordance with the sales factor of the partnership for its
first full tax period immediately preceding the tax period of
the partnership during which the partnership interest was sold.
Gain on the sale of stock held in an S corporation is
allocable to this state in the ratio of the original cost of
tangible property of the S corporation within this state to the
original cost of tangible property of the S corporation
everywhere.
Gain on the sale of goodwill or income from a covenant not
to compete that is connected with a business operating all or
partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year
of sale was assignable to Minnesota under subdivision 3.
(d) Income from the operation of a farm shall be assigned
to this state if the farm is located within this state and to
other states only if the farm is not located in this state.
(e) Income from winnings on Minnesota pari-mutuel betting
tickets, the Minnesota state lottery, and lawful gambling as
defined in section 349.12, subdivision 2, conducted within the
boundaries of the state of Minnesota shall be assigned to this
state.
(f) All items of gross income not covered in paragraphs (a)
to (e) and not part of the taxpayer's income from a trade or
business shall be assigned to the taxpayer's domicile.
Sec. 26. Minnesota Statutes 1988, section 290.17, is
amended by adding a subdivision to read:
Subd. 7. [ALLOCATION AND APPORTIONMENT OF CERTAIN FARM
INCOME BY C CORPORATIONS.] Notwithstanding any other
subdivision, income to a taxpayer from the operation of a farm
by a C corporation is assigned to this state and other states
and countries under subdivision 3, the unitary business
principle in subdivision 4, and the allocation provisions of
sections 290.191 and 290.20, if:
(1) the farm operation provides material value added to an
agricultural product by processing, packaging, grading,
promotion, or distribution;
(2) the farm operation is industrial, manufacturing, or
distributing under the United States Department of Commerce
Standard Industrial Classification criteria;
(3) a material part of the income is attributable directly
or indirectly to testing, research, genetic, or biological
selection, genetic engineering, or creation or licensing of
patents, copyrights, trademarks, or other intellectual property;
or
(4) a material part of the income is derived from an
activity that would not in itself be income from farming if
performed by another person not otherwise engaged in farming.
Sec. 27. Minnesota Statutes 1989 Supplement, section
290.191, subdivision 6, is amended to read:
Subd. 6. [DETERMINATION OF RECEIPTS FACTOR FOR FINANCIAL
INSTITUTIONS.] (a) For purposes of this section, the rules in
this subdivision and subdivisions 7 and 8 apply in determining
the receipts factor for financial institutions.
(b) "Receipts" for this purpose means gross income,
including net taxable gain on disposition of assets, including
securities and money market instruments, when derived from
transactions and activities in the regular course of the
taxpayer's trade or business.
(c) "Money market instruments" means federal funds sold and
securities purchased under agreements to resell, commercial
paper, banker's acceptances, and purchased certificates of
deposit and similar instruments to the extent that the
instruments are reflected as assets under generally accepted
accounting principles.
(d) "Securities" means United States Treasury securities,
obligations of United States government agencies and
corporations, obligations of state and political subdivisions,
corporate stock and other securities, participations in
securities backed by mortgages held by United States or state
government agencies, loan-backed securities and similar
investments to the extent the investments are reflected as
assets under generally accepted accounting principles.
(e) Receipts from the lease or rental of real or tangible
personal property, including both finance leases and true
leases, must be attributed to this state if the property is
located in this state. Tangible personal property that is
characteristically moving property, such as motor vehicles,
rolling stock, aircraft, vessels, mobile equipment, and the
like, is considered to be located in a state if:
(1) the operation of the property is entirely within the
state; or
(2) the operation of the property is in two or more states,
but the principal base of operations from which the property is
sent out is in the state.
(f) Interest income and other receipts from assets in the
nature of loans that are secured primarily by real estate or
tangible personal property must be attributed to this state if
the security property is located in this state under the
principles stated in paragraph (e).
(g) Interest income and other receipts from consumer loans
not secured by real or tangible personal property that are made
to residents of this state, whether at a place of business, by
traveling loan officer, by mail, by telephone or other
electronic means, must be attributed to this state.
(h) Interest income and other receipts from commercial
loans and installment obligations that are unsecured by real or
tangible personal property or secured by intangible property
must be attributed to this state if the proceeds of the loan are
to be applied in this state. If it cannot be determined where
the funds are to be applied, the income and receipts are
attributed to the state in which the office of the borrower from
which the application would be made in the regular course of
business is located. If this cannot be determined, the
transaction is disregarded in the apportionment formula.
(i) Interest income and other receipts from a participating
financial institution's portion of participation and syndication
loans must be attributed under paragraphs (e) to (h). A
participation loan is an arrangement in which a lender makes a
loan to a borrower and then sells, assigns, or otherwise
transfers all or a part of the loan to a purchasing financial
institution. A syndication loan is a multibank loan transaction
in which all the lenders are named as parties to the loan
documentation, are known to the borrower, and have privity of
contract with the borrower.
(j) Interest income and other receipts including service
charges from financial institution credit card and travel and
entertainment credit card receivables and credit card holders'
fees must be attributed to the state to which the card charges
and fees are regularly billed.
(k) Merchant discount income derived from financial
institution credit card holder transactions with a merchant must
be attributed to the state in which the merchant is located. In
the case of merchants located within and outside the state, only
receipts from merchant discounts attributable to sales made from
locations within the state are attributed to this state. It is
presumed, subject to rebuttal, that the location of a merchant
is the address shown on the invoice submitted by the merchant to
the taxpayer.
(l) Receipts from the performance of fiduciary and other
services must be attributed to the state in which the benefits
of the services are consumed. If the benefits are consumed in
more than one state, the receipts from those benefits must be
apportioned to this state pro rata according to the portion of
the benefits consumed in this state. If the extent to which the
benefits of services are consumed in this state is not readily
determinable, the benefits of the services shall be deemed to be
consumed at the location of the office of the customer from
which the services were ordered in the regular course of the
customer's trade or business. If the ordering office cannot be
determined, the benefits of the services shall be deemed to be
consumed at the office of the customer to which the services are
billed.
(m) Receipts from the issuance of travelers checks and
money orders must be attributed to the state in which the checks
and money orders are purchased.
(n) Receipts from investments of a financial institution in
securities of this state, its political subdivisions, agencies,
and instrumentalities must be attributed to this state.
(o) Receipts from a financial institution's interest in any
property described in section 290.015, subdivision 3, paragraph
(b), is not included in the numerator or the denominator of the
receipts factor provided the financial institution's activities
within this state with respect to any interest in the property
are limited in the manner provided in section 290.015,
subdivision 3, paragraph (b). If a financial institution is
subject to tax under this chapter, its interest in property
described in section 290.015, subdivision 3, paragraph (b), is
included in the receipts factor in the same manner as assets in
the nature of securities or money market instruments are
included under paragraph (n) and subdivision 7.
Sec. 28. Minnesota Statutes 1988, section 290.21,
subdivision 4, is amended to read:
Subd. 4. (a)(1) Eighty percent of dividends received by a
corporation during the taxable year from another corporation, in
which the recipient owns 20 percent or more of the stock, by
vote and value, not including stock described in section
1504(a)(4) of the Internal Revenue Code of 1986, as amended
through December 31, 1987, when the corporate stock with respect
to which dividends are paid does not constitute the stock in
trade of the taxpayer or would not be included in the inventory
of the taxpayer, or does not constitute property held by the
taxpayer primarily for sale to customers in the ordinary course
of the taxpayer's trade or business, or when the trade or
business of the taxpayer does not consist principally of the
holding of the stocks and the collection of the income and gains
therefrom.; and
(2)(i) The remaining 20 percent of dividends if the
dividends received are the stock in an affiliated company
transferred in an overall plan of reorganization and the
dividend is eliminated in consolidation under Treasury
Department Regulation 1.1502-14(a), as amended through December
31, 1988; or
(ii) The remaining 20 percent of dividends if the dividends
are received from a corporation which is subject to tax under
section 290.35 or 290.36 and which is a member of an affiliated
group of corporations as defined by the Internal Revenue Code of
1986, as amended through December 31, 1988, and the dividend is
eliminated in consolidation under Treasury Department Regulation
1.1502-14(a), as amended through December 31, 1988, or is
deducted under an election under section 243(b) of the Internal
Revenue Code of 1986, as amended through December 31, 1988.
(b) Seventy percent of dividends received by a corporation
during the taxable year from another corporation in which the
recipient owns less than 20 percent of the stock, by vote or
value, not including stock described in section 1504(a)(4) of
the Internal Revenue Code of 1986 as amended through December
31, 1987, when the corporate stock with respect to which
dividends are paid does not constitute the stock in trade of the
taxpayer, or does not constitute property held by the taxpayer
primarily for sale to customers in the ordinary course of the
taxpayer's trade or business, or when the trade or business of
the taxpayer does not consist principally of the holding of the
stocks and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision
shall be allowed only with respect to dividends that are
included in a corporation's Minnesota taxable net income for the
taxable year.
The dividend deduction provided in this subdivision does
not apply to a dividend from a corporation which, for the
taxable year of the corporation in which the distribution is
made or for the next preceding taxable year of the corporation,
is a corporation exempt from tax under section 501 of the
Internal Revenue Code of 1986, as amended through December 31,
1987.
The dividend deduction provided in this subdivision applies
to the amount of regulated investment company dividends only to
the extent determined under section 854(b) of the Internal
Revenue Code of 1986, as amended through December 31, 1987.
The dividend deduction provided in this subdivision shall
not be allowed with respect to any dividend for which a
deduction is not allowed under the provisions of section 246(c)
of the Internal Revenue Code of 1986, as amended through
December 31, 1987.
(d) If dividends received by a corporation that does not
have nexus with Minnesota under the provisions of Public Law
Number 86-272 are included as income on the return of an
affiliated corporation permitted or required to file a combined
report under section 290.34, subdivision 2, then for purposes of
this subdivision the determination as to whether the trade or
business of the corporation consists principally of the holding
of stocks and the collection of income and gains therefrom shall
be made with reference to the trade or business of the
affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not
apply if the dividends are paid by a FSC as defined in section
922 of the Internal Revenue Code of 1986, as amended through
December 31, 1987.
(f) If one or more of the members of the unitary group
whose income is included on the combined report received a
dividend, the deduction under this subdivision for each member
of the unitary business required to file a return under this
chapter is the product of: (1) 100 percent of the dividends
received by members of the group; (2) 80 percent or 70 percent,
the percentage allowed pursuant to paragraph (a) or (b); and (3)
the percentage of the taxpayer's business income apportionable
to this state for the taxable year under section 290.191 or
290.20.
Sec. 29. Minnesota Statutes 1988, section 290.35,
subdivision 1, is amended to read:
Subdivision 1. [COMPUTATION OF TAXABLE NET INCOME.]
The taxable net income of insurance companies taxable under this
chapter shall be computed as follows:
(a) Each such life insurance company shall report to the
commissioner the net income returned by it for the taxable year
to the United States under the provisions of the act of
congress, known as the revenue act of 1936, or that it would be
required to return as net income thereunder if it were in
effect. Notwithstanding the provisions of the Revenue Act of
1936, whether or not an insurance company is exempt from
taxation must be determined under section 290.05. life insurance
company taxable net income as defined in section 801(b) of the
Internal Revenue Code of 1986, as amended through December 31,
1988, incorporating any elections made by the taxpayer in
determining life insurance company taxable income for federal
income tax purposes.
(b) Each insurance company other than a life insurance
company shall report to the commissioner its federal taxable
income as defined in section 832 of the Internal Revenue Code of
1986, as amended through December 31, 1988, or its taxable
investment income as defined in section 832 of the Internal
Revenue Code of 1986, as amended through December 31, 1988,
incorporating any elections made by the taxpayer in accordance
with the Internal Revenue Code in determining federal taxable
income or taxable investment income for federal income tax
purposes.
(c) The life insurance company taxable net income, federal
taxable income, or taxable investment income so reported is
subject to the modifications provided in section 290.01,
subdivisions 19c to 19f.
Sec. 30. Minnesota Statutes 1988, section 290.35,
subdivision 4, is amended to read:
Subd. 4. [NONPROFIT HEALTH SERVICE PLAN CORPORATION.] For
purposes of this section, a nonprofit health service corporation
is not an insurance company and the taxable income of a
nonprofit health service plan corporation must be determined as
provided under section 833 of the Internal Revenue Code of 1986,
as amended through December 31, 1988, and section 290.01,
subdivisions 19c and 19d to 19f.
Sec. 31. Minnesota Statutes 1988, section 290.35, is
amended by adding a subdivision to read:
Subd. 5. [DEFINITION OF INSURANCE COMPANY.] For purposes
of this section, the terms "insurance company," "life insurance
company," and "insurance company other than life" have the
meanings given in the Internal Revenue Code of 1986, as amended
through December 31, 1988.
Sec. 32. Minnesota Statutes 1988, section 290.37,
subdivision 1, is amended to read:
Subdivision 1. [PERSONS MAKING RETURNS.] (a) A taxpayer
shall file a return for each taxable year the taxpayer is
required to file a return under section 6012 of the Internal
Revenue Code of 1986, as amended through December 31, 1987,
except that an individual who is not a Minnesota resident for
any part of the year is not required to file a Minnesota income
tax return if the individual's gross income derived from
Minnesota sources under sections 290.081, paragraph (a), and
290.17, is less than the filing requirements for a single
individual who is a full year resident of Minnesota.
The decedent's final income tax return, and all other
income tax returns for prior years where the decedent had gross
income in excess of the minimum amount at which an individual is
required to file and did not file, shall be filed by the
decedent's personal representative, if any. If there is no
personal representative, the return or returns shall be filed by
the transferees as defined in section 290.29, subdivision 3, who
receive any property of the decedent.
The trustee or other fiduciary of property held in trust
shall file a return with respect to the taxable net income of
such trust if that exceeds an amount determined by the
commissioner if such trust belongs to the class of taxable
persons.
Every corporation shall file a return, if the corporation
is subject to the state's jurisdiction to tax under section
290.014, subdivision 5, except that a foreign operating
corporation as defined in section 290.01, subdivision 6b, is not
required to file a return. The return in the case of a
corporation must be signed by a person designated by the
corporation. The commissioner may shall adopt rules for the
filing of one return on behalf of the members of an affiliated
group of corporations that are required to file a combined
report if the affiliated group includes a bank subject to tax
under this chapter. Members of an affiliated group that elect
to file one return on behalf of the members of the group under
rules adopted by the commissioner may modify or rescind the
election by filing the form required by the commissioner.
The receivers, trustees in bankruptcy, or assignees
operating the business or property of a taxpayer shall file a
return with respect to the taxable net income of such taxpayer
if a return is required.
(b) Such return shall (1) contain a written declaration
that it is correct and complete, and (2) shall contain language
prescribed by the commissioner providing a confession of
judgment for the amount of the tax shown due thereon to the
extent not timely paid.
(c) An exempt organization that is subject to tax on
unrelated business income under section 290.05, subdivision 3,
must file a return for each taxable year in which the
organization is required to file a return under section 6012 of
the Internal Revenue Code of 1986, as amended through December
31, 1988, because of the receipt of unrelated business income.
If an organization is required to file a return under federal
law but has no federal tax liability for the taxable year, the
commissioner may provide that the filing requirement under this
paragraph is satisfied by filing a copy of the taxpayer's
federal return.
Sec. 33. Minnesota Statutes 1988, section 290.38, is
amended to read:
290.38 [RETURNS OF MARRIED PERSONS.]
A husband and wife must file a joint Minnesota income tax
return if they filed a joint federal income tax return. If a
joint return is made the tax shall be computed on the aggregate
income and the liability with respect to the tax shall be joint
and several; provided that a spouse who is relieved of a
liability attributable to a substantial underpayment under
section 6013(e) of the Internal Revenue Code of 1986, as amended
through December 31, 1987, shall also be relieved of the state
tax liability on the substantial underpayment.
In the case of individuals who were a husband and wife
prior to the dissolution of their marriage, for tax liabilities
reported on a joint or combined return, the liability of each
person is limited to the proportion of the tax due on the return
that equals that person's proportion of the total tax due if the
husband and wife filed separate returns for the taxable year.
This provision is effective only when the commissioner receives
written notice of the marriage dissolution from the husband or
wife. No refund may be claimed by an ex-spouse for any taxes
paid before receipt by the commissioner of the written notice.
If the husband and wife have elected to file separate
federal income tax returns they must file separate Minnesota
income tax returns. This election to file a joint or separate
returns must be changed if they change their election for
federal purposes. In the event taxpayers desire to change their
election, such change shall be done in the manner and on such
form as the commissioner shall prescribe by rule.
The determination of whether an individual is married shall
be made under provisions of section 7703 of the Internal Revenue
Code of 1986, as amended through December 31, 1987.
Sec. 34. Minnesota Statutes 1989 Supplement, section
290.92, subdivision 4b, is amended to read:
Subd. 4b. [WITHHOLDING BY PARTNERSHIPS.] (a) A partnership
shall deduct and withhold a tax as provided in paragraph (b)
when the partnership pays or credits amounts to any of its
nonresident individual partners on account of their distributive
shares of partnership income for a taxable year of the
partnership.
(b) The amount of tax withheld is determined by multiplying
the partner's distributive share allocable to Minnesota under
section 290.17, paid or credited during the taxable year by the
highest rate used to determine the income tax liability for an
individual under section 290.06, subdivision 2c, except that the
amount of tax withheld may be determined based on tables
provided by the commissioner if the partner submits a
withholding exemption certificate under subdivision 5.
(c) A partnership required to deduct and withhold tax under
this subdivision shall file a return with the commissioner. The
tax required to be deducted and withheld during that year must
be paid with the return. The return and payment is due on or
before the due date specified for filing the partnership return
under section 290.42.
(d) A partnership required to withhold and remit tax under
this subdivision is liable for payment of the tax to the
commissioner, and a person having control of or responsibility
for the withholding of the tax or the filing of returns due
under this subdivision is personally liable for the tax due.
The commissioner may reduce or abate the tax withheld under this
subdivision if the partnership had reasonable cause to believe
that no tax was due under this section.
(e) Notwithstanding paragraph (a), a partnership is not
required to deduct and withhold tax for a nonresident partner if:
(1) the partner elects to have the tax due paid as part of
the partnership's composite return under section 290.39,
subdivision 5;
(2) the partner has Minnesota assignable federal adjusted
gross income from the partnership of less than $1,000; or
(3) the partnership is liquidated or terminated, the income
was generated by a transaction related to the termination or
liquidation, and no cash or other property was distributed in
the current or prior taxable year; or
(4) the distributive shares of partnership income are
attributable to:
(i) income required to be recognized because of discharge
of indebtedness;
(ii) income recognized because of a sale, exchange, or
other disposition of real estate, depreciable property, or
property described in section 179 of the Internal Revenue Code
of 1986, as amended through December 31, 1988; or
(iii) income recognized on the sale, exchange, or other
disposition of any property that has been the subject of a basis
reduction pursuant to section 108, 734, 743, 754, or 1017 of the
Internal Revenue Code of 1986, as amended through December 31,
1988,
to the extent that the income does not include cash received or
receivable or, if there is cash received or receivable, to the
extent that the cash is required to be used to pay indebtedness
by the partnership or a secured debt on partnership property.
(f) For purposes of subdivisions 6, paragraph (1)(c), 6a,
7, 11, and 15, a partnership is considered an employer.
(g) To the extent that income is exempt from withholding
under paragraph (e), clause (4), the commissioner has a lien in
an amount up to the amount that would be required to be withheld
with respect to the income of the partner attributable to the
partnership interest, but for the application of paragraph (e),
clause (4). The lien arises under section 270.69 from the date
of assessment of the tax against the partner, and attaches to
that partner's share of the profits and any other money due or
to become due to that partner in respect of the partnership.
Notice of the lien may be sent by mail to the partnership,
without the necessity for recording the lien. The notice has
the force and effect of a levy under section 270.70, and is
enforceable against the partnership in the manner provided by
that section. Upon payment in full of the liability subsequent
to the notice of lien, the partnership must be notified that the
lien has been satisfied.
Sec. 35. Minnesota Statutes 1988, section 290.92,
subdivision 21, is amended to read:
Subd. 21. [EXTENSION OF WITHHOLDING TO UNEMPLOYMENT
COMPENSATION BENEFITS.] (a) At the time an individual makes a
claim for unemployment compensation benefits, the commissioner
of jobs and training must notify the individual that the
individual's unemployment compensation may be subject to state
income taxes depending on the individual's other income and that
the individual may elect to have the payments subject to
withholding under this section. If the individual so requests
does not notify the commissioner of jobs and training that the
individual elects to have the payments not be subject to
withholding within five working days of receipt of the notice
from the commissioner, unemployment compensation benefits paid
to the individual shall be treated as if it were a payment of
wages by an employer to an employee for a payroll period.
(b) For purposes of this section, any supplemental
unemployment compensation benefit paid to an individual to the
extent includable in such individual's Minnesota gross income,
shall be treated as if it were a payment of wages by an employer
to an employee for a payroll period.
Sec. 36. Minnesota Statutes 1988, section 290.92, is
amended by adding a subdivision to read:
Subd. 29. [LOTTERY PRIZES.] Eight percent of the payment
of Minnesota State lottery winnings which are subject to
withholding must be withheld as Minnesota withholding tax. For
purposes of this subdivision, the term "winnings which are
subject to withholding" has the meaning given in section
3402(q)(3) of the Internal Revenue Code of 1986, as amended
through December 31, 1988. For purposes of the provisions of
this section, a payment to any person of winnings which are
subject to withholding must be treated as if the payment was a
wage paid by an employer to an employee. Every individual who
is to receive a payment of winnings which are subject to
withholding shall furnish the state lottery division of the
department of gaming with a statement, made under the penalties
of perjury, containing the name, address, and social security
account number of the person receiving the payment. The
Minnesota state lottery is liable for the payment of the tax
required to be withheld under this subdivision but is not liable
to any person for the amount of the payment.
Sec. 37. Minnesota Statutes 1988, section 290.934,
subdivision 3a, is amended to read:
Subd. 3a. [REQUIRED INSTALLMENTS.] (1) Except as otherwise
provided in this subdivision, the amount of a required
installment is 25 percent of the required annual payment.
(2) Except as otherwise provided in this subdivision, the
term "required annual payment" means the lesser of:
(a) 90 percent of the tax shown on the return for the
taxable year, or if no return is filed 90 percent of the tax for
such year; or
(b) 100 percent of the tax shown on the return of the
corporation for the preceding taxable year providing such return
was for a full 12-month period, did show a liability, and was
filed by the corporation.
(3) Except for determining the first required installment
for any taxable year, paragraph (2), clause (b), does not apply
in the case of a large corporation. The term "large
corporation" means a corporation or any predecessor corporation
that had taxable net income of $1,000,000 or more for any
taxable year during the testing period. The term "testing
period" means the three taxable years immediately preceding the
taxable year involved. A reduction allowed to a large
corporation for the first installment that is allowed by
applying paragraph (2), clause (b), must be recaptured by
increasing the next required installment by the amount of the
reduction.
(4) In the case of a required installment, if the
corporation establishes that the annualized income installment
is less than the amount determined in paragraph (1), the amount
of the required installment is the annualized income installment
and the recapture of previous quarters' reductions allowed by
this paragraph must be recovered by increasing subsequent
required installments to the extent the reductions have not
previously been recovered. A reduction shall be treated as
recaptured for purposes of this paragraph if 90 percent of the
reduction is recaptured.
(5) The "annualized income installment" is the excess, if
any, of:
(a) an amount equal to the applicable percentage of the tax
for the taxable year computed by placing on an annualized basis
the taxable income:
(i) for the first two months of the taxable year, in the
case of the first required installment;
(ii) for the first two months or for the first five months
of the taxable year, in the case of the second required
installment;
(iii) for the first six months or for the first eight
months of the taxable year, in the case of the third required
installment; and
(iv) for the first nine months or for the first 11 months
of the taxable year, in the case of the fourth required
installment, over;
(b) the aggregate amount of any prior required installments
for the taxable year.
(c) For the purpose of this paragraph, the annualized
income shall be computed by placing on an annualized basis the
taxable income for the year up to the end of the month preceding
the due date for the quarterly payment multiplied by 12 and
dividing the resulting amount by the number of months in the
taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred
to in clause (a).
(d) The "applicable percentage" used in clause (a) is:
In the case of the following The applicable
required installments: percentage is:
1st 22.5
2nd 45
3rd 67.5
4th 90
(6)(a) If this paragraph applies, the amount determined for
any installment must be determined in the following manner:
(i) take the taxable income for all months during the
taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for
all months during the taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item
(ii); and
(iv) multiply the tax computed under item (iii) by the base
period percentage for the filing month and all months during the
taxable year preceding the filing month.
(b) For purposes of this paragraph:
(i) the "base period percentage" for any period of months
is the average percent which the taxable income for the
corresponding months in each of the three preceding taxable
years bears to the taxable income for the three preceding
taxable years;
(ii) the term "filing month" means the month in which the
installment is required to be paid;
(iii) this paragraph shall only apply if the base period
percentage for any six consecutive months of the taxable year
equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the
determination of the base period percentage in the case of
reorganizations, new corporations, and other similar
circumstances.
(c) In the case of a required installment, determined under
this paragraph, if the corporation determines that the
installment is less than the amount determined in paragraph (1),
the amount of the required installment is the amount determined
under this paragraph and the recapture of previous quarters'
reductions allowed by this paragraph must be recovered by
increasing subsequent required installments to the extent the
reductions have not previously been recovered. A reduction
shall be treated as recaptured for purposes of this paragraph if
90 percent of the reduction is recaptured.
Sec. 38. Minnesota Statutes 1988, section 298.01, is
amended by adding a subdivision to read:
Subd. 3c. [ALTERNATIVE MINIMUM TAX.] For purposes of
calculating the alternative minimum tax under section 290.0921,
Minnesota alternative minimum taxable income must be computed
under the provisions of subdivisions 3, 3a, and 3b, and the
provisions of section 290.0921, except that:
(1) the adjustment for adjusted current earnings under
section 56(g) of the Internal Revenue Code of 1986, as amended
through December 31, 1988, must be determined using gross income
as defined in subdivision 3a; and
(2) the tax preference for depletion under section 57(a)(1)
of the Internal Revenue Code of 1986, as amended through
December 31, 1988, must be included in alternative minimum
taxable income.
Sec. 39. Minnesota Statutes 1988, section 298.01, is
amended by adding a subdivision to read:
Subd. 4d. [ALTERNATIVE MINIMUM TAX.] For purposes of
calculating the alternative minimum tax under section 290.0921,
Minnesota alternative minimum taxable income must be computed
under the provisions of subdivisions 4, 4a, 4b and 4c, and the
provisions of section 290.0921, except that:
(1) for purposes of the depreciation adjustments provided
by section 56(a)(1) of the Internal Revenue Code of 1986, as
amended through December 31, 1988, the basis for depreciable
property placed in service is the remaining depreciable basis as
defined in subdivision 4c;
(2) the adjustment for adjusted current earnings under
section 56(g) of the Internal Revenue Code of 1986, as amended
through December 31, 1988, must be determined using gross income
as defined in subdivision 4a;
(3) the tax preference for depletion under section 57(a)(1)
of the Internal Revenue Code of 1986, as amended through
December 31, 1988, must be included in alternative minimum
taxable income; and
(4) for purposes of calculating the tax preference for
accelerated depreciation or amortization of certain property
placed in service before January 1, 1987, under section 57(a)(7)
of the Internal Revenue Code of 1986, as amended through
December 31, 1988, the deduction allowable for the taxable year
shall mean the deduction allowable under subdivision 4c,
provided that this modification must not reduce the amount of
tax preference to less than zero.
Sec. 40. Laws 1988, chapter 719, article 1, section 22, is
amended to read:
Sec. 22. [EFFECTIVE DATES.]
Except as otherwise provided, sections 1 to 3 and 16 are
effective for taxable years beginning after December 31, 1986.
Sections 5, 7 to 12, 14, 15, 17, and 21 are effective for
taxable years beginning after December 31, 1987. The deduction
allowed under section 4, clause (4) and the ability of surviving
spouses to use the married filing joint rates in section 7 are
effective for taxable years beginning after December 31, 1986.
The rest of sections 4 and 7 are effective for taxable years
beginning after December 31, 1987. Section 13 is effective for
taxable years beginning after December 31, 1984 1973. Section
18 is effective the day following final enactment.
Sec. 41. [PENSION EXCLUSION; FEDERAL LAW ENFORCEMENT AND
CORRECTIONS EMPLOYEES.]
Notwithstanding Minnesota Statutes 1986, section 290.08,
subdivision 26, paragraph (a), clause (4), for purposes of the
pension income exclusion contained in Minnesota Statutes 1986,
section 290.08, subdivision 26, for taxable years beginning
after December 31, 1984, and before January 1, 1987, an
individual who received pension income for service as a law
enforcement or corrections officer employed by the federal
government is a qualified recipient without regard to age.
Sec. 42. [AMENDING RETURNS.]
Individuals qualifying for the pension exclusion under
section 41 for taxable years beginning after December 31, 1984,
and before January 1, 1987, may file amended returns under
Minnesota Statutes, section 290.391. Notwithstanding section
290.50, subdivision 1, paragraph (a), a federal retiree may file
an amended return and the commissioner may allow a refund for
tax year 1985 based on the change made by section 41 if the
amended return is filed with the commissioner prior to October
15, 1990.
Sec. 43. [STATEMENT OF PURPOSE; ALTERNATIVE MINIMUM TAX.]
The purpose of the corporate alternative minimum tax
provisions of this act is to insure that all corporations with
economic profits, broadly defined, pay at least a minimum
corporate franchise tax. The changes are intended to be revenue
neutral, neither increasing nor reducing state corporate
franchise tax revenues. The legislature intends to continue,
during 1989 and 1990, studying the corporate alternative minimum
tax and attempting to develop a more appropriate tax structure
for achieving that purpose.
Sec. 44. [RAILROAD RETIREMENT REFUNDS.]
In determining the amount of a refund to be paid as a
result of the resolution of litigation over the taxability of
benefits received under the Railroad Retirement Act of 1974, the
commissioner of revenue shall determine the amount of the tax
due without regard to Minnesota Statutes, section 290.06,
subdivision 2c, paragraph (f). The provisions of this section
apply to taxable years beginning before January 1, 1989 only.
Sec. 45. [TEMPORARY ALTERNATIVE MINIMUM TAX EXEMPTION.]
Corporations subject to tax under Minnesota Statutes,
sections 60A.15, subdivision 1, and 290.35 or exempt from tax
under section 290.092, subdivision 2, are not subject to the tax
imposed by Minnesota Statutes, section 290.0921 for taxable
years beginning after December 31, 1989 and before January 1,
1991.
Sec. 46. [REPEALER.]
Minnesota Statutes 1988, section 290.092, subdivision 5, is
repealed.
Sec. 47. [EFFECTIVE DATE.]
Section 1 is effective October 1, 1989, for returns filed
after December 31, 1988.
Sections 3 is effective for premiums paid after December
31, 1988.
Sections 7, 8, and 27 are effective for taxable years
beginning after December 31, 1986.
Sections 2; 9; 12 to 14; 16; 22, subdivisions 1 to 6 and 8;
and 32 are effective for taxable years beginning after December
31, 1989.
Sections 15, 17, 19, and 28, paragraph (a), clause (2)(i),
and paragraph (f), are effective for taxable years beginning
after December 31, 1988.
Sections 4 to 6, 10, 11, 18, 23, 24, 26, 28, paragraph (a),
clause (2)(ii), 29, 30, and 31 are effective for taxable years
beginning after December 31, 1990.
Sections 20 and 21 are effective for alternative minimum
tax paid in taxable years beginning after December 31, 1988 and
for carryover credits allowed in taxable years beginning after
December 31, 1989.
Section 22, subdivision 7, is effective for taxable years
beginning after December 31, 1989, in its application to section
936 corporations and for taxable years beginning after December
31, 1990, in its application to all other foreign operating
companies.
Sections 25, 36, and 40 to 46 are effective the day
following final enactment.
Section 33 is effective the day following final enactment
for taxable years beginning after December 31, 1973.
Section 34 is effective after December 31, 1989.
Section 35 is effective for notices sent by the
commissioner of jobs and training after July 31, 1989.
Section 37 is effective for payments due after October 1,
1989.
Sections 38 and 39 are effective for ores mined after
December 31, 1989.
ARTICLE 11
REAL ESTATE ASSURANCE FUND
Section 1. Minnesota Statutes 1988, section 284.28,
subdivision 4, is amended to read:
Subd. 4. Except as provided in subdivision 5, no person
under disability to sue during the one year periods provided by
subdivisions 2 and 3 by reason of absence, infancy, mental
illness resulting in commitment pursuant to chapter 253B, or any
other disability shall have a right to assert any cause of
action or defense adverse to the title of the state, or its
successors in interest, in any proceeding at law or in equity
for opening, vacating, setting aside or invalidating the
forfeiture, the auditor's certificate of sale or the state
assignment certificate. Persons under the disability to sue
shall have the right to commence an action for recovery of
damages out of the assurance general fund after the disability
is removed in accordance with subdivision 10.
Sec. 2. Minnesota Statutes 1988, section 284.28,
subdivision 7, is amended to read:
Subd. 7. Any claimant who by reason of any material
failure, omission, error or defect of any public officer or
employee in the performance of the officer's or employee's
duties under the laws relating to the taxation of land or
forfeiture thereof is unjustly deprived of any land or of any
interest therein, may institute an action in the district court
to recover compensation for such unjust deprivation out of the
assurance account general fund provided in subdivision 8.
Sec. 3. Minnesota Statutes 1988, section 386.015,
subdivision 5, is amended to read:
Subd. 5. The county recorder shall charge and collect all
fees as prescribed by law and all such fees collected as county
recorder shall be paid to the county in the manner and at the
time prescribed by the county board, but not less often than
once each month. This subdivision shall apply to the fees
collected by the county recorder in performing the duties of the
registrar of titles and all such fees shall be paid to the
county as herein provided except that money paid to the
registrar of titles for the assurance state general fund as
provided in Minnesota Statutes 1961, section 508.74, shall be
paid to the county as provided in Minnesota Statutes 1961,
section 508.75. A county recorder may retain as personal
compensation any fees the recorder is permitted to charge by law
for services rendered in a private capacity as a registered
abstracter as defined in Minnesota Statutes 1961, section
386.61, subdivision 2, clause (2).
Sec. 4. Minnesota Statutes 1988, section 508.75, is
amended to read:
508.75 [ASSURANCE FUND; INVESTMENT.]
All money received by the registrar under the provisions of
sections 508.74 and 508.82, clause (1) shall be paid quarterly
by the registrar or the county treasurer to the state treasurer
and placed in the real estate assurance account as an assurance
general fund. There is annually appropriated to the state
treasurer from the real estate assurance account general fund
sums sufficient to pay claims ordered by a district court under
sections 508.77 and 508A.77.
Sec. 5. Minnesota Statutes 1988, section 508.76, is
amended to read:
508.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; ACTION.]
Any person who, without negligence on that person's part,
sustains any loss or damage by reason of any omission, mistake
or misfeasance of the registrar or the registrar's deputy, or of
any examiner or of any court administrator, or of a deputy of
the court administrator or examiner, in the performance of their
respective duties under this law, and any person who, without
negligence on that person's part, is wrongfully deprived of any
land or of any interest therein by the registration thereof, or
by reason of the registration of any other person, as the owner
of such land, or by reason of any mistake, omission, or
misdescription in any certificate of title, or in any entry or
memorial, or by any cancellation, in the register of titles, and
who, by the provisions of this law, is precluded from bringing
an action for the recovery of such land, or of any interest
therein, or from enforcing any claim or lien upon the same, may
institute an action in the district court to recover
compensation out of the assurance general fund for such loss or
damage.
Sec. 6. Minnesota Statutes 1988, section 508.77, is
amended to read:
508.77 [PARTIES DEFENDANT; JUDGMENT; EXECUTION.]
If such action is brought to recover any loss or damage
occasioned solely by the registration of such land, or solely by
the registration of any other person as the owner thereof, or if
such action be brought for the recovery of any loss or damage
occasioned solely by the omission, mistake or misfeasance of the
registrar or the registrar's deputy, or of any examiner or of
any court administrator, or a deputy of the court administrator
or examiner, in the performance of their respective duties, the
state treasurer, in the treasurer's official capacity, shall be
the sole defendant. If such action be brought to recover for
any loss or damage occasioned either wholly, or in part, by the
fraud or wrongful act of some person other than the officers
herein named, or to recover for any loss or damage caused
jointly by the fraud or wrongful act, and by the omission,
mistake or misfeasance of the officers above named, or any of
them, and of some other person, the state treasurer, in the
treasurer's official capacity, and such other person shall be
joined as defendants therein. In any action where there are
defendants other than the state treasurer, no execution shall
issue against such treasurer until execution against all other
defendants against whom judgment has been recovered has been
returned unsatisfied, either in whole or in part. An officer
returning such execution shall certify thereon that the amount
still due upon the execution cannot be collected from them.
Thereupon the court, being satisfied as to the truth of the
return, shall order the state treasurer to pay the amount due
upon such execution out of the assurance general fund. If the
assurance fund is insufficient to pay the amount of any judgment
in full, the unpaid balance thereof shall bear interest at the
legal rate and be paid out of the first moneys coming into the
assurance fund. The attorney general or, at the request of
either the attorney general or the board of county commissioners
of the county in which the land or a major part of it lies, the
county attorney of that county shall defend the state treasurer
in all such actions.
Sec. 7. Minnesota Statutes 1988, section 508.78, is
amended to read:
508.78 [LIABILITY OF ASSURANCE FUND.]
No person shall recover from the assurance general fund any
sum by reason of any loss, damage, or deprivation occasioned
solely by a breach of trust on the part of any registered owner
who is trustee, or by the improper exercise of any power of sale
in a mortgage, nor shall any person recover from the assurance
general fund any greater sum than the fair market value of the
real estate at the time of the last payment into such fund, on
account thereof.
Sec. 8. Minnesota Statutes 1988, section 508.79, is
amended to read:
508.79 [LIMITATION OF ACTION.]
Any action or proceeding pursuant to section 508.76 to
recover damages out of the assurance general fund, shall be
commenced within six years from the time when the right to
commence the same accrued, and not afterwards. If at the time
the right accrued or thereafter within the six-year period, the
person entitled to bring such action or proceeding is a minor,
or insane, or imprisoned, or absent from the United States in
its service or the service of the state, such person, or anyone
claiming under that person, may commence such action or
proceeding within two years after such disability is removed.
Sec. 9. Minnesota Statutes 1988, section 508.82, is
amended to read:
508.82 [REGISTRAR'S FEES.]
The fees to be paid to the registrar shall be as follows:
(1) of the fees provided herein, five percent of the fees
collected under clauses (3), (4), (11), (13), (14), (15), (17),
and (18) for filing or memorializing shall be paid to the state
treasurer and credited to the real estate assurance account
general fund;
(2) for registering each original certificate of title, and
issuing a duplicate of it, $20;
(3) for registering each instrument transferring the fee
simple title for which a new certificate of title is issued and
for the issuance and registration of the new certificate of
title, $20;
(4) for the entry of each memorial on a certificate and
endorsements upon duplicate certificates, $10;
(5) for issuing each mortgagee's or lessee's duplicate,
$10;
(6) for issuing each residue certificate, $20;
(7) for exchange certificates, $10 for each certificate
canceled and $10 for each new certificate issued;
(8) for each certificate showing condition of the register,
$10;
(9) for any certified copy of any instrument or writing on
file in the registrar's office, the same fees allowed by law to
county recorders for like services;
(10) for a noncertified copy of any instrument or writing
on file in the office of the registrar of titles, or any
specified page or part of it, an amount as determined by the
county board for each page or fraction of a page specified. If
computer or microfilm printers are used to reproduce the
instrument or writing, a like amount per image;
(11) for filing two copies of any plat in the office of the
registrar, $30;
(12) for any other service under this chapter, such fee as
the court shall determine;
(13) for issuing a duplicate certificate of title pursuant
to the directive of the examiner of titles in counties in which
the compensation of the examiner is paid in the same manner as
the compensation of other county employees, $50, plus $10 to
memorialize;
(14) for issuing a duplicate certificate of title pursuant
to the directive of the examiner of titles in counties in which
the compensation of the examiner is not paid by the county or
pursuant to an order of the court, $10;
(15) for filing a condominium plat or an amendment to it in
accordance with chapter 515, $30;
(16) for a copy of a condominium plat filed pursuant to
chapters 515 and 515A, the fee shall be $1 for each page of the
condominium plat with a minimum fee of $10;
(17) for filing a condominium declaration and plat or an
amendment to it in accordance with chapter 515A, $10 for each
certificate upon which the document is registered and $30 for
the filing of the condominium plat or an amendment thereto;
(18) for the filing of a certified copy of a plat of the
survey pursuant to section 508.23 or 508.671, $10;
(19) for filing a registered land survey in triplicate in
accordance with section 508.47, subdivision 4, $30;
(20) for furnishing a certified copy of a registered land
survey in accordance with section 508.47, subdivision 4, $10.
Sec. 10. Minnesota Statutes 1988, section 508A.76, is
amended to read:
508A.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; ACTION.]
Any person who, without negligence on that person's part,
sustains any loss or damage by reason of any omission, mistake
or misfeasance of the registrar or the registrar's deputy, or of
any examiner or of any court administrator, or of a deputy of
the court administrator or examiner, in the performance of their
respective duties under sections 508A.01 to 508A.85, and any
person who, without negligence on that person's part, is
wrongfully deprived of any land or of any interest in it by the
registration of it, or by reason of the registration of any
other person, as the owner of the land, or by reason of any
mistake, omission, or misdescription in any CPT, or in any entry
or memorial, or by any cancellation, in the register of titles,
and who, by the provisions of sections 508A.01 to 508A.85, is
precluded from bringing an action for the recovery of the land,
or of any interest in it, or from enforcing any claim or lien
upon the same, may institute an action in the district court to
recover compensation out of the assurance general fund for the
loss or damage.
Sec. 11. Minnesota Statutes 1988, section 508A.77, is
amended to read:
508A.77 [PARTIES DEFENDANT; JUDGMENT; EXECUTION.]
If an action is brought to recover any loss or damage
occasioned solely by the registration of the land, or solely by
the registration of any other person as the owner thereof, or if
the action be brought for the recovery of any loss or damage
occasioned solely by the omission, mistake or misfeasance of the
registrar or the registrar's deputy, or of any examiner or of
any court administrator, or of a deputy of the court
administrator or examiner, in the performance of their
respective duties, the state treasurer, in the treasurer's
official capacity, shall be the sole defendant. If the action
is brought to recover for any loss or damage occasioned either
wholly, or in part, by the fraud or wrongful act of some person
other than the officers herein named, or to recover for any loss
or damage caused jointly by the fraud or wrongful act, and by
the omission, mistake or misfeasance of the officers above
named, or any of them, and of some other person, the state
treasurer, in the treasurer's official capacity, and the other
person shall be joined as defendants in it. In any action where
there are defendants other than the state treasurer, no
execution shall issue against the treasurer until execution
against all other defendants against whom judgment has been
recovered has been returned unsatisfied, either in whole or in
part. An officer returning the execution shall certify on it
that the amount still due upon the execution cannot be collected
from them. The court, being satisfied as to the truth of the
return, shall then order the state treasurer to pay the amount
due upon the execution out of the assurance general fund. If
the assurance fund is insufficient to pay the amount of any
judgment in full, the unpaid balance on it shall bear interest
at the legal rate and be paid out of the first moneys coming
into the assurance fund. The attorney general or, at the
request of either the attorney general or the board of county
commissioners of the county in which the land or a major part of
it lies, the county attorney of that county shall defend the
state treasurer in all these actions.
Sec. 12. Minnesota Statutes 1988, section 508A.78, is
amended to read:
508A.78 [LIABILITY OF ASSURANCE FUND.]
No person shall recover from the assurance general fund any
sum by reason of any loss, damage, or deprivation occasioned
solely by a breach of trust on the part of any registered owner
who is trustee, or by the improper exercise of any power of sale
in a mortgage, nor shall any person recover from the assurance
general fund any greater sum than the fair market value of the
real estate at the time of the last payment into that fund, on
account thereof.
Sec. 13. Minnesota Statutes 1988, section 508A.79, is
amended to read:
508A.79 [LIMITATION OF ACTION.]
Any action or proceeding pursuant to section 508A.76 to
recover damages out of the assurance general fund shall be
commenced within six years from the time when the right to
commence the same accrued, and not afterwards. If at the time
the right accrued or thereafter within the six-year period, the
person entitled to bring the action or proceeding is a minor, or
insane, or imprisoned, or absent from the United States in its
service or the service of the state, the person, or anyone
claiming under the person, may commence the action or proceeding
within two years after the disability is removed.
Sec. 14. Minnesota Statutes 1988, section 508A.82, is
amended to read:
508A.82 [REGISTRAR'S FEES.]
The fees to be paid to the registrar shall be as follows:
(1) of the fees provided herein, five percent of the fees
collected under clauses (3), (4), (11), (13), (14), (15), and
(17) for filing or memorializing shall be paid to the state
treasurer and credited to the real estate assurance account
general fund;
(2) for registering each original CPT, and issuing a
duplicate of it, $20;
(3) for registering each instrument transferring the fee
simple title for which a new CPT is issued and for the issuance
and registration of the new CPT, $20;
(4) for the entry of each memorial on a certificate and
endorsements upon duplicate CPTs, $10;
(5) for issuing each mortgagee's or lessee's duplicate,
$10;
(6) for issuing each residue CPT, $20;
(7) for exchange CPTs, $10 for each CPT canceled and $10
for each new CPT issued;
(8) for each certificate showing condition of the register,
$10;
(9) for any certified copy of any instrument or writing on
file in the registrar's office, the same fees allowed by law to
county recorders for like services;
(10) for a noncertified copy of any instrument or writing
on file in the office of the registrar of titles, or any
specified page or part of it, an amount as determined by the
county board for each page or fraction of a page specified. If
computer or microfilm printers are used to reproduce the
instrument or writing, a like amount per image;
(11) for filing two copies of any plat in the office of the
registrar, $30;
(12) for any other service under sections 508A.01 to
508A.85, the fee the court shall determine;
(13) for issuing a duplicate CPT pursuant to the directive
of the examiner of titles in counties in which the compensation
of the examiner is paid in the same manner as the compensation
of other county employees, $50, plus $10 to memorialize;
(14) for issuing a duplicate CPT pursuant to the directive
of the examiner of titles in counties in which the compensation
of the examiner is not paid by the county or pursuant to an
order of the court, $10;
(15) for filing a condominium plat or an amendment to it in
accordance with chapter 515, $30;
(16) for a copy of a condominium plat filed pursuant to
chapters 515 and 515A, the fee shall be $1 for each page of the
plat with a minimum fee of $10;
(17) for filing a condominium declaration and condominium
plat or an amendment to it in accordance with chapter 515A, $10
for each certificate upon which the document is registered and
$30 for the filing of the condominium plat or an amendment to
it;
(18) in counties in which the compensation of the examiner
of titles is paid in the same manner as the compensation of
other county employees, for each parcel of land contained in the
application for a CPT, as the number of parcels is determined by
the examiner, $50;
(19) for filing a registered land survey in triplicate in
accordance with section 508A.47, subdivision 4, $30;
(20) for furnishing a certified copy of a registered land
survey in accordance with section 508A.47, subdivision 4, $10.
Sec. 15. [EFFECTIVE DATE.]
Sections 1 to 14 are effective July 1, 1989.
ARTICLE 12
SALES TAXES
Section 1. Minnesota Statutes 1988, section 270.77, is
amended to read:
270.77 [SUBSTANTIAL UNDERSTATEMENT OF LIABILITY.]
The commissioner of revenue shall impose a penalty for
substantial understatement of any tax payable to the
commissioner, except a tax imposed under chapter 297A.
There must be added to the tax an amount equal to 25
percent of the amount of any underpayment attributable to the
understatement. There is a substantial understatement of tax
for the period if the amount of the understatement for the
period exceeds the greater of: (1) ten percent of the tax
required to be shown on the return for the period; or (2)(a)
$10,000 in the case of a corporation other than an S corporation
as defined in section 290.9725 when the tax is imposed by
chapter 290, or (b) $5,000 in the case of any other taxpayer,
and in the case of a corporation any tax not imposed by chapter
290. The term "understatement" means the excess of the amount
of the tax required to be shown on the return for the period,
over the amount of the tax imposed which is shown on the
return. The amount of the understatement shall be reduced by
that portion of the understatement which is attributable to the
tax treatment of any item by the taxpayer if there is or was
substantial authority for the treatment, or any item with
respect to which the relevant facts affecting the item's tax
treatment are adequately disclosed in the return or in a
statement attached to the return. The special rules in cases
involving tax shelters provided in section 6661(b)(2)(C) of the
Internal Revenue Code of 1954, as amended through December 31,
1985, shall apply and shall apply to a tax shelter the principal
purpose of which is the avoidance or evasion of state taxes.
The commissioner may abate all or any part of the addition to
the tax provided by this section on a showing by the taxpayer
that there was reasonable cause for the understatement, or part
of it, and that the taxpayer acted in good faith. The
additional tax and penalty shall bear interest at the rate
specified in section 270.75 from the time the tax should have
been paid until paid.
Sec. 2. Minnesota Statutes 1988, section 297A.01,
subdivision 3, is amended to read:
Subd. 3. A "sale" and a "purchase" includes, but is not
limited to, each of the following transactions:
(a) Any transfer of title or possession, or both, of
tangible personal property, whether absolutely or conditionally,
and the leasing of or the granting of a license to use or
consume tangible personal property other than manufactured homes
used for residential purposes for a continuous period of 30 days
or more, for a consideration in money or by exchange or barter;
(b) The production, fabrication, printing or processing of
tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the
production, fabrication, printing, or processing;
(c) The furnishing, preparing, or serving for a
consideration of food, meals or drinks, not including meals or
drinks served to patients, inmates, or persons residing at
hospitals, sanitariums, nursing homes, senior citizens homes,
and correctional, detention, and detoxification facilities,
meals or drinks purchased for and served exclusively to
individuals who are 60 years of age or over and their spouses or
to the handicapped and their spouses by governmental agencies,
nonprofit organizations, agencies, or churches or pursuant to
any program funded in whole or part through 42 USCA sections
3001 through 3045, wherever delivered, prepared or served, meals
and lunches served at public and private schools, universities
or colleges. "Sales" also includes meals furnished by employers
to employees at less than fair market value, except meals
furnished to employees of restaurants, resorts, and hotels, and
except meals furnished at no charge to employees of hospitals,
nursing homes, boarding care homes, sanitariums, group homes,
and correctional, detention, and detoxification facilities, who
are required to eat with the patients, residents, or inmates
residing in them. Notwithstanding section 297A.25, subdivision
2, taxable food or meals include, but are not limited to, the
following:
(i) heated food or drinks;
(ii) sandwiches prepared by the retailer;
(iii) single sales of prepackaged ice cream or ice milk
novelties prepared by the retailer;
(iv) hand-prepared or dispensed ice cream or ice milk
products including cones, sundaes, and snow cones;
(v) soft drinks and other beverages prepared or served by
the retailer;
(vi) gum;
(vii) ice;
(viii) all food sold in vending machines;
(ix) party trays prepared by the retailers; and
(x) all meals and single servings of packaged snack food,
single cans or bottles of pop, sold in restaurants and bars;
(d) The granting of the privilege of admission to places of
amusement, recreational areas, or athletic events and the
privilege of having access to and the use of amusement devices,
tanning facilities, reducing salons, steam baths, turkish baths,
massage parlors, health clubs, and spas or athletic facilities;
(e) The furnishing for a consideration of lodging and
related services by a hotel, rooming house, tourist court, motel
or trailer camp and of the granting of any similar license to
use real property other than the renting or leasing thereof for
a continuous period of 30 days or more;
(f) The furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state, or
local exchange telephone service, intrastate toll service, and
interstate toll service, if that service originates from and is
charged to a telephone located in this state; the tax imposed on
amounts paid for telephone services is the liability of and
shall be paid by the person paying for the services. The
furnishing for a consideration of access to telephone services
by a hotel to its guests is a sale under this clause. Sales by
municipal corporations in a proprietary capacity are included in
the provisions of this clause. The furnishing of water and
sewer services for residential use shall not be considered a
sale;
(g) The furnishing for a consideration of cable television
services, including charges for basic monthly service, charges
for monthly premium service, and charges for any other similar
television services;
(h) Notwithstanding subdivision 4, and section 297A.25,
subdivision 9, the sales of horses including claiming sales and
fees paid for breeding a stallion to a mare. This clause
applies to sales and fees with respect to a horse to be used for
racing whose birth has been recorded by the Jockey Club or the
United States Trotting Association or the American Quarter Horse
Association;
(i) The furnishing for a consideration of parking services,
whether on a contractual, hourly, or other periodic basis,
except for parking at a meter;
(j) The furnishing for a consideration of services listed
in this paragraph:
(i) laundry and dry cleaning services including cleaning,
pressing, repairing, altering, and storing clothes, linen
services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry
cleaning services do not include services provided by coin
operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services,
including services provided by coin-operated facilities operated
by the customer, and rustproofing, undercoating, and towing of
motor vehicles;
(iii) building and residential cleaning, maintenance, and
disinfecting and exterminating services;
(iv) services provided by detective agencies, security
services, burglar, fire alarm, and armored car services not
including services performed within the jurisdiction they serve
by off-duty licensed peace officers as defined in section
626.84, subdivision 1;
(v) pet grooming services; and
(vi) lawn care, fertilizing, mowing, spraying and sprigging
services; garden planting and maintenance; arborist services;
tree, bush, and shrub planting, pruning, bracing, spraying, and
surgery; and tree trimming for public utility lines.
The services listed in this paragraph are taxable under section
297A.02 if the service is performed wholly within Minnesota or
if the service is performed partly within and partly without
Minnesota and the greater proportion of the service is performed
in Minnesota, based on the cost of performance. In applying the
provisions of this chapter, the terms "tangible personal
property" and "sales at retail" include taxable services and the
provision of taxable services, unless specifically provided
otherwise. Services performed by an employee for an employer
are not taxable under this paragraph. Services performed by a
partnership or association for another partnership or
association are not taxable under this paragraph if one of the
entities owns or controls more than 80 percent of the voting
power of the equity interest in the other entity. Services
performed between members of an affiliated group of corporations
are not taxable. For purposes of this section, "affiliated
group of corporations" includes those entities that would be
classified as a member of an affiliated group under United
States Code, title 26, section 1504, and who are eligible to
file a consolidated tax return for federal income tax purposes;
(k) A "sale" and a "purchase" includes the transfer of
computer software, meaning information and directions that
dictate the function performed by data processing equipment. A
"sale" and a "purchase" does not include the design,
development, writing, translation, fabrication, lease, or
transfer for a consideration of title or possession of a custom
computer program; and
(l) The granting of membership in a club, association, or
other organization if:
(1) the club, association, or other organization makes
available for the use of its members sports and athletic
facilities (without regard to whether a separate charge is
assessed for use of the facilities); and
(2) use of the sports and athletic facilities is not made
available to the general public on the same basis as it is made
available to members.
Granting of membership includes both one-time initiation fees
and periodic membership dues. Sports and athletic facilities
include golf courses, tennis, racquetball, handball and squash
courts, basketball and volleyball facilities, running tracks,
exercise equipment, swimming pools, and other similar athletic
or sports facilities. The provisions of this paragraph do not
apply to camps or other recreation facilities owned and operated
by an exempt organization under section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31,
1986, for educational and social activities for young people
primarily age 18 and under.
Sec. 3. Minnesota Statutes 1988, section 297A.02,
subdivision 2, is amended to read:
Subd. 2. [MACHINERY AND EQUIPMENT.] Notwithstanding the
provisions of subdivision 1, the rate of the excise tax imposed
upon sales of special tooling, and capital equipment is four
percent and upon sales of farm machinery is two percent.
Sec. 4. Minnesota Statutes 1988, section 297A.15,
subdivision 5, is amended to read:
Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding the
provisions of sections 297A.02, subdivision 2 297A.25,
subdivision 42, and 297A.257 the tax on sales of capital
equipment, and construction materials and supplies under section
297A.257, shall be imposed and collected as if the rate under
section 297A.02, subdivision 1, applied. Upon application by
the purchaser, on forms prescribed by the commissioner, a refund
equal to the reduction in the tax due as a result of the
application of the rates under section 297A.02, subdivision 2,
or the exemption under section 297A.25, subdivision 42, or
297A.257 shall be paid to the purchaser. In the case of
building materials qualifying under section 297A.257 where the
tax was paid by a contractor, application must be made by the
owner for the sales tax paid by all the contractors,
subcontractors, and builders for the project. The application
must include sufficient information to permit the commissioner
to verify the sales tax paid for the project. The application
shall include information necessary for the commissioner
initially to verify that the purchases qualified as capital
equipment under section 297A.02, subdivision 2 297A.25,
subdivision 42, or capital equipment or construction materials
and supplies under section 297A.257. No more than two
applications for refunds may be filed under this subdivision in
a calendar year. Unless otherwise specifically provided by this
subdivision, the provisions of section 297A.34 apply to the
refunds payable under this subdivision. There is annually
appropriated to the commissioner of revenue the amount required
to make the refunds.
The amount to be refunded shall bear interest at the rate
in section 270.76 from the date the refund claim is filed with
the commissioner.
Sec. 5. Minnesota Statutes 1988, section 297A.15, is
amended by adding a subdivision to read:
Subd. 6. [REFUND; APPROPRIATION.] The tax on the gross
receipts from the sale of items exempt under section 297A.25
subdivision 43, must be imposed and collected as if the sale
were taxable and the rate under section 297A.02, subdivision 1,
applied.
Upon application by the owner of the homestead property on
forms prescribed by the commissioner, a refund equal to the tax
paid on the gross receipts of the building materials and
equipment must be paid to the homeowner. In the case of
building materials in which the tax was paid by a contractor,
application must be made by the homeowner for the sales tax paid
by the contractor. The application must include sufficient
information to permit the commissioner to verify the sales tax
paid for the project. The contractor must furnish to the
homeowner a statement of the cost of building materials and the
sales taxes paid on the materials. The amount required to make
the refunds is annually appropriated to the commissioner.
Interest must be paid on the refund at the rate in section
270.76 from 60 days after the date the refund claim is filed
with the commissioner.
Sec. 6. Minnesota Statutes 1988, section 297A.25,
subdivision 3, is amended to read:
Subd. 3. [MEDICINES; MEDICAL DEVICES.] The gross receipts
from the sale of prescribed drugs, prescribed medicine and
insulin, intended for use, internal or external, in the cure,
mitigation, treatment or prevention of illness or disease in
human beings are exempt, together with prescription glasses,
therapeutic, and prosthetic devices. "Prescribed drugs" or
"prescribed medicine" includes over-the-counter drugs or
medicine prescribed by a licensed physician. "Therapeutic
devices" includes reusable finger pricking devices for the
extraction of blood and blood glucose monitoring machines used
in the treatment of diabetes. Nonprescription analgesics
consisting principally (determined by the weight of all
ingredients) of acetaminophen, acetylsalicylic acid, ibuprofen,
or a combination thereof are exempt.
Sec. 7. Minnesota Statutes 1988, section 297A.25, is
amended by adding a subdivision to read:
Subd. 42. [CAPITAL EQUIPMENT.] The gross receipts from the
sale of capital equipment are exempt.
Sec. 8. Minnesota Statutes 1988, section 297A.25, is
amended by adding a subdivision to read:
Subd. 43. [CHAIR LIFTS, RAMPS, ELEVATORS.] The gross
receipts from the sale of chair lifts, ramps, and elevators and
building materials used to install or construct them are exempt,
if they are authorized by a physician and installed in or
attached to the owner's homestead.
Sec. 9. Minnesota Statutes 1988, section 297A.257,
subdivision 1, is amended to read:
Subdivision 1. [DESIGNATION OF DISTRESSED COUNTIES.] (a)
The commissioner of trade and economic development shall
annually on June 1 designate those counties which are
distressed. A county is distressed if it satisfies at least one
of the following criteria:
(1) the county has an average unemployment rate of ten
percent or more for the one-year period ending on April 30 of
the year in which the designation is made; or
(2) the unemployment rate for the entire county was greater
than 110 percent of the state average for the 12-month period
ending the previous April 30, and 20 percent or more of the
county's economy, as determined by the commissioner of jobs and
training, is dependent upon agriculture; or
(3) for counties designated for periods beginning after
June 30, 1986, but before July 1, 1988, at least 20 percent of
the county's economy, as determined by the commissioner of jobs
and training, is dependent upon agriculture and the total market
value of real and personal property for the entire county for
taxes payable in 1986, as determined by the commissioner of
revenue, has decreased by at least 22 percent from the total
market value of real and personal property for the entire county
for taxes payable in 1984.
If, as a result of a plant closing, layoffs, or another
similar event affecting a significant number of employees in the
county, the commissioner has reason to believe that the average
unemployment in the county will exceed ten percent during the
one-year period beginning April 30, the commissioner may
designate the county as distressed, notwithstanding clause (1).
(b) The commissioner shall designate a portion of a county
containing a city of the first class located outside of the
metropolitan area as a distressed county if:
(1) that portion of the county has an unemployment rate of
ten percent or more for the one-year period ending on April 30
of the year in which the designation is made; and
(2) that portion of the county has a population of at least
50,000 as determined by the 1980 federal census.
(c) A county or the portion of a county designated pursuant
to this subdivision shall be considered a distressed county for
purposes of this section and chapter 116M.
(d) Except as otherwise specifically provided, the
determination of whether a county is distressed must be made
using the most current data available from the state
demographer. The designation of a distressed county is
effective for the 12-month period beginning July 1, except that
designations made effective July 1, 1988, shall remain in effect
until December 31, 1989, with respect to equipment placed in
service by December 31, 1989. A county may be designated as
distressed as often as it qualifies.
(e) The authority to designate counties as distressed
expires on June 30, 1989 for designations made effective July 1,
1988.
Sec. 10. [297A.259] [LOTTERY TICKETS; IN LIEU TAX.]
Sales of state lottery tickets are exempt from the tax
imposed under section 297A.02. The state lottery division in
the department of gaming must on or before the 20th day of each
month transmit to the commissioner of revenue an amount equal to
the gross receipts from the sale of lottery tickets for the
previous month multiplied by the tax rate under section 297A.02,
subdivision 1. The resulting payment is in lieu of the sales
tax that otherwise would be imposed by this chapter. The
commissioner shall deposit the money transmitted in the general
fund as provided by section 297A.44 and the money must be
treated as other proceeds of the sales tax. Gross receipts for
purposes of this section mean the proceeds of the sale of
tickets before deduction of a commission or other compensation
paid to the vendor or retailer for selling tickets.
Sec. 11. Minnesota Statutes 1988, section 297A.39, is
amended by adding a subdivision to read:
Subd. 9. [INTENTIONAL DISREGARD OF LAW OR RULES.] If any
part of any underpayment resulting from an additional assessment
is due to negligence or intentional disregard of the provisions
of this chapter or rules of the commissioner of revenue (but
without intent to defraud), there shall be added to the tax an
amount equal to ten percent of the additional assessment. The
penalty imposed by this subdivision must be collected as part of
the tax and is in addition to any other penalties provided by
this chapter. The amount of the tax together with this amount
shall bear interest at the rate specified in section 270.75 from
the time the tax should have been paid until paid.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 and 11 are effective for penalties imposed after
October 31, 1989. Sections 2 and 6 are effective for sales
after October 31, 1989. Sections 3, 4, and 7 are effective for
sales after September 30, 1989, provided that they do not apply
to sales made under bona fide contracts that were enforceable
before October 1, 1989. Sections 5 and 8 are effective for
sales after January 1, 1990. Sections 9 and 10 are effective
the day following final enactment.
ARTICLE 13
LAWFUL GAMBLING TAX
Section 1. Minnesota Statutes 1989 Supplement, section
349.12, subdivision 11, is amended to read:
Subd. 11. (a) "Lawful purpose" means one or more of the
following:
(1) benefiting persons by enhancing their opportunity for
religious or educational advancement, by relieving or protecting
them from disease, suffering or distress, by contributing to
their physical well-being, by assisting them in establishing
themselves in life as worthy and useful citizens, or by
increasing their comprehension of and devotion to the principles
upon which this nation was founded;
(2) initiating, performing, or fostering worthy public
works or enabling or furthering the erection or maintenance of
public structures;
(3) lessening the burdens borne by government or
voluntarily supporting, augmenting or supplementing services
which government would normally render to the people;
(4) payment of local taxes imposed authorized under this
chapter, and other taxes imposed by the state or the United
States on receipts from lawful gambling;
(5) any expenditure by, or any contribution to, a hospital
or nursing home exempt from taxation under section 501(c)(3) of
the Internal Revenue Code; or
(6) payment of reasonable costs incurred in complying with
the performing of annual audits required under section 349.19,
subdivision 9;
(7) payment of real estate taxes and assessments on
licensed gambling premises wholly owned by the licensed
organization; or
(8) if approved by the board, construction, improvement,
expansion, maintenance, and repair of athletic fields and
outdoor ice rinks and their appurtenances, owned by the
organization or a public agency.
(b) "Lawful purpose" does not include the erection,
acquisition, improvement, expansion, repair, or maintenance of
any real property or capital assets owned or leased by an
organization, other than a hospital or nursing home exempt from
taxation under section 501(c)(3) of the Internal Revenue Code,
unless the board has first specifically authorized the
expenditures after finding: (1) that the property or capital
assets will be used exclusively for one or more of the purposes
specified in paragraph (a), clauses (1) to (3); or (2) with
respect to expenditures for repair or maintenance only, that the
property is or will be used extensively as a meeting place or
event location by other nonprofit organizations or community or
service groups and that no rental fee is charged for the use; or
(3) with respect to expenditures for erection or acquisition
only, that the erection or acquisition is necessary to replace
with a comparable building a building owned by the organization
and destroyed or made uninhabitable by fire or natural disaster,
provided that the expenditure may be only for that part of the
replacement cost not reimbursed by insurance. The board may
shall by rule adopt procedures and standards to administer this
subdivision.
Sec. 2. Minnesota Statutes 1988, section 349.12,
subdivision 19, is amended to read:
Subd. 19. [IDEAL GROSS.] "Ideal gross" means the total
amount of receipts that would be received if every individual
ticket in the pull-tab or tipboard deal was sold at its face
value. In the calculation of ideal gross and prizes, a free
play ticket shall be valued at face value.
Sec. 3. Minnesota Statutes 1988, section 349.12, is
amended by adding a subdivision to read:
Subd. 26. [GROSS RECEIPTS.] "Gross receipts" means all
receipts derived from lawful gambling activity including, but
not limited to, the following items:
(1) gross sales of bingo cards and sheets before reduction
for prizes, expenses, shortages, free plays, or any other
charges or offsets;
(2) the ideal gross of pull-tab and tipboard deals or games
less the value of unsold and defective tickets and before
reduction for prizes, expenses, shortages, free plays, or any
other charges or offsets;
(3) gross sales of raffle tickets and paddle tickets before
reduction for prizes, expenses, shortages, free plays, or any
other charges or offsets;
(4) admission, commission, cover, or other charges imposed
on participants in lawful gambling activity as a condition for
or cost of participation; and
(5) interest, dividends, annuities, profit from
transactions, or other income derived from the accumulation or
use of gambling proceeds.
Gross receipts does not include proceeds from rental under
section 349.164 or 349.18, subdivision 3, for duly licensed
bingo hall lessors.
Sec. 4. Minnesota Statutes 1988, section 349.12, is
amended by adding a subdivision to read:
Subd. 27. [FISCAL YEAR.] "Fiscal year 1990" means the
period from October 1, 1989, to June 30, 1990. For all
subsequent times, "fiscal year" means the period from July 1 to
June 30.
Sec. 5. Minnesota Statutes 1988, section 349.12, is
amended by adding a subdivision to read:
Subd. 28. [FACE VALUE.] "Face value" means the price per
ticket printed on the ticket or the flare.
Sec. 6. Minnesota Statutes 1988, section 349.12, is
amended by adding a subdivision to read:
Subd. 29. [FREE PLAY.] "Free play" means a winning ticket
that is labeled as a free play or its equivalent.
Sec. 7. Minnesota Statutes 1989 Supplement, section
349.15, is amended to read:
349.15 [USE OF GROSS PROFITS.]
(a) Gross profits from lawful gambling may be expended only
for lawful purposes or allowable expenses as authorized at a
regular meeting of the conducting organization. Provided that
no more than 55 percent of the gross profits profit less the tax
imposed under section 349.212, subdivision 1, from bingo, and no
more than 45 50 percent for of the gross profit less the taxes
imposed by section 349.212, subdivisions 1, 4, and 6 from other
forms of lawful gambling, may be expended for allowable expenses
related to lawful gambling.
(b) The board shall provide by rule for the administration
of this section, including specifying allowable expenses. The
rules must specify that no more than one-third of the annual
premium on a policy of liability insurance procured by the
organization may be taken as an allowable expense. This expense
shall be allowed by the board only to the extent that it relates
directly to the conduct of lawful gambling and is verified in
the manner the board prescribes by rule. The rules may provide
a maximum percentage of gross profits which may be expended for
certain expenses.
(c) Allowable expenses also include reasonable costs of
bank account service charges, and the reasonable costs of an
audit required by the board, except an audit required under
section 349.19, subdivision 9.
(d) Allowable expenses include reasonable legal fees and
damages that relate to the conducting of lawful gambling, except
for legal fees or damages incurred in defending the organization
against the board, attorney general, United States attorney,
commissioner of revenue, or a county or city attorney.
Sec. 8. Minnesota Statutes 1988, section 349.16, is
amended by adding a subdivision to read:
Subd. 1a. [RESTRICTIONS ON LICENSE ISSUANCE.] On and after
October 1, 1989, the board shall not issue an initial license to
any organization if the board, in consultation with the
department of revenue, determines that the organization is
seeking licensing for the primary purpose of evading or reducing
the tax imposed by section 349.212, subdivision 6.
Sec. 9. Minnesota Statutes 1989 Supplement, section
349.161, subdivision 1, is amended to read:
Subdivision 1. [PROHIBITED ACTS; LICENSES REQUIRED.] No
person may:
(1) sell, offer for sale, or furnish gambling equipment for
use within the state for gambling purposes, other than for
lawful gambling exempt from licensing under section 349.214,
except to an organization licensed for lawful gambling; or
(2) sell, offer for sale, or furnish gambling equipment to
an organization licensed for lawful gambling without having
obtained a distributor license under this section;
(3) sell, offer for sale, or furnish gambling equipment for
use within the state that is not purchased or obtained from a
manufacturer or distributor licensed under this chapter; or
(4) sell, offer for sale, or furnish gambling equipment for
use within the state that has the same serial number as another
item of gambling equipment of the same type sold or offered for
sale or furnished for use in the state by that distributor.
No licensed organization may purchase gambling equipment
from any person not licensed as a distributor under this section.
Sec. 10. Minnesota Statutes 1989 Supplement, section
349.163, subdivision 3, is amended to read:
Subd. 3. [PROHIBITED SALES.] A manufacturer may not:
(1) sell gambling equipment to any person not licensed as a
distributor unless the manufacturer is also a licensed
distributor; or
(2) sell gambling equipment to a distributor in this state
that has the same serial number as another item of gambling
equipment of the same type that is sold by that manufacturer for
use in this state.
Sec. 11. Minnesota Statutes 1989 Supplement, section
349.19, subdivision 6, is amended to read:
Subd. 6. [PRESERVATION OF RECORDS.] The board may require
that Records required to be kept by this section must be
preserved by a licensed organization for at least two 3-1/2
years and may be inspected by employees of the division and the
division of gambling enforcement commissioner of revenue, the
commissioner of gaming, or the commissioner of public safety at
any reasonable time without notice or a search warrant.
Sec. 12. Minnesota Statutes 1988, section 349.212,
subdivision 1, is amended to read:
Subdivision 1. [RATE IMPOSITION.] There is hereby imposed
a tax on all lawful gambling, other than (1) pull-tabs purchased
and placed into inventory after January 1, 1987, and (2)
tipboards purchased and placed into inventory after June 30,
1988, conducted by organizations licensed by the board at the
rate specified in this subdivision of ten percent on the gross
receipts as defined in section 349.12, subdivision 26, less
prizes actually paid. The tax imposed by this subdivision is in
lieu of the tax imposed by section 297A.02 and all local taxes
and license fees except a fee authorized under section 349.16,
subdivision 4, or a tax authorized under section 349.212,
subdivision 5.
On all lawful gambling, other than (1) pull-tabs purchased
and placed into inventory after January 1, 1987, and (2)
tipboards purchased and placed into inventory after June 30,
1988, the tax imposed under this subdivision is ten percent of
the gross receipts of a licensed organization from lawful
gambling less prizes actually paid out, payable by the
organization or party conducting, directly or indirectly, the
gambling.
Sec. 13. Minnesota Statutes 1988, section 349.212,
subdivision 2, is amended to read:
Subd. 2. [COLLECTION; DISPOSITION.] The tax must be paid
to the board at times and in a manner the board prescribes by
rule taxes imposed by this section are due and payable to the
commissioner of revenue at the time when the gambling tax return
is required to be filed. Returns covering the taxes imposed
under this section must be filed with the commissioner of
revenue on or before the 20th day of the month following the
close of the previous calendar month. The proceeds, along with
the revenue received from all license fees and other fees under
sections 349.11 to 349.21 and 349.211, 349.212, and 349.213,
must be paid to the state treasurer for deposit in the general
fund.
Sec. 14. Minnesota Statutes 1988, section 349.212,
subdivision 4, is amended to read:
Subd. 4. [PULL-TAB AND TIPBOARD TAX.] (a) There is imposed
a tax on the sale of each deal of pull-tabs and tipboards sold
by a licensed distributor to a licensed organization, or to an
organization holding an exemption identification number. The
rate of the tax is ten two percent of the ideal net gross of the
pull-tab and or tipboard deal. The tax is payable to the
commissioner of revenue in the manner prescribed in section
349.2121 and the rules of the commissioner. The commissioner
shall pay the proceeds of the tax to the state treasurer for
deposit in the general fund. The sales tax imposed by chapter
297A on the sale of the pull-tabs and tipboards by the licensed
distributor to an organization is imposed on the retail sales
price less the tax imposed by this subdivision. The retail sale
of pull-tabs or tipboards by the organization is exempt from
taxes imposed by chapter 297A if the tax imposed by this
subdivision has been paid and is exempt from all local taxes and
license fees except a fee authorized under section 349.16,
subdivision 4.
(b) The liability for the tax imposed by this section is
incurred when the pull-tabs and tipboards are delivered by the
distributor to the licensed or exempt organization customer, to
a common or contract carrier for delivery to the organization
customer, or when received by the organization's customer's
authorized representative at the distributor's place of
business, regardless of the distributor's method of accounting
or the terms of the sale.
The tax imposed by this subdivision is imposed on all sales
of pull-tabs and tipboards, except the following:
(1) sales to the governing body of an Indian tribal
organization for use on an Indian reservation;
(2) sales to distributors licensed under this chapter;
(3) sales to distributors licensed under the laws of
another state or of a Province of Canada, as long as all
statutory and regulatory requirements are met in the other state
or province; and
(4) sales of promotional tickets as defined in section
349.12.
(c) The exemptions contained in section 349.214,
subdivision 2, paragraph (b), do not apply to the tax imposed in
this subdivision. Pull-tabs and tipboards sold to an
organization that sells pull-tabs and tipboards under the
exemption from licensing in section 349.214, subdivision 2,
paragraph (b), are exempt from the tax imposed by this
subdivision. A distributor must require an organization
conducting exempt gambling to show proof of its exempt status
before making a tax-exempt sale of pull-tabs or tipboards to
such an organization. A distributor shall identify, on all
reports submitted to the commissioner, all sales of pull-tabs
and tipboards that are exempt from tax under this subdivision.
Sec. 15. Minnesota Statutes 1988, section 349.212, is
amended by adding a subdivision to read:
Subd. 6. [COMBINED RECEIPTS TAX.] In addition to the taxes
imposed under subdivisions 1 and 4, there is imposed a tax on
the combined receipts of the organization. As used in this
section, "combined receipts" is the sum of the organization's
gross receipts from lawful gambling less gross receipts directly
derived from the conduct of bingo, raffles, and paddlewheels, as
defined in section 349.12, subdivision 26, for the fiscal year.
The combined receipts of an organization are subject to a tax
computed according to the following schedule:
If the combined receipts for the The tax is:
fiscal year are:
Not over $500,000 zero
Over $500,000 but not over $700,000 two percent of the
amount over $500,000
but not over $700,000
Over $700,000 but not over $900,000 $4,000 plus four
percent of the amount
over $700,000 but
not over $900,000
Over $900,000 $12,000 plus six
percent of the amount
over $900,000
Sec. 16. Minnesota Statutes 1988, section 349.2127,
subdivision 4, is amended to read:
Subd. 4. [TRANSPORTING UNSTAMPED DEALS.] No person shall
transport into, or receive, carry, or move from place to place
in this state, any deals of pull-tabs or tipboards not stamped
in accordance with this chapter except in the course of
interstate commerce, unless the deals are moving from one
distributor to another.
Sec. 17. Minnesota Statutes 1988, section 349.2127, is
amended by adding a subdivision to read:
Subd. 5. [PROVIDING INFORMATION.] No employee of an
organization shall provide any information to a player that
would provide an unfair advantage to the player related to the
potential winnings of any lawful gambling activity. For
purposes of this subdivision, "employee" includes a volunteer.
Sec. 18. Minnesota Statutes 1989 Supplement, section
349.214, subdivision 2, is amended to read:
Subd. 2. [LAWFUL GAMBLING.] (a) Raffles may be conducted
by an organization as defined in section 349.12, subdivision 12,
without complying with sections 349.11 to 349.14 and 349.151 to
349.213 if the value of all raffle prizes awarded by the
organization in a calendar year does not exceed $750.
(b) Lawful gambling may be conducted by an organization as
defined in section 349.12, subdivision 12, without complying
with sections 349.151 to 349.16; 349.171 to 349.21; and 349.212
if:
(1) the organization conducts lawful gambling on five or
fewer days in a calendar year;
(2) the organization does not award more than $50,000 in
prizes for lawful gambling in a calendar year;
(3) the organization pays a fee of $25 to the board,
notifies the board in writing not less than 30 days before each
lawful gambling occasion of the date and location of the
occasion, or 60 days for an occasion held in the case of a city
of the first class, the types of lawful gambling to be
conducted, the prizes to be awarded, and receives an exemption
identification number;
(4) the organization notifies the local government unit 30
days before the lawful gambling occasion, or 60 days for an
occasion held in a city of the first class;
(5) the organization purchases all gambling equipment and
supplies from a licensed distributor; and
(6) the organization reports to the board, on a single page
form prescribed by the board, within 30 days of each gambling
occasion, the gross receipts, prizes, expenses, expenditures of
net profits from the occasion, and the identification of the
licensed distributor from whom all gambling equipment was
purchased.
(c) If the organization fails to file a timely report as
required by paragraph (b), clause (3) or (6), a $250 penalty is
imposed on the organization. Failure to file a timely report
does not disqualify the organization as exempt under this
paragraph if a report is subsequently filed and the penalty paid.
(d) Merchandise prizes must be valued at their fair market
value.
(e) Unused pull-tab and tipboard deals must be returned to
the distributor within seven working days after the end of the
lawful gambling occasion. The distributor must accept and pay a
refund for all returns of unopened and undamaged deals returned
under this paragraph.
(f) An organization that is exempt from taxation on
purchases of pull-tabs and tipboards under section 349.212,
subdivision 4, paragraph (c), must return to the distributor
tipboard or pull-tab deal no part of which is used at the lawful
gambling occasion for which it was purchased by the organization.
Sec. 19. [349.215] [EXAMINATIONS.]
Subdivision 1. [EXAMINATION OF TAXPAYER.] To determine the
accuracy of a return or report, or in fixing liability under
this chapter, the commissioner of revenue may make reasonable
examinations or investigations of a taxpayer's place of
business, tangible personal property, equipment, computer
systems and facilities, pertinent books, records, papers,
vouchers, computer printouts, accounts, and documents.
Subd. 2. [ACCESS TO RECORDS OF OTHER PERSONS IN CONNECTION
WITH EXAMINATION OF TAXPAYER.] When conducting an investigation
or an audit of a taxpayer, the commissioner of revenue may
examine, except where privileged by law, the relevant records
and files of a person, business, institution, financial
institution, state agency, agency of the United States
government, or agency of another state where permitted by
statute, agreement, or reciprocity. The commissioner of revenue
may compel production of these records by subpoena. A subpoena
may be served directly by the commissioner of revenue.
Subd. 3. [POWER TO COMPEL TESTIMONY.] In the
administration of this chapter, the commissioner of revenue may:
(1) Administer oaths or affirmations and compel by subpoena
the attendance of witnesses, testimony, and the production of a
person's pertinent books, records, papers, or other data.
(2) Examine under oath or affirmation any person regarding
the business of a taxpayer concerning a matter relevant to the
administration of this chapter. The fees of witnesses required
by the commissioner of revenue to attend a hearing are equal to
those allowed to witnesses appearing before courts of this
state. The fees must be paid in the manner provided for the
payment of other expenses incident to the administration of
state tax law.
(3) In addition to other remedies available, bring an
action in equity by the state against a taxpayer for an
injunction ordering the taxpayer to file a complete and proper
return or amended return. The district courts of this state
shall have jurisdiction over the action, and disobedience of an
injunction issued under this clause shall be punished as a
contempt of district court.
Subd. 4. [THIRD PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS KNOWN.] An investigation may extend to any person that the
commissioner of revenue determines has access to information
that may be relevant to the examination or investigation. When
a subpoena requiring the production of records under subdivision
2 is served on a third-party record keeper, written notice of
the subpoena must be mailed to the taxpayer and to any other
person who is identified in the subpoena. The notices must be
given within three days of the day on which the subpoena is
served. Notice to the taxpayer required by this section is
sufficient if it is mailed to the last address on record with
the commissioner of revenue.
Subd. 5. [THIRD PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY
IS NOT KNOWN.] A subpoena that does not identify the person or
persons whose tax liability is being investigated may be served
only if:
(1) the subpoena relates to the investigation of a
particular person or ascertainable group or class of persons;
(2) there is a reasonable basis for believing that the
person or group or class of persons may fail or may have failed
to comply with tax laws administered by the commissioner of
revenue;
(3) the subpoena is clear and specific concerning
information sought to be obtained; and
(4) the information sought to be obtained is limited solely
to the scope of the investigation.
A party served with a subpoena that does not identify the
person or persons with respect to whose tax liability the
subpoena is issued may, within three days after service of the
subpoena, petition the district court in the judicial district
in which that party is located for a determination whether the
commissioner of revenue has complied with all the requirements
in clauses (1) to (4), and thus, whether the subpoena is
enforceable. If no petition is made by the party served within
the time prescribed, the subpoena has the effect of a court
order.
Subd. 6. [REQUEST BY TAXPAYER FOR SUBPOENA.] When the
commissioner of revenue has the power to issue a subpoena for
investigative or auditing purposes, then the commissioner shall
honor a reasonable request by the taxpayer to issue a subpoena
on the taxpayer's behalf, if in connection with the
investigation or audit.
Subd. 7. [APPLICATION TO COURT FOR ENFORCEMENT OF
SUBPOENA.] The commissioner of revenue or the taxpayer may apply
to the district court of the county of the taxpayer's residence,
place of business, or county where the subpoena can be served as
with any other case at law, for any order compelling the
appearance of the subpoenaed witness or the production of the
subpoenaed records. Failure to comply with the order of the
court for the appearance of a witness or the production of
records may be punished by the court as for contempt.
Subd. 8. [COST OF PRODUCTION OF RECORDS.] The cost of
producing records of a third party required by a subpoena must
be paid by the taxpayer, if the taxpayer requests the subpoena
to be issued, or if the taxpayer has the records available but
has refused to provide them to the commissioner of revenue. In
other cases where the taxpayer is unable to produce records and
the commissioner of revenue then initiates a subpoena for
third-party records, the commissioner shall pay the reasonable
cost of producing the records. The commissioner of revenue may
later assess the reasonable costs against the taxpayer if the
records contribute to the determination of an assessment of tax
against the taxpayer.
Sec. 20. [349.2151] [ASSESSMENTS.]
Subdivision 1. [GENERALLY.] The commissioner of revenue
shall make determinations, corrections, and assessments with
respect to taxes (including interest, additions to taxes, and
assessable penalties) imposed under this chapter.
Subd. 2. [COMMISSIONER OF REVENUE FILED RETURNS.] If a
taxpayer fails to file a return required by this chapter, the
commissioner of revenue may make a return for the taxpayer from
information in the commissioner's possession or obtainable by
the commissioner. The return is prima facie correct and valid.
Subd. 3. [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO
TAXPAYER.] (a) When a return has been filed and the commissioner
of revenue determines that the tax disclosed by the return is
different than the tax determined by the examination, the
commissioner shall send an order of assessment to the taxpayer.
The order must explain the basis for the assessment and must
explain the taxpayer's appeal rights. An assessment by the
commissioner of revenue must be made by recording the liability
of the taxpayer in the office of the commissioner of revenue,
which may be done by keeping a copy of the order of assessment
sent to the taxpayer. An order of assessment is final when made
but may be reconsidered by the commissioner under section
349.219.
(b) The amount of unpaid tax shown on the order must be
paid to the commissioner of revenue: (1) within 60 days after
notice of the amount and demand for its payment have been mailed
to the taxpayer by the commissioner of revenue; or (2) if an
administrative appeal is filed under section 349.219 within 60
days following the determination or compromise of the appeal.
Subd. 4. [ERRONEOUS REFUNDS.] An erroneous refund is
considered an underpayment of tax on the date made. An
assessment of a deficiency arising out of an erroneous refund
may be made at any time within two years from the making of the
refund. If part of the refund was induced by fraud or
misrepresentation of a material fact, the assessment may be made
at any time.
Subd. 5. [ASSESSMENT PRESUMED VALID.] A return or
assessment made by the commissioner of revenue is prima facie
correct and valid. The taxpayer has the burden of establishing
the incorrectness or invalidity of the return or assessment in
any action or proceeding in respect to it.
Subd. 6. [AGGREGATE REFUND OR ASSESSMENT.] On examining
returns of a taxpayer for more than one year or period, the
commissioner of revenue may issue one order covering the period
under examination that reflects the aggregate refund or
additional tax due.
Subd. 7. [SUFFICIENCY OF NOTICE.] An order of assessment
sent by United States mail, postage prepaid to the taxpayer at
the taxpayer's last known address, is sufficient even if the
taxpayer is deceased or is under a legal disability, or, in the
case of a corporation, has terminated its existence, unless the
department has been provided with a new address by a party
authorized to receive notices of assessment.
Sec. 21. [349.2152] [EXTENSIONS FOR FILING RETURNS AND
PAYING TAXES.]
When, in the commissioner of revenue's judgment, good cause
exists, the commissioner may extend the time for filing tax
returns and/or paying taxes for not more than six months.
Sec. 22. [349.216] [LIMITATIONS ON TIME FOR ASSESSMENT OF
TAX.]
Subdivision 1. [GENERAL RULE.] Except as otherwise
provided in this chapter, the amount of taxes assessable must be
assessed within 3-1/2 years after the return is filed (whether
or not the return is filed on or after the date prescribed). A
return must not be treated as filed until it is in processible
form. A return is in processible form when it is filed on a
permitted form and contains sufficient data to identify the
taxpayer and permit the mathematical verification of the tax
liability shown on the return.
Subd. 2. [FALSE OR FRAUDULENT RETURN.] Notwithstanding
subdivision 1, the tax may be assessed at any time if a false or
fraudulent return is filed or if a taxpayer fails to file a
return.
Subd. 3. [OMISSION IN EXCESS OF 25 PERCENT.] Additional
taxes may be assessed within 6-1/2 years after the due date of
the return or the date the return was filed, whichever is later,
if the taxpayer omits from a tax return taxes in excess of 25
percent of the taxes reported in the return.
Subd. 4. [TIME LIMIT FOR REFUNDS.] Unless otherwise
provided in this chapter, a claim for a refund of an overpayment
of tax must be filed within 3-1/2 years from the date prescribed
for filing the return (plus any extension of time granted for
filing the return, but only if filed within the extended time)
or two years from the time the tax is paid, whichever period
expires later. Interest on refunds must be computed at the rate
specified in section 270.76 from the date of payment to the date
the refund is paid or credited. For purposes of this
subdivision, the date of payment is the later of the date the
tax was finally due or was paid.
Subd. 5. [BANKRUPTCY; SUSPENSION OF TIME.] The time during
which a tax must be assessed or collection proceedings begun is
suspended during the period from the date of a filing of a
petition in bankruptcy until 30 days after either: (1) notice
to the commissioner of revenue that the bankruptcy proceedings
have been closed or dismissed, or (2) the automatic stay has
been ended or has expired, whichever occurs first.
The suspension of the statute of limitations under this
section applies to the person the petition in bankruptcy is
filed against, and all other persons who may also be wholly or
partially liable for the tax.
Subd. 6. [EXTENSION AGREEMENT.] If before the expiration
of time prescribed in subdivisions 1 and 4 for the assessment of
tax or the filing of a claim for refund, both the commissioner
of revenue and the taxpayer have consented in writing to the
assessment or filing of a claim for refund after that time, the
tax may be assessed or the claim for refund filed at any time
before the expiration of the agreed upon period. The period may
be extended by later agreements in writing before the expiration
of the period previously agreed upon.
Sec. 23. [349.217] [CIVIL PENALTIES.]
Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX.] If a tax
is not paid within the time specified for payment, a penalty is
added to the amount required to be shown as tax. The penalty is
three percent of the unpaid tax if the failure is for not more
than 30 days, with an additional penalty of three percent of the
amount of tax remaining unpaid during each additional 30 days or
fraction of 30 days during which the failure continues, not
exceeding 24 percent in the aggregate.
If the taxpayer has not filed a return, for purposes of
this subdivision the time specified for payment is the final
date a return should have been filed.
Subd. 2. [PENALTY FOR FAILURE TO MAKE AND FILE RETURN.] If
a taxpayer fails to make and file a return within the time
prescribed or an extension, a penalty is added to the tax. The
penalty is three percent of the amount of tax not paid on or
before the date prescribed for payment of the tax if the failure
is for not more than 30 days, with an additional five percent of
the amount of tax remaining unpaid during each additional 30
days or fraction of 30 days, during which the failure continues,
not exceeding 23 percent in the aggregate.
If a taxpayer fails to file a return within 60 days of the
date prescribed for filing of the return (determined with regard
to any extension of time for filing), the addition to tax under
this subdivision must be at least the lesser of: (1) $200; or
(2) the greater of (a) 25 percent of the amount required to be
shown as tax on the return without reduction for any payments
made or refundable credits allowable against the tax, or (b) $50.
Subd. 3. [COMBINED PENALTIES.] When penalties are imposed
under subdivisions 1 and 2, except for the minimum penalty under
subdivision 2, the penalties imposed under both subdivisions
combined must not exceed 38 percent.
Subd. 4. [PENALTY FOR INTENTIONAL DISREGARD OF LAW OR
RULES.] If part of an additional assessment is due to negligence
or intentional disregard of the provisions of this chapter or
rules of the commissioner of revenue (but without intent to
defraud), there is added to the tax an amount equal to ten
percent of the additional assessment.
Subd. 5. [PENALTY FOR FALSE OR FRAUDULENT RETURN;
EVASION.] If a person files a false or fraudulent return, or
attempts in any manner to evade or defeat a tax or payment of
tax, there is imposed on the person a penalty equal to 50
percent of the tax found due for the period to which the return
related, less amounts paid by the person on the basis of the
false or fraudulent return.
Subd. 6. [PENALTY FOR SALES AFTER REVOCATION, SUSPENSION,
OR EXPIRATION.] A distributor who engages in, or whose
representative engages in, the offering for sale, sale,
transport, delivery, or furnishing of gambling equipment to a
person, firm, or organization, after the distributor's license
or permit has been revoked or suspended, or has expired, and
until such license or permit has been reinstated or renewed, is
liable for a penalty of $1,000 for each day the distributor
continues to engage in the activity. This subdivision does not
apply to the transport of gambling equipment for the purpose of
returning the equipment to a licensed manufacturer.
Subd. 7. [PAYMENT OF PENALTIES.] The penalties imposed by
this section must be collected and paid in the same manner as
taxes.
Subd. 8. [PENALTIES ARE ADDITIONAL.] The civil penalties
imposed by this section are in addition to the criminal
penalties imposed by this chapter.
Subd. 9. [ORDER PAYMENTS CREDITED.] All payments received
may be credited first to the oldest liability not secured by a
judgment or lien in the discretion of the commissioner of
revenue, but in all cases must be credited first to penalties,
next to interest, and then to the tax due.
Sec. 24. [349.2171] [TAX-RELATED CRIMINAL PENALTIES.]
Subdivision 1. [PENALTY FOR FAILURE TO FILE OR PAY.] (a) A
person required to file a return, report, or other document with
the commissioner of revenue, who knowingly fails to file it when
required, is guilty of a gross misdemeanor. A person required
to file a return, report, or other document who willfully
attempts to evade or defeat a tax by failing to file it when
required is guilty of a felony.
(b) A person required to pay or to collect and remit a tax,
who knowingly fails to do so when required, is guilty of a gross
misdemeanor. A person required to pay or to collect and remit a
tax, who willfully attempts to evade or defeat a tax law by
failing to do so when required, is guilty of a felony.
Subd. 2. [FALSE OR FRAUDULENT RETURNS; PENALTIES.] (a) A
person required to file a return, report, or other document with
the commissioner of revenue, who delivers to the commissioner of
revenue a return, report, or other document known by the person
to be fraudulent or false concerning a material matter, is
guilty of a felony.
(b) A person who knowingly aids or assists in, or advises
in the preparation or presentation of a return, report, or other
document that is fraudulent or false concerning a material
matter, whether or not the falsity or fraud committed is with
the knowledge or consent of the person authorized or required to
present the return, report, or other document, is guilty of a
felony.
Subd. 3. [SALES WITHOUT PERMIT; VIOLATIONS.] (a) A person
who engages in the business of selling pull-tabs or tipboards in
Minnesota without the licenses or permits required under this
chapter, or an officer of a corporation who so engages in the
sales, is guilty of a gross misdemeanor.
(b) A person selling gambling equipment in Minnesota after
revocation of a license or permit under this chapter, when the
commissioner of revenue or the board has not issued a new
license or permit, is guilty of a felony.
Subd. 4. [CRIMINAL PENALTIES.] Criminal penalties imposed
by this section are in addition to civil penalties imposed by
this chapter.
Subd. 5. [STATUTE OF LIMITATIONS.] Notwithstanding section
628.26, or other provision of the criminal laws of this state,
an indictment may be found and filed, or a complaint filed, upon
a criminal offense specified in this section, in the proper
court within six years after the offense is committed.
Sec. 25. [349.218] [INTEREST.]
Subdivision 1. [INTEREST RATE.] When an interest
assessment is required under this section, interest is computed
at the rate specified in section 270.75.
Subd. 2. [LATE PAYMENT.] If a tax is not paid within the
time specified by law for payment, the unpaid tax bears interest
from the date the tax should have been paid until the date the
tax is paid.
Subd. 3. [EXTENSIONS.] If an extension of time for payment
has been granted, interest must be paid from the date the
payment should have been made if no extension had been granted,
until the date the tax is paid.
Subd. 4. [ADDITIONAL ASSESSMENTS.] If a taxpayer is liable
for additional taxes because of a redetermination by the
commissioner of revenue, or for any other reason, the additional
taxes bear interest from the time the tax should have been paid,
without regard to any extension allowed, until the date the tax
is paid.
Subd. 5. [ERRONEOUS REFUNDS.] In the case of an erroneous
refund, interest accrues from the date the refund was paid
unless the erroneous refund results from a mistake of the
department, then no interest or penalty is imposed unless the
deficiency assessment is not satisfied within 60 days of the
order.
Subd. 6. [INTEREST ON JUDGMENTS.] Notwithstanding section
549.09, if judgment is entered in favor of the commissioner of
revenue with regard to any tax, the judgment bears interest at
the rate specified in section 270.75 from the date the judgment
is entered until the date of payment.
Subd. 7. [INTEREST ON PENALTIES.] (a) A penalty imposed
under section 349.217, subdivision 1, 2, 3, 4, or 5 bears
interest from the date the return or payment was required to be
filed or paid (including any extensions) to the date of payment
of the penalty.
(b) A penalty not included in paragraph (a) bears interest
only if it is not paid within ten days from the date of notice.
In that case interest is imposed from the date of notice to the
date of payment.
Sec. 26. [349.219] [ADMINISTRATIVE REVIEW.]
Subdivision 1. [TAXPAYER RIGHT TO RECONSIDERATION.] A
taxpayer may obtain reconsideration by the commissioner of
revenue of an order assessing tax, a denial of a request for
abatement of penalty assessed under section 349.152, subdivision
1, clause (5), or 349.217, or a denial of a claim for refund of
money paid to the commissioner of revenue under provisions,
assessments, or orders under this chapter by filing an
administrative appeal as provided in subdivision 4. A taxpayer
cannot obtain reconsideration if the action taken by the
commissioner of revenue is the outcome of an administrative
appeal.
Subd. 2. [APPEAL BY TAXPAYER.] A taxpayer who wishes to
seek administrative review must follow the procedure provided by
subdivision 4.
Subd. 3. [NOTICE DATE.] For purposes of this section the
term "notice date" means the date of the order adjusting the tax
or order denying a request for abatement, or, in the case of a
denied refund, the date of the notice of denial.
Subd. 4. [TIME AND CONTENT FOR ADMINISTRATIVE
APPEAL.] Within 60 days after the notice date, the taxpayer must
file a written appeal with the commissioner of revenue. The
appeal need not be in any particular form but must contain the
following information:
(1) name and address of the taxpayer;
(2) if a corporation, the state of incorporation of the
taxpayer, and the principal place of business of the
corporation;
(3) the Minnesota identification number or social security
number of the taxpayer;
(4) the type of tax involved;
(5) the date;
(6) the tax years or periods involved and the amount of tax
involved for each year or period;
(7) the findings in the notice that the taxpayer disputes;
(8) a summary statement that the taxpayer relies on for
each exception; and
(9) the taxpayer's signature or signature of the taxpayer's
duly authorized agent.
Subd. 5. [EXTENSIONS.] When requested in writing and
within the time allowed for filing an administrative appeal, the
commissioner of revenue may extend the time for filing an appeal
for a period not to exceed 30 days from the expiration of the 60
days from the notice date.
Subd. 6. [AUTOMATIC EXTENSION OF STATUTE OF
LIMITATIONS.] Notwithstanding any statute of limitations to the
contrary, when the commissioner of revenue has made a
determination and the taxpayer has authority to file an
administrative appeal, the period during which the commissioner
can make further assessments or other determinations does not
expire before:
(1) 90 days after the notice date if no protest is filed
under subdivision 4; or
(2) 90 days after the commissioner of revenue notifies the
taxpayer of the determination on the appeal.
Subd. 7. [DETERMINATION OF APPEAL.] On the basis of
applicable law and available information, the commissioner of
revenue shall determine the validity, if any, in whole or part
of the appeal and notify the taxpayer of the decision. This
notice must be in writing and contain the basis for the
determination.
Subd. 8. [AGREEMENT DETERMINING TAX LIABILITY.] When it
appears to be in the best interests of the state, the
commissioner of revenue may settle taxes, penalties, or interest
that the commissioner has under consideration by virtue of an
appeal filed under this section. An agreement must be in
writing and signed by the commissioner of revenue and the
taxpayer or the taxpayer's representative authorized by the
taxpayer to enter into an agreement. An agreement must be filed
in the office of the commissioner of revenue.
Subd. 9. [APPEAL OF AN ADMINISTRATIVE APPEAL.] Following
the determination or settlement of an appeal, the commissioner
of revenue must issue an order reflecting that disposition.
Except in the case of an agreement determining tax under this
section, the order is appealable to the Minnesota tax court
under section 271.06.
Subd. 10. [APPEAL WHERE NO DETERMINATION.] If the
commissioner of revenue does not make a determination within six
months of the filing of an administrative appeal, the taxpayer
may elect to appeal to tax court.
Subd. 11. [EXEMPTION FROM ADMINISTRATIVE PROCEDURE
ACT.] This section is not subject to chapter 14.
Sec. 27. [STATE TO BE SUPPLIER OF GAMBLING EQUIPMENT.]
Notwithstanding any other law to the contrary, after June
30, 1990, the state of Minnesota will be the sole supplier of
all gambling equipment under Minnesota Statutes, chapter 349.
The commissioner of revenue shall no later than January 15,
1990, submit to the legislature a bill making all statutory
changes required to implement this section including proposing
the required staff and appropriation. The bill shall include
provisions requiring the state to provide an adequate supply and
variety of gambling equipment and to supply it efficiently. The
commissioner of revenue shall provide copies of this bill to the
chair of the house of representatives tax committee and to the
chair of the senate committee on taxes and tax laws.
Notwithstanding any contrary requirements of Minnesota Statutes,
section 3C.035, subdivision 2, the revisor shall assess the
commissioner of revenue for the actual cost of bill drafting
services rendered to the department with respect to the bill
required by this section.
Sec. 28. [INSTRUCTION TO THE REVISOR.]
The revisor of statutes is directed to change the words
"charitable gambling" wherever they appear in Minnesota Statutes
to "lawful gambling" in Minnesota Statutes 1990 and subsequent
editions of the statutes.
Sec. 29. [REPEALER.]
(a) Minnesota Statutes 1988, section 349.2121, subdivision
4, is repealed.
(b) Minnesota Rules, part 7860.0010, subpart 11a, is
repealed.
Sec. 30. [EFFECTIVE DATE.]
Sections 1 to 18 and 27 to 29 are effective October 1, 1989.
Section 23 is effective for tax or reporting periods
beginning on or after October 1, 1989.
Sections 19 to 22, 25, and 26 are effective for returns and
reports becoming due on or after October 1, 1989.
Section 24 is effective for violations occurring on or
after October 1, 1989.
ARTICLE 14
TAX INCREMENT FINANCING
Section 1. Minnesota Statutes 1989 Supplement, section
469.174, subdivision 7, is amended to read:
Subd. 7. [ORIGINAL NET TAX CAPACITY.] (a) Except as
provided in paragraph (b), "original net tax capacity" means the
tax capacity of all taxable real property within a tax increment
financing district as most recently certified by the
commissioner of revenue as of the date of the request by an
authority for certification by the county auditor, together with
subsequent adjustments as set forth in section 469.177,
subdivisions 1 and 4. In determining the original net tax
capacity the net tax capacity of real property exempt from
taxation at the time of the request shall be zero, except for
real property which is tax exempt by reason of public ownership
by the requesting authority and which has been publicly owned
for less than one year prior to the date of the request for
certification, in which event the net tax capacity of the
property shall be the net tax capacity as most recently
determined by the commissioner of revenue.
(b) The original net tax capacity of any designated
hazardous substance site or hazardous substance subdistrict
shall be determined on January 2 following as of the date the
agency or municipality authority certifies to the county auditor
that the agency or municipality has entered a redevelopment or
other agreement for the removal actions or remedial actions
specified in a development response action plan, or otherwise
provided funds to finance the development response action plan.
The original net tax capacity equals (i) the net tax capacity of
the parcel or parcels in the site or subdistrict, as most
recently determined by the commissioner of revenue, less (ii)
the estimated reasonable and necessary costs of the removal
actions and remedial actions as specified in a development
response action plan to be undertaken with respect to the parcel
as certified to the county auditor by the municipality or agency
or parcels, (iii) but not less than zero.
(c) The original net tax capacity of a hazardous substance
site or subdistrict shall be increased by the amount by which it
was reduced pursuant to paragraph (b), clause (ii), upon
certification by the municipality that the cost of the removal
and remedial actions specified in the development response
action plan, except for long-term monitoring and similar
activities, have been completed paid or reimbursed.
(d) For purposes of this subdivision, "real property" shall
include any property normally taxable as personal property by
reason of its location on or over publicly owned property.
Sec. 2. Minnesota Statutes 1988, section 469.174,
subdivision 10, is amended to read:
Subd. 10. [REDEVELOPMENT DISTRICT.] (a) "Redevelopment
district" means a type of tax increment financing district
consisting of a project, or portions of a project, within which
the authority finds by resolution that one of the following
conditions, reasonably distributed throughout the district,
exists:
(1) parcels consisting of 70 percent of the parcels in area
of the district are occupied by buildings, streets, utilities,
or other improvements and more than 50 percent of the buildings,
not including outbuildings, are structurally substandard to a
degree requiring substantial renovation or clearance; or
(2) parcels consisting of 70 percent of the parcels in area
of the district are occupied by buildings, streets, utilities,
or other improvements and 20 percent of the buildings are
structurally substandard and an additional 30 percent of the
buildings are found to require substantial renovation or
clearance in order to remove such existing conditions as:
inadequate street layout, incompatible uses or land use
relationships, overcrowding of buildings on the land, excessive
dwelling unit density, obsolete buildings not suitable for
improvement or conversion, or other identified hazards to the
health, safety, and general well-being of the community; or
(3) the property consists of underutilized air rights
existing over a public street, highway, or right-of-way; or
(4) the property consists of vacant, unused, underused,
inappropriately used, or infrequently used railyards, rail
storage facilities, or excessive or vacated railroad
rights-of-way; or
(5) the district consists of an existing or proposed
industrial park no greater in size than 250 acres, which
contains a sewage lagoon contaminated with polychlorinated
biphenyls.
(b) For purposes of this subdivision, "structurally
substandard" shall mean containing defects in structural
elements or a combination of deficiencies in essential utilities
and facilities, light and ventilation, fire protection including
adequate egress, layout and condition of interior partitions, or
similar factors, which defects or deficiencies are of sufficient
total significance to justify substantial renovation or
clearance.
(c) For purposes of this subdivision, a parcel is not
occupied by buildings, streets, utilities, or other improvements
unless 15 percent of the area of the parcel contains
improvements.
(d) For districts consisting of two or more noncontiguous
areas, each area must qualify as a redevelopment district under
paragraph (a), clauses (1) to (3), to be included in the
district, and the entire area of the district must satisfy
paragraph (a).
Sec. 3. Minnesota Statutes 1988, section 469.174,
subdivision 16, is amended to read:
Subd. 16. [DESIGNATED HAZARDOUS SUBSTANCE SITE.]
"Designated hazardous substance site" means any parcel or
parcels with respect to which the authority or municipality has
certified to the county auditor that the authority or
municipality has entered into a redevelopment or other agreement
providing for the removal actions or remedial actions specified
in a development response action plan or the municipality or
authority will use other available money, including without
limitation tax increments, to finance the removal or remedial
actions. A parcel described in the plan or plan amendment may
be designated for inclusion in the hazardous substance
subdistrict prior to approval of the development action response
plan on the basis of the reasonable expectation of the
municipality. Such parcel may not be certified as part of the
subdistrict until the development action response plan has been
approved.
Sec. 4. Minnesota Statutes 1988, section 469.174,
subdivision 17, is amended to read:
Subd. 17. [DEVELOPMENT ACTION RESPONSE PLAN.] "Development
action response plan" means a plan or proposal for removal
actions or remedial actions if the plan or proposal is submitted
to the pollution control agency and the actions
contained recommended in the plan or proposal are approved in
writing by the commissioner of the agency as reasonable and
necessary to protect the public health, welfare, and
environment. The commissioner shall review the development
action response plan and approve, modify or reject the
recommended actions within 60 days after submission of the plan
(or revised plan) by the authority. The commissioner shall
notify the authority in writing of the decision on the
recommended actions within 30 days after the decision and, if
the recommended actions are rejected, shall specify the reasons
for rejection.
Sec. 5. Minnesota Statutes 1988, section 469.174, is
amended by adding a subdivision to read:
Subd. 20. [INTERNAL REVENUE CODE.] "Internal Revenue Code"
means the Internal Revenue Code of 1986, as amended through
December 31, 1988.
Sec. 6. Minnesota Statutes 1989 Supplement, section
469.175, subdivision 3, is amended to read:
Subd. 3. [MUNICIPALITY APPROVAL.] A county auditor shall
not certify the original net tax capacity of a tax increment
financing district until the tax increment financing plan
proposed for that district has been approved by the municipality
in which the district is located. If an authority that proposes
to establish a tax increment financing district and the
municipality are not the same, the authority shall apply to the
municipality in which the district is proposed to be located and
shall obtain the approval of its tax increment financing plan by
the municipality before the authority may use tax increment
financing. The municipality shall approve the tax increment
financing plan only after a public hearing thereon after
published notice in a newspaper of general circulation in the
municipality at least once not less than ten days nor more than
30 days prior to the date of the hearing. This The published
notice must include a map of the area of the district from which
increments may be collected and, if the project area includes
additional area, a map of the project area in which the
increments may be expended. The hearing may be held before or
after the approval or creation of the project or it may be held
in conjunction with a hearing to approve the project. Before or
at the time of approval of the tax increment financing plan, the
municipality shall make the following findings, and shall set
forth in writing the reasons and supporting facts for each
determination:
(1) that the proposed tax increment financing district is a
redevelopment district, a mined underground space development
district, a housing district, a soils condition district, or an
economic development district; if the proposed district is a
redevelopment district, the reasons and supporting facts for the
determination that the district meets the criteria of section
469.174, subdivision 10, paragraph (a), clauses (1) to (5), must
be retained and made available to the public by the authority
until the district has been terminated.
(2) that the proposed development or redevelopment, in the
opinion of the municipality, would not reasonably be expected to
occur solely through private investment within the reasonably
foreseeable future and therefore the use of tax increment
financing is deemed necessary.
(3) that the tax increment financing plan conforms to the
general plan for the development or redevelopment of the
municipality as a whole.
(4) that the tax increment financing plan will afford
maximum opportunity, consistent with the sound needs of the
municipality as a whole, for the development or redevelopment of
the project by private enterprise.
(5) that the municipality elects the method of tax
increment computation set forth in section 469.177, subdivision
3, clause (b), if applicable.
When the municipality and the authority are not the same,
the municipality shall approve or disapprove the tax increment
financing plan within 60 days of submission by the authority, or
the plan shall be deemed approved. When the municipality and
the authority are not the same, the municipality may not amend
or modify a tax increment financing plan except as proposed by
the authority pursuant to subdivision 4. Once approved, the
determination of the authority to undertake the project through
the use of tax increment financing and the resolution of the
governing body shall be conclusive of the findings therein and
of the public need for the financing.
Sec. 7. Minnesota Statutes 1988, section 469.175, is
amended by adding a subdivision to read:
Subd. 6a. [REPORTING REQUIREMENTS.] (a) The municipality
must annually report to the commissioner of revenue the
following amounts for the entire municipality:
(1) the total principal amount of nondefeased tax increment
financing bonds that are outstanding at the end of the previous
calendar year; and
(2) the total annual amount of principal and interest
payments that are due for the current calendar year on (i)
general obligation tax increment financing bonds, and (ii) other
tax increment financing bonds.
(b) The municipality must annually report to the
commissioner of revenue the following amounts for each tax
increment financing district located in the municipality:
(1) the type of district, whether economic development,
redevelopment, housing, soils condition, mined underground
space, or hazardous substance site;
(2) the date on which the district is required to be
decertified;
(3) the captured tax capacity of the district, by property
class as specified by the commissioner of revenue, for taxes
payable in the current calendar year;
(4) the tax increment revenues for taxes payable in the
current calendar year;
(5) whether the tax increment financing plan or other
governing document permits increment revenues to be expended (i)
to pay bonds, the proceeds of which were or may be expended on
activities located outside of the district, (ii) for deposit
into a common fund from which money may be expended on
activities located outside of the district, or (iii) to
otherwise finance activities located outside of the tax
increment financing district; and
(6) any additional information that the commissioner of
revenue may require.
(c) The report required by this subdivision must be filed
with the commissioner of revenue on or before March 1 of each
year.
(d) This section applies to districts certified before, on,
and after August 1, 1979.
Sec. 8. Minnesota Statutes 1989 Supplement, section
469.175, subdivision 7, is amended to read:
Subd. 7. [CREATION OF HAZARDOUS SUBSTANCE SUBDISTRICT;
RESPONSE ACTIONS.] (a) A municipality or An authority which is
creating or has created a tax increment financing district may
establish within the district a hazardous substance subdistrict
upon the notice and after the discussion, public hearing, and
findings required for approval of or modification to the
original plan. The geographic area of the subdistrict is made
up of any parcels in the district designated for inclusion by
the municipality or authority that are designated hazardous
substance sites, and any additional parcels in the district
designated for inclusion that are contiguous to the
hazardous substances substance sites except for the
interposition of a right-of-way. Before or at the time of
approval of the tax increment financing plan or plan
modification providing for the creation of the hazardous
substance subdistrict, the municipality authority must make the
findings under paragraphs (b) to (d), and set forth in writing
the reasons and supporting facts for each.
(b) Development or redevelopment of the site, in the
opinion of the municipality authority, would not reasonably be
expected to occur solely through private investment and tax
increment otherwise available, and therefore the hazardous
substance district is deemed necessary.
(c) Other parcels that are not designated hazardous
substance sites are expected to be developed together with a
designated hazardous substance site.
(d) The subdistrict is not larger than, and the period of
time during which increments are elected to be received is not
longer than, that which is necessary in the opinion of the
municipality to provide for the additional costs due to the
designated hazardous substance site.
(e) Upon request by a municipality or an authority that has
incurred expenses for removal or remedial actions to implement a
development response action plan, the attorney general may:
(1) bring a civil action on behalf of the municipality or
authority to recover the expenses, including administrative
costs and litigation expenses, under section 115B.04 or other
law; or
(2) assist the municipality or agency authority in bringing
an action as described in clause (1), by providing legal and
technical advice, intervening in the action, or other
appropriate assistance.
The decision to participate in any action to recover expenses is
at the discretion of the attorney general.
(f) If the attorney general brings an action as provided in
paragraph (e), clause (1), the municipality or authority shall
certify its reasonable and necessary expenses incurred to
implement the development response action plan and shall
cooperate with the attorney general as required to effectively
pursue the action. The certification by the municipality or
authority is prima facie evidence that the expenses are
reasonable and necessary. The attorney general may deduct
litigation expenses incurred by the attorney general from any
amounts recovered in an action brought under paragraph (e),
clause (1). The municipality or authority shall reimburse the
attorney general for litigation expenses not recovered in an
action under paragraph (e), clause (1), and but only from the
additional tax increment required to be used as described in
section 469.176, subdivision 4e. The authority must reimburse
the attorney general for litigation expenses incurred to assist
in bringing an action under paragraph (e), clause (2), but only
from amounts recovered by the authority in an action or, if the
amounts are insufficient, from the additional tax increment
required to be used as described in section 469.176, subdivision
4e. All money recovered or paid to the attorney general for
litigation expenses under this paragraph shall be paid to the
general fund of the state for deposit to the account of the
attorney general. For the purposes of this section, "litigation
expenses" means attorney fees and costs of discovery and other
preparation for litigation.
(g) The municipality or authority shall reimburse the
pollution control agency for its administrative expenses
incurred to review and approve a development action response
plan and associated activities, and. The authority must
reimburse the pollution control agency for expenses incurred for
any services rendered to the attorney general to support the
attorney general in actions brought or assistance provided under
paragraph (e), but only from amounts recovered by the
municipality or authority in an action brought under paragraph
(e) or from the additional tax increment required to be used as
described in section 469.176, subdivision 4e. All money paid to
the pollution control agency under this paragraph shall be
deposited in the environmental response, compensation and
compliance fund.
(h) Actions taken by a municipality or an authority
consistent with a development response action plan are deemed to
be authorized response actions for the purpose of section
115B.17, subdivision 12. A municipality or agency An authority
that takes actions consistent with a development response action
plan qualifies for the defenses available under sections
115B.04, subdivision 11, and 115B.05, subdivision 9.
(i) All money recovered by a municipality or an authority
in an action brought under paragraph (e) in excess of the
amounts paid to the attorney general and the pollution control
agency must be treated as excess increments and be distributed
as provided in section 469.176, subdivision 2, clause (4), to
the extent the removal and remedial actions were initially
financed with increment revenues.
Sec. 9. Minnesota Statutes 1989 Supplement, section
469.176, subdivision 1, is amended to read:
Subdivision 1. [DURATION OF TAX INCREMENT FINANCING
DISTRICTS.] (a) Subject to the limitations contained in
paragraphs (b) to (f) (g), any tax increment financing district
as to which bonds are outstanding, payment for which the tax
increment and other revenues have been pledged, shall remain in
existence at least as long as the bonds continue to be
outstanding. The municipality may, at the time of approval of
the initial tax increment financing plan, provide for a shorter
maximum duration limit than specified in paragraphs (b) to (g).
The specified limit applies in place of the otherwise applicable
limit.
(b) The tax increment pledged to the payment of the bonds
and interest thereon may be discharged and the tax increment
financing district may be terminated if sufficient funds have
been irrevocably deposited in the debt service fund or other
escrow account held in trust for all outstanding bonds to
provide for the payment of the bonds at maturity or date of
redemption and interest thereon to the maturity or redemption
date.
(c) For bonds issued pursuant to section 469.178,
subdivisions 2 and 3, the full faith and credit and any taxing
powers of the municipality or authority shall continue to be
pledged to the payment of the bonds until the principal of and
interest on the bonds has been paid in full.
(d) No tax increment shall be paid to an authority for a
tax increment financing district after three years from the date
of certification of the original net tax capacity of the taxable
real property in the district by the county auditor or after
August 1, 1982, for tax increment financing districts authorized
prior to August 1, 1979, unless within the three-year period (1)
bonds have been issued pursuant to section 469.178, or in aid of
a project pursuant to any other law, except revenue bonds issued
pursuant to sections 469.152 to 469.165, prior to August 1,
1979, or (2) the authority has acquired property within the
district, or (3) the authority has constructed or caused to be
constructed public improvements within the district.
(e) No tax increment shall in any event be paid to the
authority from a redevelopment district after 25 years from date
of receipt by the authority of the first tax increment, after 25
years from the date of the receipt for a housing district, after
25 years from the date of the receipt for a mined underground
space development district, after 12 years from approval of the
tax increment financing plan for a soils condition district, and
after eight years from the date of the receipt, or ten years
from approval of the tax increment financing plan, whichever is
less, for an economic development district.
For tax increment financing districts created prior to
August 1, 1979, no tax increment shall be paid to the authority
after April 1, 2001, or the term of a nondefeased bond or
obligation outstanding on April 1, 1990, secured by increments
from the district or project area, whichever time is greater,
provided that in no case will a tax increment be paid to an
authority after August 1, 2009, from such a district. If a
district's termination date is extended beyond April 1, 2001,
because bonds were outstanding on April 1, 1990, with maturities
extending beyond April 1, 2001, the following restrictions
apply. No increment collected from the district may be expended
after April 1, 2001, except to pay or defease (i) bonds issued
before April 1, 1990, or (ii) bonds issued to refund the
principal of the outstanding bonds and pay associated issuance
costs, provided the average maturity of the refunding bonds does
not exceed the bonds refunded.
(f) Modification of a tax increment financing plan pursuant
to section 469.175, subdivision 4, shall not extend the
durational limitations of this subdivision.
(g) If a parcel of a district is part of a designated
hazardous substance site or a hazardous substance subdistrict,
tax increment may be paid to the authority from the parcel for
longer than the period otherwise provided by this subdivision.
The extended period for collection of tax increment begins on
the date of receipt of the first tax increment from the parcel
that is more than any tax increment received from the parcel
before the date of the certification under section 469.175,
subdivision 7, paragraph (b), and received after the date of
certification to the county auditor described in section
469.175, subdivision 7, paragraph (b). The extended period for
collection of tax increment is the lesser of: (1) 25 years from
the date of commencement of the extended period; or (2) the
period necessary to recover the costs of removal actions or
remedial actions specified in a development response action plan.
Sec. 10. Minnesota Statutes 1988, section 469.176, is
amended by adding a subdivision to read:
Subd. 4j. [REDEVELOPMENT DISTRICTS.] At least 90 percent
of the revenues derived from tax increments from a redevelopment
district must be used to finance the cost of correcting
conditions that allow designation of redevelopment districts
under section 469.174, subdivision 10. These costs include
acquiring properties containing structurally substandard
buildings or improvements, acquiring adjacent parcels necessary
to provide a site of sufficient size to permit development,
demolition of structures, clearing of the land, and installation
of utilities, roads, sidewalks, and parking facilities for the
site. The allocated administrative expenses of the authority
may be included in the qualifying costs.
Sec. 11. Minnesota Statutes 1989 Supplement, section
469.176, subdivision 6, is amended to read:
Subd. 6. [ACTION REQUIRED.] If, after four years from the
date of certification of the original net tax capacity of the
tax increment financing district pursuant to section 469.177, no
demolition, rehabilitation, or renovation of property or other
site preparation, including qualified improvement of a street
adjacent to a parcel but not installation of utility service
including sewer or water systems, has been commenced on a parcel
located within a tax increment financing district by the
authority or by the owner of the parcel in accordance with the
tax increment financing plan, no additional tax increment may be
taken from that parcel, and the original net tax capacity of
that parcel shall be excluded from the original net tax capacity
of the tax increment financing district. If the authority or
the owner of the parcel subsequently commences demolition,
rehabilitation, or renovation or other site preparation on that
parcel including qualified improvement of a street adjacent to
that parcel, in accordance with the tax increment financing
plan, the authority shall certify to the county auditor that the
activity has commenced, and the county auditor shall certify the
net tax capacity thereof as most recently certified by the
commissioner of revenue and add it to the original net tax
capacity of the tax increment financing district. The county
auditor must enforce the provisions of this subdivision. The
authority must submit to the county auditor evidence that the
required activity has taken place for each parcel in the
district. The evidence for a parcel must be submitted by
February 1 of the fifth year following the year in which the
parcel was certified as included in the district. For purposes
of this subdivision, qualified improvements of a street are
limited to (1) construction or opening of a new street, (2)
relocation of a street, and (3) substantial reconstruction or
rebuilding of an existing street.
Sec. 12. [469.1761] [INCOME REQUIREMENTS; HOUSING
PROJECTS.]
Subdivision 1. [REQUIREMENT IMPOSED.] In order for a tax
increment financing district to qualify as a housing district,
the income limitations provided in this section must be
satisfied. The requirements imposed by this section apply to
residential property receiving assistance financed with tax
increments, including interest reduction, land transfers at less
than the authority's cost of acquisition, utility service or
connections, roads, or other subsidies. The provisions of this
section do not apply (1) to interest reduction programs,
provided that the duration of the district is limited to 12
years from the collection of the first increment or (2) to
districts located in a targeted area as defined in section
462C.02, subdivision 9, clause (e).
Subd. 2. [OWNER OCCUPIED HOUSING.] For owner occupied
residential property, 95 percent of the housing units must be
initially purchased and occupied by individuals whose family
income is less than or equal to the income requirements for
qualified mortgage bond projects under section 143(f) of the
Internal Revenue Code.
Subd. 3. [RENTAL PROPERTY.] For residential rental
property, the property must satisfy the income requirements for
a qualified residential rental project as defined in section
142(d) of the Internal Revenue Code. A property also satisfies
the requirements of section 142(d) if 50 percent of the
residential units in the project are occupied by individuals
whose income is 80 percent or less of area median gross income.
The requirements of this subdivision apply for the duration of
the tax increment financing district.
Subd. 4. [NONCOMPLIANCE; ENFORCEMENT.] Failure to comply
with the requirements of this section results in application of
the duration limits for economic development districts to the
district. If at the time of the noncompliance the district has
exceeded the duration limits for an economic development
district, the district must be decertified effective for taxes
assessed in the next calendar year. The commissioner of revenue
shall enforce the provisions of this section. The commissioner
may waive insubstantial violations. Appeal of the
commissioner's orders of noncompliance must be made to the tax
court in the manner provided in section 271.06.
Sec. 13. Minnesota Statutes 1988, section 469.177,
subdivision 10, is amended to read:
Subd. 10. [PAYMENT TO SCHOOL FOR REFERENDUM LEVY.] The
provisions of this subdivision apply to tax increment financing
districts and projects for which certification was requested
before May 1, 1988, that are located in a school district in
which the voters have approved new tax capacity rates or an
increase in tax capacity rates after the tax increment financing
district was certified (1) if there are no outstanding bonds on
May 1, 1988, to which increment from the district is pledged, or
(2) if the referendum is approved after May 1, 1988, and there
are no bonds outstanding at the time the referendum is approved,
that were issued before May 1, 1988, or (3) if the referendum
increasing the tax capacity rate was approved after the most
recent issue of bonds to which increment from the district is
pledged. If clause (1) or (2) applies, the authority must
annually pay to the school district an amount of increment equal
to the increment that is attributable to the increase in the tax
capacity rate under the referendum. If clause (3) applies, upon
approval by a majority vote of the governing body of the
municipality and the school board, the authority must pay to the
school district an amount of increment equal to the increment
that is attributable to the increase in the tax capacity rate
under the referendum. The amounts of these increments may be
expended and must be treated by the school district in the same
manner as provided for the revenues derived from the referendum
levy approved by the voters. The provisions of this subdivision
apply to projects for which certification was requested before,
on, and after August 1, 1979.
Sec. 14. Laws 1988, chapter 719, article 12, section 29,
as amended by Laws 1989, chapters 209, article 1, section 48,
and 277, article 2, section 69, is amended to read:
Sec. 29. [TRANSITION RULES.]
(a) The provisions of sections 3, 6, 10, and 16 do not
apply to proposed tax increment financing districts for which
the authority called for a public hearing in a resolution dated
March 23, 1987, and for which a public hearing was held on April
28, 1987. The provisions of Minnesota Statutes 1987 Supplement,
section 469.174, subdivision 10, and 469.176, subdivision 4,
apply to such districts.
(b) The provisions of sections 3, 6, 10, and 16 do not
apply to candidate sites identified in the old highway 8
corridor plan as approved by an authority on October 14, 1986,
if the requests for certification of the districts are filed
with the county before January 1, 1998. The provisions of
Minnesota Statutes 1987 Supplement, sections 469.174,
subdivision 10, and 469.176, subdivision 4, apply to such
districts.
(c) The provisions of section 16, subdivision 4c, do not
apply to an economic development district located in a
development district approved on November 9, 1987, provided the
request for certification of the tax increment district is
submitted to the county by September 30, 1988 October 31, 1989.
Sec. 15. [HOMESTEAD AND AGRICULTURAL CREDIT AID; TIF
DISTRICTS; FALCON HEIGHTS AND LAUDERDALE.]
Subdivision 1. [PAYMENT OF AID.] The commissioner of
revenue shall pay the cities of Falcon Heights and Lauderdale
homestead and agricultural credit aid as provided by this
section. The payments must be made at the times provided by
Minnesota Statutes, section 273.1398.
Subd. 2. [DEFINITIONS.] For purposes of this section, (1)
the definitions contained in Minnesota Statutes, section
273.1398 apply, and (2) qualified tax increment financing
district means a tax increment financing district comprised
exclusively of class 1 and class 4 property as those classes
were defined in Minnesota Statutes 1988.
Subd. 3. [CALCULATION OF AID AMOUNT.] (a) Homestead and
agricultural credit aid for a qualified tax increment financing
district for taxes payable in 1990 equals the lesser of the
following:
(1) total tax increment revenues for the district for taxes
payable in 1989, minus the product of (i) the qualified tax
increment financing district's gross tax capacity rate, (ii) its
net tax capacity based on payable 1989 market values and net tax
capacity percentages in effect for taxes payable in 1990, and
(iii) 0.9767; or
(2) 105 percent of the principal and interest, due during
the calendar year, on bonds that were issued before January 1,
1989, and to which the qualified district's increment revenues
are pledged, less the total tax capacity rate for the year
multiplied by the captured tax capacity of the tax increment
financing district.
(b) For 1991 and later years, the district must receive aid
equal to the amount it received in 1990 or the amount under
paragraph (a), clause (2), for the year, whichever is less.
Subd. 4. [APPROPRIATION.] The amount necessary to make the
payments required by this section is annually appropriated to
the commissioner of revenue.
Subd. 5. [CITY INFORMATION.] The cities of Falcon Heights
and Lauderdale must provide the commissioner of revenue with the
information necessary to make the calculations required under
subdivision 3, paragraph (a), clause (2).
Sec. 16. [MOORHEAD TAX INCREMENT FINANCING.]
In the case of a tax increment financing district in the
city of Moorhead created prior to August 1, 1979, and used to
finance a hotel, parking facility, and conference project, the
date "April 1, 1992" must be substituted for "April 1, 1990" in
Minnesota Statutes, section 469.176, subdivision 1, paragraph
(e), each place it occurs.
Sec. 17. [DURATION OF TAX INCREMENT FINANCING DISTRICT.]
Notwithstanding Minnesota Statutes, section 469.176,
subdivision 1, tax increment financing district No. 2 in
development district No. 1 within the city of Chanhassen may
continue to receive tax increments through the year 1992,
provided that any increment received during the years 1990
through 1992 may only be used to pay development costs
associated with improvement of those portions of state trunk
highway No. 101 or 5 within the development district or to pay
the administrative expenses of the tax increment financing
district.
Sec. 18. [TRANSITION RULES.]
Subdivision 1. Section 10 does not apply to tax increment
financing districts established in development districts
approved by an authority under Minnesota Statutes, sections
469.124 to 469.134 on April 24, 1989, provided the request for
certification of the district is submitted to the county before
June 1, 1991.
Subd. 2. Sections 2 and 10 do not apply to municipal
redevelopment districts established or enlarged in a development
district originally approved by an authority on September 1,
1980, under Minnesota Statutes 1978, chapter 472A, if those
redevelopment districts are established or enlarged for proposed
projects identified in exclusive negotiations agreements dated
March 7, 1989.
Subd. 3. Section 10 does not apply to a redevelopment
district in the city of Minneapolis that includes the former
Sheraton Ritz hotel site, provided the request for certification
of the district is submitted to the county before June 1, 1991.
Sec. 19. [EFFECTIVE DATE.]
Sections 2, 6, 9, 10, 11, and 12 are effective for
districts for which the request for certification was filed with
the county on or after the day following final enactment.
Sections 1, 3, 4, 5, 7, 8, 13, 14, 15, and 18, subdivisions 1
and 2 are effective the day following final enactment. Section
16 is effective the day after compliance with Minnesota
Statutes, section 645.021, by the governing body of the city of
Moorhead. Section 17 is effective the day after compliance with
Minnesota Statutes, section 645.021, by the Chanhassen city
council. Section 18, subdivision 3, is effective upon
compliance by the city council of the city of Minneapolis with
Minnesota Statutes, section 645.021.
ARTICLE 15
BUDGET RESERVE
Section 1. Minnesota Statutes 1988, section 16A.15,
subdivision 6, is amended to read:
Subd. 6. [BUDGET AND CASH FLOW RESERVE ACCOUNT.] A budget
and cash flow reserve account is created in the general fund in
the state treasury. The commissioner of finance shall, as
authorized from time to time by law, restrict part or all of the
budgetary balance in the general fund for use as the budget and
cash flow reserve account. The commissioner of finance shall
transfer to the budget and cash flow reserve account such
amounts as are available to bring the total amount, including
any existing balance in the account on June 30, 1988 1989, to
$265,000,000 $550,000,000. The amounts restricted shall remain
in the account until drawn down under subdivision 1 or increased
under section 16A.1541.
Sec. 2. Minnesota Statutes 1989 Supplement, section
16A.1541, is amended to read:
16A.1541 [ADDITIONAL REVENUES; PRIORITY.]
If on the basis of a forecast of general fund revenues and
expenditures the commissioner of finance determines that there
will be a positive unrestricted budgetary general fund balance
at the close of the biennium, the commissioner of finance must
allocate money to the budget and cash flow reserve account until
the total amount in the account equals five percent of total
general fund appropriations for the current biennium as
established by the most recent legislative session after
reducing the property tax levy recognition percent under section
121.904, subdivision 4a, to 27 percent. Beginning in November
1990, forecast unrestricted budgetary general fund balances are
first appropriated to reduce the property tax levy recognition
percent under section 121.904, subdivision 4a, to 27 percent
before money is allocated to the budget and cash flow reserve
account under the preceding sentence.
The amounts necessary to meet the requirements of this
section are appropriated from the general fund.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the day following final
enactment.
ARTICLE 16
HUMAN SERVICES
Section 1. [256.025] [PAYMENT PROCEDURES.]
Subdivision 1. [DEFINITIONS.] (a) For purposes of this
section, the following terms have the meanings given them.
(b) "Base amount" means the calendar year 1990 county share
of local agency expenditures for all of the programs specified
in subdivision 2.
(c) "Local agency expenditure" means the total expenditure
or cost incurred by the county of financial responsibility for
the benefits and services for each of the programs specified in
subdivision 2. The term includes the federal, state, and county
share of costs for programs in which there is federal financial
participation. For programs in which there is no federal
financial participation, the term includes the state and county
share of costs. The term excludes county administrative costs,
unless otherwise specified.
(d) "Nonfederal share" means the sum of state and county
shares of costs of the programs specified in subdivision 2.
(e) The "county share of local agency expenditures growth
amount" is the amount by which the county share of local agency
expenditures in calendar years 1991 to 1997 has increased over
the base amount.
Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures
in this section govern payment of local agency expenditures for
benefits and services distributed under the following programs:
(1) Aid to Families with Dependent Children under sections
256.82, subdivision 1, and 256.935, subdivision 1;
(2) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,
subdivision 6;
(4) general assistance under section 256D.03, subdivision
2;
(5) work readiness under section 256D.03, subdivision 2;
(6) emergency assistance under section 256.871, subdivision
6;
(7) Minnesota supplemental aid under section 256D.36,
subdivision 1;
(8) preadmission screening and alternative care grants
under section 256B.091;
(9) work readiness services under section 256D.051;
(10) case management services under section 256.736,
subdivision 13;
(11) general assistance claims processing, medical
transportation and related costs; and
(12) medical assistance, medical transportation and related
costs.
Subd. 3. [PAYMENT METHODS.] The state shall pay counties,
according to the reporting cycle established by the
commissioner, all federal funds available for the services and
benefits distributed under subdivision 2 together with an amount
of state funds equal to the state share of expenditures, except
as provided for in section 256.017. Beginning July 1, 1991, the
state will reimburse counties for the county share of local
agency expenditures for benefits and services distributed under
subdivision 2 and funded by the human services account
established under article 3, section 13. Payments under
subdivision 4 are only for client benefits and services
distributed under subdivision 2 and do not include reimbursement
for county administrative expenses.
Subd. 4. [PAYMENT SCHEDULE.] Beginning July 1, 1991, the
state will reimburse counties, according to the following
payment schedule, for the county share of local agency
expenditures for the programs specified in subdivision 2.
(a) Beginning July 1, 1991, the state will reimburse or pay
the county share of local agency expenditures according to the
reporting cycle as established by the commissioner, for the
programs identified in subdivision 2. Payments for the period
of January 1, 1991, through July 31, 1991, shall be made
subsequent to July 1, 1991. Payments for the period August 1991
through December 1991 shall be made subsequent to the first of
each month thereafter through December 31, 1991.
(b) Payment for 1/24 of the base amount and the January
1992 county share of local agency expenditures growth amount for
the programs identified in subdivision 2 shall be made during
January 1992. For the period of February 1, 1992, through July
31, 1992, payment of the base amount shall be made subsequent to
July 1, 1992, and payment of the growth amount over the base
amount shall be made monthly. Payments for the period August
1992 through December 1992 shall be made subsequent to the first
of each month thereafter through December 31, 1992.
(c) Payment for the county share of local agency
expenditures during January 1993 shall be made during January
1993. Payment for 1/24 of the base amount and the February 1993
county share of local agency expenditures growth amount for the
programs identified in subdivision 2 shall be made during
February 1993. For the period of March 1, 1993, through July
31, 1993, payment of the base amount shall be made subsequent to
July 1, 1993, and payment of the growth amount over the base
amount shall be made monthly. Payments for the period August
1993 through December 1993 shall be made subsequent to the first
of each month thereafter through December 31, 1993.
(d) Monthly payments for the county share of local agency
expenditures from January 1994 through February 1994 shall be
made subsequent to the first of each month through February
1994. Payment for 1/24 of the base amount and the March 1994
county share of local agency expenditures growth amount for the
programs identified in subdivision 2 shall be made during March
1994. For the period of April 1, 1994, through July 31, 1994,
payment of the base amount shall be made subsequent to July 1,
1994, and payment of the growth amount over the base amount
shall be made monthly. Payments for the period August 1994
through December 1994 shall be made subsequent to the first of
each month thereafter through December 31, 1994.
(e) Monthly payments for the county share of local agency
expenditures from January 1995 through March 1995 shall be made
subsequent to the first of each month through March 1995.
Payment for 1/24 of the base amount and the April 1995 county
share of local agency expenditures growth amount for the
programs identified in subdivision 2 shall be made during April
1995. For the period of May 1, 1995, through July 31, 1995,
payment of the base amount shall be made subsequent to July 1,
1995, and payment of the growth amount over the base amount
shall be made monthly. Payments for the period August 1995
through December 1995 shall be made subsequent to the first of
each month thereafter through December 31, 1995.
(f) Monthly payments for the county share of local agency
expenditures from January 1996 through April 1996 shall be made
subsequent to the first of each month through April 1996.
Payment for 1/24 of the base amount and the May 1996 county
share of local agency expenditures growth amount for the
programs identified in subdivision 2 shall be made during May
1996. For the period of June 1, 1996, through July 31, 1996,
payment of the base amount shall be made subsequent to July 1,
1996, and payment of the growth amount over the base amount
shall be made monthly. Payments for the period August 1996
through December 1996 shall be made subsequent to the first of
each month thereafter through December 31, 1996.
(g) Monthly payments for the county share of local agency
expenditures from January 1997 through May 1997 shall be made
subsequent to the first of each month through May 1997. Payment
for 1/24 of the base amount and the June 1997 county share of
local agency expenditures growth amount for the programs
identified in subdivision 2 shall be made during June 1997. For
the period of June 1, 1997, through July 31, 1997, payment shall
be made subsequent to July 1, 1997. Payments for the period
August 1997 through December 1997 shall be made subsequent to
the first of each month thereafter through December 31, 1997.
(h) Effective January 1, 1998, monthly payments for the
county share of local agency expenditures shall be made
subsequent to the first of each month.
Payments under this subdivision are subject to the
provisions of section 256.017.
Subd. 5. [COMPARISON OF EXPENDITURES.] By October 1 of
each year beginning with 1991, the department shall determine
actual county share of local agency expenditures reported under
subdivision 4 for the previous state fiscal year and compare
these actual county share expenditures to actual state payments
made under the schedule in subdivision 4 for the same period.
Adjustment of any difference shall be paid upon the direction of
the state agency.
Sec. 2. Minnesota Statutes 1988, section 256.736,
subdivision 13, is amended to read:
Subd. 13. [STATE SHARE.] (a) The state must pay 75 percent
of the nonfederal share of costs incurred by counties under
subdivision 11, except that after July 1, 1988, the commissioner
shall adjust the state share to reflect county performance.
Factors which the commissioner may consider in adjusting the
state share must include, but are not limited to, the following:
(1) percentage of priority caretakers leaving the AFDC
program after one year, two years, and three years;
(2) percentage of minor parents who finish high school; and
(3) percentage of priority caretakers who are in training
or education and are successfully working toward their
contracted goals.
The commissioner may raise or lower the state share of
costs by a maximum of ten percent.
Beginning July 1, 1991, the state will reimburse counties,
up to the limit of state appropriations, according to the
payment schedule in section 1 of this article, for the county
share of local agency expenditures made under subdivision 11
from January 1, 1991, on. Payment to counties under this
subdivision is subject to the provisions of section 256.017.
(b) If the state appropriation is not sufficient to fund
the cost of case management services for all caretakers
identified in subdivision 2a, the commissioner must define a
statewide subgroup of caretakers which includes all caretakers
in subdivision 2a, clause (1) and as many caretakers as possible
from subdivision 2a, clauses (2) and (3).
Sec. 3. Minnesota Statutes 1989 Supplement, section
256.82, subdivision 1, is amended to read:
Subdivision 1. [MONTHLY PAYMENTS.] For the period from
January 1 to June 30, Based upon estimates submitted by the
county agency to the state agency, which shall state the
estimated required expenditures for the succeeding month, upon
the direction of the state agency, payment shall be made monthly
in advance by the state to the counties of all federal funds
available for that purpose for such succeeding month, together
with. The state share of the nonfederal portion of local agency
expenditures shall be 85 percent and the county share shall be
15 percent. Payments to counties for costs incurred shall
include an amount of state funds equal to 85 percent of the
difference between the total estimated cost and the federal
funds so available for payments made except as provided for in
section 256.017. Adjustment of any overestimate or
underestimate made by any county shall be made upon the
direction of the state agency in any succeeding month.
Subsequent to July 1 of each year, the state agency shall
reimburse the county agency for the funds expended during the
January 1 to June 30 period except as provided for in section
256.017. For the period from July 1 to December 31 based upon
the estimates submitted by the county agency to the state
agency, which shall state the estimated required expenditures
for the succeeding month, upon the direction of the state
agency, payment shall be made monthly in advance by the state to
the counties of all state and federal funds available for that
purpose for the succeeding month except as provided for in
section 256.017. Payment shall be made on the basis of federal
and state participation rates described in this subdivision.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of local agency expenditures under this
subdivision from January 1, 1991, on. Payment to counties under
this subdivision is subject to the provisions of section
256.017. Adjustment of any overestimate or underestimate made
by any county shall be made paid upon the direction of the state
agency in any succeeding month. Effective January 1, 1990, the
state rate of participation shall be determined as a percentage
that equals the difference between 100 percent and the
percentage rate of federal financial participation.
Sec. 4. Minnesota Statutes 1989 Supplement, section
256.871, subdivision 6, is amended to read:
Subd. 6. [REPORTS OF ESTIMATED EXPENDITURES; PAYMENTS.]
The county agency shall submit to the state agency reports
required under section 256.01, subdivision 2, paragraph (17).
Fiscal reports shall estimate expenditures for each succeeding
month in such form as required by the state agency. For the
period from January 1 to June 30, Payment shall be made monthly
in advance by the state agency to the counties, of federal funds
available for that purpose for each succeeding month, together
with. The state share of the nonfederal portion of local agency
expenditures shall be ten percent and the county share shall be
90 percent. Payments to counties for costs incurred shall
include an amount of state funds equal to ten percent of the
difference between the total estimated cost and the federal
funds so available, except as provided for in section 256.017.
Subsequent to July 1 of each year the state agency shall
reimburse the county agency for the funds expended during the
January 1 to June 30 period, except as provided for in section
256.017. For the period from July 1 to December 31, payment
shall be made monthly in advance by the state agency to the
counties, of all state and federal funds available for that
purpose for the succeeding month, except as provided for in
section 256.017. Payment shall be made on the basis of federal
and state participation rates described in this subdivision.
Effective January 1, 1990, the state rate of participation shall
be determined as a percentage that equals the difference between
100 percent and the percentage rate of federal financial
participation. Beginning July 1, 1991, the state will reimburse
counties according to the payment schedule set forth in section
1 of this article for the county share of local agency
expenditures made under this subdivision from January 1, 1991,
on. Payment to counties under this subdivision is subject to
the provisions of section 256.017. Adjustment of any
overestimate or underestimate made by any county shall be made
paid upon the direction of the state agency in any succeeding
month.
Sec. 5. Minnesota Statutes 1989 Supplement, section
256.935, subdivision 1, is amended to read:
Subdivision 1. On the death of any person receiving public
assistance through aid to dependent children, the county agency
shall pay an amount for funeral expenses not exceeding $370 and
actual cemetery charges. No funeral expenses shall be paid if
the estate of the deceased is sufficient to pay such expenses or
if the children, or spouse, who were legally responsible for the
support of the deceased while living, are able to pay such
expenses; provided, that the additional payment or donation of
the cost of cemetery lot, interment, religious service, or for
the transportation of the body into or out of the community in
which the deceased resided, shall not limit payment by the
county agency as herein authorized. Freedom of choice in the
selection of a funeral director shall be granted to persons
lawfully authorized to make arrangements for the burial of any
such deceased recipient. In determining the sufficiency of such
estate, due regard shall be had for the nature and marketability
of the assets of the estate. The county agency may grant
funeral expenses where the sale would cause undue loss to the
estate. Any amount paid for funeral expenses shall be a prior
claim against the estate, as provided in section 524.3-805, and
any amount recovered shall be reimbursed to the agency which
paid the expenses. The commissioner shall specify requirements
for reports, including fiscal reports, according to section
256.01, subdivision 2, paragraph (17). For the period from
January 1 to June 30, The state share of local agency
expenditures shall be 50 percent and the county share shall be
50 percent. The state shall reimburse the county for 50 percent
of any payments local agency expenditures made for funeral
expenses except as provided for in section 256.017. Subsequent
to July 1 of each year, the state agency shall reimburse the
county agency for the funds expended during the January 1 to
June 30 period. For the period from July 1 to December 31, the
state shall reimburse the county for 100 percent of any payments
made for funeral expenses except as provided for in section
256.017.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule set forth in section 1 of this
article for the county share of local agency expenditures made
under this subdivision from January 1, 1991, on. Payment to
counties under this subdivision is subject to the provisions of
section 256.017.
Sec. 6. Minnesota Statutes 1989 Supplement, section
256B.041, subdivision 5, is amended to read:
Subd. 5. [PAYMENT BY COUNTY TO STATE TREASURER.] If
required by federal law or rules promulgated thereunder, or by
authorized rule of the state agency, each county shall pay to
the state treasurer the portion of medical assistance paid by
the state for which it is responsible. Effective January 1,
1990, the state rate of participation shall be determined as a
percentage that equals the difference between 100 percent and
the percentage rate of federal financial participation. The
county's share of cost shall be ten percent of that portion not
met by federal funds.
For the period from January 1 to June 30, The county shall
advance ten percent of that portion of medical assistance costs
not met by federal funds, based upon estimates submitted by the
state agency to the county agency, stating the estimated
expenditures for the succeeding month. Upon the direction of
the county agency, payment shall be made monthly by the county
to the state for the estimated expenditures for each month.
Adjustment of any overestimate or underestimate based on actual
expenditures shall be made by the state agency by adjusting the
estimate for any succeeding month. Subsequent to July 1 of each
year, the state agency shall reimburse the county agency for the
funds expended during the January 1 to June 30 period, except as
provided for in section 256.017. For the period from July 1 to
December 31, payments will be made by the state agency, except
as provided for in section 256.017, and the county agency will
be advised of the amounts paid monthly.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of local agency expenditures under this
subdivision from January 1, 1991, on. Payment to counties under
this subdivision is subject to the provisions of section 256.017.
Sec. 7. Minnesota Statutes 1988, section 256B.091,
subdivision 8, is amended to read:
Subd. 8. [ALTERNATIVE CARE GRANTS.] The commissioner shall
provide grants to counties participating in the program to pay
costs of providing alternative care to individuals screened
under subdivision 4 and nursing home or boarding care home
residents who request a screening. Prior to July of each year,
the commissioner shall allocate state funds available for
alternative care grants to each local agency. This allocation
must be made as follows: half of the state funds available for
alternative care grants must be allocated to each county
according to the total number of adults in that county who are
recipients age 65 or older who are reported to the department by
March 1 of each state fiscal year and half of the state funds
available for alternative care grants must be allocated to a
county according to that county's number of Medicare enrollments
age 65 or older for the most recent statistical report. Payment
is available under this subdivision only for individuals (1) for
whom the screening team would recommend nursing home or boarding
care home admission, or continued stay if alternative care were
not available; (2) who are receiving medical assistance or who
would be eligible for medical assistance within 180 days of
admission to a nursing home; (3) who need services that are not
available at that time in the county through other public
assistance; and (4) who are age 65 or older.
The commissioner shall establish by rule, in accordance
with chapter 14, procedures for determining grant reallocations,
limits on the rates for payment of approved services, including
screenings, and submittal and approval of a biennial county plan
for the administration of the preadmission screening and
alternative care grants program. Grants may be used for payment
of costs of providing care-related supplies, equipment, and
services such as, but not limited to, foster care for elderly
persons, day care whether or not offered through a nursing home,
nutritional counseling, or medical social services, which
services are provided by a licensed health care provider, a home
health service eligible for reimbursement under Titles XVIII and
XIX of the federal Social Security Act, or by persons employed
by or contracted with by the county board or the local welfare
agency. The county agency shall ensure that a plan of care is
established for each individual in accordance with subdivision
3, clause (e)(2), and that a client's service needs and
eligibility is reassessed at least every six months. The plan
shall include any services prescribed by the individual's
attending physician as necessary and follow up services as
necessary. The county agency shall provide documentation to the
commissioner verifying that the individual's alternative care is
not available at that time through any other public assistance
or service program and shall provide documentation in each
individual's plan of care and to the commissioner that the most
cost-effective alternatives available have been offered to the
individual and that the individual was free to choose among
available qualified providers, both public and private. The
county agency shall document to the commissioner that the agency
made reasonable efforts to inform potential providers of the
anticipated need for services under the alternative care grants
program, including a minimum of 14 days written advance notice
of the opportunity to be selected as a service provider and an
annual public meeting with providers to explain and review the
criteria for selection, and that the agency allowed potential
providers an opportunity to be selected to contract with the
county board. Grants to counties under this subdivision are
subject to audit by the commissioner for fiscal and utilization
control.
The county must select providers for contracts or
agreements using the following criteria and other criteria
established by the county:
(1) the need for the particular services offered by the
provider;
(2) the population to be served, including the number of
clients, the length of time services will be provided, and the
medical condition of clients;
(3) the geographic area to be served;
(4) quality assurance methods, including appropriate
licensure, certification, or standards, and supervision of
employees when needed;
(5) rates for each service and unit of service exclusive of
county administrative costs;
(6) evaluation of services previously delivered by the
provider; and
(7) contract or agreement conditions, including billing
requirements, cancellation, and indemnification.
The county must evaluate its own agency services under the
criteria established for other providers. The county shall
provide a written statement of the reasons for not selecting
providers.
The commissioner shall establish a sliding fee schedule for
requiring payment for the cost of providing services under this
subdivision to persons who are eligible for the services but who
are not yet eligible for medical assistance. The sliding fee
schedule is not subject to chapter 14 but the commissioner shall
publish the schedule and any later changes in the State Register
and allow a period of 20 working days from the publication date
for interested persons to comment before adopting the sliding
fee schedule in final forms.
The commissioner shall apply for a waiver for federal
financial participation to expand the availability of services
under this subdivision. The commissioner shall provide grants
to counties from the nonfederal share, unless the commissioner
obtains a federal waiver for medical assistance payments, of
medical assistance appropriations. A county agency may use
grant money to supplement but not supplant services available
through other public assistance or service programs and shall
not use grant money to establish new programs for which public
money is available through sources other than grants provided
under this subdivision. A county agency shall not use grant
money to provide care under this subdivision to an individual if
the anticipated cost of providing this care would exceed the
average payment, as determined by the commissioner, for the
level of care that the recipient would receive if placed in a
nursing home or boarding care home. For the period from January
1 to June 30, The nonfederal share may be used to pay up to 90
percent of the start-up and service delivery costs of providing
care under this subdivision. The state share of the nonfederal
portion of costs shall be 90 percent and the county share shall
be ten percent. Each county agency that receives a grant shall
pay ten percent of the costs for persons who are eligible for
the services but who are not yet eligible for medical
assistance. Subsequent to July 1 of each year, the state agency
shall reimburse the county agency for the funds expended during
the January 1 to June 30 period, except as provided for in
section 256.017. For the period from July 1 to December 31, the
nonfederal share may be used to pay up to 100 percent of the
start-up and service delivery costs of providing care under this
subdivision.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of costs incurred under this subdivision
from January 1, 1991, on, for individuals who are receiving
medical assistance.
Beginning July 1, 1991, the state will reimburse counties,
up to the limit of state appropriations, according to the
payment schedule in section 1 of this article, for the county
share of costs incurred under this subdivision from January 1,
1991, on, for individuals who would be eligible for medical
assistance within 180 days of admission to a nursing home.
The commissioner shall promulgate emergency rules in
accordance with sections 14.29 to 14.36, to establish required
documentation and reporting of care delivered.
Sec. 8. Minnesota Statutes 1988, section 256B.19,
subdivision 1, is amended to read:
Subdivision 1. [DIVISION OF COST.] The cost of medical
assistance paid by each county of financial responsibility shall
be borne as follows: For the period from January 1 to June 30,
payments shall be made by the state to the county for that
portion of medical assistance paid by the federal government and
the state on or before the 20th day of each month for the
succeeding month upon requisition from the county showing the
amount required for the succeeding month. Ninety percent of the
expense of assistance not paid by federal funds available for
that purpose shall be paid by the state and ten percent shall be
paid by the county of financial responsibility, except as
provided for in section 256.017.
For the period from January 1 to June 30, For counties that
participate in a Medicaid demonstration project under sections
256B.69 and 256B.71, the division of the nonfederal share of
medical assistance expenses for payments made to prepaid health
plans or for payments made to health maintenance organizations
in the form of prepaid capitation payments, this division of
medical assistance expenses shall be 95 percent by the state and
five percent by the county of financial
responsibility. Subsequent to July 1 of each year, the state
agency shall reimburse the county agency for the funds expended
during the January 1 to June 30 period, except as provided for
in section 256.017.
For the period from July 1 to December 31, except as
provided for in section 256.017, payments shall be made by the
state to the county for that portion of medical assistance paid
by the federal government and the state on or before the 20th
day of each month for the succeeding month upon requisition from
the county showing the amount required for the succeeding
month. The expense of assistance not paid by federal funds
available for that purpose shall be paid by the state.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of costs incurred under this subdivision
from January 1, 1991, on. Payment to counties under this
subdivision is subject to the provisions of section 256.017.
In counties where prepaid health plans are under contract
to the commissioner to provide services to medical assistance
recipients, the cost of court ordered treatment ordered without
consulting the prepaid health plan that does not include
diagnostic evaluation, recommendation, and referral for
treatment by the prepaid health plan is the responsibility of
the county of financial responsibility.
Sec. 9. Minnesota Statutes 1988, section 256B.19, is
amended by adding a subdivision to read:
Subd. 2a. [DIVISION OF COSTS.] Beginning July 1, 1991, the
state shall reimburse counties according to the payment schedule
in section 1 of this article, for the nonfederal share of costs
incurred for medical assistance common carrier transportation
and related travel expenses provided for medical purposes to
medical assistance recipients from January 1, 1991, on. For
purposes of this subdivision, transportation shall have the
meaning given it in Code of Federal Regulations, title 42,
section 440.170(a), as amended through October 1, 1987, and
travel expenses shall have the meaning given in Code of Federal
Regulations, title 42, section 440.170(a)(3), as amended through
October 1, 1987.
The county shall ensure that only the least costly, most
appropriate transportation and travel expenses are used. The
state may enter into volume purchase contracts, or use a
competitive bidding process, whenever feasible, to minimize the
costs of transportation services. If the state has entered into
a volume purchase contract or used the competitive bidding
procedures of chapter 16B to arrange for transportation
services, the county may be required to use such arrangements to
be eligible for state reimbursement of the 50 percent county
share of medical assistance common carrier transportation and
related travel expenses provided for medical purposes.
Sec. 10. Minnesota Statutes 1989 Supplement, section
256D.03, subdivision 2, is amended to read:
Subd. 2. For the period from January 1 to June 30, state
aid shall be paid to local agencies for 75 percent of all
general assistance and work readiness grants up to the standards
of sections 256D.01, subdivision 1a, and 256D.051, and according
to procedures established by the commissioner, except as
provided for under section 256.017. Subsequent to July 1 of
each year, the state agency shall reimburse the county agency
for the funds expended during the January 1 to June 30 period,
except as provided for in section 256.017.
For the period from July 1 to December 31, After December
31, 1980, state aid shall be paid to local agencies for 100 75
percent of all general assistance and work readiness grants up
to the standards of sections 256D.01, subdivision 1a, and
256D.051, and according to procedures established by the
commissioner, except as provided for under section 256.017 and
except that, after December 31, 1988 1987, state aid is reduced
to 65 percent of all work readiness assistance if the local
agency does not make occupational or vocational literacy
training available and accessible to recipients who are eligible
for assistance under section 256D.051.
After December 31, 1988 1986, state aid must be paid to
local agencies for 65 percent of work readiness assistance paid
under section 256D.051 if the county does not have an approved
and operating community investment program.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of local agency expenditures made under
this subdivision from January 1, 1991, on. Payment to counties
under this subdivision is subject to the provisions of section
256.017.
Subd. 2a. [LOCAL AGENCY OPTIONS.] Any local agency may,
from its own resources, make payments of general assistance and
work readiness assistance: (a) at a standard higher than that
established by the commissioner without reference to the
standards of section 256D.01, subdivision 1; or (b) to persons
not meeting the eligibility standards set forth in section
256D.05, subdivision 1, or 256D.051 but for whom the aid would
further the purposes established in the general assistance or
work readiness program in accordance with rules adopted by the
commissioner pursuant to the administrative procedure act.
Sec. 11. Minnesota Statutes 1988, section 256D.03,
subdivision 6, is amended to read:
Subd. 6. [DIVISION OF COSTS.] The state share of local
agency expenditures for general assistance medical care shall be
90 percent and the county share shall be ten percent. The state
shall pay 100 percent of the cost of general assistance medical
care paid pursuant to this section, Payments made under this
subdivision shall be made in accordance with sections 256B.041,
subdivision 5, and 256B.19, subdivision 1, except as provided
for in section 256.017.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of costs incurred under this subdivision
from January 1, 1991, on. Payment to counties under this
subdivision is subject to the provisions of section 256.017.
Notwithstanding any provision to the contrary, beginning
July 1, 1991, the state shall pay 100 percent of the costs for
centralized claims processing by the department of
administration relative to claims beginning January 1, 1991, and
submitted on behalf of general assistance medical care
recipients by vendors in the general assistance medical care
program.
Beginning July 1, 1991, the state shall reimburse counties
up to the limit of state appropriations for general assistance
medical care common carrier transportation and related travel
expenses provided for medical purposes after December 31, 1990.
Reimbursement shall be provided according to the payment
schedule set forth in section 1 of this article. For purposes
of this subdivision, transportation shall have the meaning given
it in Code of Federal Regulations, title 42, section 440.170(a),
as amended through October 1, 1987, and travel expenses shall
have the meaning given in Code of Federal Regulations, title 42,
section 440.170(a)(3), as amended through October 1, 1987.
The county shall ensure that only the least costly most
appropriate transportation and travel expenses are used. The
state may enter into volume purchase contracts, or use a
competitive bidding process, whenever feasible, to minimize the
costs of transportation services. If the state has entered into
a volume purchase contract or used the competitive bidding
procedures of chapter 16B to arrange for transportation
services, the county may be required to use such arrangements to
be eligible for state reimbursement for general assistance
medical care common carrier transportation and related travel
expenses provided for medical purposes.
In counties where prepaid health plans are under contract
to the commissioner to provide services to general assistance
medical care recipients, the cost of court ordered treatment
that does not include diagnostic evaluation, recommendation, or
referral for treatment by the prepaid health plan is the
responsibility of the county of financial responsibility.
Sec. 12. Minnesota Statutes 1989 Supplement, section
256D.051, subdivision 6, is amended to read:
Subd. 6. [SERVICE COSTS.] The commissioner shall reimburse
92 percent of local agency expenditures for providing work
readiness services including direct participation expenses and
administrative costs., except as provided in section 256.017;
and reimbursement from the state appropriation must not exceed
an average of $260 each year for each registrant who has
completed an employment development plan for direct expenses
incurred by the registrant for transportation, clothes, and
tools necessary for employment. Beginning July 1, 1991, the
state will reimburse counties, up to the limit of state
appropriations, according to the payment schedule in section 1
of this article for the county share of costs incurred under
this subdivision from January 1, 1991, on. Beginning January 1,
1991, the average reimbursable cost per recipient must not
exceed $283 annually. Payment to counties under this
subdivision is subject to the provisions of section 256.017.
After paying direct expenses as needed by individual
registrants, the local agency may use any remaining money to
provide additional services as needed by any registrant
including employability assessments and employability
development plans, education, orientation, employment search
assistance, placement, other work experience, on-the-job
training, and other appropriate activities and the
administrative costs incurred providing these services.
Sec. 13. Minnesota Statutes 1989 Supplement, section
256D.36, subdivision 1, is amended to read:
Subdivision 1. [STATE PARTICIPATION.] Commencing January
1, 1974, the commissioner shall certify to each local agency the
names of all county residents who were eligible for and did
receive aid during December, 1973, pursuant to a categorical aid
program of old age assistance, aid to the blind, or aid to the
disabled. Each year for the period from January 1 to June 30,
From and after January 1, 1980, until January 1, 1981, the state
shall pay 85 70 percent and the county shall pay 15 30 percent
of the supplemental aid calculated for each county resident
certified under this section who is an applicant for or
recipient of supplemental security income, except as provided
for in section 256.017. After June 30 of each year, the state
agency shall reimburse the county agency for the funds expended
during the January 1 to June 30 period, except as provided for
in section 256.017. For the period from July 1 to December 31,
the state agency shall pay 100 percent of the supplemental aid
calculated for each county resident certified under this section
who is an applicant for or recipient of supplemental security
income, except as provided for in section 256.017. After
December 31, 1980, the state share of aid paid shall be 85
percent and the county share shall be 15 percent. The amount of
supplemental aid for each individual eligible under this section
shall be calculated according to the formula in title II,
section 212 (a) (3) of Public Law Number 93-66, as amended.
Beginning July 1, 1991, the state will reimburse counties
according to the payment schedule in section 1 of this article
for the county share of local agency expenditures for financial
benefits to individuals under this subdivision from January 1,
1991, on. Payment to counties under this subdivision is subject
to the provisions of section 256.017.
Sec. 14. Minnesota Statutes 1988, section 256G.01,
subdivision 3, is amended to read:
Subd. 3. [PROGRAM COVERAGE.] This chapter applies to all
programs administered by the commissioner in which residence is
the determining factor in establishing financial
responsibility. These include, but are not limited to: Aid to
Families with Dependent Children; medical assistance; general
assistance; work readiness; general assistance medical care;
Minnesota supplemental aid; commitment proceedings, including
voluntary admissions; poor relief funded wholly through local
agencies; and social services, including title XX, IV-E and
other components of the community social services act, sections
256E.01 to 256E.12. It also applies to service responsibility
in the income maintenance and health care programs administered
by the commissioner.
Sec. 15. Minnesota Statutes 1989 Supplement, section
256G.02, subdivision 4, is amended to read:
Subd. 4. [COUNTY OF FINANCIAL RESPONSIBILITY.] (a) "County
of financial responsibility" has the meanings in paragraphs (b)
to (e) (h).
(b) For an applicant who resides in the state and is not in
a facility described in subdivision 6, it means the county in
which the applicant resides at the time of application.
(c) For an applicant who resides in a facility described in
subdivision 6, it means the county in which the applicant last
resided in nonexcluded status immediately before entering the
facility.
(d) For an applicant who has not resided in this state for
any time other than the excluded time, and subject to the
limitations in section 256G.03, subdivision 2, it means the
county in which the applicant resides at the time of making
application.
(e) For medical assistance purposes only, and for an infant
who has resided only in an excluded time facility, it means the
county that would have been responsible for the infant if
eligibility had been established, based on that of the birth
mother, at the time of application.
(f) Notwithstanding paragraphs (b) to (d), the county of
financial responsibility for medical assistance recipients is
the county from which a recipient is receiving a maintenance
grant or money payment under the program of Aid to Families with
Dependent Children or Minnesota supplemental aid.
(g) Notwithstanding paragraphs (b) to (f), the county of
financial responsibility for social services for a person
receiving Aid to Families with Dependent Children, general
assistance, general assistance medical care, medical assistance,
or Minnesota supplemental aid is the county from which that
person is receiving the aid or assistance. If more than one
named program is open concurrently, financial responsibility for
social services attaches to the program that has the earliest
date of application and has been open without interruption.
(f) (h) Notwithstanding paragraphs (b) to (e) (g), the
county of financial responsibility for semi-independent living
services provided under section 252.275, and Minnesota Rules,
parts 9525.0500 to 9525.0660, is the county of residence in
nonexcluded status immediately before the placement into or
request for those services.
Sec. 16. Minnesota Statutes 1988, section 256G.05, is
amended to read:
256G.05 [NON-MINNESOTA RESIDENTS RESPONSIBILITY FOR
EMERGENCIES.]
Subdivision 1. [RESIDENCE NOT A TEST.] In situations
involving emergencies verified by a local agency, financial
responsibility for aid to families with dependent children,
general assistance, general assistance medical care, and
Minnesota supplemental aid rests with the county in which an
otherwise eligible person is physically present when the
application is filed. Financial responsibility is limited to 30
days unless otherwise specified in the context of the program.
Subd. 2. [NON MINNESOTA RESIDENTS.] State residence is not
required for receiving emergency assistance in the general
assistance, general assistance medical care, and Minnesota
supplemental aid programs only. The receipt of emergency
assistance must not be used as a factor in determining county or
state residence.
Sec. 17. Minnesota Statutes 1988, section 256G.07, is
amended to read:
256G.07 [MOVING TO ANOTHER COUNTY.]
Subdivision 1. [EFFECT OF MOVING.] Except as provided in
subdivision 4, A person who has applied for and is receiving
services or assistance under a program governed by this chapter,
in any county in this state, and who moves to another county in
this state, is entitled to continue to receive that assistance
from the county from which that person has moved until that
person has resided in nonexcluded status for two full calendar
months in the county to which that person has moved. For
purposes of general assistance and general assistance medical
care, this time period is, however, one full calendar month.
Subd. 2. [TRANSFER OF RECORDS.] Before the person has
resided in nonexcluded status for two calendar months or one
calendar month in the case of general assistance and general
assistance medical care, in the county to which that person has
moved, the local agency of the county from which the person has
moved shall complete an eligibility review and transfer all
necessary records relating to that person to the local agency of
the county to which the person has moved.
Subd. 3. [CONTINUATION OF CASE.] When the case is
terminated for 30 days or less before the recipient reapplies,
that case remains the financial responsibility of the county
from which the recipient moved until the residence requirement
in subdivision 1 is met.
Subd. 3a. [MULTIPLE FINANCIAL RESPONSIBILITY.] When more
than one county becomes financially responsible for a case
involving a single assistance unit, under a program covered by
this chapter, that case must be immediately reconsidered by the
affected county agencies. Beginning with the first day of the
calendar month after that reconsideration, financial
responsibility for the entire assistance unit belongs to the
county that was initially responsible for the program with the
earliest date of application.
Subd. 4. [SOCIAL SERVICE PROVISION.] The types and level
of social services to be provided in any case governed by this
chapter are those otherwise provided in the county in which the
person is physically residing at the time those services are
provided.
Sec. 18. Minnesota Statutes 1988, section 256G.10, is
amended to read:
256G.10 [DERIVATIVE SETTLEMENT ELIMINATED.]
Except as described in section 256G.02, subdivision 4,
paragraph (e), residence under this chapter must be determined
independently for each applicant. The residence of the parent
or guardian does not determine the residence of the child or
ward. Physical or legal custody has no bearing on residence
determinations. This section does not, however, apply to
situations involving another state or limit the application of
an interstate compact.
Sec. 19. Minnesota Statutes 1988, section 256G.11, is
amended to read:
256G.11 [NO RETROACTIVE EFFECT.]
This chapter is not retroactive and does not require the
retroactive redetermination of financial responsibility for
cases existing on January 1, 1988. This chapter applies only to
applications and redeterminations of eligibility taken or
routinely made after January 1, 1988.
Notwithstanding this section, existing social services
cases shall be treated in the same manner as cases for those
programs outlined in section 256G.02, subdivision 4, paragraph
(g), for which an application is taken or a redetermination is
made after January 1, 1988.
Sec. 20. Laws 1989, chapter 282, article 5, section 133,
is amended to read:
Sec. 133. [REPEALER.]
Subdivision 1. [WELFARE REFORM.] Minnesota Statutes 1988,
sections 256D.051, subdivision 6a, and section 268.86,
subdivision 7, are is repealed.
Subd. 2. [AFDC AND MSA SIMPLIFICATION.] (a) Sections
256D.01, subdivision 1c; and 256D.06, subdivisions 3, 4, and 6,
are repealed.
(b) Sections 256D.35, subdivisions 2, 3, 4, and 8; 256D.36,
subdivision 2; 256D.37, subdivisions 2, 4, 6, 7, 8, 9, 10, 11,
12, 13, and 14; 256D.38; 256D.39; 256D.41; 256D.42; and 256D.43,
are repealed.
Subd. 3. [GENERAL ASSISTANCE AND WORK READINESS.]
Minnesota Statutes 1988, sections 256D.051, subdivision 6a;
256D.06, subdivisions 3, 4, 6, and 6a; and 256D.052,
subdivisions 5, 6, and 7, are repealed effective October 1, 1990.
Sec. 21. [REPEALER.]
Minnesota Statutes 1988, section 245.775, is repealed
effective July 1, 1990.
Sec. 22. [REENACTMENT.]
Minnesota Statutes 1988, section 256D.051, subdivision 6a,
is reenacted retroactively to July 1, 1989, and its repeal by
Laws 1989, chapter 282, article 5, section 133, subdivision 1,
is of no effect.
Sec. 23. [EFFECTIVE DATE.]
Sections 1 to 22 are effective the day after final
enactment.
ARTICLE 17
MISCELLANEOUS
Section 1. Minnesota Statutes 1988, section 270.067,
subdivision 1, is amended to read:
Subdivision 1. [STATEMENT OF PURPOSE.] State governmental
policy objectives are sought to be achieved both by direct
expenditure of governmental funds and by the granting of special
and selective tax relief or tax expenditures. Both direct
expenditures of governmental funds and tax expenditures have an
effect on the ability of the state and local governments to
lower tax rates or to increase expenditures. As a result, tax
expenditures should receive a regular and comprehensive review
by the legislature as to (a) their total cost, (b) their
effectiveness in achieving their objectives, (c) their effect on
the fairness and equity of the distribution of the tax burden,
and (d) the public and private cost of administering tax
expenditure financed programs. This section is intended to
facilitate a regular review of the state and local tax
expenditure budget by the legislature by providing for the
preparation of a regular biennial tax expenditure budget.
Sec. 2. Minnesota Statutes 1988, section 270.067,
subdivision 2, is amended to read:
Subd. 2. [PREPARATION; SUBMISSION.] The commissioner of
revenue shall prepare a tax expenditure budget for the
state every four years. The tax expenditure budget report shall
be submitted to the legislature as a supplement to the
governor's budget and at the same time as provided for
submission of the budget pursuant to section 16A.11, subdivision
1, except that the next such report shall be submitted in 1993,
and every four years thereafter.
Sec. 3. Minnesota Statutes 1988, section 295.34,
subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 2, every
telephone company shall file a return with the commissioner of
revenue on or before April 15 of each year, and submit payment
therewith, of the following percentages of its gross earnings,
including long distance access charges, of the preceding
calendar year derived from business within this state:
(a) for gross earnings from service to rural subscribers
and from exchange business of all cities of the fourth class and
statutory cities having a population of 10,000 or less
for calendar years beginning before December 31, 1988, four
percent,
for calendar year 1989, three percent, provided that the
estimated tax payments made on March 15 and June 15, 1989,
pursuant to section 295.365, must be made as if the tax were
imposed at a rate of four percent,
for calendar year 1990, 1.5 percent,
for calendar year 1991, one percent, and
for calendar years beginning after December 31, 1991,
exempt; and
(b) for gross earnings derived from all other business
for calendar years beginning before December 31, 1988,
seven percent,
for calendar year 1989, 5.5 percent, provided that the
estimated tax payments made on March 15 and June 15, 1989,
pursuant to section 295.365, must be made as if the tax were
imposed at a rate of seven percent,
for calendar year 1990, three percent,
for calendar year 1991, 2.5 percent, and
for calendar years beginning after December 31, 1991,
exempt.
A tax shall not be imposed on the gross earnings of a
telephone company from business originating or terminating
outside of Minnesota, except that the gross earnings tax is
imposed on all long distance access charges allocated to
interstate service received in payment from a telephone company
before December 31, 1989.
The tax imposed is in lieu of all other taxes, except the
taxes imposed by chapter 290, property taxes assessed beginning
in 1989, payable in 1990, and sales and use taxes imposed as a
result of chapter 297A. All money paid by a company for
connecting fees and switching charges to any other company shall
be reported as earnings by the company to which they are paid.
For the purposes of this section, the population of any
statutory city shall be considered as that stated in the latest
federal census.
(c) For the period January 1, 1984 through December 31,
1986, all money paid by a company for connecting fees and
switching charges, including carriers access charges except that
portion paid for directory assistance and billing and collection
services, to any other company must be reported as earnings by
the company to which they are paid, but are not deemed to be
earnings of the collecting and paying company.
(d) Gross earnings include customer access charges.
Customer access charges are not gross earnings from business
originating or terminating outside of Minnesota for purposes of
the gross earnings tax. Customer access charges include the
flat rate monthly charges received by a telephone company from
its customers, that are authorized by the Federal Communications
Commission and that compensate a telephone company for the cost
of a local telephone plant to the extent attributable to
interstate service.
Sec. 4. [STATEMENT OF PURPOSE.]
The purpose of section 3 is to confirm and clarify the
original intent of the legislature in enacting the exemption for
gross earnings from business originating or terminating outside
of Minnesota in Minnesota Statutes, section 295.34. Section 3
does not create a new category of earnings subject to the gross
earnings tax. It ratifies existing state interpretation of the
telephone gross earnings tax and Minnesota Statutes, section
295.34.
Sec. 5. Minnesota Statutes 1989 Supplement, section
357.021, subdivision 1a, is amended to read:
Subd. 1a. Every person, including the state of Minnesota
and all bodies politic and corporate, who shall transact any
business in the district court, shall pay to the court
administrator of said court the sundry fees prescribed in
subdivision 2. When the public authority responsible for child
support enforcement is a party to any action or proceeding in
the district court or according to section 518.551, subdivision
10, no fee is required under this section. The court
administrator shall transmit the fees monthly to the county
treasurer who shall forward the funds to the state treasurer for
deposit in the state treasury and credit to the general fund.
Sec. 6. Minnesota Statutes 1988, section 373.40,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section
475.51.
(b) "Capital improvement" means acquisition or betterment
of public lands, buildings, or other improvements within the
county for the purpose of a county courthouse, administrative
building, health or social service facility, correctional
facility, jail, law enforcement center, hospital, morgue,
library, park, and roads and bridges. An improvement must have
an expected useful life of five years or more to qualify.
"Capital improvement" does not include light rail transit or any
activity related to it or a recreation or sports facility
building (such as, but not limited to, a gymnasium, ice arena,
racquet sports facility, swimming pool, exercise room or health
spa), unless the building is part of an outdoor park facility
and is incidental to the primary purpose of outdoor recreation.
(c) "Commissioner" means the commissioner of trade and
economic development.
(d) "Metropolitan county" means a county located in the
seven-county metropolitan area as defined in section 473.121 or
a county with a population of 90,000 or more.
(e) "Population" means the population established by the
most recent of the following (determined as of the date the
resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United
States Bureau of the Census, or
(3) a population estimate made either by the metropolitan
council or by the state demographer under section 116K.04,
subdivision 4, clause (10).
(f) "Taxable gross Tax capacity" means total taxable gross
tax capacity, but does not include captured gross tax capacity.
Sec. 7. Minnesota Statutes 1988, section 373.40,
subdivision 2, is amended to read:
Subd. 2. [APPLICATION OF ELECTION REQUIREMENT.] (a) Bonds
issued by a county to finance capital improvements under an
approved capital improvement plan are not subject to the
election requirements of section 375.18 or 475.58. The bonds
must be approved by vote of at least three-fifths of the members
of the county board. In the case of a metropolitan county, the
bonds must be approved by vote of at least two-thirds of the
members of the county board.
(b) Before each issuance of bonds qualifying under this
section, the county must publish a notice of its intention to
issue the bonds and the date and time of a hearing to obtain
public comment on the matter. The notice must be published in
the official newspaper of the county or in a newspaper of
general circulation in the county. The notice must be published
at least 14, but not more than 28, days before the date of the
hearing.
(c) A county may issue the bonds only upon obtaining the
approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the
issuance is signed by voters equal to five percent of the votes
cast in the county in the last general election and is filed
with the county auditor within 30 days after the public
hearing. The commissioner of revenue shall prepare a suggested
form of the question to be presented at the election.
Sec. 8. Minnesota Statutes 1988, section 444.075,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the term "municipality" means a home rule charter or
statutory city, wherever located, except a city of the first
class, or a town located in a metropolitan county as defined in
section 473.121, subdivision 4 that is not in an orderly
annexation process on the date of enactment of this act. The
term "governing body" means the town board of supervisors with
respect to towns.
Sec. 9. Minnesota Statutes 1988, section 444.16, is
amended to read:
444.16 [STORM SEWER IMPROVEMENT DISTRICTS; MUNICIPALITY
DEFINED.]
Subdivision 1. [DEFINITIONS.] For the purposes of Laws
1974, chapter 206 "municipality" means any city, however
organized sections 444.16 to 444.21 the terms in this section
have the meanings given them.
Subd. 2. [MUNICIPALITY.] "Municipality" means a home rule
charter or statutory city or a town that is not in an orderly
annexation process on the date of enactment of this act.
Subd. 3. [GOVERNING BODY.] "Governing body" means the city
council for a city and the town board for a town.
Sec. 10. Minnesota Statutes 1988, section 444.17, is
amended to read:
444.17 [ESTABLISHMENT OF DISTRICT.]
The council governing body of a municipality may by
ordinance adopted by a two-thirds vote of all of its members,
establish within its corporate territorial limits a storm sewer
improvement tax district. The ordinance shall describe with
particularity the territory or area within the municipality to
be included within the district. No such ordinance shall be
adopted until after a public hearing has been held on the
question. A notice of the time, place and purpose of the
hearing shall be published for two successive weeks in the
official newspaper of the municipality or in a qualified
newspaper of general circulation in the municipality and the
last notice shall be at least seven days prior to the day of the
hearing. The ordinance when adopted shall be filed with the
county auditor and county recorder.
Sec. 11. Minnesota Statutes 1988, section 444.18, is
amended to read:
444.18 [AUTHORITY OF COUNCIL GOVERNING BODY; RECOVERY OF
COST; IMPROVEMENT PROCEDURES.]
Subdivision 1. Following the adoption of an ordinance
pursuant to Laws 1974, chapter 206 under sections 444.16 to
444.21, the council governing body may acquire, construct,
reconstruct, extend, maintain, and otherwise improve storm sewer
systems and related facilities within the district. Storm water
holding areas and ponds within and without the corporate limits
municipality may also be acquired, constructed, maintained, and
improved for the benefit of any such district. The cost of the
systems and facilities described in this subdivision may be
recovered by the tax authorized in section 444.20.
Subd. 2. The procedures of sections 429.031 to 429.081
shall apply when the council governing body of a municipality
determines to make an improvement pursuant to this section.
Sec. 12. Minnesota Statutes 1988, section 444.19, is
amended to read:
444.19 [BONDS.]
At any time after a contract for the construction of all or
part of an improvement has been entered into or the work has
been ordered done by day labor, the council governing body may
issue obligations in such an amount as it deems necessary to
defray in whole or in part the expense incurred and estimated to
be incurred in making the improvement, including every item of
cost from inception to completion and all fees and expenses
incurred in connection with the improvement or the financing
thereof. The obligations shall be payable primarily out of the
proceeds of the tax levied pursuant to section 444.20.
The council governing body may by resolution adopted prior to
the sale of obligations pledge the full faith, credit and taxing
power of the municipality to assure payment of the principal and
interest in the event the proceeds of the tax levy in the
district are insufficient to pay such the principal and
interest. Obligations shall be issued in accordance with
chapter 475, except that an election is not required, and the
amount of any such the obligations is not included in
determining the net indebtedness of the municipality under the
provisions of any law or charter limiting such indebtedness.
Sec. 13. Minnesota Statutes 1988, section 444.20, is
amended to read:
444.20 [TAXES.]
The council governing body of a municipality may levy a tax
on all taxable property within the district such taxes as are in
an amount necessary to finance the cost of the improvement,
including maintenance and to pay the principal and interest on
obligations issued pursuant to section 444.19. Such taxes The
tax shall be collected and paid over as other taxes, but shall
be spread only upon the property described in the
ordinance. Such taxes The tax shall be disbursed by the council
governing body only for the benefit of district as established
by the ordinance.
Sec. 14. Minnesota Statutes 1988, section 469.167,
subdivision 2, is amended to read:
Subd. 2. [DURATION.] The designation of an area as an
enterprise zone shall be effective for seven years after the
date of designation, except that enterprise zones in border
cities eligible to receive allocations for tax reductions under
section 469.169, subdivisions 7 and 8, and under section
469.171, subdivision 6a, shall be effective until these
allocations have been expended.
Sec. 15. Minnesota Statutes 1988, section 469.171,
subdivision 7, is amended to read:
Subd. 7. [DURATION.] Each tax reduction provided to a
business pursuant to this subdivision shall terminate not longer
than five years after the effective date of the tax reduction
for the business unless the business is located in a border city
enterprise zone designated under section 469.168, subdivision 4,
clause (c), that is not a city of the first class. Each tax
reduction provided to a business that is located in a border
city enterprise zone designated under section 469.168,
subdivision 4, clause (c), that is not located in a city of the
first class shall terminate not longer than seven years after
the effective date of the tax reduction for the business, may be
provided until the allocations provided under subdivision 6a,
and under section 469.169, subdivisions 7 and 8, have been
expended. Subject to the five-year or the seven-year limitation
in this subdivision, the tax reductions may be provided after
expiration of the zone's designation.
Sec. 16. Minnesota Statutes 1988, section 474A.061,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] An issuer may apply for an
allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by
(1) a preliminary resolution, (2) a statement of bond counsel
that the proposed issue of obligations requires an allocation
under this chapter, (3) the type of qualified bonds to be
issued, and (4) an application deposit in the amount of one
percent of the requested allocation before the last Monday in
August, or in the amount of two percent of the requested
allocation on or after the last Monday in August. An issuer
applying for an allocation from the multifamily housing pool who
does not sign an agreement requiring that the project comply
with the gross rent restrictions of the low-income housing
credit program under section 42 of the Internal Revenue Code of
1986, as amended through December 31, 1988, must submit an
additional application deposit in the amount of two percent of
the requested allocation before the last Monday in August, or in
the amount of one percent of the requested allocation on or
after the last Monday in August. An entitlement issuer may not
apply for an allocation from the multifamily housing pool or
from the public facilities pool unless it has either permanently
issued bonds equal to the amount of its entitlement allocation
for the current year plus any amount of bonding authority
carried forward from previous years or returned for reallocation
all of its unused entitlement allocation. For purposes of this
subdivision, its entitlement allocation includes an amount
obtained under section 474A.04, subdivision 6.
Sec. 17. Minnesota Statutes 1988, section 474A.061,
subdivision 2, is amended to read:
Subd. 2. [ALLOCATION PROCEDURE.] From the beginning of the
calendar year until the last Monday in August, the commissioner
shall allocate available bonding authority under this section on
Monday of each week to applications received on or before the
Monday of the preceding week. From the beginning of the
calendar year until the last Monday in July, the commissioner
shall allocate available bonding authority from the multifamily
housing pool only to issuers who sign an agreement with the
commissioner requiring that the project comply with the gross
rent restrictions of the low-income housing credit program under
section 42 of the Internal Revenue Code of 1986, as amended
through December 31, 1988.
(a) From the beginning of the calendar year until the last
Monday in July, if there are two or more qualifying applications
for residential rental project bonds from the multifamily
housing pool and there is insufficient bonding authority to
provide allocations for all projects in any one week after all
eligible bonding authority has been transferred as provided in
section 474A.081, the available bonding authority shall be
awarded by lot unless otherwise agreed to by the respective
issuers.
After the last Monday in July, if there are two or more
applications for residential rental project bonds from the
multifamily housing pool and there is insufficient bonding
authority to provide allocations for all projects in any one
week after all eligible bonding authority has been transferred
as provided in section 474A.081, the available bonding authority
must be awarded to the issuer agreeing to require that the
project comply with the gross rent restrictions of the
low-income housing credit program under section 42 of the
Internal Revenue Code of 1986, as amended through December 31,
1988. If all issuers agree to the gross rent restriction
requirement, the available bonding authority shall be awarded by
lot unless otherwise agreed to by the respective issuers. If
there is additional bonding authority available after
allocations have been awarded to all issuers agreeing to the
gross rent restriction requirement and there is insufficient
bonding authority to provide allocations for all other projects
in any one week, the available bonding authority shall be
awarded by lot unless otherwise agreed to by the respective
issuers.
(b) If there are two or more applications for manufacturing
projects from the manufacturing pool and there is insufficient
bonding authority to provide allocations for all projects in any
one week after all eligible bonding authority has been
transferred as provided in section 474A.081, the available
bonding authority shall be awarded by lot unless otherwise
agreed to by the respective issuers.
(c) If there are two or more applications for public
facility bonds from the public facilities pool and there is
insufficient bonding authority to provide allocations for all
projects in any one week, the available bonding authority shall
be awarded by lot unless otherwise agreed to by the respective
issuers.
If an application is rejected, the commissioner must notify
the applicant and return the application deposit to the
applicant within 30 days unless the applicant requests in
writing that the application be resubmitted. The granting of an
allocation of bonding authority under this section must be
evidenced by a certificate of allocation.
Sec. 18. Minnesota Statutes 1988, section 474A.061,
subdivision 4, is amended to read:
Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an
issuer that receives an allocation under this section determines
that it will not issue obligations equal to all or a portion of
the allocation received under this section by the end of the
current year or within the time period permitted by federal tax
law, the issuer must notify the department. If the issuer
notifies the department prior to the last Monday in August, the
amount of allocation returned must be reallocated through the
pool from which it was originally allocated. If the issuer
notifies the department on or after the last Monday in August,
the amount of allocation returned must be reallocated through
the unified pool. If the issuer notifies the department after
the last Monday in November, the amount of allocation returned
must be reallocated to the Minnesota housing finance agency.
(b) An issuer that returns for reallocation all or a
portion of an allocation received under this section shall
receive within 30 days a refund of all of its application
deposit deposits equal to:
(1) one-half of the amount on deposit for the amount of
bonding authority returned before the first Monday in November;
(2) one-fourth of the amount on deposit for the amount of
bonding authority returned on or after the first Monday in
November and before the third Monday in November; and
(3) one-eighth of the amount on deposit for the amount of
bonding authority returned on or after the third Monday in
November and before the last Monday in November.
No refund shall be available for allocations returned on or
after the last Monday in November.
Sec. 19. Minnesota Statutes 1988, section 474A.091,
subdivision 2, is amended to read:
Subd. 2. [APPLICATION.] An issuer may apply for an
allocation under this section by submitting to the department an
application on forms provided by the department accompanied by
(1) a preliminary resolution, (2) a statement of bond counsel
that the proposed issue of obligations requires an allocation
under this chapter, (3) the type of qualified bonds to be
issued, and (4) an application deposit in the amount of two
percent of the requested allocation. An issuer applying for an
allocation for residential rental project bonds who does not
sign an agreement requiring that the project comply with the
gross rent restrictions of the low-income housing credit program
under section 42 of the Internal Revenue Code of 1986, as
amended through December 31, 1988, must submit an additional
application deposit in the amount of one percent of the
requested allocation. An entitlement issuer may not apply for
an allocation for public facility bonds, residential rental
project bonds, or mortgage bonds under this section unless it
has either permanently issued bonds equal to the amount of its
entitlement allocation for the current year plus any amount
carried forward from previous years or returned for reallocation
all of its unused entitlement allocation. For purposes of this
subdivision, its entitlement allocation includes an amount
obtained under section 474A.04, subdivision 6.
The Minnesota housing finance agency may not apply for an
allocation for mortgage bonds under this section until after the
last Monday in September. Notwithstanding the restrictions
imposed on unified pool allocations after October 1 under
subdivision 3, paragraph (c)(2), the Minnesota housing finance
agency may be awarded allocations for mortgage bonds from the
unified pool after October 1.
Sec. 20. Minnesota Statutes 1988, section 474A.091,
subdivision 3, is amended to read:
Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner
shall allocate available bonding authority under this section on
the Monday of every other week beginning with the first Monday
in September through and on the last Monday in November.
Applications for allocations must be received by the department
by the Monday preceding the Monday on which allocations are to
be made.
(b) On or before October 1, allocations shall be awarded
from the unified pool in the following order of priority:
(1) applications for small issue bonds, with preference
given to projects to be located in distressed counties
designated under section 297A.257;
(2) applications for residential rental project bonds, with
preference given to issuers agreeing to require that the project
comply with the gross rent restrictions of the low-income
housing credit program under section 42 of the Internal Revenue
Code of 1986, as amended through December 31, 1988;
(3) applications for public facility bonds;
(4) applications for redevelopment bonds;
(5) applications for mortgage bonds; and
(6) applications for governmental bonds.
(c)(1) On the first Monday in October, $20,000,000 of
bonding authority or an amount equal to the total annual amount
of bonding authority allocated to the manufacturing pool under
section 474A.03, subdivision 1, less the amount allocated to
issuers from the manufacturing pool for that year, whichever is
less, is reserved within the unified pool for small issue
bonds. On the first Monday in October, $5,000,000 of bonding
authority or an amount equal to the total annual amount of
bonding authority allocated to the public facilities pool under
section 474A.03, subdivision 1, less the amount allocated to
issuers from the public facilities pool for that year, whichever
is less, is reserved within the unified pool for public facility
bonds. If sufficient bonding authority is not available to
reserve the required amounts for both small issue bonds and
public facility bonds, three-fourths of the remaining available
bonding authority is reserved for small issue bonds and
one-fourth of the remaining available bonding authority is
issuers. If an application is rejected, the commissioner must
notify the applicant and return the application deposit to the
applicant within 30 days unless the applicant requests in
writing that the application be resubmitted. The granting of an
allocation of bonding authority under this section must be
evidenced by issuance of a certificate of allocation.
Sec. 21. [KANDIYOHI COUNTY RURAL DEVELOPMENT FINANCE
AUTHORITY.]
Subdivision 1. [ESTABLISHMENT.] The Kandiyohi county board
may, by adopting a written enabling resolution, establish a
county rural development finance authority that, subject to
subdivision 2, has the following powers: powers of an economic
development authority under Minnesota Statutes, sections 469.090
to 469.107, except for the authority to issue general obligation
bonds under Minnesota Statutes, section 469.102; and powers of a
rural development financing authority under sections 469.142 to
469.151.
Subd. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] If the
county rural development finance authority exercises the powers
of an economic development authority, the county may exercise
all of the powers relating to an economic development authority
granted to a city under Minnesota Statutes, sections 469.090 to
469.108. The levy imposed by the county board under Minnesota
Statutes, section 469.107, is not subject to the levy
limitations in Minnesota Statutes, sections 275.50 to 275.56.
The county rural development finance authority may create and
define the boundaries of economic development districts at any
place or places within the county. Minnesota Statutes, section
469.174, subdivision 10, and the contiguity requirement
specified under Minnesota Statutes, section 469.101, subdivision
1, do not apply to limit the areas that may be designated as
county economic development districts.
Subd. 3. [LIMIT OF POWERS.] (a) The enabling resolution
may impose the following limits on the actions of the authority:
(1) that the authority may not exercise any of the powers
contained in subdivision 1 unless those powers are specifically
authorized in the enabling resolution; and
(2) any other limitation or control established by the
county board by the enabling resolution.
(b) The enabling resolution may be modified at any time,
but may not be applied in a manner that impairs contracts
executed before the modification is made. All modifications to
the enabling resolution must be by written resolution.
(c) Before the commencement of a project by the authority,
the governing body of the municipality in which the project is
to be located or the Kandiyohi county board, if the project is
outside municipal corporate limits, shall by majority vote
approve the project as recommended by the authority.
Subd. 4. [BOARD OF DIRECTORS.] (a) The authority consists
of a board of seven directors. The directors shall be appointed
by the Kandiyohi county board. Each director shall be appointed
to serve for three years or until a successor is appointed and
qualified. No director may serve more than two consecutive
terms. The initial appointment of directors must be made so
that no more than one-third of the directors' positions will
require appointment in any one year due to fulfillment of their
three-year appointment. The appointment of directors must be
made to reflect representation of the entire county by
population, appointing one director to represent each of the
five county commissioner districts. The other two directors
must be representatives of various county-based economic
development organizations or be directors at-large. No more
than two directors may reside in any one county commissioner
district.
(b) Two of the directors initially appointed shall serve
for terms of one year, two for two years, and three for three
years. Each vacancy must be filled for the unexpired term in
the manner in which the original appointment was made. A
vacancy occurs if a director no longer resides in the county.
No director shall be an officer, employee, director,
shareholder, or member of any corporation, firm, or association
with which the authority has entered into any operating lease,
or other agreement. The directors may be removed by the county
for the reasons and in the manner provided under Minnesota
Statutes, section 469.010, and shall receive no compensation
other than reimbursement for expenses incurred in the
performance of their duties. Directors shall have no personal
liability for obligations of the authority or the methods of
enforcement and collection of the obligations.
Sec. 22. [TOWN OF OTSEGO; ECONOMIC DEVELOPMENT.]
Subdivision 1. [ECONOMIC DEVELOPMENT AUTHORITY.] The town
of Otsego may establish an economic development authority. The
town may establish the authority in the manner provided in
Minnesota Statutes, sections 469.091 to 469.101, and may impose
the limits on the authority enumerated in Minnesota Statutes,
section 469.092. An authority established under this
subdivision has all the powers and duties granted to or imposed
upon economic development authorities under Minnesota Statutes,
sections 469.090 to 469.106 and 469.174 to 469.178.
Subd. 2. [POWERS OF A CITY OR MUNICIPALITY.] The town of
Otsego and its governing body have all the powers and duties
granted to or imposed upon (1) a city and the governing body of
a city under Minnesota Statutes, sections 469.090 to 469.107,
including the power to levy a tax subject to referendum under
Minnesota Statutes, section 469.107; and (2) a municipality and
the governing body of a municipality under Minnesota Statutes,
sections 469.174 to 469.178 with respect to a project undertaken
by an economic development authority under subdivision 1.
General obligation bonds may be issued and a tax imposed to pay
the principal and interest on the bonds only if the issuance and
the tax are approved by a vote of the electors of the town at a
regular town meeting. A tax may be levied under Minnesota
Statutes, section 469.107, only if approved by a vote of the
electors of the town at a regular town meeting.
Sec. 23. [CONTINUATION OF PRODUCTION TAX LIABILITY.]
Notwithstanding Minnesota Statutes, section 298.25, or any
other law to the contrary, the provisions of Minnesota Statutes,
section 298.24, will continue to apply to a taconite production
facility that has ceased production in 1986 for production years
1989 and 1990 if ownership of that facility is transferred in
1989 to a new owner that intends to resume taconite production
at that facility no later than December 31, 1991. The new owner
must provide evidence to the commissioner of revenue of its
intent and ability to do so. If the new owner fails to resume
taconite production at the facility by December 31, 1991, the
property shall become subject to ad valorem taxes for the 1991
levy year, taxes payable in 1992, and thereafter, and an
additional tax equal to the amount of ad valorem tax that would
have been payable on the property for taxes payable in 1990 and
1991, less any taxes paid under Minnesota Statutes, section
298.24, during 1990 and 1991, shall also be extended against the
property on the tax list for 1992.
Sec. 24. [SPENDING REDUCTION RECOMMENDATIONS.]
The governor shall make recommendations for consideration
by the legislature in its 1990 session of at least $50,000,000
of budget reductions or savings for fiscal year 1991 and at
least $100,000,000 of budget reductions or savings for the
1992-1993 biennium.
Sec. 25. [NORTH PINE AREA HOSPITAL DISTRICT.]
Notwithstanding Minnesota Statutes, section 447.31,
subdivision 2, the North Pine area hospital district shall
include any city or town located in Pine county that, at any
time after April 1, 1989, has elected or does elect to be a part
of the hospital district.
Sec. 26. [APPROPRIATIONS.]
There is appropriated from the general fund to the
commissioner of revenue the following amounts for the
administration of this act.
Fiscal Year 1990
Total $922,300
Summary by purpose
Truth in Taxation $128,800
Charitable Gambling $107,500
Property Tax Refunds $ 94,000
Systems $250,000
Tax Samples $ 76,000
Commercial-Industrial Refund $266,000
The appropriation for systems is available until June 30,
1991.
Sec. 27. [APPROVED COMPLEMENT.]
The approved complement of the department of revenue is
increased by seven for fiscal year 1990.
Sec. 28. [FEES; DRAFTING SERVICES.]
Notwithstanding any contrary requirements of Minnesota
Statutes, section 3C.035, subdivision 2, the revisor of statutes
shall assess the commissioner of revenue for the actual cost of
bill drafting services rendered to the department after October
31, 1989, but before February 15, 1990, if the services are
required because of (1) a provision of this act requiring the
commissioner to prepare legislation in the legislative session
beginning February 12, 1990, or (2) clarifying, administrative,
or technical changes that are proposed by the commissioner to
implement a provision of this act.
Sec. 29. [EFFECTIVE DATE.]
Sections 1, 2, 4, 5, 14, 15, 16 to 20, 23, 24, and 28 are
effective the day following final enactment. Section 3 is
effective retroactive to January 1, 1986. Sections 6 and 7 are
effective November 1, 1989, and for bonds issued after October
31, 1989. Sections 8 to 13 are effective January 1, 1990.
Section 21 is effective the day after compliance with Minnesota
Statutes, section 645.021, subdivision 3, by the county board of
Kandiyohi county. Section 22 is effective the day following
compliance with Minnesota Statutes, section 645.021, subdivision
3, by the town board of the town of Otsego. Sections 26 and 27
are effective October 1, 1989. Section 25 is effective the day
following final enactment.
ARTICLE 18
RECYCLING REQUIREMENTS AND PROGRAMS
Section 1. [16B.121] [PURCHASE OF RECYCLED, REPAIRABLE,
AND DURABLE MATERIALS.]
The commissioner shall take the recycled content and
recyclability of commodities to be purchased into consideration
in bid specifications. The commissioner shall apply weighting
factors to the recycled content and recyclability criteria in
order to give a preferential treatment to those criteria. State
agencies shall purchase recycled materials when specifications
allow the practical use of the recycled materials and the price
does not exceed the price of nonrecycled materials by more than
ten percent. If possible, state agencies should purchase
materials recycled from waste generated in this state.
Sec. 2. [16B.122] [PURCHASE OF PAPER STOCK.]
Subdivision 1. [DEFINITIONS.] The definitions in this
subdivision apply to this section.
(a) "Office paper" means notepads, loose-leaf fillers,
tablets, and other paper commonly used in offices.
(b) "Practicable" means capable of being used, consistent
with performance, in accordance with applicable specifications,
and availability within a reasonable time.
(c) "Printing paper" means paper designed for printing,
other than newsprint, such as offset and publication paper.
(d) "Public agency" means the state, an office, agency, or
institution of the state, a county, a statutory or home rule
charter city, a town, a school district, another special taxing
district, or any contractor acting pursuant to a contract with a
public agency.
(e) "Uncoated" means not coated with plastic, clay, or
other material used to create a glossy finish.
Subd. 2. [PURCHASE REQUIRED.] A public agency shall
purchase uncoated office paper and printing paper whenever
practicable.
Sec. 3. Minnesota Statutes 1988, section 115A.03,
subdivision 25a, is amended to read:
Subd. 25a. "Recyclable materials" means materials that are
separated from mixed municipal solid waste for the purpose of
recycling, including paper, glass, plastics, metals, automobile
oil, and batteries. Refuse derived fuel or other material that
is destroyed by incineration is not a recyclable material.
Sec. 4. Minnesota Statutes 1989 Supplement, section
115A.12, subdivision 1, is amended to read:
Subdivision 1. [SOLID AND HAZARDOUS WASTE MANAGEMENT.] (a)
The chair of the board director shall establish a solid waste
management advisory council, a hazardous waste management
planning council, and a market development coordinating council,
that are broadly representative of the geographic areas and
interests of the state. The councils shall have not less than
nine nor more than 18 members each.
(b) The solid waste council shall have not less than nine
nor more than 21 members. The membership of the solid waste
council shall consist of one-third citizen representatives,
one-third representatives from local government units, and
one-third representatives from private solid waste management
firms. The solid waste council shall contain at least three
members experienced in the private recycling industry and at
least one member experienced in each of the following areas:
state and municipal finance; solid waste collection, processing,
and disposal; and solid waste reduction and resource recovery.
(c) The hazardous waste council shall have not less than
nine nor more than 18 members. The membership of the hazardous
waste advisory council shall consist of one-third citizen
representatives, one-third representatives from local government
units, and one-third representatives of hazardous waste
generators and private hazardous waste management firms.
(d) The market development coordinating council shall have
not less than nine nor more than 18 members and shall consist of
one representative from the department of trade and economic
development, the department of administration, the pollution
control agency, the Greater Minnesota Corporation, the
metropolitan council, and the legislative commission on waste
management. The other members shall represent local government
units, private recycling markets, and private recycling
collectors. The market development coordinating council expires
June 30, 1994.
(e) The chairs of the advisory councils shall be appointed
by the chair of the board director. The chair of the board
director shall provide administrative and staff services for the
advisory councils. The advisory councils shall have such duties
as are assigned by law or the chair of the board director. The
solid waste advisory council shall make recommendations to
the board office on its solid waste management activities. The
hazardous waste advisory council shall make recommendations to
the board office on its activities under sections 115A.08,
115A.09, 115A.10, 115A.11, 115A.20, 115A.21, and 115A.24.
Members of the advisory councils shall serve without
compensation but shall be reimbursed for their reasonable
expenses as determined by the chair of the board director. The
solid waste management advisory council and the hazardous waste
management planning council expire June 30, 1994.
Sec. 5. Minnesota Statutes 1988, section 115A.15,
subdivision 5, is amended to read:
Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered
year, the commissioner of administration shall submit a report
to the governor and to the legislative commission summarizing
past activities and proposed goals of the program for the
following biennium. The report shall include at least:
(1) a summary list of product and commodity purchases that
contain recycled materials;
(2) the results of any performance tests conducted on
recycled products and agencies' experience with recycled
products used;
(3) a list of all organizations participating in and using
the cooperative purchasing program; and
(4) a list of products and commodities purchased for their
recyclability and of recycled products reviewed for purchase.
(b) By July 1 of each even-numbered year commissioner of
the pollution control agency and the commissioner of public
service shall submit recommendations to the commissioner
regarding the operation of the program.
Sec. 6. Minnesota Statutes 1988, section 115A.15, is
amended by adding a subdivision to read:
Subd. 7. [WASTE REDUCTION PROCUREMENT MODEL.] To reduce
the amount of solid waste generated by the state and to provide
a model for other public and private procurement systems, the
commissioner, in cooperation with the director of the office of
waste management, shall develop waste reduction procurement
programs, including an expanded life cycle costing system for
procurement of durable and repairable items. On implementation
of the model procurement system, the commissioner, in
cooperation with the director, shall develop and distribute
informational materials for the purpose of promoting the
procurement model to other public and private entities under
article 21, section 1, subdivision 4.
Sec. 7. Minnesota Statutes 1988, section 115A.15, is
amended by adding a subdivision to read:
Subd. 8. [RECYCLED MATERIALS PURCHASING.] The commissioner
of administration shall develop and implement a cooperative
purchasing program under section 471.59 to include state
agencies, local governmental units, and, where feasible, other
state governments and the federal government, for the purpose of
purchasing materials made from recycled materials. By July 1,
1991, the commissioner shall develop a program to promote the
cooperative purchasing program to those units of government and
other persons.
Sec. 8. Minnesota Statutes 1988, section 115A.15, is
amended by adding a subdivision to read:
Subd. 9. [RECYCLING GOAL.] By December 31, 1993, the
commissioner shall recycle at least 40 percent by weight of the
solid waste generated by state offices and other operations
located in the metropolitan area. The commissioner must keep
records of the recycling and composting operation and share them
annually with the metropolitan council and counties to assist
the council and the counties in their data collection efforts.
Sec. 9. [115A.151] [STATE AND LOCAL FACILITIES.]
By January 1, 1991, a state agency or local unit of
government or school district in the metropolitan area or by
January 1, 1993, a state agency or local unit of government or
school district outside of the metropolitan area shall:
(1) ensure that facilities under its control, from which
mixed municipal solid waste is collected, have containers for at
least three recyclable materials; and
(2) transfer all recyclable materials collected to a
recycler.
Sec. 10. Minnesota Statutes 1988, section 115A.48,
subdivision 3, is amended to read:
Subd. 3. [PUBLIC PROCUREMENT.] The board office shall
provide technical assistance and advice to political
subdivisions and other public agencies to encourage solid waste
reduction and development of markets for recyclable materials
and compost through procurement policies and
practices. Political subdivisions, educational institutions,
and other public agencies shall aggressively pursue procurement
practices that encourage solid waste reduction, recycling, and
development of markets for recyclable materials and compost and
shall, whenever practical, procure products containing recycled
materials.
Sec. 11. Minnesota Statutes 1988, section 115A.48, is
amended by adding a subdivision to read:
Subd. 5. [RECYCLABLE MATERIAL MARKET DEVELOPMENT.] (a) The
office shall make grants and loans and shall provide technical
assistance to persons for research and development or for the
acquisition and betterment of projects that develop markets or
end uses for recyclable materials. At least 50 percent of all
funds appropriated under article 24 for market development
efforts must be used to support county market development
efforts. Grants to counties for market development must be made
available to those counties that achieve significant land
disposal abatement through use of source separation of
recyclable materials. The office may use any means specified in
section 115A.52 to provide technical assistance.
(b) A project may receive a loan for up to 50 percent of
the capital cost of the project or $2,000,000, whichever is less.
(c) A project may receive a grant for up to 25 percent of
the capital cost of the project or $500,000, whichever is less.
(d) The office shall adopt rules for the program.
Sec. 12. [115A.551] [RECYCLING.]
Subdivision 1. [DEFINITION.] (a) For the purposes of this
section, "recycling" means, in addition to the meaning given in
section 115A.03, subdivision 25b, yard waste composting and
recycling that occurs through mechanical or hand separation of
materials that are then delivered for reuse in their original
form or for use in manufacturing processes that do not cause the
destruction of recyclable materials in a manner that precludes
further use.
(b) For the purposes of this section, "total solid waste
generation" means the total by weight of:
(1) materials separated for recycling;
(2) materials separated for yard waste composting; and
(3) mixed municipal solid waste plus yard waste, used oil,
tires, lead acid batteries, and major appliances.
Subd. 2. [COUNTY RECYCLING GOALS.] By December 31, 1993,
each county outside of the metropolitan area will have as a goal
to recycle a minimum of 25 percent by weight of total solid
waste generation; and by December 31, 1993, each county within
the metropolitan area will have as a goal to recycle a minimum
of 35 percent by weight of total solid waste generation. Each
county will develop and implement or require political
subdivisions within the county to develop and implement
programs, practices, or methods designed to meet its recycling
goal. Nothing in this section or in any other law may be
construed to prohibit a county from establishing a higher
recycling goal.
Subd. 3. [INTERIM GOALS; NONMETROPOLITAN COUNTIES.] The
office shall establish interim recycling goals for the
nonmetropolitan counties to assist them in meeting the goals
established in subdivision 2.
Subd. 4. [INTERIM MONITORING.] The office, for counties
outside of the metropolitan area, and the metropolitan council,
for counties within the metropolitan area, shall monitor the
progress of each county toward meeting the recycling goal in
subdivision 2 and shall report to the legislative commission on
waste management on the progress of the counties by November 1
of each year. If the office or the council finds that a county
is not progressing toward the goal in subdivision 2, it shall
negotiate with the county to develop and implement solid waste
management techniques designed to assist the county in meeting
the goal, such as organized collection, curbside collection of
source-separated materials, and volume-based pricing.
Subd. 5. [FAILURE TO MEET GOAL.] (a) A county failing to
meet the interim goals in subdivision 3 shall, as a minimum:
(1) notify county residents of the failure to achieve the
goal and why the goal was not achieved; and
(2) provide county residents with information on recycling
programs offered by the county.
(b) If, based on the recycling monitoring described in
subdivision 4, the office or the metropolitan council finds that
a county will be unable to meet the recycling goal established
in subdivision 2, the office or council shall, after
consideration of the reasons for the county's inability to meet
the goal, recommend legislation for consideration by the
legislative commission on waste management to establish
mandatory recycling standards and to authorize the office or
council to mandate appropriate solid waste management techniques
designed to meet the standards in those counties that are unable
to meet the goal.
Subd. 6. [COUNTY SOLID WASTE PLANS.] (a) Each county shall
include in its solid waste management plan described in section
115A.46, or its solid waste master plan described in section
473.803, a plan for implementing the recycling goal established
in subdivision 2 along with mechanisms for providing financial
incentives to solid waste generators to reduce the amount of
waste generated and to separate recyclable materials from the
waste stream. The recycling plan must include detailed
recycling implementation information to form the basis for the
strategy required in subdivision 7.
(b) Each county required to submit its plan to the office
under section 115A.46 shall amend its plan to comply with this
subdivision within one year after the effective date of this
section.
Subd. 7. [RECYCLING IMPLEMENTATION STRATEGY.] Within one
year of office approval of the portion of the plan required in
subdivision 6, each nonmetropolitan county shall submit for
office approval a local recycling implementation strategy. The
local recycling implementation strategy must:
(1) be consistent with the approved county solid waste
management plan;
(2) identify the materials that are being and will be
recycled in the county to meet the goals under this section and
the parties responsible and methods for recycling the material;
and
(3) define the need for funds to ensure continuation of
local recycling, methods of raising and allocating such funds,
and permanent sources and levels of local funding for recycling.
Sec. 13. [115A.552] [OPPORTUNITY TO RECYCLE.]
Subdivision 1. [COUNTY REQUIREMENT.] Counties shall ensure
that residents have an opportunity to recycle. At least one
recycling center shall be available in each county. Opportunity
to recycle means availability of recycling and curbside pickup
or collection centers for recyclable materials at sites that are
convenient for persons to use. Counties shall also provide for
the recycling of problem materials and major appliances.
Counties shall assess the operation of existing and proposed
recycling centers and shall give due consideration to those
centers in ensuring the opportunity to recycle.
Subd. 2. [RECYCLING OPPORTUNITIES.] An opportunity to
recycle must include:
(1) a local recycling center in the county and sites for
collecting recyclable materials that are located in areas
convenient for persons to use them;
(2) curbside pickup, centralized drop-off, or a local
recycling center for at least four kinds of recyclable materials
in cities with a population of 5,000 or more persons; and
(3) monthly pickup of at least four recyclable materials in
cities of the first and second class and cities with 5,000 or
more population in the metropolitan area.
Subd. 3. [RECYCLING INFORMATION, EDUCATION, AND
PROMOTION.] (a) Each county shall provide information on how,
when, and where materials may be recycled, including a
promotional program that publishes notices at least once every
three months and encourages source separation of residential,
commercial, industrial, and institutional materials.
(b) The office shall develop materials for counties to use
in providing information on and promotion of recycling.
(c) The office shall provide technical assistance to
counties to help counties implement recycling programs.
Sec. 14. [115A.553] [COLLECTION AND TRANSPORTATION OF
RECYCLABLE MATERIALS.]
Subdivision 1. [COLLECTION CENTERS AND TRANSPORTATION
REQUIRED.] Each county must ensure alone or in conjunction with
other counties that materials separated for recycling are taken
to markets for sale or to recyclable material processing
centers. An action may not be taken by a county under this
section to preclude a person generating or collecting solid
waste from delivering recyclable materials to a recycling
facility of the generator's or collector's choice.
Subd. 2. [LICENSING OF RECYCLABLE MATERIALS
COLLECTION.] Counties may require county or municipal licenses
for collection of recyclable materials.
Subd. 3. [TRANSPORTATION SYSTEMS.] The office and the
commissioner of transportation shall develop an efficient
transportation system for recyclable materials to reach markets
and processing centers that may be used by counties. The system
may include regional collection centers.
Sec. 15. [115A.554] [AUTHORITY OF SANITARY DISTRICTS.]
A sanitary district with the authority to regulate solid
waste has the authority and duty of counties within the
district's boundary for purposes of sections 12, 13, and 14;
article 20, sections 8, 14, 18, 24, and 25; and sections
115A.46, subdivision 4; 115A.919; 115A.96, subdivision 6;
375.18, subdivision 14; and 400.08, subdivision 5.
Sec. 16. [115A.555] [RECYCLING CENTER DESIGNATION.]
The agency shall designate recycling centers for the
purpose of section 18. To be designated as a recycling center,
a recycling facility must be open a minimum of 12 operating
hours each week, 12 months each year, and must accept for
recycling at least four different materials such as paper,
glass, plastic, and metal.
Sec. 17. Minnesota Statutes 1988, section 116K.04, is
amended by adding a subdivision to read:
Subd. 6. [MODEL ZONING CRITERIA.] The commissioner shall,
in consultation with the advisory council on state and local
relations, develop and disseminate model zoning criteria for use
by local units of government in siting recycling facilities.
Sec. 18. [173.086] [RECYCLING CENTER SIGNS.]
Subdivision 1. [AUTHORITY TO ERECT.] A recycling facility
that has complied with the permitting rules of the pollution
control agency and has been designated a recycling center by the
agency under section 16 may erect a recycling center sign upon
payment of a fee to the department of transportation or to the
local road authority required to cover all costs of fabrication
and installation of the signs.
Subd. 2. [SIGN STANDARDS.] The department of
transportation shall design and manufacture the recycling center
sign to specifications not contrary to other federal and state
highway sign standards. The sign must contain the international
three arrow recycling symbol followed by the words "recycling
center."
Subd. 3. [LOCATION.] Each local road authority shall
permit recycling center signs to be located on roads in its
jurisdiction, subject to sign placement and distance
requirements of the local authority in conformance with standard
policies for placement of signs for other traffic generators.
Sec. 19. [REPORT ON RECYCLING IN PUBLIC BUILDINGS.]
The commissioner of administration and the commissioner of
public safety shall review the availability of the opportunity
to recycle in buildings, including those in the capitol area,
and address barriers to recycling systems that may be caused by
building, safety, and fire codes and historical preservation.
The commissioners shall prepare a report on the barriers to
recycling systems and the progress in overcoming the barriers
and submit it to the legislative commission on waste management
by November 1, 1990.
Sec. 20. [EFFECTIVE DATE.]
Section 13 is effective October 1, 1990.
Sections 1 to 12 and 14 to 19 are effective the day
following final enactment.
ARTICLE 19
REVENUE FOR RECYCLING AND SOLID WASTE PROGRAMS
Section 1. [115A.557] [COUNTY WASTE REDUCTION AND
RECYCLING FUNDING.]
Subdivision 1. [DISTRIBUTION; FORMULA.] Any funds
appropriated to the office for the purpose of distribution to
counties under this section must be distributed each fiscal year
by the office based on population, except a county may not
receive less than $55,000 in a fiscal year. For purposes of
this subdivision, "population" has the definition given in
section 477A.011, subdivision 3. A county that participates in
a multicounty district that manages solid waste and that has
responsibility for recycling programs as authorized in article
18, section 13, must pass through to the districts funds
received by the county in excess of the $55,000 annual base
under this section in proportion to the population of the county
served by that district.
Subd. 2. [PURPOSES FOR WHICH MONEY MAY BE SPENT.] A county
receiving money distributed by the office under this section may
use the money only for the development and implementation of
programs to:
(1) reduce the amount of solid waste generated;
(2) recycle the maximum amount of solid waste technically
feasible;
(3) create and support markets for recycled products;
(4) remove problem materials from the solid waste stream
and develop proper disposal options for them;
(5) inform and educate all sectors of the public about
proper solid waste management procedures;
(6) provide technical assistance to public and private
entities to ensure proper solid waste management; and
(7) provide educational, technical, and financial
assistance for litter prevention.
Subd. 3. [ELIGIBILITY TO RECEIVE MONEY.] (a) To be
eligible to receive money distributed by the office under this
section, a county shall within one year of the effective date of
this section:
(1) create a separate account in its general fund to credit
the money; and
(2) set up accounting procedures to ensure that money in
the separate account is spent only for the purposes in
subdivision 2.
(b) In each following year, each county shall also:
(1) have in place an approved solid waste management plan
or master plan including a recycling implementation strategy
under article 18, section 12, subdivision 7, or section 473.803,
subdivision 1e, and a household hazardous waste management plan
under section 115A.96, subdivision 6, by the dates specified in
those provisions;
(2) submit a report by August 1 of each year to the office
detailing how the money was spent and the resulting gains
achieved in solid waste management practices during the previous
fiscal year; and
(3) provide evidence to the office that local revenue equal
to 25 percent of the money sought for distribution under this
section will be spent for the purposes in subdivision 2.
(c) The office shall withhold all or part of the funds to
be distributed to a county under this section if the county
fails to comply with this subdivision and subdivision 2.
Subd. 4. [REPORT.] By November 1 of each year, the office
shall report on how the money was spent and the resulting
statewide improvements in solid waste management to the house of
representatives and senate appropriations and finance committees
and the legislative commission on waste management.
Sec. 2. Minnesota Statutes 1988, section 275.50,
subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other law to the contrary for
taxes levied in 1988 1989 payable in 1989 1990 and subsequent
years, "special levies" means those portions of ad valorem taxes
levied by governmental subdivisions to:
(a) pay the costs not reimbursed by the state or federal
government, of payments made to or on behalf of recipients of
aid under any public assistance program authorized by law, and
the costs of purchase or delivery of social services. Except
for the costs of general assistance as defined in section
256D.02, subdivision 4, general assistance medical care under
section 256D.03 and the costs of hospital care pursuant to
section 261.21, the aggregate amounts levied pursuant to this
clause are subject to a maximum increase of 18 percent over the
amount levied for these purposes in the previous year.
Effective with taxes levied in 1989, the portion of this special
levy for income maintenance programs identified in section
273.1398, subdivision 1, paragraph (i), is eliminated;
(b) pay the costs of principal and interest on bonded
indebtedness except on bonded indebtedness issued under section
471.981, subdivisions 4 to 4c or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due
in the year preceding the year for which the levy limit is
calculated on municipal liquor store bonds;
(c) pay the costs of principal and interest on certificates
of indebtedness, except tax anticipation or aid anticipation
certificates of indebtedness, issued for any corporate purpose
except current expenses or funding an insufficiency in receipts
from taxes or other sources or funding extraordinary
expenditures resulting from a public emergency; and to pay the
cost for certificates of indebtedness issued pursuant to
sections 298.28 and 298.282;
(d) fund the payments made to the Minnesota state armory
building commission pursuant to section 193.145, subdivision 2,
to retire the principal and interest on armory construction
bonds;
(e) provide for the bonded indebtedness portion of payments
made to another political subdivision of the state of Minnesota;
(f) pay the amounts required, in accordance with section
275.075, to correct for a county auditor's error of omission but
only to the extent that when added to the preceding year's levy
it is not in excess of an applicable statutory, special law or
charter limitation, or the limitation imposed on the
governmental subdivision by sections 275.50 to 275.56 in the
preceding levy year;
(g) pay amounts required to correct for an error of
omission in the levy certified to the appropriate county auditor
or auditors by the governing body of a city or town with
statutory city powers in a levy year, but only to the extent
that when added to the preceding year's levy it is not in excess
of an applicable statutory, special law or charter limitation,
or the limitation imposed on the governmental subdivision by
sections 275.50 to 275.56 in the preceding levy year;
(h) pay amounts required by law to be paid to pay the
interest on and to reduce the unfunded accrued liability of
public pension funds in accordance with the actuarial standards
and guidelines specified in sections 356.215 and 356.216 reduced
by 106 percent of the amount levied for that purpose in 1976,
payable in 1977. For the purpose of this special levy, the
estimated receipts expected from the state of Minnesota pursuant
to sections 69.011 to 69.031 or any other state aid expressly
intended for the support of public pension funds shall be
considered as a deduction in determining the required levy for
the normal costs of the public pension funds. No amount of
these aids shall be considered as a deduction in determining the
governmental subdivision's required levy for the reduction of
the unfunded accrued liability of public pension funds;
(i) to compensate the state for the cost of a reassessment
ordered by the commissioner of revenue pursuant to section
270.16; and
(j) pay the debt service on tax increment financing revenue
bonds to the extent that revenue to pay the bonds or to maintain
reserves for the bonds is insufficient as a result of the
provisions of Laws 1988, chapter 719, article 5; and
(k) pay an amount of up to 25 percent of the money sought
for distribution and approved under section 1, subdivision 3,
paragraph (b), clause (3).
Sec. 3. Minnesota Statutes 1988, section 297A.01,
subdivision 3, is amended to read:
Subd. 3. A "sale" and a "purchase" includes, but is not
limited to, each of the following transactions:
(a) Any transfer of title or possession, or both, of
tangible personal property, whether absolutely or conditionally,
and the leasing of or the granting of a license to use or
consume tangible personal property other than manufactured homes
used for residential purposes for a continuous period of 30 days
or more, for a consideration in money or by exchange or barter;
(b) The production, fabrication, printing or processing of
tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the
production, fabrication, printing, or processing;
(c) The furnishing, preparing, or serving for a
consideration of food, meals or drinks, not including meals or
drinks served to patients, inmates, or persons residing at
hospitals, sanitariums, nursing homes, senior citizens homes,
and correctional, detention, and detoxification facilities,
meals or drinks purchased for and served exclusively to
individuals who are 60 years of age or over and their spouses or
to the handicapped and their spouses by governmental agencies,
nonprofit organizations, agencies, or churches or pursuant to
any program funded in whole or part through 42 USCA sections
3001 through 3045, wherever delivered, prepared or served, meals
and lunches served at public and private schools, universities
or colleges. "Sales" also includes meals furnished by employers
to employees at less than fair market value, except meals
furnished at no charge to employees of hospitals, nursing homes,
boarding care homes, sanitariums, group homes, and correctional,
detention, and detoxification facilities, who are required to
eat with the patients, residents, or inmates residing in them.
Notwithstanding section 297A.25, subdivision 2, taxable food or
meals include, but are not limited to, the following:
(i) heated food or drinks;
(ii) sandwiches prepared by the retailer;
(iii) single sales of prepackaged ice cream or ice milk
novelties prepared by the retailer;
(iv) hand-prepared or dispensed ice cream or ice milk
products including cones, sundaes, and snow cones;
(v) soft drinks and other beverages prepared or served by
the retailer;
(vi) gum;
(vii) ice;
(viii) all food sold in vending machines;
(ix) party trays prepared by the retailers; and
(x) all meals and single servings of packaged snack food,
single cans or bottles of pop, sold in restaurants and bars;
(d) The granting of the privilege of admission to places of
amusement, recreational areas, or athletic events and the
privilege of having access to and the use of amusement devices,
tanning facilities, reducing salons, steam baths, turkish baths,
massage parlors, health clubs, and spas or athletic facilities;
(e) The furnishing for a consideration of lodging and
related services by a hotel, rooming house, tourist court, motel
or trailer camp and of the granting of any similar license to
use real property other than the renting or leasing thereof for
a continuous period of 30 days or more;
(f) The furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state, or
local exchange telephone service, intrastate toll service, and
interstate toll service, if that service originates from and is
charged to a telephone located in this state; the tax imposed on
amounts paid for telephone services is the liability of and
shall be paid by the person paying for the services. Sales by
municipal corporations in a proprietary capacity are included in
the provisions of this clause. The furnishing of water and
sewer services for residential use shall not be considered a
sale;
(g) The furnishing for a consideration of cable television
services, including charges for basic monthly service, charges
for monthly premium service, and charges for any other similar
television services;
(h) Notwithstanding subdivision 4, and section 297A.25,
subdivision 9, the sales of horses including claiming sales and
fees paid for breeding a stallion to a mare. This clause
applies to sales and fees with respect to a horse to be used for
racing whose birth has been recorded by the Jockey Club or the
United States Trotting Association or the American Quarter Horse
Association;
(i) The furnishing for a consideration of parking services,
whether on a contractual, hourly, or other periodic basis,
except for parking at a meter;
(j) The furnishing for a consideration of services listed
in this paragraph:
(i) laundry and dry cleaning services including cleaning,
pressing, repairing, altering, and storing clothes, linen
services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry
cleaning services do not include services provided by coin
operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services,
including services provided by coin-operated facilities operated
by the customer, and rustproofing, undercoating, and towing of
motor vehicles;
(iii) building and residential cleaning, maintenance, and
disinfecting and exterminating services;
(iv) services provided by detective agencies, security
services, burglar, fire alarm, and armored car services not
including services performed within the jurisdiction they serve
by off-duty licensed peace officers as defined in section
626.84, subdivision 1;
(v) pet grooming services; and
(vi) lawn care, fertilizing, mowing, spraying and sprigging
services; garden planting and maintenance; arborist services;
tree, bush, and shrub planting, pruning, bracing, spraying, and
surgery; and tree trimming for public utility lines.
The services listed in this paragraph are taxable under section
297A.02 if the service is performed wholly within Minnesota or
if the service is performed partly within and partly without
Minnesota and the greater proportion of the service is performed
in Minnesota, based on the cost of performance. In applying the
provisions of this chapter, the terms "tangible personal
property" and "sales at retail" include taxable services and the
provision of taxable services, unless specifically provided
otherwise. Services performed by an employee for an employer
are not taxable under this paragraph. Services performed by a
partnership or association for another partnership or
association are not taxable under this paragraph if one of the
entities owns or controls more than 80 percent of the voting
power of the equity interest in the other entity. Services
performed between members of an affiliated group of corporations
are not taxable. For purposes of this section, "affiliated
group of corporations" includes those entities that would be
classified as a member of an affiliated group under United
States Code, title 26, section 1504, and who are eligible to
file a consolidated tax return for federal income tax
purposes; and
(vii) solid waste collection and disposal services as
described in section 7;
(k) A "sale" and a "purchase" includes the transfer of
computer software, meaning information and directions that
dictate the function performed by data processing equipment. A
"sale" and a "purchase" does not include the design,
development, writing, translation, fabrication, lease, or
transfer for a consideration of title or possession of a custom
computer program; and
(l) The granting of membership in a club, association, or
other organization if:
(1) the club, association, or other organization makes
available for the use of its members sports and athletic
facilities (without regard to whether a separate charge is
assessed for use of the facilities); and
(2) use of the sports and athletic facilities is not made
available to the general public on the same basis as it is made
available to members.
Granting of membership includes both one-time initiation fees
and periodic membership dues. Sports and athletic facilities
include golf courses, tennis, racquetball, handball and squash
courts, basketball and volleyball facilities, running tracks,
exercise equipment, swimming pools, and other similar athletic
or sports facilities. The provisions of this paragraph do not
apply to camps or other recreation facilities owned and operated
by an exempt organization under section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31,
1986, for educational and social activities for young people
primarily age 18 and under.
Sec. 4. Minnesota Statutes 1989 Supplement, section
297A.25, subdivision 11, is amended to read:
Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from
all sales, including sales in which title is retained by a
seller or a vendor or is assigned to a third party under an
installment sale or lease purchase agreement under section
465.71, of tangible personal property to, and all storage, use
or consumption of such property by, the United States and its
agencies and instrumentalities, the University of Minnesota,
state universities, community colleges, technical institutes,
state academies, the Minnesota center for arts education, and
political subdivisions of the state are exempt. Sales exempted
by this subdivision include sales under section 297A.01,
subdivision 3, clause (f), but do not include sales under
section 297A.01, subdivision 3, paragraph (j), clause (vii).
This exemption shall not apply to building, construction or
reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type
of contract with a guaranteed maximum price covering both labor
and materials for use in the construction, alteration, or repair
of a building or facility. This exemption does not apply to
construction materials purchased by tax exempt entities or their
contractors to be used in constructing buildings or facilities
which will not be used principally by the tax exempt entities.
This exemption does not apply to the leasing of a motor vehicle
as defined in section 297B.01, subdivision 5, except for leases
entered into by the United States or its agencies or
instrumentalities.
Sec. 5. Minnesota Statutes 1989 Supplement, section
297A.25, subdivision 16, is amended to read:
Subd. 16. [SALES TO NONPROFIT GROUPS.] The gross receipts
from the sale of tangible personal property to, and the storage,
use or other consumption of such property by, any corporation,
society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational
purposes if the property purchased is to be used in the
performance of charitable, religious, or educational functions,
or 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, are exempt.
Sales exempted by this subdivision include sales pursuant to
section 297A.01, subdivision 3, clauses (d) and (f), but do not
include sales under section 297A.01, subdivision 3, paragraph
(j), clause (vii). This exemption shall not apply to building,
construction, or reconstruction materials purchased by a
contractor or a subcontractor as a part of a lump-sum contract
or similar type of contract with a guaranteed maximum price
covering both labor and materials for use in the construction,
alteration, or repair of a building or facility. This exemption
does not apply to construction materials purchased by tax exempt
entities or their contractors to be used in constructing
buildings or facilities which will not be used principally by
the tax exempt entities. This exemption does not apply to the
leasing of a motor vehicle as defined in section 297B.01,
subdivision 5.
Sec. 6. Minnesota Statutes 1989 Supplement, section
297A.44, subdivision 1, is amended to read:
Subdivision 1. (a) Except as provided in paragraphs (b)
and, (c), and (d), all revenues, including interest and
penalties, derived from the excise and use taxes imposed by
sections 297A.01 to 297A.44 shall be deposited by the
commissioner in the state treasury and credited to the general
fund.
(b) All excise and use taxes derived from sales and use of
property and services purchased for the construction and
operation of an agricultural resource project, from and after
the date on which a conditional commitment for a loan guaranty
for the project is made pursuant to section 41A.04, subdivision
3, shall be deposited in the Minnesota agricultural and economic
account in the special revenue fund. The commissioner of
finance shall certify to the commissioner the date on which the
project received the conditional commitment. The amount
deposited in the loan guaranty account shall be reduced by any
refunds and by the costs incurred by the department of revenue
to administer and enforce the assessment and collection of the
taxes.
(c) All revenues, including interest and penalties, derived
from the excise and use taxes imposed on sales and purchases
included in section 297A.01, subdivision 3, paragraphs (d) and
(l), clauses (1) and (2), must be deposited by the commissioner
in the state treasury, and credited as follows:
(1) first to the general obligation special tax bond debt
service account in each fiscal year the amount required by
section 16A.661, subdivision 3, paragraph (b); and
(2) after the requirements of clause (1) have been met, the
balance must be credited to the general fund.
(d) The revenues, including interest and penalties, derived
from the taxes imposed on solid waste collection services as
described in section 7 shall be deposited by the commissioner in
the state treasury and credited to the general fund to be used
for funding solid waste reduction and recycling programs.
Sec. 7. [297A.45] [SOLID WASTE COLLECTION AND DISPOSAL
SERVICES.]
Subdivision 1. [DEFINITIONS.] The definitions in sections
115A.03 and 297A.01 apply to this section.
Subd. 2. [APPLICATION.] The tax imposed by section 297A.02
applies to all public and private mixed municipal solid waste
collection and disposal services. Notwithstanding section
297A.25, subdivision 11, a political subdivision that purchases
collection or disposal services on behalf of its citizens shall
pay the tax. If a political subdivision provides collection or
disposal services to its residents at a cost in excess of the
total direct charge to the residents for the service, the
political subdivision shall pay the tax based on its cost of
providing the service in excess of the direct charges. A person
who transports mixed municipal solid waste generated by that
person or by another person without compensation shall pay the
tax at the disposal or resource recovery facility based on the
disposal charge or tipping fee.
Subd. 3. [EXEMPTIONS.] (a) The cost of a service or the
portion of a service to collect and manage recyclable materials
separated from mixed municipal solid waste by the waste
generator is exempt from the tax imposed in section 297A.02.
(b) The amount of a surcharge or fee imposed under section
115A.919, 115A.921, 115A.923, or 473.843 is exempt from the tax
imposed in section 297A.02.
(c) Waste from a recycling facility that separates or
processes recyclable materials and that reduces the volume of
the waste by at least 85 percent is exempt from the tax imposed
in section 297A.02. To qualify for the exemption under this
paragraph, the waste exempted must be collected and disposed of
separately from other solid waste.
Subd. 4. [CITY SALES TAX MAY NOT BE IMPOSED.]
Notwithstanding any other law or charter provision to the
contrary, a home rule charter or statutory city that imposes a
general sales tax may not impose the sales tax on solid waste
disposal and collection services that are subject to the tax
under this section.
Sec. 8. [REVENUE REPORT.]
By November 1, 1990, the commissioner of revenue shall
estimate the amount of revenue to be collected from the tax
imposed on solid waste collection and disposal services
described in section 7 for fiscal years 1990 and 1991 and shall
report that amount to the office of waste management, to the
house of representatives and senate appropriations and finance
committees, and to the legislative commission on waste
management.
Sec. 9. [EFFECTIVE DATE.]
Sections 3 to 7 are effective for sales made after December
31, 1989. Sections 1, 2, and 8 are effective the day following
final enactment.
ARTICLE 20
SOLID WASTE COLLECTION AND DISPOSAL
Section 1. Minnesota Statutes 1988, section 115A.03, is
amended by adding a subdivision to read:
Subd. 17a. [MAJOR APPLIANCES.] "Major appliances" means
clothes washers and dryers, dishwashers, hot water heaters,
garbage disposals, trash compactors, conventional ovens, ranges
and stoves, air conditioners, refrigerators, and freezers.
Sec. 2. Minnesota Statutes 1988, section 115A.03, is
amended by adding a subdivision to read:
Subd. 24a. [PROBLEM MATERIAL.] "Problem material" means a
material that, when it is processed or disposed of with mixed
municipal solid waste, contributes to one of the following
results:
(1) the release of a hazardous substance, or pollutant or
contaminant, as defined in section 115B.02, subdivisions 8, 13,
and 15;
(2) pollution of water as defined in section 115.01,
subdivision 5;
(3) air pollution as defined in section 116.06, subdivision
3; or
(4) a significant threat to the safe or efficient operation
of a solid waste processing facility.
Sec. 3. Minnesota Statutes 1989 Supplement, section
115A.46, subdivision 2, is amended to read:
Subd. 2. [CONTENTS.] (a) The plans shall describe existing
collection, processing, and disposal systems, including
schedules of rates and charges, financing methods, environmental
acceptability, and opportunities for improvements in the systems.
(b) The plans shall include an estimate of the land
disposal capacity in acre-feet which will be needed through the
year 2000, on the basis of current and projected waste
generation practices. In assessing the need for additional
capacity for resource recovery or land disposal, the plans shall
take into account the characteristics of waste stream components
and shall give priority to waste reduction, separation, and
recycling.
(c) The plans shall require the most feasible and prudent
reduction of the need for and practice of land disposal of mixed
municipal solid waste.
(d) The plans shall address at least waste reduction,
separation, recycling, and other resource recovery options, and
shall include specific and quantifiable objectives, immediately
and over specified time periods, for reducing the land disposal
of mixed municipal solid waste and for the implementation of
feasible and prudent reduction, separation, recycling, and other
resource recovery options. These objectives shall be consistent
with statewide objectives as identified in statute. The plans
shall describe methods for identifying the portions of the waste
stream such as leaves, grass, clippings, tree and plant residue,
and paper for application and mixing into the soil and use in
agricultural practices. The plans shall describe specific
functions to be performed and activities to be undertaken to
achieve the abatement, reduction, separation, recycling, and
other resource recovery objectives and shall describe the
estimated cost, proposed manner of financing, and timing of the
functions and activities. The plans shall describe proposed
mechanisms for complying with the recycling requirements of
article 18, section 12, and the household hazardous waste
management requirements of section 115A.96, subdivision 6.
(e) The plans shall include a comparison of the costs of
the activities to be undertaken, including capital and operating
costs, and the effects of the activities on the cost to
generators and on persons currently providing solid waste
collection, processing, and disposal services. The plans shall
include alternatives which could be used to achieve the
abatement objectives if the proposed functions and activities
are not established.
(f) The plans shall designate how public education shall be
accomplished. The plans shall, to the extent practicable and
consistent with the achievement of other public policies and
purposes, encourage ownership and operation of solid waste
facilities by private industry. For solid waste facilities
owned or operated by public agencies or supported primarily by
public funds or obligations issued by a public agency, the plans
shall include criteria and standards to protect comparable
private and public facilities already existing in the area from
displacement unless the displacement is required in order to
achieve the waste management objectives identified in the plan.
(g) The plans shall establish a siting procedure and
development program to assure the orderly location, development,
and financing of new or expanded solid waste facilities and
services sufficient for a prospective ten-year period, including
estimated costs and implementation schedules, proposed
procedures for operation and maintenance, estimated annual costs
and gross revenues, and proposals for the use of facilities
after they are no longer needed or usable.
(h) The plans shall describe existing and proposed county
and municipal ordinances and license and permit requirements
relating to solid waste management and shall describe existing
and proposed regulation and enforcement procedures.
Sec. 4. Minnesota Statutes 1988, section 115A.46, is
amended by adding a subdivision to read:
Subd. 4. [DELEGATION OF SOLID WASTE RESPONSIBILITIES.] A
county or a solid waste management district established under
sections 115A.62 to 115A.72 may not delegate to another
governmental unit or other person any portion of its
responsibility for solid waste management unless it establishes
a funding mechanism to assure the ability of the entity to which
it delegates responsibility to adequately carry out the
responsibility delegated.
Sec. 5. [115A.55] [SOLID WASTE REDUCTION.]
Subdivision 1. [OFFICE COORDINATION.] The office shall
develop and coordinate solid waste reduction programs to include
at least public education, promotion of waste reduction, and
technical and financial assistance to solid waste generators.
Subd. 2. [TECHNICAL ASSISTANCE.] The office shall provide
technical assistance to solid waste generators to enable the
waste generators to implement programs or methods to reduce the
amount of solid waste generated. The office may use any means
specified in section 115A.52 to provide technical assistance.
Subd. 3. [FINANCIAL ASSISTANCE.] (a) The office shall make
loans and grants to any person for the purpose of developing and
implementing projects or practices to prevent or reduce the
generation of solid waste including those that involve reuse of
items in their original form or in manufacturing processes that
do not cause the destruction of recyclable materials in a manner
that precludes further use, or involve procuring, using, or
producing products with long useful lives. Grants may be used
to fund studies needed to determine the technical and financial
feasibility of a waste reduction project or practice or for the
cost of implementation of a waste reduction project or practice
that the office has determined is technically and financially
feasible.
(b) In making grants or loans, the office shall give
priority to waste reduction projects or practices that have
broad application in the state and that have the potential for
significant reduction of the amount of waste generated.
(c) All information developed as a result of a grant or
loan shall be made available to other solid waste generators
through the public information program established in
subdivision 2.
(d) The office shall adopt rules for the administration of
this program. Office rules must prescribe the level or levels
of matching funds required for grants or loans under this
subdivision.
Sec. 6. Minnesota Statutes 1988, section 115A.915, is
amended to read:
115A.915 [LEAD ACID BATTERIES; LAND DISPOSAL PROHIBITED.]
A person may not place a lead acid battery in mixed
municipal solid waste or dispose of a lead acid battery after
January 1, 1988. A person who violates this section is guilty
of a misdemeanor. This section may be enforced by the agency
pursuant to section 115.071.
Sec. 7. [115A.9152] [TRANSPORTATION OF USED LEAD ACID
BATTERIES.]
(a) A person who transports used lead acid batteries from a
retailer must deliver the batteries to a recycling facility.
(b) A person who violates paragraph (a) is guilty of a
misdemeanor. The failure to deliver each used lead acid battery
to a recycler is a separate violation.
Sec. 8. [115A.93] [LICENSING OF SOLID WASTE COLLECTION.]
Subdivision 1. [LICENSE REQUIRED.] A person may not
collect mixed municipal solid waste for hire without a license
from the jurisdiction where the mixed municipal solid waste is
collected.
Subd. 2. [LICENSING.] (a) Each city and town may issue
licenses for persons to collect mixed municipal solid waste for
hire within their jurisdictions.
(b) County boards shall by resolution adopt the licensing
authority of a city or town that does not issue licenses. A
county may delegate its licensing authority to a consortium of
counties or to municipalities to license collection of mixed
municipal solid waste within the county.
Subd. 3. [LICENSE REQUIREMENTS.] (a) A licensing authority
shall require to the extent possible that charges for collection
of mixed municipal solid waste vary with the volume or weight of
the waste collected.
(b) A licensing authority may impose requirements that are
consistent with the county's solid waste policies as a condition
of receiving and maintaining a license.
Sec. 9. [115A.945] [VISIBLE SOLID WASTE MANAGEMENT COSTS.]
Any political subdivision that provides or pays for the
costs of collection or disposal of solid waste shall, through a
billing or other system, make the prorated share of those costs
for each solid waste generator visible and obvious to the
generator.
Sec. 10. [115A.952] [RETAIL SALE OF PROBLEM MATERIALS;
UNIFORM LABELING AND CONSUMER INFORMATION.]
Subdivision 1. [DUTIES OF AGENCY; RULES.] The agency may
adopt rules to identify products that are used primarily for
personal, family, or household purposes and that constitute a
problem material or contain a problem material as defined in
section 115A.03, subdivision 24a. The rules may also prescribe
a uniform label to be affixed by retailers of identified
products as provided in subdivision 4. Packaging that is
recyclable or made from recycled material shall not constitute a
problem material.
Subd. 2. [DUTIES OF COMMISSIONER OF AGRICULTURE.] The
commissioner of agriculture may adopt rules to provide consumer
information and retail handling practices for pesticides, as
defined in section 18B.01, subdivision 18; fertilizers, plant
amendments, and soil amendments, as defined in section 18C.005,
subdivisions 11, 25, and 33; and wood preservatives.
Subd. 3. [PREPARATION AND SUPPLY OF MATERIALS.] The agency
and the commissioner of agriculture shall prepare and the agency
shall supply to retailers, without charge to the retailers, the
labels and informational materials required to comply with
subdivision 4. Informational materials must include specific
instructions on environmentally sound ways to use identified
products and to handle them when the products or their
containers are discarded.
Subd. 4. [DUTIES OF RETAILERS.] A person who sells or
offers for sale at retail any product that is identified
pursuant to rules of the agency adopted under subdivision 1 or
under rules of the commissioner of agriculture under subdivision
2 shall:
(1) affix a uniform label as prescribed by the rules in a
prominent location upon or near the display area of the
product. If the adjacent display area is a shelf, the label
shall be affixed to the price information for the product on the
shelf;
(2) maintain and prominently display informational
materials supplied by the agency at the location where
identified products covered by the materials are sold or offered
for sale; and
(3) comply with the handling practices required under
subdivision 2.
Sec. 11. [115A.953] [IDENTIFICATION OF ENVIRONMENTALLY
SOUND MATERIALS.]
The office shall prepare and submit a report to the
legislature and the legislative commission on waste management
by June 30, 1991, on a mechanism to indicate that products are
environmentally sound.
Sec. 12. [115A.956] [SOLID WASTE DISPOSAL PROBLEM
MATERIALS.]
Subdivision 1. [PROBLEM MATERIAL PROCESSING AND DISPOSAL
PLAN.] The office shall develop a plan that designates problem
materials and available capacity for processing and disposal of
problem materials including household hazardous waste that
should not be in mixed municipal solid waste.
Subd. 2. [PROBLEM MATERIAL SEPARATION AND COLLECTION
PLAN.] After the office certifies that sufficient processing and
disposal capacity is available, the office shall develop a plan
for separating problem materials from mixed municipal solid
waste, collecting the problem materials, and transporting the
problem materials to a processing or disposal facility and may
by rule prohibit the disposal of the designated problem
materials in mixed municipal solid waste.
Sec. 13. [115A.9561] [MAJOR APPLIANCES.]
A person may not place major appliances in mixed municipal
solid waste or dispose of major appliances in a solid waste
processing or disposal facility after July 1, 1990. The agency
may enforce this section pursuant to section 115.071.
Sec. 14. [115A.961] [HOUSEHOLD BATTERIES; COLLECTION,
PROCESSING, AND DISPOSAL.]
Subdivision 1. [DEFINITION.] For the purposes of this
section, "household batteries" means disposable or rechargeable
dry cells commonly used as power sources for household or
consumer products including, but not limited to, nickel-cadmium,
alkaline, mercuric oxide, silver oxide, zinc oxide, lithium, and
carbon-zinc batteries, but excluding lead acid batteries.
Subd. 2. [PROGRAM.] (a) The office, in consultation with
other state agencies, political subdivisions, and
representatives of the household battery industry, may develop
household battery programs. The office must coordinate its
programs with the legislative commission on Minnesota resources
study on batteries.
(b) The office shall investigate options and develop
guidelines for collection, processing, and disposal of household
batteries. The options the office may investigate include:
(1) establishing a grant program for counties to plan and
implement household battery collection, processing, and disposal
projects;
(2) establishing collection and transportation systems;
(3) developing and disseminating educational materials
regarding environmentally sound battery management; and
(4) developing markets for materials recovered from the
batteries.
(c) The office may also distribute funds to political
subdivisions to develop battery management plans and implement
those plans.
Subd. 3. [PARTICIPATION.] A political subdivision, on its
own or in cooperation with others, may implement a program to
collect, process, or dispose of household batteries. A
political subdivision may provide financial incentives to any
person, including public or private civic groups, to collect the
batteries.
Subd. 4. [REPORT.] By November 1, 1991, the office shall
report to the legislative commission on waste management on its
activities under this section with recommendations for
legislation necessary to address management of household
batteries.
Sec. 15. Minnesota Statutes 1988, section 115A.96,
subdivision 2, is amended to read:
Subd. 2. [MANAGEMENT PROGRAM.] (a) The agency shall
establish a statewide program to manage household hazardous
wastes. The program must include:
(1) the establishment and operation of collection sites;
and
(2) the provision of information, education, and technical
assistance regarding proper management of household hazardous
wastes.
(b) The agency shall report on its progress on establishing
permanent collection sites to the legislative commission on
waste management by November 1, 1991.
Sec. 16. Minnesota Statutes 1988, section 115A.96, is
amended by adding a subdivision to read:
Subd. 6. [HOUSEHOLD HAZARDOUS WASTE MANAGEMENT PLANS.] (a)
Each county shall include in its solid waste management plan
required in section 115A.46, or its solid waste master plan
required in section 473.803, a household hazardous waste
management plan. The plan must at least:
(1) include a broad based public education component;
(2) include a strategy for reduction of household hazardous
waste; and
(3) address separation of household hazardous waste from
mixed municipal solid waste and the collection, storage, and
disposal of that waste.
(b) Each county required to submit its plan to the office
under section 115A.46 shall amend its plan to comply with this
subdivision within one year after the effective date of this
section.
(c) Each county in the state shall implement its household
hazardous waste management plan by June 30, 1992.
Sec. 17. [115A.99] [LITTER PENALTIES AND DAMAGES.]
Subdivision 1. [CIVIL PENALTY.] (a) A person who
unlawfully places any portion of solid waste in or on public or
private lands, shorelands, roadways, or waters is subject to a
civil penalty of not less than twice nor more than five times
the amount of cost incurred by a state agency or political
subdivision to remove, process, and dispose of the waste.
(b) A state agency or political subdivision that incurs
cost as described in this section may bring an action to recover
the civil penalty, related legal, administrative, and court
costs, and damages for injury to or pollution of the lands,
shorelands, roadways, or waters where the waste was placed if
owned or managed by the entity bringing the action.
Subd. 2. [DEPOSIT OF PENALTIES.] Civil penalties collected
under this section must be deposited in the general fund of the
jurisdiction enforcing the penalties.
Subd. 3. [PRIVATE ACTION FOR DAMAGES.] A private person
may join an action by the state or a political subdivision to
recover a civil penalty to allow the person to recover damages
for waste unlawfully placed on the person's property.
Sec. 18. [115A.991] [LITTER GRANTS.]
The office may make grants to each county that has included
in its solid waste plan required in section 115A.46, or its
solid waste master plan required in section 473.803, programs to
prevent, control, or abate litter. The office shall establish
eligibility criteria for grants including the required level of
matching funds from applicants.
Sec. 19. Minnesota Statutes 1988, section 116.07, is
amended by adding a subdivision to read:
Subd. 4k. [HOUSEHOLD HAZARDOUS WASTE MANAGEMENT.] (a) The
agency shall adopt rules to require the owner or operator of a
solid waste disposal facility or resource recovery facility to
submit a management plan for the separation of household
hazardous waste from solid waste prior to disposal or processing
and for the proper disposal of the waste. The plan must include:
(1) participation in public education activities on
household hazardous waste management in the facility's service
area;
(2) a strategy for reduction of household hazardous waste
entering the facility; and
(3) a plan for the storage and disposal of separated
household hazardous waste.
(b) After June 30, 1992, the agency may not grant or renew
a permit for a facility that has not submitted a household
hazardous waste management plan.
Sec. 20. [325E.035] [UNIFORM LABELING AND PACKAGING
REQUIRED.]
It is the policy of this state to manage packaging and
labeling in a uniform manner throughout the state. Political
subdivisions may not adopt, and are preempted from adopting or
enforcing, labeling or packaging requirements that are different
from state law.
Sec. 21. Minnesota Statutes 1988, section 325E.115,
subdivision 1, is amended to read:
Subdivision 1. [SURCHARGE; COLLECTION; NOTICE.] (a) A
person selling lead acid batteries at retail or offering lead
acid batteries for retail sale in this state shall:
(1) accept, at the point of transfer, lead acid batteries
from customers; and
(2) charge a fee of $5 per battery sold unless the customer
returns a used battery to the retailer; and
(3) post written notice, which must be at least 8-1/2
inches by 11 inches in size and must contain the universal
recycling symbol and the following language:
(i) "It is illegal to put a motor vehicle battery in the
garbage.";
(ii) "Recycle your used batteries."; and
(iii) "State law requires us to accept motor vehicle
batteries for recycling."
(b) Any person selling lead acid batteries at wholesale or
offering lead acid batteries for sale at wholesale must accept,
at the point of transfer, lead acid batteries from customers.
Sec. 22. [325E.1151] [LEAD ACID BATTERY PURCHASE AND
RETURN.]
Subdivision 1. [PURCHASERS MUST RETURN BATTERY OR PAY
$5.] (a) A person who purchases a lead acid battery at retail
must:
(1) return a lead acid battery to the retailer; or
(2) pay the retailer a $5 surcharge.
(b) A person who has paid a $5 surcharge under paragraph (a)
must receive a $5 refund from the retailer if the person returns
a lead acid battery with a receipt for the purchase of a new
battery from that retailer within 30 days after purchasing a new
lead acid battery.
(c) A retailer may keep the unrefunded surcharges for lead
acid batteries not returned within 30 days.
Subd. 2. [RETAILERS MUST ACCEPT BATTERIES.] (a) A person
who sells lead acid batteries at retail must accept lead acid
batteries from consumers and may not charge to receive the lead
acid batteries. A consumer may not deliver more than five lead
acid batteries to a retailer at one time.
(b) A retailer of lead acid batteries must recycle the lead
acid batteries received from consumers.
(c) A retailer who violates paragraph (b) is guilty of a
misdemeanor. Each lead acid battery that is not recycled is a
separate violation.
Subd. 3. [RETAILERS MUST POST NOTICES.] (a) A person who
sells lead acid batteries at retail must post the notice in
paragraph (b) in a manner clearly visible to a consumer making
purchasing decisions.
(b) The notice must be at least 8-1/2 inches by 11 inches
and contain the universal recycling symbol and state:
"NOTICE: USED BATTERIES
This retailer is required to accept your used lead acid
batteries, EVEN IF YOU DO NOT PURCHASE A BATTERY. When you
purchase a new battery, you will be charged an additional $5
unless you return a used battery within 30 days.
Improper disposal of a lead acid battery is a crime."
Subd. 4. [NOTICES REQUIRED IN NEWSPAPER
ADVERTISEMENTS.] (a) An advertisement for sale of new lead acid
batteries at retail in newspapers published in this state must
contain the notice in paragraph (b).
(b) The notice must state:
"$5 additional charge unless a used lead acid battery is
returned. Improper disposal of a lead acid battery is a
crime."
Sec. 23. Minnesota Statutes 1988, section 368.01,
subdivision 14, is amended to read:
Subd. 14. [HEALTH.] (a) The town board of supervisors
shall have power by ordinance:
(1) to prohibit or regulate slaughterhouses;
(2) to prevent the bringing, depositing, or leaving within
the town of any unwholesome substance or deposit of solid waste
within the town not otherwise authorized by law, to require the
owners or occupants of lands to remove unwholesome substances
therefrom or the unauthorized deposit of solid waste and in
default thereof if it is not removed to provide for its removal
at the expense of the owner or occupant, which expense shall be
a lien upon the property and may be collected as a special
assessment;
(3) to provide for or regulate the disposal of sewage,
garbage, and other refuse,; and
(4) to provide for the cleaning of, and removal of
obstructions from, any waters in the town and to prevent their
obstruction or pollution.
(b) The town board may establish a board of health under
section 145A.07, subdivision 2, with all the powers of such
boards under the general laws.
Sec. 24. Minnesota Statutes 1988, section 375.18, is
amended by adding a subdivision to read:
Subd. 14. [UNAUTHORIZED DEPOSIT OF SOLID WASTE.] Each
county board may by ordinance:
(1) prohibit the deposit of solid waste within the county
not otherwise authorized by law;
(2) require the owners or occupants of property to remove
the unauthorized deposit of solid waste;
(3) if it is not removed, provide for removal of the solid
waste at the owner's or occupant's expense; and
(4) provide for the expense to be a lien on the property
and collected as a special assessment.
Sec. 25. Minnesota Statutes 1988, section 400.08, is
amended by adding a subdivision to read:
Subd. 5. [FINANCIAL INCENTIVES TO RECYCLE.] A county may:
(1) charge or may require any person who collects solid
waste in the county to charge solid waste generators rates for
collection or disposal that vary depending on the volume of
waste generated;
(2) require collectors to provide financial incentives to
solid waste generators who separate recyclable materials from
their waste; or
(3) require use of any other mechanism to provide
encouragement or rewards to solid waste generators who reduce
their waste generation or who separate recyclable materials from
their waste.
Sec. 26. Minnesota Statutes 1988, section 412.221,
subdivision 22, is amended to read:
Subd. 22. [HEALTH.] (a) The council shall have power by
ordinance:
(1) to prohibit or regulate slaughterhouses;
(2) to prevent the bringing, depositing, or leaving within
the city of any unwholesome substance or deposit of solid waste
within the city not otherwise authorized by law, to require the
owners or occupants of lands to remove unwholesome
substances therefrom or the unauthorized deposit of solid waste
and in default thereof if it is not removed to provide for its
removal at the expense of the owner or occupant, which expense
shall be a lien upon the property and may be collected as a
special assessment;
(3) to provide for or regulate the disposal of sewage,
garbage, and other refuse,; and
(4) to provide for the cleaning of, and removal of
obstructions from, any waters in the city and to prevent their
obstruction or pollution.
(b) The council may establish a board of health as defined
in section 145A.02, subdivision 2, with all the powers of such
boards under the general laws.
Sec. 27. Minnesota Statutes 1988, section 473.149,
subdivision 1, is amended to read:
Subdivision 1. [POLICY PLAN; GENERAL REQUIREMENTS.] The
metropolitan council shall prepare and by resolution adopt as
part of its development guide a long range policy plan for solid
waste management in the metropolitan area. When adopted, the
plan shall be followed in the metropolitan area. The plan shall
address the state policies and purposes expressed in section
115A.02. The plan shall substantially conform to all policy
statements, purposes, goals, standards, maps and plans in
development guide sections and plans adopted by the council,
provided that no land shall be thereby excluded from
consideration as a solid waste facility site except land
determined by the agency to be intrinsically unsuitable for such
use. The plan shall include goals and policies for solid waste
management, including recycling consistent with article 18,
section 12, and household hazardous waste management consistent
with section 115A.96, subdivision 6, in the metropolitan area
and, to the extent appropriate, statements and information
similar to that required under section 473.146, subdivision 1.
The plan shall include criteria and standards for solid waste
facilities and solid waste facility sites respecting the
following matters: general location; capacity; operation;
processing techniques; environmental impact; effect on existing,
planned, or proposed collection services and waste facilities;
and economic viability. The plan shall, to the extent
practicable and consistent with the achievement of other public
policies and purposes, encourage ownership and operation of
solid waste facilities by private industry. For solid waste
facilities owned or operated by public agencies or supported
primarily by public funds or obligations issued by a public
agency, the plan shall include additional criteria and standards
to protect comparable private and public facilities already
existing in the area from displacement unless the displacement
is required in order to achieve the waste management objectives
identified in the plan. In developing the plan the council
shall consider the orderly and economic development, public and
private, of the metropolitan area; the preservation and best and
most economical use of land and water resources in the
metropolitan area; the protection and enhancement of
environmental quality; the conservation and reuse of resources
and energy; the preservation and promotion of conditions
conducive to efficient, competitive, and adaptable systems of
waste management; and the orderly resolution of questions
concerning changes in systems of waste management. Criteria and
standards for solid waste facilities shall be consistent with
rules adopted by the pollution control agency pursuant to
chapter 116 and shall be at least as stringent as the
guidelines, regulations, and standards of the federal
environmental protection agency.
Sec. 28. Minnesota Statutes 1988, section 473.803,
subdivision 1, is amended to read:
Subdivision 1. [COUNTY MASTER PLANS; GENERAL
REQUIREMENTS.] Each metropolitan county, following adoption or
revision of the council's solid waste policy plan and in
accordance with the dates specified therein, and after
consultation with all affected local government units, shall
prepare and submit to the council for its approval, a county
solid waste master plan to implement the policy plan. The
master plan shall be revised and resubmitted at such times as
the council's policy plan may require. The master plan shall
describe county solid waste activities, functions, and
facilities; the existing system of solid waste generation,
collection, and processing, and disposal within the county;
proposed mechanisms for complying with the recycling
requirements of article 18, section 12, and the household
hazardous waste management requirements of section 115A.96,
subdivision 6; existing and proposed county and municipal
ordinances and license and permit requirements relating to solid
waste facilities and solid waste generation, collection, and
processing, and disposal; existing or proposed municipal,
county, or private solid waste facilities and collection
services within the county together with schedules of existing
rates and charges to users and statements as to the extent to
which such facilities and services will or may be used to
implement the policy plan; and any solid waste facility which
the county owns or plans to acquire, construct, or improve
together with statements as to the planned method, estimated
cost and time of acquisition, proposed procedures for operation
and maintenance of each facility; an estimate of the annual cost
of operation and maintenance of each facility; an estimate of
the annual gross revenues which will be received from the
operation of each facility; and a proposal for the use of each
facility after it is no longer needed or usable as a waste
facility. The master plan shall, to the extent practicable and
consistent with the achievement of other public policies and
purposes, encourage ownership and operation of solid waste
facilities by private industry. For solid waste facilities
owned or operated by public agencies or supported primarily by
public funds or obligations issued by a public agency, the
master plan shall contain criteria and standards to protect
comparable private and public facilities already existing in the
area from displacement unless the displacement is required in
order to achieve the waste management objectives identified in
the plan.
Sec. 29. [473.804] [HOUSEHOLD HAZARDOUS WASTE MANAGEMENT.]
By June 30, 1992, each metropolitan county shall develop
and implement a permanent program to manage household hazardous
waste. Each program must include at least quarterly collection
of wastes. Each program must be consistent with the council's
policy plan and must be described as part of each county's solid
waste master plan revision as required under section 473.803,
subdivision 1.
Sec. 30. [REPEALER.]
Section 20 is repealed effective June 30, 1990.
Sec. 31. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 21
WASTE EDUCATION
Section 1. Minnesota Statutes 1988, section 115A.072, is
amended to read:
115A.072 [PUBLIC EDUCATION ON WASTE MANAGEMENT.]
Subdivision 1. [WASTE EDUCATION; COALITION.] (a) The board
office shall provide for the development and implementation of a
program of general public education on waste management in
cooperation and coordination with the pollution control agency,
metropolitan council, department of education, department of
agriculture, state planning agency, environmental quality board,
environmental education board, educational institutions, and
other public agencies with responsibility for waste management
or public education, and three other persons who represent
private industry and who have knowledge of or expertise in
recycling and solid waste management issues. The objectives of
the program are to: develop increased public awareness of and
interest in environmentally sound waste management methods;
encourage better informed decisions on waste management issues
by business, industry, local governments, and the public; and
disseminate practical information about ways in which households
and other institutions and organizations can improve the
management of waste.
(b) The office shall appoint an advisory task force, to be
called the waste education coalition, of up to 18 members to
advise the office in carrying out its responsibilities under
this section and whose membership represents the agencies and
entities listed in this subdivision.
Subd. 2. [OFFICE DUTIES.] In addition to its general
duties established in subdivision 1, the office shall:
(1) develop a statewide waste management public education
campaign with materials that may be easily adapted by political
subdivisions to meet their program needs; and
(2) develop and make available to schools educational
curricula on waste education for grades kindergarten to 12 to
address at least waste reduction, recycling, litter, and proper
management and disposal of problem materials.
Subd. 3. [EDUCATION GRANTS.] (a) The office shall provide
grants to persons for the purpose of developing and distributing
waste education information.
(b) The office shall provide grants and technical
assistance to formal and informal education facilities to
develop and implement a model program to incorporate waste
reduction, recycling, litter prevention, and proper management
of problem materials into educational operations.
(c) The office shall provide grants or awards to formal and
informal education facilities to develop or implement ongoing
waste reduction, recycling, litter prevention, and proper
management of problem materials programs.
Subd. 4. [EDUCATION, PROMOTION, AND PROCUREMENT.] The
office shall include waste reduction as an element of its
program of public education on waste management required under
section 115A.072. The waste reduction education program must
include dissemination of information and may include an award
program for model waste reduction efforts. Waste reduction
educational efforts must also include provision of information
about and promotion of the model procurement program developed
by the commissioner of administration under section 115A.15,
subdivision 7, or any other model procurement program that
results in significant waste reduction.
Sec. 2. [WASTE EDUCATION CURRICULUM.]
The state board of education shall amend its rules adopted
pursuant to Laws 1984, chapter 463, article 7, section 26,
subdivisions 1 and 2, to require a waste education component
developed pursuant to section 115A.072, subdivision 2, clause
(2), as part of the minimum comprehensive educational programs
for both secondary and elementary levels. The amended rules
adopted by the state board must go into effect beginning in the
1991-1992 school year.
Sec. 3. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 22
WASTE SPENDING
Section 1. [MAJOR APPLIANCE DISPOSAL REPORT.]
The office of waste management shall prepare and submit a
report to the legislature and the legislative commission on
waste management by July 15, 1990, on how major appliances in
the state are being disposed of and should be disposed of.
Sec. 2. [115A.558] [SAFETY GUIDE.]
The pollution control agency, in cooperation with the
office of waste management and the metropolitan council, shall
prepare and distribute to all interested persons a guide for
operation of a recycling or yard waste composting facility to
protect the environment and public health.
Sec. 3. [SOLID WASTE COMPOSITION STUDY.]
The pollution control agency, in cooperation with the
office of waste management and the metropolitan council, shall
study and comprehensively analyze the composition of solid waste
on a statewide and regional basis during each of the four
seasons of the year. The study must include and not duplicate
existing waste composition information previously gathered and
must provide information on recyclables and noncombustibles in
the waste, generation of the waste, and other solid waste
characteristics. The pollution control agency shall present its
findings to the legislative commission on waste management by
November 1, 1992.
Sec. 4. [STUDY; PURCHASE AND USE OF RECYCLED MATERIALS.]
The commissioner of administration shall conduct a study
and evaluation of practices, procedures, and methods to ensure
that state contracts and purchasing be structured to encourage
the procurement and use of recycled materials and to meet the
requirements of section 115A.15, subdivision 7.
By July 1, 1991, the commissioner shall develop a plan and
implementation strategy based on the study and shall present it,
along with any proposals for legislative action, to the
legislative commission on waste management.
Sec. 5. [PLASTICS STUDY.]
The office of waste management shall conduct a study on
appropriate waste management of plastic material. The study
shall analyze for the different types of plastic, based on resin
grade:
(1) the trends in use and new plastics being developed;
(2) the impacts on waste processing technologies;
(3) the material composition, including heavy metals and
additives;
(4) opportunities for reduction and recycling; and
(5) market development.
The study shall also analyze and make recommendations on
the impact from the use of degradable plastics on reuse and
recycling opportunities. The office shall report its findings
and recommendations to the legislature by January 1, 1991.
Sec. 6. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 23
OFFICE OF WASTE MANAGEMENT
Section 1. [OFFICE OF WASTE MANAGEMENT; OPERATIONS.]
$2,650,000 is appropriated from the general fund to the
office of waste management created by section 115A.055, for its
general operations and management. $500,000 is for fiscal year
1990 and $2,150,000 is for fiscal year 1991. The approved
complement of the office of waste management is increased by 16
positions in fiscal year 1990 and 28 positions in fiscal year
1991. These appropriations must be added to the appropriations
to the office of waste management in Laws 1989, chapter 335,
article 1, section 24.
Sec. 2. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
ARTICLE 24
APPROPRIATIONS
Section 1. [AGENCY APPROPRIATIONS.]
Subdivision 1. [GENERAL APPROPRIATIONS.] $7,687,000 is
appropriated from the general fund to the agencies and for the
purposes indicated, to be available for the fiscal year ending
June 30 in the years indicated. If the appropriation for either
year is insufficient, the appropriation for the other year is
available for it.
Subd. 2. [OFFICE OF WASTE 1990 1991
MANAGEMENT.]
(a) Solid waste reduction programs $ 175,000 $ 350,000
(b) Solid waste recycling programs 250,000 500,000
(c) Market development programs 800,000 1,600,000
(d) Litter prevention, control,
and abatement grants 50,000 100,000
(e) Public education programs 250,000 500,000
(f) Problem materials collection
and disposal 75,000 150,000
The approved complement of the office
of waste management is increased by 12
positions.
Subd. 3. [POLLUTION CONTROL
AGENCY.]
(a) Problem materials management 500,000 1,000,000
(b) Recycling programs 300,000 750,000
The approved complement of the
pollution control agency is increased
by seven positions.
Subd. 4. [DEPARTMENT OF
ADMINISTRATION.]
Waste reduction, procurement, and
recycling 100,000 200,000
The approved complement of the
department of administration is
increased by three positions.
Subd. 5. [DEPARTMENT OF
REVENUE.]
Tax administration 37,000 -0-
Sec. 2. [COUNTY BLOCK GRANTS.]
Subdivision 1. [GENERAL FUND APPROPRIATION.] $22,281,000
is appropriated from the general fund to the office of waste
management for distribution as provided in article 19, section
1, subdivisions 1 to 3, except as otherwise provided in this
section. $6,731,000 is appropriated for fiscal year 1990 and
$15,550,000 is appropriated for fiscal year 1991. Any
unencumbered balance remaining in the first year does not cancel
and is available for the second year.
Subd. 2. [DISTRIBUTION.] The distribution for fiscal year
1990 is subject to a minimum payment to each county of $27,500
rather than $55,000 under article 19, section 1, subdivision 1.
The distribution for fiscal year 1991 shall be in two payments
with the second payment made after November 1, 1990.
Subd. 3. [REDUCTION FOR DEFICIENT REVENUES.] If the amount
of revenue estimated by the commissioner of revenue and reported
to the office of waste management under article 19, section 8,
is less than $29,968,000, 75 percent of the difference between
the amount estimated and $29,968,000 must be subtracted from the
appropriation in subdivision 1, and the distribution to be made
after November 1, 1990, must be reduced by the same amount.
Subd. 4. [ADDITIONAL GRANTS WITH EXCESS REVENUES.] (a) If
the amount of revenue estimated by the commissioner of revenue
and reported to the office of waste management under article 19,
section 8, is greater than $29,968,000, 75 percent of the
difference between the amount estimated and $29,968,000 is
appropriated to the office of waste management to be distributed
to counties after November 1, 1990, as provided in this
subdivision and is subject to article 19, section 1,
subdivisions 2 and 3. No more than $5,000,000 shall be
appropriated for distribution to counties under this subdivision.
(b) Notwithstanding article 19, section 1, subdivision 1,
the appropriation in this subdivision must be distributed to
counties to provide that in fiscal years 1990 and 1991 each
county receives at least 50 percent of the revenue generated in
that county by the tax on solid waste collection and disposal
services imposed in article 19. The office of waste management
shall distribute the appropriation so that the county or
counties receiving the smallest percentage of grant received to
revenue generated is increased to the percentage of the county
or counties with the next smallest percentage of grant received
to revenue generated until the appropriation is spent or each
county has received a grant of at least 50 percent of the
revenue generated in the county. Any remainder must be
distributed among all counties in proportion to their
population. For purposes of this paragraph, the commissioner of
revenue must estimate the amount of revenue generated in each
county.
(c) A county that participates in a multicounty district
that manages solid waste must pass through money to the district
in proportion to the district's population.
Sec. 3. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
Presented to the governor October 2, 1989
Signed by the governor October 3, 1989, 4:05 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes