Office of the Revisor of Statutes
Minnesota Session Laws - 1993, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1993
CHAPTER 375-H.F.No. 427
An act relating to the financing and operation of
state and local government; revising the operation of
the local government trust fund; modifying the
administration, computation, collection, and
enforcement of taxes; changing tax rates, bases,
credits, exemptions, withholding, and payments;
modifying property tax provisions relating to
procedures, valuation, levies, classifications,
exemptions, notices, hearings, and assessors;
adjusting formulas of state aids to local governments;
providing for the establishment and operation of
special service districts; authorizing establishment
of an ambulance district; modifying definitions in the
property tax refund law and providing a source of
funding for the refunds; authorizing and changing
requirements for special assessments; modifying
provisions governing the establishment and operation
of tax increment financing districts; establishing a
process by which local governments may obtain waivers
of state rules and laws establishing procedures;
establishing a board of government innovation and
cooperation and authorizing it to provide grants to
encourage cooperation and innovation by local
governments; authorizing imposition of local taxes;
imposing a sports bookmaking tax; changing certain
bonding and local government finance provisions;
enacting provisions relating to certain cities,
counties, and special taxing districts; imposing a tax
on contaminated property and providing for use of the
proceeds; conforming with changes in the federal
income tax law; clarifying an income tax apportionment
formula; modifying taconite production tax provisions,
and increasing the distribution of the proceeds to the
taconite economic development fund; modifying the
availability of tax incentives and preferences;
providing additional allocations to border city
enterprise zones; providing for a budget reserve and
cash flow account transfer; revising penalty,
notification, and publication provisions of the unfair
cigarette sales act; defining terms and changing
definitions; establishing advisory councils; requiring
reports and studies; classifying data; making
technical corrections, clarifications, and
administrative changes to various taxes and to tax
administration and enforcement; changing and imposing
penalties; appropriating money; amending Minnesota
Statutes 1992, sections 16A.15, subdivision 6, as
amended; 16A.1541, as amended; 16A.712; 17A.03,
subdivision 5; 31.51, subdivision 9; 31A.02,
subdivisions 4 and 10; 31B.02, subdivision 4; 35.821,
subdivision 4; 60A.15, subdivisions 2a, 9a, and by
adding a subdivision; 60A.198, subdivision 3; 60A.199,
subdivision 4, and by adding a subdivision; 82.19, by
adding a subdivision; 82B.035, by adding a
subdivision; 84.82, subdivision 10; 86B.401,
subdivision 12; 97A.061, subdivisions 2 and 3;
103B.635, subdivision 2; 115B.22, subdivision 7;
134.001, by adding a subdivision; 134.35, subdivision
1; 134.351, subdivision 4; 204D.19, by adding a
subdivision; 205.10, by adding a subdivision; 205A.05,
subdivision 1; 239.785; 243.23, subdivision 3;
256E.06, subdivision 12; 270.06; 270.07, subdivision
3; 270.071, subdivision 2; 270.072, subdivision 2;
270.41; 270.66, by adding a subdivision; 270.70,
subdivision 1; 270A.03, subdivision 7; 270A.10;
270B.01, subdivision 8; 270B.12, by adding a
subdivision; 270B.14, subdivision 8; 271.06,
subdivision 1; 271.09, subdivision 3; 272.01,
subdivision 3; 272.02, subdivisions 1 and 4; 272.025,
subdivision 1; 272.115, subdivisions 1 and 4; 272.12;
273.03, subdivision 2; 273.061, subdivisions 1 and 8;
273.11, subdivisions 1, 5, 6a, 13, and by adding
subdivisions; 273.112, subdivision 3, and by adding a
subdivision; 273.121; 273.124, subdivisions 1, 9, 13,
and by adding subdivisions; 273.13, subdivisions 23,
24, 25, and 33; 273.1318, subdivision 1; 273.135,
subdivision 2; 273.138, subdivision 5; 273.1398,
subdivisions 1, 2, 3, 5b, and by adding a subdivision;
273.1399, subdivision 1; 273.33, subdivision 2;
274.13, subdivision 1; 274.18; 275.065, subdivisions
3, 5a, 6, and by adding a subdivision; 275.07,
subdivisions 1, 4, and by adding a subdivision;
275.28, subdivision 3; 275.295; 276.02; 276.04,
subdivision 2; 277.01, subdivision 2; 277.15; 277.17;
278.01, subdivision 1; 278.02; 278.03; 278.04; 278.08;
278.09; 279.025; 279.37, subdivision 1a; 287.21,
subdivision 4; 287.22; 289A.08, subdivisions 3, 10,
and 15; 289A.09, subdivision 1, and by adding a
subdivision; 289A.11, subdivisions 1 and 3; 289A.12,
subdivisions 2, 3, 4, 7, 8, 9, 10, 11, 12, and 14;
289A.18, subdivisions 1 and 4; 289A.20, subdivisions 2
and 4; 289A.25, subdivisions 1, 2, 5a, 6, 8, 10, and
12; 289A.26, subdivisions 1, 4, 6, and 7; 289A.36,
subdivisions 3 and 7; 289A.40, by adding a
subdivision; 289A.50, subdivision 5; 289A.56,
subdivision 3; 289A.60, subdivisions 1, 2, 15, and by
adding subdivisions; 289A.63, subdivision 3; 290.01,
subdivisions 7, 19, 19a, and 19c; 290.0671,
subdivision 1; 290.091, subdivisions 2 and 6;
290.0921, subdivision 3; 290.191, subdivision 4;
290A.03, subdivisions 3, 7, and 8; 290A.04,
subdivisions 1, 2h, and by adding a subdivision;
290A.23; 294.03, subdivisions 1, 2, and by adding a
subdivision; 296.01, by adding subdivisions; 296.02,
subdivision 8; 296.14, subdivisions 1 and 2; 296.18,
subdivision 1; 297.03, subdivision 6; 297.07,
subdivisions 1 and 4; 297.35, subdivisions 1 and 5;
297.43, subdivisions 1, 2, and by adding a
subdivision; 297A.01, subdivisions 3, 6, 13, 15, and
16; 297A.04; 297A.06; 297A.07, subdivision 1; 297A.11;
297A.136; 297A.14, subdivision 1; 297A.25,
subdivisions 3, 7, 11, 16, 34, 41, and by adding a
subdivision; 297B.01, subdivision 5; 297B.03; 297C.03,
subdivision 1; 297C.04; 297C.05, subdivision 2;
297C.14, subdivisions 1, 2, and by adding a
subdivision; 298.227; 298.27; 298.28, subdivisions 4,
7, 9a, and 10; 298.75, subdivisions 4 and 5; 299F.21,
subdivision 2; 299F.23, subdivision 2, and by adding a
subdivision; 319A.11, subdivision 1; 325D.33, by
adding a subdivision; 325D.37, subdivision 3; 347.10;
348.04; 349.212, subdivision 4; 349.217, subdivisions
1, 2, and by adding a subdivision; 375.192,
subdivision 2; 429.061, subdivision 1, and by adding a
subdivision; 465.80, subdivisions 1, 2, 4, and 5;
465.81, subdivision 2; 465.82, subdivision 1; 465.83;
465.87, subdivision 1, and by adding a subdivision;
469.012, subdivision 1; 469.040, subdivision 3;
469.169, by adding a subdivision; 469.174,
subdivisions 19, 20, and by adding a subdivision;
469.175, subdivisions 1, 5, and by adding
subdivisions; 469.176, subdivisions 1, 4, 4c, 4e, and
4g; 469.177, subdivisions 1 and 8; 469.1831,
subdivision 4; 473.13, subdivision 1; 473.1623,
subdivision 3; 473.167, subdivision 4; 473.249,
subdivision 2; 473.446, subdivision 8; 473.711,
subdivision 5; 473.843, subdivision 3; 473H.10,
subdivision 3; 477A.011, subdivisions 1a, 20, and by
adding subdivisions; 477A.013, subdivision 1, and by
adding subdivisions; 477A.03, subdivision 1; and
477A.14; Laws 1953, chapter 387, section 1; Laws 1969,
chapter 561, section 1; Laws 1971, chapters 373,
sections 1 and 2; and 455, section 1; and Laws 1985,
chapter 302, sections 1, subdivision 3; 2, subdivision
1; and 4; Laws 1992, chapter 511, article 2, section
61; proposing coding for new law in Minnesota
Statutes, chapters 17; 116J; 134; 270; 272; 273; 289A;
296; 297; 297A; 325D; 349; 383A; 465; 469; and 473;
repealing Minnesota Statutes 1992, sections 60A.13,
subdivision 1a; 115B.24, subdivision 10; 272.115,
subdivision 1a; 273.124, subdivision 16; 273.1398,
subdivision 5; 273.49; 274.19; 274.20; 275.03; 275.07,
subdivision 3; 277.011; 289A.08, subdivisions 9 and
12; 297A.258; 325D.33, subdivision 7; 348.03; 383C.78;
477A.011, subdivisions 3a, 15, 16, 17, 18, 22, 23, 25,
and 26; 477A.013, subdivisions 2, 3, and 5; Laws 1953,
chapter 387, section 2; Laws 1963, chapter 603,
section 1; and Laws 1969, chapter 592, sections 1, 2,
and 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
SALES AND USE TAX TECHNICAL
Section 1. Minnesota Statutes 1992, section 84.82,
subdivision 10, is amended to read:
Subd. 10. [PROOF OF SALES TAX PAYMENT.] A person applying
for initial registration of a snowmobile must provide a
snowmobile purchaser's certificate, showing a complete
description of the snowmobile, the seller's name and address,
the full purchase price of the snowmobile, and the trade-in
allowance, if any. The certificate must include information
showing either (1) that the sales and use tax under chapter 297A
was paid or (2) the purchase was exempt from tax under chapter
297A. The commissioner of public safety, in consultation with
the commissioner and the commissioner of revenue, shall
prescribe the form of the certificate.
The certificate is not required if the applicant provides a
receipt, invoice, or other document that shows the snowmobile
was purchased from a retailer maintaining a place of business in
this state as defined in section 297A.21, subdivision 1.
Sec. 2. Minnesota Statutes 1992, section 86B.401,
subdivision 12, is amended to read:
Subd. 12. [PROOF OF SALES TAX PAYMENT.] A person applying
for initial licensing of a watercraft must provide a watercraft
purchaser's certificate, showing a complete description of the
watercraft, the seller's name and address, the full purchase
price of the watercraft, and the trade-in allowance, if any.
The certificate must include information showing either (1) that
the sales and use tax under chapter 297A was paid or (2) the
purchase was exempt from tax under chapter 297A. The
commissioner of public safety, in consultation with the
commissioner and the commissioner of revenue, shall prescribe
the form of the certificate.
The certificate is not required if the applicant provides a
receipt, invoice, or other document that shows the watercraft
was purchased from a retailer maintaining a place of business in
this state as defined in section 297A.21, subdivision 1.
Sec. 3. Minnesota Statutes 1992, section 289A.20,
subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by
chapter 297A are due and payable to the commissioner monthly on
or before the 20th day of the month following the month in which
the taxable event occurred or following another reporting period
as the commissioner prescribes, except that use taxes due on an
annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of
the calendar year.
(b) A vendor having a liability of $1,500 or more in May of
a year must remit the June liability in the following manner:
(1) On or before June 20 of the year, the vendor must remit
the actual May liability and one-half of the estimated June
liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay
any additional amount of tax not remitted in June.
(3) If the vendor is required to remit by means of funds
transfer as provided in paragraph (d), the vendor may remit the
May liability as provided for in paragraph (e), but must remit
one-half of the estimated June liability on or before June 14.
The remaining amount of the June liability is due on August 14.
(c) When a retailer located outside of a city that imposes
a local sales and use tax collects use tax to be remitted to
that city, the retailer is not required to remit the tax until
the amount collected reaches $10.
(d) A vendor having a liability of $240,000 or more during
a fiscal year ending June 30 must remit all liabilities in the
subsequent calendar year by means of a funds transfer as defined
in section 336.4A-104, paragraph (a). The funds transfer
payment date, as defined in section 336.4A-401, must be on or
before the date the tax is due the 14th day of the month
following the month in which the taxable event occurred, except
for the one-half of the estimated June liability, which is due
with the May liability on June 14. The remaining amount of the
June liability is due on August 14. If the date the tax is due
is not a funds transfer business day, as defined in section
336.4A-105, paragraph (a), clause (4), the payment date must be
on or before the funds transfer business day next following the
date the tax is due.
(e) If the vendor required to remit by electronic funds
transfer as provided in paragraph (d) is unable due to
reasonable cause to determine the actual sales and use tax due
on or before the due date for payment, the vendor may remit an
estimate of the tax owed using one of the following options:
(1) 100 percent of the tax reported on the previous month's
sales and use tax return;
(2) 100 percent of the tax reported on the sales and use
tax return for the same month in the previous calendar year; or
(3) 95 percent of the actual tax due.
Any additional amount of tax that is not remitted on or
before the due date for payment, must be remitted with the
return. A vendor must notify the commissioner of the option
that will be used to estimate the tax due, and must obtain
approval from the commissioner to switch to another option. If
a vendor fails to remit the actual liability or does not remit
using one of the estimate options by the due date for payment,
the vendor must remit actual liability as provided in paragraph
(d) in all subsequent periods. This paragraph does not apply to
the June sales and use liability.
Sec. 4. Minnesota Statutes 1992, 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. "Sale" does not
include:
(1) meals or drinks served to patients, inmates, or persons
residing at hospitals, sanitariums, nursing homes, senior
citizens homes, and correctional, detention, and detoxification
facilities;
(2) 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; or
(3) meals and lunches served at public and private schools,
universities, or colleges. 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, except a
world championship football game sponsored by the national
football league, and the privilege of having access to and the
use of amusement devices, tanning facilities, reducing salons,
steam baths, turkish baths, 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. Telephone service
includes paging services and private communication service, as
defined in United States Code, title 26, section 4252(d), except
for private communication service purchased by an agent acting
on behalf of the state lottery. 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.
The sale of natural gas to be used as a fuel in vehicles
propelled by natural gas shall not be considered a sale for the
purposes of this section;
(g) The furnishing for a consideration of cable television
services, including charges for basic monthly service, charges
for monthly premium service, and any other charges for any other
pay-per-view, monthly, or similar television services;
(h) Notwithstanding subdivision 4, and section
297A.25, subdivision subdivisions 9 and 12, the sales of horses
racehorses including claiming sales and fees paid for breeding a
stallion to a mare. This clause applies to sales and fees with
respect to racehorses or horses previously used for racing shall
be considered a "sale" and a "purchase." "Racehorse" means a
horse that is or is intended to be used for racing and whose
birth has been recorded by the Jockey Club or the United States
Trotting Association or the American Quarter Horse Association.
"Sale" does not include fees paid for breeding horses that are
not racehorses;
(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;
(vi) lawn care, fertilizing, mowing, spraying and sprigging
services; garden planting and maintenance; arborist services;
tree, bush, and shrub pruning, bracing, spraying, and surgery;
and tree trimming for public utility lines. Services performed
under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;
(vii) solid waste collection and disposal services as
described in section 297A.45;
(viii) massages, except when provided by a licensed health
care facility or professional or upon written referral from a
licensed health care facility or professional for treatment of
illness, injury, or disease; and
(ix) the furnishing for consideration of lodging, board and
care services for animals in kennels and other similar
arrangements, but excluding veterinary and horse boarding
services.
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. 5. Minnesota Statutes 1992, section 297B.01,
subdivision 5, is amended to read:
Subd. 5. [MOTOR VEHICLE.] "Motor vehicle" means any
self-propelled vehicle not operated exclusively upon railroad
tracks and any vehicle propelled or drawn by a self-propelled
vehicle for which registration is required by chapter 168.
Motor vehicle includes vehicles known as trackless trolleys
which are propelled by electric power obtained from overhead
trolley wires but not operated upon rails and motor vehicles
that are purchased on Indian reservations where the tribal
council has entered into a motor vehicle excise tax refund
agreement with the state of Minnesota. Motor vehicle does not
include snowmobiles, travel trailers, or manufactured homes.
For purposes of taxation only under this section, "motor
vehicle" includes a park trailer as defined in section 168.011,
subdivision 8, paragraph (b).
Sec. 6. Minnesota Statutes 1992, section 297B.03, is
amended to read:
297B.03 [EXEMPTIONS.]
There is specifically exempted from the provisions of this
chapter and from computation of the amount of tax imposed by it
the following:
(1) Purchase or use, including use under a lease purchase
agreement or installment sales contract made pursuant to section
465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in
and subject to the conditions provided in section 297A.25,
subdivision 18.
(2) Purchase or use of any motor vehicle by any person who
was a resident of another state at the time of the purchase and
who subsequently becomes a resident of Minnesota, provided the
purchase occurred more than 60 days prior to the date such
person began residing in the state of Minnesota.
(3) Purchase or use of any motor vehicle by any person
making a valid election to be taxed under the provisions of
section 297A.211.
(4) Purchase or use of any motor vehicle previously
registered in the state of Minnesota by any corporation or
partnership when such transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code of
1986, as amended through December 31, 1988.
(5) Purchase or use of any vehicle owned by a resident of
another state and leased to a Minnesota based private or for
hire carrier for regular use in the transportation of persons or
property in interstate commerce provided the vehicle is titled
in the state of the owner or secured party, and that state does
not impose a sales or motor vehicle excise tax on motor vehicles
used in interstate commerce.
(6) Purchase or use of a motor vehicle by a private
nonprofit or public educational institution for use as an
instructional aid in automotive training programs operated by
the institution. "Automotive training programs" includes motor
vehicle body and mechanical repair courses but does not include
driver education programs.
(7) Purchase of a motor vehicle for use as an ambulance by
an ambulance service licensed under section 144.802.
Sec. 7. [REPEALER.]
Minnesota Statutes 1992, section 297A.258, is repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 and 2 are effective for purchases made on or
after July 1, 1993.
Sections 4, 5, and 6 are effective July 1, 1993.
Sections 3 and 7 are effective the day following final
enactment.
ARTICLE 2
MISCELLANEOUS TECHNICAL
Section 1. Minnesota Statutes 1992, section 275.28,
subdivision 3, is amended to read:
Subd. 3. [DESIGNATION OF YEAR OF TAX.] Beginning with
property taxes payable in 1980, Taxes on real and personal
property shall be related to and designated on the property tax
statement by the year in which they become payable but the liens
shall relate back to the assessment date preceding except as
otherwise provided. For cash basis taxpayers, taxes on real and
personal property shall relate to the year in which they become
payable. For accrual basis taxpayers, taxes on real and
personal property shall relate to the year in which the lien
arose.
Sec. 2. [289A.07] [ELECTRONICALLY FILED RETURNS;
SIGNATURES.]
For purposes of this chapter, the name of the taxpayer, the
name of the taxpayer's authorized agent, or the taxpayer's
identification number, will constitute a signature when
transmitted as part of the return information on returns filed
by electronic means by the taxpayer or at the taxpayer's
direction. "Electronic means" includes, but is not limited to,
the use of a touch-tone telephone to transmit return information
in a manner prescribed by the commissioner.
Sec. 3. Minnesota Statutes 1992, section 289A.08,
subdivision 3, is amended to read:
Subd. 3. [CORPORATIONS.] A corporation that is subject to
the state's jurisdiction to tax under section 290.014,
subdivision 5, must file a return, except that a foreign
operating corporation as defined in section 290.01, subdivision
6b, is not required to file a return. The return must be signed
by a person designated by the corporation. The commissioner
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. 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 change or rescind
the election by filing the form required by the commissioner.
Sec. 4. Minnesota Statutes 1992, section 289A.08,
subdivision 10, is amended to read:
Subd. 10. [FILING OF PROPER RETURN.] The return must
specifically set forth the items of gross income, deductions,
credits against the tax, and any other data necessary for
computing the amount of any item required for determining the
amount of the net income tax liability. The return must
be filed in the form and manner the commissioner prescribes.
The filing of a return required under this section is considered
an assessment. The return must be signed by the taxpayer in the
case of an individual's return, by both spouses in the case of a
joint return, by someone designated by the corporation,
partnership, entertainment entity, or mining company in the case
of a corporate, composite income, entertainment, or occupation
tax return, and by the trustee, receiver, or other fiduciary in
the case of a fiduciary's return.
Sec. 5. Minnesota Statutes 1992, section 289A.08,
subdivision 15, is amended to read:
Subd. 15. [MINING COMPANIES.] A mining company must file
an annual return signed by a person designated by the mining
company.
Sec. 6. Minnesota Statutes 1992, section 289A.09,
subdivision 1, is amended to read:
Subdivision 1. [RETURNS.] (a) An employer who is required
to deduct and withhold tax under section 290.92, subdivision 2a
or 3, and a person required to deduct and withhold tax under
section 290.923, subdivision 2, must file a return with the
commissioner for each quarterly period unless otherwise
prescribed by the commissioner.
(b) A person or corporation required to make deposits under
section 290.9201, subdivision 8, must file an entertainer
withholding tax return with the commissioner.
(c) A person required to withhold an amount under section
290.9705, subdivision 1, must file a return.
(d) A partnership required to deduct and withhold tax under
section 290.92, subdivision 4b, must file a return.
(e) An S corporation required to deduct and withhold tax
under section 290.92, subdivision 4c, must also file a return.
(f) Returns must be filed in the form and manner, and
contain the information prescribed by the commissioner. Every
return for taxes withheld must contain a written declaration
that it is correct and complete, and a confession of judgment
for the amount of tax shown due, to the extent not timely
paid be signed by the employer, entertainment entity, contract
payor, partnership, or S corporation, or a designee.
Sec. 7. Minnesota Statutes 1992, section 289A.11,
subdivision 1, is amended to read:
Subdivision 1. [RETURN REQUIRED.] Except as provided in
section 289A.18, subdivision 4, for the month in which taxes
imposed by sections 297A.01 to 297A.44 are payable, or for which
a return is due, a return for the preceding reporting period
must be filed with the commissioner in the form and manner the
commissioner prescribes. The return must be verified by a
written declaration that it is made under the criminal penalties
for making a false return, and in addition must contain a
confession of judgment for the amount of the tax shown due to
the extent not timely paid. A person making sales at retail at
two or more places of business may file a consolidated return
subject to rules prescribed by the commissioner.
Notwithstanding this subdivision, a person who is not
required to hold a sales tax permit under chapter 297A and who
makes annual purchases of less than $5,000 that are subject to
the use tax imposed by section 297A.14, may file an annual use
tax return on a form prescribed by the commissioner. If a
person who qualifies for an annual use tax reporting period is
required to obtain a sales tax permit or makes use tax purchases
in excess of $5,000 during the calendar year, the reporting
period must be considered ended at the end of the month in which
the permit is applied for or the purchase in excess of $5,000 is
made and a return must be filed for the preceding reporting
period.
Sec. 8. Minnesota Statutes 1992, section 289A.11,
subdivision 3, is amended to read:
Subd. 3. [WHO MUST FILE RETURN.] For purposes of the sales
tax, a return must be filed by a retailer who is required to
hold a permit. For the purposes of the use tax, a return must
be filed by a retailer required to collect the tax and by a
person buying any items, the storage, use or other consumption
of which is subject to the use tax, who has not paid the use tax
to a retailer required to collect the tax. The returns must be
signed by the person filing the return or by the person's agent
duly authorized in writing. The signature requirement can be
waived by agreement, in writing, between the commissioner and
the person required to file the returns for a period not to
exceed one year from the date of the agreement. The agreement
must contain an admission of liability by the taxpayer for the
taxes reported on all returns filed by the taxpayer without a
signature during the period of the waiver, to the extent such
taxes are not timely paid.
Sec. 9. Minnesota Statutes 1992, section 289A.12,
subdivision 2, is amended to read:
Subd. 2. [RETURNS REQUIRED OF BANKS; COMMON TRUST FUNDS.]
The commissioner may by notice and demand require a bank
maintaining a common trust fund must make to file with the
commissioner a return for a taxable year, stating specifically
with respect to the fund, the items of gross income and
deductions provided by section 290.281, subdivision 1. The
return must include the names and addresses of the participants
entitled to share the net income if distributed and the amount
of the proportionate share of each participant.
Sec. 10. Minnesota Statutes 1992, section 289A.12,
subdivision 3, is amended to read:
Subd. 3. [RETURNS OR REPORTS BY PARTNERSHIPS, FIDUCIARIES,
AND S CORPORATIONS.] (a) Partnerships must make file a
return with the commissioner for each taxable year. The return
must conform to the requirements of section 290.31, and must
include the names and addresses of the partners entitled to a
distributive share in their taxable net income, gain, loss, or
credit, and the amount of the distributive share to which each
is entitled. The return must contain a written declaration that
it is correct and complete. A partnership required to file a
return for a partnership taxable year must furnish a copy of the
information required to be shown on the return to a person who
is a partner at any time during the taxable year, on or before
the day on which the return for the taxable year was filed.
(b) The fiduciary of an estate or trust making the return
required to be filed under section 289A.08, subdivision 2, for a
taxable year must give a beneficiary who receives a distribution
from the estate or trust with respect to the taxable year or to
whom any item with respect to the taxable year is allocated, a
statement containing the information required to be shown on the
return, on or before the date on which the return was filed.
(c) An S corporation must make file a return with the
commissioner for a taxable year during which an election under
section 290.9725 is in effect, stating specifically the names
and addresses of the persons owning stock in the corporation at
any time during the taxable year, the number of shares of stock
owned by a shareholder at all times during the taxable year, the
shareholder's pro rata share of each item of the corporation for
the taxable year, and other information the commissioner
requires. An S corporation required to file a return under this
paragraph for any taxable year must furnish a copy of the
information shown on the return to the person who is a
shareholder at any time during the taxable year, on or before
the day on which the return for the taxable year was filed.
(d) The partnership or S corporation return must be signed
by someone designated by the partnership or S corporation.
Sec. 11. Minnesota Statutes 1992, section 289A.12,
subdivision 4, is amended to read:
Subd. 4. [RETURNS BY PERSONS, CORPORATIONS, COOPERATIVES,
GOVERNMENTAL ENTITIES, OR SCHOOL DISTRICTS.] The commissioner
may by notice and demand require to the extent required by
section 6041 of the Internal Revenue Code of 1986, as amended
through December 31, 1991, a person, corporation, or
cooperative, the state of Minnesota and its political
subdivisions, and a city, county, and school district in
Minnesota, making payments in the regular course of a trade or
business during the taxable year to any person or corporation of
$600 or more on account of rents or royalties, or of $10 or more
on account of interest, or $10 or more on account of dividends
or patronage dividends, or $600 or more on account of either
wages, salaries, commissions, fees, prizes, awards, pensions,
annuities, or any other fixed or determinable gains, profits or
income, not otherwise reportable under section 289A.09,
subdivision 2, or on account of earnings of $10 or more
distributed to its members by savings, building and loan
associations or credit unions chartered under the laws of this
state or the United States, (1) must make to file with the
commissioner a return (except in cases where a valid agreement
to participate in the combined federal and state information
reporting system has been entered into, and the return is filed
only with the commissioner of internal revenue under the
applicable filing and informational reporting requirements of
the Internal Revenue Code of 1986, as amended through December
31, 1991) with respect to the payments in excess of the amounts
named, giving the names and addresses of the persons to whom the
payments were made, the amounts paid to each, and (2) must to
make a return with respect to the total number of payments and
total amount of payments, for each category of income named,
which were in excess of the amounts named. This subdivision
does not apply to the payment of interest or dividends to a
person who was a nonresident of Minnesota for the entire year.
A person, corporation, or cooperative required to file
returns under this subdivision must file the returns on magnetic
media if magnetic media was used to satisfy the federal
reporting requirement under section 6011(e) of the Internal
Revenue Code of 1986, as amended through December 31, 1991,
unless the person establishes to the satisfaction of the
commissioner that compliance with this requirement would be an
undue hardship.
Sec. 12. Minnesota Statutes 1992, section 289A.12,
subdivision 7, is amended to read:
Subd. 7. [RETURNS FOR REAL PROPERTY HOLDINGS OF ALIENS.]
The commissioner may by notice and demand require a person or
corporation required to make a return under section 6039C
(relating to information return on a foreign person holding a
United States real property interest) of the Internal Revenue
Code of 1986, as amended through December 31, 1991, must to make
a similar return for the commissioner for foreign persons
holding a Minnesota real property interest.
Sec. 13. Minnesota Statutes 1992, section 289A.12,
subdivision 8, is amended to read:
Subd. 8. [RETURNS FOR UNEMPLOYMENT COMPENSATION.] The
commissioner may by notice and demand require a person who makes
payments of unemployment compensation totaling $10 or more to
any individual during a calendar year and who is required to
make and file a return under section 6050B of the Internal
Revenue Code of 1986, as amended through December 31, 1991, must
to file a copy of the return with the commissioner.
Sec. 14. Minnesota Statutes 1992, section 289A.12,
subdivision 9, is amended to read:
Subd. 9. [RETURNS FOR PAYMENTS OF REMUNERATION FOR
SERVICES AND DIRECT SALES.] The commissioner may by notice and
demand require a person who is required to make a return under
section 6041A (relating to information returns regarding
payments of remuneration for services and direct sales) of the
Internal Revenue Code of 1986, as amended through December 31,
1991, must to file a copy of the return containing the
information required under that section with the commissioner.
The provisions of that section govern the requirements of a
statement that must be given to persons with respect to whom
information is required to be given.
Sec. 15. Minnesota Statutes 1992, section 289A.12,
subdivision 10, is amended to read:
Subd. 10. [RETURNS RELATING TO SOCIAL SECURITY BENEFITS.]
The commissioner may by notice and demand require the
appropriate federal official who is required to make a return
under section 6050F (relating to social security benefits) of
the Internal Revenue Code of 1986, as amended through December
31, 1991, shall to file a copy of the return containing the
information required under that section with the commissioner.
Sec. 16. Minnesota Statutes 1992, section 289A.12,
subdivision 11, is amended to read:
Subd. 11. [RETURNS BY TRUSTEES.] The commissioner may by
notice and demand require the trustee of an individual
retirement account and the issuer of an endowment contract or an
individual retirement annuity who is required to make a report
under section 408(i) of the Internal Revenue Code of 1986, as
amended through December 31, 1991, must to file with the
commissioner a copy of that report containing the information
required under that subsection. The provisions of that
subsection govern when the reports are to be filed and the
requirements of a statement that must be given to persons with
respect to whom information must be given.
Sec. 17. Minnesota Statutes 1992, section 289A.12,
subdivision 12, is amended to read:
Subd. 12. [STATEMENTS TO PAYEES.] A person making who can
be required to file a return with the commissioner under
subdivisions 4 to 10 must furnish to a person whose name is set
forth in the return a written statement showing the name and
address of the person making the return, and the aggregate
amount of payments to the person shown on the return.
This written statement must be given to the person on or
before January 31 of the year following the calendar year for
which the return was made. A duplicate of this written
statement, along with a reconciliation of all the statements for
the calendar year in the form the commissioner prescribes, must
be furnished to the commissioner on or before February 28 of the
year following the calendar year for which the return was made.
Sec. 18. Minnesota Statutes 1992, section 289A.12,
subdivision 14, is amended to read:
Subd. 14. [REGULATED INVESTMENT COMPANIES; REPORTING
EXEMPT-INTEREST DIVIDENDS.] (a) a regulated investment company
paying $10 or more in exempt-interest dividends to an individual
who is a resident of Minnesota must make a return indicating the
amount of the exempt-interest dividends, the name, address, and
social security number of the recipient, and any other
information that the commissioner specifies. A copy of The
return must be provided to the shareholder no later than 30 days
after the close of the taxable year. The copy of the return
provided to the shareholder must include a clear statement, in
the form prescribed by the commissioner, that the
exempt-interest dividends must be included in the computation of
Minnesota taxable income. The commissioner may by notice and
demand require the regulated investment company to file a copy
of the return with the commissioner.
(b) This subdivision applies to regulated investment
companies required to register under chapter 80A.
(c) For purposes of this subdivision, the following
definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest
dividends as defined in section 852(b)(5) of the Internal
Revenue Code of 1986, as amended through December 31, 1991, but
does not include the portion of exempt-interest dividends that
are not required to be added to federal taxable income under
section 290.01, subdivision 19a, clause (1)(ii).
(2) "Regulated investment company" means regulated
investment company as defined in section 851(a) of the Internal
Revenue Code of 1986, as amended through December 31, 1991, or a
fund of the regulated investment company as defined in section
851(h) of the Internal Revenue Code of 1986, as amended through
December 31, 1991.
Sec. 19. [289A.13] [RETURNS; WHERE FILED.]
Returns required to be filed under this chapter must be
filed at the commissioner's office in St. Paul, or such other
place as the commissioner may designate.
Sec. 20. Minnesota Statutes 1992, section 289A.18,
subdivision 1, is amended to read:
Subdivision 1. [INDIVIDUAL INCOME, FIDUCIARY INCOME,
CORPORATE FRANCHISE, AND ENTERTAINMENT TAXES; PARTNERSHIP AND S
CORPORATION RETURNS; INFORMATION RETURNS; MINING COMPANY
RETURNS.] The returns required to be made under sections 289A.08
and 289A.12 must be filed at the following times:
(1) returns made on the basis of the calendar year must be
filed on April 15 following the close of the calendar year,
except that returns of corporations must be filed on March 15
following the close of the calendar year;
(2) returns made on the basis of the fiscal year must be
filed on the 15th day of the fourth month following the close of
the fiscal year, except that returns of corporations must be
filed on the 15th day of the third month following the close of
the fiscal year;
(3) returns for a fractional part of a year must be filed
on the 15th day of the fourth month following the end of the
month in which falls the last day of the period for which the
return is made, except that the returns of corporations must be
filed on the 15th day of the third month following the end of
the month in which falls the last day of the period for which
the return is made;
(4) in the case of a final return of a decedent for a
fractional part of a year, the return must be filed on the 15th
day of the fourth month following the close of the 12-month
period that began with the first day of that fractional part of
a year;
(5) in the case of the return of a cooperative association,
returns must be filed on or before the 15th day of the ninth
month following the close of the taxable year;
(6) if a corporation has been divested from a unitary group
and files a return for a fractional part of a year in which it
was a member of a unitary business that files a combined report
under section 290.34, subdivision 2, the divested corporation's
return must be filed on the 15th day of the third month
following the close of the common accounting period that
includes the fractional year;
(7) returns of entertainment entities must be filed on
April 15 following the close of the calendar year;
(8) returns required to be filed under section 289A.08,
subdivision 4, must be filed on the 15th day of the fifth month
following the close of the taxable year; and
(9) returns of mining companies must be filed on May 1
following the close of the calendar year; and
(10) returns required to be filed with the commissioner
under section 289A.12, subdivision 2, 4 to 10, or 14, must be
filed within 30 days after being demanded by the commissioner.
Sec. 21. Minnesota Statutes 1992, section 289A.18,
subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use
tax returns must be filed on or before the 20th day of the month
following the close of the preceding reporting period, except
that annual use tax returns provided for under section 289A.11,
subdivision 1, must be filed by April 15 following the close of
the calendar year, and annual sales tax returns must be filed by
February 5 following the close of the calendar year. In
addition, on or before June 20 of a year, a retailer who has a
May liability of $1,500 or more must file a return with the
commissioner for one-half of the estimated June liability, in
addition to filing a return for the May liability. On or before
August 20 of a year, the retailer must file a return showing the
actual June liability.
(b) Returns filed by retailers required to remit
liabilities by means of funds transfer under section 289A.20,
subdivision 4, paragraph (d), are due on or before the 25th day
of the month following the close of the preceding reporting
period. Returns filed under the second sentence of paragraph
(a) by a retailer required to remit by means of funds transfer
are due on June 25, and on or before August 25 of a year, the
retailer must file a return showing the actual June liability.
Sec. 22. Minnesota Statutes 1992, section 289A.25,
subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENTS TO PAY.] An individual,
trust, or partnership must, when prescribed in subdivision 3,
paragraph (b), make payments of estimated tax. The term
"estimated tax" means the amount the individual taxpayer
estimates is the sum of the taxes imposed by chapter 290 for the
taxable year. If the individual is an infant or incompetent
person, the payments must be made by the individual's guardian.
If joint payments on estimated tax are made but a joint return
is not made for the taxable year, the estimated tax for that
year may be treated as the estimated tax of either the husband
or the wife or may be divided between them.
Notwithstanding the provisions of this section, no payments
of estimated tax are required if the estimated tax, as defined
in this subdivision, less the credits allowed against the tax,
is less than $500.
Sec. 23. Minnesota Statutes 1992, section 289A.25,
subdivision 2, is amended to read:
Subd. 2. [ADDITIONS TO TAX FOR UNDERPAYMENT.] (a) In the
case of any underpayment of estimated tax by an individual a
taxpayer, except as provided in subdivision 6 or 7, there must
be added to and become a part of the taxes imposed by chapter
290, for the taxable year an amount determined at the rate
specified in section 270.75 upon the amount of the underpayment
for the period of the underpayment.
(b) For purposes of paragraph (a), the amount of
underpayment shall be the excess of
(1) the amount of the installment required to be paid, over
(2) the amount, if any, of the installment paid on or
before the last day prescribed for the payment.
Sec. 24. Minnesota Statutes 1992, section 289A.25,
subdivision 5a, is amended to read:
Subd. 5a. [MODIFICATION TO INDIVIDUAL OR TRUST ESTIMATED
TAX REQUIREMENTS.] (a) If an individual or trust meets the
requirements of section 6654(d)(1)(C) to (F), of the Internal
Revenue Code, the amount of the required installments under
subdivision 5 must be computed as provided in this subdivision.
In determining the amount of the required installment, the
following requirement is substituted for subdivision 5, clauses
(2) and (3): "(2) the greater of (i) 100 percent of the tax
shown on the return of the individual for the preceding taxable
year, or (ii) 90 percent of the tax shown on the return for the
current year, determined by taking into account the adjustments
under section 6654(d)(1)(D) of the Internal Revenue Code."
(b) Paragraph (a) does not apply for purposes of
determining the amount of the first required installment in any
taxable year under subdivision 3, paragraph (b). A reduction in
an installment under this paragraph must be recaptured by
increasing the amount of the first succeeding required
installment by the amount of the reduction, unless the
individual meets the requirements of paragraph (c).
(c) This subdivision does not apply to any required
installment if the individual qualifies for an annualization
exception as computed under section 6654(d)(1)(C)(iv) of the
Internal Revenue Code. A reduction in an installment under this
paragraph must be recaptured by increasing the amount of the
first succeeding required installment (with respect to which the
requirements of section 6654(d)(1)(C)(iv) are not met) by the
amount of the reduction.
(d) All references to the Internal Revenue Code in this
section are to the Internal Revenue Code of 1986, as amended
through December 31, 1991. For purposes of meeting the
requirements of or making adjustments under section 6654 of the
Internal Revenue Code in this subdivision:
(1) (i) for an individual who is not a Minnesota resident
for the entire year, the terms "adjusted gross income" and
"modified adjusted gross income" mean the Minnesota share of
that income apportioned to Minnesota under section 290.06,
subdivision 2c, paragraph (e); and, or
(ii) for a trust the terms "adjusted gross income" and
"modified adjusted gross income" mean the income assigned to
Minnesota under section 290.17; and
(2) "tax" means the sum of the taxes imposed by chapter 290
for a taxable year.
(e) This subdivision does not apply to individuals who
compute and pay estimated taxes under subdivision 10.
(f) This subdivision does not apply to any taxable year
beginning after December 31, 1996.
(g) In the case of a trust to which this subdivision
applies, section 289A.25, subdivision 5, clause (3), item (i),
shall be applied by substituting "ending before the date one
month before the due date for the installment" for "ending
before the month in which the installment is required to be
paid."
Sec. 25. Minnesota Statutes 1992, section 289A.25,
subdivision 6, is amended to read:
Subd. 6. [EXCEPTION TO ADDITION TO TAX.] No addition to
the tax shall be imposed under this section for any taxable year
if:
(1) the individual taxpayer did not have liability for tax
for the preceding taxable year,
(2) the preceding taxable year was a taxable year of 12
months, and
(3) the individual or trust was a resident of Minnesota
throughout the preceding taxable year.
Sec. 26. Minnesota Statutes 1992, section 289A.25,
subdivision 8, is amended to read:
Subd. 8. [APPLICATION OF SECTION; TAX WITHHELD ON WAGES.]
For purposes of this section, the estimated tax must be computed
without reduction for the amount that the individual taxpayer
estimates as the individual's taxpayer's credit under section
290.92, subdivision 12 (relating to tax withheld at source on
wages), and any other refundable credits allowed against income
tax liability, and the amount of those credits for the taxable
year is considered a payment of estimated tax, and an equal part
of those amounts is considered paid on the installment date,
determined under subdivision 3, paragraph (b), for that taxable
year, unless the taxpayer establishes the dates on which the
amounts were actually withheld, in which case the amounts so
withheld are considered payments of estimated tax on the dates
on which the amounts were actually withheld.
Sec. 27. Minnesota Statutes 1992, section 289A.25,
subdivision 10, is amended to read:
Subd. 10. [SPECIAL RULE FOR FARMERS AND FISHERMEN.] For
purposes of this section, if an individual is a farmer or
fisherman as defined in section 6654(f)(2) 6654(i)(2) of the
Internal Revenue Code of 1986, as amended through December
31, 1991 1992, for a taxable year, only one installment is
required for the taxable year, the due date of which is January
15 of the following taxable year, the amount of which is equal
to the required annual payment determined under subdivision 5 by
substituting "66-2/3 percent" for "90 percent," and subdivision
9 shall be applied by substituting "March 1" for "January 31,"
and by treating the required installment described as the fourth
required installment.
Sec. 28. Minnesota Statutes 1992, section 289A.25,
subdivision 12, is amended to read:
Subd. 12. [TRUSTS AND ESTATES.] The provisions of this
section do not apply to an estate or trust.
Sec. 29. Minnesota Statutes 1992, section 289A.26,
subdivision 1, is amended to read:
Subdivision 1. [MINIMUM LIABILITY.] A corporation,
partnership, or trust subject to taxation under chapter 290
(excluding section 290.92) or an entity subject to taxation
under section 290.05, subdivision 3, must make payment of
estimated tax for the taxable year if its tax liability so
computed can reasonably be expected to exceed $500, or in
accordance with rules prescribed by the commissioner for an
affiliated group of corporations electing to file one return as
permitted under section 289A.08, subdivision 3.
Sec. 30. Minnesota Statutes 1992, section 289A.26,
subdivision 4, is amended to read:
Subd. 4. [UNDERPAYMENT OF ESTIMATED TAX.] If there is an
underpayment of estimated tax by a corporation, partnership, or
trust, there shall be added to the tax for the taxable year an
amount determined at the rate in section 270.75 on the amount of
the underpayment, determined under subdivision 5, for the period
of the underpayment determined under subdivision 6. This
subdivision does not apply in the first taxable year that a
corporation is subject to the tax imposed under section 290.02.
Sec. 31. Minnesota Statutes 1992, section 289A.26,
subdivision 6, is amended to read:
Subd. 6. [PERIOD OF UNDERPAYMENT.] The period of the
underpayment runs from the date the installment was required to
be paid to the earlier of the following dates:
(1) the 15th day of the third month following the close of
the taxable year for corporations, the 15th day of the fourth
month following the close of the taxable year for partnerships
or trusts, and the 15th day of the fifth month following the
close of the taxable year for entities subject to tax under
section 290.05, subdivision 3; or
(2) with respect to any part of the underpayment, the date
on which that part is paid. For purposes of this clause, a
payment of estimated tax shall be credited against unpaid
required installments in the order in which those installments
are required to be paid.
Sec. 32. Minnesota Statutes 1992, section 290A.04,
subdivision 1, is amended to read:
Subdivision 1. A refund shall be allowed each claimant in
the amount that property taxes payable or rent constituting
property taxes exceed the percentage of the household income of
the claimant specified in subdivision 2 or 2a in the year for
which the taxes were levied or in the year in which the rent was
paid as specified in subdivision 2 or 2a. If the amount of
property taxes payable or rent constituting property taxes is
equal to or less than the percentage of the household income of
the claimant specified in subdivision 2 or 2a in the year for
which the taxes were levied or in the year in which the rent was
paid, the claimant shall not be eligible for a state refund
pursuant to this section.
Sec. 33. Minnesota Statutes 1992, section 290A.04,
subdivision 2h, is amended to read:
Subd. 2h. (a) If the gross property taxes payable on a
homestead increase more than 12 percent over the net property
taxes payable in the prior year on the same property that is
owned and occupied by the same owner in on January 2 of both
years, and the amount of that increase is $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 of the increase over
the greater of 12 percent of the prior year's net property taxes
payable or $80 for taxes payable in 1993, and 75 percent of the
amount of the increase over the greater of 12 percent of the
prior year's net property taxes payable or $100 for taxes
payable in 1994. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to
improvements made to the homestead after the assessment date for
the prior year's taxes.
In the case of refunds for property taxes payable in 1993
and thereafter, the maximum refund allowed under this
subdivision is $1,500.
(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 under sections 273.13,
subdivisions 22 and 23; 273.135; 273.1391; and 273.42,
subdivision 2, and any other state paid property tax credits and
after the deduction of tax minus 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, 1993, 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 for taxes payable
in 1994 exceed $5,500,000, the commissioner shall increase the
$100 amount of tax increase which must occur before a taxpayer
qualifies for a refund, and increase by an equal amount the $100
threshold used in determining the amount of the refund, so that
the estimated total refund claims do not exceed $5,500,000.
The determinations of the revised thresholds by the
commissioner are not rules subject to chapter 14.
Sec. 34. Minnesota Statutes 1992, section 296.14,
subdivision 2, is amended to read:
Subd. 2. [CREDIT OR REFUND OF TAX PAID.] The commissioner
shall allow the distributor credit or refund of the tax paid on
gasoline and special fuel:
(1) exported or sold for export from the state, other than
in the supply tank of a motor vehicle or of an aircraft;
(2) sold to the United States government to be used
exclusively in performing its governmental functions and
activities or to any "cost plus a fixed fee" contractor employed
by the United States government on any national defense project;
(3) sold to another licensed distributor;
(4) destroyed by accident while in the possession of the
distributor;
(5) in error;
(6) sold for storage in an on-farm bulk storage tank, if
the tax was not collected on the sale;
(7) in such other cases as the commissioner may permit, not
inconsistent with the provisions of this chapter and other laws
relating to the gasoline and special fuel excise taxes.
Sec. 35. [297.032] [CLAIMS FOR REFUNDS.]
Subdivision 1. [GENERAL RIGHT TO REFUND.] If cigarettes
upon which the tax imposed by sections 297.01 to 297.13 has been
reported and paid, are shipped or transported by the distributor
to consumers to be consumed outside the state, or to retailers
or subjobbers outside the state to be sold by those retailers,
or subjobbers outside the state, or are returned to the
manufacturer by the distributor or destroyed by the distributor,
refund of such tax or credit may be made to the distributor.
Any overpayment of the tax imposed under section 297.02 may be
made to the taxpayer. The commissioner of finance shall pay the
refund out of the state treasury. The refunds are apportioned
to the same accounts and funds in the state treasury to which
the tax payments were deposited, except no refunds may be
apportioned to the general obligation special tax bond debt
service account.
An amount sufficient to pay the refunds authorized under
this section is appropriated from the respective funds and
accounts of the state treasury.
Subd. 2. [TIME LIMIT; GENERALLY.] 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 in full, whichever
period expires later.
Sec. 36. [REPEALER.]
Minnesota Statutes 1992, sections 60A.13, subdivision 1a;
and 289A.08, subdivisions 9 and 12, are repealed.
Sec. 37. [EFFECTIVE DATE.]
Section 1 is effective for property taxes payable in 1993.
Sections 2 to 8, 10, 19, 27, 32, 34, and 36 are effective
the day following final enactment.
Sections 9, 11 to 18, and 20 are effective for tax returns
due after December 31, 1992.
Section 21 is effective for tax returns due for the
calendar year 1993, and thereafter.
Sections 22 to 26 and 28 to 31 are effective for tax years
beginning after December 31, 1992.
Section 33 is effective beginning with refunds based on
gross property taxes payable in 1989, and thereafter.
Section 35 is effective for overpayments of taxes or other
payments first becoming due on or after August 1, 1993, and for
claims for refund arising before that date, the running of the
time in which to make a claim will commence August 1, 1993.
ARTICLE 3
PROPERTY TAXES TECHNICAL
Section 1. Minnesota Statutes 1992, section 82B.035, is
amended by adding a subdivision to read:
Subd. 4. [DEPARTMENT OF REVENUE.] This chapter does not
require persons employed by, or under contract to, the
department of revenue to be licensed in order to perform,
conduct, or assist in, an appraisal done within the scope of
their employment or contract duties.
Sec. 2. Minnesota Statutes 1992, section 270.071,
subdivision 2, is amended to read:
Subd. 2. [AIR COMMERCE.] (a) "Air commerce" means the
transportation by aircraft of persons or property for hire in
interstate, intrastate, or international transportation on
regularly scheduled flights or on intermittent or irregularly
timed flights by airline companies operating under authorization
from the United States Department of Transportation.
(b) "Air commerce" also includes but is not limited to an
intermittent or irregularly timed flight, a flight arranged at
the convenience of an airline and the person contracting for the
transportation, or a charter flight. It includes an any airline
company making three or more flights in or out of Minnesota
during a calendar year.
(c) "Air commerce" does not include casual transportation
for hire by aircraft commonly owned and used for private
airflight purposes if the person furnishing the transportation
does not hold out to be engaged regularly in transportation for
hire.
Sec. 3. Minnesota Statutes 1992, section 270.072,
subdivision 2, is amended to read:
Subd. 2. [ASSESSMENT OF FLIGHT PROPERTY.] The flight
property of all air carriers airline companies operating in
Minnesota under a certificate of public convenience and
necessity or under authorization from the United States
Department of Transportation shall be assessed annually by the
commissioner in the manner prescribed by sections 270.071 to
270.079. Aircraft with a gross weight of less than 30,000
pounds and used on intermittent or irregularly timed flights
shall be excluded from the provisions of sections 270.071 to
270.079.
Sec. 4. Minnesota Statutes 1992, section 270.41, is
amended to read:
270.41 [BOARD OF ASSESSORS.]
(a) Subdivision 1. [CREATION; PURPOSE; POWERS.] A board of
assessors is hereby created. The board shall be for the purpose
of establishing, conducting, reviewing, supervising,
coordinating or approving establish, conduct, review, supervise,
coordinate, and approve courses in assessment practices, and
establishing establish criteria for determining assessor's
qualifications. The board shall also have authority and
responsibility to consider other matters relating to assessment
administration brought before it by the commissioner of
revenue. The board may grant, renew, suspend, or revoke an
assessor's license.
Subd. 2. [MEMBERS.] The board shall consist of nine
members, who shall be appointed by the commissioner of revenue,
in the manner provided herein. The members shall include:
1. Two (1) two from the department of revenue,;
2. Two (2) two county assessors,;
3. Two (3) two assessors who are not county assessors, one
of whom shall be a township assessor, and;
4. One (4) one from the private appraisal field holding a
professional appraisal designation,; and
5. Two (5) two public members as defined by section 214.02.
The appointment provided in 2 and 3 clauses (2) and (3) may
be made from two lists of not less than three names each, one
submitted to the commissioner of revenue by the Minnesota
association of assessing officers or its successor organization
containing recommendations for the appointment of appointees
described in 2 clause (2), and one by the Minnesota association
of assessors, inc. or its successor organization containing
recommendations for the appointees described in 3 clause (3).
The lists must be submitted 30 days before the commencement of
the term. In the case of a vacancy, a new list shall be
furnished to the commissioner by the respective organization
immediately. A member of the board who shall is no longer be
engaged in the capacity listed above shall automatically be is
disqualified from membership in the board.
The board shall annually elect a chair and a secretary of
the board.
(b) Subd. 3. [LICENSES; REFUSAL OR REVOCATION.] The board
may refuse to grant or renew, or may suspend or revoke, a
license of an applicant or licensee for any of the following
causes or acts:
(1) failure to complete required training;
(2) inefficiency or neglect of duty;
(3) "unprofessional conduct" which means knowingly
neglecting to perform a duty required by law, or violation of
the laws of this state relating to the assessment of property or
unlawfully exempting property or knowingly and intentionally
listing property on the tax list at substantially less than its
market value or the level required by law in order to gain favor
or benefit, or knowingly and intentionally misclassifying
property in order to gain favor or benefit; or
(4) conviction of a crime involving moral turpitude; or
(5) any other cause or act that in the board's opinion
warrants a refusal to issue or suspension or revocation of a
license.
(c) Subd. 4. [RULES.] The board of assessors may adopt
rules under chapter 14, defining or interpreting grounds for
refusing to grant or renew, and for suspending or revoking a
license under this section. An action of the board of assessors
in refusing to grant or renew a license or in suspending or
revoking a license is subject to review in accordance with
chapter 14.
Subd. 5. [PROHIBITED ACTIVITY.] An assessor, deputy
assessor, assistant assessor, appraiser, or other person
employed by an assessment jurisdiction or contracting with an
assessment jurisdiction for the purpose of valuing or
classifying property for property tax purposes is prohibited
from making appraisals or analyses, accepting an appraisal
assignment, or preparing an appraisal report as defined in
section 82B.02, subdivisions 2 to 5, on any property within the
assessment jurisdiction where the individual is employed or
performing the duties of the assessor under contract. Violation
of this prohibition shall result in immediate revocation of the
individual's license to assess property for property tax
purposes. This prohibition must not be construed to prohibit an
individual from carrying out any duties required for the proper
assessment of property for property tax purposes.
Sec. 5. Minnesota Statutes 1992, section 271.06,
subdivision 1, is amended to read:
Subdivision 1. [MANNER.] Except as otherwise provided in
section 270.07, subdivision 1, paragraph (a), or any other law,
an appeal to the tax court may be taken, in the manner herein
provided, from any official order of the commissioner of revenue
respecting any tax, fee, or assessment, or any matter pertaining
thereto, including the imposition of interest and penalty, or
any matter over which the court is granted jurisdiction under
section 271.01, subdivision 5, by any person directly interested
therein or affected thereby, or by any political subdivision of
the state, directly or indirectly, interested therein or
affected thereby, or by the attorney general in behalf of the
state, or by any resident taxpayer of the state in behalf of the
state in case the attorney general, upon request, shall refuse
to appeal. Notwithstanding subdivision 2, when an appeal is
taken to the tax court in any case dealing with property
valuation, assessment, or taxation for property tax purposes,
the provisions of section 274.19, subdivisions 4 and 5, section
277.011, and chapter 278 shall apply as if the appeal had been
taken to the district court.
Sec. 6. Minnesota Statutes 1992, section 271.09,
subdivision 3, is amended to read:
Subd. 3. [TAX DUE OBLIGATION.] At the time of the taking
of an appeal to the tax court, the taxpayer shall pay at least
the amount of the tax or other obligation conceded by the
taxpayer to be due, if any, when it becomes due provided that
this shall not relieve the taxpayer from complying with any
other requirements of law. The provisions of sections 274.19,
subdivision 5, 277.011, subdivision 3, and 278.03 shall govern
the filing with the tax court of an appeal dealing with property
valuation, assessment, or taxation for property tax purposes, as
if the appeal had been taken to the district court.
Sec. 7. Minnesota Statutes 1992, 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, including
storage sheds, decks, and similar removable improvements
constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section
274.19 273.125, subdivision 8, paragraph (f); and
(f) flight property as defined in section 270.071.
(9) Personal property used primarily for the abatement and
control of air, water, or land pollution to the extent that it
is so used, and real property which is used primarily for
abatement and control of air, water, or land pollution as part
of an agricultural operation, as a part of a centralized
treatment and recovery facility operating under a permit issued
by the Minnesota pollution control agency pursuant to chapters
115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730,
and 7045.0020 to 7045.1260, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals,
oils, chemicals, water, sludges, or inorganic materials from
hazardous industrial wastes, 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 real property or 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: (i) land described in section 103G.005,
subdivision 18; (ii) 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; or (iii) land in a wetland preservation area
under sections 103F.612 to 103F.616. "Wetlands" under items (i)
and (ii) include adjacent land which is not suitable for
agricultural purposes due to the presence of the wetlands, but
do 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
103G.535.
(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 clause (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
have 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 individuals,
couples, or families. (ii) It has the purpose of reuniting
families and enabling parents or individuals 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
three 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 owned and operated or under lease from a unit
of government or governmental agency under a property
disposition program and operated by one or more organizations
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.
(20) Real and personal property, including leasehold or
other personal property interests, owned and operated by a
corporation if more than 50 percent of the total voting power of
the stock of the corporation is owned collectively by: (i) the
board of regents of the University of Minnesota, (ii) the
University of Minnesota Foundation, an organization exempt from
federal income taxation under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended through December 31, 1990, and
(iii) a corporation organized under chapter 317A, which by its
articles of incorporation is prohibited from providing pecuniary
gain to any person or entity other than the regents of the
University of Minnesota; which property is used primarily to
manage or provide goods, services, or facilities utilizing or
relating to large-scale advanced scientific computing resources
to the regents of the University of Minnesota and others.
(21) Wind energy conversion systems, as defined in section
216C.06, subdivision 12, installed after January 1, 1991, and
used as an electric power source.
(22) Containment tanks, cache basins, and that portion of
the structure needed for the containment facility used to
confine agricultural chemicals as defined in section 18D.01,
subdivision 3, as required by the commissioner of agriculture
under chapter 18B or 18C.
(23) Photovoltaic devices, as defined in section 216C.06,
subdivision 13, installed after January 1, 1992, and used to
produce or store electric power.
(24) 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 for an ice arena or ice rink, and used
primarily for youth and high school programs.
(25) Manure pits and appurtenances, which may include
slatted floors and pipes, installed or operated in accordance
with a permit, order, or certificate of compliance issued by the
Minnesota pollution control agency. The exemption shall
continue for as long as the permit, order, or certificate issued
by the Minnesota pollution control agency remains in effect.
Sec. 8. Minnesota Statutes 1992, section 272.02,
subdivision 4, is amended to read:
Subd. 4. [CONVERSION TO EXEMPT OR TAXABLE USES.] (a) Any
property exempt from taxation on January 2 of any year which,
due to sale or other reason, loses its exemption prior to July 1
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 July
1, the intended use of the property, determined by the county
assessor, based upon all relevant facts.
(b) Property subject to tax on January 2 that is acquired
by a governmental entity, church, or educational institution
before July 1 of the year is exempt for that assessment year if
(1) the property is to be used for an exempt purpose under
subdivision 1, clauses (1) to (7), and (2) the property is not
subject to the filing requirement under section 272.025.
(c) Property which forfeits to the state for nonpayment of
real estate taxes on or before December 31 in an assessment
year, shall be removed from the assessment rolls for that
assessment year. Forfeited property that is repurchased, or
sold at a public or private sale, on or before December 31 of an
assessment year shall be placed on the assessment rolls for that
year's assessment.
Sec. 9. Minnesota Statutes 1992, section 272.025,
subdivision 1, is amended to read:
Subdivision 1. (a) Except as in the case of churches and
houses of worship, property solely used for educational purposes
by academies, colleges, universities or seminaries of learning,
property owned by the state of Minnesota or any political
subdivision thereof, and property exempt from taxation under
section 272.02, subdivision 1, clauses (8), (9), (12), (14),
(17), (19), and (21) to (25), and at the times provided in
subdivision 3, a taxpayer claiming an exemption from taxation on
property described in section 272.02, subdivision 1, clauses (1)
to (7), (10), (11), (13), (15), (16), (18), and (20), 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.
In the case of (b) A taxpayer claiming an exemption from
taxation on property described in section 272.02, subdivision 1,
clause (9), the taxpayer 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.
(c) 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.
(d) The commissioner of revenue shall prescribe the form
and contents of the statement of exemption.
Sec. 10. Minnesota Statutes 1992, section 272.12, is
amended to read:
272.12 [CONVEYANCES, TAXES PAID BEFORE RECORDING.]
When a deed or other instrument conveying land, or a plat
of any town site or addition thereto, or a survey required
pursuant to section 508.47, is presented to the county auditor
for transfer, the auditor shall ascertain from the records if
there be taxes delinquent upon the land described therein, or if
it has been sold for taxes. An assignment of a sheriff's or
referee's certificate of sale, when the certificate of sale
describes real estate, and certificates of redemption from
mortgage or lien foreclosure sales, when the certificate of
redemption encompasses real estate and is issued to a junior
creditor, are considered instruments conveying land for the
purposes of this section and section 272.121. If there are
taxes delinquent, the auditor shall certify to the same; and
upon payment of such taxes, or in case no taxes are delinquent,
shall transfer the land upon the books of the auditor's office,
and note upon the instrument, over official signature, the
words, "no delinquent taxes and transfer entered," or, if the
land described has been sold or assigned to an actual purchaser
for taxes, the words "paid by sale of land described within;"
and, unless such statement is made upon such instrument, the
county recorder or the registrar of titles shall refuse to
receive or record the same; provided, that sheriff's or
referees' certificates of sale on execution or foreclosure of a
lien or mortgage, certificates of redemption from mortgage or
lien foreclosure sales issued to the redeeming mortgagor or
lienee, deeds of distribution made by a personal representative
in probate proceedings, decrees and judgments, receivers
receipts, patents, and copies of town or statutory city plats,
in case the original plat filed in the office of the county
recorder has been lost or destroyed, and the instruments
releasing, removing and discharging reversionary and forfeiture
provisions affecting title to land and instruments releasing,
removing or discharging easement rights in land or building or
other restrictions, may be recorded without such certificate;
and, provided that instruments conveying land and, as
appurtenant thereto an easement over adjacent tract or tracts of
land, may be recorded without such certificate as to the land
covered by such easement; and provided further, that any
instrument granting an easement made in favor of any public
utility or pipe line for conveying gas, liquids or solids in
suspension, in the nature of a right of way over, along, across
or under a tract of land may be recorded without such
certificate as to the land covered by such easement. Any
instrument amending or restating the declarations, bylaws, or
other enabling documents governing homeowners associations of
condominiums, townhouses, and other planned unit developments
may be recorded without the auditor's certificate.
A deed of distribution made by a personal representative in
a probate proceeding, a decree, or a judgment that conveys land
shall be presented to the county auditor, who shall transfer the
land upon the books of the auditor's office and note upon the
instrument, over official signature, the words, "transfer
entered", and the instrument may then be recorded. A decree or
judgment that affects title to land but does not convey land may
be recorded without presentation to the auditor.
A violation of this section by the county recorder or the
registrar of titles shall be a gross misdemeanor, and, in
addition to the punishment therefor, the recorder or registrar
shall be liable to the grantee of any instrument so recorded for
the amount of any damages sustained.
When, as a condition to permitting the recording of deed or
other instrument affecting the title to real estate previously
forfeited to the state under the provisions of sections 281.16
to 281.27, county officials, after such real estate has been
purchased or repurchased, have required the payment of taxes
erroneously assumed to have accrued against such real estate
after forfeiture and before the date of purchase or repurchase,
the sum required to be so paid shall be refunded to the persons
entitled thereto out of moneys in the funds in which the sum so
paid was placed. Delinquent taxes are those taxes deemed
delinquent under section 279.02.
Sec. 11. Minnesota Statutes 1992, section 273.03,
subdivision 2, is amended to read:
Subd. 2. Any county in this state which employs a county
assessor who maintains a unit card ledger system or similar
system of real estate and the market value and net tax
capacities ascertained by the assessor affecting such real
estate, and which county has established an electronic data
processing system or similar system to perform the processing of
assessment and tax accounting, may discontinue the preparation
of assessment books as provided in subdivision 1. The election
to discontinue the preparation of assessment books as defined in
subdivision 1 shall be made by the county auditor with the
written approval of the commissioner of revenue.
Sec. 12. Minnesota Statutes 1992, section 273.061,
subdivision 8, is amended to read:
Subd. 8. [POWERS AND DUTIES.] The county assessor shall
have the following powers and duties:
(1) To call upon and confer with the township and city
assessors in the county, and advise and give them the necessary
instructions and directions as to their duties under the laws of
this state, to the end that a uniform assessment of all real
property in the county will be attained.
(2) To assist and instruct the local assessors in the
preparation and proper use of land maps and record cards, in the
property classification of real and personal property, and in
the determination of proper standards of value.
(3) To keep the local assessors in the county advised of
all changes in assessment laws and all instructions which the
assessor receives from the commissioner of revenue relating to
their duties.
(4) To have authority to require the attendance of groups
of local assessors at sectional meetings called by the assessor
for the purpose of giving them further assistance and
instruction as to their duties.
(5) To immediately commence the preparation of a large
scale topographical land map of the county, in such form as may
be prescribed by the commissioner of revenue, showing thereon
the location of all railroads, highways and roads, bridges,
rivers and lakes, swamp areas, wooded tracts, stony ridges and
other features which might affect the value of the land.
Appropriate symbols shall be used to indicate the best, the
fair, and the poor land of the county. For use in connection
with the topographical land map, the assessor shall prepare and
keep available in the assessor's office tables showing fair
average minimum and maximum market values per acre of
cultivated, meadow, pasture, cutover, timber and waste lands of
each township. The assessor shall keep the map and tables
available in the office for the guidance of town assessors,
boards of review, and the county board of equalization.
(6) To also prepare and keep available in the office for
the guidance of town assessors, boards of review and the county
board of equalization, a land valuation map of the county, in
such form as may be prescribed by the commissioner of revenue.
This map, which shall include the bordering tier of townships of
each county adjoining, shall show the average market value per
acre, both with and without improvements, as finally equalized
in the last assessment of real estate, of all land in each town
or unorganized township which lies outside the corporate limits
of cities.
(7) To regularly examine all conveyances of land outside
the corporate limits of cities of the first and second class,
filed with the county recorder of the county, and keep a file,
by descriptions, of the considerations shown thereon. From the
information obtained by comparing the considerations shown with
the market values assessed, the assessor shall make
recommendations to the county board of equalization of necessary
changes in individual assessments or aggregate valuations.
(8) To prepare annually and keep available in the
assessor's office for the guidance of boards of review and the
county board of equalization, a table showing the market value
per capita of all personal property in each assessment district
in the county as finally equalized in the last previous
assessment of personal property. For the guidance of the county
board of equalization, the assessor shall also add to the table
the market value per capita of all personal property of each
assessment district for the current year as equalized by the
local board of review.
(9) To become familiar with the values of the different
items of personal property so as to be in a position when called
upon to advise the boards of review and the county board of
equalization concerning property, market values thereof.
(10) (9) While the county board of equalization is in
session, to give it every possible assistance to enable it to
perform its duties. The assessor shall furnish the board with
all necessary charts, tables, comparisons, and data which it
requires in its deliberations, and shall make whatever
investigations the board may desire.
(11) (10) At the request of either the board of county
commissioners or the commissioner of revenue, to investigate
applications for reductions of valuation and abatements and
settlements of taxes, examine the real or personal property
involved, and submit written reports and recommendations with
respect to the applications, in such form as may be prescribed
by the board of county commissioners and commissioner of revenue.
(12) (11) To make diligent search each year for real and
personal property which has been omitted from assessment in the
county, and report all such omissions to the county auditor.
(13) (12) To regularly confer with county assessors in all
adjacent counties about the assessment of property in order to
uniformly assess and equalize the value of similar properties
and classes of property located in adjacent counties. The
conference shall emphasize the assessment of agricultural and
commercial and industrial property or other properties that may
have an inadequate number of sales in a single county.
(14) (13) To render such other services pertaining to the
assessment of real and personal property in the county as are
not inconsistent with the duties set forth in this section, and
as may be required by the board of county commissioners or by
the commissioner of revenue.
Sec. 13. Minnesota Statutes 1992, section 273.124,
subdivision 9, is amended to read:
Subd. 9. [HOMESTEAD ESTABLISHED AFTER ASSESSMENT DATE.]
Any property that was not used for the purpose of a homestead on
the assessment date, but which was used for the purpose of a
homestead by June 1 of a year, constitutes class 1 or class 2a.
Any taxpayer meeting the requirements of this subdivision
must notify the county assessor, or the assessor who has the
powers of the county assessor under section 273.063, in writing,
prior to June December 15 of the year of occupancy in order to
qualify under this subdivision. The assessor must not deny full
homestead treatment to a property that is partially homesteaded
on January 2 but occupied for the purpose of a full homestead by
June 1 of a year.
The county assessor and the county auditor may make the
necessary changes on their assessment and tax records to provide
for proper homestead classification as provided in this
subdivision.
If homestead classification has not been requested as of
December 15, the assessor will classify the property as
nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property
qualifying under this subdivision, which has not been accorded
the benefits of this subdivision, may be entitled to receive
homestead classification by proper application as provided in
section 375.192.
The county assessor shall publish in a newspaper of general
circulation within the county no later than June 1 of each year
a notice informing the public of the requirement to file an
application for homestead prior to June December 15.
Sec. 14. Minnesota Statutes 1992, section 273.124,
subdivision 13, is amended to read:
Subd. 13. [HOMESTEAD APPLICATION.] On or before January 2,
1993, each county assessor shall mail a homestead application to
the owner of each parcel of property within the county which was
classified as homestead for the 1992 assessment year. The
format and contents of a uniform homestead application shall be
prescribed by the commissioner of revenue. The commissioner
shall consult with the chairs of the house and senate tax
committees on the contents of the homestead application form.
The application must clearly inform the taxpayer that this
application must be signed by all owners of who occupy the
property or by the qualifying relative and returned to the
county assessor in order for the property to continue receiving
homestead treatment. The envelope containing the homestead
application shall clearly identify its contents and alert the
taxpayer of its necessary immediate response.
Every four years after the initial homestead application
has been filed under this subdivision, a county shall mail a
homestead application to the owner of each parcel of property to
verify the continued eligibility for homestead status for all
properties classified as homestead within the county in the
prior year's assessment. The homestead application and
procedures shall be done in the same manner as contained in this
subdivision for the 1993 homestead application.
On the homestead application each owner shall disclose the
location of any other residential property in the state in which
the owner holds full or partial ownership and for which
homestead status has been granted or has been applied for at the
time of the application. Each owner must also disclose the name
and social security number of any relative occupying a property
qualifying as a homestead under subdivision 1, paragraph (c).
Failure to disclose the information required under this
paragraph may result in the imposition of the penalty provided
under this subdivision.
Every property owner applying for homestead classification
must furnish to the county assessor the social security number
of each person occupant who is listed as an owner of the
property listed on the homestead application, and the name and
address of each owner who does not occupy the property. If the
social security number is not provided, the county assessor
shall classify the property as nonhomestead. The social
security numbers of the property owners are private data on
individuals as defined by section 13.02, subdivision 12, but,
notwithstanding that section, the private data may be disclosed
to the commissioner of revenue.
If residential real estate is occupied and used for
purposes of a homestead by a relative of the owner and qualifies
for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead
application must be filed with the assessor. The social
security number of each relative occupying the property and the
social security number of each owner who is related to an
occupant of the property shall be required on the homestead
application filed under this subdivision. If a different
relative of the owner subsequently occupies the property, the
owner of the property must notify the assessor within 30 days of
the change in occupancy. The social security number of a
relative occupying the property is private data on individuals
as defined by section 13.02, subdivision 12, but may be
disclosed to the commissioner of revenue.
The homestead application shall also notify the property
owners that the application filed under this section will not be
mailed annually and that if the property is granted homestead
status for the 1993 assessment, or any assessment year
thereafter, that same property shall remain classified as
homestead until the property is sold or transferred to another
person, or the owners or the relatives no longer use the
property as their homestead. Upon the sale or transfer of the
homestead property, a certificate of value must be timely filed
with the county auditor as provided under section 272.115.
Failure to notify the county assessor within 30 days that the
property has been sold, transferred, or that the owner or the
relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and
the property will lose its current homestead status.
If the initial homestead application is not returned within
30 days, the county will send a second application to the
present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the
property's classification. Beginning with assessment year 1993
for all properties, if a homestead application has not been
filed with the county by December 15, the assessor shall
classify the property as nonhomestead for the current assessment
year for taxes payable in the following year, provided that the
owner may be entitled to receive the homestead classification by
proper application under section 375.192.
At the request of the commissioner, each county must give
the commissioner a list that includes the name and social
security number of each property owner, or relative of a
property owner, applying for homestead classification under this
subdivision. The commissioner shall use the information
provided on the lists as appropriate under the law, including
for the detection of improper claims by owners, or relatives of
owners, under chapter 290A.
If, in comparing the lists supplied by the counties, the
commissioner finds that a property owner is claiming more than
one homestead, the commissioner shall notify the appropriate
counties. Within 90 days of the notification, the county
assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does
not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had
been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the taconite
homestead credit under section 273.135, and the supplemental
homestead credit under section 273.1391. The county auditor
shall send a notice to the owners of the affected property,
demanding reimbursement of the homestead benefits plus a penalty
equal to 100 percent of the homestead benefits. The property
owners may appeal the county's determination by filing a notice
of appeal with the Minnesota tax court within 60 days of the
date of the notice from the county.
If the amount of homestead benefits and penalty is not paid
within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of taxes and penalty to the
succeeding year's tax list to be collected as part of the
property taxes.
Any amount of homestead benefits recovered by the county
from the property owner shall be distributed to the county, city
or town, and school district where the property is located in
the same proportion that each taxing district's levy was to the
total of the three taxing districts' levy for the current year.
Any amount recovered attributable to taconite homestead credit
shall be transmitted to the St. Louis county auditor to be
deposited in the taconite property tax relief account. The
total amount of penalty collected must be deposited in the
county general fund.
If a property owner has applied for more than one homestead
and the county assessors cannot determine which property should
be classified as homestead, the county assessors will refer the
information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.
In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 15. [273.125] [ASSESSMENT OF MANUFACTURED HOMES.]
Subdivision 1. [VALUATION; NOTICE.] Subdivisions 1 to 7
apply to manufactured homes that are assessed under subdivision
8, paragraph (c). Each manufactured home must be valued each
year by the assessor and assessed with reference to its value on
January 2 of that year. Notice of the value must be mailed to
the person to be assessed at least ten days before the meeting
of the local board of review or equalization. The notice must
contain the amount of valuation in terms of market value, the
assessor's office address, and the date, place, and time set for
the meeting of the local board of review or equalization and the
county board of equalization.
Subd. 2. [RETURN ASSESSMENT BOOKS; SET TAX.] On or before
May 1, the assessor shall return to the county auditor the
assessment books relating to the assessment of manufactured
homes. After receiving the assessment books, the county auditor
shall determine the tax to be due by applying the rate of levy
of the preceding year and shall send a list of the taxes to the
county treasurer by May 30.
Subd. 3. [TAX STATEMENTS; PENALTIES; COLLECTIONS.] Not
later than July 15 in the year of assessment the county
treasurer shall mail to the taxpayer a statement of tax due on a
manufactured home. The taxes are due on the last day of August,
or 20 days after the postmark date on the envelope containing
the property tax statement, whichever is later, except that if
the tax exceeds $50, one-half of the amount due may be paid on
August 31, or 20 days after the postmark date on the envelope
containing the property tax statement, whichever is later, and
the remainder on November 15. Taxes remaining unpaid after the
due date are delinquent, and a penalty of eight percent must be
assessed and collected as part of the unpaid taxes.
Subd. 4. [PETITIONS OF GRIEVANCE.] A person who claims
that the person's manufactured home has been unfairly or
unequally assessed, or that the property has been assessed at a
valuation greater than its real or actual value, or that the tax
levied against it is illegal, in whole or in part, or has been
paid, or that the property is exempt from the tax so levied, may
have the validity of the claim, defense, or objection determined
in court. The determination must be made by the district court
of the county in which the tax is levied or by the tax court. A
person can request the determination by filing a petition for it
in the office of the court administrator of the district court
on or before September 1 of the year in which the tax becomes
payable. A petition for determination under this section may be
transferred by the district court to the tax court.
Subd. 5. [CONTINUING WITH PETITION.] The right to continue
prosecution of the petition is conditioned upon the payment of
the tax when due unless the court permits the petitioner to
continue without payment, or with a reduced payment, under
section 278.03, subdivision 2. Upon ten days' notice to the
county attorney and to the county auditor, given at least ten
days before the last day of August, the petitioner may apply to
the court for permission to continue prosecution of the petition
without payment or with a reduced payment.
Subd. 6. [CORRECTING TAX.] If the local board of review or
equalization or the county board of equalization changes the
assessor's valuation of a manufactured home, the change must be
sent to the county auditor. The auditor shall immediately
recompute the tax and advise the treasurer of the corrected
tax. If the property is entitled to homestead classification,
the auditor shall reduce the tax accordingly.
Subd. 7. [PERSONAL PROPERTY.] The tax assessed on
manufactured homes is a personal property tax. Laws relating to
assessment, review, and collection of personal property taxes
apply to this tax, if consistent with this section.
Subd. 8. [MANUFACTURED HOMES; SECTIONAL STRUCTURES.] (a)
In this section, "manufactured home" means a structure
transportable in one or more sections, which is built on a
permanent chassis, and designed to be used as a dwelling with or
without a permanent foundation when connected to the required
utilities, and contains the plumbing, heating, air conditioning,
and electrical systems in it. Manufactured home includes any
accessory structure that is an addition or supplement to the
manufactured home and, when installed, becomes a part of the
manufactured home.
(b) A manufactured home that meets each of the following
criteria must be valued and assessed as an improvement to real
property, the appropriate real property classification applies,
and the valuation is subject to review and the taxes payable in
the manner provided for real property:
(1) the owner of the unit holds title to the land on which
it is situated;
(2) the unit is affixed to the land by a permanent
foundation or is installed at its location in accordance with
the manufactured home building code in sections 327.31 to
327.34, and rules adopted under those sections, or is affixed to
the land like other real property in the taxing district; and
(3) the unit is connected to public utilities, has a well
and septic tank system, or is serviced by water and sewer
facilities comparable to other real property in the taxing
district.
(c) A manufactured home that meets each of the following
criteria must be assessed at the rate provided by the
appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and
the taxes payable in the manner provided in this section:
(1) the owner of the unit is a lessee of the land under the
terms of a lease;
(2) the unit is affixed to the land by a permanent
foundation or is installed at its location in accordance with
the manufactured homes building code contained in sections
327.31 to 327.34, and the rules adopted under those sections, or
is affixed to the land like other real property in the taxing
district; and
(3) the unit is connected to public utilities, has a well
and septic tank system, or is serviced by water and sewer
facilities comparable to other real property in the taxing
district.
(d) Sectional structures must be valued and assessed as an
improvement to real property if the owner of the structure holds
title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph
"sectional structure" means a building or structural unit that
has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially
assembled on-site alone or with other units and attached to a
permanent foundation.
(e) The commissioner of revenue may adopt rules under the
administrative procedure act to establish additional criteria
for the classification of manufactured homes and sectional
structures under this subdivision.
(f) A storage shed, deck, or similar improvement
constructed on property that is leased or rented as a site for a
manufactured home, sectional structure, park trailer, or travel
trailer is taxable as provided in this section. The property is
taxable as personal property to the lessee of the site if it is
not owned by the owner of the site. The property is taxable as
real estate if it is owned by the owner of the site. As a
condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to
construct improvements on the leased or rented site, the owner
of the site must obtain the permanent home address of the lessee
or user of the site. The site owner must provide the name and
address to the assessor upon request.
Sec. 16. Minnesota Statutes 1992, 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 class rate of 3.5 percent of market value for taxes
payable in 1992, and 3.4 percent of market value for taxes
payable in 1993 and thereafter.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational;
(2) manufactured homes not classified under any other
provision;
(3) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b).
Class 4b property has a class rate of 2.8 percent of market
value for taxes payable in 1992, 2.5 percent of market value for
taxes payable in 1993, and 2.3 percent of market value for taxes
payable in 1994 and thereafter.
(c) Class 4c property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for
the elderly or for low- and moderate-income families as defined
in Title II, as amended through December 31, 1990, of the
National Housing Act or the Minnesota housing finance agency law
of 1971, as amended, or rules promulgated by the agency and
financed by a direct federal loan or federally insured loan made
pursuant to Title II of the Act; or
(ii) situated on real property that is used for housing the
elderly or for low- and moderate-income families as defined by
the Minnesota housing finance agency law of 1971, as amended, or
rules adopted by the agency pursuant thereto and financed by a
loan made by the Minnesota housing finance agency pursuant to
the provisions of the act.
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 as defined in section
42(c)(2) of the Internal Revenue Code of 1986, as amended
through December 31, 1990, that (i) receives a low-income
housing credit under section 42 of the Internal Revenue Code of
1986, as amended through December 31, 1990; or (ii) meets the
requirements of that section and receives public financing,
except financing provided under sections 469.174 to 469.179,
which contains terms restricting the rents; or (iii) meets the
requirements of section 273.1317. Classification pursuant to
this clause is limited 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 unless the owner of the property
elects to have the property assessed under Laws 1991, chapter
291, article 1, section 55. If the owner of the property elects
to have the market value determined on the basis of the actual
restricted rents, as provided in Laws 1991, chapter 291, article
1, section 55, the property will be assessed at the rate
provided for class 4a or class 4b property, as appropriate.
Properties described in clauses (1)(ii), (3), and (4) may apply
to the assessor for valuation under Laws 1991, chapter 291,
article 1, section 55. The land on which these structures are
situated has the class rate given in paragraph (b) if the
structure contains fewer than four units, and the class rate
given in paragraph (a) if the structure contains four or more
units. This clause applies only to the property of a nonprofit
or limited dividend entity.
(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
317A;
(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 250 days in the year preceding the year of
assessment. For purposes of this clause, property is devoted to
a commercial purpose on a specific day if any portion of the
property is used for residential occupancy, and a fee is charged
for residential occupancy. 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 250 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 this clause also includes the remainder
of class 1c resorts. Owners of real property devoted to
temporary and seasonal residential occupancy for recreation
purposes and all or a portion of which was devoted to commercial
purposes for not more than 250 days in the year preceding the
year of assessment desiring classification as class 1c or 4c,
must submit a declaration to the assessor designating the cabins
or units occupied for 250 days or less in the year preceding the
year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which
they are located will be designated class 1c or 4c as otherwise
provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located will
be designated as class 3a. The first $100,000 of the market
value of the remainder of the cabins or units and a
proportionate share of the land on which they are located shall
have a class rate of three percent. The owner of property
desiring designation as class 1c or 4c property must provide
guest registers or other records demonstrating that the units
for which class 1c or 4c designation is sought were not occupied
for more than 250 days in the second year preceding the
assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, and (4) other
nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy
for recreation purposes shall not qualify for class 1c or 4c;
(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, 1990. 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 3.2
percent 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;
(7) post-secondary student housing of not more than one
acre of land that is owned by a nonprofit corporation organized
under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or
housing located within two miles of the border of a college
campus; and
(8) manufactured home parks as defined in section 327.14,
subdivision 3.
Class 4c property has a class rate of 2.3 percent of market
value, except that (i) each parcel of seasonal residential
recreational property not used for commercial purposes under
clause (5) has a class rate of 2.2 percent of market value for
taxes payable in 1992, and for taxes payable in 1993 and
thereafter, the first $72,000 of market value on each parcel has
a class rate of two percent and the market value of each parcel
that exceeds $72,000 has a class rate of 2.5 percent, and (ii)
manufactured home parks assessed under clause (8) have a class
rate of two percent for taxes payable in 1993 only.
(d) Class 4d property includes:
(1) a structure that is:
(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 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. For property for which
application is made for 4c or 4d classification for taxes
payable in 1994 and thereafter, and which was not classified 4c
or 4d for taxes payable in 1993, 4c or 4d classification is
available only for those units meeting the requirements of
section 273.1318.
Classification under this clause is only available to
property of a nonprofit or limited dividend entity.
(2) For taxes payable in 1992, 1993 and 1994, only,
buildings and appurtenances, together with the land upon which
they are located, leased by the occupant under the community
lending model lease-purchase mortgage loan program administered
by the Federal National Mortgage Association, provided the
occupant's income is no greater than 60 percent of the county or
area median income, adjusted for family size and the building
consists of existing single family or duplex housing. The lease
agreement must provide for a portion of the lease payment to be
escrowed as a nonrefundable down payment on the housing. To
qualify under this clause, the taxpayer must apply to the county
assessor by May 30 of each year. The application must be
accompanied by an affidavit or other proof required by the
assessor to determine qualification under this clause.
(3) Qualifying buildings and appurtenances, together with
the land upon which they are located, leased for a period of up
to five years by the occupant under a lease-purchase program
administered by the Minnesota housing finance agency or a
housing and redevelopment authority authorized under sections
469.001 to 469.047, provided the occupant's income is no greater
than 80 percent of the county or area median income, adjusted
for family size, and the building consists of two or less
dwelling units. The lease agreement must provide for a portion
of the lease payment to be escrowed as a nonrefundable down
payment on the housing. The administering agency shall verify
the occupants income eligibility and certify to the county
assessor that the occupant meets the income criteria under this
paragraph. To qualify under this clause, the taxpayer must
apply to the county assessor by May 30 of each year. For
purposes of this section, "qualifying buildings and
appurtenances" shall be defined as one or two unit residential
buildings which are unoccupied and have been abandoned and
boarded for at least six months.
Class 4d property has a class rate of two percent of market
value.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (3); paragraph (c), clause (1), (2), (3), or
(4), 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. Residential rental
property that would otherwise be assessed as class 4 property
under paragraph (d) is assessed at 2.3 percent of market value
if it is found to be a substandard building under section
273.1316.
Sec. 17. Minnesota Statutes 1992, section 273.138,
subdivision 5, is amended to read:
Subd. 5. The commissioner of revenue shall calculate the
aids pursuant to subdivisions 2 and 3, basing all necessary
calculations on the abstracts of assessment of real property for
assessment year 1972 transmitted to the commissioner of revenue
pursuant to section 270.11 as equalized by the state board of
equalization pursuant to sections 270.11 and 270.12, and the
1973 abstracts of tax lists transmitted by the county auditors
pursuant to section 275.29. The commissioner shall pay directly
to the affected taxing authorities their total payment for the
year at the time distributions are made pursuant to section
273.13, subdivision 15a 477A.015.
Sec. 18. Minnesota Statutes 1992, 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 local tax rates.
(c) "Gross tax capacity" means the product of the gross
class rates and 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, (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. Gross tax capacity cannot be
less than zero.
(d) "Net tax capacity" means the product of (i) the
appropriate net class rates for the year in which the aid is
payable, except that for aids payable in 1992 the class rate
applied to class 4b property shall be 2.9 percent; the class
rate applied to class 4a property shall be 3.55 percent; the
class rate applied to noncommercial seasonal recreational
residential property shall be 2.25 percent; and the class rates
applied to portions of class 1a, 1b, and 2a property shall be 2
percent for the market value between $68,000 and $110,000 and
2.5 percent for the market value over $110,000; for aid payable
in 1993 the class rate applicable to class 4a shall be 3.5
percent; and the class rate applicable to class 4b shall be 2.65
percent; and for aid payable in 1994 the class rate applicable
to class 4b shall be 2.4 percent, and (ii) estimated market
values for the assessment two years prior to that in which aid
is payable. The reclassification of mobile home parks as class
4c shall not be considered in determining net tax capacity for
purposes of this paragraph for aids payable in 1991 or 1992.
Any reclassification of property by Laws 1991, chapter 291,
shall not be considered in determining net tax capacity for aids
payable in 1992. "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, (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 shall
be multiplied by 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) "Previous net tax capacity" means the product of the
appropriate net class rates for the year previous to the year in
which the aid is payable, and estimated market values for the
assessment two years prior to that in which aid is payable.
"Total previous net tax capacity" means the previous net tax
capacities for all property within the unique taxing
jurisdiction. The total previous net tax capacity shall be
reduced by the sum of (1) the unique taxing jurisdiction's
previous 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, (2) the
previous net tax capacity of the captured value of tax increment
financing districts as defined in section 469.177, subdivision
2, and (3) the previous net tax capacity of transmission lines
deducted from a local government's total net tax capacity under
section 273.425. Previous net tax capacity cannot be less than
zero.
(f) "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. The equalized market values
shall equal the unequalized market values divided by the
assessment sales ratio.
(g) "1989 local tax rate" means 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 subdivision 2a. For
purposes of computation of the local tax rate only, gross taxes
shall not be adjusted by inflation or household growth.
(h) "Current local tax rate" means the quotient derived by
dividing the taxes levied within a unique taxing jurisdiction
for taxes payable in the year prior to that for which aids are
being calculated by the total previous net tax capacity of the
unique taxing jurisdiction.
(i) 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 1989 local tax rate; (ii) its total net tax
capacity; and (iii) 0.9767.
(j) 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," "gross taxes," or "taxes
levied" means the total 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. Gross taxes levied on all properties or gross
taxes are before reduction by any credits for taxes payable in
1989. "Gross taxes" are before any reduction for disparity
reduction aid but "taxes levied" are after any reduction for
disparity reduction aid. Gross taxes levied or taxes levied
cannot be less than zero.
"Taxes levied" excludes actual amounts levied for purposes
listed in subdivision 2a.
(k) "Human services aids" means:
(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;
(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.
(l) "Cost-of-living adjustment factor" means the greater of
one or one plus the percentage increase in the consumer price
index minus .36 percent. In no case may the cost of living
adjustment factor exceed 1.0394.
(m) The percentage increase in the consumer price index
means 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.
(n) "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.
(o) "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.
(p) "Household adjustment factor" means the number of
households for the second most recent year preceding that in
which the aids are payable divided by the number of households
for the third most recent year. The household adjustment factor
cannot be less than one.
(q) "Growth adjustment factor" means the household
adjustment factor in the case of counties, cities, and towns.
In the case of school districts the growth adjustment factor
means the average daily membership of the school district under
section 124.17, subdivision 2, for the school year ending in the
second most recent year preceding that in which the aids are
payable divided by the average daily membership for the third
most recent year. In the case of special taxing districts, the
growth adjustment factor equals one. The growth adjustment
factor cannot be less than one.
(r) For aid payable in 1992 and subsequent years,
"homestead and agricultural credit base" means the previous
year's certified homestead and agricultural credit aid
determined under subdivision 2 less any permanent aid reduction
in the previous year to homestead and agricultural credit aid
under section 477A.0132, plus, for aid payable in 1992, fiscal
disparity homestead and agricultural credit aid under
subdivision 2b.
(s) "Net tax capacity adjustment" means (1) the total
previous net tax capacity minus the total net tax capacity,
multiplied by (2) the unique taxing jurisdiction's current local
tax rate. The net tax capacity adjustment cannot be less than
zero.
(t) "Fiscal disparity adjustment" means the difference
between (1) a taxing jurisdiction's fiscal disparity
distribution levy under section 473F.08, subdivision 3, clause
(a), for taxes payable in the year prior to that for which aids
are being calculated, and (2) the same distribution levy
multiplied by the ratio of the highest class rate for class 3
property for taxes payable in the year prior to that for which
aids are being calculated to the highest class rate for class 3
property for taxes payable in the second prior year to that for
which aids are being calculated. In the case of school
districts, the fiscal disparity distribution levy shall exclude
that part of the levy attributable to equalized school levies as
defined in subdivision 2a.
Sec. 19. Minnesota Statutes 1992, section 273.1398,
subdivision 3, is amended to read:
Subd. 3. [DISPARITY REDUCTION AID.] (a) For taxes payable
in 1990, and subsequent years, the amount of disparity aid
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, provided
that the class rates for the portion of class 1a, 1b, and 2a
property shall be 2 percent for the market value between $68,000
and $110,000 and 2.5 percent for the market value over $110,000,
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. For taxes payable in 1992
and subsequent years, the amount of disparity aid certified to
each taxing jurisdiction shall be reduced by any reductions
required in the current year or permanent reductions required in
previous years under section 477A.0132.
(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.
Sec. 20. Minnesota Statutes 1992, section 273.1398,
subdivision 5b, is amended 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) (k). 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) (k), 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 subdivision 1, paragraph (i) (k), 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. [273.166] [MANUFACTURED HOME HOMESTEAD AND
AGRICULTURAL CREDIT AID.]
Subdivision 1. [DEFINITIONS.] (a) "Current local tax rate"
has the meaning given it in section 273.1398, subdivision 1.
(b) "Growth adjustment factor" means the growth adjustment
factor used in the calculation of homestead and agricultural
credit aid for the payable year in which the manufactured home
homestead and agricultural credit aid is payable.
(c) "Net tax capacity" means the product of (1) the
appropriate net class rates for the year in which the aid is
payable, except that for aids payable in 1993 the class rate
applicable to class 4a shall be 3.5 percent; and the class rate
applicable to class 4b shall be 2.65 percent; and for aid
payable in 1994 the class rate applicable to class 4b shall be
2.4 percent, and (2) estimated market values of manufactured
homes assessed under section 273.125 for the assessment one year
prior to that in which the aid is payable. "Total net tax
capacity" means the net tax capacities for all manufactured
homes within the taxing district assessed under section
273.125. Net tax capacity cannot be less than zero.
(d) "Net tax capacity adjustment" means (1) the total
previous net tax capacity minus the total net tax capacity,
multiplied by (2) the taxing district's current local tax rate.
The net tax capacity adjustment cannot be less than zero.
(e) "Previous net tax capacity" means the product of the
appropriate net class rates for the year previous to the year in
which the aid is payable, and estimated market values of
manufactured homes assessed under section 273.125 for the
assessment one year prior to that in which the aid is payable.
"Total previous net tax capacity" means the previous net tax
capacities for all manufactured homes within the taxing district
assessed under section 273.125. Previous net tax capacity
cannot be less than zero.
Subd. 2. [MANUFACTURED HOME HOMESTEAD AND AGRICULTURAL
CREDIT AID.] For each calendar year, the manufactured home
homestead and agricultural credit aid for each taxing
jurisdiction equals the taxing jurisdiction's manufactured home
homestead and agricultural credit aid determined under this
subdivision for the preceding aid payable year times the growth
adjustment factor for the jurisdiction plus the net tax capacity
adjustment for the jurisdiction. Except for education districts
and secondary cooperatives that receive revenue according to
section 124.2721 or 124.575, payment will not be made to any
taxing jurisdiction that has ceased to levy a property tax.
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 education a sum
sufficient to pay the aids provided under this section for
school districts, intermediate school districts, or any group of
school districts levying as a single taxing entity. There is
annually appropriated from the local government trust fund to
the commissioner of revenue a sum sufficient to pay the aids
provided under this section to counties, cities, towns, and
special taxing districts.
Sec. 22. Minnesota Statutes 1992, section 274.13,
subdivision 1, is amended to read:
Subdivision 1. [MEMBERS; MEETINGS; RULES FOR EQUALIZING
ASSESSMENTS.] The county commissioners, or a majority of them,
with the county auditor, or, if the auditor cannot be present,
the deputy county auditor, or, if there is no deputy, the court
administrator of the district court, shall form a board for the
equalization of the assessment of the property of the county,
including the property of all cities whose charters provide for
a board of equalization. The board shall meet annually, on the
date specified in section 274.14, at the office of the auditor.
Each member shall take an oath to fairly and impartially perform
duties as a member. The board shall examine and compare the
returns of the assessment of property of the towns or districts,
and equalize them so that each tract or lot of real property and
each article or class of personal property is entered on the
assessment list at its market value, subject to the following
rules:
(1) The board shall raise the valuation of each tract or
lot of real property which in its opinion is returned below its
market value to the sum believed to be its market value. The
board must first give notice of intention to raise the valuation
to the person in whose name it is assessed, if the person is a
resident of the county. The notice must fix a time and place
for a hearing.
(2) The board shall reduce the valuation of each tract or
lot which in its opinion is returned above its market value to
the sum believed to be its market value.
(3) The board shall raise the valuation of each class of
personal property which in its opinion is returned below its
market value to the sum believed to be its market value. It
shall raise the aggregate value of the personal property of
individuals, firms, or corporations, when it believes that the
aggregate valuation, as returned, is less than the market value
of the taxable personal property possessed by the individuals,
firms, or corporations, to the sum it believes to be the market
value. The board must first give notice to the persons of
intention to do so. The notice must set a time and place for a
hearing.
(4) The board shall reduce the valuation of each class of
personal property listed in section 273.49 that is returned
above its market value to the sum it believes to be its market
value. Upon complaint of a party aggrieved, the board shall
reduce the aggregate valuation of the individual's personal
property, or of any class of personal property for which the
individual is assessed, which in its opinion has been assessed
at too large a sum, to the sum it believes was the market value
of the individual's personal property of that class.
(5) The board must not reduce the aggregate value of all
the property of its county, as submitted to the county board of
equalization, with the additions made by the auditor under this
chapter, by more than one percent of its whole valuation. The
board may raise the aggregate valuation of real property, and of
each class of personal property, of the county, or of any town
or district of the county, when it believes it is below the
market value of the property, or class of property, to the
aggregate amount it believes to be its market value.
(6) The board shall change the classification of any
property which in its opinion is not properly classified.
Sec. 23. Minnesota Statutes 1992, section 274.18, is
amended to read:
274.18 [ABSTRACT OF REALTY ASSESSMENT ROLL TO TOWN CLERKS.]
On or before the first Tuesday of March, in Once each year,
the county auditor shall make out and send to each town clerk in
the county who has requested it, a certified copy or abstract of
the latest available real estate assessment roll of the town, as
equalized by the county and state boards of equalization.
Sec. 24. Minnesota Statutes 1992, section 275.065,
subdivision 5a, is amended to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a
population of more than 1,000, county, or school district shall
advertise in a newspaper a notice of its intent to adopt a
budget and property tax levy or, in the case of a school
district, to review its current budget and proposed property
taxes payable in the following year, at a public hearing. The
notice must be published not less than two business days nor
more than six business days before the hearing.
For a city that has a population of more than 1,000 but
less than 2,500 the advertisement must be at least one-eighth
page in size of a standard-size or a tabloid-size newspaper.
The first headline in the advertisement stating the notice of
proposed property taxes and the notice of public hearing must be
in a type no smaller than 14-point, and the second headline must
be in a type no smaller than 12-point. The text of the
advertisement must be no smaller than 10-point, except that the
property tax amounts and percentages may be in 9-point type.
For a city that has a population of 2,500 or more, a county
or a school district, the first headline in the advertisement
stating the notice of proposed property taxes and the notice of
public hearing must be in a type no smaller than 30-point, and
the second headline must be in a type no smaller than 22-point.
The text of the advertisement must be no smaller than 14-point,
except that the property tax amounts and percentages may be in
12-point type.
The advertisement must not be placed in the part of the
newspaper where legal notices and classified advertisements
appear. The advertisement must be published in an official
newspaper of general circulation in the taxing authority. The
newspaper selected must be one of general interest and
readership in the community, and not one of limited subject
matter. The advertisement must appear in a newspaper that is
published at least once per week.
(b) The advertisement must be in the following form, except
that the notice for a school district may include references to
the current budget in regard to proposed property taxes.
"NOTICE OF
PROPOSED PROPERTY TAXES
(City/County/School District) of .........
The governing body of ........ will soon hold budget hearings
and vote on the property taxes for (city/county services that
will be provided in 199_/school district services that will be
provided in 199_ and 199_).
NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing
and express their opinions on the proposed (city/county/school
district) budget and property taxes, or in the case of a school
district, its current budget and proposed property taxes,
payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address).
(c) A city with a population of 1,000 or less must
advertise by posted notice as defined in section 645.12,
subdivision 1. The advertisement must be posted at the time
provided in paragraph (a). It must be in the form required in
paragraph (b).
(d) For purposes of this subdivision, the population of a
city is the most recent population as determined by the state
demographer under section 4A.02.
Sec. 25. Minnesota Statutes 1992, section 275.07,
subdivision 1, is amended to read:
Subdivision 1. The taxes voted by cities, counties, school
districts, and special districts shall be certified by the
proper authorities to the county auditor on or before five
working days after December 20 in each year. A town must
certify the levy adopted by the town board to the county auditor
by September 1 15 each year. If the town board modifies the
levy at a special town meeting after September 1 15, the town
board must recertify its levy to the county auditor on or before
five working days after December 20. The taxes certified shall
not be adjusted by the aid received under sections 273.1398,
subdivisions 2 and 3, and 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.
Sec. 26. Minnesota Statutes 1992, section 275.07,
subdivision 4, is amended to read:
Subd. 4. [REPORT TO COMMISSIONER.] On or before
September 15 30 for taxes levied payable in 1990 1994, 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. 27. Minnesota Statutes 1992, section 275.295, is
amended to read:
275.295 [WETLANDS EXEMPTION; REPLACEMENT OF REVENUE.]
Subdivision 1. [CERTIFICATION.] The total amount of
revenue lost as a result of the exemption provided in section
272.02, subdivision 1, paragraph (10), clause (iii), must be
certified by the county auditor to the commissioner of revenue
and submitted to the commissioner as part of the abstract of tax
lists to be filed with the commissioner under the provisions of
section 275.29. The amount of revenue lost as a result of the
exemption must be computed each year by applying the
current local tax rates of the taxing jurisdictions in which the
wetlands are located to the assessed valuation net tax capacity
of the wetlands. Payment to the county for lost revenue must
not be less than the revenue that would have been received in
taxes if the wetlands had an assessed value of $5 a net tax
capacity of 50 cents per acre. The commissioner of revenue
shall review the certification for accuracy and may make
necessary changes or return the certification to the county
auditor for corrections.
Subd. 2. [PAYMENT.] Based on current year tax data
reported in the abstracts of tax lists, the commissioner of
revenue shall annually determine the taxing district
distribution of the amounts certified under subdivision 1. The
commissioner shall pay to each taxing district, other than
school districts, its total payment for the year in equal
installments on or before July 15 and December 15 of each
year at the time distributions are made under section 473H.10.
Subd. 3. [APPROPRIATION.] There is appropriated from the
general fund to the commissioner of revenue the amount necessary
to make the payments required in subdivision 2.
Sec. 28. Minnesota Statutes 1992, section 276.02, is
amended to read:
276.02 [TREASURER TO BE COLLECTOR.]
The county treasurer shall collect all taxes extended on
the tax lists of the county and the fines, forfeitures, or
penalties received by any person or officer for the use of the
county. The treasurer shall collect the taxes according to law
and credit them to the proper funds. This section does not
apply to fines and penalties accruing to municipal corporations
for the violation of their ordinances that are recoverable
before a city justice. Taxes, fines, interest, and penalties
must be paid with United States currency or by check or money
order drawn on a bank or other financial institution in the
United States. The county board may by resolution authorize the
treasurer to impose a charge for any dishonored checks.
Sec. 29. Minnesota Statutes 1992, section 277.01,
subdivision 2, is amended to read:
Subd. 2. [PARTIAL PAYMENTS.] 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 277.011 278.03 or any other law, nor does it affect the
order of payment of delinquent taxes under section 280.39.
Sec. 30. Minnesota Statutes 1992, section 277.15, is
amended to read:
277.15 [INTEREST.]
When a judgment has heretofore been entered and docketed,
or shall hereafter be entered and docketed, for the recovery of
taxes, except in the case of real estate tax judgments provided
for in section 279.19, the same shall bear interest until paid
at the rate of six percent per annum until January 1, 1981, and
at the rate determined under section 549.09 until January 1,
1991. Thereafter interest will be payable at the rate provided
in section 279.03, subdivision 1a.
Beginning with the taxes payable year 1992, all personal
property tax amounts not paid as of July 1, 1993, or January 1
of the year following the year in which they were due, whichever
is later, shall, until paid, bear interest at the rate provided
in section 279.03, regardless of whether or not a judgment for
those taxes is obtained and entered.
Sec. 31. Minnesota Statutes 1992, section 277.17, is
amended to read:
277.17 [ESCROW REQUIREMENT FOR DELINQUENCIES ON
MANUFACTURED HOMES.]
Subdivision 1. [CERTIFICATION NOTIFICATION TO MANUFACTURED
HOME OWNER.] On or before October 15 of each year, the county
auditor shall send a letter to each owner of a manufactured home
for which the personal property taxes due on August 31 are
delinquent as of September 30. On or before December 31 of each
year, At least once in each calendar year, the county auditor
shall treasurer must send a letter to each owner of a
manufactured home for which the taxes due on August 31 were not
delinquent but the personal property taxes due on November 15
are delinquent as of December 15 in that calendar year have not
been fully paid. The first letter must inform the owner sent,
in regard to any specific delinquent amount, must contain a
notification that if the delinquent taxes are not paid in full
within 90 days of the date of issuance of the notice one of the
following may occur:
(1) the owner may be required under state law to begin
making monthly payments of delinquent property taxes, and the
property taxes will also be escrowed for payment of property
taxes the following year; or
(2) the county will notify the lender of the tax
delinquency and request the lender to initiate the process
provided under section 47.209. The form and content of the
notice to the owner shall be specified by the commissioner of
revenue.
Unless the collection of the tax is in jeopardy and the
treasurer is proceeding under the authority of section 277.21,
subdivision 2, the county may not levy and seize property of the
taxpayer until 90 days after the postmark date of the letter
containing the notification required under this subdivision.
Subd. 2. [ESTABLISHMENT OF TAX ESCROW ACCOUNTS.] The
county auditor treasurer may establish a tax escrow account for
delinquent property taxes for an owner who receives a notice
under subdivision 1 if the county does not initiate the process
provided under section 47.209. If an escrow account is
established for an owner who receives a notice regarding taxes
due August 31, the treasurer shall determine an amount the owner
must pay an additional amount each month equal to ten percent of
such that by the following August 31, the owner will have paid
the delinquent manufactured home personal property taxes,
penalties, and interest due, plus ten percent of the estimated
manufactured home personal property tax that will become due and
payable in the year following calendar the year of delinquency.
If the owner fails to pay the any manufactured home personal
property tax that becomes due on November 15 prior to the
following August 31, the additional amount of tax due but
unpaid, plus penalty and interest, will be added to the
delinquent property taxes payable by installment under this
section. If an escrow account is established for an owner who
receives a notice regarding taxes due November 15, the owner
must pay an additional amount each month equal to 15 percent of
the delinquent taxes, penalties, and interest due, plus 12
percent of the tax payable in the following calendar year.
Subd. 3. [COUNTY ESCROW.] Within 30 days of receipt of
notice from the county auditor treasurer under subdivision 2,
the owner must make the first monthly payment under subdivision
2 to the county auditor treasurer. The commissioner of revenue
shall prescribe the procedures to be used for monthly
collections of the delinquent and current tax payments. If an
owner is making the payments at the time required under this
section, no action may be taken under section 277.20 277.21 with
respect to the manufactured home for which the property taxes
are being paid into the escrow account.
Sec. 32. Minnesota Statutes 1992, section 278.01,
subdivision 1, is amended to read:
Subdivision 1. [DETERMINATION OF VALIDITY.] Any person
having personal property, or any estate, right, title, or
interest in or lien upon any parcel of land, who claims that
such property has been partially, unfairly, or unequally
assessed in comparison with other property in the (1) city, or
(2) county, or (3) in the case of a county containing a city of
the first class, the portion of the county excluding the first
class city, or that the parcel has been assessed at a valuation
greater than its real or actual value, or that the tax levied
against the same is illegal, in whole or in part, or has been
paid, or that the property is exempt from the tax so levied, may
have the validity of the claim, defense, or objection determined
by the district court of the county in which the tax is levied
or by the tax court by serving one copy of a petition for such
determination upon the county auditor, one copy on the county
attorney, one copy on the county treasurer, and three copies on
the county assessor. The county assessor shall immediately
forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in
which the property is located if that city or town employs its
own certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school
district in which the property is located.
In counties where the office of county treasurer has been
combined with the office of county auditor, the county may elect
to require the petitioner to serve the number of copies as
determined by the county. The county assessor shall immediately
forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in
which the property is located if that city or town employs its
own certified assessor. A list of petitioned properties,
including the name of the petitioner, the identification number
of the property, and the estimated market value, shall be sent
on or before the first day of July by the county
auditor/treasurer to the school board of the school district in
which the property is located.
For all counties, the petitioner must file the copies with
proof of service, in the office of the court administrator of
the district court before the 16th day of May of the year in
which the tax becomes payable. A petition for determination
under this section may be transferred by the district court to
the tax court. An appeal may also be taken to the tax court
under chapter 271 at any time following receipt of the valuation
notice required by section 273.121 but prior to May 16 of the
year in which the taxes are payable.
Sec. 33. Minnesota Statutes 1992, section 278.02, is
amended to read:
278.02 [PETITION MAY INCLUDE SEVERAL PARCELS.]
Such petition need not be in any particular form, but shall
clearly identify the items of personal property, or the land
involved, the assessment date, and shall set forth in concise
language the claim, defense, or objection asserted. No petition
shall include more than one assessment date. Several items of
personal property and several parcels of land in or upon which
the petitioner has an estate, right, title, interest, or lien
may be included in the same petition, but only if they are in
the same city or town, except that contiguous property
overlapping city or town boundaries may be included in one
petition.
Sec. 34. Minnesota Statutes 1992, section 278.03, is
amended to read:
278.03 [PAYMENT OF TAX.]
Subdivision 1. [REAL PROPERTY.] In the case of real
property, if the proceedings instituted by the filing of the
petition have not been completed before the 16th day of May next
following the filing, the petitioner shall pay to the county
treasurer 50 percent of the tax levied for such year against the
property involved, unless permission to continue prosecution of
the petition without such payment is obtained as herein provided.
If the proceedings instituted by the filing of the petition have
not been completed by the next October 16, or, in the case of
class 1b agricultural homestead, class 2a agricultural
homestead, and class 2b(2) agricultural nonhomestead property,
November 16, the petitioner shall pay to the county treasurer 50
percent of the unpaid balance of the taxes levied for the year
against the property involved if the unpaid balance is $2,000 or
less and 80 percent of the unpaid balance if the unpaid balance
is over $2,000, unless permission to continue prosecution of the
petition without payment is obtained as herein provided. The
petitioner, upon ten days notice to the county attorney and to
the county auditor, given at least ten days prior to the 16th
day of May or the 16th day of October, or, in the case of class
1b agricultural homestead, class 2a agricultural homestead, and
class 2b(2) agricultural nonhomestead property, the 16th day of
November, may apply to the court for permission to continue
prosecution of the petition without payment; and, if it is made
to appear
(1) that the proposed review is to be taken in good faith;
(2) that there is probable cause to believe that the
property may be held exempt from the tax levied or that the tax
may be determined to be less than 50 percent of the amount
levied; and
(3) that it would work a hardship upon petitioner to pay
the taxes due,
the court may permit the petitioner to continue prosecution
of the petition without payment, or may fix a lesser amount to
be paid as a condition of continuing the prosecution of the
petition.
Failure to make payment of the amount required when due
shall operate automatically to dismiss the petition and all
proceedings thereunder unless the payment is waived by an order
of the court permitting the petitioner to continue prosecution
of the petition without payment. The petition shall be
automatically reinstated upon payment of the entire tax plus
interest and penalty if the payment is made within one year of
the dismissal. The county treasurer shall, upon request of the
petitioner, issue duplicate receipts for the tax payment, one of
which shall be filed by the petitioner in the proceeding.
Subd. 2. [PERSONAL PROPERTY.] In the case of personal
property, if the proceedings instituted by the filing of the
petition have not been completed before May 16 next following
the filing of the petition, the petitioner shall pay to the
county treasurer 50 percent of the tax levied for the year
against the property involved, unless permission to file the
petition without payment is obtained as provided in this
subdivision. The petitioner, upon ten days' notice to the
county attorney and to the county auditor, given at least ten
days before May 16, may apply to the court for permission to
file the petition without such payment; and, if it is made to
appear:
(1) that the proposed review is to be taken in good faith;
(2) that there is probable cause to believe that the
property may be held exempt from the tax levied or that the tax
may be determined to be less than 50 percent of the amount
levied; and
(3) that it would work a hardship upon petitioner to pay 50
percent of the tax.
The court may permit the petitioner to continue to
prosecute the petition without payment, or may fix a lesser
amount to be paid as a condition to the right to continue to
prosecute the same. Payment of the amount so fixed shall be
endorsed on the order by the county treasurer.
Sec. 35. Minnesota Statutes 1992, section 278.04, is
amended to read:
278.04 [TREASURER MUST STAMP TAX LISTS.]
Upon the filing of such petition, the county treasurer
shall write or stamp opposite the description of such items of
personal property or parcel on the tax list the notation,
"Petition for review filed," and such parcel shall not be
included in the delinquent tax list for such year.
Sec. 36. Minnesota Statutes 1992, section 278.08, is
amended to read:
278.08 [INTEREST.]
Subdivision 1. [INTEREST; PENALTY.] In the case of real
property, the judgment must include the following interest:
(1) if the tax is sustained in full, interest on the unpaid
part of the tax computed under section 279.03;
(2) if the tax is increased, interest on the unpaid part of
the tax as originally assessed computed under section 279.03;
(3) if the tax is reduced, interest on the difference
between the tax as recomputed and the amount previously paid
computed under section 279.03.
If the tax is sustained or increased, penalty on the unpaid
part of the tax as originally assessed computed under section
279.01 must be included in the judgment.
Subd. 2. [REFUND.] In the case of real property, if the
petitioner has overpaid the tax determined or stipulated to be
due, the county auditor shall compute interest on the
overpayment from the date of the filing of the petition for
review or from the date of payment of the tax, whichever is
later, until the date of issuance of the refund warrant.
Interest shall be calculated on the overpayment at the rate
provided in section 279.03 for delinquent property taxes for the
levy year involved originally due and payable in the same year
as the tax which was overpaid.
Sec. 37. Minnesota Statutes 1992, section 278.09, is
amended to read:
278.09 [CERTIFIED COPIES TO AUDITOR AND TREASURER.]
Upon entry of judgment a certified copy thereof shall be
delivered to the county auditor and to the county treasurer if
the tax list be still in the treasurer's possession, who shall
correct the tax list and assessment rolls in accordance with the
judgment, writing or stamping opposite such parcel or item of
personal property in the tax list a notation "judgment entered"
and the date thereof.
Sec. 38. Minnesota Statutes 1992, section 279.025, is
amended to read:
279.025 [PAYMENT OF DELINQUENT PROPERTY TAXES, SPECIAL
ASSESSMENTS.]
Payment of delinquent property tax and related interest and
penalties and special assessments shall be paid to the county
auditor with United States currency or by check or money order
drawn on a bank or other financial institution in the United
States.
Sec. 39. Minnesota Statutes 1992, section 287.21,
subdivision 4, is amended to read:
Subd. 4. [TAX-FORFEITED LAND.] Before a state deed for
tax-forfeited land may be issued, the deed tax must be paid by
purchasers the purchaser of tax-forfeited land whether the
purchase is the result of a public auction or private sale,
persons who redeem repurchase tax-forfeited land, or state
agencies and local units of government that apply for use or
purchase of acquire tax-forfeited land by purchase or any other
means.
Sec. 40. Minnesota Statutes 1992, section 287.22, is
amended to read:
287.22 [EXCEPTIONS.]
The tax imposed by section 287.21 shall not apply to:
A. Any executory contract for the sale of land under which
the vendee is entitled to or does take possession thereof, or
any assignment or cancellation thereof.
B. Any mortgage or any assignment, extension, partial
release, or satisfaction thereof.
C. Any will.
D. Any plat.
E. Any lease.
F. Any deed, instrument, or writing in which the United
States or any agency or instrumentality thereof is the grantor,
assignor, transferor, conveyor, grantee or assignee.
G. Deeds for cemetery lots.
H. Deeds of distribution by personal representatives.
I. Deeds to or from coowners partitioning undivided
interests in the same piece of property.
J. Any deed or other instrument of conveyance issued
pursuant to a land exchange under section 92.121 and related
laws.
K. A referee's or sheriff's certificate of sale in a
mortgage or lien foreclosure sale.
L. A referee's or sheriff's certificate of redemption from
a mortgage or lien foreclosure sale issued to the redeeming
mortgagor or lienee.
Sec. 41. Minnesota Statutes 1992, section 347.10, is
amended to read:
347.10 [OWNERS OF DOGS AND KENNELS LISTED BY ASSESSORS;
LICENSES.]
Every assessor shall annually ascertain by diligent inquiry
the dogs owned, harbored, or kept within the assessor's
assessment district. Every person shall answer frankly and
fully all questions asked by the assessor relative to the
ownership or keeping of dogs within the assessor's district.
The assessor shall prepare and file with the town or statutory
city clerk a list containing the names and addresses of all
owners of dogs in the district, and the number and sex of dogs
owned, harbored or kept. The assessor shall make a list of the
names of persons owning and operating kennels and the number of
dogs kept in each. The term "kennel" shall mean any
establishment where dogs are kept for the purpose of breeding,
sale or sporting purposes. Any person who keeps or operates a
kennel may, in lieu of the license for each dog required by
sections 347.08 to 347.21, apply to the town or city treasurer
for a kennel license for the keeping or operating of such
kennel. For such a kennel license the person shall pay a fee of
$10 for the license year. With the kennel license the clerk
shall issue a number of metal tags equal to the number of dogs
kept in the kennel. The tags shall be made in a form so that
they may be readily distinguishable from the individual license
tags for the same year. The licensee of a kennel shall at all
times keep one of such tags attached to the collar of each dog
over six months old kept under a kennel license. The tags may
be transferred from one dog to another within the kennel
whenever any dog is removed from the kennel. The list shall be
filed with the town or city clerk at the time the assessor
delivers to the clerk the assessment roll. The clerk may
appoint a deputy or deputies to issue such licenses. The clerk
shall receive ten cents for each license issued, to be paid by
the town out of the revenue fund.
A license shall be issued by the clerk or the clerk's
deputy upon application being made therefor and upon payments
made as herein provided. The license shall be in the form
prescribed by the county auditor and shall be executed by the
proper town, or city clerk or deputy. The license shall state
the year for which it was issued, shall bear a serial number,
the owner's name and address, and the name, sex, breed, and
color of the dog licensed. When information is furnished that
any dog on the assessor's list is dead, the clerk shall so
indicate on the list.
Sec. 42. Minnesota Statutes 1992, section 348.04, is
amended to read:
348.04 [PROOFS SENT TO COMMISSIONER OF NATURAL RESOURCES.]
Before August 1 the county auditor shall compare examine
the proofs furnished by the claimant with the assessor's report,
and, if they correspond appear correct in substance, the county
auditor shall immediately forward to the commissioner of natural
resources the original proofs of claim and a certified list of
all plats filed.
Sec. 43. Minnesota Statutes 1992, section 469.175,
subdivision 5, is amended to read:
Subd. 5. [ANNUAL DISCLOSURE.] For all tax increment
financing districts, whether created prior or subsequent to
August 1, 1979, on or before July 1 of each year, the authority
shall submit to the county board, the county auditor, the school
board, the commissioner of revenue and, if the authority is
other than the municipality, the governing body of the
municipality, a report of the status of the district. The
report shall include the following information: the amount and
the source of revenue in the account, the amount and purpose of
expenditures from the account, the amount of any pledge of
revenues, including principal and interest on any outstanding
bonded indebtedness, the original net tax capacity of the
district, the captured net tax capacity retained by the
authority, the captured net tax capacity shared with other
taxing districts, the tax increment received, and any additional
information necessary to demonstrate compliance with any
applicable tax increment financing plan. An annual statement
showing the tax increment received and expended in that year,
the original net tax capacity, captured net tax capacity, amount
of outstanding bonded indebtedness, and any additional
information the authority deems necessary shall be published in
a newspaper of general circulation in the municipality.
Sec. 44. Minnesota Statutes 1992, 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 net
tax capacity of those properties by applying the appropriate
class rates. When computing the rate of tax pursuant to section
275.08, the county auditor shall include the net 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 net tax capacity times the total local tax
rate for all purposes as provided in clause (a).
(c) The county auditor shall then compute the tax on lands
valued according to subdivision 2 and nonresidential buildings
by multiplying the net tax capacity times the total local tax
rate for all purposes as provided in clause (a), subtracting
$1.50 per acre of land in the preserve.
(d) 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 net tax capacity
times 105 percent of the previous year's statewide average local
tax rate levied on property located within townships for all
purposes.
(e) 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 (c) or (d), whichever is
less. The state shall reimburse the taxing jurisdictions for
the amount of the difference between the net tax determined
under this clause and the gross tax in clause (b). 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. Payment shall be made by the state on December 15 26
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. 45. Minnesota Statutes 1992, section 477A.013,
subdivision 1, is amended to read:
Subdivision 1. [TOWNS.] In calendar year 1990, each town
that had levied for taxes payable in the prior year a local tax
rate of at least .008 shall receive a distribution equal to 106
percent of the amount received in 1989 under this subdivision.
In calendar years 1991 and 1992, each town that had levied for
taxes payable in the prior year a local tax rate of at least
.008 shall receive a distribution equal to the amount it
received in the previous year under this subdivision less any
permanent reductions made under section 477A.0132. In 1993 and
thereafter, each town that had levied for taxes payable in the
prior year a local tax rate of at least .008 shall receive a
distribution equal to the amount it received in 1992 under this
subdivision before any nonpermanent reductions made under
section 477A.0132 plus $1 per capita based on the town's
population.
Sec. 46. Laws 1992, chapter 511, article 2, section 61, is
amended to read:
Sec. 61. [EFFECTIVE DATE.]
Sections 2 to 4, 9, 13, 17, 18, 20, 25, 35, 36, 40, and 60,
paragraph (a), are effective for property taxes levied in 1992,
payable in 1993, and thereafter, except that the part of section
17 which strikes the number 225 and inserts the number 250 is
effective for taxes levied in 1991, payable in 1992, and
thereafter.
Section 5 is effective beginning with the 1992 sales ratio
study.
Sections 6, 10, 11, 15, 16, 31, 45, and 46 are effective
for property taxes levied in 1993, payable in 1994, and
thereafter.
Sections 7, 8, 24 and 60, paragraph (b), are effective for
hearings scheduled by the court after January 1, 1993.
Section 14 is effective the day following final enactment
and applies to property taxes payable in 1993 and thereafter by
property for which leasehold cooperative status had been claimed
before or after the effective date.
Section 18 is effective for assessment year 1992 and
thereafter, for taxes payable in 1993 and thereafter, provided
that for the assessment year 1992, for taxes payable in 1993,
the January 15, 1992, certification date in section 18 is
extended to June 15, 1992.
Section 22 is effective for referenda for taxes payable in
1993 and thereafter.
Sections 27 to 29, 39, 43, 49 to 51, 54 to 58 and 60,
paragraph (c), are effective the day following final enactment.
Section 34 is effective for abatements granted in 1992 and
thereafter.
Sections 41 and 42 are effective for collections made July
1, 1992, and thereafter.
Section 59 is effective the day following final enactment
and applies as provided in that section.
Sec. 47. [REPEALER.]
(a) Minnesota Statutes 1992, section 273.49, is repealed.
(b) Minnesota Statutes 1992, sections 274.19 and 274.20,
are repealed.
(c) Minnesota Statutes 1992, section 275.03, is repealed.
(d) Minnesota Statutes 1992, section 277.011, is repealed.
(e) Minnesota Statutes 1992, section 348.03, is repealed.
Sec. 48. [INSTRUCTIONS TO REVISOR.]
Subdivision 1. In the next edition of Minnesota Statutes,
the revisor shall change the headings for chapters 277 and 278
to reflect that personal property and real property ad valorem
valuation and tax objections are handled under chapter 278.
Subd. 2. In the next edition of Minnesota Statutes, the
revisor shall replace the phrase "section 274.19" as it appears
in sections 168.012, subdivision 9; 271.06, subdivision 1;
271.09, subdivision 3; 273.123, subdivision 1; 277.01,
subdivision 1; 290A.04, subdivision 3; and 290A.07, subdivision
2a; with the phrase "section 273.125." This instruction applies
even if the phrase "section 274.19" is a part of a larger
citation or reference in the above-listed sections of the
statutes.
Sec. 49. [EFFECTIVE DATE.]
Sections 1, 10, 11, 39 to 43, 47, paragraph (e), and 48,
are effective the day following final enactment. Section 46 is
effective for taxes payable in 1992 and thereafter. Sections 2,
3, 12, 22, 24, 31, and 47, paragraph (a), are effective for
taxes payable in 1993 and thereafter. Sections 5, 6, 7, 9, 13
to 16, 26, 27, 29, 32 to 37, and 47, paragraph (d), are
effective for taxes payable in 1994 and thereafter. Section 23
is effective July 1, 1993. Section 30 is effective July 1,
1993, for taxes payable in 1992 and thereafter. Sections 17,
20, and 44 are effective for aids payable in 1992 and thereafter.
Sections 18 and 19 are effective for aids payable in 1993 and
thereafter. Section 21 is effective for aids payable in 1994
and thereafter. Section 8 is effective for forfeitures, tax
sales, and repurchases occurring on or after January 1, 1994.
Section 47, paragraph (b), is effective for taxes and aids
payable in 1994 and thereafter.
ARTICLE 4
LOCAL AIDS
Section 1. Minnesota Statutes 1992, section 16A.712, is
amended to read:
16A.712 [LOCAL GOVERNMENT TRUST; APPROPRIATIONS IN FISCAL
YEAR 1993 AND SUBSEQUENT YEARS.]
(a) The amounts necessary to make the following payments in
fiscal year 1993 and subsequent years are appropriated from the
local government trust fund to the commissioner of revenue
unless otherwise specified:
(1) attached machinery aid to counties under section
273.138;
(2) in fiscal year 1993 only, supplemental homestead credit
under section 273.1391;
(3) $560,000 in fiscal year 1993 and $300,000 annually in
fiscal years 1994 and 1995 for tax administration;
(4) $105,000 annually to the commissioner of finance in
fiscal years 1993, 1994, and 1995 to administer the trust fund;
(5) $25,000 annually to the advisory commission on
intergovernmental relations in fiscal years 1993, 1994, and 1995
to pay nonlegislative members' per diem expenses and such other
expenses as the commission deems appropriate;
(6) $350,000 in fiscal year 1993 and $1,200,000 annually in
fiscal years 1994 and year 1995 to the intergovernmental
information systems advisory council to develop a local
government financial reporting system, with the participation
and ongoing oversight of the legislative commission on planning
and fiscal policy; and
(7) in fiscal year 1993 only, the transition credit under
section 273.1398, subdivision 5, and the disparity reduction
credit under section 273.1398, subdivision 4, for school
districts. The school districts' transition credit and
disparity reduction credit shall be appropriated to the
commissioner of education.
(b) In addition, the legislature shall appropriate the rest
of the trust fund receipts for fiscal year 1993 and subsequent
years to finance intergovernmental aid formulas or programs
prescribed by law.
Sec. 2. Minnesota Statutes 1992, section 256E.06,
subdivision 12, is amended to read:
Subd. 12. [APPROPRIATION.] $51,566,000 is appropriated
from the local government trust fund in fiscal year 1993 and
$53,113,000 annually, $50,762,000 in fiscal years year 1994,
and $49,499,000 in fiscal year 1995, and thereafter to the
commissioner of human services for payment of aid under this
section. Notwithstanding subdivisions 1 and 2, the increased
appropriation available in fiscal year 1994 and thereafter shall
be used to increase each county's aid proportionately over the
aid received in calendar year 1992. For calendar year 1993
only, each county's aid will be adjusted appropriately to
reflect the increase that is dictated to occur in the second
half of the calendar year.
Sec. 3. Minnesota Statutes 1992, 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 local tax rates.
(c) "Gross tax capacity" means the product of the gross
class rates and 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, (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. Gross tax capacity cannot be
less than zero.
(d) "Net tax capacity" means the product of (i) the
appropriate net class rates for the year in which the aid is
payable, except that for aids payable in 1992 the class rate
applied to class 4b property shall be 2.9 percent; the class
rate applied to class 4a property shall be 3.55 percent; the
class rate applied to noncommercial seasonal recreational
residential property shall be 2.25 percent; and the class rates
applied to portions of class 1a, 1b, and 2a property shall be 2
percent for the market value between $68,000 and $110,000 and
2.5 percent for the market value over $110,000; for aid payable
in 1993 the class rate applicable to class 4a shall be 3.5
percent; and the class rate applicable to class 4b shall be 2.65
percent; and for aid payable in 1994 the class rate applicable
to class 4b shall be 2.4 percent, and (ii) estimated market
values for the assessment two years prior to that in which aid
is payable. The reclassification of mobile home parks as class
4c shall not be considered in determining net tax capacity for
purposes of this paragraph for aids payable in 1991 or 1992.
Any reclassification of property by Laws 1991, chapter 291,
shall not be considered in determining net tax capacity for aids
payable in 1992. "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, (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 shall
be multiplied by 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) (d) "Previous net tax capacity" means the product of
the appropriate net class rates for the year previous to the
year in which the aid is payable, and estimated market values
for the assessment two years prior to that in which aid is
payable. "Total previous net tax capacity" means the previous
net tax capacities for all property within the unique taxing
jurisdiction. The total previous net tax capacity shall be
reduced by the sum of (1) the unique taxing jurisdiction's
previous 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, (2) the
previous net tax capacity of the captured value of tax increment
financing districts as defined in section 469.177, subdivision
2, and (3) the previous net tax capacity of transmission lines
deducted from a local government's total net tax capacity under
section 273.425. Previous net tax capacity cannot be less than
zero.
(f) (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. The equalized market values
shall equal the unequalized market values divided by the
assessment sales ratio.
(g) "1989 local tax rate" means 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 subdivision 2a. For
purposes of computation of the local tax rate only, gross taxes
shall not be adjusted by inflation or household growth.
(h) (f) "Equalized school levies" means the amounts levied
for:
(1) general education under section 124A.23, subdivision 2;
(2) supplemental revenue under section 124A.22, subdivision
8a;
(3) capital expenditure facilities revenue under section
124.243, subdivision 3;
(4) capital expenditure equipment revenue under section
124.244, subdivision 2; and
(5) basic transportation under section 124.226, subdivision
1.
(g) "Current local tax rate" means the quotient derived by
dividing the taxes levied within a unique taxing jurisdiction
for taxes payable in the year prior to that for which aids are
being calculated by the net tax capacity of the unique taxing
jurisdiction.
(i) 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 1989 local tax rate; (ii) its total net tax
capacity; and (iii) 0.9767.
(j) (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," "gross
taxes," or "taxes levied" means the total 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. Gross taxes levied on all properties or gross
taxes are before reduction by any credits for taxes payable in
1989. "Gross taxes" are before any reduction for disparity
reduction aid but "taxes levied" are after any reduction for
disparity reduction aid. Gross taxes levied or taxes levied
cannot be less than zero.
"Taxes levied" excludes actual amounts levied for purposes
listed in subdivision 2a equalized school levies.
(k) (i) "Human services aids" means:
(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;
(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.
(l) "Cost-of-living adjustment factor" means the greater of
one or one plus the percentage increase in the consumer price
index minus .36 percent. In no case may the cost of living
adjustment factor exceed 1.0394.
(m) The percentage increase in the consumer price index
means 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.
(n) "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.
(o) "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.
(p) (j) "Household adjustment factor" means the number of
households for the second most recent year preceding that in
which the aids are payable divided by the number of households
for the third most recent year. The household adjustment factor
cannot be less than one.
(q) (k) "Growth adjustment factor" means the household
adjustment factor in the case of counties, cities, and towns.
In the case of school districts the growth adjustment factor
means the average daily membership of the school district under
section 124.17, subdivision 2, for the school year ending in the
second most recent year preceding that in which the aids are
payable divided by the average daily membership for the third
most recent year. In the case of cities, towns, school
districts, and special taxing districts, the growth adjustment
factor equals one. The growth adjustment factor cannot be less
than one.
(r) (l) For aid payable in 1992 and subsequent years,
"homestead and agricultural credit base" means the previous
year's certified homestead and agricultural credit aid
determined under subdivision 2 less any permanent aid reduction
in the previous year to homestead and agricultural credit aid
under section 477A.0132, plus, for aid payable in 1992, fiscal
disparity homestead and agricultural credit aid under
subdivision 2b.
(s) (m) "Net tax capacity adjustment" means (1) the total
previous net tax capacity minus the total net tax capacity,
multiplied by (2) the unique taxing jurisdiction's current local
tax rate. The net tax capacity adjustment cannot be less than
zero.
(t) (n) "Fiscal disparity adjustment" means the difference
between (1) a taxing jurisdiction's fiscal disparity
distribution levy under section 473F.08, subdivision 3, clause
(a), for taxes payable in the year prior to that for which aids
are being calculated, and (2) the same distribution levy
multiplied by the ratio of the highest class rate for class 3
property for taxes payable in the year prior to that for which
aids are being calculated to the highest class rate for class 3
property for taxes payable in the second prior year to that for
which aids are being calculated. In the case of school
districts, the fiscal disparity distribution levy shall exclude
that part of the levy attributable to equalized school levies as
defined in subdivision 2a.
Sec. 4. Minnesota Statutes 1992, section 273.1398,
subdivision 2, is amended to read:
Subd. 2. [HOMESTEAD AND AGRICULTURAL CREDIT AID.] (a) For
aid payable in 1991, Homestead and agricultural credit aid for
each unique taxing jurisdiction equals the total gross taxes
levied on all properties, minus the unique taxing jurisdiction's
subtraction factor. The commissioner of revenue may, in
computing the amount of the homestead and agricultural credit
aid paid in 1990 and subsequent years, 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.
(b)(1) The 1990 and 1991 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. The net tax capacity
adjustment is allocated to each local government levying taxes
in the unique taxing jurisdiction in the proportion that the
local government's taxes levied bears to the total taxes levied
in 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.
(c) 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
1991 shall be reduced by the amount provided in section
477A.012, subdivisions 3, paragraph (d), 4, paragraph (d), and 5.
(e) Payments under this subdivision to towns in 1990 and
1991 shall be reduced by the amount of the homestead and
agricultural credit aid adjustment, if any, determined for 1990
under section 477A.013, subdivision 6.
(f) Payments under this subdivision to cities in 1990 and
1991 shall be reduced by the amount of the homestead and
agricultural credit aid adjustment, if any, determined for 1990
under section 477A.013, subdivisions 6 and 7.
(g) Payments under this subdivision to special taxing
districts, excluding hospital districts and the regional transit
board defined in section 473.373, in 1990 and 1991 shall be
reduced by an amount equal to 2.35 percent of the amount levied
for taxes payable in 1990, before reduction for homestead and
agricultural credit aid and disparity reduction aid. Payments
under this subdivision to the regional transit board in 1990 and
1991 shall be reduced by $450,000.
(h) Payments under this subdivision to all taxing
jurisdictions in 1992 and subsequent years are equal to the
product of (1) the homestead and agricultural credit aid base,
and (2) the growth adjustment factor, plus the net tax capacity
adjustment and the fiscal disparity adjustment.
Sec. 5. Minnesota Statutes 1992, section 273.1398, is
amended by adding a subdivision to read:
Subd. 3a. [DISPARITY REDUCTION AID TO CITIES.]
Notwithstanding the provisions of subdivision 3 or section
275.08, subdivision 1d, the amount of disparity reduction aid
for a city for aid payable in calendar year 1994 and thereafter
is zero, and the local tax rate for taxes payable in 1994 and
thereafter for a city shall not be adjusted under section
275.08, subdivision 1d. For purposes of this subdivision, city
means a statutory or home rule charter city.
Sec. 6. Minnesota Statutes 1992, section 275.07,
subdivision 1, is amended to read:
Subdivision 1. The taxes voted by cities, counties, school
districts, and special districts shall be certified by the
proper authorities to the county auditor on or before five
working days after December 20 in each year. A town must
certify the levy adopted by the town board to the county auditor
by September 1 each year. If the town board modifies the levy
at a special town meeting after September 1, the town board must
recertify its levy to the county auditor on or before five
working days after December 20. The taxes certified shall not
be adjusted reduced by the aid received under sections 273.1398,
subdivisions 2 and 3, and 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.
Sec. 7. Minnesota Statutes 1992, section 275.07, is
amended by adding a subdivision to read:
Subd. 1a. [APPLICATION OF LIMITATIONS.] Any limitation
upon the amount that may be levied by a local taxing
jurisdiction shall apply to the sum of the levy as certified
under subdivision 1 plus the certified homestead and
agricultural credit aid amount under section 273.1398,
subdivision 2, unless the commissioner of revenue certifies to
the county auditor that the limitation applies to the levy under
subdivision 1 only.
Sec. 8. Minnesota Statutes 1992, 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 are not eligible to be treated
as cities for purposes of aid payable under section 477A.013,
subdivision 5, or the aid adjustment under section 477A.013,
subdivision 7.
Sec. 9. Minnesota Statutes 1992, section 477A.011,
subdivision 20, is amended to read:
Subd. 20. [CITY NET TAX CAPACITY.] "City net 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, and the market values for aids payable in 1990
and the net tax capacity rates listed in Minnesota Statutes 1989
Supplement, 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, taxes payable in the year prior to the aid
distribution plus (2) a city's levy on the fiscal disparities
distribution tax capacity under section 473F.08, subdivision 3
2, paragraph (a) (b), for taxes payable in the year prior to
that for which aids are being calculated. The market value
utilized in computing city 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 city net tax capacity will be
computed using equalized market values.
Sec. 10. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 30. [PRE-1940 HOUSING PERCENTAGE.] "Pre-1940 housing
percentage" for a city is 100 times the most recent federal
census count of all housing units in the city built before 1940,
divided by the total number of all housing units in the city.
Housing units includes both occupied and vacant housing units as
defined by the federal census.
Sec. 11. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 31. [POPULATION DECLINE PERCENTAGE.] "Population
decline percentage" for a city is the percent decline in a
city's population for the last ten years, based on the most
recently available population estimate from the state
demographer or a federal census. A city's population decline
percentage cannot be less than zero.
Sec. 12. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 32. [COMMERCIAL INDUSTRIAL PERCENTAGE.] "Commercial
industrial percentage" for a city is 100 times the sum of the
estimated market values of all real property in the city
classified as class 3 under section 273.13, subdivision 24,
excluding public utility property, to the total market value of
all taxable real and personal property in the city. The market
values are the amounts computed before any adjustments for
fiscal disparities under section 473F.08. The market values
used for this subdivision are not equalized.
Sec. 13. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 33. [TRANSFORMED POPULATION.] "Transformed
population" for a city is the city population raised to the
.3308 power, times 30.5485.
Sec. 14. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 34. [CITY REVENUE NEED.] (a) For a city with a
population equal to or greater than 2,500, "city revenue need"
is the sum of (1) 3.462312 times the pre-1940 housing
percentage; plus (2) 2.093826 times the commercial industrial
percentage; plus (3) 6.862552 times the population decline
percentage; plus (4) .00026 times the city population; plus (5)
152.0141.
(b) For a city with a population less than 2,500, "city
revenue need" is the sum of (1) 1.795919 times the pre-1940
housing percentage; plus (2) 1.562138 times the commercial
industrial percentage; plus (3) 4.177568 times the population
decline percentage; plus (4) 1.04013 times the transformed
population; minus (5) 107.475.
(c) The city revenue need cannot be less than zero.
(d) For calendar year 1995 and subsequent years, the city
revenue need for a city, as determined in paragraphs (a) to (c),
is multiplied by the ratio of the annual implicit price deflator
for state and local government purchases, as prepared by the
United States Department of Commerce, for the most recently
available year to the 1993 implicit price deflator for state and
local government purchases.
Sec. 15. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 35. [TAX EFFORT RATE.] "Tax effort rate" means the
sum of the net levy for all cities divided by the sum of the
city net tax capacity for all cities. For purposes of this
section, "net levy" means the city levy, after all adjustments,
used for calculating the local tax rate under section 275.08 for
taxes payable in the year prior to the aid distribution. The
fiscal disparity distribution levy is included in net levy.
Sec. 16. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 36. [CITY AID BASE.] "City aid base" means, for each
city, the sum of the local government aid and equalization aid
it was originally certified to receive in calendar year 1993
under Minnesota Statutes 1992, section 477A.013, subdivisions 3
and 5, and the amount of disparity reduction aid it received in
calendar year 1993 under Minnesota Statutes 1992, section
273.1398, subdivision 3.
Sec. 17. Minnesota Statutes 1992, section 477A.011, is
amended by adding a subdivision to read:
Subd. 37. [BASE REDUCTION PERCENTAGE.] "Base reduction
percentage" is (1) the difference between the amount available
for city aid under section 477A.03 for the year for which aid is
being calculated and the amount available for city aid under
section 477A.03 for calendar year 1994, (2) divided by the sum
of the city aid base for all cities and (3) multiplied by 100.
The reduction percentage for any year may not be less than the
reduction percentage from the previous year. For aid paid in
calendar year 1994, the reduction percentage is zero. The
reduction percentage may not be more than 100 percent.
Sec. 18. Minnesota Statutes 1992, section 477A.013, is
amended by adding a subdivision to read:
Subd. 8. [CITY AID INCREASE.] (a) In calendar year 1994
and subsequent years, the aid increase for a city is equal to
the need increase percentage multiplied by the difference
between (1) the city's revenue need multiplied by its
population, and (2) the city's net tax capacity multiplied by
the tax effort rate. The need increase percentage must be the
same for all cities and must be calculated by the department of
revenue so that the total of the aid under subdivision 9 equals
the total amount available for aid under section 477A.03,
subdivision 1.
(b) The percentage aid increase for a first class city in
calendar year 1994 must not exceed the percentage increase in
the sum of calendar year 1994 city aids under this section
compared to the sum of the city aid base for all cities. The
aid increase for any other city in 1994 must not exceed five
percent of the city's net levy for taxes payable in 1993.
(c) The aid increase in calendar year 1995 and subsequent
years for any city must not exceed the sum of (1) ten percent of
the city's net levy for the year prior to the aid distribution
plus (2) its city aid base multiplied by the base reduction
percentage.
Sec. 19. Minnesota Statutes 1992, section 477A.013, is
amended by adding a subdivision to read:
Subd. 9. [CITY AID DISTRIBUTION.] In calendar year 1994
and thereafter, each city shall receive an aid distribution
equal to the sum of (1) the city aid increase under subdivision
8, and (2) its city aid base multiplied by a percentage equal to
100 minus the base reduction percentage.
Sec. 20. Minnesota Statutes 1992, section 477A.03,
subdivision 1, is amended to read:
Subdivision 1. [ANNUAL APPROPRIATION.] A sum sufficient to
discharge the duties imposed by sections 477A.011 to 477A.014 is
annually appropriated from the local government trust fund to
the commissioner of revenue. For aids payable in 1993 and
thereafter, the total amount of equalization aid paid under
section 477A.013, subdivision 5, is limited to $20,011,000. For
aid payable in 1994 and thereafter, the total aid paid to cities
under section 477A.013, subdivision 9, is limited to
$330,636,900.
In 1993 and subsequent years, $8,400,000 per year is
appropriated from the local government trust fund to make
payments under section 477A.0121.
Sec. 21. [REPEALER.]
Minnesota Statutes 1992, sections 273.1398, subdivision 5;
and 275.07, subdivision 3, are repealed.
Minnesota Statutes 1992, sections 477A.011, subdivisions
3a, 15, 16, 17, 18, 22, 23, 25, and 26; and 477A.013,
subdivisions 2, 3, and 5, are repealed.
Sec. 22. [EFFECTIVE DATE.]
Section 2 is effective July 1, 1993. Sections 3 to 21 are
effective for property taxes and aids payable in 1994, and
thereafter.
ARTICLE 5
PROPERTY TAXES
Section 1. Minnesota Statutes 1992, section 82.19, is
amended by adding a subdivision to read:
Subd. 9. [DISCLOSURE OF VALUATION EXCLUSION.] No real
estate broker or salesperson shall sell or offer for sale
property that, for purposes of property taxation, has an
exclusion from market value for home improvements under section
273.11, subdivision 16, without disclosing to the buyer the
existence of the excluded valuation and informing the buyer that
the exclusion will end upon the sale of the property and that
the property's estimated market value for property tax purposes
will increase accordingly.
Sec. 2. Minnesota Statutes 1992, section 272.01,
subdivision 3, is amended to read:
Subd. 3. The provisions of subdivision 2 shall not apply
to:
(a) Federal property for which payments are made in lieu of
taxes in amounts equivalent to taxes which might otherwise be
lawfully assessed;
(b) Real estate exempt from ad valorem taxes and taxes in
lieu thereof which is leased, loaned, or otherwise made
available to telephone companies or electric, light and power
companies upon which personal property consisting of
transmission and distribution lines is situated and assessed
pursuant to sections 273.37, 273.38, 273.40 and 273.41, or upon
which are situated the communication lines of express, railway,
telephone or telegraph companies, and or pipelines used for the
transmission and distribution of petroleum products, or the
equipment items of a cable communications company subject to
sections 238.35 to 238.42;
(c) Property presently owned by any educational institution
chartered by the territorial legislature;
(d) Indian lands;
(e) Property of any corporation organized as a tribal
corporation under the Indian Reorganization Act of June 18,
1934, (Statutes at Large, volume 48, page 984);
(f) Real property owned by the state and leased pursuant to
section 161.23 or 161.431, and acts amendatory thereto;
(g) Real property owned by a seaway port authority on June
1, 1967, upon which there has been constructed docks,
warehouses, tank farms, administrative and maintenance
buildings, railroad and ship terminal facilities and other
maritime and transportation facilities or those directly related
thereto, together with facilities for the handling of passengers
and baggage and for the handling of freight and bulk liquids,
and personal property owned by a seaway port authority used or
usable in connection therewith, when said property is leased to
a private individual, association or corporation, but only when
such lease provides that the said facilities are available to
the public for the loading and unloading of passengers and their
baggage and the handling, storage, care, shipment, and delivery
of merchandise, freight and baggage and other maritime and
transportation activities and functions directly related
thereto, but not including property used for grain elevator
facilities; it being the declared policy of this state that such
property when so leased is public property used exclusively for
a public purpose, notwithstanding the one-year limitation in the
provisions of section 273.19;
(h) Notwithstanding the provisions of clause (g), when the
annual rental received by a seaway port authority in any
calendar year for such leased property exceeds an amount
reasonably required for administrative expense of the authority
per year, plus promotional expense for the authority not to
exceed the sum of $100,000 per year, to be expended when and in
the manner decided upon by the commissioners, plus an amount
sufficient to pay all installments of principal and interest
due, or to become due, during such calendar year and the next
succeeding year on any revenue bonds issued by the authority,
plus 25 percent of the gross annual rental to be retained by the
authority for improvement, development, or other contingencies,
the authority shall make a payment in lieu of real and personal
property taxes of a reasonable portion of the remaining annual
rental to the county treasurer of the county in which such
seaway port authority is principally located. Any such payments
to the county treasurer shall be disbursed by the treasurer on
the same basis as real estate taxes are divided among the
various governmental units, but if such port authority shall
have received funds from the state of Minnesota and funds from
any city and county pursuant to Laws 1957, chapters 648, 831,
and 849 and acts amendatory thereof, then such disbursement by
the county treasurer shall be on the same basis as real estate
taxes are divided among the various governmental units, except
that the portion of such payments which would otherwise go to
other taxing units shall be divided equally among the state of
Minnesota and said county and city.
Sec. 3. Minnesota Statutes 1992, 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), other than those that qualify for
exemption under clause (25);
(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, including
storage sheds, decks, and similar removable improvements
constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section
274.19, subdivision 8, paragraph (f); and
(f) flight property as defined in section 270.071.
(9) Personal property used primarily for the abatement and
control of air, water, or land pollution to the extent that it
is so used, and real property which is used primarily for
abatement and control of air, water, or land pollution as part
of an agricultural operation, as a part of a centralized
treatment and recovery facility operating under a permit issued
by the Minnesota pollution control agency pursuant to chapters
115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730,
and 7045.0020 to 7045.1260, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals,
oils, chemicals, water, sludges, or inorganic materials from
hazardous industrial wastes, 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 real property or 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: (i) land described in section 103G.005,
subdivision 18; (ii) 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; or (iii) land in a wetland preservation area
under sections 103F.612 to 103F.616. "Wetlands" under items (i)
and (ii) include adjacent land which is not suitable for
agricultural purposes due to the presence of the wetlands, but
do 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
103G.535.
(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 clause (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
have 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 individuals,
couples, or families. (ii) It has the purpose of reuniting
families and enabling parents or individuals 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
three 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 owned and operated or under lease from a unit
of government or governmental agency under a property
disposition program and operated by one or more organizations
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.
(20) Real and personal property, including leasehold or
other personal property interests, owned and operated by a
corporation if more than 50 percent of the total voting power of
the stock of the corporation is owned collectively by: (i) the
board of regents of the University of Minnesota, (ii) the
University of Minnesota Foundation, an organization exempt from
federal income taxation under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended through December 31, 1990, and
(iii) a corporation organized under chapter 317A, which by its
articles of incorporation is prohibited from providing pecuniary
gain to any person or entity other than the regents of the
University of Minnesota; which property is used primarily to
manage or provide goods, services, or facilities utilizing or
relating to large-scale advanced scientific computing resources
to the regents of the University of Minnesota and others.
(21) Wind energy conversion systems, as defined in section
216C.06, subdivision 12, installed after January 1, 1991, and
used as an electric power source.
(22) Containment tanks, cache basins, and that portion of
the structure needed for the containment facility used to
confine agricultural chemicals as defined in section 18D.01,
subdivision 3, as required by the commissioner of agriculture
under chapter 18B or 18C.
(23) Photovoltaic devices, as defined in section 216C.06,
subdivision 13, installed after January 1, 1992, and used to
produce or store electric power.
(24) 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 for an ice arena or ice rink, and used
primarily for youth and high school programs.
(25) A structure that is situated on real property that is
used for:
(i) housing for the elderly or for low- and moderate-income
families as defined in Title II of the National Housing Act, as
amended through December 31, 1990, and funded by a direct
federal loan or federally insured loan made pursuant to Title II
of the act; or
(ii) 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 which meets each of
the following criteria:
(A) is owned by an entity which is operated as a nonprofit
corporation organized under chapter 317A;
(B) is owned by an entity which has not entered into a
housing assistance payments contract under section 8 of the
United States Housing Act of 1937, or, if the entity which owns
the structure has entered into a housing assistance payments
contract under section 8 of the United States Housing Act of
1937, the contract provides assistance for less than 90 percent
of the dwelling units in the structure, excluding dwelling units
intended for management or maintenance personnel;
(C) operates an on-site congregate dining program in which
participation by residents is mandatory, and provides assisted
living or similar social and physical support services for
residents; and
(D) was not assessed and did not pay tax under chapter 273
prior to the 1991 levy, while meeting the other conditions of
this clause.
An exemption under this clause remains in effect for taxes
levied in each year or partial year of the term of its permanent
financing.
(26) Real and personal property that is located in the
Superior National Forest, and owned or leased and operated by a
nonprofit organization that is exempt from federal income
taxation under section 501(c)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1992, and primarily used
to provide recreational opportunities for disabled veterans and
their families.
Sec. 4. Minnesota Statutes 1992, section 272.02,
subdivision 4, is amended to read:
Subd. 4. [CONVERSION TO EXEMPT OR TAXABLE USES.] (a) Any
property exempt from taxation on January 2 of any year which,
due to sale or other reason, loses its exemption prior to July 1
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 July
1, the intended use of the property, determined by the county
assessor, based upon all relevant facts.
(b) Property subject to tax on January 2 that is acquired
by a governmental entity, institution of purely public charity,
church, or educational institution before July 1 of the year is
exempt for that assessment year if (1) the property is to be
used for an exempt purpose under subdivision 1, clauses (1) to
(7), and (2) the property is not subject to the filing
requirement under section 272.025.
Sec. 5. Minnesota Statutes 1992, section 272.115,
subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 1a,
Whenever any real estate is sold 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 when the deed or other
document is presented for recording. Contract for deeds are
subject to recording under section 507.235, subdivision 1.
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. 6. Minnesota Statutes 1992, section 272.115,
subdivision 4, is amended to read:
Subd. 4. No real estate sold or transferred on or after
January 1, 1993, under subdivision 1a 1 shall be classified as a
homestead, unless a certificate of value has been filed with the
county auditor in accordance with this section.
This subdivision shall apply to any real estate taxes that
are payable the year or years following the sale or transfer of
the property.
Sec. 7. Minnesota Statutes 1992, section 273.061,
subdivision 8, is amended to read:
Subd. 8. [POWERS AND DUTIES.] The county assessor shall
have the following powers and duties:
(1) To call upon and confer with the township and city
assessors in the county, and advise and give them the necessary
instructions and directions as to their duties under the laws of
this state, to the end that a uniform assessment of all real
property in the county will be attained.
(2) To assist and instruct the local assessors in the
preparation and proper use of land maps and record cards, in the
property classification of real and personal property, and in
the determination of proper standards of value.
(3) To keep the local assessors in the county advised of
all changes in assessment laws and all instructions which the
assessor receives from the commissioner of revenue relating to
their duties.
(4) To have authority to require the attendance of groups
of local assessors at sectional meetings called by the assessor
for the purpose of giving them further assistance and
instruction as to their duties.
(5) To immediately commence the preparation of a large
scale topographical land map of the county, in such form as may
be prescribed by the commissioner of revenue, showing thereon
the location of all railroads, highways and roads, bridges,
rivers and lakes, swamp areas, wooded tracts, stony ridges and
other features which might affect the value of the land.
Appropriate symbols shall be used to indicate the best, the
fair, and the poor land of the county. For use in connection
with the topographical land map, the assessor shall prepare and
keep available in the assessor's office tables showing fair
average minimum and maximum market values per acre of
cultivated, meadow, pasture, cutover, timber and waste lands of
each township. The assessor shall keep the map and tables
available in the office for the guidance of town assessors,
boards of review, and the county board of equalization.
(6) To also prepare and keep available in the office for
the guidance of town assessors, boards of review and the county
board of equalization, a land valuation map of the county, in
such form as may be prescribed by the commissioner of revenue.
This map, which shall include the bordering tier of townships of
each county adjoining, shall show the average market value per
acre, both with and without improvements, as finally equalized
in the last assessment of real estate, of all land in each town
or unorganized township which lies outside the corporate limits
of cities.
(7) To regularly examine all conveyances of land outside
the corporate limits of cities of the first and second class,
filed with the county recorder of the county, and keep a file,
by descriptions, of the considerations shown thereon. From the
information obtained by comparing the considerations shown with
the market values assessed, the assessor shall make
recommendations to the county board of equalization of necessary
changes in individual assessments or aggregate valuations.
(8) To prepare annually and keep available in the
assessor's office for the guidance of boards of review and the
county board of equalization, a table showing the market value
per capita of all personal property in each assessment district
in the county as finally equalized in the last previous
assessment of personal property. For the guidance of the county
board of equalization, the assessor shall also add to the table
the market value per capita of all personal property of each
assessment district for the current year as equalized by the
local board of review.
(9) To become familiar with the values of the different
items of personal property so as to be in a position when called
upon to advise the boards of review and the county board of
equalization concerning property, market values thereof.
(10) While the county board of equalization is in session,
to give it every possible assistance to enable it to perform its
duties. The assessor shall furnish the board with all necessary
charts, tables, comparisons, and data which it requires in its
deliberations, and shall make whatever investigations the board
may desire.
(11) At the request of either the board of county
commissioners or the commissioner of revenue, to investigate
applications for reductions of valuation and abatements and
settlements of taxes, examine the real or personal property
involved, and submit written reports and recommendations with
respect to the applications, in such form as may be prescribed
by the board of county commissioners and commissioner of revenue.
(12) To make diligent search each year for real and
personal property which has been omitted from assessment in the
county, and report all such omissions to the county auditor.
(13) To regularly confer with county assessors in all
adjacent counties about the assessment of property in order to
uniformly assess and equalize the value of similar properties
and classes of property located in adjacent counties. The
conference shall emphasize the assessment of agricultural and
commercial and industrial property or other properties that may
have an inadequate number of sales in a single county.
(14) To render such other services pertaining to the
assessment of real and personal property in the county as are
not inconsistent with the duties set forth in this section, and
as may be required by the board of county commissioners or by
the commissioner of revenue.
(15) To maintain a record, in conjunction with other county
offices, of all transfers of property to assist in determining
the proper classification of property, including but not limited
to, transferring homestead property and name changes on
homestead property.
(16) To determine if a homestead application is required
due to the transfer of homestead property or an owner's name
change on homestead property.
Sec. 8. Minnesota Statutes 1992, section 273.11,
subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] Except as provided in
subdivisions 6, 8, 9, 11, and 14 this section or section 273.17,
subdivision 1, all property shall be valued at its market
value. The market value as determined pursuant to this section
shall be stated such that any amount under $100 is rounded up to
$100 and any amount exceeding $100 shall be rounded to the
nearest $100. In estimating and determining such value, the
assessor shall not adopt a lower or different standard of value
because the same is to serve as a basis of taxation, nor shall
the assessor adopt as a criterion of value the price for which
such property would sell at a forced sale, or in the aggregate
with all the property in the town or district; but the assessor
shall value each article or description of property by itself,
and at such sum or price as the assessor believes the same to be
fairly worth in money. The assessor shall take into account the
effect on the market value of property of environmental factors
in the vicinity of the property. In assessing any tract or lot
of real property, the value of the land, exclusive of structures
and improvements, shall be determined, and also the value of all
structures and improvements thereon, and the aggregate value of
the property, including all structures and improvements,
excluding the value of crops growing upon cultivated land. In
valuing real property upon which there is a mine or quarry, it
shall be valued at such price as such property, including the
mine or quarry, would sell for a fair, voluntary sale, for
cash. In valuing real property which is vacant, platted
property shall be assessed as provided in subdivision 14. All
property, or the use thereof, which is taxable under section
272.01, subdivision 2, or 273.19, shall be valued at the market
value of such property and not at the value of a leasehold
estate in such property, or at some lesser value than its market
value.
Sec. 9. Minnesota Statutes 1992, section 273.11, is
amended by adding a subdivision to read:
Subd. 1a. [LIMITED MARKET VALUE.] In the case of all
property classified as agricultural homestead or nonhomestead,
residential homestead or nonhomestead, or noncommercial seasonal
recreational residential, the assessor shall compare the value
with that determined in the preceding assessment. The amount of
the increase entered in the current assessment shall not exceed
the greater of (1) ten percent of the value in the preceding
assessment, or (2) one-third of the difference between the
current assessment and the preceding assessment. This
limitation shall not apply to increases in value due to
improvements. For purposes of this subdivision, the term
"assessment" means the value prior to any exclusion under
section 273.11, subdivision 16.
The provisions of this subdivision shall be in effect only
for assessment years 1993 through 1998.
For purposes of the assessment/sales ratio study conducted
under section 124.2131, and the computation of state aids paid
under chapters 124, 124A, and 477A, market values and net tax
capacities determined under this subdivision and section 273.11,
subdivision 16, shall be used.
Sec. 10. Minnesota Statutes 1992, section 273.11,
subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other provision of law to the
contrary, the limitation contained in subdivision subdivisions 1
and 1a shall also apply to the authority of the local board of
review as provided in section 274.01, the county board of
equalization as provided in section 274.13, the state board of
equalization and the commissioner of revenue as provided in
sections 270.11, 270.12 and 270.16.
Sec. 11. Minnesota Statutes 1992, section 273.11,
subdivision 6a, is amended to read:
Subd. 6a. [RESIDENTIAL FIRE-SAFETY SPRINKLER SYSTEMS.] For
purposes of property taxation, the market value of automatic
fire-safety sprinkler systems installed in existing buildings
after January 1, 1992, meeting the standards of the Minnesota
fire code shall be excluded from the market value of (1)
existing multifamily 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 and (2) existing
real estate containing four or more contiguous residential units
for use by customers of the owner, such as hotels, motels, and
lodging houses and (3) existing office buildings or mixed use
commercial-residential buildings, in which at least one story
capable of occupancy is at least 75 feet above the ground. The
market value exclusion under this section shall expire if the
property is sold.
Sec. 12. Minnesota Statutes 1992, section 273.11, is
amended by adding a subdivision to read:
Subd. 15. [VACANT HOSPITALS.] In valuing a hospital, as
defined in section 144.50, subdivision 2, that is located
outside of a metropolitan county, as defined in section 473.121,
subdivision 4, and that on the date of sale is vacant and not
used for hospital purposes or for any other purpose, the
assessor's estimated market value for taxes levied in the year
of the sale shall be no greater than the sales price of the
property, including both the land and the buildings, as adjusted
for terms of financing. If the sale is made later than December
15, the market value as determined under this subdivision shall
be used for taxes levied in the following year. This
subdivision applies only if the sales price of the property was
determined under an arms length transaction.
Sec. 13. Minnesota Statutes 1992, section 273.11, is
amended by adding a subdivision to read:
Subd. 16. [VALUATION EXCLUSION FOR CERTAIN
IMPROVEMENTS.] Improvements to homestead property made before
January 2, 2003, shall be fully or partially excluded from the
value of the property for assessment purposes provided that the
house is at least 35 years old at the time of the improvement.
In the case of an owner-occupied duplex or triplex, the
improvement is eligible regardless of which portion of the
property was improved.
If the property lies in a jurisdiction which is subject to
a building permit process, a building permit must have been
issued covering the improvement. If the property lies in a
jurisdiction which is not subject to a building permit process,
the improvement must add at least $1,000 to the value of the
property. Only improvements to the structure which is the
residence of the qualifying homesteader or the garage qualify
for the provisions of this subdivision.
Whenever a building permit is issued for property currently
classified as homestead, the issuing jurisdiction shall notify
the assessor of the possibility of valuation exclusion under
this subdivision. The assessor may require an application
process and documentation of the age of the house from the
owner, if unknown.
The assessor shall note the qualifying value of each
improvement on the property's record, and the sum of those
amounts shall be subtracted from the value of the property in
each year for ten years after the improvement has been made, at
which time an amount equal to 20 percent of the qualifying value
shall be added back in each of the five subsequent assessment
years. The valuation exclusion shall terminate whenever (1) the
property is sold, or (2) the property is reclassified to a class
which does not qualify for treatment under this subdivision.
The total qualifying value for a homestead may not exceed
$50,000. The total qualifying value for a homestead with a
house that is less than 70 years old may not exceed $25,000.
The term "qualifying value" means the increase in estimated
market value resulting from the improvement if the improvement
occurs when the house is at least 70 years old, or one-half of
the increase in estimated market value resulting from the
improvement otherwise. The $25,000 and $50,000 maximum
qualifying value under this section may result from up to three
separate improvements to the homestead.
Sec. 14. Minnesota Statutes 1992, section 273.112,
subdivision 3, is amended to read:
Subd. 3. Real estate shall be entitled to valuation and
tax deferment under this section only if it is:
(a) actively and exclusively devoted to golf, skiing, or
archery or firearms range recreational use or uses and other
recreational uses carried on at the establishment;
(b) five acres in size or more, except in the case of an
archery or firearms range;
(c)(1) operated by private individuals and open to the
public; or
(2) operated by firms or corporations for the benefit of
employees or guests; or
(3) operated by private clubs having a membership of 50 or
more, provided that the club does not discriminate in membership
requirements or selection on the basis of sex or marital status;
and
(d) made available, in the case of real estate devoted to
golf, for use without discrimination on the basis of sex during
the time when the facility is open to use by the public or by
members, except that use for golf may be restricted on the basis
of sex no more frequently than one, or part of one, weekend each
calendar month for each sex and no more than two, or part of
two, weekdays each week for each sex.
If a golf club membership allows use of golf course
facilities by more than one adult per membership, the use must
be equally available to all adults entitled to use of the golf
course under the membership, except that use may be restricted
on the basis of sex as permitted in this section. Memberships
that permit play during restricted times may be allowed only if
the restricted times apply to all adults using the membership.
A golf club may not offer a membership or golfing privileges to
a spouse of a member that provides greater or less access to the
golf course than is provided to that person's spouse under the
same or a separate membership in that club, except that the
terms of a membership may provide that one spouse may have no
right to use the golf course at any time while the other spouse
may have either limited or unlimited access to the golf course.
A golf club may have or create an individual membership
category which entitles a member for a reduced rate to play
during restricted hours as established by the club. The club
must have on record a written request by the member for such
membership.
A golf club that has food or beverage facilities or
services must allow equal access to those facilities and
services for both men and women members in all membership
categories at all times. Nothing in this paragraph shall be
construed to require service or access to facilities to persons
under the age of 21 years or require any act that would violate
law or ordinance regarding sale, consumption, or regulation of
alcoholic beverages.
For purposes of this subdivision and subdivision 7a,
discrimination means a pattern or course of conduct and not
linked to an isolated incident.
Sec. 15. Minnesota Statutes 1992, section 273.112, is
amended by adding a subdivision to read:
Subd. 4a. Real estate devoted to golf and operated by a
private club that does not meet the requirements of subdivision
3, and is not eligible for valuation and deferment under this
section, must be valued for ad valorem tax purposes by the
assessor as if it were converted to commercial, industrial,
residential, or seasonal residential use and were platted and
available for sale as individual parcels.
Sec. 16. Minnesota Statutes 1992, section 273.121, is
amended to read:
273.121 [VALUATION OF REAL PROPERTY, NOTICE.]
Any county assessor or city assessor having the powers of a
county assessor, valuing or classifying taxable real property
shall in each year notify those persons whose property is to be
assessed or reclassified that year if the person's address is
known to the assessor, otherwise the occupant of the property.
The notice shall be in writing and shall be sent by ordinary
mail at least ten days before the meeting of the local board of
review or equalization. It shall contain: (1) the amount of
the valuation in terms of market value, (2) the limited market
value under section 273.11, subdivision 1a, (3) the qualifying
amount of any improvements under section 273.11, subdivision 16,
(4) the market value subject to taxation after subtracting the
amount of any qualifying improvements, (5) the new
classification, (6) the assessor's office address, and (7) the
dates, places, and times set for the meetings of the local board
of review or equalization and the county board of equalization.
If the assessment roll is not complete, the notice shall be sent
by ordinary mail at least ten days prior to the date on which
the board of review has adjourned. The assessor shall attach to
the assessment roll a statement that the notices required by
this section have been mailed. Any assessor who is not provided
sufficient funds from the assessor's governing body to provide
such notices, may make application to the commissioner of
revenue to finance such notices. The commissioner of revenue
shall conduct an investigation and, if satisfied that the
assessor does not have the necessary funds, issue a
certification to the commissioner of finance of the amount
necessary to provide such notices. The commissioner of finance
shall issue a warrant for such amount and shall deduct such
amount from any state payment to such county or municipality.
The necessary funds to make such payments are hereby
appropriated. Failure to receive the notice shall in no way
affect the validity of the assessment, the resulting tax, the
procedures of any board of review or equalization, or the
enforcement of delinquent taxes by statutory means.
Sec. 17. Minnesota Statutes 1992, section 273.124,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] (a) Residential real estate
that is occupied and used for the purposes of a homestead by its
owner, who must be a Minnesota resident, is a residential
homestead.
Agricultural land, as defined in section 273.13,
subdivision 23, that is occupied and used as a homestead by its
owner, who must be a Minnesota resident, is an agricultural
homestead.
Dates for establishment of a homestead and homestead
treatment provided to particular types of property are as
provided in this section.
The assessor shall require proof, as provided in
subdivision 13, of the facts upon which classification as a
homestead may be determined. Notwithstanding any other law, the
assessor may at any time require a homestead application to be
filed in order to verify that any property classified as a
homestead continues to be eligible for homestead status.
When there is a name change or a transfer of homestead
property, the assessor may reclassify the property in the next
assessment unless a homestead application is filed to verify
that the property continues to qualify for homestead
classification.
(b) For purposes of this section, homestead property shall
include property which is used for purposes of the homestead but
is separated from the homestead by a road, street, lot,
waterway, or other similar intervening property. The term "used
for purposes of the homestead" shall include but not be limited
to uses for gardens, garages, or other outbuildings commonly
associated with a homestead, but shall not include vacant land
held primarily for future development. In order to receive
homestead treatment for the noncontiguous property, the owner
shall apply for it to the assessor by July 1 of the year when
the treatment is initially sought. After initial qualification
for the homestead treatment, additional applications for
subsequent years are not required.
(c) Residential real estate that is occupied and used for
purposes of a homestead by a relative of the owner is a
homestead but only to the extent of the homestead treatment that
would be provided if the related owner occupied the property.
For purposes of this paragraph, "relative" means a parent,
stepparent, child, stepchild, spouse, grandparent, grandchild,
brother, sister, uncle, or aunt. This relationship may be by
blood or marriage. Property that was classified as seasonal
recreational residential property at the time when treatment
under this paragraph would first apply shall continue to be
classified as seasonal recreational residential property for the
first two four assessment years beginning after the date when
the relative of the owner occupies the property as a homestead;
this delay also applies to property that, in the absence of this
paragraph, would have been classified as seasonal recreational
residential property at the time when the residence was
constructed. Neither the related occupant nor the owner of the
property may claim a property tax refund under chapter 290A for
a homestead occupied by a relative. In the case of a residence
located on agricultural land, only the house, garage, and
immediately surrounding one acre of land shall be classified as
a homestead under this paragraph, except as provided in
paragraph (d).
(d) Agricultural property that is occupied and used for
purposes of a homestead by a relative of the owner, is a
homestead, only to the extent of the homestead treatment that
would be provided if the related owner occupied the property,
and only if all of the following criteria are met:
(1) the relative who is occupying the agricultural property
is a son or daughter of the owner of the agricultural property,
(2) the owner of the agricultural property must be a
Minnesota resident,
(3) the owner of the agricultural property is not eligible
to receive homestead treatment on any other agricultural
property in Minnesota, and
(4) the owner of the agricultural property is limited to
only one agricultural homestead per family under this paragraph.
For purposes of this paragraph, "agricultural property"
means the house, garage, other farm buildings and structures,
and agricultural land.
Application must be made to the assessor by the owner of
the agricultural property to receive homestead benefits under
this paragraph. The assessor may require the necessary proof
that the requirements under this paragraph have been met.
Sec. 18. Minnesota Statutes 1992, section 273.124, is
amended by adding a subdivision to read:
Subd. 6a. [PRELIMINARY APPROVAL OF LEASEHOLD
COOPERATIVES.] Preliminary approval for classification as a
leasehold cooperative may be granted to property when a
developer proposes to construct one or more residential
dwellings or buildings using funds provided by the Minnesota
housing finance agency if all of the following conditions are
met:
(a) The developer must present an affidavit to the county
attorney and to the governing body of the municipality that
includes a statement of the developer's intention to comply with
all requirements in subdivision 6 and a detailed description of
the plan for doing so.
(b) The commissioner of the Minnesota housing finance
agency must provide the county attorney and governing body with
a description of the financing and related terms the
commissioner proposes to provide with respect to the project,
together with an objective assessment of the likelihood that the
project will comply with the requirements of subdivision 6.
(c) The county attorney must review the materials provided
under paragraphs (a) and (b), and may require the developer or
the Minnesota housing finance agency to provide additional
information. If the county attorney determines that it is
reasonably likely that the project will meet the requirements of
this subdivision, the county attorney shall provide preliminary
approval to treatment of the property as a leasehold cooperative.
(d) The governing body shall conduct a public hearing as
provided in subdivision 6, paragraph (j), and make its
preliminary findings based on the information provided by the
developer and the Minnesota housing finance agency.
Upon completion of the project and creation of the
leasehold cooperative, actual compliance with the requirements
of this subdivision must be demonstrated, and certified by the
county attorney. A second hearing by the governing body is not
required.
If the county attorney finds that the homestead treatment
granted pursuant to a preliminary approval under this
subdivision must be revoked because the completed project failed
to meet the requirements of this subdivision, the benefits of
the treatment shall be recaptured. The county assessor shall
determine the amount by which the tax imposed on the property
was reduced because it was treated as a leasehold cooperative.
The developer shall be charged an amount equal to the tax
reduction received or, if the county attorney determines that
the failure to meet the requirements was due to the developer's
intentional disregard of the requirements, 150 percent of the
tax reduction received. The penalty must be paid to the county
treasurer within 90 days after receipt of a statement from the
treasurer. The proceeds of the penalty shall be distributed to
the local taxing jurisdictions in proportion to the amounts of
their levies on the property.
Sec. 19. Minnesota Statutes 1992, section 273.124,
subdivision 9, is amended to read:
Subd. 9. [HOMESTEAD ESTABLISHED AFTER ASSESSMENT DATE.]
Any property that was not used for the purpose of a homestead on
the assessment date, but which was used for the purpose of a
homestead by June December 1 of a year, constitutes class 1 or
class 2a.
Any taxpayer meeting the requirements of this subdivision
must notify the county assessor, or the assessor who has the
powers of the county assessor under section 273.063, in writing,
prior to June by December 15 of the year of occupancy in order
to qualify under this subdivision. The assessor must not deny
full homestead treatment to a property that is partially
homesteaded on January 2 but occupied for the purpose of a full
homestead by June December 1 of a year.
The county assessor and the county auditor may make the
necessary changes on their assessment and tax records to provide
for proper homestead classification as provided in this
subdivision.
If homestead classification has not been requested as of
December 15, the assessor will classify the property as
nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property
qualifying under this subdivision, which has not been accorded
the benefits of this subdivision, may be entitled to receive
homestead classification by proper application as provided in
section 375.192.
The county assessor shall may publish in a newspaper of
general circulation within the county no later than June 1 of
each year a notice informing requesting the public of the
requirement to file an application for homestead prior to June
15 as soon as practicable after acquisition of a homestead, but
no later than December 15.
The county assessor shall publish in a newspaper of general
circulation within the county no later than December 1 of each
year a notice informing the public of the requirement to file an
application for homestead by December 15.
Sec. 20. Minnesota Statutes 1992, section 273.124,
subdivision 13, is amended to read:
Subd. 13. [HOMESTEAD APPLICATION.] (a) A person who meets
the homestead requirements under subdivision 1 must file a
homestead application with the county assessor to initially
obtain homestead classification.
(b) On or before January 2, 1993, each county assessor
shall mail a homestead application to the owner of each parcel
of property within the county which was classified as homestead
for the 1992 assessment year. The format and contents of a
uniform homestead application shall be prescribed by the
commissioner of revenue. The commissioner shall consult with
the chairs of the house and senate tax committees on the
contents of the homestead application form. The application
must clearly inform the taxpayer that this application must be
signed by all owners of the property and returned to the county
assessor in order for the property to continue receiving
homestead treatment. The envelope containing the homestead
application shall clearly identify its contents and alert the
taxpayer of its necessary immediate response.
Every four years after the initial homestead application
has been filed under this subdivision, a county shall mail a
homestead application to the owner of each parcel of property to
verify the continued eligibility for homestead status for all
properties classified as homestead within the county in the
prior year's assessment. The homestead application and
procedures shall be done in the same manner as contained in this
subdivision for the 1993 homestead application.
(c) On the homestead application each owner shall disclose
the location of any other residential property in the state in
which the owner holds full or partial ownership and for which
homestead status has been granted or has been applied for at the
time of the application. Each owner must also disclose the name
and social security number of any relative occupying a property
qualifying as a homestead under subdivision 1, paragraph (c).
Failure to disclose the information required under this
paragraph may result in the imposition of the penalty provided
under this subdivision.
(d) Every property owner applying for homestead
classification must furnish to the county assessor the social
security number of each person who is listed as an owner of the
property listed on the homestead application. If the social
security number is not provided, the county assessor shall
classify the property as nonhomestead. The social security
numbers of the property owners are private data on individuals
as defined by section 13.02, subdivision 12, but,
notwithstanding that section, the private data may be disclosed
to the commissioner of revenue.
(e) If residential real estate is occupied and used for
purposes of a homestead by a relative of the owner and qualifies
for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead
application must be filed with the assessor. The social
security number of each relative occupying the property and the
social security number of each owner of the property shall be
required on the homestead application filed under this
subdivision. If a different relative of the owner subsequently
occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy.
(f) The homestead application shall also notify the
property owners that the application filed under this section
will not be mailed annually and that if the property is granted
homestead status for the 1993 assessment, that same property
shall remain classified as homestead until the property is sold
or transferred to another person, or the owners or the relatives
no longer use the property as their homestead. Upon the sale or
transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under
section 272.115. Failure to notify the county within 30 days
that the property has been sold, transferred, or that the owner
or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this
subdivision and the property will lose its current homestead
status.
(g) If the initial homestead application is not returned
within 30 days, the county will send a second application to the
present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the
property's classification. If a homestead application has not
been filed with the county by December 15, the assessor shall
classify the property as nonhomestead for the current assessment
year for taxes payable in the following year, provided that the
owner may be entitled to receive the homestead classification by
proper application under section 375.192.
(h) At the request of the commissioner, each county must
give the commissioner a list that includes the name and social
security number of each property owner applying for homestead
classification under this subdivision.
(i) If, in comparing the lists supplied by the counties,
the commissioner finds that a property owner is claiming more
than one homestead, the commissioner shall notify the
appropriate counties. Within 90 days of the notification, the
county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does
not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had
been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the taconite
homestead credit under section 273.135, and the supplemental
homestead credit under section 273.1391.
The county auditor shall send a notice to the owners of the
affected property, demanding reimbursement of the homestead
benefits plus a penalty equal to 100 percent of the homestead
benefits. The property owners may appeal the county's
determination by filing a notice of appeal with the Minnesota
tax court within 60 days of the date of the notice from the
county. If the amount of homestead benefits and penalty is not
paid within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of taxes and penalty to the
succeeding year's tax list to be collected as part of the
property taxes.
(j) Any amount of homestead benefits recovered by the
county from the property owner shall be distributed to the
county, city or town, and school district where the property is
located in the same proportion that each taxing district's levy
was to the total of the three taxing districts' levy for the
current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis county
auditor to be deposited in the taconite property tax relief
account. The total amount of penalty collected must be
deposited in the county general fund.
(k) If a property owner has applied for more than one
homestead and the county assessors cannot determine which
property should be classified as homestead, the county assessors
will refer the information to the commissioner. The
commissioner shall make the determination and notify the
counties within 60 days.
(l) In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 21. Minnesota Statutes 1992, section 273.124, is
amended by adding a subdivision to read:
Subd. 17. [OWNER-OCCUPIED MOTEL PROPERTY.] For purposes of
class 1a determinations, a homestead includes that portion of
property defined as a motel under chapter 157, provided that the
person residing in the motel property is using that property as
a homestead, is part owner, and is actively engaged in the
operation of the motel business. Homestead treatment applies
even if legal title to the property is in the name of a
corporation or partnership and not in the name of the person
residing in the motel. The homestead is limited to that portion
of the motel actually occupied by the person.
A taxpayer meeting the requirements of this subdivision
must notify the county assessor, or the assessor who has the
powers of the county assessor under section 273.063, in writing,
in order to qualify under this subdivision for 1a homestead
classification.
Sec. 22. Minnesota Statutes 1992, section 273.124, is
amended by adding a subdivision to read:
Subd. 18. [PROPERTY UNDERGOING RENOVATION.] Property that
is not occupied as a homestead on the assessment date will be
classified as a homestead if it meets each of the following
requirements on that date:
(a) The structure is a single family or duplex residence.
(b) The property is owned by a church or an organization
that is exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986.
(c) The organization is in the process of renovating the
property for use as a homestead by an individual or family whose
income is no greater than 60 percent of the county or area gross
median income, adjusted for family size, and that renovation
process and conveyance for use as a homestead can reasonably be
expected to be completed within 12 months after construction
begins.
The organization must apply to the assessor for classification
under this subdivision within 30 days of its acquisition of the
property, and must provide the assessor with the information
necessary for the assessor to determine whether the property
qualifies.
Sec. 23. Minnesota Statutes 1992, 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 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 $115,000, the value of
the remaining land including improvements equal to the
difference between $115,000 and the market value of the house,
garage, and surrounding one acre of land has a net class rate of
.45 percent of market value and a gross class rate of 1.75
percent of market value. The remaining value of class 2a
property over $115,000 of market value that does not exceed 320
acres has a net class rate of 1.3 percent of market value, and a
gross class rate of 2.25 percent of market value. The remaining
property over the $115,000 market value in excess of 320 acres
has a class rate of 1.6 percent of market value, and a gross
class rate 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
not improved with a structure and is used exclusively for
growing trees for timber, lumber, and wood and wood products, if
the owner has participated or is participating in a cost-sharing
program for afforestation, reforestation, or timber stand
improvement on that particular property, administered or
coordinated by the commissioner of natural resources; or (3)
real estate that is nonhomestead agricultural land. Class 2b
property has a net class rate of 1.6 percent of market value,
and a gross 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 state or federal farm programs. "Agricultural
purposes" as used in this section means the raising or
cultivation of agricultural products.
(d) Real estate of less than ten acres used principally for
raising or cultivating agricultural products, shall be
considered as agricultural land, if it is not used primarily for
residential purposes.
(e) The term "agricultural products" as used in this
subdivision includes:
(1) livestock, dairy animals, dairy products, poultry and
poultry products, fur-bearing animals, horticultural and nursery
stock described in sections 18.44 to 18.61, fruit of all kinds,
vegetables, forage, grains, bees, and apiary products by the
owner;
(2) fish bred for sale and consumption if the fish breeding
occurs on land zoned for agricultural use;
(3) the commercial boarding of horses if the boarding is
done in conjunction with raising or cultivating agricultural
products as defined in clause (1); and
(4) property which is owned and operated by nonprofit
organizations used for equestrian activities, excluding racing.
(f) 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. 24. Minnesota Statutes 1992, 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 class rate of 3.3 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 5.06
percent of the market value over $100,000. In the case of
state-assessed commercial, industrial, and utility property
owned by one person or entity, only one parcel has a 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
reduced class rate on the first $100,000 of market value.,
except that:
(1) if the market value of the parcel is less than
$100,000, and additional parcels are owned by the same person or
entity in the same city or town within that county, the reduced
class rate shall be applied up to a combined total market value
of $100,000 for all parcels owned by the same person or entity
in the same city or town within the county; and
(2) in the case of grain, fertilizer, and feed elevator
facilities, as defined in section 18C.305, subdivision 1, or
232.21, subdivision 8, the limitation to one parcel per owner
per county for the reduced class rate shall not apply, but there
shall be a limit of $100,000 of preferential value per site of
contiguous parcels owned by the same person or entity. Only the
value of the elevator portion of each parcel shall qualify for
treatment under this clause. For purposes of this subdivision,
contiguous parcels include parcels separated only by a railroad
or public road right-of-way.
To receive the reduced class rate on additional parcels
under clauses (1) and (2), the taxpayer must notify the county
assessor that the taxpayer owns more than one parcel that
qualifies under clause (1) or (2).
(b) Employment property defined in section 469.166, during
the period provided in section 469.170, shall constitute class
3b and has a class rate of 2.3 percent of the first $50,000 of
market value and 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 class rate of the first $100,000 of market value and
the class rate of the remainder is 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. 25. Minnesota Statutes 1992, 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 class rate of 3.5 percent of market value for taxes
payable in 1992, and 3.4 percent of market value for taxes
payable in 1993 and thereafter.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational;
(2) manufactured homes not classified under any other
provision;
(3) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b).
Class 4b property has a class rate of 2.8 percent of market
value for taxes payable in 1992, 2.5 percent of market value for
taxes payable in 1993, and 2.3 percent of market value for taxes
payable in 1994 and thereafter.
(c) Class 4c property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for
the elderly or for low- and moderate-income families as defined
in Title II, as amended through December 31, 1990, of the
National Housing Act or the Minnesota housing finance agency law
of 1971, as amended, or rules promulgated by the agency and
financed by a direct federal loan or federally insured loan made
pursuant to Title II of the Act; or
(ii) situated on real property that is used for housing the
elderly or for low- and moderate-income families as defined by
the Minnesota housing finance agency law of 1971, as amended, or
rules adopted by the agency pursuant thereto and financed by a
loan made by the Minnesota housing finance agency pursuant to
the provisions of the act.
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 as defined in section
42(c)(2) of the Internal Revenue Code of 1986, as amended
through December 31, 1990, that (i) receives a low-income
housing credit under section 42 of the Internal Revenue Code of
1986, as amended through December 31, 1990; or (ii) meets the
requirements of that section and receives public financing,
except financing provided under sections 469.174 to 469.179,
which contains terms restricting the rents; or (iii) meets the
requirements of section 273.1317. Classification pursuant to
this clause is limited 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 unless the owner of the property
elects to have the property assessed under Laws 1991, chapter
291, article 1, section 55. If the owner of the property elects
to have the market value determined on the basis of the actual
restricted rents, as provided in Laws 1991, chapter 291, article
1, section 55, the property will be assessed at the rate
provided for class 4a or class 4b property, as appropriate.
Properties described in clauses (1)(ii), (3), and (4) may apply
to the assessor for valuation under Laws 1991, chapter 291,
article 1, section 55. The land on which these structures are
situated has the class rate given in paragraph (b) if the
structure contains fewer than four units, and the class rate
given in paragraph (a) if the structure contains four or more
units. This clause applies only to the property of a nonprofit
or limited dividend entity.
(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
317A;
(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 250 days in the year preceding the year of
assessment. For purposes of this clause, property is devoted to
a commercial purpose on a specific day if any portion of the
property is used for residential occupancy, and a fee is charged
for residential occupancy. 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 250 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 this clause also includes the remainder
of class 1c resorts. Owners of real property devoted to
temporary and seasonal residential occupancy for recreation
purposes and all or a portion of which was devoted to commercial
purposes for not more than 250 days in the year preceding the
year of assessment desiring classification as class 1c or 4c,
must submit a declaration to the assessor designating the cabins
or units occupied for 250 days or less in the year preceding the
year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which
they are located will be designated class 1c or 4c as otherwise
provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located will
be designated as class 3a. The first $100,000 of the market
value of the remainder of the cabins or units and a
proportionate share of the land on which they are located shall
have a class rate of three percent. The owner of property
desiring designation as class 1c or 4c property must provide
guest registers or other records demonstrating that the units
for which class 1c or 4c designation is sought were not occupied
for more than 250 days in the second year preceding the
assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, and (4) other
nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy
for recreation purposes shall not qualify for class 1c or 4c;
(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, 1990. 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 3.2
percent 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;
(7) post-secondary student housing of not more than one
acre of land that is owned by a nonprofit corporation organized
under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or
housing located within two miles of the border of a college
campus; and
(8) manufactured home parks as defined in section 327.14,
subdivision 3.
Class 4c property has a class rate of 2.3 percent of market
value, except that (i) each parcel of seasonal residential
recreational property not used for commercial purposes under
clause (5) has a class rate of 2.2 percent of market value for
taxes payable in 1992, and for taxes payable in 1993 and
thereafter, the first $72,000 of market value on each parcel has
a class rate of two percent and the market value of each parcel
that exceeds $72,000 has a class rate of 2.5 percent, and (ii)
manufactured home parks assessed under clause (8) have a class
rate of two percent for taxes payable in 1993, 1994, and 1995
only.
(d) Class 4d property includes:
(1) a structure that is:
(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 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. For property for which
application is made for 4c or 4d classification for taxes
payable in 1994 and thereafter, and which was not classified 4c
or 4d for taxes payable in 1993 those properties, 4c or 4d
classification is available only for those units meeting the
requirements of section 273.1318.
Classification under this clause is only available to
property of a nonprofit or limited dividend entity.
In the case of a structure financed or refinanced under any
federal or state mortgage insurance or direct loan program
exclusively for housing for the elderly or for housing for the
handicapped, a unit shall be considered occupied so long as it
is actually occupied by an elderly or handicapped person or, if
vacant, is held for rental to an elderly or handicapped person.
(2) For taxes payable in 1992, 1993 and 1994, only,
buildings and appurtenances, together with the land upon which
they are located, leased by the occupant under the community
lending model lease-purchase mortgage loan program administered
by the Federal National Mortgage Association, provided the
occupant's income is no greater than 60 percent of the county or
area median income, adjusted for family size and the building
consists of existing single family or duplex housing. The lease
agreement must provide for a portion of the lease payment to be
escrowed as a nonrefundable down payment on the housing. To
qualify under this clause, the taxpayer must apply to the county
assessor by May 30 of each year. The application must be
accompanied by an affidavit or other proof required by the
assessor to determine qualification under this clause.
(3) Qualifying buildings and appurtenances, together with
the land upon which they are located, leased for a period of up
to five years by the occupant under a lease-purchase program
administered by the Minnesota housing finance agency or a
housing and redevelopment authority authorized under sections
469.001 to 469.047, provided the occupant's income is no greater
than 80 percent of the county or area median income, adjusted
for family size, and the building consists of two or less
dwelling units. The lease agreement must provide for a portion
of the lease payment to be escrowed as a nonrefundable down
payment on the housing. The administering agency shall verify
the occupants income eligibility and certify to the county
assessor that the occupant meets the income criteria under this
paragraph. To qualify under this clause, the taxpayer must
apply to the county assessor by May 30 of each year. For
purposes of this section, "qualifying buildings and
appurtenances" shall be defined as one or two unit residential
buildings which are unoccupied and have been abandoned and
boarded for at least six months.
Class 4d property has a class rate of two percent of market
value except that property classified under clause (3), shall
have the same class rate as class 1a property.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (3); paragraph (c), clause (1), (2), (3), or
(4), 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. Residential rental
property that would otherwise be assessed as class 4 property
under paragraph (d) is assessed at 2.3 percent of market value
if it is found to be a substandard building under section
273.1316.
Sec. 26. Minnesota Statutes 1992, section 273.13,
subdivision 33, is amended to read:
Subd. 33. [CLASSIFICATION OF UNIMPROVED PROPERTY.] (a)
Except as provided in paragraph All real property that is not
improved with a structure must be classified according to its
current use.
(b), Real property that is not improved with a
structure and for which there is no identifiable current use
must be classified according to its highest and best use
permitted under the local zoning ordinance. If the ordinance
permits more than one use, the land must be classified according
to the highest and best use permitted under the ordinance. If
no such ordinance exists, the assessor shall consider the most
likely potential use of the unimproved land based upon the use
made of surrounding land or land in proximity to the unimproved
land.
(b) Real property that is not improved with a structure and
is in commercial, industrial, or agricultural use under this
section must be classified according to its actual use.
Sec. 27. Minnesota Statutes 1992, section 273.1318,
subdivision 1, is amended to read:
Subdivision 1. [INCOME LIMITATION.] (a) Subject to the
exception in paragraph (b), for a building for which application
is made for class 4c for taxes payable in 1994 and thereafter,
and which was not class 4c for taxes payable in 1993, only those
units occupied by a household whose income is 100 percent or
less of the county or area median income adjusted for family
size as determined by the department of housing and urban
development are eligible for class 4c.
(b) For a building for which application is made for class
4c for taxes payable in 1994 and thereafter, and which was not
class 4c for taxes payable in 1993, but for which a formal
application was received by a local, state, or federal agency
for financing, refinancing, or insurance before July 1,
1992, and for a building that was classified as class 4c for
taxes payable in 1993 or an earlier year, the income limit is
100 percent or less of county or area median income not adjusted
for family size as determined by the department of housing and
urban development.
Sec. 28. Minnesota Statutes 1992, section 273.135,
subdivision 2, is amended to read:
Subd. 2. 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 tax, 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 tax, 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) The maximum reduction of the tax 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.
For the purposes of this subdivision, "homestead credit
equivalency percentage" means one minus the ratio of the net
class rate to the gross class rate applicable to the first
$72,000 of the market value of residential homesteads,
"effective tax rate" means tax divided by the market value of a
property, and the "base year effective tax rate" means the
payable 1988 tax on 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, divided by the market value of the property.
Sec. 29. Minnesota Statutes 1992, 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.
If more than 85 percent of the natural gas or other petroleum
products actually transported over the pipeline is used for the
owner's own consumption and not for resale to others, then this
subdivision shall not apply; provided, however, that in that
event, the pipeline shall be assessed in proportion to the
percentage of gas actually transported over such pipeline that
is not used for the owner's own consumption. On or before 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. 30. Minnesota Statutes 1992, section 276.04,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
shall provide for the printing of the tax statements. 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) 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 under section 272.03, subdivision 8 273.11, subdivision 1;
(2) the property's taxable market value after reductions
under sections 273.11, subdivisions 1a and 16;
(3) the property's gross tax, calculated by multiplying the
property's gross tax capacity times the total local tax rate and
adding to the result the sum of the aids enumerated in clause
(3);
(3) (4) 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) (5) for homestead residential and agricultural
properties, the homestead and agricultural credit aid
apportioned to the property. This amount is obtained by
multiplying the total local tax 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) (6) any credits received under sections 273.119;
273.123; 273.135; 273.1391; 273.1398, subdivision 4; 469.171;
and 473H.10, except that the amount of credit received under
section 273.135 must be separately stated and identified as
"taconite tax relief";
(6) (7) the net tax payable in the manner required in
paragraph (a); and
(7) (8) any additional amount of tax authorized under
sections 124A.03, subdivision 2a, and 275.61. These amounts
shall be listed as "voter approved referenda levies."
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, for taxes levied in 1991, and for all counties for taxes
levied in 1992 and thereafter, the commissioner must certify
this amount by September 1.
Sec. 31. Minnesota Statutes 1992, section 375.192,
subdivision 2, is amended to read:
Subd. 2. Upon written application by the owner of any
property, the county board may grant the reduction or abatement
of estimated market valuation or taxes and of any costs,
penalties, or interest on them as the board deems just and
equitable and order the refund in whole or part of any taxes,
costs, penalties, or interest which have been erroneously or
unjustly paid. The county board is authorized to consider and
grant reductions or abatements on applications only as they
relate to taxes payable in the current year and the two prior
years; provided that reductions or abatements for the two prior
years shall be considered or granted only for (i) clerical
errors, or (ii) when the taxpayer fails to file for a reduction
or an adjustment due to hardship, as determined by the county
board. The application must include the social security number
of the applicant. The social security number is private data on
individuals as defined by section 13.02, subdivision 12. All
applications must be approved by the county assessor, or, if the
property is located in a city of the first or second class
having a city assessor, by the city assessor, and by the county
auditor before consideration by the county board, except that
the part of the application which is for the abatement of
penalty or interest must be approved by the county treasurer and
county auditor. Approval by the county or city assessor is not
required for abatements of penalty or interest. No reduction,
abatement, or refund of any special assessments made or levied
by any municipality for local improvements shall be made unless
it is also approved by the board of review or similar taxing
authority of the municipality. Before taking action on any
reduction or abatement where the reduction of taxes, costs,
penalties, and interest exceed $10,000, the county board shall
give 20 days' notice to the school board and the municipality in
which the property is located. The notice must describe the
property involved, the actual amount of the reduction being
sought, and the reason for the reduction. If the school board
or the municipality object to the granting of the reduction or
abatement, the county board must refer the abatement or
reduction to the commissioner of revenue with its
recommendation. The commissioner shall consider the abatement
or reduction under section 270.07, subdivision 1.
An appeal may not be taken to the tax court from any order
of the county board made in the exercise of the discretionary
authority granted in this section.
The county auditor shall notify the commissioner of revenue
of all abatements resulting from the erroneous classification of
real property, for tax purposes, as nonhomestead property. For
the abatements relating to the current year's tax processed
through June 30, the auditor shall notify the commissioner on or
before July 31 of that same year of all abatement applications
granted. For the abatements relating to the current year's tax
processed after June 30 through the balance of the year, the
auditor shall notify the commissioner on or before the following
January 31 of all applications granted. The county auditor
shall submit a form containing the social security number of the
applicant and such other information the commissioner prescribes.
Sec. 32. [PENDING APPLICATIONS.]
(a) For applications under Minnesota Statutes, section
375.192, subdivision 2, pending prior to the effective date of
this act, the county board's current policy is ratified by this
act.
(b) If an applicant has filed a judicial action before
January 1, 1993, for a reduction or abatement requiring the
county to consider the application, paragraph (a) does not
apply; provided, however, that no reduction or abatement may be
considered by the county board for more than three years.
Sec. 33. Minnesota Statutes 1992, section 429.061, is
amended by adding a subdivision to read:
Subd. 5. [SPECIAL ASSESSMENTS; ADMINISTRATIVE
EXPENSES.] Notwithstanding any general or special law to the
contrary, a municipality shall pay to the county auditor all
administrative expenses incurred by the county under subdivision
3 for each special assessment of any local improvement certified
by the municipality to the county auditor.
Sec. 34. Minnesota Statutes 1992, section 469.040,
subdivision 3, is amended to read:
Subd. 3. [STATEMENT FILED WITH ASSESSOR; PERCENTAGE TAX ON
RENTALS.] Notwithstanding the provisions of subdivision 1, after
a housing project carried on under sections 469.016 to 469.026
has become occupied, in whole or in part, an authority shall
file with the assessor, on or before May 1 April 15 of each
year, a statement of the aggregate shelter rentals of that
project collected during the preceding calendar year. Unless a
greater amount has been agreed upon between the authority and
the governing body or bodies for which the authority was
created, in whose jurisdiction the project is located, five
percent of the aggregate shelter rentals shall be charged to the
authority as a service charge for the services and facilities to
be furnished with respect to that project. The service charge
shall be collected from the authority in the manner provided by
law for the assessment and collection of taxes. The amount so
collected shall be distributed to the several taxing bodies in
the same proportion as the tax rate of each bears to the total
tax rate of those taxing bodies. The governing body or bodies
for which the authority has been created, in whose jurisdiction
the project is located, may agree with the authority for the
payment of a service charge for a housing project in an amount
greater than five percent of the aggregate annual shelter
rentals of any project, upon the basis of shelter rentals or
upon another basis agreed upon. The service charge may not
exceed the amount which would be payable in taxes were the
property not exempt. If such an agreement is made, the service
charge so agreed upon shall be collected and distributed in the
manner above provided. If the project has become occupied, or
if the land upon which the project is to be constructed has been
acquired, the agreement shall specify the location of the
project for which the agreement is made. "Shelter rental" means
the total rentals of a housing project exclusive of any charge
for utilities and special services such as heat, water,
electricity, gas, sewage disposal, or garbage removal. "Service
charge" means payment in lieu of taxes. The records of each
housing project shall be open to inspection by the proper
assessing officer.
Sec. 35. Laws 1985, chapter 302, section 1, subdivision 3,
is amended to read:
Subd. 3. [SPECIAL SERVICES.] "Special services" means all
services rendered or contracted for by the city for snow, ice,
and litter removal and cleaning of sidewalks, curbs, gutters,
and streets and for banners and other decorations to be used to
identify and promote the commercial area.:
(1) snow, ice removal, and sanding of public areas;
(2) cleaning of streets, curbs, gutters, sidewalks, and
alleys;
(3) watering, fertilizing, maintenance, and replacement of
trees and bushes on public right-of-way;
(4) poster and handbill removal;
(5) cleaning and scrubbing of sidewalks;
(6) provision, installation, maintenance, removal, and
replacement of banners and decorative items for promotion of
commercial area;
(7) repair and maintenance of sidewalks;
(8) installation and maintenance of areawide security
systems;
(9) provision and coordination of security personnel to
supplement regular city personnel;
(10) maintenance, repair, and cleaning of commercial area
directories, kiosks, benches, bus shelters, newspaper stands,
trash receptacles, information booths, bicycle racks and bicycle
storage containers, sculptures, murals, and other public area
art pieces;
(11) installation, maintenance, and removal of lighting on
commercial area trees;
(12) cost of electrical service for pedestrian and tree
lighting;
(13) repair of low-level pedestrian lights and poles;
(14) provision of comprehensive liability insurance for
public space improvements;
(15) trash removal and recycling costs; and
(16) provision, maintenance, and replacement of special
signage relating to vehicle and bicycle parking, vehicle and
pedestrian movement, and special events.
Special services do not include services that are
ordinarily provided throughout the city from ordinary revenues
of the city unless an increased level of service is provided in
the special service district.
Sec. 36. Laws 1985, chapter 302, section 2, subdivision 1,
is amended to read:
Subdivision 1. [ORDINANCE.] The governing body of the city
may adopt an ordinance ordinances:
(a) establishing a special service district in the part of
Minneapolis which is south of 28th Street, west of Fremont
Dupont Avenue South, north of 31st Street, and east of Humboldt
Avenue South East Calhoun Parkway and East Lake of the Isles
Parkway; and
(b) establishing a special service district south of Sixth
Street southeast, west of Sixteenth Avenue Southeast, north of a
line parallel to and 200 feet south of University Avenue and
east of Twelfth Avenue Southeast.
Only property which is zoned for commercial, business, or
industrial use under a municipal zoning ordinance may be
included in a special service district. The ordinance shall
describe with particularity the areas to be included in the
district and the special services to be furnished. The
ordinance may not be adopted until after a public hearing on the
question. Notice of the hearing shall include:
(1) the time and place of the hearing;
(2) a map showing the boundaries of the proposed district;
and
(3) a statement that all persons owning property in the
proposed district will be given an opportunity to be heard at
the hearing.
Sec. 37. Laws 1985, chapter 302, section 4, is amended to
read:
Sec. 4. [ENLARGEMENT OF SPECIAL SERVICE DISTRICTS.]
The boundary of a special service district may be enlarged,
to an area not to exceed one square mile, within the part of
Minneapolis described in section 2 only after hearing and notice
as provided in section 2. Notice shall be served in the
original district and in the area proposed to be added to the
district. Property added to the district shall be subject to
all taxes levied and service charges imposed within the district
after the property becomes a part of the district.
Sec. 38. [LOCAL APPROVAL.]
Sections 35 to 37 take effect the day after the governing
body of the city of Minneapolis complies with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 39. [FLOODWOOD AREA AMBULANCE DISTRICT.]
Subdivision 1. [AGREEMENT.] The city of Floodwood and one
or more of the towns of Floodwood, Van Buren, Halden, Cedar
Valley, Ness, Arrowhead, Fine Lakes, and Prairie Lake, may by
resolution of their city council and town boards establish the
Floodwood area ambulance district. The town of Ness may provide
that only a described part of its territory be included within
the district. The St. Louis county board may by resolution
provide that property located in unorganized territory 52-21 may
be included within the district. The district shall make
payments of the proceeds of the tax authorized in this section
to the city of Floodwood, which shall provide ambulance services
throughout the territory of the district and may exercise all
the powers of the city and towns that relate to ambulance
service anywhere within its territory. Any other contiguous
town or home rule charter or statutory city may join the
district with the agreement of the cities and towns that
comprise the district at the time of its application to join.
Action to join the district may be taken by the city council or
town board of the city or town.
Subd. 2. [BOARD.] The district shall be governed by a
board composed of one member appointed by the city council or
town board of each city and town in the district. A district
board member may, but is not required to, be a member of a city
council or town board. Except as provided in this section,
members shall serve two-year terms ending the first Monday in
January and until their successors are appointed and qualified.
Of the members first appointed, as far as possible, the terms of
one-half shall expire on the first Monday in January in the
first year following their appointment and one-half the first
Monday in January in the second year. The terms of those
initially appointed shall be determined by lot. If an
additional member is added because an additional city or town
joins the district, the member's term shall be fixed so that, as
far as possible, the terms of one-half of all the members expire
on the same date.
Subd. 3. [TAX.] The district may impose a property tax on
real and personal property in the district in an amount
sufficient to discharge its operating expenses and debt payable
in each year, but not to exceed $25,000 each year. The St.
Louis county auditor and treasurer shall collect the tax and pay
it to the Floodwood area ambulance district.
Subd. 4. [PUBLIC INDEBTEDNESS.] The district may incur
debt in the manner provided for a municipality by Minnesota
Statutes, chapter 475, when necessary to accomplish a duty
charged to it.
Subd. 5. [WITHDRAWAL.] Upon two years' notice, a city or
town may withdraw from the district. Its territory shall remain
subject to taxation for debt incurred prior to its withdrawal
pursuant to Minnesota Statutes, chapter 475.
Subd. 6. [EFFECTIVE DATE.] This section is effective in
the city of Floodwood, and the towns of Floodwood, Van Buren,
Halden, Cedar Valley, Ness, Arrowhead, Fine Lakes, and Prairie
Lake the day after compliance with Minnesota Statutes, section
645.021, subdivision 3, by the governing body of each. This
section is effective for unorganized territory 52-21 the day
after compliance with Minnesota Statutes, section 645.021,
subdivision 3, by the St. Louis county board.
Sec. 40. [CITY OF DULUTH; SPECIAL SERVICE DISTRICT.]
Subdivision 1. [DEFINITIONS.] For the purpose of this
section, the terms defined in this subdivision have the
following meanings:
(1) "City" means the city of Duluth.
(2) "Special services" means all services rendered or
contracted for by the city, including but not limited to:
(i) the construction, repair, maintenance, and operation of
any improvements authorized by Minnesota Statutes, sections
429.021 and 469.126;
(ii) the acquisition of property within a special service
district, including through the use of the power of eminent
domain;
(iii) the sale or lease of property in the special service
district at or below "market rate" for the promotion of
development within the district;
(iv) parking services rendered or contracted for by the
city;
(v) promotional services provided or contracted for by the
city; and
(vi) any other service provided to the public by the city
as authorized by law or charter.
(3) "Special service district" means a defined area within
the city in which special services are rendered and the costs of
special services are paid from revenues collected from service
charges imposed within the area as provided in this section.
Subd. 2. [RELATION TO MINNESOTA STATUTES, CHAPTER
428A.] The creation of a special service district under this
section must be in accordance with the provisions of Minnesota
Statutes, chapter 428A.
Subd. 3. [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT;
AREA.] The governing body of the city may establish a special
service district in the city. The district shall be bounded on
the northwest by Interstate Highway 35, on the northeast by the
centerline of Sixth Avenue West and as the same is extended to
the United States Harbor Line in St. Louis Bay, on the southeast
by said Harbor Line and on the southwest by the centerline of
Ninth Avenue West and as the same is extended to said Harbor
Line.
Subd. 4. [SERVICE CHARGES; DETERMINATION OF
AMOUNT.] Service charges based on the net tax capacity of the
property within the district shall be distributed in a manner
determined by the city council to be a fair, equitable, and
reasonable method of determination, taking into account the
character and impact of the services to be provided on each
parcel in the district; provided, it shall not be necessary to
establish a relationship between any special service charges on
a parcel of property and the value of special benefits conferred
upon that property.
Subd. 5. [DELEGATION TO ECONOMIC DEVELOPMENT
AUTHORITY.] After the creation of a special service district,
the city council may, by resolution, delegate the operation of
the district to an economic development authority created
pursuant to Minnesota Statutes, sections 469.090 to 469.108.
Sec. 41. [PROPERTY ACQUIRED FROM ELECTRIC COOPERATIVE.]
Subdivision 1. [PROPERTY EXEMPTION.] Property owned by a
cooperative association, as defined in Minnesota Statutes,
section 273.40, that is purchased by a public utility, as
defined in Minnesota Statutes, section 216B.02, remains exempt
from property taxes, if the property:
(1) was exempt under Minnesota Statutes, section 272.02,
subdivision 1, clause (18), or section 273.41 when it was owned
by the cooperative association; and
(2) is located in St. Louis, Koochiching, Itasca, and Lake
counties.
This exemption applies for three assessment years from the
date of purchase. The tax under Minnesota Statutes, section
273.41, continues to apply during the three-year exemption
period. The rates charged by the public utility must reflect
the property tax exemption provided under this section.
Subd. 2. [LOCAL APPROVAL.] Subdivision 1 is effective in
St. Louis, Koochiching, Itasca, and Lake counties the day after
the governing body of the county complies with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 42. [REPORT TO LEGISLATURE.]
By February 1 of each year, the commissioner of revenue
shall make a report to the legislature on the use of limited
market value under section 273.13, subdivision 1a, and the
valuation exclusion under section 273.13, subdivision 16. For
the limited market value provision, the report shall include the
total value excluded from taxation by type of property for each
city and town. For the valuation exclusion provision, the
report shall include the total market value excluded from
taxation for each city and town, as well as a breakdown of the
excluded improvement amounts by age and value of the property
being improved and the amount of the qualifying improvement.
The county assessors shall provide the information necessary for
the commissioner to compile the report in a manner prescribed by
the commissioner.
Sec. 43. [REPEALER.]
(a) Minnesota Statutes 1992, section 272.115, subdivision
1a, is repealed.
(b) Minnesota Statutes 1992, section 273.124, subdivision
16, is repealed.
(c) Minnesota Statutes 1992, section 383C.78, is repealed.
Sec. 44. [EFFECTIVE DATE.]
Section 1 is effective April 1, 1994.
Sections 2, 3, clause (26), and 43, paragraph (b), are
effective for taxes levied in 1993, payable in 1994, and
thereafter.
Section 3, clause (25), is effective for taxes levied in
1991, payable in 1992, and thereafter. Upon application to and
approval by the county auditor, the county treasurer shall
refund to the taxpayer any taxes paid for 1992 that are exempt
under section 3, clause (25). The refund shall be paid without
interest. Each taxing jurisdiction must reimburse the county
for the refund in the same proportion as the taxing
jurisdiction's levy bears to the total levies of all
jurisdictions for taxes payable in 1992. The amount of the
reimbursement may be deducted in the next distribution of tax
proceeds to the taxing jurisdiction.
Sections 4 to 7, 17, and 43, paragraph (a), are effective
the day following final enactment, except that section 17,
paragraphs (c) and (d) are effective for taxes payable in 1994
and thereafter.
Sections 8 to 10, 12, 19, 21 to 27, and 30 are effective
for 1993 assessments for taxes payable in 1994 and subsequent
years, except if provided otherwise.
Section 11, clauses (1) and (2), are effective for the 1992
assessment, taxes payable in 1993 and thereafter. Section 11,
clause (3), is effective for the 1993 assessment, taxes payable
in 1994 and thereafter.
Section 13 is effective for qualifying improvements made
after January 2, 1993.
Sections 14 and 15 are effective for the 1994 assessment,
payable in 1995, and thereafter. Notwithstanding Minnesota
Statutes, section 273.112, subdivision 6, in order to qualify
for valuation under Minnesota Statutes, section 273.112, for the
1994 assessment, the taxpayer of the property devoted to golf
and operated by private clubs, that does not meet the
requirement of Minnesota Statutes, section 273.112, subdivision
3, for the 1993 assessment year, must submit an affidavit or
other written verification to the assessor showing that the
bylaws in rules and regulations of the private club meet the
eligibility requirements of Minnesota Statutes, section 273.112,
by January 1, 1994.
Sections 16 and 18 are effective for assessment year 1994
and subsequent years.
Section 20 is effective for taxes payable in 1995 and
thereafter.
Section 28 is effective for taxes payable in 1994 and
thereafter.
Section 29 is effective for the 1991 assessment and
thereafter, for taxes payable in 1992 and thereafter. For taxes
payable in 1992 and 1993, any amounts paid by the property owner
in excess of the amounts required by section 29 shall be paid by
the county treasurer to the property owner under the abatement
procedures.
Section 31 is effective for applications for reductions or
abatements filed after the day of final enactment.
Section 33 is effective for assessments certified after
July 1, 1993.
Section 40 is effective the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of Duluth.
Section 43, clause (c) is repealed effective January 2,
1993, provided that any improvements made prior to January 2,
1993, shall continue to qualify for the delayed assessment
provisions under section 383C.78 for the duration of the period
provided in that section.
ARTICLE 6
PROPERTY TAX REFUND
Section 1. Minnesota Statutes 1992, section 290A.03,
subdivision 3, is amended to read:
Subd. 3. [INCOME.] (1) "Income" means the sum of the
following:
(a) federal adjusted gross income as defined in the
Internal Revenue Code; and
(b) the sum of the following amounts to the extent not
included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not
disallowed as a result of section 469, paragraph (i) or (m) of
the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal
Revenue Code;
(iii) an amount equal to the total of any discharge of
qualified farm indebtedness of a solvent individual excluded
from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement
benefits, all payments received under the federal Social
Security Act, supplemental security income, and veterans
benefits), which was not exclusively funded by the claimant or
spouse, or which was funded exclusively by the claimant or
spouse and which funding payments were excluded from federal
adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state
government or any instrumentality or political subdivision
thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature
of disability income or sick pay as a result of accident,
sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump sum distribution under section 402(e)(3) of the
Internal Revenue Code;
(xi) contributions made by the claimant to an individual
retirement account, including a qualified voluntary employee
contribution; simplified employee pension plan; self-employed
retirement plan; cash or deferred arrangement plan under section
401(k) of the Internal Revenue Code; or deferred compensation
plan under section 457 of the Internal Revenue Code; and
(xii) nontaxable scholarship or fellowship grants.
In the case of an individual who files an income tax return
on a fiscal year basis, the term "federal adjusted gross income"
shall mean federal adjusted gross income reflected in the fiscal
year ending in the calendar year. Federal adjusted gross income
shall not be reduced by the amount of a net operating loss
carryback or carryforward or a capital loss carryback or
carryforward allowed for the year.
(2) "Income" does not include
(a) amounts excluded pursuant to the Internal Revenue Code,
sections 101(a), 102, and 121;
(b) amounts of any pension or annuity which was exclusively
funded by the claimant or spouse and which funding payments were
not excluded from federal adjusted gross income in the years
when the payments were made;
(c) surplus food or other relief in kind supplied by a
governmental agency;
(d) relief granted under this chapter; or
(e) child support payments received under a temporary or
final decree of dissolution or legal separation.
(3) The sum of the following amounts may be subtracted from
income:
(a) for the claimant's first dependent, the exemption
amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption
amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption
amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption
amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption
amount; and
(f) if the claimant or claimant's spouse was disabled or
attained the age of 65 prior to June 1 on or before December 31
of the year for which the taxes were levied or rent paid, the
exemption amount.
For purposes of this subdivision, the "exemption amount"
means the exemption amount under section 151(d) of the Internal
Revenue Code of 1986, as amended through December 31, 1991, for
the taxable year for which the income is reported.
Sec. 2. Minnesota Statutes 1992, section 290A.03,
subdivision 7, is amended to read:
Subd. 7. [DEPENDENT.] "Dependent" means any person who is
considered a dependent under sections 151 and 152 of the
Internal Revenue Code of 1986, as amended through December 31,
1991. In the case of a son, stepson, daughter, or stepdaughter
of the claimant, amounts received as an aid to families with
dependent children grant or, allowance to or on behalf of the
child, surplus food, or other relief in kind supplied by a
governmental agency must not be taken into account in
determining whether the child received more than half of the
child's support from the claimant.
Sec. 3. Minnesota Statutes 1992, section 290A.03,
subdivision 8, is amended to read:
Subd. 8. [CLAIMANT.] (a) "Claimant" means a person, other
than a dependent, as defined under sections 151 and 152 of the
Internal Revenue Code of 1986, as amended through December 31,
1992, disregarding section 152(b)(3) of the Internal Revenue
Code, who filed a claim authorized by this chapter and who was a
resident of this state as provided in chapter 290 during the
calendar year for which the claim for relief was filed.
(b) In the case of a claim relating to rent constituting
property taxes, the claimant shall have resided in a rented or
leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments
imposed in lieu of ad valorem taxes, are payable at some time
during the calendar year covered by the claim.
(c) "Claimant" shall not include a resident of a nursing
home, intermediate care facility, or long-term residential
facility whose rent constituting property taxes is paid pursuant
to the supplemental security income program under title XVI of
the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance
program pursuant to title XIX of the Social Security Act, or the
general assistance medical care program pursuant to section
256D.03, subdivision 3. If only a portion of the rent
constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but
the refund calculated pursuant to section 290A.04 shall be
multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (1) and (2), reduced by the
total amount of income from the above sources other than vendor
payments under the medical assistance program or the general
assistance medical care program and the denominator of which is
income as defined in subdivision 3, paragraphs (1) and (2), plus
vendor payments under the medical assistance program or the
general assistance medical care program, to determine the
allowable refund pursuant to this chapter.
(d) Notwithstanding paragraph (c), if the claimant was a
resident of the nursing home, intermediate care facility or
long-term residential facility for only a portion of the
calendar year covered by the claim, the claimant may compute
rent constituting property taxes by disregarding the rent
constituting property taxes from the nursing home, intermediate
care facility, or long-term residential facility and use only
that amount of rent constituting property taxes or property
taxes payable relating to that portion of the year when the
claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the
claim.
(e) In the case of a claim for rent constituting property
taxes of a part-year Minnesota resident, the income and rental
reflected in this computation shall be for the period of
Minnesota residency only. Any rental expenses paid which may be
reflected in arriving at federal adjusted gross income cannot be
utilized for this computation. When two individuals of a
household are able to meet the qualifications for a claimant,
they may determine among them as to who the claimant shall be.
If they are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. If a
homestead property owner was a part-year Minnesota resident, the
income reflected in the computation made pursuant to section
290A.04 shall be for the entire calendar year, including income
not assignable to Minnesota.
(f) If a homestead is occupied by two or more renters, who
are not husband and wife, the rent shall be deemed to be paid
equally by each, and separate claims shall be filed by each.
The income of each shall be each renter's household income for
purposes of computing the amount of credit to be allowed.
Sec. 4. Minnesota Statutes 1992, section 290A.04,
subdivision 2h, is amended to read:
Subd. 2h. (a) If the gross property taxes payable on a
homestead increase more than 12 percent over the net property
taxes payable in the prior year on the same property that is
owned by the same owner in both years, and the amount of that
increase is $80 or more for taxes payable in 1993, and $100 or
more for taxes payable in 1994, 1995, and 1996, a claimant who
is a homeowner shall be allowed an additional refund equal to 75
percent of the amount of the increase over the greater of 12
percent of the prior year's net property taxes payable or $80
for taxes payable in 1993, and 75 percent of the amount of the
increase over the greater of 12 percent of the prior year's net
property taxes payable or $100 for taxes payable in 1994, 1995,
and 1996. This subdivision shall not apply to any increase in
the gross property taxes payable attributable to improvements
made to the homestead after the assessment date for the prior
year's taxes.
In the case of refunds for property taxes payable in 1993
and thereafter, The maximum refund allowed under this
subdivision is $1,500.
(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 under sections 273.13,
subdivisions 22 and 23; 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, 1993, 1994, and 1995, 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 for taxes
payable in 1994, 1995, and 1996 exceed $5,500,000, for each of
the three years the commissioner shall increase the $100 amount
of tax increase which must occur before a taxpayer qualifies for
a refund, and increase by an equal amount the $100 threshold
used in determining the amount of the refund, so that the
estimated total refund claims do not exceed $5,500,000 for taxes
payable in 1994, for taxes payable in 1995, or for taxes payable
in 1996.
The determinations of the revised thresholds by the
commissioner are not rules subject to chapter 14.
Sec. 5. Minnesota Statutes 1992, section 290A.04, is
amended by adding a subdivision to read:
Subd. 6. [INFLATION ADJUSTMENT.] Beginning for property
tax refunds payable in calendar year 1995, the commissioner
shall annually adjust the dollar amounts of the income
thresholds and the maximum refunds under subdivisions 2 and 2a
for inflation. The commissioner shall make the inflation
adjustments in accordance with section 290.06, subdivision 2d,
except that for purposes of this subdivision the percentage
increase shall be determined from the year ending on August 31,
1993, to the year ending on August 31 of the year preceding that
in which the refund is payable. The commissioner shall round
the thresholds and the maximum amounts, as adjusted to the
nearest $10 amount. If the amount ends in $5, the commissioner
shall round it up to the next $10 amount.
The commissioner shall annually announce the adjusted
refund schedule at the same time provided under section 290.06.
The determination of the commissioner under this subdivision is
not a rule under the administrative procedures act.
Sec. 6. Minnesota Statutes 1992, section 290A.23, is
amended to read:
290A.23 [APPROPRIATION.]
Subdivision 1. [RENTERS CREDIT AND TARGETING.] For
payments made before July 1, 1996, there is appropriated from
the general fund in the state treasury to the commissioner of
revenue the amount necessary to make the payments required under
section 290A.04, subdivisions 2a and 2h. For payments made
after June 30, 1996, the amount necessary to make the payments
required under section 290A.04, subdivision 2a, are appropriated
to the commissioner of revenue from the local government trust
fund.
Subd. 2. [HOMEOWNERS PROPERTY TAX REFUND AND TARGETING.]
There is appropriated from the local government trust fund to
the commissioner of revenue the amount necessary to make the
payments required under section 290A.04, subdivision
subdivisions 2 and 2h.
Sec. 7. [INCREASE IN PROPERTY TAX REFUNDS FOR RENTERS.]
(a) On the basis of the most recent forecast of local
government trust fund revenues and expenditures, not including
expenditures under this section, the commissioner of finance
shall determine on or before July 1, 1994, whether the local
government trust fund revenues for fiscal year 1995 will exceed
the amount appropriated from the fund. If the amount of
revenues are estimated to exceed appropriations, up to the first
$3,000,000 of the excess is appropriated from the local
government trust fund to the commissioner of revenue to increase
the payment of property tax refunds to renters under Minnesota
Statutes, section 290A.04, subdivision 2a, for claims relating
to rent constituting property taxes for rents paid in 1993. The
commissioner shall proportionately increase each claimant's
refund by an amount the commissioner estimates is sufficient to
pay out the additional appropriation. The amount paid to a
claimant under this appropriation is not subject to the
limitations under Minnesota Statutes, chapter 290A, on the
maximum amount of a refund. The additional refund under this
section shall be included with the originally authorized refund
and paid at the same time as prescribed for the original refund
under Minnesota Statutes, section 290A.07. The commissioner's
adjustments are final. If, as a result of the commissioner's
estimates the additional refund paid under this section exceeds
the amount the commissioner originally determined as the
available local government trust fund surplus, the excess is
appropriated first from any remaining local government trust
fund surplus and then, if necessary, from the general fund.
(b) If an additional appropriation is made under the
provision of paragraph (a), the commissioner of revenue shall
recommend modifications of the property tax refund schedule to
the 1995 legislature to provide an equivalent permanent increase
in the property tax refund for renters.
Sec. 8. [EFFECTIVE DATE.]
Section 1 is effective for refunds payable for rents paid
in 1993 and property taxes payable in 1994, and thereafter.
Sections 2 and 3 are effective for refunds payable for
rents paid in 1992 and property taxes payable in 1993, and
thereafter.
Section 4 is effective for refunds for property taxes
payable in 1994, 1995, and 1996 only.
ARTICLE 7
TRUTH IN TAXATION AND LEVY LIMIT TECHNICAL
Section 1. Minnesota Statutes 1992, section 103B.635,
subdivision 2, is amended to read:
Subd. 2. [MUNICIPAL FUNDING OF DISTRICT.] (a) The
governing body or board of supervisors of each municipality in
the district must provide the funds necessary to meet its
proportion of the total cost determined by the board, provided
the total funding from all municipalities in the district for
the costs shall not exceed an amount equal to .00242 percent of
the total taxable market value within the district, unless
three-fourths of the municipalities in the district pass a
resolution concurring to the additional costs.
(b) A municipality may raise the funds by any means that
the municipality has to raise funds. The municipalities may
each levy a tax not to exceed .00242 percent of taxable market
value on the taxable property located in the district for
funding the district. The levy must be within all other
limitations provided by law.
(c) The funds must be deposited in the treasury of the
district in amounts and at times as the treasurer of the
district requires.
Sec. 2. Minnesota Statutes 1992, section 134.001, is
amended by adding a subdivision to read:
Subd. 8. [REGIONAL PUBLIC LIBRARY DISTRICT.] "Regional
public library district" means a governmental unit formed
according to this chapter to operate multicounty public library
services.
Sec. 3. [134.201] [REGIONAL LIBRARY DISTRICT.]
Subdivision 1. [ESTABLISHMENT.] Regional public library
districts may be established under this section in the areas of
the existing Great River Regional library system and the East
Central Regional library system. The geographic boundaries
shall be those established by the state board of education under
section 134.34, subdivision 3.
Subd. 2. [FORMATION.] A regional public library district
may be formed by:
(1) approval of a majority of the city councils and boards
of county commissioners of the cities and counties that finance
regional public library system services and represent a majority
of the population to be served; or
(2) a majority of those voting on the issue in the entire
area to be served by the district in a referendum called after
petitions for the referendum have been filed in each of the
local governmental units. Petitions must be signed by eligible
voters in a number not less than five percent of the number of
persons who voted in the last general election in each city and
county that is a party to the system contract or agreement.
A city that is not participating in a regional public
library system may join the district by majority vote of the
city council or by referendum under clause (2) and with the
approval of the board of the regional public library district.
Subd. 3. [TERMINATION.] A regional public library district
may be terminated at any time after the district has been in
operation for three years. The procedure for termination is the
same as that for creation under subdivision 2, clause (2).
Subd. 4. [BOARD.] (a) If the district is formed under
subdivision 2, clause (1), the board of the public regional
library district shall be composed of one county commissioner or
the commissioner's designee from each county in the district's
service area and one elected member from each county for each
ten percent or a major fraction of the district's population. A
majority of the members of the board must be elected members.
(b) If the district is formed under subdivision 2, clause
(2), the board of the regional library district shall be
composed of one member elected from each county in the
district's service area and one member elected from each county
for each ten percent or a major fraction of the district's
population.
(c) Elected board members shall be elected at large from a
county at a November election. Board members elected shall
assume office on the following January 2. The term of a member
shall be four years, with the terms of an initial board to
expire in two years for one-half of the members. The board
shall organize itself under section 134.11, subdivision 1. The
board has the powers and duties set forth in section 134.11,
subdivision 2.
Subd. 5. [GENERAL LEVY AUTHORITY.] The board may levy for
operation of public library service. This levy shall replace
levies for operation of public library service by cities and
counties authorized in section 134.07. The amount levied shall
be spread on the net tax capacity of all taxable property in the
district at a uniform tax rate.
(a) The maximum amount that may be levied by a board under
this section is the greater of: (1) the statewide average local
support per capita for public library services for the most
recent reporting period available, as certified by the
commissioner of education, multiplied by the population of the
district according to the most recent estimate of the state
demographer or the metropolitan council; or (2) the total amount
provided by participating counties and cities under section
134.34, subdivision 4, during the year preceding the first year
of operation.
(b) For its first year of operation, the board shall levy
an amount not less than the total dollar amount provided by
participating cities and counties during the preceding year
under section 134.34, subdivision 4.
Subd. 6. [BASIC SYSTEM SUPPORT GRANT.] A regional public
library district that meets federal and state requirements for a
regional library basic system support grant is eligible to
receive a grant. A regional library basic system support grant
shall not be made to a regional public library district if the
district board reduces its levy for operation of public library
service below the amount of the levy in the preceding year.
Subd. 7. [LIBRARY BUILDINGS.] In addition to the levy
authorized in subdivision 5 and all other levies authorized for
cities and counties, a city or county served by a library
district may levy for the construction, acquisition,
maintenance, and utilities costs of library buildings. The
board of a district may issue bonds, with an election, according
to chapter 475 or levy under this section a special capital levy
for capital improvements for a library building. A district may
purchase or lease a building to be used for library purposes
from a city or county.
Subd. 8. [BORROW MONEY.] The board of a district may
borrow money and issue tax anticipation certificates as needed
to provide library services or for library buildings.
Subd. 9. [TRANSITION PROVISIONS.] If a regional public
library system is reorganized into a regional public library
district there will be a transition period. The transition
period shall begin at the time the regional public library
system board adopts a resolution that recommends formation of a
district to its participants and that sets an effective date for
the establishment of the district. During the transition period
participating counties and cities must fund public library
services under their existing contracts, and planning for
administrative changes may occur. The regional public library
system board shall continue until the district board members
assume their duties, at which time the transition period ends.
Subd. 10. [ASSUMPTION OF ASSETS, LIABILITIES, AND
CONTRACTS.] Upon assumption of responsibilities by the regional
public library district board, the regional public library
system assets, liabilities, and existing contracts, including
contracts negotiated under chapter 179A, shall become the
assets, liabilities, and contracts of the regional public
library district board.
Sec. 4. Minnesota Statutes 1992, section 134.35,
subdivision 1, is amended to read:
Subdivision 1. [GRANT APPLICATION.] Any regional public
library system which qualifies according to the provisions of
section 134.34 may apply for an annual grant for regional
library basic system support. Regional public library districts
under section 134.201 may not compensate board members using
grant funds. The amount of each grant for each fiscal year
shall be calculated as provided in this section.
Sec. 5. Minnesota Statutes 1992, section 134.351,
subdivision 4, is amended to read:
Subd. 4. [GOVERNANCE.] In any area where the boundaries of
a proposed multicounty, multitype library system coincide with
the boundaries of the regional library system or district, the
regional library system or district board shall be designated as
the governing board for the multicounty, multitype library
system. In any area where a proposed multicounty, multitype
library system encompasses more than one regional library system
or district, the governing board of the multicounty, multitype
library system shall consist of nine members appointed by the
cooperating regional library system or district boards from
their own membership in proportion to the population served by
each cooperating regional library system or district. In each
multicounty, multitype library system there shall be established
an advisory committee consisting of two representatives of
public libraries, two representatives of school media services,
one representative of special libraries, one representative of
public supported academic libraries, and one representative of
private academic libraries. The advisory committee shall
recommend needed policy to the system governing board.
Sec. 6. Minnesota Statutes 1992, section 204D.19, is
amended by adding a subdivision to read:
Subd. 5. [PROHIBITION.] No special election shall be held
under this section on the second Tuesday in December.
Sec. 7. Minnesota Statutes 1992, section 205.10, is
amended by adding a subdivision to read:
Subd. 3. [PROHIBITION.] No special election shall be held
under this section on the second Tuesday in December.
Sec. 8. Minnesota Statutes 1992, section 205A.05,
subdivision 1, is amended to read:
Subdivision 1. [QUESTIONS.] Special elections must be held
for a school district on a question on which the voters are
authorized by law to pass judgment. The school board may on its
own motion call a special election to vote on any matter
requiring approval of the voters of a district. Upon petition
of 50 or more voters of the school district or five percent of
the number of voters voting at the preceding regular school
district election, the school board shall by resolution call a
special election to vote on any matter requiring approval of the
voters of a district. A question is carried only with the
majority in its favor required by law. The election officials
for a special election are the same as for the most recent
school district general election unless changed according to
law. Otherwise, special elections must be conducted and the
returns made in the manner provided for the school district
general election. A special election may not be held during the
30 days before and the 30 days after the state primary or state
general election, or on the second Tuesday in December. In
addition, a special election may not be held during the 20 days
before and the 20 days after any regularly scheduled election of
a municipality wholly or partially within the school district.
Notwithstanding any other law to the contrary, the time period
in which a special election must be conducted under any other
law may be extended by the school board to conform with the
requirements of this subdivision.
Sec. 9. Minnesota Statutes 1992, section 275.065,
subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The
county auditor shall prepare and the county treasurer shall
deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed
on the county's current year's assessment roll, a notice of
proposed property taxes and, in the case of a town, final
property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority other than a town
proposes to collect for taxes payable the following year and,
for a town, the amount of its final levy. It must clearly state
that each taxing authority, other than a town or special taxing
district including regional library districts established under
section 134.201, and including the metropolitan taxing districts
as defined in paragraph (i), but excluding all other special
taxing districts and towns, will hold a public meeting to
receive public testimony on the proposed budget and proposed or
final property tax levy, or, in case of a school district, on
the current budget and 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.
For 1993, the notice must clearly state that each taxing
authority holding a public meeting will describe the increases
or decreases of the total budget, including employee and
independent contractor compensation in the prior year, current
year, and the proposed budget year.
(d) The notice must state for each parcel:
(1) the market value of the property as defined determined
under section 272.03, subdivision 8 273.11, and used for
computing property taxes payable in the following year and for
taxes payable in the current year; and, in the case of
residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform
taxpayers of the years to which the market values apply and that
the values are final values;
(2) by county, city or town, school district excess
referenda levy, remaining school district levy, regional library
district, if in existence, the total of the metropolitan special
taxing districts as defined in paragraph (i) and the sum of the
remaining special taxing districts, and as a total of the taxing
authorities, including all special taxing districts, the
proposed or, for a town, final net tax on the property for taxes
payable the following year and the actual tax for taxes payable
the current year. In the case of the city of Minneapolis, the
levy for the Minneapolis library board and the levy for
Minneapolis park and recreation shall be listed separately from
the remaining amount of the city's levy. In the case of a
parcel where tax increment or the fiscal disparities areawide
tax applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide
tax must each be stated separately and not included in the sum
of the special taxing districts; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed or, for a
town, final taxes payable the following year, expressed as a
dollar amount and as a percentage.
(e) The notice must clearly state that the proposed or
final 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;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) any additional amount levied in lieu of a local sales
and use tax, unless this amount is included in the proposed or
final taxes.
(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead and the homeowner provides
satisfactory documentation to the county assessor that the
property is owned and has been used as the owner's homestead
prior to June 1 of that year, the assessor shall reclassify the
property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:
(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
(i) For purposes of this subdivision, subdivisions 5a and
6, "metropolitan special taxing districts" means the following
taxing districts in the seven-county metropolitan area that levy
a property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,
473.249, 473.325, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,
473.671, or 473.672;
(3) regional transit board under section 473.446; and
(4) metropolitan mosquito control commission under section
473.711.
For purposes of this section, any levies made by the
regional rail authorities in the county of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and
shall be discussed at that county's public hearing.
The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
the premises to which the notice must be mailed in order to
fulfill the requirements of this paragraph.
Sec. 10. Minnesota Statutes 1992, section 275.065,
subdivision 5a, is amended to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a
population of more than 1,000, county, a metropolitan special
taxing district as defined in subdivision 3, paragraph (i), a
regional library district established under section 134.201, or
school district shall advertise in a newspaper a notice of its
intent to adopt a budget and property tax levy or, in the case
of a school district, to review its current budget and proposed
property taxes payable in the following year, at a public
hearing. The notice must be published not less than two
business days nor more than six business days before the hearing.
For a city that has a population of more than 1,000 but
less than 2,500 the advertisement must be at least one-eighth
page in size of a standard-size or a tabloid-size newspaper.
The first headline in the advertisement stating the notice of
proposed property taxes and the notice of public hearing must be
in a type no smaller than 14-point, and the second headline must
be in a type no smaller than 12-point. The text of the
advertisement must be no smaller than 10-point, except that the
property tax amounts and percentages may be in 9-point type.
For a city that has a population of 2,500 or more, a county
or a school district, the first headline in the advertisement
stating the notice of proposed property taxes and the notice of
public hearing must be in a type no smaller than 30-point, and
the second headline must be in a type no smaller than 22-point.
The text of the advertisement must be no smaller than 14-point,
except that the property tax amounts and percentages may be in
12-point type.
The advertisement must be at least one-eighth page in size
of a standard-size or a tabloid-size newspaper. The
advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The
advertisement must be published in an official newspaper of
general circulation in the taxing authority. The newspaper
selected must be one of general interest and readership in the
community, and not one of limited subject matter. The
advertisement must appear in a newspaper that is published at
least once per week.
For purposes of this section, the metropolitan special
taxing district's advertisement must only be published in the
Minneapolis Star and Tribune and the St. Paul Pioneer Press.
(b) The advertisement must be in the following form, except
that the notice for a school district may include references to
the current budget in regard to proposed property taxes.
"NOTICE OF
PROPOSED PROPERTY TAXES
(City/County/School District/Metropolitan
Special Taxing District/Regional
Library District) of .........
The governing body of ........ will soon hold budget hearings
and vote on the property taxes for (city/county/metropolitan
special taxing district/regional library district services that
will be provided in 199_/school district services that will be
provided in 199_ and 199_).
NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing
and express their opinions on the proposed (city/county/school
district/metropolitan special taxing district/regional library
district) budget and property taxes, or in the case of a school
district, its current budget and proposed property taxes,
payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address)."
(c) A city with a population of 1,000 or less must
advertise by posted notice as defined in section 645.12,
subdivision 1. The advertisement must be posted at the time
provided in paragraph (a). It must be in the form required in
paragraph (b).
(d) For purposes of this subdivision, the population of a
city is the most recent population as determined by the state
demographer under section 4A.02.
(e) The commissioner of revenue, subject to the approval of
the chairs of the house and senate tax committees, shall
prescribe the form and format of the advertisement.
(f) For calendar year 1993, each taxing authority required
to publish an advertisement must include on the advertisement a
statement that information on the increases or decreases of the
total budget, including employee and independent contractor
compensation in the prior year, current year, and proposed
budget year will be discussed at the hearing.
(g) Notwithstanding paragraph (f), for 1993, the
commissioner of revenue shall prescribe the form, format, and
content of an advertisement comparing current and proposed
expense budgets for the metropolitan council, the metropolitan
airports commission, the metropolitan mosquito control
commission, and the regional transit board. The expense budget
must include occupancy, personnel, contractual and capital
improvement expenses. The form, format, and content of the
advertisement must be approved by the chairs of the house and
senate tax committees prior to publication.
Sec. 11. Minnesota Statutes 1992, section 275.065,
subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]
Between November 29 and December 20, the governing bodies of the
city and, county, metropolitan special taxing districts as
defined in subdivision 3, paragraph (i), and regional library
districts shall each hold a public hearing to adopt discuss and
seek public comment on 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 review its
current budget and adopt its proposed property tax levy for
taxes payable in the following year. The metropolitan special
taxing districts shall be required to hold only a single joint
public hearing, the location of which will be determined by the
affected metropolitan agencies.
At the a subsequent 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 property tax levy certified under section 275.07 by a
city, county, metropolitan special taxing district, regional
library district, or school district must not exceed the
proposed levy determined under subdivision 1, 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 124.82,
subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2,
or 136C.411, after the proposed levy was certified;
(2) the amount of a city or county levy approved by the
voters 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;
(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; and
(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of revenue or the
commissioner of education after the proposed levy was certified.
At the hearing under this subdivision, 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. At the hearing held in
1993 only, specific information for previous year, current year,
and proposed budget year must be presented on:
(i) percent of total proposed budget representing total
compensation cost;
(ii) numbers of employees by general classification, and
whether full or part time;
(iii) number and budgeted expenditures for independent
contractors; and
(iv) the effect of budget increases or decreases on the
proposed property tax levy.
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. At a subsequent hearing, the governing body,
other than the governing body of a school district, shall adopt
its final property tax levy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, the
taxing authority must announce, prior to adjournment of the
hearing, the date, time, and place for the continuation of the
hearing. The continued hearing must be held at least five
business days but no more than 14 business days after the
original hearing.
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 governing body of a county shall hold its a hearing on the
second Tuesday in December each year, and may hold additional
hearings on other dates before December 20 if necessary for the
convenience of county residents. The county auditor shall
provide for the coordination of hearing dates for all cities and
school districts within the county.
By August 15 10, each school board and the board of the
regional library district shall certify to the county auditors
of the counties in which the school district or regional library
district is located the dates on which it elects to hold its
hearings and any continuations. If a school board or regional
library district does not certify the dates by August 15 10, the
auditor will assign the hearing date. The dates elected or
assigned must not conflict with the county hearing dates. The
county auditor shall coordinate with the metropolitan special
taxing districts as defined in subdivision 3, paragraph (i), a
date on which the metropolitan special taxing districts will
hold their joint public hearing and any continuation. By August
20, the county auditor shall notify the clerks of the cities
within the county of the dates on which school districts,
metropolitan special taxing districts, and regional library
districts have elected to hold their hearings. At the time a
city certifies its proposed levy under subdivision 1 it shall
certify the dates on which it elects to hold its hearings and
any continuations. The city must not select dates that conflict
with the county hearing dates, metropolitan special taxing
district dates, or with those elected by or assigned to the
school districts or regional library district in which the city
is located.
The county hearing dates and the city, metropolitan special
taxing district, regional library district, and school district
hearing dates must be designated on the notices required under
subdivision 3. The continuation dates need not be stated on the
notices.
This subdivision does not apply to towns and special taxing
districts other than regional library districts and metropolitan
special taxing districts.
Notwithstanding the requirements of this section, the
employer is required to meet and negotiate over employee
compensation as provided for in chapter 179A.
Sec. 12. Minnesota Statutes 1992, section 275.065, is
amended by adding a subdivision to read:
Subd. 8. [HEARING.] Notwithstanding any other provision of
law, Ramsey county, the city of St. Paul, and independent school
district No. 625 are authorized to and shall hold their public
hearing jointly. The hearing must be held on the second Tuesday
of December each year. The advertisement required in
subdivision 5a may be a joint advertisement. The hearing is
otherwise subject to the requirements of this section.
Ramsey county is authorized to hold an additional hearing
or hearings as provided under this section, provided that any
additional hearings must not conflict with the hearing dates of
the other taxing districts. However, if Ramsey county elects
not to hold such additional hearing or hearings, the joint
hearing required by this subdivision must be held in a St. Paul
location convenient to residents of Ramsey county.
Sec. 13. Minnesota Statutes 1992, section 276.04,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
shall provide for the printing of the tax statements. 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, the total of the
metropolitan special taxing districts as defined in section
275.065, subdivision 3, paragraph (i), school district excess
referenda levy, remaining school district levy, and the total of
other voter approved referenda levies based on market value
under section 275.61 must be separately stated. The amounts due
all other special 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) 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 local tax 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
local tax 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, except that the amount of credit received under section
273.135 must be separately stated and identified as "taconite
tax relief"; and
(6) the net tax payable in the manner required in paragraph
(a); and
(7) any additional amount of tax authorized under sections
124A.03, subdivision 2a, and 275.61. These amounts shall be
listed as "voter approved referenda levies.".
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, for taxes levied in 1991, and for all counties for taxes
levied in 1992 and thereafter, the commissioner must certify
this amount by September 1.
Sec. 14. [383A.75] [JOINT PROPERTY TAX ADVISORY
COMMITTEE.]
Subdivision 1. [CREATION.] There is created the joint
property tax advisory committee.
Subd. 2. [MEMBERSHIP.] The membership of the committee
consists of the mayor and up to three members of the city
council of the city of St. Paul; the county manager and up to
three members of the county board of Ramsey county; and the
superintendent and up to three members of the board of education
of independent school district No. 625. The chair of the Ramsey
county league of local governments shall be a nonvoting ex
officio member. The committee shall be convened by the mayor of
St. Paul, and at the first meeting, the chair for the first year
must be determined by lot, and thereafter, the chair must
annually rotate among the mayor or designee, the superintendent
or designee, and the county manager or designee.
Subd. 3. [DUTIES.] The committee is authorized to and
shall meet from time to time to make appropriate recommendations
for the efficient and effective use of property tax dollars
raised by the jurisdictions for programs, buildings, and
operations. In addition, the committee shall:
(1) identify trends and factors likely to be driving budget
outcomes over the next five years with recommendations for how
the jurisdictions should manage those trends and factors to
increase efficiency and effectiveness;
(2) agree, by August 1 of each year, on the appropriate
level of overall property tax levy for the three jurisdictions
and publicly report such to the governing bodies of each
jurisdiction for ratification or modification by resolution;
(3) plan for the joint truth-in-taxation hearings under
section 275.065, subdivision 8; and
(4) identify, by December 31 of each year, areas of the
budget to be targeted in the coming year for joint review to
improve services or achieve efficiencies.
In carrying out its duties, the committee shall consult
with public employees of each jurisdiction and with other
stakeholders of the city, county, and school district, as
appropriate.
Subd. 4. [STAFF; FUNDING.] The committee must be staffed
by employees as designated by each jurisdiction. The committee
may also seek public or private funding from any source to
assist its work and may utilize volunteer help as appropriate.
Subd. 5. [RECOGNITION OF INNOVATIVE EFFORTS BY LOCAL
EMPLOYEES.] The committee may use public or private funding to
recognize or reward efforts by local government employees to
restructure service delivery to improve efficiency or achieve
cost savings.
Sec. 15. Minnesota Statutes 1992, section 473.13,
subdivision 1, is amended to read:
Subdivision 1. [BUDGET.] On or before October 1 December
20 of each year the council, after a the public hearing required
in section 275.065, shall adopt a final budget covering its
anticipated receipts and disbursements for the ensuing year and
shall decide upon the total amount necessary to be raised from
ad valorem tax levies to meet its budget. The budget shall
state in detail the expenditures for each program to be
undertaken, including the expenses for salaries, consultant
services, overhead, travel, printing, and other items. The
budget shall state in detail the capital expenditures of the
council for the budget year, based on a five-year capital
program adopted by the council and transmitted to the
legislature. After adoption of the budget, an increase of over
$10,000 in the council's budget, a program or department budget,
or a budget item, must be approved by the council before the
increase is allowed or the funds obligated. After adoption of
the budget and no later than October 1 five working days after
December 20, the council shall certify to the auditor of each
metropolitan county the share of the tax to be levied within
that county, which must be an amount bearing the same proportion
to the total levy agreed on by the council as the net tax
capacity of the county bears to the net tax capacity of the
metropolitan area. The maximum amount of any levy made for the
purpose of this chapter may not exceed the limits set by
sections 473.167 and 473.249.
Sec. 16. Minnesota Statutes 1992, section 473.1623,
subdivision 3, is amended to read:
Subd. 3. [FINANCIAL REPORT.] By December February 15 of
even-numbered years, the council, in consultation with the
advisory committee, shall publish a consolidated financial
report for the council and all metropolitan agencies and their
functions, services, and systems. The financial report must
cover the calendar year in which the report is published and the
two three years preceding and three two years succeeding that
year. The financial report must contain the following
information, for each agency, function, or system, respectively,
and in the aggregate, in a consistent format that allows
comparison over time and among agencies in expenditure and
revenue categories:
(1) financial policies, goals, and priorities;
(2) levels and allocation of public expenditure, including
capital, debt, operating, and pass-through funds, stated in the
aggregate and by appropriate functional, programmatic,
administrative, and geographic categories, and the changes in
expenditure levels and allocations that the report represents;
(3) the resources available under existing fiscal policy;
(4) additional resources, if any, that are or may be
required;
(5) changes in council or agency policies on regional
sources of revenue and in levels of debt, user charges, and
taxes;
(6) other changes in existing fiscal policy, on regional
revenues and intergovernmental aids respectively, that are
expected or that have been or may be recommended by the council
or the respective agencies;
(7) an analysis that links, as far as practicable, the uses
of funds and the sources of funds, by appropriate categories and
in the aggregate;
(8) a description of how the fiscal policies effectuate
current policy and implementation plans of the council and
agencies concerned; and
(9) a summary of significant changes in council and agency
finance and an analysis of fiscal trends.
The council shall present the report for discussion and
comment at a public meeting in the metropolitan area and
request, in writing, an opportunity to make presentations on the
report before appropriate committees of the legislature.
Sec. 17. Minnesota Statutes 1992, section 473.167,
subdivision 4, is amended to read:
Subd. 4. [STATE REVIEW.] The commissioner of revenue shall
certify the council's levy limitation under this section to the
council by August 1 of the levy year. The council must certify
its proposed property tax levy to the commissioner of revenue by
August 1 September 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 proposed budget is within the levy limitation imposed by
this section. The determination must be completed prior to
September 1 10 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. 18. Minnesota Statutes 1992, section 473.249,
subdivision 2, is amended to read:
Subd. 2. The commissioner of revenue shall certify the
council's levy limitation under this section to the council by
August 1 of the levy year. The council must certify its
proposed property tax levy to the commissioner of revenue
by August 1 September 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 proposed budget is within the levy limitation
imposed by this section. The determination shall be completed
prior to September 1 10 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. 19. Minnesota Statutes 1992, 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. The determination must be completed prior to
September 1 10 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. 20. Minnesota Statutes 1992, 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. The determination must be completed prior to September 1 10
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. 21. Laws 1953, chapter 387, section 1, is amended to
read:
Section 1. [Library board, Minneapolis.] The library board
of any city now or hereafter having more than 450,000
inhabitants may levy annually on all real and personal property
within such city a tax not exceeding four mills on each dollar
of the assessed valuation of such city for the establishment,
maintenance and government of the libraries of such city, and
for the payment of all other expenses proper and incidental to
the establishment, maintenance and government of such libraries.
The tax herein authorized to be levied shall not at any time be
in excess of the maximum rate of taxation fixed for the purposes
herein mentioned by any board or department of any such city
upon whom the duty of fixing the maximum rate of taxation for
the various boards and departments thereof is placed by the
charter of such city. For the purpose of determining such tax
limitations the property classified as Class 3b or as Class 3c
by Section 273.13 M.S. may be computed at 33 1/3 percent and 40
percent, respectively, of the full and true value of such real
property is not subject to any limitations on levies in the city
charter.
Sec. 22. Laws 1969, chapter 561, section 1, is amended to
read:
Section 1. [Minneapolis, city of; park improvement fund;
tax levy.] The board of park commissioners of the City of
Minneapolis may create a park improvement fund to be maintained
by an annual tax levy on the real and personal property of the
city not exceeding six-tenths of a mill on each dollar of the
assessed valuation of the city. The amount of any such levy
shall be subject to the supervision of any fiscal control agency
which is now or hereafter provided in the charter of any such
city, but is not subject to any charter limitation on the amount
of levies for this purpose.
Sec. 23. Laws 1971, chapter 373, section 1, is amended to
read:
Section 1. [MINNEAPOLIS, CITY OF; TAX LEVY FOR PARK AND
RECREATION FACILITIES.] Subdivision 1. The park and recreation
board of the city of Minneapolis may levy annually on the real
and personal property of the city a tax not exceeding 8.7 mills
on each dollar of the assessed valuation of the city for the
purpose of acquiring, equipping, improving, maintaining,
operating, and governing parks, parkways, playgrounds and other
recreational facilities, and conducting recreational programs
for the public use.
Sec. 24. Laws 1971, chapter 373, section 2, is amended to
read:
Sec. 2. Any levy under this act shall not be in addition
to any levy now authorized for any of such purposes by the
charter of the city or by Laws 1969, Chapter 592; the amount of
such levy shall be subject to the supervision of any fiscal
control agency which is now or hereafter provided in the charter
of any such city. All taxes so levied shall be certified to the
county auditor on or before October 10 September 1 each year,
and shall be collected with, and the payment thereof enforced,
in the same manner as the general tax and with like penalties
and interest.
Sec. 25. Laws 1971, chapter 455, section 1, is amended to
read:
Section 1. [MINNEAPOLIS, CITY OF; PARKS AND PARKWAYS;
MAINTENANCE FUND; CREATION OF FUND, TAX LEVY.] The park and
recreation board of the city of Minneapolis may create a park
rehabilitation and parkway maintenance fund to be maintained by
an annual tax levy on the real and personal property of the city
not exceeding 1.1 mills on each dollar of the assessed valuation
of the city. The amount of any such levy shall be subject to
the supervision of any fiscal control agency which is now or
hereafter provided in the charter of any such city, but is not
subject to any charter limitations on the amount of levies for
this purpose.
Sec. 26. [CANCELLATION OF LEVY LIMIT PENALTIES.]
Any penalty imposed on a local government under Minnesota
Statutes 1990, section 275.51, subdivision 4, is canceled
provided that (1) the penalty has not been collected from aid
payments to the local government by the end of calendar year
1992 and (2) the local government is not certified to receive
any aid in 1993 from which the penalty can be collected.
Sec. 27. [APPLICATION.]
The provisions of this article relating to metropolitan
taxing districts apply in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
Sec. 28. [REPEALER.]
Laws 1953, chapter 387, section 2; Laws 1963, chapter 603,
section 1; and Laws 1969, chapter 592, sections 1, 2, and 3, are
repealed.
Sec. 29. [EFFECTIVE DATE.]
Sections 1, 6 to 8, 13, 15 to 25, 27, and 28 are effective
for taxes levied in 1993, payable in 1994 and thereafter.
Section 3, subdivision 5, and the provisions of sections 9
to 11 relating to regional library districts are effective for
property taxes levied in 1994, payable in 1995, and thereafter.
The other provisions of sections 9 to 11 are effective for
property taxes levied in 1993, payable in 1994 and thereafter.
Sections 12 and 14 are effective the day following final
enactment and without local approval, as provided in Minnesota
Statutes, section 645.023, subdivision 1, clause (a), and shall
expire after December 31, 1997.
Section 26 is effective beginning with aids payable in
calendar year 1993.
ARTICLE 8
INCOME TAX AND FEDERAL UPDATE
Section 1. Minnesota Statutes 1992, section 289A.09, is
amended by adding a subdivision to read:
Subd. 3. [FEDERAL ANNUITIES; TAX WITHHOLDING REQUEST.] The
commissioner of revenue shall participate with the United States
Office of Personnel Management in a program of voluntary state
income tax withholding on the federal annuities of retired
federal employees. Upon the request of the taxpayer to the
commissioner of revenue, and only on request of the taxpayer,
the commissioner shall provide for state income tax withholding
on federal annuities paid to the taxpayer.
Sec. 2. Minnesota Statutes 1992, section 289A.20,
subdivision 2, is amended to read:
Subd. 2. [WITHHOLDING FROM WAGES, ENTERTAINER WITHHOLDING,
WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, AND
WITHHOLDING BY PARTNERSHIPS AND SMALL BUSINESS CORPORATIONS.]
(a) A tax required to be deducted and withheld during the
quarterly period must be paid on or before the last day of the
month following the close of the quarterly period, unless an
earlier time for payment is provided. A tax required to be
deducted and withheld from compensation of an entertainer and
from a payment to an out-of-state contractor must be paid on or
before the date the return for such tax must be filed under
section 289A.18, subdivision 2. Taxes required to be deducted
and withheld by partnerships and S corporations must be paid on
or before the date the return must be filed under section
289A.18, subdivision 2.
(b)(1) Unless clause (2) applies, if during any calendar
month, other than the last month of the calendar quarter, the
aggregate amount of the tax withheld during that quarter under
section 290.92, subdivision 2a or 3, or 290.923, subdivision 2,
exceeds $500, the employer shall deposit the aggregate amount
with the commissioner within 15 days after the close of the
calendar month.
(2) If at the close of any eighth-monthly period the
aggregate amount of undeposited taxes is $3,000 or more, the
employer, or person withholding tax under section 290.92,
subdivision 2a or 3, or 290.923, subdivision 2, shall deposit
the undeposited taxes with the commissioner within three banking
days after the close of the eighth-monthly period. For purposes
of this clause, the term "eighth-monthly period" means the first
three days of a calendar month, the fourth day through the
seventh day of a calendar month, the eighth day through the 11th
day of a calendar month, the 12th day through the 15th day of a
calendar month, the 16th day through the 19th day of a calendar
month, the 20th day through the 22nd day of a calendar month,
the 23rd day through the 25th day of a calendar month, or the
part of a calendar month following the 25th day of the
month. An employer who, during the previous quarter, withheld
more than $500 of tax under section 290.92, subdivision 2a or 3,
or 290.923, subdivision 2, must deposit tax withheld under those
sections with the commissioner within the time allowed to
deposit the employer's federal withheld employment taxes under
Treasury Regulation, section 31.6302-1, without regard to the
safe harbor or de minimus rules in subparagraph (f) or the
one-day rule in subsection (c), clause (3). Taxpayers must
submit a copy of their federal notice of deposit status to the
commissioner upon request by the commissioner.
(c) The commissioner may prescribe by rule other return
periods or deposit requirements. In prescribing the reporting
period, the commissioner may classify payors according to the
amount of their tax liability and may adopt an appropriate
reporting period for the class that the commissioner judges to
be consistent with efficient tax collection. In no event will
the duration of the reporting period be more than one year.
(d) If less than the correct amount of tax is paid to the
commissioner, proper adjustments with respect to both the tax
and the amount to be deducted must be made, without interest, in
the manner and at the times the commissioner prescribes. If the
underpayment cannot be adjusted, the amount of the underpayment
will be assessed and collected in the manner and at the times
the commissioner prescribes.
(e) If the aggregate amount of the tax withheld during a
fiscal year ending June 30 under section 290.92, subdivision 2a
or 3, is equal to or exceeds $240,000, the employer must remit
each required deposit in the subsequent calendar year by means
of a funds transfer as defined in section 336.4A-104, paragraph
(a). The funds transfer payment date, as defined in section
336.4A-401, must be on or before the date the deposit is due.
If the date the deposit is due is not a funds transfer business
day, as defined in section 336.4A-105, paragraph (a), clause
(4), the payment date must be on or before the funds transfer
business day next following the date the deposit is due.
Sec. 3. Minnesota Statutes 1992, section 289A.26,
subdivision 7, is amended to read:
Subd. 7. [REQUIRED INSTALLMENTS.] (a) Except as otherwise
provided in this subdivision, the amount of a required
installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the
term "required annual payment" means the lesser of:
(1)(i) for tax years beginning in calendar year 1992, 93 97
percent of the tax shown on the return for the taxable year, or,
if no return is filed, 93 97 percent of the tax for that year;
(ii) for tax years beginning after December 31, 1992, 95
percent of the tax shown on the return for the taxable year, or
if no return is filed 95 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of the
entity for the preceding taxable year provided the return was
for a full 12-month period, showed a liability, and was filed by
the entity.
(c) Except for determining the first required installment
for any taxable year, paragraph (b), clause (2), 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 (b), clause (2), must be recaptured by
increasing the next required installment by the amount of the
reduction.
(d) In the case of a required installment, if the
corporation establishes that the annualized income installment
is less than the amount determined in paragraph (a), 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 later required
installments to the extent the reductions have not previously
been recovered.
(e) The "annualized income installment" is the excess, if
any, of:
(1) 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
(2) the aggregate amount of any prior required installments
for the taxable year.
(3) 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 (1).
(4) The "applicable percentage" used in clause (1) is:
For the following The applicable
required installments: percentage is:
for tax years for tax years
beginning in beginning after
1992 December 31, 1992
1st 23.25 24.25 23.75
2nd 46.5 48.5 47.5
3rd 69.75 72.75 71.25
4th 93 97 95
(f)(1) If this paragraph applies, the amount determined for
any installment must be determined in the following manner:
(i) take the taxable income for the months during the
taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for
the 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 the months during the
taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is
the average percent that 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 only applies 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.
(3) In the case of a required installment determined under
this paragraph, if the entity determines that the installment is
less than the amount determined in paragraph (a), 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 later
required installments to the extent the reductions have not
previously been recovered.
Sec. 4. Minnesota Statutes 1992, section 289A.50,
subdivision 5, is amended to read:
Subd. 5. [WITHHOLDING OF REFUNDS FROM CHILD SUPPORT AND
MAINTENANCE DEBTORS.] (a) If a court of this state finds that a
person obligated to pay child support or maintenance is
delinquent in making payments, the amount of child support or
maintenance unpaid and owing, including attorney fees and costs
incurred in ascertaining or collecting child support or
maintenance, must be withheld from a refund due the person under
chapter 290. The public agency responsible for child support
enforcement or the parent or guardian of a child for whom the
support, attorney fees, and costs are owed or the party to whom
maintenance, attorney fees, and costs are owed may petition the
district or county court for an order providing for the
withholding of the amount of child support, maintenance,
attorney fees, and costs unpaid and owing as determined by court
order. The person from whom the refund may be withheld must be
notified of the petition under the rules of civil procedure
before the issuance of an order under this subdivision. The
order may be granted on a showing to the court that required
support or maintenance payments, attorney fees, and costs have
not been paid when they were due.
(b) On order of the court, the commissioner shall withhold
the money from the refund due to the person obligated to pay the
child support or maintenance. The amount withheld shall be
remitted to the public agency responsible for child support
enforcement or to, the parent or guardian petitioning on behalf
of the child, or the party to whom maintenance is owed, after
any delinquent tax obligations of the taxpayer owed to the
revenue department have been satisfied and after deduction of
the fee prescribed in section 270A.07, subdivision 1. An amount
received by the responsible public agency, or the petitioning
parent or guardian, or the party to whom maintenance is owed, in
excess of the amount of public assistance spent for the benefit
of the child to be supported, or the amount of any
support, maintenance, attorney fees, and costs that had been the
subject of the claim under this subdivision that has been paid
by the taxpayer before the diversion of the refund, must be paid
to the person entitled to the money. If the refund is based on
a joint return, the part of the refund that must be paid to the
petitioner is the proportion of the total refund that equals the
proportion of the total federal adjusted gross income of the
spouses that is the federal adjusted gross income of the spouse
who is delinquent in making the child support or maintenance
payments.
(c) A petition filed under this subdivision remains in
effect with respect to any refunds due under this section until
the support money or maintenance, attorney fees, and costs have
been paid in full or the court orders the commissioner to
discontinue withholding the money from the refund due the person
obligated to pay the support or maintenance, attorney fees, and
costs. If a petition is filed under this subdivision concerning
child support and a claim is made under chapter 270A with
respect to the individual's refund and notices of both are
received before the time when payment of the refund is made on
either claim, the claim relating to the liability that accrued
first in time must be paid first. The amount of the refund
remaining must then be applied to the other claim.
Sec. 5. Minnesota Statutes 1992, section 290.01,
subdivision 7, is amended to read:
Subd. 7. [RESIDENT.] The term "resident" means (1) any
individual domiciled in Minnesota, except that an individual is
not a "resident" for the period of time that the individual is a
"qualified individual" as defined in section 911(d)(1) of the
Internal Revenue Code of 1986, as amended through December 31,
1991, unless, during that period, a Minnesota homestead
application is filed for property in which the individual has an
interest if the qualified individual notifies the county within
three months of moving out of the country that homestead status
be revoked for the Minnesota residence of the qualified
individual, and the property is not classified as a homestead
while the individual remains a qualified individual; and (2) any
individual domiciled outside the state who maintains a place of
abode in the state and spends in the aggregate more than
one-half of the tax year in Minnesota, unless the individual or
the spouse of the individual is in the armed forces of the
United States, or the individual is covered under the
reciprocity provisions in section 290.081.
For purposes of this subdivision, presence within the state
for any part of a calendar day constitutes a day spent in the
state. Individuals shall keep adequate records to substantiate
the days spent outside the state.
The term "abode" means a dwelling maintained by an
individual, whether or not owned by the individual and whether
or not occupied by the individual, and includes a dwelling place
owned or leased by the individual's spouse.
Sec. 6. Minnesota Statutes 1992, section 290.01,
subdivision 19, is amended to read:
Subd. 19. [NET INCOME.] The term "net income" means the
federal taxable income, as defined in section 63 of the Internal
Revenue Code of 1986, as amended through the date named in this
subdivision, incorporating any elections made by the taxpayer in
accordance with the Internal Revenue Code in determining federal
taxable income for federal income tax purposes, and with the
modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund
thereof, as defined in section 851(a) or 851(h) of the Internal
Revenue Code, federal taxable income means investment company
taxable income as defined in section 852(b)(2) of the Internal
Revenue Code, except that:
(1) the exclusion of net capital gain provided in section
852(b)(2)(A) of the Internal Revenue Code does not apply; and
(2) the deduction for dividends paid under section
852(b)(2)(D) of the Internal Revenue Code must be applied by
allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C)
and 852(b)(5) of the Internal Revenue Code.
The net income of a real estate investment trust as defined
and limited by section 856(a), (b), and (c) of the Internal
Revenue Code means the real estate investment trust taxable
income as defined in section 857(b)(2) of the Internal Revenue
Code.
The Internal Revenue Code of 1986, as amended through
December 31, 1986, shall be in effect for taxable years
beginning after December 31, 1986. The provisions of sections
10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223,
10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the
Omnibus Budget Reconciliation Act of 1987, Public Law Number
100-203, the provisions of sections 1001, 1002, 1003, 1004,
1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013,
1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137,
6277, and 6282 of the Technical and Miscellaneous Revenue Act of
1988, Public Law Number 100-647, and the provisions of sections
7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of
1989, Public Law Number 101-239, shall be effective at the time
they become effective for federal income tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1987, shall be in effect for taxable years
beginning after December 31, 1987. The provisions of sections
4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011,
6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180,
6182, 6280, and 6281 of the Technical and Miscellaneous Revenue
Act of 1988, Public Law Number 100-647, the provisions of
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
of 1989, Public Law Number 101-239, and the provisions of
section 11702 of the Revenue Reconciliation Act of 1990, Public
Law Number 101-508, shall become effective at the time they
become effective for federal tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1988, shall be in effect for taxable years
beginning after December 31, 1988. The provisions of sections
7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206,
7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622,
7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget
Reconciliation Act of 1989, Public Law Number 101-239, the
provision of section 1401 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
and the provisions of sections 11701 and 11703 of the Revenue
Reconciliation Act of 1990, Public Law Number 101-508, shall
become effective at the time they become effective for federal
tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1989, shall be in effect for taxable years
beginning after December 31, 1989. The provisions of sections
11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of
the Revenue Reconciliation Act of 1990, Public Law Number
101-508, shall become effective at the time they become
effective for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1990, shall be in effect for taxable years
beginning after December 31, 1990.
The Internal Revenue Code of 1986, as amended through
December 31, 1991, shall be in effect for taxable years
beginning after December 31, 1991.
The provisions of sections 1936 and 1937 of the
Comprehensive National Energy Policy Act of 1992, Public Law
Number 102-486, shall become effective at the time they become
effective for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1992, shall be in effect for taxable years
beginning after December 31, 1992.
Except as otherwise provided, references to the Internal
Revenue Code in subdivisions 19a to 19g mean the code in effect
for purposes of determining net income for the applicable year.
Sec. 7. Minnesota Statutes 1992, section 290.01,
subdivision 19a, is amended to read:
Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For
individuals, estates, and trusts, there shall be added to
federal taxable income:
(1)(i) interest income on obligations of any state other
than Minnesota or a political or governmental subdivision,
municipality, or governmental agency or instrumentality of any
state other than Minnesota exempt from federal income taxes
under the Internal Revenue Code or any other federal statute,
and
(ii) exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, except the portion of
the exempt-interest dividends derived from interest income on
obligations of the state of Minnesota or its political or
governmental subdivisions, municipalities, governmental agencies
or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to
all shareholders represents 95 percent or more of the
exempt-interest dividends that are paid by the regulated
investment company as defined in section 851(a) of the Internal
Revenue Code, or the fund of the regulated investment company as
defined in section 851(h) of the Internal Revenue Code, making
the payment; and
(iii) for the purposes of items (i) and (ii), interest on
obligations of an Indian tribal government described in section
7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe
is located;
(2) the amount of income taxes paid or accrued within the
taxable year under this chapter and income taxes paid to any
other state or to any province or territory of Canada, to the
extent allowed as a deduction under section 63(d) of the
Internal Revenue Code, but the addition may not be more than the
amount by which the itemized deductions as allowed under section
63(d) of the Internal Revenue Code exceeds the amount of the
standard deduction as defined in section 63(c) of the Internal
Revenue Code. For the purpose of this paragraph, the
disallowance of itemized deductions under section 68 of the
Internal Revenue Code of 1986, income tax is the last itemized
deduction disallowed; and
(3) the capital gain amount of a lump sum distribution to
which the special tax under section 1122(h)(3)(B)(ii) of the Tax
Reform Act of 1986, Public Law Number 99-514, applies; and
(4) the amount of income taxes paid or accrued within the
taxable year under this chapter and income taxes paid to any
other state or any province or territory of Canada, to the
extent allowed as a deduction in determining federal adjusted
gross income. For the purpose of this paragraph, income taxes
do not include the taxes imposed by sections 290.0922,
subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729.
Sec. 8. Minnesota Statutes 1992, 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; or Indian tribal
governments;
(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. 9. Minnesota Statutes 1992, section 290.0671,
subdivision 1, is amended to read:
Subdivision 1. [CREDIT ALLOWED.] An individual is allowed
a credit against the tax imposed by this chapter equal to ten 15
percent of the credit for which the individual is eligible under
section 32 of the Internal Revenue Code of 1986, as amended
through December 31, 1991.
For a nonresident or part-year resident, the credit
determined under section 32 of the Internal Revenue Code of
1986, as amended through December 31, 1991, must be allocated
based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).
For a person who was a resident for the entire tax year and
has earned income not subject to tax under this chapter, the
credit must be allocated based on the ratio of federal adjusted
gross income reduced by the earned income not subject to tax
under this chapter over federal adjusted gross income.
Sec. 10. Minnesota Statutes 1992, 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
Minnesota charitable contribution deduction and non-Minnesota
charitable deductions to the extent they are included in federal
alternative minimum taxable income under section 57(a)(6) of the
Internal Revenue Code, and excluding the medical expense
deduction;
(3) for depletion allowances computed under section 613A(c)
of the Internal Revenue Code, with respect to each property (as
defined in section 614 of the Internal Revenue Code), to the
extent not included in federal alternative minimum taxable
income, the excess of the deduction for depletion allowable
under section 611 of the Internal Revenue Code for the taxable
year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion
deduction for the taxable year);
(4) to the extent not included in federal alternative
minimum taxable income, the amount of the tax preference for
intangible drilling cost under section 57(a)(2) of the Internal
Revenue Code determined without regard to subparagraph (E);
(5) 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, 1991 1992.
(c) "Investment interest" means investment interest as
defined in section 163(d)(3) of the Internal Revenue Code.
(d) "Tentative minimum tax" equals seven 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.
(g) "Minnesota charitable contribution deduction" means a
charitable contribution deduction under section 170 of the
Internal Revenue Code to or for the use of an entity described
in section 290.21, subdivision 3, clauses (a) to (e).
Sec. 11. Minnesota Statutes 1992, section 290.091,
subdivision 6, is amended 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) seven 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), determined
without regard to the last sentence of paragraph (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. 12. Minnesota Statutes 1992, section 290.0921,
subdivision 3, is amended to read:
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 certain 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 subparagraph (E) and 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.
(10) For purposes of calculating the adjustment for
adjusted current earnings in section 56(g) of the Internal
Revenue Code, the term "alternative minimum taxable income" as
it is used in section 56(g) of the Internal Revenue Code, means
alternative minimum taxable income as defined in this
subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal
Revenue Code.
(11) For purposes of determining the amount of adjusted
current earnings under section 56(g)(3) of the Internal Revenue
Code, no adjustment shall be made under section 56(g)(4) of the
Internal Revenue Code with respect to (i) the amount of foreign
dividend gross-up subtracted as provided in section 290.01,
subdivision 19d, clause (1), (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in
section 290.01, subdivision 19d, clause (10), or (iii) the
amount of royalties, fees or other like income subtracted as
provided in section 290.01, subdivision 19d, clause (11).
Items of tax preference must not be reduced below zero as a
result of the modifications in this subdivision.
Sec. 13. Minnesota Statutes 1992, section 290.191,
subdivision 4, is amended to read:
Subd. 4. [APPORTIONMENT FORMULA FOR CERTAIN MAIL ORDER
BUSINESSES.] If the business of a corporation, partnership, or
proprietorship consists exclusively of the selling of tangible
personal property and services in response to orders received by
United States mail or telephone, and 99 percent of the
taxpayer's property and payroll is within Minnesota, then the
taxpayer may apportion net income to Minnesota based solely upon
the percentage that the sales made within this state in
connection with the its trade or business during the tax period
are of the total sales wherever made in connection with the
trade or business during the tax period. Property and payroll
factors are disregarded. In determining eligibility for this
subdivision:
(1) the sale not in the ordinary course of business of
tangible or intangible assets used in conducting business
activities must be disregarded; and
(2) property and payroll at a distribution center outside
of Minnesota are disregarded if the sole activity at the
distribution center is the filling of orders, and no
solicitation of orders occurs at the distribution center.
Sec. 14. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall substitute the phrase "Internal Revenue Code of
1986, as amended through December 31, 1992" for the words
"Internal Revenue Code of 1986, as amended through December 31,
1991" where the phrase occurs in chapters 289A, 290, 290A, 291,
and 297, except for section 290.01, subdivision 19, and for the
words "Internal Revenue Code of 1986, as amended through
December 31, 1988," where the phrase occurs in chapter 298. In
the next edition of Minnesota Statutes, the revisor of statutes
shall substitute the phrase "Internal Revenue Code of 1986, as
amended through December 31, 1992," for references to the
Internal Revenue Code of 1954 or the Internal Revenue Code of
1986, as amended through dates set in sections 61A.276; 82A.02;
136.58; 181B.02; 181B.07; 246A.23; 246A.26, subdivisions 1, 2,
3, and 4; 272.02, subdivision 1; 273.11, subdivision 8; 297A.01,
subdivision 3; 297A.25, subdivision 25; 352.01, subdivision 2b;
354A.021, subdivision 5; 355.01, subdivision 9; and 356.62.
Sec. 15. [EFFECTIVE DATE.]
Section 2 is effective for payments received after December
31, 1993.
Section 3 is effective for tax years beginning after
December 31, 1993.
Sections 5 to 14 are effective for tax years beginning
after December 31, 1992.
ARTICLE 9
SALES AND SPECIAL TAXES
Section 1. [17.451] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 1 and 2.
Subd. 2. [FARMED CERVIDAE.] "Farmed cervidae" means
members of the cervidae family that are:
(1) raised for the purpose of producing fiber, meat, or
animal by-products or as breeding stock;
(2) held in a constructed enclosure designed to prevent
escape; and
(3) registered in a manner approved by the board of animal
health and marked or identified with a unique number or other
system approved by the board.
Subd. 3. [OWNER.] "Owner" means a person who owns or is
responsible for the raising of farmed cervidae.
Sec. 2. [17.452] [FARM-RAISED CERVIDAE.]
Subdivision 1. [PROMOTION AND COORDINATION.] (a) The
commissioner shall promote the commercial raising of farmed
cervidae and shall coordinate programs and rules related to the
commercial raising of farmed cervidae. Farmed cervidae
research, projects, and demonstrations must be reported to the
commissioner before state appropriations for the research
projects or demonstrations are encumbered. The commissioner
shall maintain a data base of information on raising farmed
cervidae.
(b) The commissioner shall appoint a farmed cervidae
advisory committee to advise the commissioner on farmed cervidae
issues. The advisory committee shall consist of representatives
from the University of Minnesota, the commissioner of
agriculture, the board of animal health, the commissioner of
natural resources, the commissioner of trade and economic
development, a statewide elk breeders association, a statewide
deer breeders association, a statewide deer farmers association,
and members of the house of representatives and the senate. The
committee shall meet at least twice a year at the call of the
commissioner of agriculture.
Subd. 2. [DEVELOPMENT PROGRAM.] The commissioner may
establish a Minnesota development and aid program that may
support applied research, demonstration, financing, marketing,
promotion, breeding development, registration, and other
services for owners.
Subd. 3. [REPORT.] The commissioner shall include
information on farmed cervidae in the department's statistical
reports on Minnesota agriculture.
Subd. 4. [FARMED CERVIDAE ARE LIVESTOCK.] Farmed cervidae
are livestock and are not wild animals for purposes of game
farm, hunting, or wildlife laws. Farmed cervidae and their
products are farm products and livestock for purposes of
financial transactions and collateral.
Subd. 5. [RAISING FARMED CERVIDAE IS AN AGRICULTURAL
PURSUIT.] Raising farmed cervidae is agricultural production and
an agricultural pursuit.
Subd. 6. [RUNNING AT LARGE PROHIBITED.] (a) An owner may
not allow farmed cervidae to run at large. The owner must make
all reasonable efforts to return escaped farmed cervidae to
their enclosures as soon as possible. The owner must notify the
commissioner of natural resources of the escape of farmed red
deer if the farmed red deer are not returned or captured by the
owner within 72 hours of their escape.
(b) An owner is liable for expenses of another person in
capturing, caring for, and returning farmed cervidae that have
left their enclosures if the person capturing the farmed
cervidae contacts the owner as soon as possible.
(c) If an owner is unwilling or unable to capture escaped
farmed cervidae, the commissioner of natural resources may
destroy the escaped farmed cervidae under this paragraph if the
escaped farmed cervidae are a threat to the health or population
of native species. The commissioner must allow the owner to
attempt to capture the escaped farmed cervidae prior to
destroying the farmed cervidae. Farmed cervidae that are not
captured by 14 days after escape may be destroyed.
(d) The owner must notify the commissioner of natural
resources of the escape of farmed cervidae from a quarantined
herd if the farmed cervidae are not returned to or captured by
the owner within 72 hours of their escape. The escaped farmed
cervidae from the quarantined herd may be destroyed by the
commissioner of natural resources if the escaped farmed cervidae
are a threat to the health or population of native species.
Subd. 7. [FARMING IN NATIVE ELK AREA.] A person may not
raise farmed red deer in the native elk area without written
approval of the commissioner of natural resources. The native
elk area is the area north of U.S. Highway 2 and west of U.S.
Highway 71 and trunk highway 72. The commissioner shall review
the proposed farming operation and approve with any condition or
deny approval based on risks to the native elk population.
Subd. 8. [SLAUGHTER.] Farmed cervidae must be slaughtered
and inspected in accordance with the United States Department of
Agriculture voluntary program for exotic animals, Code of
Federal Regulations, title 9, part 352.
Subd. 9. [SALES OF FARMED CERVIDAE AND MEAT
PRODUCTS.] Persons selling or buying farmed cervidae sold as
livestock, sold for human consumption, or sold for slaughter
must comply with chapters 17A, 31, 31A, and 31B.
Subd. 10. [FENCING.] (a) Farmed cervidae must be confined
in a manner designed to prevent escape. Fencing must meet the
requirements in this subdivision unless an alternative is
specifically approved by the commissioner. The board of animal
health shall follow the guidelines established by the United
States Department of Agriculture in the program for eradication
of bovine tuberculosis. Fencing must be of the following
heights:
(1) for farmed deer, at least 75 inches; and
(2) for farmed elk, at least 90 inches.
(b) The farmed cervidae advisory committee shall establish
guidelines designed to prevent the escape of farmed cervidae and
other appropriate management practices.
(c) The commissioner of agriculture in consultation with
the commissioner of natural resources shall adopt rules
prescribing fencing criteria for farmed cervidae.
Subd. 11. [DISEASE INSPECTION.] Farmed cervidae herds are
subject to chapter 35 and the rules of the board of animal
health in the same manner as livestock and domestic animals,
including provisions relating to importation and transportation.
Subd. 12. [IDENTIFICATION.] (a) Farmed cervidae must be
identified by brands, markings, tags, collars, electronic
implants, tattoos, or other means of identification approved by
the board of animal health. The board shall authorize discrete
permanent identification for farmed cervidae in public displays
or other forums where visible identification is objectionable.
(b) Identification of farmed cervidae is subject to
sections 35.821 to 35.831.
(c) The board of animal health shall register farmed
cervidae upon request of the owner. The owner must submit the
registration request on forms provided by the board. The forms
must include sales receipts or other documentation of the origin
of the cervidae. The board shall provide copies of the
registration information to the commissioner of natural
resources upon request. The owner must keep written records of
the acquisition and disposition of registered farmed cervidae.
Subd. 13. [INSPECTION.] The commissioner of agriculture
and the board of animal health may inspect farmed cervidae and
farmed cervidae records. The commissioner of natural resources
may inspect farmed cervidae and farmed cervidae records with
reasonable suspicion that laws protecting native wild animals
have been violated. The owner must be notified in writing at
the time of the inspection of the reason for the inspection and
informed in writing after the inspection of whether (1) the
cause of the inspection was unfounded; or (2) there will be an
ongoing investigation or continuing evaluation.
Subd. 14. [CONTESTED CASE HEARING.] A person raising
farmed cervidae that is aggrieved with any decision regarding
the farmed cervidae may request a contested case hearing under
chapter 14.
Sec. 3. [17.453] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 3 and 4.
Subd. 2. [OWNER.] "Owner" means a person who owns or is
responsible for the raising of ratitae.
Subd. 3. [RATITAE.] "Ratitae" means members of the ratitae
family (including ostriches, emus, and rheas) that are raised
for the purpose of producing fiber, meat, or animal by-products
or as breeding stock.
Sec. 4. [17.454] [RATITAE.]
Subdivision 1. [RATITAE ARE LIVESTOCK.] Ratitae are
livestock and are not wild animals for purposes of hunting or
wildlife laws. Ratitae and their products are farm products and
livestock for purposes of financial transactions and collateral.
Subd. 2. [RAISING RATITAE IS AN AGRICULTURAL
PURSUIT.] Raising ratitae is agricultural production and an
agricultural pursuit.
Subd. 3. [SALES OF RATITAE AND MEAT PRODUCTS.] Persons
selling or buying ratitae sold as livestock, sold for human
consumption, or sold for slaughter must comply with chapters
17A, 28A, 31, 31A, and 31B.
Subd. 4. [SLAUGHTER.] Ratitae must be slaughtered and
inspected in accordance with the United States Department of
Agriculture voluntary inspection program for exotic animals,
Code of Federal Regulations, title 9, part 352.
Subd. 5. [DISEASE INSPECTION.] Ratitae are subject to
chapter 35 and the rules of the board of animal health in the
same manner as livestock and domestic animals, including
provisions relating to importation and transportation.
Sec. 5. [17.455] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 5 and 6.
Subd. 2. [LLAMA.] "Llama" means a member of the genus lama
that is raised for the purpose of producing fiber, meat, or
animal by-products or as breeding stock.
Subd. 3. [OWNER.] "Owner" means a person who owns or is
responsible for the raising of llamas.
Sec. 6. [17.456] [LLAMA.]
Subdivision 1. [LLAMAS ARE LIVESTOCK.] Llamas are
livestock and are not wild animals for purposes of hunting or
wildlife laws. Llamas and their products are farm products and
livestock for purposes of financial transactions and collateral.
Subd. 2. [RAISING LLAMAS IS AN AGRICULTURAL
PURSUIT.] Raising llamas is agricultural production and an
agricultural pursuit.
Subd. 3. [SALES OF LLAMAS AND MEAT PRODUCTS.] Persons
selling or buying llamas sold as livestock, sold for human
consumption, or sold for slaughter must comply with chapters
17A, 28A, 31, 31A, and 31B.
Subd. 4. [SLAUGHTER.] Llamas must be slaughtered and
inspected in accordance with the United States Department of
Agriculture voluntary inspection program for exotic animals,
Code of Federal Regulations, title 9, part 352.
Subd. 5. [DISEASE INSPECTION.] Llamas are subject to
chapter 35 and the rules of the board of animal health in the
same manner as livestock and domestic animals, including
provisions relating to importation and transportation.
Sec. 7. Minnesota Statutes 1992, section 17A.03,
subdivision 5, is amended to read:
Subd. 5. [LIVESTOCK.] "Livestock" means cattle, sheep,
swine, horses intended for slaughter, mules, farmed cervidae, as
defined in section 17.451, subdivision 2, llamas, as defined in
section 17.455, subdivision 2, ratitae, as defined in section
17.453, subdivision 3, and goats.
Sec. 8. Minnesota Statutes 1992, section 31.51,
subdivision 9, is amended to read:
Subd. 9. "Animal" means cattle, swine, sheep, goats,
farmed cervidae, as defined in section 17.451, subdivision 2,
horses, mules or other equines, llamas as defined in section
17.455, subdivision 2, and ratitae, as defined in section
17.453, subdivision 3.
Sec. 9. Minnesota Statutes 1992, section 31A.02,
subdivision 4, is amended to read:
Subd. 4. [ANIMALS.] "Animals" means cattle, swine, sheep,
goats, farmed cervidae, as defined in section 17.451,
subdivision 2, llamas, as defined in section 17.455, subdivision
2, ratitae, as defined in section 17.453, subdivision 3, horses,
equines, and other large domesticated animals, not including
poultry.
Sec. 10. Minnesota Statutes 1992, section 31A.02,
subdivision 10, is amended to read:
Subd. 10. [MEAT FOOD PRODUCT.] "Meat food product" means a
product usable as human food and made wholly or in part from
meat or a portion of the carcass of cattle, sheep, swine, farmed
cervidae, as defined in section 17.451, subdivision 2, llamas,
as defined in section 17.455, subdivision 2, ratitae, as defined
in section 17.453, subdivision 3, or goats. "Meat food product"
does not include products which contain meat or other portions
of the carcasses of cattle, sheep, swine, farmed cervidae,
llamas, ratitae, or goats only in a relatively small proportion
or that historically have not been considered by consumers as
products of the meat food industry, and which are exempted from
definition as a meat food product by the commissioner under the
conditions the commissioner prescribes to assure that the meat
or other portions of carcasses contained in the products are not
adulterated and that the products are not represented as meat
food products.
"Meat food product," as applied to products of equines, has
a meaning comparable to that for cattle, sheep, swine, farmed
cervidae, llamas, ratitae, and goats.
Sec. 11. Minnesota Statutes 1992, section 31B.02,
subdivision 4, is amended to read:
Subd. 4. [LIVESTOCK.] "Livestock" means live or dead
cattle, sheep, swine, horses, mules, farmed cervidae, as defined
in section 17.451, subdivision 2, llamas, as defined in section
17.455, subdivision 2, ratitae, as defined in section 17.453,
subdivision 3, or goats.
Sec. 12. Minnesota Statutes 1992, section 35.821,
subdivision 4, is amended to read:
Subd. 4. [MARK.] "Mark" means a permanent identification
cut from the ear or ears of a live animal and for farmed
cervidae, as defined in section 17.451, subdivision 2, means a
tag, collar, electronic implant, tattoo, or other means of
identification approved by the board.
Sec. 13. Minnesota Statutes 1992, section 115B.22,
subdivision 7, is amended to read:
Subd. 7. [DISPOSITION OF PROCEEDS.] After reimbursement to
the department of revenue for costs incurred in administering
sections 115B.22 and 115B.24, the proceeds of the taxes imposed
under this section including any interest and penalties shall be
deposited in the environmental response, compensation, and
compliance account.
Sec. 14. Minnesota Statutes 1992, section 239.785, is
amended to read:
239.785 [LIQUEFIED PETROLEUM GAS SALES.]
Subdivision 1. [LIABILITY FOR PAYMENT.] (a) The operator
of a terminal that sells located in Minnesota from which
liquefied petroleum gas for resale to retail customers is
dispensed for use or sale in this state other than for delivery
to another terminal shall pay a fee equal to one mill for each
gallon of liquefied petroleum gas sold by the terminal dispensed.
(b) Any person in Minnesota, other than the operator of a
terminal, receiving liquefied petroleum gas from a source
outside of Minnesota for use or sale in this state shall pay a
fee equal to one mill for each gallon of liquefied petroleum gas
received.
Subd. 2. [DUE DATES FOR FILING OF RETURNS AND PAYMENT.]
The fee must be remitted monthly to on a form prescribed by the
commissioner of revenue for deposit in the general fund. The
fee must be paid and the return filed on or before the 23rd day
of each month following the month in which the liquefied
petroleum gas was delivered or received.
Subd. 3. [PENALTIES.] An operator or person who fails to
pay the fee imposed under this section is subject to the
penalties provided in sections 296.15 and 296.25.
Subd. 4. [COMMISSIONER'S AUTHORITY.] The provisions of
chapter 296 relating to the commissioner's authority to audit,
assess, and collect the tax imposed by that chapter apply to the
fee imposed by this section.
Subd. 5. [INTEREST.] Fees and penalties are subject to
interest at the rate provided in section 270.75.
Sec. 15. Minnesota Statutes 1992, section 289A.56,
subdivision 3, is amended to read:
Subd. 3. [WITHHOLDING TAX, ENTERTAINER WITHHOLDING TAX,
WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, ESTATE
TAX, AND SALES TAX OVERPAYMENTS.] When a refund is due for
overpayments of withholding tax, entertainer withholding tax,
withholding from payments to out-of-state contractors, or estate
tax, or sales tax, interest is computed 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.
For purposes of computing interest on sales and use tax
refunds, interest is paid from the date of payment to the date
the refund is paid or credited, if the refund claim includes a
detailed schedule reflecting the tax periods covered in the
claim. If the refund claim submitted does not include a
detailed schedule reflecting the tax periods covered in the
claim, interest is computed from the date the claim was filed.
Sec. 16. Minnesota Statutes 1992, section 289A.63,
subdivision 3, is amended to read:
Subd. 3. [SALES WITHOUT PERMIT; VIOLATIONS.] (a) A person
who engages in the business of making retail sales in Minnesota
without the permit or permits required under chapter 297A, or a
responsible officer of a corporation who so engages in business,
is guilty of a gross misdemeanor.
(b) A person who engages in the business of making retail
sales in Minnesota after revocation of a permit under section
297A.07, when the commissioner has not issued a new permit, is
guilty of a felony.
Sec. 17. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 33a. [REREFINED WASTE OIL.] "Rerefined waste oil"
means waste lubrication oils that have been cracked and
distilled to produce a petroleum distillate intended for use as
a motor fuel in internal combustion diesel engines.
Sec. 18. Minnesota Statutes 1992, section 296.01, is
amended by adding a subdivision to read:
Subd. 27a. [PASSENGER SNOWMOBILE.] "Passenger snowmobile"
means a self-propelled vehicle designed for travel on snow or
ice, steered by skis or runners, with an enclosed passenger
section that provides seating for not less than four nor more
than twelve passengers.
Sec. 19. Minnesota Statutes 1992, section 296.02,
subdivision 8, is amended to read:
Subd. 8. [CREDITS FOR SALES TO GOVERNMENTS AND SCHOOLS.] A
distributor shall be allowed a credit of 80 cents for every
gallon of fuel grade alcohol blended with gasoline to produce
agricultural alcohol gasoline which is sold to the state, local
units of government, or for use in the transportation of pupils
to and from school-related events in school vehicles owned by or
under contract to a school district. This reduction is in lieu
of the reductions provided in subdivision 7.
Sec. 20. [296.035] [CREDIT FOR CERTAIN FUELS.]
A licensed distributor or a special fuel dealer, either of
which elects to pay the tax under section 296.12, subdivision
3a, at the time special fuel is sold or delivered into the
supply tank of a licensed motor vehicle, is allowed a credit of
ten cents per gallon for each gallon of rerefined waste oil sold
or delivered into the supply tank of a licensed motor vehicle.
A credit of ten cents per gallon is allowed a licensed
distributor or special fuel dealer for each gallon of rerefined
waste oil delivered into the storage tank of a retail service
station operated by the distributor or a special fuel dealer, if
either the distributor or special fuel dealer does not elect to
pay the tax under section 296.12, subdivision 3a, at the time
special fuel is sold or delivered into the supply tank of a
licensed motor vehicle. Bulk purchasers are allowed a credit of
ten cents per gallon for each gallon of rerefined waste oil that
is purchased by them and used in a licensed motor vehicle.
Sec. 21. Minnesota Statutes 1992, section 296.18,
subdivision 1, is amended to read:
Subdivision 1. [CLAIM; FUEL USED IN OTHER VEHICLES.] Any
person who shall buy and use gasoline for a qualifying purpose
other than use in motor vehicles, snowmobiles except as provided
in clause (2), or motorboats, or special fuel for a qualifying
purpose other than use in licensed motor vehicles, and who shall
have paid the Minnesota excise tax directly or indirectly
through the amount of the tax being included in the price of the
gasoline or special fuel, or otherwise, shall be reimbursed and
repaid the amount of the tax paid upon filing with the
commissioner a signed claim in writing in the form and
containing the information the commissioner shall require and
accompanied by the original invoice thereof. By signing any
such claim which is false or fraudulent, the applicant shall be
subject to the penalties provided in this section for knowingly
making a false claim. The claim shall set forth the total
amount of the gasoline so purchased and used by the applicant
other than in motor vehicles, or special fuel so purchased and
used by the applicant other than in licensed motor vehicles, and
shall state when and for what purpose it was used. When a claim
contains an error in computation or preparation, the
commissioner is authorized to adjust the claim in accordance
with the evidence shown on the claim or other information
available to the commissioner. The commissioner, on being
satisfied that the claimant is entitled to the payments, shall
approve the claim and transmit it to the commissioner of
finance. No repayment shall be made unless the claim and
invoice shall be filed with the commissioner within one year
from the date of the purchase. The postmark on the envelope in
which the claim is mailed shall determine the date of filing.
The words "gasoline" or "special fuel" as used in this
subdivision do not include aviation gasoline or special fuel for
aircraft. Gasoline or special fuel bought and used for a
"qualifying purpose" means:
(1) Gasoline or special fuel used in carrying on a trade or
business, used on a farm situated in Minnesota, and used for a
farming purpose. "Farm" and "farming purpose" have the meanings
given them in section 6420(c)(2), (3), and (4) of the Internal
Revenue Code of 1986, as amended through December 31, 1988.
(2) Gasoline or special fuel used for off-highway business
use. "Off-highway business use" means any use by a person in
that person's trade, business, or activity for the production of
income. "Off-highway business use" includes use of a passenger
snowmobile off the public highways as part of the operations of
a resort as defined in section 157.01, subdivision 1.
"Off-highway business use" does not include use as a fuel in a
motor vehicle which, at the time of use, is registered or is
required to be registered for highway use under the laws of any
state or foreign country.
(3) Gasoline or special fuel placed in the fuel tanks of
new motor vehicles, manufactured in Minnesota, and shipped by
interstate carrier to destinations in other states or foreign
countries.
Sec. 22. Minnesota Statutes 1992, section 297A.01,
subdivision 6, is amended to read:
Subd. 6. "Use" includes the exercise of any right or power
over tangible personal property, or tickets or admissions to
places of amusement or athletic events, purchased from a
retailer incident to the ownership of any interest in that
property, except that it does not include the sale of that
property in the regular course of business.
"Use" includes the consumption of printed materials which
are consumed in the creation of nontaxable advertising that is
distributed, either directly or indirectly, within Minnesota.
Sec. 23. Minnesota Statutes 1992, section 297A.01,
subdivision 13, is amended to read:
Subd. 13. "Agricultural production," as used in section
297A.25, subdivision 9, includes, but is not limited to,
horticulture; floriculture; raising of pets, fur bearing
animals, research animals, farmed cervidae, as defined in
section 17.451, subdivision 2, llamas, as defined in section
17.455, subdivision 2, ratitae, as defined in section 17.453,
subdivision 3, and horses.
Sec. 24. Minnesota Statutes 1992, section 297A.01,
subdivision 15, is amended to read:
Subd. 15. "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used
directly and principally in the production for sale, but not
including the processing, of livestock, dairy animals, dairy
products, poultry and poultry products, fruits, vegetables,
forage, grains and bees and apiary products. "Farm machinery"
includes:
(1) machinery for the preparation, seeding or cultivation
of soil for growing agricultural crops and sod, harvesting and
threshing of agricultural products, harvesting or mowing of sod,
and certain machinery for dairy, livestock and poultry farms;
(2) barn cleaners, milking systems, grain dryers, automatic
feeding systems and similar installations, whether or not the
equipment is installed by the seller and becomes part of the
real property;
(3) irrigation equipment sold for exclusively agricultural
use, including pumps, pipe fittings, valves, sprinklers and
other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, except
irrigation equipment which is situated below ground and
considered to be a part of the real property;
(4) logging equipment, including chain saws used for
commercial logging; and
(5) fencing used for the containment of farmed cervidae, as
defined in section 17.451, subdivision 2; and
(6) primary and backup generator units used to generate
electricity for the purpose of operating farm machinery, as
defined in this subdivision, or providing light or space heating
necessary for the production of livestock, dairy animals, dairy
products, or poultry and poultry products.
Repair or replacement parts for farm machinery shall not be
included in the definition of farm machinery.
Tools, shop equipment, grain bins, feed bunks, fencing
material except fencing material covered by clause (5),
communication equipment and other farm supplies shall not be
considered to be farm machinery. "Farm machinery" does not
include motor vehicles taxed under chapter 297B, snowmobiles,
snow blowers, lawn mowers except those used in the production of
sod for sale, garden-type tractors or garden tillers and the
repair and replacement parts for those vehicles and machines.
Sec. 25. Minnesota Statutes 1992, section 297A.01,
subdivision 16, is amended to read:
Subd. 16. [CAPITAL EQUIPMENT.] (a) Capital equipment means
machinery and equipment and the materials and supplies necessary
to construct or install the machinery or equipment. To qualify
under this definition the capital equipment must be used by the
purchaser or lessee for manufacturing, fabricating, mining,
quarrying, or refining a product tangible personal property, for
electronically transmitting results retrieved by a customer of
an on-line computerized data retrieval system, or for the
generation of electricity or steam, to be sold at retail and
must be used for the establishment of a new or the physical
expansion of an existing manufacturing, fabricating, mining,
quarrying, or refining facility in the state. For purposes of
this subdivision, "mining" includes peat mining, and "on-line
computerized data retrieval system" refers to a system whose
cumulation of information is equally available and accessible to
all its customers.
(b) Capital equipment does not include the following:
(1) machinery or equipment purchased or leased to replace
machinery or equipment performing substantially the same
function in an existing facility,;
(2) repair or replacement parts, or including accessories,
whether purchased as spare parts, repair parts, or as upgrades
or modifications, and whether purchased before or after the
machinery or equipment is placed into service. Parts or
accessories are treated as capital equipment only to the extent
that they are a part of and are essential to the operation of
the machinery or equipment as initially purchased;
(3) machinery or equipment used to receive or store raw
materials;
(4) building materials, including materials used for
foundations that support machinery or equipment;
(5) machinery or equipment used for nonproduction purposes,
including, but not limited to, the following: machinery and
equipment used for plant security, fire prevention, first aid,
and hospital stations; machinery and equipment used in support
operations or for administrative purposes; machinery and
equipment used solely for pollution control, prevention, or
abatement; machinery and equipment used for environmental
control, except that when a controlled environment is essential
for the manufacture of a particular product, the machinery or
equipment that controls the environment can qualify as capital
equipment; and machinery and equipment used in plant cleaning,
disposal of scrap and waste, plant communications, lighting, or
safety;
(6) "farm machinery" as defined by section 297A.01,
subdivision 15, "special tooling" as defined by section 297A.01,
subdivision 17, and "aquaculture production equipment" as
defined by section 297A.01, subdivision 19; or
(7) any other item that is not essential to the integrated
process of manufacturing, fabricating, mining, quarrying, or
refining.
(c) For purposes of this subdivision:
(1) the requirement that the machinery or equipment "must
be used by the purchaser or lessee" means that the person who
purchases or leases the machinery or equipment must be the one
who uses it for the qualifying purpose. When a contractor buys
and installs machinery or equipment as part of an improvement to
real property, only the contractor is considered the purchaser;
(2) the requirement that the machinery and equipment must
be used "for manufacturing, fabricating, mining, quarrying, or
refining" means that the machinery or equipment must be
essential to the integrated process of manufacturing,
fabricating, mining, quarrying, or refining. Neither legal
requirements nor practical necessity determines whether or not
the equipment is essential to the integrated process;
(3) "facility" means a coordinated group of fixed assets,
which may include land, buildings, machinery, and equipment that
are essential to and used in an integrated manufacturing,
fabricating, refining, mining, or quarrying process;
(4) "establishment of a new facility" means the
construction of a facility, or the purchase by a new owner of a
facility that was previously closed and not operational for a
period of at least 12 consecutive months. Relocating operations
from an existing facility within Minnesota to another facility
within Minnesota does not constitute establishing a new
facility;
(5) "physical expansion of an existing facility" means
adding a new production line, adding new machinery or equipment
to an existing production line, new construction which will
become part of the existing facility and which is used for a
qualifying activity, or conversion of an area in an existing
facility from a nonqualifying activity to a qualifying activity;
and
(6) performing "substantially the same function" means that
the new machinery or equipment serves fundamentally or
essentially the same purpose as did the old equipment or that it
produces the same or similar end product, even though it may
increase speed, efficiency, or production capacity.
(d) Notwithstanding prior provisions of this subdivision,
machinery and equipment purchased or leased to replace machinery
and equipment used in the mining or production of taconite shall
qualify as capital equipment regardless of whether the facility
has been expanded.
Sec. 26. Minnesota Statutes 1992, section 297A.04, is
amended to read:
297A.04 [APPLICATIONS; MEMBER; VENDING MACHINES; FORM.]
Every person desiring to engage in the business of making
retail sales within Minnesota shall file with the commissioner
an application for a permit and if such person has more than one
place of business, an application for each place of business
must be filed. A vending machine operator who has more than one
vending machine location shall nevertheless be considered to
have only one place of business for purposes of this section.
An applicant who has no regular place of doing business and who
moves from place to place shall be considered to have only one
place of business and shall attach such permit to the
applicant's cart, stand, truck or other merchandising device.
The commissioner may require any person or class of persons
obligated to file a use tax return under section 289A.11,
subdivision 3, to file application for a permit. Every
application for a permit shall be made upon a form prescribed by
the commissioner and shall set forth the name under which the
applicant intends to transact business, the location of the
applicant's place or places of business, and such other
information as the commissioner may require. The application
shall be filed by the owner, if a natural person; by a member or
partner, if the owner be is an association or partnership; by a
person authorized to sign file the application, if the owner be
is a corporation.
Sec. 27. Minnesota Statutes 1992, section 297A.06, is
amended to read:
297A.06 [PERMIT.]
After compliance with sections 297A.04 and 297A.28, when
security is required, the commissioner shall issue grant to each
applicant a separate permit for each place of business within
Minnesota. A permit shall be is valid until canceled or revoked
but shall is not be assignable and shall be is valid only for
the person in whose name it is issued granted and for the
transaction of business at the place places designated therein.
It shall at all times be conspicuously displayed at the place
for which issued.
Sec. 28. Minnesota Statutes 1992, section 297A.07,
subdivision 1, is amended to read:
Subdivision 1. [HEARINGS.] If any person fails to comply
with this chapter or the rules adopted under this chapter,
without reasonable cause, the commissioner may schedule a
hearing requiring the person to show cause why the permit or
permits should not be revoked. The commissioner must give the
person 15 days' notice in writing, specifying the time and place
of the hearing and the reason for the proposed revocation. The
notice shall also advise the person of the person's right to
contest the revocation under this subdivision, the general
procedures for a contested case hearing under chapter 14, and
the notice requirement under subdivision 2. The notice may be
served personally or by mail in the manner prescribed for
service of an order of assessment.
Sec. 29. Minnesota Statutes 1992, section 297A.11, is
amended to read:
297A.11 [CONTENT AND FORM OF EXEMPTION CERTIFICATE.]
The exemption certificate shall be signed by and bear the
name and address of the purchaser, shall indicate the sales tax
account number of the permit if any issued to the purchaser and
shall indicate the general character of the property sold by the
purchaser in the regular course of business and shall identify
the property purchased. The certificate shall be substantially
in such form as the commissioner may prescribe.
Sec. 30. Minnesota Statutes 1992, section 297A.136, is
amended to read:
297A.136 [TAX ON 900 PAY-PER-CALL SERVICES.]
Subdivision 1. [TAX IMPOSED.] A tax of $.50 is imposed for
each call placed to a 900 service if the call for that service
originates from and is charged to a telephone located in this
state.
Subd. 2. [DEFINITIONS.] For the purposes of this
section, the following definitions will apply:
(a) "900 service" means pay-per-call 900 information
services provided through a telephone exchange, commonly
accessed by dialing 1-900, 1-960, 1-976, or other similar prefix
in which the calling party receives information from the 900
information provider, and the calling party is charged on a per
call or per time basis for the information. The term does not
include services provided through 1-800 service telephone
numbers, information provided free of charge, or directory
assistance service.
(b) "Calling party" means the person originating the call
to the information provider.
(c) "900 information provider" means the person being
called by the calling party, and who provides information
services to the calling party on a per call or per time basis.
(d) "Person" shall have the same meaning as provided in
section 297A.01, subdivision 2.
Subd. 3. [PAYMENT; ADMINISTRATION.] Liability for the tax
imposed by this section is on the person making the call calling
party. Liability for collection from the calling party is on
the person providing access to a dial tone contracting with the
900 information provider to interconnect the information
provider and the calling party, if such person bills the calling
party. In all other instances, the person billing the calling
party shall be liable for collecting the tax from the calling
party. The tax imposed in this section must be reported and
paid to the commissioner of revenue with the taxes imposed in
this chapter. It is subject to the same interest, penalty, and
other provisions provided for sales and use taxes under chapter
289A and this chapter. The commissioner has the same powers to
assess and collect the tax that are given the commissioner in
chapters 270 and 289A and this chapter to assess and collect
sales and use tax.
Subd. 4. [EXEMPTION.] Pay-per-call information services
provided through a 1-976 prefix are exempt from the tax imposed
under this section if the charge for the call is less than $1.
Sec. 31. Minnesota Statutes 1992, section 297A.14,
subdivision 1, is amended to read:
Subdivision 1. [IMPOSITION.] For the privilege of using,
storing, distributing, or consuming in Minnesota tangible
personal property or taxable services purchased for use,
storage, distribution, or consumption in this state, a use tax
is imposed on every person in this state at the rate of tax
imposed under section 297A.02 on the sales price of sales at
retail of the items, unless the tax imposed by section 297A.02
was paid on the sales price.
A use tax is imposed on every person who uses, stores,
distributes, or consumes tangible personal property in Minnesota
which has been manufactured, fabricated, or assembled by the
person from materials, either within or without this state, at
the rate of tax imposed under section 297A.02 on the sales price
of sales at retail of the materials contained in the tangible
personal property, unless the tax imposed by section 297A.02 was
paid on the sales price.
Sec. 32. Minnesota Statutes 1992, 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,
fever thermometers, 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, and other diagnostic agents used in the
treatment of diagnosing, monitoring, or treating diabetes.
Nonprescription analgesics consisting principally (determined by
the weight of all ingredients) of acetaminophen, acetylsalicylic
acid, ibuprofen, or a combination thereof are exempt.
Sec. 33. Minnesota Statutes 1992, section 297A.25,
subdivision 7, is amended to read:
Subd. 7. [PETROLEUM PRODUCTS.] The gross receipts from the
sale of and storage, use or consumption of the following
petroleum products are exempt:
(1) products upon which a tax has been imposed and paid
under the provisions of chapter 296, and no refund has been or
will be allowed because the buyer used the fuel for nonhighway
use,
(2) products which are used in the improvement of
agricultural land by constructing, maintaining, and repairing
drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures; or
(3) products purchased by a transit system receiving
financial assistance under section 174.24 or 473.384; or
(4) products used in a passenger snowmobile, as defined in
section 296.01, subdivision 27a, for off-highway business use as
part of the operations of a resort as provided under section
296.18, subdivision 1, clause (2).
Sec. 34. Minnesota Statutes 1992, 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 colleges,
state academies, the Minnesota center for arts education, and
school districts are exempt.
As used in this subdivision, "school districts" means
public school entities and districts of every kind and nature
organized under the laws of the state of Minnesota, including,
without limitation, school districts, intermediate school
districts, education districts, educational cooperative service
units, secondary vocational cooperative centers, special
education cooperatives, joint purchasing cooperatives,
telecommunication cooperatives, regional management information
centers, technical colleges, joint vocational technical
districts, and any instrumentality of a school district, as
defined in section 471.59.
Sales exempted by this subdivision include sales under
section 297A.01, subdivision 3, paragraph (f), but do not
include sales under section 297A.01, subdivision 3, paragraph
(j), clause (vii).
Sales to hospitals and nursing homes owned and operated by
political subdivisions of the state are exempt under this
subdivision.
The sales to and exclusively for the use of libraries, as
defined in section 134.001, of books, periodicals, audio-visual
materials and equipment, photocopiers for use by the public, and
all cataloging and circulation equipment, and cataloging and
circulation software for library use are exempt under this
subdivision. For purposes of this paragraph "libraries" means
libraries as defined in section 134.001, county law libraries
under chapter 134A, the state library under section 480.09, and
the legislative reference library.
Sales of supplies and equipment used in the operation of an
ambulance service owned and operated by a political subdivision
of the state are exempt under this subdivision provided that the
supplies and equipment are used in the course of providing
medical care; motor vehicle parts are not exempt under this
provision. Sales to a political subdivision of repair and
replacement parts for emergency rescue vehicles and fire trucks
and apparatus are exempt under this subdivision.
Sales to a political subdivision of machinery and
equipment, except for motor vehicles, used directly for mixed
municipal solid waste collection and disposal services at a
solid waste disposal facility as defined in section 115A.03,
subdivision 10, are exempt under this subdivision.
Sales to political subdivisions of chore and homemaking
services to be provided to elderly or disabled individuals are
exempt.
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.
The tax imposed on sales to political subdivisions of the
state under this section applies to all political subdivisions
other than those explicitly exempted under this subdivision,
notwithstanding section 115A.69, subdivision 6, 116A.25,
360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2,
469.127, 473.394, 473.448, 473.545, or 473.608 or any other law
to the contrary enacted before 1992.
Sales to other states or political subdivisions of other
states are exempt if the sale would be exempt from taxation if
it occurred in that state.
Sec. 35. Minnesota Statutes 1992, 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 who are either (1) age 55
or older, or (2) physically disabled, 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. For
purposes of this subdivision, charitable purpose includes the
maintenance of a cemetery owned by a religious organization.
Sales exempted by this subdivision include sales pursuant to
section 297A.01, subdivision 3, paragraphs (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. 36. Minnesota Statutes 1992, section 297A.25,
subdivision 34, is amended to read:
Subd. 34. [MOTOR VEHICLES.] The gross receipts from the
sale or use of any motor vehicle taxable under the provisions of
the motor vehicle excise tax laws of Minnesota shall be exempt
from taxation under this chapter. Notwithstanding subdivision
11, the exemption provided under this subdivision remains in
effect for motor vehicles purchased or leased by political
subdivisions of the state if the vehicles are not subject to
taxation under chapter 297B.
Sec. 37. Minnesota Statutes 1992, section 297A.25,
subdivision 41, is amended to read:
Subd. 41. [BULLET-PROOF VESTS.] The gross receipts from
the sale of bullet-resistant soft body armor that is flexible,
concealable, and custom-fitted to provide the wearer with
ballistic and trauma protection are exempt if purchased by a law
enforcement agency of the state or a political subdivision of
the state, or a licensed peace officer, as defined in section
626.84, subdivision 1. The bullet-resistant soft body armor
must meet or exceed the requirements of standard 0101.01 of the
National Institute of Law Enforcement and Criminal Justice in
effect on December 30, 1986, or meet or exceed the requirements
of the standard except wet armor conditioning.
Sec. 38. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 52. [PARTS AND ACCESSORIES USED TO MAKE A MOTOR
VEHICLE HANDICAPPED ACCESSIBLE.] The gross receipts from the
sale of parts and accessories that are used solely to modify a
motor vehicle to make it handicapped accessible are exempt.
Labor charges for modifying a motor vehicle to make it
handicapped accessible are included in this exemption.
Sec. 39. [297A.2531] [SATELLITE BROADCASTING FACILITY
MATERIALS; EXEMPTIONS.]
Notwithstanding the provisions of this chapter, there shall
be exempt from the tax imposed therein all materials and
supplies or equipment used or consumed in constructing, or
incorporated into the construction of, a new facility in
Minnesota for providing federal communications commission
licensed direct satellite broadcasting services using direct
broadcast satellites operating in the 12-ghz. band or fixed
satellite regional or national program services, as defined in
section 272.02, subdivision 1, clause (15), construction of
which was commenced after June 30, 1993, and all machinery,
equipment, tools, accessories, appliances, contrivances,
furniture, fixtures, and all technical equipment or tangible
personal property of any other nature or description necessary
to the construction and equipping of that facility in order to
provide those services.
Sec. 40. [297A.2545] [STEEL REPROCESSOR; EXEMPTION FOR
POLLUTION CONTROL EQUIPMENT.]
Notwithstanding the provisions of this chapter, the
purchase of pollution control equipment by a steel reprocessing
firm is exempt from the sales and use tax provided that the
equipment is necessary to meet state or federal emission
standards. For purposes of this section "pollution control
equipment" means any equipment used for the purpose of
eliminating, preventing, or reducing air, land, or water
pollution during or as a result of the manufacturing process.
"Steel reprocessing firm" means a firm whose primary business is
the recovery of steel from automobiles, appliances, and other
steel products and the rerefining of this recovered metal into
new steel products.
Sec. 41. Minnesota Statutes 1992, section 298.75,
subdivision 4, is amended to read:
Subd. 4. If any the county auditor has not received the
report by the 15th day after the last day of each calendar
quarter from the operator or importer fails to make the
report as required by subdivision 3 or files has received an
erroneous report, the county auditor shall determine estimate
the amount of tax due and notify the operator or importer by
registered mail of the amount of tax so determined estimated
within the next 14 days. An operator or importer may, within 30
days from the date of mailing the notice, file in the office of
the county auditor a written statement of objections to the
amount of taxes determined to be due. The statement of
objections shall be deemed to be a petition within the meaning
of chapter 278, and shall be governed by sections 278.02 to
278.13.
Sec. 42. Minnesota Statutes 1992, section 298.75,
subdivision 5, is amended to read:
Subd. 5. Failure to file the report and submit payment
shall result in a penalty of $5 for each of the first 30 days,
beginning on the 14th 15th day after the date when the county
auditor has sent notice to the operator or importer as provided
in subdivision 4, during which the report is overdue and no
statement of objection has been filed. For each subsequent day
during last day of each calendar quarter, for which the report
and payment is overdue due and no statement of objection has
been filed as provided in subdivision 4, and a penalty of $10
for each subsequent day shall be assessed against the operator
or importer who is required to file the report. The penalties
imposed by this subdivision shall be collected as part of the
tax and credited to the county revenue fund. If neither the
report nor a statement of objection has been filed after more
than 60 days have elapsed from the date when the notice was
sent, the operator or importer who is required to file the
report is guilty of a misdemeanor.
Sec. 43. [349.2115] [SPORTS BOOKMAKING TAX.]
Subdivision 1. [IMPOSITION OF TAX.] An excise tax of six
percent is imposed on the value of all bets received by,
recorded by, accepted by, forwarded by, or placed with a person
engaged in sports bookmaking.
Subd. 2. [BET DEFINED.] For purposes of this section, the
term "bet" has the meaning given it in section 609.75,
subdivision 2.
Subd. 3. [SPORTS BOOKMAKING DEFINED.] For purposes of this
section, the term "sports bookmaking" has the meaning given it
in section 609.75, subdivision 7.
Subd. 4. [AMOUNT OF BET.] In determining the value or
amount of any bet for purposes of this section, all charges
incident to the placing of the bet must be included.
Subd. 5. [TAX RETURNS.] A person engaged in sports
bookmaking shall file monthly tax returns with the commissioner
of revenue, in the form required by the commissioner, of all
bookmaking activity, and shall include information on all bets
recorded, accepted, forwarded, and placed. The returns must be
filed on or before the 20th day of the month following the month
in which the bets reported were recorded, accepted, forwarded,
or placed. The tax imposed by this section is due and payable
at the time when the returns are filed.
Subd. 6. [PERSONS LIABLE FOR TAX.] Each person who is
engaged in receiving, recording, forwarding, or accepting sports
bookmaking bets is liable for and shall pay the tax imposed
under this section.
Subd. 7. [JEOPARDY ASSESSMENT; JEOPARDY COLLECTION.] The
tax may be assessed by the commissioner of revenue. An
assessment made pursuant to this section shall be considered a
jeopardy assessment or jeopardy collection as provided in
section 270.70. The commissioner shall assess the tax based on
personal knowledge or information available to the
commissioner. The commissioner shall mail to the taxpayer at
the taxpayer's last known address, or serve in person, a written
notice of the amount of tax, demand its immediate payment, and,
if payment is not immediately made, collect the tax by any
method described in chapter 270, except that the commissioner
need not await the expiration of the times specified in chapter
270. The tax assessed by the commissioner is presumed to be
valid and correctly determined and assessed.
Subd. 8. [DISCLOSURE PROHIBITED.] (a) Notwithstanding any
law to the contrary, neither the commissioner nor a public
employee may reveal facts contained in a sports bookmaking tax
return filed with the commissioner of revenue as required by
this section, nor can any information contained in the report or
return be used against the tax obligor in any criminal
proceeding, unless independently obtained, except in connection
with a proceeding involving taxes due under this section, or as
provided in section 270.064.
(b) Any person violating this section is guilty of a gross
misdemeanor.
(c) This section does not prohibit the commissioner from
publishing statistics that do not disclose the identity of tax
obligors or the contents of particular returns or reports.
Sec. 44. [NOTIFICATION BY COUNTY AUDITOR.]
The county auditor shall notify each operator in the county
who filed a report in the previous calendar year under Minnesota
Statutes, section 298.75 of the changes made in sections 41 and
42 relating to the imposition of the penalty for late payment.
Sec. 45. [COOK COUNTY; SALES TAX.]
Subdivision 1. [IMPOSED.] Notwithstanding Minnesota
Statutes, section 477A.016, or any other contrary provision of
law, ordinance, or resolution, Cook county may, by resolution,
impose an additional sales tax of up to one percent on sales
transactions taxable pursuant to Minnesota Statutes, chapter
297A, that occur within the county.
Subd. 2. [USE OF REVENUES.] Revenues received from taxes
authorized by subdivision 1 shall be used by Cook county to pay
the cost of collecting the tax and to pay all or a portion of
the costs of expanding and improving the health care facility
located in the county and known as North Shore hospital.
Authorized costs include, but are not limited to, securing or
paying debt service on bonds or other obligations issued to
finance the expansion and improvement of North Shore hospital.
The total capital expenditures payable from bond proceeds,
excluding investment earnings on bond proceeds and tax revenues,
shall not exceed $4,000,000.
Subd. 3. [EXPIRATION OF TAXING AUTHORITY AND EXPENDITURE
LIMITATION.] The authority granted by subdivision 1 to Cook
county to impose a sales tax shall expire when the principal and
interest on any bonds or obligations issued to finance the
expansion and improvement of North Shore hospital have been
paid, or at an earlier time as the county shall, by resolution,
determine. Any funds remaining after completion of the
improvements and retirement or redemption of the bonds may be
placed in the general fund of the county.
Subd. 4. [BONDS.] Cook county may issue general obligation
bonds in an amount not to exceed $4,000,000 for the expansion
and improvement of North Shore hospital, without election under
Minnesota Statutes, chapter 475, on the question of issuance of
the bonds or a property tax to pay them. The debt represented
by bonds issued for the expansion and improvement of North Shore
hospital shall not be included in computing any debt limitations
applicable to Cook county, and the levy of taxes required by
Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds shall not be subject to any levy
limitation or be included in computing or applying any levy
limitation applicable to the county.
Subd. 5. [REFERENDUM.] If the governing body of Cook
county intends to impose the sales tax authorized by this
section, it shall conduct a referendum on the issue. The
question of imposing the tax must be submitted to the voters at
a special or general election. The tax may not be imposed
unless a majority of votes cast on the question of imposing the
tax are in the affirmative. The commissioner of revenue shall
prepare a suggested form of question to be presented at the
election. The referendum must be held at a special or general
election before December 1, 1993.
Subd. 6. [ENFORCEMENT; COLLECTION; ADMINISTRATION OF TAX.]
A sales tax imposed under this section shall be reported and
paid to the commissioner of revenue with the state sales taxes,
and be subject to the same penalties, interest, and enforcement
provisions. The proceeds of the tax, less refunds and a
proportionate share of the cost of collection, shall be remitted
at least quarterly to Cook county. The commissioner shall
deduct from the proceeds remitted an amount that equals the
indirect statewide cost as well as the direct and indirect
department costs necessary to administer, audit, and collect the
tax. By July 1, 1993, the commissioner of revenue shall provide
to the governing body of the county an estimate of these costs.
Subd. 7. [EFFECTIVE DATE.] This section is effective the
day after compliance by the governing body of Cook county with
Minnesota Statutes, section 645.021, subdivision 3.
Sec. 46. [CITY OF ST. PAUL; SALES TAX AUTHORIZED.]
Subdivision 1. [TAX MAY BE IMPOSED.] Notwithstanding
Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, the city of St.
Paul may, by resolution, impose an additional sales tax of up to
one-half of one percent on sales transactions taxable pursuant
to Minnesota Statutes, chapter 297A, that occur within the city.
Subd. 2. [USE OF REVENUES.] Revenues received from the tax
authorized by subdivision 1 may only be used by the city to pay
the cost of collecting the tax, and to pay for the following
projects or to secure or pay any principal, premium, or interest
on bonds issued in accordance with subdivision 3 for the
following projects.
(a) To pay all or a portion of the capital expenses of
construction, equipment and acquisition costs for the expansion
and remodeling of the St. Paul Civic Center complex.
(b) The remainder of the funds must be spent for capital
projects to further residential, cultural, commercial, and
economic development in both downtown St. Paul and St. Paul
neighborhoods.
By January 15 of each odd-numbered year, the mayor and the
city council must report to the legislature on the use of sales
tax revenues during the preceding two-year period.
Subd. 3. [BONDS.] The city may issue general obligation
bonds of the city to finance all or a portion of the cost for
projects authorized in subdivision 2, paragraph (a). The debt
represented by the bonds shall not be included in computing any
debt limitations applicable to the city. The bonds may be paid
from or secured by any funds available to the city, including
the tax authorized under subdivision 1. The bonds may be issued
in one or more series and sold without election on the question
of issuance of the bonds or a property tax to pay them. Except
as otherwise provided in this section, the bonds must be issued,
sold, and secured in the manner provided in Minnesota Statutes,
chapter 475. The aggregate principal amount of bonds issued
under this subdivision may not exceed $65 million.
Subd. 4. [ENFORCEMENT; COLLECTION.] A sales tax imposed
under subdivision 1 may be reported and paid to the commissioner
of revenue with the state sales tax, and be subject to the same
penalties, interest, and enforcement provisions imposed under
Minnesota Statutes, chapters 289A and 297A. If the commissioner
of revenue enters into appropriate agreements with the city to
provide for collection of these taxes by the state on behalf of
the city, the commissioner shall charge the city a reasonable
fee for its collection from the proceeds of any taxes to ensure
that no state funds are expended for the collection of these
taxes. The proceeds of the tax, less the cost of collection,
shall be remitted monthly to the city and the city shall deposit
such sums into a dedicated fund. By July 1, 1993, the
commissioner of revenue shall provide the city an estimate of
the cost of collection.
Subd. 5. [EXPIRATION OF TAXING AUTHORITY.] The authority
granted by subdivision 1 to the city to impose a sales tax shall
expire when the principal and interest on any bonds or other
obligations issued to finance projects authorized in subdivision
2, paragraph (a) have been paid or at an earlier time as the
city shall, by ordinance, determine. Any funds remaining after
completion of projects approved under subdivision 2, paragraph
(a) and retirement or redemption of any bonds or other
obligations may be placed in the general fund of the city.
Subd. 6. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
effective the day following final enactment, and after
compliance by the governing body of the city of St. Paul with
Minnesota Statutes, section 645.021, subdivision 3, with respect
to that section. If the St. Paul city council intends to
exercise the authority provided by this section, it shall pass a
resolution stating the fact before July 1, 1993.
Sec. 47. [CITY OF GARRISON; SALES TAX.]
Subdivision 1. [SALES TAX AUTHORIZED.] Notwithstanding
Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, the city of
Garrison may, by ordinance, impose an additional sales tax of up
to one percent on sales transactions taxable pursuant to
Minnesota Statutes, chapter 297A, that occur within the city.
Subd. 2. [USE OF REVENUES.] Revenues received from taxes
authorized under subdivision 1 must be dedicated by the city to
pay the cost of collecting the tax and to pay all or part of the
expenses of the construction of a sewer system in the city,
including payment of principal and interest on loans received by
the city to construct the sewer system.
Subd. 3. [ENFORCEMENT; COLLECTION; AND ADMINISTRATION OF
TAXES.] (a) The city may provide for collection and enforcement
of the tax by ordinance or the city may enter into an agreement
with the commissioner of revenue, providing for collection of
the tax.
(b) If the city enters an agreement with the commissioner
of revenue for collection of the tax, the sales tax imposed
under this section must be reported and paid to the commissioner
of revenue with the state sales taxes, and be subject to the
same penalties, interest, and enforcement provisions. The
proceeds of the tax, less refunds and a proportionate share of
the cost of collection, shall be remitted at least quarterly to
the city. The commissioner shall deduct from the proceeds
remitted an amount that equals the indirect statewide cost as
well as the direct and indirect department costs necessary to
administer, audit, and collect the tax.
Subd. 4. [EXPIRATION OF TAXING AUTHORITY.] The authority
granted by this section to the city of Garrison to impose a
sales tax expires when the principal and interest on any bonds
or obligations issued to finance the construction of the sewer
system have been paid, or at an earlier time as the city shall,
by resolution, determine. Any funds remaining after completion
of the improvements and retirement or redemption of the bonds
may be placed in the general fund of the city.
Subd. 5. [REFERENDUM.] The city may impose the tax under
this section only after approval by the voters in a referendum
held at a special or general election in the city.
Subd. 6. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
effective the day after final enactment, upon compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the city
of Garrison.
Sec. 48. [CHARITABLE GOLF TOURNAMENTS.]
The gross receipts from the sale or use of tickets or
admissions to a golf tournament held in Minnesota are exempt if
the beneficiary of the tournament's net proceeds qualifies as a
tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code.
Sec. 49. [ADVISORY COUNCIL; SALES TAX ON CAPITAL
EQUIPMENT.]
Subdivision 1. [CREATION; MEMBERSHIP.] (a) A state
advisory council is established to study the sales tax exemption
for capital equipment under Minnesota Statutes 1992, sections
297A.01, subdivision 16, and 297A.25, subdivision 42, and to
make recommendations to the 1994 legislature. The study shall
be completed and findings reported to the legislature by
February 1, 1994.
(b) The advisory council consists of 15 members who serve
at the pleasure of the appointing authority as follows:
(1) six legislators; three members of the senate, including
one member of the minority party, appointed by the subcommittee
on committees of the committee on rules and administration and
three members of the house of representatives, including one
member of the minority party, appointed by the speaker;
(2) the commissioner of revenue or the commissioner's
designee; and
(3) eight members of the public; two appointed by the
subcommittee on committees of the committee on rules and
administration of the senate, two appointed by the speaker of
the house, and four appointed by the governor.
Subd. 2. [SCOPE OF THE STUDY.] (a) In preparing the study,
the advisory council shall examine, at least, the following:
(1) an overview of the purpose, intent, and application of
the provisions of the present exemption, including the
department of revenue's experience in interpreting and
administering the provisions and the impact of the exemption on
state tax collections;
(2) appropriate tax policy goals for the exemption of
capital equipment from the sales tax;
(3) the effect of the exemption in encouraging new
investment, increases in economic activity, and creation of new
jobs in Minnesota or other appropriate economic development
goals;
(4) analyses of alternative versions of the exemption,
either expanding or narrowing it and specifically including the
expansions contained in the administrative law judge's report,
that will further the tax policy and economic development goals
developed under clauses (2) and (3). In analyzing alternatives,
the advisory council must consider alternatives that expand the
exemption and offset the reduction in state and local sales tax
revenues by expanding the sales tax base to include final
consumption items that are now exempt from taxation.
(b) The advisory council's report to the legislature must
include recommendations for modifying the exemption in light of
the tax policy and economic development goals. The
recommendations must not provide for increasing or decreasing
state revenues relative to the revenue department's estimates of
the effect of applying the department's interpretations of
present law. If the report recommends expanding the exemption,
it must include recommendations to expand the tax base to offset
the resulting loss of state and local revenues.
Subd. 3. [STAFF.] The department of revenue and
legislative staff shall provide administrative and staff
assistance when requested by the advisory council.
Subd. 4. [COOPERATION BY OTHER AGENCIES.] The
commissioners of the department of trade and economic
development, the department of labor and industry, the
department of jobs and training, and the pollution control
agency shall, upon request by the advisory council, provide data
or other information that is collected or possessed by their
agencies and that is necessary or useful in conducting the study
and preparing the report required by this section.
Sec. 50. [REPEALER.]
Minnesota Statutes 1992, section 115B.24, subdivision 10,
is repealed.
Sec. 51. [EFFECTIVE DATE.]
Sections 1 to 12, 22, 31, 32, the part of section 34
exempting certain chore and homemaking services, 44 and 49 are
effective the day following final enactment.
Section 13 is effective for taxes due on or after July 1,
1993.
Section 14 is effective for fees due on or after July 1,
1993.
Section 15 is effective for refund claims submitted on or
after July 1, 1993.
Sections 16, 26 to 29, 36 to 39, and 43 are effective July
1, 1993.
Sections 17 and 20 are effective July 1, 1993, for
deliveries of rerefined waste oil on and after that date.
Sections 23 and 24 are effective the day following final
enactment and apply to all open tax years.
Section 25 is effective for claims for refund filed after
May 5, 1993, except that the extension of the exemption for
capital equipment used to produce an on-line computerized data
retrieval system and to replacement equipment used in the
production of taconite is effective for sales after June 30,
1993.
Section 30 is effective for sales of 900 information
services made after June 30, 1993.
Except as otherwise provided, sections 34 and 35 are
effective for sales made after June 30, 1993. The part of
section 34 exempting sales of machinery and equipment for solid
waste disposal and collection is effective for sales made after
May 31, 1992.
Section 40 is effective for pollution equipment installed
after June 30, 1993.
Sections 41 and 42 are effective for reports due after July
1, 1993.
Section 48 is effective for sales or uses of tickets or
admissions occurring after December 31, 1992, and before July 1,
1993.
ARTICLE 10
COLLECTIONS AND COMPLIANCE
Section 1. Minnesota Statutes 1992, section 60A.15,
subdivision 2a, is amended to read:
Subd. 2a. [PROCEDURE FOR FILING AND ADJUSTMENT OF
STATEMENTS AND TAXES.] (a) Every insurer required to pay a
premium tax in this state shall make and file a statement of
estimated premium taxes for the period covered by the
installment tax payment. Such the installment tax payment.
Such statement shall be in the form prescribed by the
commissioner of revenue.
(b) On or before March 1, annually every insurer subject to
taxation under this section shall make an annual return for the
preceding calendar year setting forth such information as the
commissioner of revenue may reasonably require on forms
prescribed by the commissioner.
(c) On March 1, the insurer shall pay any additional amount
due for the preceding calendar year; if there has been an
overpayment, such overpayment may be credited without interest
on the estimated tax due April 15.
(d) If unpaid by this date, penalties and interest as
provided in section 290.53 289A.60, subdivision 1, as it relates
to withholding and sales or use taxes, shall be imposed.
Sec. 2. Minnesota Statutes 1992, section 60A.15,
subdivision 9a, is amended to read:
Subd. 9a. [FAILURE TO FILE; PENALTIES AND INTEREST.] In
case of any failure to make and file a return as required by
this chapter within the time prescribed by law or prescribed by
the commissioner of revenue in pursuance of law there shall be
added to the tax penalties and interest as provided in section
289A.60, subdivision 2, as it relates to withholding and sales
or use taxes.
Sec. 3. Minnesota Statutes 1992, section 60A.15, is
amended by adding a subdivision to read:
Subd. 9e. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS
OR PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 4. Minnesota Statutes 1992, section 60A.198,
subdivision 3, is amended to read:
Subd. 3. [PROCEDURE FOR OBTAINING LICENSE.] A person
licensed as an agent in this state pursuant to other law may
obtain a surplus lines license by doing the following:
(a) filing an application in the form and with the
information the commissioner may reasonably require to determine
the ability of the applicant to act in accordance with sections
60A.195 to 60A.209;
(b) maintaining an agent's license in this state;
(c) delivering to the commissioner a financial guarantee
bond from a surety acceptable to the commissioner for the
greater of the following:
(1) $5,000; or
(2) the largest semiannual surplus lines premium tax
liability incurred by the applicant in the immediately preceding
five years; and
(d) agreeing to file with the commissioner of revenue no
later than February 15 and August 15 annually, a sworn statement
of the charges for insurance procured or placed and the amounts
returned on the insurance canceled under the license for the
preceding six-month period ending December 31 and June 30
respectively, and at the time of the filing of this statement,
paying the commissioner a tax on premiums equal to three percent
of the total written premiums less cancellations; and
(e) annually paying a fee as prescribed by section 60A.14,
subdivision 1, paragraph (c), clause (10); and
(f) paying penalties imposed under section 289A.60,
subdivision 1, as it relates to withholding and sales or use
taxes, if the tax due under clause (d) is not timely paid.
Sec. 5. Minnesota Statutes 1992, section 60A.199,
subdivision 4, is amended to read:
Subd. 4. [FAILURE TO FILE; PENALTIES AND INTEREST.] In
case of any failure to make and file a return as required by
this chapter within the time prescribed by law or prescribed by
the commissioner in pursuance of law there shall be added to the
tax penalties and interest as provided in section 289A.60,
subdivision 2, as it relates to withholding and sales or use
taxes.
Sec. 6. Minnesota Statutes 1992, section 60A.199, is
amended by adding a subdivision to read:
Subd. 6a. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS
OR PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 7. Minnesota Statutes 1992, section 270.06, is
amended to read:
270.06 [POWERS AND DUTIES.]
The commissioner of revenue shall:
(1) have and exercise general supervision over the
administration of the assessment and taxation laws of the state,
over assessors, town, county, and city boards of review and
equalization, and all other assessing officers in the
performance of their duties, to the end that all assessments of
property be made relatively just and equal in compliance with
the laws of the state;
(2) confer with, advise, and give the necessary
instructions and directions to local assessors and local boards
of review throughout the state as to their duties under the laws
of the state;
(3) direct proceedings, actions, and prosecutions to be
instituted to enforce the laws relating to the liability and
punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the
provisions of the laws of this state governing returns of
assessment and taxation of property, and cause complaints to be
made against local assessors, members of boards of equalization,
members of boards of review, or any other assessing or taxing
officer, to the proper authority, for their removal from office
for misconduct or negligence of duty;
(4) require county attorneys to assist in the commencement
of prosecutions in actions or proceedings for removal,
forfeiture and punishment for violation of the laws of this
state in respect to the assessment and taxation of property in
their respective districts or counties;
(5) require town, city, county, and other public officers
to report information as to the assessment of property,
collection of taxes received from licenses and other sources,
and such other information as may be needful in the work of the
department of revenue, in such form and upon such blanks as the
commissioner may prescribe;
(6) require individuals, copartnerships, companies,
associations, and corporations to furnish information concerning
their capital, funded or other debt, current assets and
liabilities, earnings, operating expenses, taxes, as well as all
other statements now required by law for taxation purposes;
(7) summon subpoena witnesses, at a time and place
reasonable under the circumstances, to appear and give
testimony, and to produce books, records, papers and
documents for inspection and copying relating to any tax matter
which the commissioner may have authority to investigate or
determine. Provided, that any summons;
(8) issue a subpoena which does not identify the person or
persons with respect to whose tax liability the summons subpoena
is issued may be served, but only if (a) the summons subpoena
relates to the investigation of a particular person or
ascertainable group or class of persons, (b) there is a
reasonable basis for believing that such person or group or
class of persons may fail or may have failed to comply with
any tax law administered by the commissioner, (c) the
information sought to be obtained from the examination of the
records (and the identity of the person or persons with respect
to whose liability the summons subpoena is issued) is not
readily available from other sources, (d) the summons subpoena
is clear and specific as to the information sought to be
obtained, and (e) the information sought to be obtained is
limited solely to the scope of the investigation. Provided
further that the party served with a summons subpoena which does
not identify the person or persons with respect to whose tax
liability the summons subpoena is issued shall have the right,
within 20 days after service of the summons subpoena, to
petition the district court for the judicial district in which
lies the county in which that party is located for a
determination as to whether the commissioner of revenue has
complied with all the requirements in (a) to (e), and thus,
whether the summons subpoena is enforceable. If no such
petition is made by the party served within the time prescribed,
the summons subpoena shall have the force and effect of a court
order;
(8) (9) cause the deposition of witnesses residing within
or without the state, or absent therefrom, to be taken, upon
notice to the interested party, if any, in like manner that
depositions of witnesses are taken in civil actions in the
district court, in any matter which the commissioner may have
authority to investigate or determine;
(9) (10) investigate the tax laws of other states and
countries and to formulate and submit to the legislature such
legislation as the commissioner may deem expedient to prevent
evasions of assessment and taxing laws, and secure just and
equal taxation and improvement in the system of assessment and
taxation in this state;
(10) (11) consult and confer with the governor upon the
subject of taxation, the administration of the laws in regard
thereto, and the progress of the work of the department of
revenue, and furnish the governor, from time to time, such
assistance and information as the governor may require relating
to tax matters;
(11) (12) transmit to the governor, on or before the third
Monday in December of each even-numbered year, and to each
member of the legislature, on or before November 15 of each
even-numbered year, the report of the department of revenue for
the preceding years, showing all the taxable property in the
state and the value of the same, in tabulated form;
(12) (13) inquire into the methods of assessment and
taxation and ascertain whether the assessors faithfully
discharge their duties, particularly as to their compliance with
the laws requiring the assessment of all property not exempt
from taxation;
(13) (14) administer and enforce the assessment and
collection of state taxes and, from time to time, make, publish,
and distribute rules for the administration and enforcement of
state tax laws. The rules have the force of law;
(14) (15) prepare blank forms for the returns required by
state tax law and distribute them throughout the state,
furnishing them subject to charge on application;
(15) (16) prescribe rules governing the qualification and
practice of agents, attorneys, or other persons representing
taxpayers before the commissioner. The rules may require that
those persons, agents, and attorneys show that they are of good
character and in good repute, have the necessary qualifications
to give taxpayers valuable services, and are otherwise competent
to advise and assist taxpayers in the presentation of their case
before being recognized as representatives of taxpayers. After
due notice and opportunity for hearing, the commissioner may
suspend and disbar from further practice before the commissioner
any person, agent, or attorney who is shown to be incompetent or
disreputable, who refuses to comply with the rules, or who with
intent to defraud, willfully or knowingly deceives, misleads, or
threatens a taxpayer or prospective taxpayer, by words,
circular, letter, or by advertisement. This clause does not
curtail the rights of individuals to appear in their own behalf
or partners or corporations' officers to appear in behalf of
their respective partnerships or corporations;
(16) (17) appoint agents as the commissioner considers
necessary to make examinations and determinations. The agents
have the rights and powers conferred on the commissioner
to subpoena, examine, and copy books, records, papers, or
memoranda, subpoena witnesses, administer oaths and
affirmations, and take testimony. In addition to administrative
subpoenas of the commissioner and the agents, upon demand of the
commissioner or an agent, the clerk or court administrator of
any district court shall issue a subpoena for the attendance of
a witness or the production of books, papers, records, or
memoranda before the agent for inspection and copying. The
commissioner may also issue subpoenas. Disobedience of
subpoenas issued under this chapter a court administrator's
subpoena shall be punished by the district court of the district
in which the subpoena is issued, or in the case of a subpoena
issued by the commissioner or an agent, by the district court of
the district in which the party served with the subpoena is
located, in the same manner as contempt of the district court;
(17) (18) appoint and employ additional help, purchase
supplies or materials, or incur other expenditures in the
enforcement of state tax laws as considered necessary. The
salaries of all agents and employees provided for in this
chapter shall be fixed by the appointing authority, subject to
the approval of the commissioner of administration;
(18) (19) execute and administer any agreement with the
secretary of the treasury of the United States or a
representative of another state regarding the exchange of
information and administration of the tax laws;
(19) (20) administer and enforce the provisions of sections
325D.30 to 325D.42, the Minnesota unfair cigarette sales act;
(20) (21) authorize the use of unmarked motor vehicles to
conduct seizures or criminal investigations pursuant to the
commissioner's authority; and
(21) (22) exercise other powers and perform other duties
required of or imposed upon the commissioner of revenue by law.
Sec. 8. Minnesota Statutes 1992, section 270.70,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY OF COMMISSIONER.] If any tax
payable to the commissioner of revenue or to the department of
revenue is not paid when due, such tax may be collected by the
commissioner of revenue within five years after the date of
assessment of the tax, or if a lien has been filed, during the
period the lien is enforceable, or if the tax judgment has been
filed, within the statutory period of enforcement of a valid tax
judgment, by a levy upon all property and rights to property,
including any property in the possession of law enforcement
officials, of the person liable for the payment or collection of
such tax (except that which is exempt from execution pursuant to
section 550.37 and amounts received under United States Code,
title 29, chapter 19, as amended through December 31, 1989) or
property on which there is a lien provided in section 270.69.
For this purpose, the term "tax" shall include any penalty,
interest, and costs properly payable. The term "levy" includes
the power of distraint and seizure by any means; provided, no
entry can be made upon the business premises or residence of a
taxpayer in order to seize property without first obtaining a
writ of entry listing the property to be seized and signed by a
judge of the district court of the district in which the
business premises or residence is located.
Sec. 9. [270.7001] [CONTINUOUS LEVY.]
Subdivision 1. [AUTHORITY.] The commissioner may, within
five years after the date of assessment of the tax, or if a lien
has been filed under section 270.69, within the statutory period
for enforcement of the lien, give notice to a person, officer,
or political subdivision or agency of the state to withhold the
amount of any tax, interest, or penalties due from a taxpayer,
or the amount due from an employer or person who has failed to
withhold and transmit amounts due from any payments to the
taxpayer, employer, or person. The amounts withheld shall be
transmitted to the commissioner at the times the commissioner
designates.
Subd. 2. [LEVY CONTINUOUS.] The levy made under
subdivision 1 is continuous from the date the notice is received
until (1) the amount due stated on the notice has been withheld
or (2) the notice has been released by the commissioner under
section 270.709, whichever occurs first.
Subd. 3. [AMOUNT TO BE WITHHELD.] The amount required to
be withheld under this section is the least of:
(1) the amount stated on the notice;
(2) if the taxpayer, employer, or person is not a natural
person, 100 percent of the payment;
(3) if the taxpayer, employer, or person is an individual,
25 percent of the payment.
Subd. 4. [PAYMENTS COVERED.] For purposes of this section,
the term payments does not include wages as defined in section
290.92 or funds in a deposit account as defined in section
336.9-105. The term payments does include the following:
(1) payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, and
mineral or other natural resource rights;
(2) payments or credits under written or oral contracts for
services or sales whether denominated as wages, salary,
commission, bonus, or otherwise, if the payments are not covered
by section 290.92, subdivision 23; and
(3) any other periodic payments or credits resulting from
an enforceable obligation to the taxpayer, employer, or person.
Subd. 5. [DETERMINATION OF STATUS; EFFECT.] A
determination of a person's status as an independent contractor
under this section does not affect the determination of the
person's status for the purposes of any other law or rule.
Sec. 10. [270.78] [PENALTY FOR FAILURE TO MAKE PAYMENT BY
ELECTRONIC FUNDS TRANSFER.]
In addition to other applicable penalties imposed by law,
after notification from the commissioner of revenue to the
taxpayer that payments for a tax administered by the
commissioner are required to be made by means of electronic
funds transfer, and the payments are remitted by some other
means, there is a penalty in the amount of five percent of each
payment that should have been remitted electronically. The
penalty can be abated under the abatement procedures prescribed
in section 270.07, subdivision 6, if the failure to remit the
payment electronically is due to reasonable cause.
Sec. 11. Minnesota Statutes 1992, section 276.02, is
amended to read:
276.02 [TREASURER TO BE COLLECTOR.]
The county treasurer shall collect all taxes extended on
the tax lists of the county and the fines, forfeitures, or
penalties received by any person or officer for the use of the
county. The treasurer shall collect the taxes according to law
and credit them to the proper funds. This section does not
apply to fines and penalties accruing to municipal corporations
for the violation of their ordinances that are recoverable
before a city justice. The county board may by resolution
authorize the treasurer to impose a charge for any dishonored
checks.
The county board may, by resolution, authorize the
treasurer and/or other designees to accept payments of real
property taxes by credit card provided that a fee is charged for
its use. The fee charged must be commensurate with the costs
assessed by the card issuer. If a credit card transaction under
this section is subsequently voided or otherwise reversed, the
lien of real property taxes under section 272.31 is revived and
attaches in the manner and time provided in that section as
though the credit card transaction had never occurred, and the
voided or reversed credit card transaction shall not impair the
right of a lienholder under section 272.31 to enforce the lien
in its favor.
Sec. 12. Minnesota Statutes 1992, section 279.37,
subdivision 1a, is amended to read:
Subd. 1a. The delinquent taxes upon a parcel of property
which was classified class 4c pursuant to section 273.13,
subdivision 9, or for taxes assessed in 1986 and thereafter,
classified class 3a, for the previous year's assessment and had
a total market value of less than $100,000 $200,000 for that
same assessment shall be eligible to be composed into a
confession of judgment. Property qualifying under this
subdivision shall be subject to the same provisions as provided
in this section except as herein provided.
(a) The down payment shall include all special assessments
due in the current tax year, all delinquent special assessments,
and 20 percent of the ad valorem tax, penalties, and interest
accrued against the parcel. The balance remaining shall be
payable in four equal annual installments; and
(b) The amounts entered in judgment shall bear interest at
the rate provided in section 279.03, subdivision 1a, commencing
with the date the judgment is entered. The interest rate is
subject to change each year on the unpaid balance in the manner
provided in section 279.03, subdivision 1a.
Sec. 13. Minnesota Statutes 1992, section 289A.18,
subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use
tax returns must be filed on or before the 20th day of the month
following the close of the preceding reporting period, except
that annual use tax returns provided for under section 289A.11,
subdivision 1, must be filed by April 15 following the close of
the calendar year. In addition, on or before June 20 of a year,
a retailer who has a May liability of $1,500 or more must file a
return with the commissioner for one-half of the estimated June
liability, in addition to filing a return for the May
liability. On or before August 20 of a year, the retailer must
file a return showing the actual June liability.
(b) Returns filed by retailers required to remit
liabilities by means of funds transfer under section 289A.20,
subdivision 4, paragraph (d), are due on or before the 25th day
of the month following the close of the preceding reporting
period. Returns filed under the second sentence of paragraph
(a) by a retailer required to remit by means of funds transfer
are due on June 25 The return for the May liability and 75
percent of the estimated June liability is due on the date
payment of the estimated June liability is due, and on or before
August 25 of a year, the retailer must file a return showing the
actual June liability.
(c) If a retailer has an average sales and use tax
liability, including local sales and use taxes administered by
the commissioner, equal to or less than $500 per month in any
quarter of a calendar year, and has substantially complied with
the tax laws during the preceding four calendar quarters, the
retailer may request authorization to file and pay the taxes
quarterly in subsequent calendar quarters. The authorization
remains in effect during the period in which the retailer's
quarterly returns reflect sales and use tax liabilities of less
than $1,500 and there is continued compliance with state tax
laws.
(d) If a retailer has an average sales and use tax
liability, including local sales and use taxes administered by
the commissioner, equal to or less than $100 per month during a
calendar year, and has substantially complied with the tax laws
during that period, the retailer may request authorization to
file and pay the taxes annually in subsequent years. The
authorization remains in effect during the period in which the
retailer's annual returns reflect sales and use tax liabilities
of less than $1,200 and there is continued compliance with state
tax laws.
(e) The commissioner may also grant quarterly or annual
filing and payment authorizations to retailers if the
commissioner concludes that the retailers' future tax
liabilities will be less than the monthly totals identified in
paragraphs (c) and (d). An authorization granted under this
paragraph is subject to the same conditions as an authorization
granted under paragraphs (c) and (d).
Sec. 14. Minnesota Statutes 1992, section 289A.20,
subdivision 2, is amended to read:
Subd. 2. [WITHHOLDING FROM WAGES, ENTERTAINER WITHHOLDING,
WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, AND
WITHHOLDING BY PARTNERSHIPS AND SMALL BUSINESS CORPORATIONS.]
(a) A tax required to be deducted and withheld during the
quarterly period must be paid on or before the last day of the
month following the close of the quarterly period, unless an
earlier time for payment is provided. A tax required to be
deducted and withheld from compensation of an entertainer and
from a payment to an out-of-state contractor must be paid on or
before the date the return for such tax must be filed under
section 289A.18, subdivision 2. Taxes required to be deducted
and withheld by partnerships and S corporations must be paid on
or before the date the return must be filed under section
289A.18, subdivision 2.
(b)(1) Unless clause (2) applies, if during any calendar
month, other than the last month of the calendar quarter, the
aggregate amount of the tax withheld during that quarter under
section 290.92, subdivision 2a or 3, or 290.923, subdivision 2,
exceeds $500, the employer shall deposit the aggregate amount
with the commissioner within 15 days after the close of the
calendar month.
(2) If at the close of any eighth-monthly period the
aggregate amount of undeposited taxes is $3,000 or more, the
employer, or person withholding tax under section 290.92,
subdivision 2a or 3, or 290.923, subdivision 2, shall deposit
the undeposited taxes with the commissioner within three banking
days after the close of the eighth-monthly period. For purposes
of this clause, the term "eighth-monthly period" means the first
three days of a calendar month, the fourth day through the
seventh day of a calendar month, the eighth day through the 11th
day of a calendar month, the 12th day through the 15th day of a
calendar month, the 16th day through the 19th day of a calendar
month, the 20th day through the 22nd day of a calendar month,
the 23rd day through the 25th day of a calendar month, or the
part of a calendar month following the 25th day of the month.
(c) The commissioner may prescribe by rule other return
periods or deposit requirements. In prescribing the reporting
period, the commissioner may classify payors according to the
amount of their tax liability and may adopt an appropriate
reporting period for the class that the commissioner judges to
be consistent with efficient tax collection. In no event will
the duration of the reporting period be more than one year.
(d) If less than the correct amount of tax is paid to the
commissioner, proper adjustments with respect to both the tax
and the amount to be deducted must be made, without interest, in
the manner and at the times the commissioner prescribes. If the
underpayment cannot be adjusted, the amount of the underpayment
will be assessed and collected in the manner and at the times
the commissioner prescribes.
(e) If the aggregate amount of the tax withheld during a
fiscal year ending June 30 under section 290.92, subdivision 2a
or 3, is equal to or exceeds $240,000 $120,000, the employer
must remit each required deposit in the subsequent calendar year
by means of a funds transfer as defined in section 336.4A-104,
paragraph (a). The funds transfer payment date, as defined in
section 336.4A-401, must be on or before the date the deposit is
due. If the date the deposit is due is not a funds transfer
business day, as defined in section 336.4A-105, paragraph (a),
clause (4), the payment date must be on or before the funds
transfer business day next following the date the deposit is due.
Sec. 15. Minnesota Statutes 1992, section 289A.20,
subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by
chapter 297A are due and payable to the commissioner monthly on
or before the 20th day of the month following the month in which
the taxable event occurred or following another reporting period
as the commissioner prescribes, except that use taxes due on an
annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of
the calendar year.
(b) A vendor having a liability of $1,500 $120,000 or more
in May of during a fiscal year ending June 30 must remit the
June liability for the next year in the following manner:
(1) On or Two business days before June 20 30 of the year,
the vendor must remit the actual May liability and one-half 75
percent of the estimated June liability to the commissioner.
(2) On or before August 20 14 of the year, the vendor must
pay any additional amount of tax not remitted in June.
(3) If the vendor is required to remit by means of funds
transfer as provided in paragraph (d), the vendor may remit the
May liability as provided for in paragraph (e), but must remit
one-half of the estimated June liability on or before June 14.
The remaining amount of the June liability is due on August 14.
(c) When a retailer located outside of a city that imposes
a local sales and use tax collects use tax to be remitted to
that city, the retailer is not required to remit the tax until
the amount collected reaches $10.
(d) A vendor having a liability of $240,000 $120,000 or
more during a fiscal year ending June 30 must remit all
liabilities in the subsequent calendar year by means of a funds
transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401,
must be on or before the date the tax is due the 14th day of the
month following the month in which the taxable event occurred,
except for the one-half 75 percent of the estimated June
liability, which is due with the May liability on two business
days before June 14 30. The remaining amount of the June
liability is due on August 14. If the date the tax is due is
not a funds transfer business day, as defined in section
336.4A-105, paragraph (a), clause (4), the payment date must be
on or before the funds transfer business day next following the
date the tax is due.
(e) If the vendor required to remit by electronic funds
transfer as provided in paragraph (d) is unable due to
reasonable cause to determine the actual sales and use tax due
on or before the due date for payment, the vendor may remit an
estimate of the tax owed using one of the following options:
(1) 100 percent of the tax reported on the previous month's
sales and use tax return;
(2) 100 percent of the tax reported on the sales and use
tax return for the same month in the previous calendar year; or
(3) 95 percent of the actual tax due.
Any additional amount of tax that is not remitted on or
before the due date for payment, must be remitted with the
return. A vendor must notify the commissioner of the option
that will be used to estimate the tax due, and must obtain
approval from the commissioner to switch to another option. If
a vendor fails to remit the actual liability or does not remit
using one of the estimate options by the due date for payment,
the vendor must remit actual liability as provided in paragraph
(d) in all subsequent periods. This paragraph does not apply to
the June sales and use liability.
Sec. 16. Minnesota Statutes 1992, section 289A.36,
subdivision 3, is amended to read:
Subd. 3. [POWER TO COMPEL TESTIMONY.] In the
administration of state tax law, the commissioner 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 for
inspection and copying;
(2) examine under oath or affirmation any person regarding
the business of any taxpayer concerning any relevant matter
incident to the administration of state tax law. The fees of
witnesses required by the commissioner 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; and
(3) in addition to other remedies that may be 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
have jurisdiction over the action and disobedience of an
injunction issued under this clause will be punished as a
contempt of district court.
Sec. 17. Minnesota Statutes 1992, section 289A.36,
subdivision 7, is amended to read:
Subd. 7. [APPLICATION TO COURT FOR ENFORCEMENT OF
SUBPOENA.] The commissioner 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 an order compelling the appearance of
the subpoenaed witness or the production of the subpoenaed
records. If the subpoenaed party fails to comply with the order
of the court, the party may be punished by the court as for
contempt. Disobedience of subpoenas issued under this section
shall be punished by the district court of the district in which
the party served with the subpoena is located, in the same
manner as contempt of the district court.
Sec. 18. Minnesota Statutes 1992, section 289A.40, is
amended by adding a subdivision to read:
Subd. 1a. [INDIVIDUAL INCOME TAXES; REASONABLE CAUSE.] If
the taxpayer establishes reasonable cause for failing to timely
file the return required by section 289A.08, subdivision 1,
files the required return within ten years of the date specified
in section 289A.18, subdivision 1, and independently verifies
that an overpayment has been made, the commissioner shall grant
a refund claimed by the original return, notwithstanding the
limitations of subdivision 1.
Sec. 19. Minnesota Statutes 1992, section 289A.60,
subdivision 1, is amended to read:
Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX.] If a
tax other than a withholding or sales or use tax is not paid or
amounts required to be withheld are not remitted within the time
specified for payment, a penalty must be added to the amount
required to be shown as tax. The penalty is three percent of
the tax not paid on or before the date specified for payment of
the 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 a withholding or sales or use tax is not paid within the
time specified for payment, a penalty must be added to the
amount required to be shown as tax. The penalty is five percent
of the tax not paid on or before the date specified for payment
of the tax if the failure is for not more than 30 days, with an
additional penalty of 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 15
percent in the aggregate.
Sec. 20. Minnesota Statutes 1992, section 289A.60,
subdivision 2, is amended to read:
Subd. 2. [PENALTY FOR FAILURE TO MAKE AND FILE RETURN.] If
a taxpayer fails to make and file a return other than an income
tax return of an individual, a withholding return, or sales or
use tax 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 including any extensions 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, other than an income
tax return of an individual, 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 not be less than 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.
If a taxpayer fails to file an individual income tax return
within six months after the date prescribed for filing of the
return, a penalty of ten percent of the amount of tax not paid
by the end of that six-month period is added to the tax.
If a taxpayer fails to file a withholding or sales or use
tax return within the time prescribed, including an extension, a
penalty of five percent of the amount of tax not timely paid is
added to the tax.
Sec. 21. Minnesota Statutes 1992, section 289A.60, is
amended by adding a subdivision to read:
Subd. 5a. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS
OR PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file withholding or sales or use tax returns
or timely pay withholding or sales or use taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 22. Minnesota Statutes 1992, section 289A.60,
subdivision 15, is amended to read:
Subd. 15. [ACCELERATED PAYMENT OF JUNE SALES TAX
LIABILITY; PENALTY FOR UNDERPAYMENT.] If a vendor is required by
law to submit an estimation of June sales tax liabilities and
one-half 75 percent payment by a certain date, and the vendor
fails to remit the balance due by the date required, the vendor
shall pay a penalty equal to ten percent of the amount of actual
June liability required to be paid in June less the amount
remitted in June. The penalty must not be imposed, however, if
the amount remitted in June equals the lesser of: (1) 45 70
percent of the actual June liability, (2) 50 75 percent of the
preceding May's liability, or (3) 50 75 percent of the average
monthly liability for the previous calendar year.
Sec. 23. Minnesota Statutes 1992, section 289A.60, is
amended by adding a subdivision to read:
Subd. 21. [PENALTY FOR FAILURE TO MAKE PAYMENT BY
ELECTRONIC FUNDS TRANSFER.] In addition to other applicable
penalties imposed by this section, after notification from the
commissioner to the taxpayer that payments are required to be
made by means of electronic funds transfer under section
289A.20, subdivision 2, paragraph (e), or 4, paragraph (d), or
289A.26, subdivision 2a, and the payments are remitted by some
other means, there is a penalty in the amount of five percent of
each payment that should have been remitted electronically. The
penalty can be abated under the abatement procedures prescribed
in section 270.07, subdivision 6, if the failure to remit the
payment electronically is due to reasonable cause.
Sec. 24. Minnesota Statutes 1992, section 294.03,
subdivision 1, is amended to read:
Subdivision 1. If any company, joint stock association,
copartnership, corporation, or individual required by law to pay
taxes to the state on a gross earnings basis shall fail to pay
such tax or gross earnings percentage within the time specified
by law for the payment thereof, or within 30 days after final
determination of an appeal to the Minnesota tax court relating
thereto, there shall be added a specific penalty equal to ten
five percent of the amount so remaining unpaid if the failure is
for not more than 30 days, with an additional penalty of 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 15 percent in the aggregate.
Such penalty shall be collected as part of said tax, and the
amount of said tax not timely paid, together with said penalty,
shall bear interest at the rate specified in section 270.75 from
the time such tax should have been paid until paid.
Sec. 25. Minnesota Statutes 1992, section 294.03,
subdivision 2, is amended to read:
Subd. 2. In case of any failure to make and file a return
as required by this chapter within the time prescribed by law or
prescribed by the commissioner in pursuance of law, unless it is
shown that such failure is not due to willful neglect, there
shall be added to the tax in lieu of the ten percent specific
penalty provided in subdivision 1: ten percent if the failure
is for not more than 30 days with an additional five percent for
each additional 30 days or fraction thereof during which such
failure continues, not exceeding 25 percent in the aggregate a
penalty of five percent of the amount of tax not timely paid.
The amount so added to any tax shall be collected at the same
time and in the same manner and as a part of the tax, and the
amount of said tax together with the amount so added shall bear
interest at the rate specified in section 270.75 from the time
such tax should have been paid until paid unless the tax has
been paid before the discovery of the neglect, in which case the
amount so added shall be collected in the same manner as the tax.
For purposes of this subdivision, the amount of any taxes
required to be shown on the return shall be reduced by the
amount of any part of the tax which is paid on or before the
date prescribed for payment of the tax and by the amount of any
credit against the tax which may be claimed upon the return.
Sec. 26. Minnesota Statutes 1992, section 294.03, is
amended by adding a subdivision to read:
Subd. 4. If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 27. Minnesota Statutes 1992, section 296.14,
subdivision 1, is amended to read:
Subdivision 1. [CONTENTS; PAYMENT OF TAX; SHRINKAGE
ALLOWANCE.] On or before the 23rd day of each month, every
person who is required to pay gasoline tax or inspection fee on
petroleum products and every distributor shall file in the
office of the commissioner at St. Paul, Minnesota, a report in a
manner approved by the commissioner showing the number of
gallons of petroleum products received by the reporter during
the preceding calendar month, and such other information as the
commissioner may require. The number of gallons of gasoline
shall be reported in United States standard liquid gallons (231
cubic inches), except that the commissioner may upon written
application therefor and for cause shown permit the distributor
to report the number of gallons of such gasoline as corrected to
a 60 degree Fahrenheit temperature. If such application is
granted, all gasoline covered in such application and as allowed
by the commissioner must continue to be reported by the
distributor on the adjusted basis for a period of one year from
the date of the granting of the application. The number of
gallons of petroleum products other than gasoline shall be
reported as originally invoiced.
Each report shall show separately the number of gallons of
aviation gasoline received by the reporter during such calendar
month.
Each report shall be accompanied by remittance covering
inspection fees on petroleum products and gasoline tax on
gasoline received by the reporter during the preceding month;
provided that in computing such tax a deduction of three percent
of the quantity of gasoline received by a distributor shall be
made for evaporation and loss; provided further that at the time
of remittance the distributor shall submit satisfactory evidence
that one-third of such three percent deduction shall have been
credited or paid to dealers on quantities sold to them. The
report and remittance shall be deemed to have been filed as
herein required if postmarked on or before the 23rd day of the
month in which payable.
Each report shall contain a confession of judgment for the
amount of the tax shown due thereon to the extent not timely
paid.
If the aggregate remittances made during a fiscal year
ending June 30 equal or exceed $240,000 $120,000, all
remittances in the subsequent calendar year must be made by
means of a funds transfer as defined in section 336.4A-104,
paragraph (a). The funds transfer payment date, as defined in
section 336.4A-401, must be on or before the date the remittance
is due. If the date the remittance is due is not a funds
transfer business day, as defined in section 336.4A-105,
paragraph (a), clause (4), the payment date must be on or before
the funds transfer business day next following the date the
remittance is due.
Sec. 28. Minnesota Statutes 1992, section 297.03,
subdivision 6, is amended to read:
Subd. 6. [TAX STAMPING MACHINES.] (a) The commissioner
shall require any person licensed as a distributor to stamp
packages with a heat-applied tax stamping machine, approved by
the commissioner, which shall be provided by the distributor.
The commissioner shall supervise and check the operation of the
machines and shall provide for the payment of the tax on any
package so stamped, subject to the discount provided in
subdivision 5. The commissioner may sell heat-applied stamps on
a credit basis under conditions prescribed by the commissioner.
The stamps shall be sold by the commissioner at a price which
includes the tax after giving effect to the discount provided in
subdivision 5. The commissioner shall recover the actual costs
of the stamps from the distributor. A distributor having a
liability of $240,000 $120,000 or more during a fiscal year
ending June 30 must remit all liabilities purchased on a credit
basis in the subsequent calendar year by means of a funds
transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401,
must be on or before the date the tax is due. If the date the
tax is due is not a funds transfer business day, as defined in
section 336.4A-105, paragraph (a), clause (4), the payment date
must be on or before the funds transfer business day next
following the date the tax is due.
(b) If the commissioner finds that a stamping machine is
not affixing a legible stamp on the package, the commissioner
may order the distributor to immediately cease the stamping
process until the machine is functioning properly.
(c) The commissioner shall annually establish the maximum
amount of heat applied stamps that may be purchased each month.
Notwithstanding any other provisions of this chapter, the tax
due on the return will be based upon actual heat applied stamps
purchased during the reporting period.
Sec. 29. Minnesota Statutes 1992, section 297.07,
subdivision 1, is amended to read:
Subdivision 1. [MONTHLY RETURN FILED WITH COMMISSIONER.]
On or before the 18th day of each calendar month every
distributor with a place of business in this state shall file a
return with the commissioner showing the quantity of cigarettes
manufactured or brought in from without the state or purchased
during the preceding calendar month and the quantity of
cigarettes sold or otherwise disposed of in this state and
outside this state during that month. Every licensed
distributor outside this state shall in like manner file a
return showing the quantity of cigarettes shipped or transported
into this state during the preceding calendar month. Returns
shall be made upon forms furnished and prescribed by the
commissioner and shall contain such other information as the
commissioner may require. The return shall be accompanied by a
remittance for the full unpaid tax liability shown by it. The
return for the May liability and 75 percent of the estimated
June liability is due on the date payment of the tax is due.
Sec. 30. Minnesota Statutes 1992, section 297.07,
subdivision 4, is amended to read:
Subd. 4. [ACCELERATED TAX PAYMENT.] Every distributor
having a liability of $1,500 $120,000 or more in May 1987 or in
May of each subsequent during a fiscal year ending June 30,
shall remit the June liability for the next year in the
following manner required by this section.:
On or (a) Two business days before June 18, 1987, or June
18 30 of each subsequent the year, the distributor shall remit
the actual May liability and one-half 75 percent of the
estimated June liability to the commissioner and file the return
on a form prescribed by the commissioner.
(b) On or before July 18, 1987, or July August 18 of each
subsequent the year, the distributor shall submit a return
showing the actual June liability and paying any additional
amount of tax not remitted in June. A penalty is imposed equal
to ten percent of the amount of June liability required to be
paid in June less the amount remitted in June. However, the
penalty shall not be imposed if the amount remitted in June
equals the lesser of (a) 45 70 percent of the actual June
liability, or (b) 50 75 percent of the preceding May's liability.
Sec. 31. Minnesota Statutes 1992, section 297.35,
subdivision 1, is amended to read:
Subdivision 1. On or before the 18th day of each calendar
month every distributor with a place of business in this state
shall file a return with the commissioner showing the quantity
and wholesale sales price of each tobacco product (1) brought,
or caused to be brought, into this state for sale; and (2) made,
manufactured, or fabricated in this state for sale in this
state, during the preceding calendar month. Every licensed
distributor outside this state shall in like manner file a
return showing the quantity and wholesale sales price of each
tobacco product shipped or transported to retailers in this
state to be sold by those retailers, during the preceding
calendar month. Returns shall be made upon forms furnished and
prescribed by the commissioner and shall contain such other
information as the commissioner may require. Each return shall
be accompanied by a remittance for the full tax liability shown
therein, less 1.5 percent of such liability as compensation to
reimburse the distributor for expenses incurred in the
administration of sections 297.31 to 297.39. The return for the
May liability and 75 percent of the estimated June liability is
due on the date payment of the tax is due.
A distributor having a liability of $240,000 $120,000 or
more during a calendar year must remit all liabilities in the
subsequent fiscal year ending June 30 by means of a funds
transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401,
must be on or before the date the tax is due. If the date the
tax is due is not a funds transfer business day, as defined in
section 336.4A-105, paragraph (a), clause (4), the payment date
must be on or before the funds transfer business day next
following the date the tax is due.
Sec. 32. Minnesota Statutes 1992, section 297.35,
subdivision 5, is amended to read:
Subd. 5. Every distributor having a liability of
$1,500 $120,000 or more in May 1987 or in May of each subsequent
during a fiscal year ending June 30, shall remit the June
liability for the next year in the following manner required by
this section.:
On or (a) Two business days before June 18, 1987, or June
18 30 of each subsequent the year, the distributor shall remit
the actual May liability and one-half 75 percent of the
estimated June liability to the commissioner and file the return
on a form prescribed by the commissioner.
(b) On or before July 18, 1987, or July August 18 of each
subsequent the year, the distributor shall submit a return
showing the actual June liability and paying any additional
amount of tax not remitted in June. A penalty is imposed equal
to ten percent of the amount of June liability required to be
paid in June less the amount remitted in June. However, the
penalty is not imposed if the amount remitted in June equals the
lesser of (a) (1) 45 70 percent of the actual June liability,
or (b) (2) 50 75 percent of the preceding May's liability.
Sec. 33. Minnesota Statutes 1992, section 297.43,
subdivision 1, is amended to read:
Subdivision 1. [PENALTY ON UNPAID TAX.] If a tax imposed
by this chapter, or any part of it, is not paid within the time
required for the payment, or an extension of time, or within 30
days after final determination of an appeal to the tax court
relating to it, there shall be added to the tax a penalty equal
to three five percent of the amount remaining unpaid if the
failure is for not more than 30 days, with an additional penalty
of three five percent of the amount of tax remaining unpaid
during each additional 30 days or fraction thereof, not
exceeding 24 15 percent in the aggregate.
Sec. 34. Minnesota Statutes 1992, section 297.43,
subdivision 2, is amended to read:
Subd. 2. [PENALTY FOR FAILURE TO FILE.] If a person fails
to make and file a return within the time required under
sections 297.07, 297.23, and 297.35, there shall be added to the
tax three five 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 for each additional 30 days
or fraction thereof during which such failure continues, not
exceeding 23 percent in the aggregate. The amount so added to
any tax under this subdivision and subdivision 1 shall be
collected at the same time and in the same manner and as a part
of the tax and shall bear interest at the rate specified in
section 270.75 from the time the tax should have been paid,
unless the tax has been paid before the discovery of the
negligence, in which case the amount so added shall be collected
in the same manner as the tax.
In the case of a failure 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 shall not be less than the lesser of (i)
$200; or (ii) 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.
Sec. 35. Minnesota Statutes 1992, section 297.43, is
amended by adding a subdivision to read:
Subd. 4a. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS
OR PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 36. Minnesota Statutes 1992, section 297C.03,
subdivision 1, is amended to read:
Subdivision 1. [MANNER AND TIME OF PAYMENT; FAILURE TO
PAY.] The tax on wines and distilled spirits on which the excise
tax has not been previously paid must be paid to the
commissioner by persons liable for the tax on or before the 18th
day of the month following the month in which the first sale is
made in this state by a licensed manufacturer or wholesaler.
Every person liable for the tax on wines or distilled spirits
imposed by section 297C.02 must file with the commissioner on or
before the 18th day of the month following first sale in this
state by a licensed manufacturer or wholesaler a return in the
form prescribed by the commissioner, and must keep records and
render reports required by the commissioner. The commissioner
may certify to the commissioner of public safety any failure to
pay taxes when due as a violation of a statute relating to the
sale of intoxicating liquor for possible revocation or
suspension of license. The return for the May liability and 75
percent of the estimated June liability is due on the date
payment of the tax is due.
A person liable for an excise tax of $240,000 $120,000 or
more during a fiscal year ending June 30 must remit all excise
tax liabilities in the subsequent calendar year by means of a
funds transfer as defined in section 336.4A-104, paragraph (a).
The funds transfer payment date, as defined in section
336.4A-401, must be on or before the date the excise tax is
due. If the date the excise tax is due is not a funds transfer
business day, as defined in section 336.4A-105, paragraph (a),
clause (4), the payment date must be on or before the funds
transfer business day next following the date the excise tax is
due.
Sec. 37. Minnesota Statutes 1992, section 297C.04, is
amended to read:
297C.04 [PAYMENT OF TAX; MALT LIQUOR.]
The commissioner may by rule provide a reporting method for
paying and collecting the excise tax on fermented malt
beverages. The tax is imposed upon the first sale or
importation made in this state by a licensed brewer or
importer. The rules must require reports to be filed with and
the excise tax to be paid to the commissioner on or before the
18th day of the month following the month in which the
importation into or the first sale is made in this state,
whichever first occurs. The rules must also require payments in
June of 1987 and subsequent years according to the provisions of
section 297C.05, subdivision 2.
A distributor who has title to or possession of fermented
malt beverages upon which the excise tax has not been paid and
who knows that the tax has not been paid, shall file a return
with the commissioner on or before the 18th day of the month
following the month in which the distributor obtains title or
possession of the fermented malt beverages. The return must be
made on a form furnished and prescribed by the commissioner, and
must contain all information that the commissioner requires.
The return must be accompanied by a remittance for the full
unpaid liability shown on it. The return for the May liability
and 75 percent of the estimated June liability is due on the
date payment of the tax is due.
A licensed brewer, importer, or distributor having an
excise tax liability of $240,000 $120,000 or more during a
fiscal year ending June 30 must remit all excise tax liabilities
in the subsequent calendar year by means of a funds transfer as
defined in section 336.4A-104, paragraph (a). The funds
transfer payment date, as defined in section 336.4A-401, must be
on or before the date the excise tax is due. If the date the
excise tax is due is not a funds transfer business day, as
defined in section 336.4A-105, paragraph (a), clause (4), the
payment date must be on or before the funds transfer business
day next following the date the excise tax is due.
Sec. 38. Minnesota Statutes 1992, section 297C.05,
subdivision 2, is amended to read:
Subd. 2. [ACCELERATED TAX PAYMENT.] Every person liable
for tax under this chapter having a liability of $1,500 $120,000
or more in May 1987 or in May of each subsequent during a fiscal
year ending June 30, shall remit the June liability for the next
year in the following manner required by this section.:
On or (a) Two business days before June 18, 1987, or June
18 30 of each subsequent the year, the taxpayer shall remit the
actual May liability and one-half 75 percent of the estimated
June liability to the commissioner and file the return on a form
prescribed by the commissioner.
(b) On or before August 18, 1987, or August 18 of each
subsequent the year, the taxpayer shall submit a return showing
the actual June liability and paying any additional amount of
tax not remitted in June. A penalty is hereby imposed equal to
ten percent of the amount of June liability required to be paid
in June less the amount remitted in June. However, the penalty
shall not be imposed if the amount remitted in June equals the
lesser of (a) (1) 45 70 percent of the actual June liability,
or (b) (2) 50 75 percent of the preceding May's liability.
Sec. 39. Minnesota Statutes 1992, section 297C.14,
subdivision 1, is amended to read:
Subdivision 1. [PENALTY ON UNPAID TAX.] If a tax imposed
by this chapter, or any part of it, is not paid within the time
required for the payment, or an extension of time, or within 30
days after final determination of an appeal to the tax court
relating to it, there shall be added to the tax a penalty equal
to three five percent of the amount remaining unpaid if the
failure is for not more than 30 days, with an additional penalty
of three five percent of the amount of tax unpaid during each
additional 30 days or fraction thereof, not exceeding 24 15
percent in the aggregate.
Sec. 40. Minnesota Statutes 1992, section 297C.14,
subdivision 2, is amended to read:
Subd. 2. [PENALTY FOR FAILURE TO FILE.] If a person fails
to make and file a return within the time required by this
chapter or an extension of time, there shall be added to the tax
three five 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 for each additional 30 days or
fraction thereof during which such failure continues, not
exceeding 23 percent in the aggregate. The amount so added to
any tax under subdivisions 1 and 2 shall be collected at the
same time and in the same manner and as a part of the tax and
shall bear interest at the rate specified in section 270.75 from
the time the tax should have been paid, unless the tax has been
paid before the discovery of the negligence, in which case the
amount so added shall be collected in the same manner as the tax.
In the case of a failure 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 shall not be less than the lesser of (i)
$200; or (ii) 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.
Sec. 41. Minnesota Statutes 1992, section 297C.14, is
amended by adding a subdivision to read:
Subd. 9. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS OR
PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 42. Minnesota Statutes 1992, section 298.27, is
amended to read:
298.27 [COLLECTION AND PAYMENT OF TAX.]
The taxes provided by section 298.24 shall be paid directly
to each eligible county and the iron range resources and
rehabilitation board. The commissioner of revenue shall notify
each producer of the amount to be paid each recipient prior to
February 8 15. Every person subject to taxes imposed by section
298.24 shall file a correct report covering the preceding year.
The report must contain the information required by the
commissioner. The report shall be filed on or before February
1. A remittance equal to 90 100 percent of the total tax
required to be paid hereunder shall be paid on or before
February 15 24. On or before February 25, the county auditor
shall make distribution of the payment received by the county in
the manner provided by section 298.28. The balance due shall be
paid on or before April 15 following the production year, and
shall be distributed by the county auditor as provided in
section 298.28 by May 15. Reports shall be made and hearings
held upon the determination of the tax in accordance with
procedures established by the commissioner of revenue. The
commissioner of revenue shall have authority to make reasonable
rules as to the form and manner of filing reports necessary for
the determination of the tax hereunder, and by such rules may
require the production of such information as may be reasonably
necessary or convenient for the determination and apportionment
of the tax. All the provisions of the occupation tax law with
reference to the assessment and determination of the occupation
tax, including all provisions for appeals from or review of the
orders of the commissioner of revenue relative thereto, but not
including provisions for refunds, are applicable to the taxes
imposed by section 298.24 except in so far as inconsistent
herewith. If any person subject to section 298.24 shall fail to
make the report provided for in this section at the time and in
the manner herein provided, the commissioner of revenue shall in
such case, upon information possessed or obtained, ascertain the
kind and amount of ore mined or produced and thereon find and
determine the amount of the tax due from such person. There
shall be added to the amount of tax due a penalty for failure to
report on or before February 1, which penalty shall equal ten
percent of the tax imposed and be treated as a part thereof.
If any person responsible for making a partial tax payment
at the time and in the manner herein provided fails to do so,
there shall be imposed a penalty equal to ten percent of the
amount so due, which penalty shall be treated as part of the tax
due.
In the case of any underpayment of the partial tax payment
required herein, there may be added and be treated as part of
the tax due a penalty equal to ten percent of the amount so
underpaid.
If any portion of the taxes provided for in section 298.24
is not paid before the fifteenth day of April of the year in
which due and payable, a penalty of ten percent of such unpaid
portion shall immediately accrue, and thereafter one percent per
month shall be added to such tax and penalty while such tax
remains unpaid.
A person having a liability of $120,000 or more during a
calendar year must remit all liabilities by means of a funds
transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336A.4A-401,
must be on or before the date the tax is due. If the date the
tax is due is not a funds transfer business day, as defined in
section 336.4A-105, paragraph (a), clause (4), the payment date
must be on or before the funds transfer business day next
following the date the tax is due.
Sec. 43. Minnesota Statutes 1992, section 299F.21,
subdivision 2, is amended to read:
Subd. 2. [ANNUAL RETURNS.] (a) Every insurer required to
pay a tax under this section shall make and file a statement of
estimated taxes for the period covered by the installment tax
payment. The statement shall be in the form prescribed by the
commissioner of revenue.
(b) On or before March 1, annually every insurer subject to
taxation under this section shall make an annual return for the
preceding calendar year setting forth information the
commissioner of revenue may reasonably require on forms
prescribed by the commissioner.
(c) On March 1, the insurer shall pay any additional amount
due for the preceding calendar year; if there has been an
overpayment, the overpayment may be credited without interest on
the estimated tax due April 15.
(d) If unpaid by this date, penalties and interest as
provided in section 289A.60, subdivision 1, as related to
withholding and sales or use taxes, shall be imposed.
Sec. 44. Minnesota Statutes 1992, section 299F.23,
subdivision 2, is amended to read:
Subd. 2. [FAILURE TO FILE; PENALTIES AND INTEREST.] In
case of any failure to make and file a return as required by
this chapter within the time prescribed by law or prescribed by
the commissioner of revenue in pursuance of law there shall be
added to the tax penalties and interest as provided in section
289A.60, subdivision 2, as related to withholding and sales or
use taxes.
Sec. 45. Minnesota Statutes 1992, section 299F.23, is
amended by adding a subdivision to read:
Subd. 5. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS OR
PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 46. Minnesota Statutes 1992, 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. The rate of the tax is two percent
of the ideal gross of the pull-tab or tipboard deal. The sales
tax imposed by chapter 297A on the sale of the pull-tabs and
tipboards by the licensed distributor 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 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 customer, to a common or contract carrier for
delivery to the customer, or when received by the 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) Pull-tabs and tipboards sold to an organization that
sells pull-tabs and tipboards under the exemption from licensing
in section 349.166, subdivision 2, paragraph (a), 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.
(d) A distributor having a liability of $240,000 $120,000
or more during a fiscal year ending June 30 must remit all
liabilities in the subsequent calendar year by means of a funds
transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401,
must be on or before the date the tax is due. If the date the
tax is due is not a funds transfer business day, as defined in
section 336.4A-105, paragraph (a), clause (4), the payment date
must be on or before the funds transfer business day next
following the date the tax is due.
Sec. 47. Minnesota Statutes 1992, section 349.217,
subdivision 1, is amended to read:
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 five 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 15 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.
Sec. 48. Minnesota Statutes 1992, section 349.217,
subdivision 2, is amended to read:
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 five 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.
Sec. 49. Minnesota Statutes 1992, section 349.217, is
amended by adding a subdivision to read:
Subd. 5a. [PENALTY FOR REPEATED FAILURES TO FILE RETURNS
OR PAY TAXES.] If there is a pattern by a person of repeated
failures to timely file returns or timely pay taxes, and written
notice is given that a penalty will be imposed if such failures
continue, a penalty of 25 percent of the amount of tax not
timely paid as a result of each such subsequent failure is added
to the tax. The penalty can be abated under the abatement
authority in section 270.07, subdivisions 1, paragraph (e), and
6.
Sec. 50. Minnesota Statutes 1992, section 473.843,
subdivision 3, is amended to read:
Subd. 3. [PAYMENT OF FEE.] On or before the 20th day of
each month each operator shall pay the fee due under this
section for the previous month, using a form provided by the
commissioner of revenue.
An operator having a fee of $240,000 $120,000 or more
during a fiscal year ending June 30 must pay all fees in the
subsequent calendar year by means of a funds transfer as defined
in section 336.4A-104, paragraph (a). The funds transfer
payment date, as defined in section 336.4A-401, must be on or
before the date the fee is due. If the date the fee is due is
not a funds transfer business day, as defined in section
336.4A-105, paragraph (a), clause (4), the payment date must be
on or before the funds transfer business day next following the
date the fee is due.
Sec. 51. [PENALTY FOR REPEATED NON-FILING; RULEMAKING
REQUIRED.]
Before imposing a penalty under section 3, 6, 21, 26, 35,
41, 45, or 49, the commissioner of revenue shall promulgate
rules under Minnesota Statutes, chapter 14, that prescribe what
constitutes "repeated failures to timely file returns or timely
pay taxes" for purposes of the penalty under each section and
any other matters the commissioner determines appropriate.
Sec. 52. [EFFECTIVE DATE.]
Sections 1 to 6, 19 to 21, 24 to 26, 33 to 35, 39 to 41, 43
to 45, and 47 to 49 are effective for taxes and returns due on
or after January 1, 1994.
For purposes of imposing the penalties under sections 3, 6,
21, 26, 35, 41, 45, and 49, violations for late filing of
returns or late payment of taxes can occur before or after
January 1, 1994, but no penalty may be imposed under those
sections until final rules promulgated under the administrative
procedures act satisfying requirements of section 51 take effect.
Sections 7, 8, 11, 16, and 17 are effective the day
following final enactment.
Section 9 is effective July 1, 1993.
Sections 10 and 23 are effective for taxes due on or after
October 1, 1993.
Section 12 is effective for confessions of judgment entered
into after June 30, 1993.
Sections 13 to 15, 22, 27 to 32, 36 to 38, 42, 46, and 50
are effective for payments due in the calendar year 1994, and
thereafter, based upon payments made in the fiscal year ending
June 30, 1993, and thereafter; provided that section 13, as it
relates to quarterly and annual sales and use tax returns, is
effective for returns due for calendar quarters beginning with
the first quarter of 1994, and for calendar years beginning with
1994.
Section 18 is effective for returns due for taxable years
beginning after December 31, 1982.
ARTICLE 11
ASSESSORS ADMINISTRATIVE
Section 1. Minnesota Statutes 1992, section 270B.12, is
amended by adding a subdivision to read:
Subd. 9. [COUNTY ASSESSORS.] If, as a result of an audit,
the commissioner determines that a person is a Minnesota
nonresident or part-year resident for income tax purposes, the
commissioner may disclose the person's name, address, and social
security number to the assessor of any political subdivision in
the state, when there is reason to believe that the person may
have claimed or received homestead property tax benefits for a
corresponding assessment year in regard to property apparently
located in the assessor's jurisdiction.
Sec. 2. Minnesota Statutes 1992, 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. 3. Minnesota Statutes 1992, section 273.11,
subdivision 13, is amended to read:
Subd. 13. [VALUATION OF INCOME-PRODUCING PROPERTY.]
Beginning with the 1995 assessment, only accredited assessors or
senior accredited assessors or other licensed assessors who have
successfully completed at least two income-producing property
appraisal courses may value income-producing property for ad
valorem tax purposes. "Income-producing property" as used in
this subdivision means the taxable property in class 3a and 3b
in section 273.13, subdivision 24; class 4a and 4c, except for
seasonal recreational property not used for commercial purposes,
and class 4d in section 273.13, subdivision 25; and class 5 in
section 273.13, subdivision 31. "Income-producing property
appraisal course" as used in this subdivision means a course of
study of approximately 30 instructional hours, with a final
comprehensive test. An assessor must successfully complete the
final examination for each of the two required courses. The
course must be approved by the board of assessors.
Sec. 4. [REPORT ON COMPOSITION OF FARMS.]
Before December 1, 1993, each county assessor shall provide
a report to the commissioner of revenue on the composition of
farm homesteads within the county. The report shall document
the size of farms in acres, the value of farms broken down into
land value and building value, and such other information as the
commissioner shall require. The report shall be in a form
prescribed by the commissioner with consultation from
legislative staff. The commissioner shall make the information
collected in the reports available to legislative staff.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 and 3 are effective the day following final
enactment.
Section 2 is effective for any appointment beginning
January 1, 1993 and thereafter.
ARTICLE 12
CONTAMINATION TAX
Section 1. [270.91] [CONTAMINATION TAX.]
Subdivision 1. [IMPOSITION.] A tax is annually imposed on
the contamination value of taxable real property in this state.
Subd. 2. [INITIAL TAX RATES.] Unless the rates under
subdivision 3 or 4 apply, the tax imposed under this section
equals 100 percent of the class rate for the property under
section 273.13, multiplied by the contamination value of the
property.
Subd. 3. [TAX RATES, NONRESPONSIBLE PARTY.] If neither the
owner nor the operator of the taxable real property, in the
assessment year, is a responsible person under chapter 115B or a
responsible party under chapter 18D for the presence of
contaminants on the property, unless subdivision 4 applies, the
tax imposed under this section equals 25 percent of the class
rate for the property under section 273.13, multiplied by the
contamination value of the property. A determination under
section 115B.177 or other similar determination by the
commissioner of the pollution control agency or by the
commissioner of agriculture for a release of agricultural
chemicals is dispositive of whether the owner or operator is not
a responsible person under chapter 18D or 115B for purposes of
this section. To qualify under this subdivision, the property
owner must provide the assessor with a copy of the determination
by July 1 of the assessment year.
Subd. 4. [TAX RATES AFTER PLAN APPROVAL.] (a) The tax
imposed under this subdivision applies for the first assessment
year that begins after one of the following occurs:
(1) a response action plan for the property has been
approved by the commissioner of the pollution control agency or
by the commissioner of agriculture for an agricultural chemical
release or incident subject to chapter 18D and work under the
plan has begun; or
(2) the contaminants are asbestos and the property owner
has in place an abatement plan for enclosure, removal, or
encapsulation of the asbestos or a proactive, in-place
management program pursuant to the rules, requirements, and
formal policies of the United States environmental protection
agency. To qualify under this clause, the property owner must
(1) have entered into a binding contract with a licensed
contractor for completion of the work, (2) have obtained a
license from the commissioner of health and begun the work, or
(3) implemented a proactive, in-place management program
pursuant to the rules, requirements, and formal policies of the
United States environmental protection agency. An abatement
plan must provide for completion of the work within a reasonable
time period, as determined by the assessors. An asbestos
management program must cover a period of time and require such
proactive practices as are required by the rules, requirements,
and formal policies of the United States environmental
protection agency.
(b) To qualify under paragraph (a), the property owner must
provide the assessor with a copy of: (1) the approved response
action plan; (2) a copy of the asbestos abatement plan and
contract for completion of the work or the owner's license to
perform the work; or (3) a copy of the approved asbestos
management program. The property owner also must file with the
assessor an affidavit indicating when work under the response
action plan or asbestos abatement plan began.
(c) The tax imposed under this subdivision equals 50
percent of the class rate for the property under section 273.13,
multiplied by the contamination value of the property.
(d) The tax imposed under this subdivision equals 12.5
percent of the class rate for the property under section 273.13,
multiplied by the contamination value of the property. The tax
under this paragraph applies if one of the following conditions
is satisfied:
(1) the contaminants are subject to chapter 115B and
neither the owner nor the operator of the taxable real property
in the assessment year is a responsible person under chapter
115B;
(2) the contaminants are subject to chapter 18D and neither
the owner nor the operator of the taxable real property in the
assessment year is a responsible party under chapter 18D;
(3) the contaminants are asbestos and neither the owner nor
the operator of the taxable real property in the assessment year
is required to undertake asbestos-related work, but is
implementing a proactive in-place management program.
Sec. 2. [270.92] [DEFINITIONS.]
Subdivision 1. [SCOPE OF APPLICATION.] For purposes of
sections 1 to 8, the following terms have the meanings given.
Subd. 2. [ASSESSMENT YEAR.] "Assessment year" means the
assessment year for purposes of general ad valorem property
taxes.
Subd. 3. [CONTAMINANT.] "Contaminant" means a harmful
substance as defined in section 115B.25, subdivision 7a.
Subd. 4. [CONTAMINATED MARKET VALUE.] "Contaminated market
value" is the amount determined under section 3.
Subd. 5. [PRESENCE OF CONTAMINANTS.] "Presence of
contaminants" includes the release or threatened release, as
defined in section 115B.02, subdivision 15, of contaminants on
the property.
Subd. 6. [RESPONSE PLAN.] "Response plan" means: (1) a
development action response plan, as defined in section 469.174,
subdivision 17; (2) a response action plan under chapter 115B or
a corrective action plan under chapter 18D; (3) a plan for
corrective action approved by the commissioner of agriculture
under section 18D.105; or (4) a plan for corrective action
approved by the commissioner of the pollution control agency
under section 115C.03.
Sec. 3. [270.93] [TAX BASE; CONTAMINATION VALUE.]
The contamination value of a parcel of property is the
amount of the market value reduction, if any, that is granted
for general ad valorem property tax purposes for the assessment
year because of the presence of contaminants. The contamination
value for a property may be no greater than the estimated cost
of implementing a reasonable response action plan or asbestos
abatement plan or management program for the property. These
reductions in market value include those granted by a court, by
a board of review, by the assessor upon petition or request of a
property owner, or by the assessor. Reductions granted by the
assessor are included only if the assessor reduced the
property's market value for the presence of contaminants using
an appraisal method or methods that are specifically designed or
intended to adjust for the valuation effects of the presence of
contaminants. The contamination value for a parcel with a
reduction in value of less than $10,000 is zero.
Sec. 4. [270.94] [EXEMPTION.]
(a) The tax imposed by sections 1 to 8 does not apply to
the contamination value of a parcel of property attributable to
contaminants that were addressed by a response action plan for
the property, if the commissioner of the pollution control
agency, or the commissioner of agriculture for a release subject
to chapter 18D, has determined that all the requirements of the
plan have been satisfied. This exemption applies beginning for
the first assessment year after the commissioner of the
pollution control agency, or the commissioner of agriculture
determines that the implementation of a response action plan has
been completed. To qualify under this paragraph, the property
owner must provide the assessor with a copy of the determination
by the commissioner of the pollution control agency or the
commissioner of agriculture of the completion of the response
action plan.
(b) The tax imposed by sections 1 to 8 does not apply to
the contamination value of a parcel that is attributable to
asbestos, if the work has been completed under an asbestos
abatement plan and the property owner provides the assessor with
an affidavit stating the work under the abatement plan has been
completed and any other evidence or information the assessor
requests.
Sec. 5. [270.95] [PAYMENT; ADMINISTRATION.]
The tax imposed under sections 1 to 8 is payable at the
same time and manner as the regular ad valorem property tax.
The tax is subject to the penalty, interest, lien, forfeiture,
and any other rules for collection of the regular ad valorem
property tax. If a reduction in market value that creates
contamination value is granted after the ad valorem property tax
has been paid, the contamination tax must be subtracted from the
amount to be refunded to the property owner.
Sec. 6. [270.96] [DUTIES.]
Subdivision 1. [ASSESSORS.] Each assessor shall notify the
county auditor of the contamination value under section 1 by the
separate tax rate categories under subdivisions 2, 3, and 4 for
each parcel of property within the assessor's jurisdiction. The
assessor shall provide notice of the contamination value to the
property owner by the later of June 1 of the assessment year or
30 days after the reduction in market value is finally granted.
Subd. 2. [AUDITOR.] The county auditor shall prepare
separate lists of the contamination values for all property
located in the county that are taxed under section 1,
subdivisions 2, 3, and 4. The commissioner shall prescribe the
form of the listing. The auditor shall include the amount of
the contamination taxes on the contamination value for the
assessment year on the regular ad valorem property tax statement
under section 276.04.
Subd. 3. [TREASURER.] (a) The county treasurer shall pay
the proceeds of the tax imposed under section 1, subdivision 4,
less the amount retained by the county for the cost of
administration under section 8, to the commissioner at the same
times provided for the ad valorem property tax settlements.
(b) The county treasurer shall pay the proceeds of the tax
imposed under section 1, subdivisions 2 and 3 to the local
taxing jurisdictions in the same manner provided for the
distribution of ad valorem property taxes.
Subd. 4. [COURT ORDERED REDUCTIONS IN VALUE.] If a court
orders a reduction in market value for purposes of the ad
valorem property tax because of the presence of contaminants on
the property, the court shall include in its order an offset for
payment of the tax on contaminated value under section 1.
Sec. 7. [270.97] [DEPOSIT OF REVENUES.]
The commissioner shall deposit all revenues derived from
the tax, interest, and penalties received from the county in the
contaminated site cleanup and development account in the general
fund.
Sec. 8. [270.98] [LOCAL ADMINISTRATIVE COSTS.]
The county may retain five percent of the total revenues
derived from the tax imposed under section 1, subdivision 4,
including interest and penalties, as compensation for
administering the tax. The county board may reimburse
municipalities for the services provided by assessors employed
by the municipality in administering sections 1 to 8.
Sec. 9. Minnesota Statutes 1992, section 273.11, is
amended by adding a subdivision to read:
Subd. 17. [VALUATION OF CONTAMINATED PROPERTIES.] (a) In
determining the market value of property containing
contaminants, the assessor shall reduce the market value of the
property by the contamination value of the property. The
contamination value is the amount of the market value reduction
that results from the presence of the contaminants, but it may
not exceed the cost of a reasonable response action plan or
asbestos abatement plan or management program for the property.
(b) For purposes of this subdivision, "asbestos abatement
plan," "contaminants," and "response action plan" have the
meanings as used in sections 1 and 2.
Sec. 10. Minnesota Statutes 1992, section 275.065,
subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The
county auditor shall prepare and the county treasurer shall
deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed
on the county's current year's assessment roll, a notice of
proposed property taxes and, in the case of a town, final
property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority other than a town
proposes to collect for taxes payable the following year and,
for a town, the amount of its final levy. 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 proposed or final property tax levy,
or, in case of a school district, on the current budget and
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.
(d) 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; and, in
the case of residential property, whether the property is
classified as homestead or nonhomestead. The notice must
clearly inform taxpayers of the years to which the market values
apply and that the values are final values;
(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
or, for a town, final net tax on the property for taxes payable
the following year and the actual tax for taxes payable the
current year. In the case of a parcel where tax increment or
the fiscal disparities areawide tax applies, the proposed tax
levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing
districts; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed or, for a
town, final taxes payable the following year, expressed as a
dollar amount and as a percentage.
(e) The notice must clearly state that the proposed or
final 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;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) any additional amount levied in lieu of a local sales
and use tax, unless this amount is included in the proposed or
final taxes; and
(6) the contamination tax imposed on properties which
received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead and the homeowner provides
satisfactory documentation to the county assessor that the
property is owned and has been used as the owner's homestead
prior to June 1 of that year, the assessor shall reclassify the
property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:
(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
the premises to which the notice must be mailed in order to
fulfill the requirements of this paragraph.
Sec. 11. Minnesota Statutes 1992, section 276.04,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
shall provide for the printing of the tax statements. 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 amount of the tax on contamination
value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. 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) 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 local tax 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
local tax 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, except that the amount of credit received under section
273.135 must be separately stated and identified as "taconite
tax relief";
(6) the net tax payable in the manner required in paragraph
(a); and
(7) any additional amount of tax authorized under sections
124A.03, subdivision 2a, and 275.61. These amounts shall be
listed as "voter approved referenda levies."
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, for taxes levied in 1991, and for all counties for taxes
levied in 1992 and thereafter, the commissioner must certify
this amount by September 1.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective beginning with taxes
assessed in 1994, payable in 1995, and apply to reductions in
market value in effect for the year regardless of when they were
granted.
ARTICLE 13
CONTAMINATION CLEANUP GRANTS
Section 1. [116J.551] [CREATION OF ACCOUNT.]
A contaminated site cleanup and development account is
created in the general fund. Money in the account may be used,
as appropriated by law, to make grants as provided in section 4
and to pay for the commissioner's costs in reviewing
applications and making grants.
Sec. 2. [116J.552] [DEFINITIONS.]
Subdivision 1. [SCOPE OF APPLICATION.] For purposes of
sections 1 to 7, the following terms have the meanings given.
Subd. 2. [CLEANUP COSTS.] "Cleanup costs" or "costs" mean
the cost of implementing an approved response action plan.
Subd. 3. [CONTAMINANT.] "Contaminant" means a hazardous
substance or a pollutant or contaminant as those terms are
defined in section 115B.02.
Subd. 4. [DEVELOPMENT AUTHORITY.] "Development authority"
includes a statutory or home rule charter city, housing and
redevelopment authority, economic development authority, and a
port authority.
Subd. 5. [METROPOLITAN AREA.] "Metropolitan area" means
the seven-county metropolitan area, as defined in section
473.121, subdivision 2.
Subd. 6. [MUNICIPALITY.] "Municipality" means the
statutory or home rule charter city, town, or, in the case of
unorganized territory, the county in which the site is located.
Subd. 7. [PROJECT COSTS.] "Project costs" includes cleanup
costs for the site and the cost of related site acquisition,
demolition of existing improvements, and installation of public
improvements necessary for the development authority to
implement the response action plan.
Subd. 8. [RESPONSE ACTION PLAN.] "Response action plan"
means a response action plan approved by the commissioner of the
pollution control agency, including a "development action
response plan" that meets the requirements of section 469.174,
subdivision 17; and a "voluntary response action plan" under
section 115B.175, subdivision 3.
Sec. 3. [116J.553] [GRANT APPLICATIONS.]
Subdivision 1. [APPLICATION REQUIRED.] To obtain a
contamination cleanup development grant, the development
authority shall apply to the commissioner. The governing body
of the municipality must approve, by resolution, the application.
Subd. 2. [REQUIRED CONTENT.] The commissioner shall
prescribe and provide the application form. The application
must include at least the following information:
(1) identification of the site;
(2) an approved response action plan for the site,
including the results of engineering and other tests showing the
nature and extent of the release or threatened release of
contaminants at the site;
(3) a detailed estimate, along with necessary supporting
evidence, of the total cleanup costs for the site;
(4) an appraisal of the current market value of the
property, separately taking into account the effect of the
contaminants on the market value, prepared by a qualified
independent appraiser using accepted appraisal methodology;
(5) an assessment of the development potential or likely
use of the site after completion of the response action plan,
including any specific commitments from third parties to
construct improvements on the site;
(6) the manner in which the municipality will meet the
local match requirement; and
(7) any additional information or material that the
commissioner prescribes.
Sec. 4. [116J.554] [GRANTS.]
Subdivision 1. [AUTHORITY.] The commissioner may make a
grant to an applicant development authority to pay for up to 75
percent of the cleanup costs for a qualifying site, except the
grant may not exceed 50 percent of the project costs. The
determination of whether to make a grant for a qualifying site
is within the sole discretion of the commissioner, subject to
the process provided by this section, and available unencumbered
money in the appropriation. The commissioner's decisions and
application of the priorities under section 5 are not subject to
judicial review, except for abuse of discretion.
Subd. 2. [QUALIFYING SITES.] A site qualifies for a grant
under this section, if the following criteria are met:
(1) the site is not scheduled for funding during the
current or next fiscal year under the Comprehensive
Environmental Response, Compensation, and Liability Act, United
States Code, title 42, section 9601, et seq. or under the
environmental response, and liability act under sections 115B.01
to 115B.24;
(2) the appraised value of the site after adjusting for the
effect on the value of the presence or possible presence of
contaminants using accepted appraisal methodology (i) is less
than 50 percent of the estimated cleanup costs for the site or
(ii) is less than or equal to the estimated cleanup costs for
the site and the cleanup costs equal or exceed $3 per square
foot for the site; and
(3) if the proposed cleanup is completed, it is expected
that the site will be improved with buildings or other
improvements and these improvements will provide a substantial
increase in the property tax base within a reasonable period of
time or the site will be used for an important publicly owned or
tax-exempt facility.
Sec. 5. [116J.555] [PRIORITIES.]
Subdivision 1. [PRIORITIES.] (a) The legislature expects
that applications for grants will exceed the available
appropriations and the agency will be able to provide grants to
only some of the applicant development authorities.
(b) If applications for grants for qualified sites exceed
the available appropriations, the agency shall make grants for
sites that, in the commissioner's judgment, provide the highest
return in public benefits for the public costs incurred and that
meet all the requirements provided by law. In making this
judgment, the commissioner shall consider the following factors:
(1) the recommendations or ranking of projects by the
commissioner of the pollution control agency regarding the
potential threat to public health and the environment that would
be reduced or eliminated by completion of each of the response
action plans;
(2) the potential increase in the property tax base of the
local taxing jurisdictions, considered relative to the fiscal
needs of the jurisdictions, that will result from developments
that will occur because of completion of each of the response
action plans;
(3) the social value to the community of the cleanup and
redevelopment of the site, including the importance of
development of the proposed public facilities on each of the
sites;
(4) the probability that each site will be cleaned up
without use of government money in the reasonably foreseeable
future;
(5) the amount of cleanup costs for each site; and
(6) the amount of the commitment of municipal or other
local resources to pay for the cleanup costs.
The factors are not listed in a rank order of priority;
rather the commissioner may weigh each factor, depending upon
the facts and circumstances, as the commissioner considers
appropriate. The commissioner may consider other factors that
affect the net return of public benefits for completion of the
response action plan. The commissioner, notwithstanding the
listing of priorities and the goal of maximizing the return of
public benefits, shall make grants that distribute available
money to sites both within and outside of the metropolitan
area. The commissioner shall provide a written statement of the
supporting reasons for each grant. Unless sufficient
applications are not received for qualifying sites outside of
the metropolitan area, at least 25 percent of the money provided
as grants must be made for sites located outside of the
metropolitan area.
Subd. 2. [APPLICATION CYCLES; REPORTING TO LCWM.] (a) In
making grants, the commissioner shall establish regular
application deadlines in which grants will be authorized from
all or part of the available appropriations of money in the
account.
(b) After each cycle in which grants are awarded, the
commissioner shall report to the legislative commission on waste
management the grants awarded and appropriate supporting
information describing each grant made. This report must be
made within 30 days after the grants are awarded.
(c) The commissioner shall annually report to the
legislative commission on the status of the cleanup projects
undertaken under grants made under the programs. The
commissioner shall include in the annual report information on
the cleanup and development activities undertaken for the grants
made in that and previous fiscal years. The commissioner shall
make this report no later than 120 days after the end of the
fiscal year.
Sec. 6. [116J.556] [LOCAL MATCH REQUIREMENT.]
(a) In order to qualify for a grant under sections 1 to 7,
the municipality must pay for at least one-half of the project
costs as a local match. The municipality shall pay an amount of
the project costs equal to at least 18 percent of the cleanup
costs from the municipality's general fund, a property tax levy
for that purpose, or other unrestricted money available to the
municipality (excluding tax increments). These unrestricted
moneys may be spent for project costs, other than cleanup costs,
and qualify for the local match payment equal to 18 percent of
cleanup costs. The rest of the local match may be paid with tax
increments or any other money available to the municipality.
(b) If the development authority establishes a tax
increment financing district or hazardous substance subdistrict
on the site to pay for part of the local match requirement, the
district or subdistrict is not subject to the state aid
reductions under section 273.1399. In order to qualify for the
exemption from the state aid reductions, the municipality must
elect, by resolution, on or before the request for certification
is filed that all tax increments from the district or
subdistrict will be used exclusively to pay (1) for project
costs for the site and (2) administrative costs for the district
or subdistrict. The district or subdistrict must be decertified
when an amount of tax increments equal to no more than three
times the costs of implementing the response action plan for the
site and the administrative costs for the district or
subdistrict have been received, after deducting the amount of
the state grant.
Sec. 7. [116J.557] [COST RECOVERY ACTIONS.]
Subdivision 1. [CAUSE OF ACTION.] The attorney general or
a development authority or municipality that incurs cleanup
costs to implement an approved response action plan pursuant to
sections 216C.11 to 216C.16, may bring an action under section
115B.04 or other law to recover the reasonable and necessary
cleanup costs incurred by the development authority or
municipality. The attorney general, development authority, or
municipality may recover all cleanup costs incurred whether paid
from the proceeds of a grant under sections 216C.11 to 216C.16
or funds of the development authority or municipality.
Recoverable costs include administrative and legal costs related
to the development and implementation of the response action
plan but do not include any cost associated with development or
redevelopment of property. A development authority or
municipality must have the consent of the attorney general to
bring or settle an action under this subdivision to recover
cleanup costs paid from the proceeds of a grant.
Subd. 2. [PROCEDURES.] The commissioner shall notify the
attorney general when a grant is awarded under sections 216C.11
to 216C.16. Upon request of the attorney general the
development authority shall prepare and submit a certification
of the cleanup costs and shall cooperate in any cost recovery
action brought by the attorney general under subdivision 1.
Certification by the development authority of the cleanup costs
incurred to develop and implement the approved response action
plan is prima facie evidence that the costs are reasonable and
necessary in any action brought under this section.
Subd. 3. [ATTORNEY GENERAL ASSISTANCE AND COSTS.] (a) The
attorney general may assist a development authority or
municipality, if requested to do so, in bringing an action under
subdivision 1 by providing legal and technical advice or other
appropriate assistance. The attorney general shall not assess
any fee to the development authority or municipality for the
assistance but may recover the cost of the assistance as
provided in paragraph (b).
(b) If the attorney general brings or assists in an action
brought under subdivision 1, the reasonable litigation expenses
or other costs of legal or technical assistance incurred by the
attorney general must be deducted from any recovery and paid to
the attorney general before proceeds of the recovery are
otherwise distributed. The attorney general shall deposit any
money so deducted in the general fund.
Subd. 4. [DISPOSITION OF RECOVERED AMOUNTS.] Amounts
recovered from responsible persons, after any deduction under
subdivision 3, and all other amounts otherwise received by the
municipality, the agency, or the attorney general for the site
shall be used to reimburse the municipality and the account in
proportion to their respective payments for response costs. The
amount of recovered costs apportioned to tax increments must be
treated by the municipality and development authority as an
excess increment under section 469.176, subdivision 2.
Sec. 8. [ST. PAUL; ARLINGTON-JACKSON STUDY AREA; SPECIAL
RULES FOR LOCAL MATCH.]
(a) The city of St. Paul or any of its development
authorities or agencies may apply for one or more grants under
this article for contamination cleanup in the area bounded on
the south by Maryland Avenue, on the west by Jackson Street, on
the north by Arlington Avenue, and on the east by interstate
highway 35E. In applying the local match requirement under
section 6, the city may meet the requirement that an amount
equal to 18 percent of cleaning costs be paid with unrestricted
money (excluding tax increments) by including unrestricted money
spent in the defined area for land acquisition, public
improvements or other development costs which do not qualify as
cleanup costs.
(b) Notwithstanding this exception, the city must provide,
at least, one-half of the project costs for the site for which
the grant is made. The local share of the project costs may be
financed wholly or in part with tax increments.
(c) Unrestricted money spent for land acquisition or other
costs and counted to meet the 18 percent match may be spent for
costs anywhere with the defined area, regardless of whether they
are for the specific site, but may only be used once in an
application for a grant, if grant applications are made for two
or more sites in the area.
(d) These special rules are provided to allow the city to
begin activities within the broader area before testing and
assessment of the contamination has been done and still to be
able to qualify for a grant with an equivalent local match. The
legislature shall study whether similar situations are common
for other contaminated areas and whether the general law should
be modified to provide for similar treatment for all comparable
sites.
Sec. 9. [APPROPRIATION.]
$2,000,000 is appropriated to the commissioner of trade and
economic development from the contaminated site cleanup and
development account in the general fund to make grants under
sections 1 to 7 and to pay the costs of administering the grant
program. This appropriation is for fiscal year 1995 and remains
available and does not cancel.
ARTICLE 14
TAX INCREMENT FINANCING
Section 1. Minnesota Statutes 1992, section 273.1399,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Qualifying captured net tax capacity" means the
following amounts:
(1) the captured net tax capacity of a new or the expanded
part of an existing economic development or soils condition tax
increment financing district, other than a qualified
manufacturing district, for which certification was requested
after April 30, 1990;
(2) the captured net tax capacity of a qualified
manufacturing district, multiplied by the following percentage
based on the number of years that have elapsed since the
assessment year of the original net tax capacity. In no case
may the final amounts be less than zero or greater than the
total captured net tax capacity of the district:
Number of Years Percentage
1 0
2 20
3 40
4 60
5 80
6 or more 100;
(3) the captured net tax capacity of a new or the expanded
part of an existing tax increment financing district, other than
a qualified housing district, qualified hazardous substance
subdistrict, or an economic development or soils condition
district, for which certification was requested after April 30,
1990, multiplied by the following percentage based on the number
of years that have elapsed since the assessment year of the
original net tax capacity. In no case may the final amounts be
less than zero or greater than the total captured net tax
capacity of the district.
Number of Renewal and All other
years Renovation Districts
Districts
0 to 5 0 0
6 12.5 6.25
7 25 12.5
8 37.5 18.75
9 50 25
10 62.5 31.25
11 75 37.5
12 87.5 43.75
13 100 50
14 100 56.25
15 100 62.5
16 100 68.75
17 100 75
18 100 81.25
19 100 87.5
20 100 93.75
21 or more 100 100
In the case of a hazardous substance subdistrict, the
number of years must be measured from the date of certification
of the subdistrict for purposes of the additional captured net
tax capacity resulting from the reduction in the subdistrict's
or site's original net tax capacity.
(b) The terms defined in section 469.174 have the meanings
given in that section.
(c) "Qualified manufacturing district" means an economic
development district that qualifies under section 469.176,
subdivision 4c, paragraph (a), without regard to clauses (2) and
(4) (5), for which certification was requested after June 30,
1991, located in a home rule charter or statutory city that (1)
has a population under 10,000 according to the last federal
census and (2) is wholly located outside of a metropolitan
statistical area as determined by the United States Office of
Management and Budget.
(d) "Qualified housing district" means a housing district
for a residential rental project or projects in which the only
properties receiving assistance from revenues derived from tax
increments from the district meet all of the requirements for a
low-income housing credit under section 42 of the Internal
Revenue Code of 1986, as amended through December 31, 1992,
regardless of whether the project actually receives a low-income
housing credit.
(e) "Qualified hazardous substance subdistrict" means a
hazardous substance subdistrict in which the municipality has
made an election to make an alternative local contribution as
provided under section 9.
Sec. 2. [272.71] [TIF PROPERTIES; NOTICE OF POTENTIAL
VALUATION REDUCTIONS.]
(a) The following officials shall notify the municipality
of potential reductions in the market value of taxable parcels
located in a tax increment financing district:
(1) for applications to reduce market value or abate taxes
or for applications to a local or county board of review, the
assessor;
(2) for applications to reduce market value or abate taxes
by the state board of equalization, the commissioner of revenue;
(3) for petitions to reduce market value or object to taxes
under chapter 278, the county attorney.
The official shall provide the notice to the municipality in
writing within 60 days after the petition or application for a
reduction is made.
(b) This section applies only to reductions in valuation or
taxes that are granted after certification of final values for
purposes of certifying local tax rates.
(c) For purposes of this section, "municipality" means the
municipality for the tax increment financing district, as
defined under section 469.174, subdivision 6.
Sec. 3. Minnesota Statutes 1992, section 469.012,
subdivision 1, is amended to read:
Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be
a public body corporate and politic and shall have all the
powers necessary or convenient to carry out the purposes of
sections 469.001 to 469.047, except that the power to levy and
collect taxes or special assessments is limited to the power
provided in sections 469.027 to 469.033. Its powers include the
following powers in addition to others granted in sections
469.001 to 469.047:
(1) to sue and be sued; to have a seal, which shall be
judicially noticed, and to alter it; to have perpetual
succession; and to make, amend, and repeal rules consistent with
sections 469.001 to 469.047;
(2) to employ an executive director, technical experts, and
officers, agents, and employees, permanent and temporary, that
it requires, and determine their qualifications, duties, and
compensation; for legal services it requires, to call upon the
chief law officer of the city or to employ its own counsel and
legal staff; so far as practicable, to use the services of local
public bodies in its area of operation, provided that those
local public bodies, if requested, shall make the services
available;
(3) to delegate to one or more of its agents or employees
the powers or duties it deems proper;
(4) within its area of operation, to undertake, prepare,
carry out, and operate projects and to provide for the
construction, reconstruction, improvement, extension,
alteration, or repair of any project or part thereof;
(5) subject to the provisions of section 469.026, to give,
sell, transfer, convey, or otherwise dispose of real or personal
property or any interest therein and to execute leases, deeds,
conveyances, negotiable instruments, purchase agreements, and
other contracts or instruments, and take action that is
necessary or convenient to carry out the purposes of these
sections;
(6) within its area of operation, to acquire real or
personal property or any interest therein by gifts, grant,
purchase, exchange, lease, transfer, bequest, devise, or
otherwise, and by the exercise of the power of eminent domain,
in the manner provided by chapter 117, to acquire real property
which it may deem necessary for its purposes, after the adoption
by it of a resolution declaring that the acquisition of the real
property is necessary to eliminate one or more of the conditions
found to exist in the resolution adopted pursuant to section
469.003 or to provide decent, safe, and sanitary housing for
persons of low and moderate income, or is necessary to carry out
a redevelopment project. Real property needed or convenient for
a project may be acquired by the authority for the project by
condemnation pursuant to this section. This includes any
property devoted to a public use, whether or not held in trust,
notwithstanding that the property may have been previously
acquired by condemnation or is owned by a public utility
corporation, because the public use in conformity with the
provisions of sections 469.001 to 469.047 shall be deemed a
superior public use. Property devoted to a public use may be so
acquired only if the governing body of the municipality has
approved its acquisition by the authority. An award of
compensation shall not be increased by reason of any increase in
the value of the real property caused by the assembly, clearance
or reconstruction, or proposed assembly, clearance or
reconstruction for the purposes of sections 469.001 to 469.047
of the real property in an area;
(7) within its area of operation, and without the adoption
of an urban renewal plan, to acquire, by all means as set forth
in clause (6) but without the adoption of a resolution provided
for in clause (6), real property, and to demolish, remove,
rehabilitate, or reconstruct the buildings and improvements or
construct new buildings and improvements thereon, or to so
provide through other means as set forth in Laws 1974, chapter
228, or to grade, fill, and construct foundations or otherwise
prepare the site for improvements. The authority may dispose of
the property pursuant to section 469.029, provided that the
provisions of section 469.029 requiring conformance to an urban
renewal plan shall not apply. The authority may finance these
activities by means of the redevelopment project fund or by
means of tax increments or tax increment bonds or by the methods
of financing provided for in section 469.033 or by means of
contributions from the municipality provided for in section
469.041, clause (9), or by any combination of those means. Real
property with buildings or improvements thereon shall only be
acquired under this clause when the buildings or improvements
are substandard. The exercise of the power of eminent domain
under this clause shall be limited to real property which
contains, or has contained within the three years immediately
preceding the exercise of the power of eminent domain and is
currently vacant, buildings and improvements which are vacated
and substandard. Notwithstanding the prior sentence, in cities
of the first class the exercise of the power of eminent domain
under this clause shall be limited to real property which
contains, or has contained within the three years immediately
preceding the exercise of the power of eminent domain, buildings
and improvements which are substandard. For the purpose of this
clause, substandard buildings or improvements mean hazardous
buildings as defined in section 463.15, subdivision 3, or
buildings or improvements that are dilapidated or obsolescent,
faultily designed, lack adequate ventilation, light, or sanitary
facilities, or any combination of these or other factors that
are detrimental to the safety or health of the community;
(8) within its area of operation, to determine the level of
income constituting low or moderate family income. The
authority may establish various income levels for various family
sizes. In making its determination, the authority may consider
income levels that may be established by the Department of
Housing and Urban Development or a similar or successor federal
agency for the purpose of federal loan guarantees or subsidies
for persons of low or moderate income. The authority may use
that determination as a basis for the maximum amount of income
for admissions to housing development projects or housing
projects owned or operated by it;
(9) to provide in federally assisted projects any
relocation payments and assistance necessary to comply with the
requirements of the Federal Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, and any
amendments or supplements thereto;
(10) to make an agreement with the governing body or bodies
creating the authority which provides exemption from all real
and personal property taxes levied or imposed by the state,
city, county, or other political subdivisions, for which the
authority shall make payments in lieu of taxes to the state,
city, county, or other political subdivisions as provided in
section 469.040. The governing body shall agree on behalf of
all the applicable governing bodies affected that local
cooperation as required by the federal government shall be
provided by the local governing body or bodies in whose
jurisdiction the project is to be located, at no cost or at no
greater cost than the same public services and facilities
furnished to other residents;
(11) to cooperate with or act as agent for the federal
government, the state or any state public body, or any agency or
instrumentality of the foregoing, in carrying out any of the
provisions of sections 469.001 to 469.047 or of any other
related federal, state, or local legislation; and upon the
consent of the governing body of the city to purchase, lease,
manage, or otherwise take over any housing project already owned
and operated by the federal government;
(12) to make plans for carrying out a program of voluntary
repair and rehabilitation of buildings and improvements, and
plans for the enforcement of laws, codes, and regulations
relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements. The authority may develop, test, and report
methods and techniques, and carry out demonstrations and other
activities for the prevention and elimination of slums and
blight;
(13) to borrow money or other property and accept
contributions, grants, gifts, services, or other assistance from
the federal government, the state government, state public
bodies, or from any other public or private sources;
(14) to include in any contract for financial assistance
with the federal government any conditions that the federal
government may attach to its financial aid of a project, not
inconsistent with purposes of sections 469.001 to 469.047,
including obligating itself (which obligation shall be
specifically enforceable and not constitute a mortgage,
notwithstanding any other laws) to convey to the federal
government the project to which the contract relates upon the
occurrence of a substantial default with respect to the
covenants or conditions to which the authority is subject; to
provide in the contract that, in case of such conveyance, the
federal government may complete, operate, manage, lease, convey,
or otherwise deal with the project until the defaults are cured
if the federal government agrees in the contract to reconvey to
the authority the project as then constituted when the defaults
have been cured;
(15) to issue bonds for any of its corporate purposes and
to secure the bonds by mortgages upon property held or to be
held by it or by pledge of its revenues, including grants or
contributions;
(16) to invest any funds held in reserves or sinking funds,
or any funds not required for immediate disbursement, in
property or securities in which savings banks may legally invest
funds subject to their control or in the manner and subject to
the conditions provided in section 475.66 for the deposit and
investment of debt service funds;
(17) within its area of operation, to determine where
blight exists or where there is unsafe, unsanitary, or
overcrowded housing;
(18) to carry out studies of the housing and redevelopment
needs within its area of operation and of the meeting of those
needs. This includes study of data on population and family
groups and their distribution according to income groups, the
amount and quality of available housing and its distribution
according to rentals and sales prices, employment, wages,
desirable patterns for land use and community growth, and other
factors affecting the local housing and redevelopment needs and
the meeting of those needs; to make the results of those studies
and analyses available to the public and to building, housing,
and supply industries;
(19) if a local public body does not have a planning agency
or the planning agency has not produced a comprehensive or
general community development plan, to make or cause to be made
a plan to be used as a guide in the more detailed planning of
housing and redevelopment areas;
(20) to lease or rent any dwellings, accommodations, lands,
buildings, structures, or facilities included in any project
and, subject to the limitations contained in sections 469.001 to
469.047 with respect to the rental of dwellings in housing
projects, to establish and revise the rents or charges therefor;
(21) to own, hold, and improve real or personal property
and to sell, lease, exchange, transfer, assign, pledge, or
dispose of any real or personal property or any interest
therein;
(22) to insure or provide for the insurance of any real or
personal property or operations of the authority against any
risks or hazards;
(23) to procure or agree to the procurement of government
insurance or guarantees of the payment of any bonds or parts
thereof issued by an authority and to pay premiums on the
insurance;
(24) to make expenditures necessary to carry out the
purposes of sections 469.001 to 469.047;
(25) to enter into an agreement or agreements with any
state public body to provide informational service and
relocation assistance to families, individuals, business
concerns, and nonprofit organizations displaced or to be
displaced by the activities of any state public body;
(26) to compile and maintain a catalog of all vacant, open
and undeveloped land, or land which contains substandard
buildings and improvements as that term is defined in clause
(7), that is owned or controlled by the authority or by the
governing body within its area of operation and to compile and
maintain a catalog of all authority owned real property that is
in excess of the foreseeable needs of the authority, in order to
determine and recommend if the real property compiled in either
catalog is appropriate for disposal pursuant to the provisions
of section 469.029, subdivisions 9 and 10;
(27) to recommend to the city concerning the enforcement of
the applicable health, housing, building, fire prevention, and
housing maintenance code requirements as they relate to
residential dwelling structures that are being rehabilitated by
low- or moderate-income persons pursuant to section 469.029,
subdivision 9, for the period of time necessary to complete the
rehabilitation, as determined by the authority;
(28) to recommend to the city the initiation of municipal
powers, against certain real properties, relating to repair,
closing, condemnation, or demolition of unsafe, unsanitary,
hazardous, and unfit buildings, as provided in section 469.041,
clause (5);
(29) to sell, at private or public sale, at the price or
prices determined by the authority, any note, mortgage, lease,
sublease, lease purchase, or other instrument or obligation
evidencing or securing a loan made for the purpose of economic
development, job creation, redevelopment, or community
revitalization by a public agency to a business, for-profit or
nonprofit organization, or an individual;
(30) within its area of operation, to acquire and sell real
property that is benefited by federal housing assistance
payments, other rental subsidies, interest reduction payments,
or interest reduction contracts for the purpose of preserving
the affordability of low- and moderate-income multifamily
housing;
(31) to apply for, enter into contracts with the federal
government, administer, and carry out a section 8 program.
Authorization by the governing body creating the authority to
administer the program at the authority's initial application is
sufficient to authorize operation of the program in its area of
operation for which it was created without additional local
governing body approval. Approval by the governing body or
bodies creating the authority constitutes approval of a housing
program for purposes of any special or general law requiring
local approval of section 8 programs undertaken by city, county,
or multicounty authorities; and
(32) to secure a mortgage or loan for a rental housing
project by obtaining the appointment of receivers or assignments
of rents and profits under sections 559.17 and 576.01, except
that the limitation relating to the minimum amounts of the
original principal balances of mortgages specified in sections
559.17, subdivision 2, clause (2); and 576.01, subdivision 2,
does not apply.
Sec. 4. Minnesota Statutes 1992, section 469.174,
subdivision 19, is amended to read:
Subd. 19. [SOILS CONDITION DISTRICTS.] (a) "Soils
condition 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 the
following conditions exist:
(1) less than 70 percent of the parcels in the district are
occupied by buildings, streets, utilities, or other
improvements;
(2) unusual terrain, the presence of hazardous substances,
pollution or contaminants, or soil deficiencies for 80 percent
of the acreage in the district require substantial filling,
grading, removal or remedial action, or other physical
preparation for use;
(3) (2) the estimated cost of the physical preparation
under clause (2) (1), but excluding costs directly related to
roads as defined in section 160.01 and local improvements as
described in sections 429.021, subdivision 1, clauses (1) to
(7), (11), and (12), and 430.01, when added to the fair market
value of the land upon inclusion in the district exceeds the
anticipated fair market value of the land upon before completion
of the preparation.
The requirements of clause (2) need not be satisfied, if
each parcel of property in the district either satisfies the
requirements of clause (2) or the estimated costs of the
proposed removal or remedial action exceeds $2 per square foot
for the area of the parcel.
(b) An area does not qualify as a soils condition district
if it contains a wetland, as defined in section 103G.005, unless
the development agreement prohibits draining, filling, or other
alteration of the wetland or other binding legal assurances for
preservation of the wetland are provided.
(c) If the district is located in the metropolitan area,
the proposed development of the district in the tax increment
financing plan must be consistent with the municipality's land
use plan adopted in accordance with sections 473.851 to 473.872
and reviewed by the metropolitan council under section 473.175.
If the district is located outside of the metropolitan area, the
proposed development of the district must be consistent with the
municipality's comprehensive municipal plan.
(d) No parcel shall be included in the district unless the
authority has concluded an agreement or agreements for the
development of at least 50 percent of the acreage having the
unusual soil or terrain deficiencies. The agreement must
provide recourse for the authority if the development is not
completed.
Sec. 5. Minnesota Statutes 1992, section 469.174,
subdivision 20, is amended to read:
Subd. 20. [INTERNAL REVENUE CODE.] "Internal Revenue Code"
means the Internal Revenue Code of 1986, as amended through
December 31, 1988 1992.
Sec. 6. Minnesota Statutes 1992, section 469.174, is
amended by adding a subdivision to read:
Subd. 22. [TOURISM FACILITY.] "Tourism facility" means
property that:
(1) is located in a county where the median income is no
more than 85 percent of the state median income;
(2) is located in a county in which, excluding the cities
of the first class in that county, the earnings on
tourism-related activities are 15 percent or more of the total
earnings in the county;
(3) is located outside the metropolitan area defined in
section 473.121, subdivision 2;
(4) is not located in a city with a population in excess of
20,000; and
(5) is acquired, constructed, or rehabilitated for use as a
convention and meeting facility, amusement park, recreation
facility, cultural facility, marina, park, hotel, motel, lodging
facility, or nonhomestead dwelling unit that in each case is
intended to serve primarily individuals from outside the county.
Sec. 7. Minnesota Statutes 1992, section 469.175,
subdivision 1, is amended to read:
Subdivision 1. [TAX INCREMENT FINANCING PLAN.] (a) A tax
increment financing plan shall contain:
(1) a statement of objectives of an authority for the
improvement of a project;
(2) a statement as to the development program for the
project, including the property within the project, if any, that
the authority intends to acquire;
(3) a list of any development activities that the plan
proposes to take place within the project, for which contracts
have been entered into at the time of the preparation of the
plan, including the names of the parties to the contract, the
activity governed by the contract, the cost stated in the
contract, and the expected date of completion of that activity;
(4) identification or description of the type of any other
specific development reasonably expected to take place within
the project, and the date when the development is likely to
occur;
(5) estimates of the following:
(i) cost of the project, including administration expenses;
(ii) amount of bonded indebtedness to be incurred;
(iii) sources of revenue to finance or otherwise pay public
costs;
(iv) the most recent net tax capacity of taxable real
property within the tax increment financing district;
(v) the estimated captured net tax capacity of the tax
increment financing district at completion; and
(vi) the duration of the tax increment financing district's
existence;
(6) statements of the authority's alternate estimates of
the impact of tax increment financing on the net tax capacities
of all taxing jurisdictions in which the tax increment financing
district is located in whole or in part. For purposes of one
statement, the authority shall assume that the estimated
captured net tax capacity would be available to the taxing
jurisdictions without creation of the district, and for purposes
of the second statement, the authority shall assume that none of
the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the district;
(7) identification and description of studies and analyses
used to make the determination set forth in subdivision 3,
clause (2); and
(8) identification of all parcels to be included in the
district.
(b) For a housing district, redevelopment district, or a
hazardous substance subdistrict, the authority may elect in the
tax increment financing plan to provide for the identification
of a minimum market value in the plan, development agreement, or
assessment agreement, and provide that increment is first
received by the authority when (1) the market value of the
improvements as determined by the assessor reaches or exceeds
the minimum market value, or (2) four years has elapsed from the
date of certification of the original net tax capacity of the
taxable real property in the district by the county auditor,
whichever is earlier.
Sec. 8. Minnesota Statutes 1992, section 469.175, is
amended by adding a subdivision to read:
Subd. 2a. [HOUSING DISTRICTS; REDEVELOPMENT DISTRICTS.] In
the case of a proposed housing district or redevelopment
district, in addition to the requirements of subdivision 2, at
least 30 days before the publication of the notice for public
hearing under subdivision 3, the authority shall deliver written
notice of the proposed district to each county commissioner who
represents part of the area proposed to be included in the
district. The notice must contain a general description of the
boundaries of the proposed district and the proposed activities
to be financed by the district, an offer by the authority to
meet and discuss the proposed district with the county
commissioner, and a solicitation of the commissioner's comments
with respect to the district.
Sec. 9. Minnesota Statutes 1992, section 469.175, is
amended by adding a subdivision to read:
Subd. 7a. [HAZARDOUS SUBSTANCE SUBDISTRICTS; LOCAL
CONTRIBUTION ELECTION.] The state aid reductions under section
273.1399 do not apply to a hazardous substance subdistrict, if
the municipality elects to pay and pays 18 percent of the cost
of developing and implementing the development action response
plan for the subdistrict and of any deposits to an
indemnification fund out of its general fund, a property tax
levy for that purpose, or other unrestricted money of the
municipality (other than tax increments). The municipality must
elect this option before it requests certification of the
original tax capacity of the subdistrict and must notify the
commissioner of revenue of its election. The election is
irrevocable.
Sec. 10. Minnesota Statutes 1992, 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 (g) subdivisions 1a to 1f, 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) subdivisions 1a to 1f. 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 are
pledged to the payment of the bonds until the principal of and
interest on the bonds has been paid in full.
(d) Subd. 1a. [DURATION LIMIT; THREE-YEAR ACTIVITY RULE.]
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, unless
within the three-year period (1) bonds have been issued in aid
of the project containing the district pursuant to section
469.178, or any other law, except revenue bonds issued pursuant
to sections 469.152 to 469.165, 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) Subd. 1b. [DURATION LIMITS; TERMS.] (a) No tax
increment shall in any event be paid to the authority
(1) after 25 years from date of receipt by the authority of
the first tax increment for a mined underground space
development district, redevelopment district, or housing
district,
(2) after 15 years after receipt by the authority of the
first increment for a renewal and renovation district,
(3) after 12 years from approval of the tax increment
financing plan for a soils condition district, and
(4) after eight nine years from the date of the receipt, or
ten 11 years from approval of the tax increment financing plan,
whichever is less, for an economic development district.,
(5) for a housing district or a redevelopment district,
after 20 years from the date of receipt by the authority of the
first tax increment by the authority pursuant to section
469.175, subdivision 1, paragraph (b); or, if no provision is
made under section 469.175, subdivision 1, paragraph (b), after
25 years from the date of receipt by the authority of the first
increment.
(b) For purposes of determining a duration limit under this
subdivision or subdivision 1e that is based on the receipt of an
increment, any increments from taxes payable in the year in
which the district terminates shall be paid to the authority.
This paragraph does not affect a duration limit calculated from
the date of approval of the tax increment financing plan or
based on the recovery of costs or to a duration limit under
subdivision 1c. This paragraph does not supersede the
restrictions on payment of delinquent taxes in subdivision 1f.
Subd. 1c. [DURATION LIMITS; PRE-1979 DISTRICTS.] 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) Subd. 1d. [DURATION LIMITS; EFFECT OF MODIFICATIONS.]
Modification of a tax increment financing plan pursuant to
section 469.175, subdivision 4, shall not extend the durational
limitations of this subdivision subdivisions 1 to 1f.
(g) Subd. 1e. [DURATION LIMITS; HAZARDOUS SUBSTANCE
SUBDISTRICTS.] 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
subdivisions 1 to 1f for the overlying district. 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 469.174, subdivision 7,
paragraph (b), and received after the date of certification to
the county auditor described in section 469.174, 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 20 years if the authority
elects under section 469.175, subdivision 1, paragraph (b), to
defer receipt of the first increment; or (2) the period
necessary to recover the costs of removal actions or remedial
actions specified in a development response action plan.
(h) Subd. 1f. [DELINQUENT TAXES AFTER TERMINATION.] If a
parcel located in the district has delinquent property taxes
when the district terminates under the duration limits under
this subdivision, the payment of the parcel's delinquent taxes
made after decertification of the district are tax increments to
the extent the nonpayment of property taxes caused the
outstanding bonds or contractual obligations pledged to be paid
by the district to be paid by sources other than tax increments
or to go unpaid. The county auditor shall pay the appropriate
amount to the district. The authority shall provide the county
auditor with information regarding the payment of outstanding
bonds or contractual obligations and any other information
necessary to administer the payment, as requested by the county
auditor.
Sec. 11. Minnesota Statutes 1992, section 469.176,
subdivision 4, is amended to read:
Subd. 4. [LIMITATION ON USE OF TAX INCREMENT; GENERAL
RULE.] All revenues derived from tax increment shall be used in
accordance with the tax increment financing plan. The revenues
shall be used solely for the following purposes: (1) to pay the
principal of and interest on bonds issued to finance a project;
(2) by a rural development financing authority for the purposes
stated in section 469.142, by a port authority or municipality
exercising the powers of a port authority to finance or
otherwise pay the cost of redevelopment pursuant to sections
469.048 to 469.068, by an economic development authority to
finance or otherwise pay the cost of redevelopment pursuant to
sections 469.090 to 469.108, by a housing and redevelopment
authority or economic development authority to finance or
otherwise pay public redevelopment costs pursuant to sections
469.001 to 469.047, by a municipality or economic development
authority to finance or otherwise pay the capital and
administration costs of a development district pursuant to
sections 469.124 to 469.134, by a municipality or authority to
finance or otherwise pay the costs of developing and
implementing a development action response plan, by a
municipality or redevelopment agency to finance or otherwise pay
premiums for insurance or other security guaranteeing the
payment when due of principal of and interest on the bonds
pursuant to chapter 462C, sections 469.152 to 469.165, or both,
or to accumulate and maintain a reserve securing the payment
when due of the principal of and interest on the bonds pursuant
to chapter 462C, sections 469.152 to 469.165, or both, which
revenues in the reserve shall not exceed, subsequent to the
fifth anniversary of the date of issue of the first bond issue
secured by the reserve, an amount equal to 20 percent of the
aggregate principal amount of the outstanding and nondefeased
bonds secured by the reserve.
Sec. 12. Minnesota Statutes 1992, section 469.176,
subdivision 4c, is amended to read:
Subd. 4c. [ECONOMIC DEVELOPMENT DISTRICTS.] (a) Revenue
derived from tax increment from an economic development district
may not be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or assistance in any form to
developments consisting of buildings and ancillary facilities,
if at least ten more than 15 percent of the buildings and
facilities (determined on the basis of square footage) are used
for a purpose other than:
(1) the manufacturing or production of tangible personal
property, including processing resulting in the change in
condition of the property;
(2) warehousing, storage, and distribution of tangible
personal property, but excluding retail sales;
(3) research and development or related to the activities
listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of
the property; or
(4) (5) tourism facilities, if the tourism facility is not
located in a development region, as defined in section 462.384,
with a population in excess of 1,000,000; or
(6) space necessary for and related to the activities
listed in clauses (1) to (5).
The percentage of buildings and facilities that may be used
for nonqualifying purposes is increased above ten percent, but
not over 25 percent, to the extent the nonqualifying square
footage is directly related to and in support of the qualifying
activity.
(b) Population must be determined under the provisions of
section 477A.011. Tourism facilities are limited to hotel and
motel properties, including ancillary restaurants, convention
and meeting facilities, amusement parks, recreation facilities,
cultural facilities, marinas, and parks. The city must find
that the tourism facilities are intended primarily to serve
individuals outside of the development region.
(c) If the authority financed the construction of
improvements with increment revenues for a site on which the
authority expected qualifying facilities to be constructed and
nonqualified property was constructed on the site in excess of
the amount permitted under paragraph (a) within five years after
the district was created, the developer of the nonqualified
property must pay to the authority an amount equal to 90 percent
of the benefit resulting from the improvements. The amount
required to be paid may not exceed the proportionate cost of the
improvements, including capitalized interest, that was financed
with increment revenues. The payment must be used to prepay or
discharge bonds under section 469.176, subdivision 2, paragraph
(a), clauses (1) to (3). If no bonds are outstanding, the
payment shall be distributed as an excess increment. "Benefit"
has the meaning given in chapter 429.
(d) (b) Notwithstanding the provisions of this subdivision,
revenue derived from tax increment from an economic development
district may be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or assistance in any form for
up to 5,000 square feet of commercial and retail facilities
within the municipal jurisdiction of a home rule charter or
statutory city that has a population of 5,000 or less. The
5,000 square feet limitation is cumulative and applies to all
facilities in all the economic development districts within the
municipal jurisdiction.
Sec. 13. Minnesota Statutes 1992, section 469.176,
subdivision 4e, is amended to read:
Subd. 4e. [HAZARDOUS SUBSTANCE SUBDISTRICTS.] The
additional tax increment received by the municipality from a
hazardous substance subdistrict as a result of a reduction in
original net tax capacity pursuant to section 469.174,
subdivision 7, paragraph (b), or as a result of the extension of
the period for collection of tax increment from a hazardous
substance site or subdistrict provided for in subdivision 1,
paragraph (g), may be used only to pay or reimburse the costs
of: (1) removal actions or remedial actions with respect to
hazardous substances or pollutants or contaminants or petroleum
releases affecting or which may affect the designated hazardous
substance site; (2) pollution testing, demolition, and soil
compaction correction necessitated by the development response
action plan for the designated hazardous substance site; and (3)
purchase of environmental insurance or deposits to a guaranty
fund, relating only to liability or response costs for land in
the subdistrict; and (4) related administrative and legal costs,
including costs of review and approval of development response
action plans by the pollution control agency and litigation
expenses of the attorney general.
Sec. 14. Minnesota Statutes 1992, section 469.176,
subdivision 4g, is amended to read:
Subd. 4g. [GENERAL GOVERNMENT USE PROHIBITED.] (a) These
revenues shall not be used to circumvent existing levy limit
law. No revenues derived from tax increment from any district,
whether certified before or after August 1, 1979, shall be used
for the acquisition, construction, renovation, operation, or
maintenance of a building to be used primarily and regularly for
conducting the business of a municipality, county, school
district, or any other local unit of government or the state or
federal government. This provision shall not prohibit the use
of revenues derived from tax increments for the construction or
renovation of a parking structure, a commons area used as a
public park, or a facility used for social, recreational, or
conference purposes and not primarily for conducting the
business of the municipality.
(b) If any publicly owned facility used for social,
recreational, or conference purposes and financed in whole or in
part from revenues derived from a district is operated or
managed by an entity other than the authority, the operating and
management policies of the facility must be approved by the
governing body of the authority.
Sec. 15. [469.1765] [GUARANTY FUND.]
Subdivision 1. [AUTHORITY TO ESTABLISH.] An authority may
establish and maintain a guaranty fund or funds. Money in the
guaranty fund is available, under the terms and conditions that
the development authority establishes, to indemnify or hold
harmless a person from liability for remediation costs under a
state or federal environmental law, regulation, ruling, order,
or decision.
Subd. 2. [ELIGIBLE PERSON.] The authority may agree to
pledge money in the guaranty fund to indemnify a person whose
liability arises out of use, ownership, occupancy, or financing
of a property in the subdistrict or district.
Subd. 3. [TERMS OF INDEMNITY.] The authority shall
determine by resolution or by agreement with the person the
terms and conditions under which money in the guaranty fund will
be used to indemnify or hold harmless the person. The authority
may not agree to indemnify a person from liability for
contamination caused by the person. The maximum amount that may
be paid from the guaranty fund with respect to properties within
a subdistrict or district is one-half of the remediation and
removal costs. The maximum duration of an indemnification
agreement is 25 years. An indemnification agreement is subject
to any other restrictions provided by this section or other law.
Subd. 4. [FUNDING.] (a) Revenues derived from tax
increments and any other money available to the authority may be
deposited in the guaranty fund. The municipality may
appropriate money to the authority to be deposited in the
guaranty fund.
(b) If a guaranty fund is established that applies to
property located in more than one tax increment financing
district or subdistrict, the authority shall establish separate
accounts for each subdistrict and district. The authority shall
deposit all revenues derived from tax increments from a
subdistrict or district in the account for that subdistrict or
district, except the following amounts may be deposited in a
general or other account: (1) the portion of revenue derived
increments from a district, subject to section 469.1763, that
may be spent on activities outside of the district, or (2) up to
25 percent of the revenues derived from increments from
districts that are not subject to section 469.1763 and which may
be deposited in the guaranty fund under the applicable tax
increment financing plans. Investment earnings of money in an
account must be credited to that account.
(c) The only money which may be pledged to indemnify or
hold harmless a person from liability are amounts either in the
account for the subdistrict or district in which the property
out of which the liability arose is located or in an account not
dedicated to a specific subdistrict or district.
Subd. 5. [LIABILITY LIMITED.] The authority and
municipality is liable under a guaranty fund agreement only to
the extent funds are available in the guaranty fund account or
accounts available for the property.
Subd. 6. [DEPOSITORY.] The authority shall provide for the
guaranty fund to be held by or maintained with a financial
institution or corporate fiduciary eligible for the deposit of
public money or eligible to act as a trustee or fiduciary for
obligations issued under chapter 475.
Subd. 7. [FINAL DISPOSITION OF FUNDS.] At the end of the
period of the indemnification, all unencumbered money in the
guaranty fund for the subdistrict or district must be treated as
an excess increment and distributed under the provisions of
section 469.176, subdivision 2, paragraph (a), clause (4). If
the municipality contributed money to the account, other than
revenues derived from increments, the authority may deduct and
pay to the municipality a proportionate share of the
unencumbered money in the account before the money is
distributed as an excess increment. The proportionate share is
determined based on the amount of contributions of nonincrements
to the account relative to total contributions, including
increments, to the account.
Sec. 16. [469.1766] [DEVELOPER PAYMENTS.]
If the development agreement, other agreement, or
arrangement provides for the developer to repay all or part of
the assistance provided that was financed, directly or
indirectly, with revenues derived from tax increments, the
developer payments are subject to the restrictions imposed by
law on revenues derived from tax increments and may only be
spent for the purposes for which increments may be spent. A
developer includes any beneficiary of assistance financed with
revenues derived from tax increments.
Assistance includes sales of property at less than the cost
of acquisition or fair market value, grants, ground or other
leases at less than fair market rent, interest rate subsidies,
utility service connections, roads, or other similar assistance
that otherwise would have been paid in whole or part by the
beneficiary.
Sec. 17. Minnesota Statutes 1992, section 469.177,
subdivision 1, is amended to read:
Subdivision 1. [ORIGINAL NET TAX CAPACITY.] (a) Upon or
after adoption of a tax increment financing plan, the auditor of
any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the
tax increment financing district as described in the tax
increment financing plan and shall certify in each year
thereafter the amount by which the original net tax capacity has
increased or decreased as a result of a change in tax exempt
status of property within the district, reduction or enlargement
of the district or changes pursuant to subdivision 4.
(b) In the case of a mined underground space development
district the county auditor shall certify the original net tax
capacity as zero, plus the net tax capacity, if any, previously
assigned to any subsurface area included in the mined
underground space development district pursuant to section
272.04.
(c) For districts approved under section 469.175,
subdivision 3, or parcels added to existing districts after May
1, 1988, if the classification under section 273.13 of property
located in a district changes to a classification that has a
different assessment ratio, the original net tax capacity of
that property must be redetermined at the time when its use is
changed as if the property had originally been classified in the
same class in which it is classified after its use is changed.
(d) The amount to be added to the original net tax capacity
of the district as a result of previously tax exempt real
property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant
to section 273.18 or, if that assessment was made more than one
year prior to the date of title transfer rendering the property
taxable, the net tax capacity assessed by the assessor at the
time of the transfer. If substantial taxable improvements were
made to a parcel after certification of the district and if the
property later becomes tax exempt, in whole or part, as a result
of the authority acquiring the property through foreclosure or
exercise of remedies under a lease or other revenue agreement or
as a result of tax forfeiture, the amount to be added to the
original net tax capacity of the district as a result of the
property again becoming taxable is the amount of the parcel's
value that was included in original net tax capacity when the
parcel was first certified. The amount to be added to the
original net tax capacity of the district as a result of
enlargements equals the net tax capacity of the added real
property as most recently certified by the commissioner of
revenue as of the date of modification of the tax increment
financing plan pursuant to section 469.175, subdivision 4.
(e) For districts approved under section 469.175,
subdivision 3, or parcels added to existing districts after May
1, 1988, if the net tax capacity of a property increases because
the property no longer qualifies under the Minnesota
agricultural property tax law, section 273.111; the Minnesota
open space property tax law, section 273.112; or the
metropolitan agricultural preserves act, chapter 473H, or
because platted, unimproved property is improved or three years
pass after approval of the plat under section 273.11,
subdivision 1, the increase in net tax capacity must be added to
the original net tax capacity.
(f) Each year the auditor shall also add to the original
net tax capacity of each economic development district an amount
equal to the original net tax capacity for the preceding year
multiplied by the average percentage increase in the market
value of all property included in the economic development
district during the five years prior to certification of the
district.
(g) The amount to be subtracted from the original net tax
capacity of the district as a result of previously taxable real
property within the district becoming tax exempt, or a reduction
in the geographic area of the district, shall be the amount of
original net tax capacity initially attributed to the property
becoming tax exempt or being removed from the district. If the
net tax capacity of property located within the tax increment
financing district is reduced by reason of a court-ordered
abatement, stipulation agreement, voluntary abatement made by
the assessor or auditor or by order of the commissioner of
revenue, the reduction shall be applied to the original net tax
capacity of the district when the property upon which the
abatement is made has not been improved since the date of
certification of the district and to the captured net tax
capacity of the district in each year thereafter when the
abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form
and content of the request for certification of the authority
and any modification thereof pursuant to section 469.175,
subdivision 4.
(h) If a parcel of property contained a substandard
building that was demolished or removed and if the authority
elects to treat the parcel as occupied by a substandard building
under section 469.174, subdivision 10, paragraph (b), the
auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of
the parcel, or (2) the estimated market value of the parcel for
the year in which the building was demolished or removed, but
applying the class rates for the current year.
Sec. 18. Minnesota Statutes 1992, section 469.177,
subdivision 8, is amended to read:
Subd. 8. [ASSESSMENT AGREEMENTS.] An authority may enter
into a written assessment agreement with any person establishing
a minimum market value of land, existing improvements, or
improvements to be constructed in a district, if the property is
owned or will be owned by the person. The minimum market value
established by an assessment agreement may be fixed, or increase
or decrease in later years from the initial minimum market
value. If an agreement is fully executed before July 1 of an
assessment year, the market value as provided under the
agreement must be used by the county or local assessor as the
taxable market value of the property for that assessment.
Agreements executed on or after July 1 of an assessment year
become effective for assessment purposes in the following
assessment year. An assessment agreement terminates on the
earliest of the date on which conditions in the assessment
agreement for termination are satisfied, the termination date
specified in the agreement, or the date when tax increment is no
longer paid to the authority under section 469.176, subdivision
1. The assessment agreement shall be presented to the county
assessor, or city assessor having the powers of the county
assessor, of the jurisdiction in which the tax increment
financing district and the property that is the subject of the
agreement is located. The assessor shall review the plans and
specifications for the improvements to be constructed, review
the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minimum
market value contained in the assessment agreement appears, in
the judgment of the assessor, to be a reasonable estimate, shall
execute the following certification upon the agreement:
The undersigned assessor, being legally responsible
for the assessment of the above described property,
certifies that the market values assigned to
the land and improvements are reasonable.
The assessment agreement shall be filed for record and
recorded in the office of the county recorder or the registrar
of titles of each county where the real estate or any part
thereof is situated. After the agreement becomes effective for
assessment purposes, the assessor shall value the property under
section 273.11, except that the market value assigned shall not
be less than the minimum market value established by the
assessment agreement. The assessor may assign a market value to
the property in excess of the minimum market value established
by the assessment agreement. The owner of the property may
seek, through the exercise of administrative and legal remedies,
a reduction in market value for property tax purposes, but no
city assessor, county assessor, county auditor, board of review,
board of equalization, commissioner of revenue, or court of this
state shall grant a reduction of the market value below the
minimum market value established by the assessment agreement
during the term of the agreement filed of record regardless of
actual market values which may result from incomplete
construction of improvements, destruction, or diminution by any
cause, insured or uninsured, except in the case of acquisition
or reacquisition of the property by a public entity. Recording
an assessment agreement constitutes notice of the agreement to
anyone who acquires any interest in the land or improvements
that is subject to the assessment agreement, and the agreement
is binding upon them.
An assessment agreement may be modified or terminated by
mutual consent of the current parties to the agreement.
Modification or termination of an assessment agreement must be
approved by the governing body of the municipality. If the
estimated market value for the property for the most recently
available assessment is less than the minimum market value
established by the assessment agreement for that or any later
year and if bond counsel does not conclude that termination of
the agreement is necessary to preserve the tax exempt status of
outstanding bonds or refunding bonds to be issued, the
modification or termination of the assessment agreement also
must be approved by the governing bodies of the county and the
school district. A document modifying or terminating an
agreement, including records of the municipality, county, and
school district approval, must be filed for record. The
assessor's review and certification is not required if the
document terminates an agreement. A change to an agreement not
fully executed before July 1 of an assessment year is not
effective for assessment purposes for that assessment year. If
an assessment agreement has been modified or prematurely
terminated, a person may seek a reduction in market value or tax
through the exercise of any administrative or legal remedy. The
remedy may not provide for reduction of the market value below
the minimum provided under a modified assessment agreement that
remains in effect. In no event may a reduction be sought for a
year other than the current taxes payable year.
Sec. 19. Minnesota Statutes 1992, section 469.1831,
subdivision 4, is amended to read:
Subd. 4. [PROGRAM MONEY; DISTRIBUTION AND RESTRICTIONS.]
(a) Neighborhood revitalization program money may only be
expended in accordance with the program for a purpose listed in
subdivision 3 or this subdivision. Program money may not be
used in those project areas of the city where the city
determines that private investment will be sufficient to provide
for development and redevelopment of the project area without
public sector assistance, except in cases where program money is
being used to remove or rehabilitate structurally substandard or
obsolete buildings. Revenues derived from tax increments may
only be expended for the purposes otherwise permitted by law,
except that notwithstanding any law to the contrary, the city
must pay at least the following amount of program money,
including revenues derived from tax increments: (1) 15 percent
to the school district, (2) 7.5 percent to the county, and (3)
7.5 percent for social services. Payment must be made to the
county and school district within 15 days after the city
receives the distribution of increment revenues, provided that
the payment for calendar year 1990 may be made at any time
during the year. Payment to the county for social services
delivery shall be paid only after approval of program and
spending plans under paragraph (b). Payment to the school
district for education programs and services shall be paid only
after approval of program and spending plans under paragraph (b).
(b) The money distributed to the county in a calendar year
must be deducted from the county's levy limit for the following
calendar year. In calculating the county's levy limit base for
later years, the amount deducted must be treated as a local
government aid payment.
The city must notify the commissioner of education of the
amount of the payment made to the school district for the year.
The commissioner shall deduct from the school district's state
education aid payments one-half of the amount received by the
school district.
The program money paid to the school district must be
expended for additional education programs and services in
accordance with the program. The amounts expended by the school
district may not replace existing services.
The money for social services must be paid to the county
for the cost of the provision of social services under the plan,
as approved by the policy board and the county board.
(c) The city must expend on housing programs and related
purposes as provided by the program at least 75 percent of the
program money, after deducting the payments to the school
district and county.
(d) Notwithstanding any other provisions of law to the
contrary, for a city of the first class qualifying under section
469.1781, paragraph (a), program money and money described in
Laws 1990, chapter 604, article 7, section 29, as amended, may
be expended anywhere within the city by the authority for a
purpose permitted by this section for any political
subdivision without compliance with section 469.175, subdivision
4, and such money shall be deemed to be expended for a purpose
that is a permitted project under section 469.176 and for a
purpose that is permitted under section 469.176 for the district
from which the increment was received.
Sec. 20. [MINNETONKA; SOILS DISTRICT.]
Subdivision 1. [AUTHORITY.] The city of Minnetonka may
create a soils condition tax increment financing district with
or without a hazardous substance subdistrict, covering all or
any portion of the following described property in the city of
Minnetonka, county of Hennepin, state of Minnesota:
All that part of the east half of the northeast quarter of
section 14, township 117 north, range 22 west, lying north of
the Great Northern Railway right-of-way;
The east half of the southeast quarter of section 11,
township 117 north, range 22 west; and
Lots 1, 2, 3, 4, 5, and 10, Block 1, and Lots 1, 2, 3, and
8, Block 2, Golden Acres Addition.
This district and a subdistrict may be created under
Minnesota Statutes, section 469.175, if the governing body of
the city finds, by resolution, that establishment of the
district and a subdistrict will facilitate environmental
response and provide for the settlement of pending litigation.
Except as otherwise provided in this section, the provisions of
Minnesota Statutes, sections 469.174 to 469.179, apply to the
district and a subdistrict. The city may issue bonds or other
obligations payable, in whole or in part, from increment derived
from the district and a subdistrict. The request for
certification of the district and a subdistrict must be filed
with the county auditor before December 1, 1995. The city may
defer receipt of the first increment from the district or from a
subdistrict for up to three years following certification.
Minnesota Statutes, sections 469.174, subdivisions 7, paragraph
(c), and 19, clause (a)(3); and 469.176, subdivisions 1,
paragraph (d), 4b, 4e, 6, and 7, do not apply to this district
and subdistrict. Nothing in this section affects the liability
of persons for costs or damages associated with the release of
hazardous substances, the city's right to pursue responsible
parties or reimbursement under applicable insurance contracts,
or the city's liability under Minnesota Statutes, section
115B.04, subdivision 4. The powers granted are in addition to
other powers of the city.
Subd. 2. [QUALIFICATION RULES.] Before creating a district
or subdistrict under this section, the governing body of the
city of Minnetonka must find (i) that the response costs related
to the district and subdistrict and deposits to the
indemnification fund or premiums for the purchase of private
environmental insurance necessary to develop the site exceed the
estimated fair market value of the land in the district and
subdistrict after completion of all necessary response
activities and provision of indemnification under the plan and
(ii) that independent of the environmental response costs, that
the cost of correcting the unusual terrain and soil conditions
materially impairs the ability of the owner to develop, sell, or
finance all or any significant portion of the district. This
finding is in addition to the findings required under Minnesota
Statutes, section 469.174, subdivision 19, paragraph (a),
clauses (1) and (2), in the case of the district, and the
findings required under Minnesota Statutes, section 469.174,
subdivision 7, in the case of the subdistrict.
Subd. 3. [LIMITS ON SPENDING INCREMENTS; POOLING
RULES.] (a) The provisions of Minnesota Statutes, section
469.1763, do not apply to the district and a subdistrict created
under this section. Revenues derived from tax increments from
the district and subdistrict may be spent only on:
(1) response costs related to the area contained in the
district and subdistrict including the activities outside of the
subdistrict or the district but within the project, to the
extent necessary to prevent contaminants moving to or from the
contaminated parcels;
(2) deposits to an indemnification fund or the purchase of
environmental insurance, relating only to liability or
additional response costs for contaminated parcels located in
the district;
(3) the costs of correcting the unusual terrain or soil
deficiencies and the additional costs of installing public
improvements directly caused by the deficiencies (except
increments derived from reducing original tax capacity under
Minnesota Statutes, section 469.174, subdivision 7, paragraph
(b), may not be used for this purpose); and
(4) administrative expenses and costs permitted under
Minnesota Statutes, section 469.176, subdivisions 3 and 4h,
including costs of review and approval of development response
actions plans by the commissioner of the pollution control
agency and litigation expenses of the attorney general, if any.
(b) After sufficient revenues derived from tax increments
have been received to pay all remediation costs, deposits to an
indemnification fund or insurance premiums, and administrative
and other qualifying costs, the district and subdistrict must be
decertified. Minnesota Statutes, section 469.176, subdivision
1, paragraphs (e) and (g), apply to the district and
subdistrict, except to the extent limited by this section.
Subd. 4. [DEFINITION.] For purposes of this section,
"response" means activity constituting "respond" or "response"
as those terms are defined in Minnesota Statutes, section
115B.02. Response costs include activities, including
installation of public infrastructure, necessary to respond.
Subd. 5. [STATE AID REDUCTION.] (a) The state aid
reductions under Minnesota Statutes, section 273.1399, do not
apply to the district or a subdistrict established under this
section, if the city elects to pay and pays 25 percent of the
response costs and deposits to the indemnification fund out of
its general fund, a property tax levy for that purpose, or other
unrestricted city money (other than tax increments). The city
must elect this option at the time of certification of the
district and must notify the commissioner of revenue of its
election. The election is irrevocable.
(b) If the city does not elect to pay for a portion of the
cost as provided by paragraph (a), the state aid reductions
under Minnesota Statutes, section 273.1399, apply. The
qualified captured net tax capacity of the district or
subdistrict or both must be calculated under Minnesota Statutes
1992, section 273.1399, subdivision 1, paragraph (a), clause (3)
under the "All Other Districts" column.
Sec. 21. [CITY OF HOPKINS; HAZARDOUS SUBSTANCE
SUBDISTRICT.]
Subdivision 1. [AUTHORIZATION.] Pursuant to Minnesota
Statutes, section 469.175, subdivision 7, the city of Hopkins or
its housing and redevelopment authority may create one or more
hazardous substance subdistricts within tax increment financing
district No. 2-5, or within any new or existing tax increment
financing district encompassing any parcels located within
township 117N, range 22W, sections 25 and 26 in the area bounded
on the north by CSAH No. 3; on the south by the Hennepin County
Regional Railroad Authority right-of-way; on the west by the
city of Hopkins/city of Minnetonka boundary; and on the east by
the existing parcel occupied by the city of Hopkins Well No. 1
Building. The city or its housing and redevelopment authority
may issue bonds or other obligations payable in whole or in part
from increment derived from the subdistrict or district upon a
finding by city resolution that establishment of the subdistrict
will facilitate environmental remediation and further the
objectives of the tax increment financing plan for the
district. The request for certification of the subdistrict must
be filed with the county auditor before December 1, 1995. The
city may defer receipt of the first increment from a subdistrict
for up to three years following certification. Minnesota
Statutes, sections 469.174, subdivisions 7, paragraph (c), and
16; and 469.176, subdivisions 1, paragraphs (d) and (g), 4e, 6,
and 7, do not apply to the subdistrict.
Subd. 2. [PRESERVATION OF RIGHTS.] Nothing in this section
affects the liability of persons for costs or damages associated
with the release of hazardous substances, or the city's right to
pursue responsible parties or to secure reimbursement under
applicable insurance contracts, or the city's liability under
Minnesota Statutes, section 115B.04, subdivision 4. The powers
granted are in addition to other powers of the city.
Subd. 3. [QUALIFICATION RULES.] Before creation of a
subdistrict under subdivision 1, the city of Hopkins shall
determine that the existence of pollution or contamination of
parcels within the subdistrict materially impairs the ability of
the owners of the parcels to develop, sell, lease, or finance
all or any portion of the parcels. For purposes of determining
the original net tax capacity of the subdistrict under Minnesota
Statutes, section 469.174, subdivision 7, paragraph (b), the
requirement that the authority enter into a redevelopment or
other agreement or have in place a response action plan before
reduction of the original tax capacity does not apply. The
amount of the estimated costs of the removal or remedial actions
may be based on reasonable estimates prepared for the city.
In addition, the city shall, following review by the
pollution control agency, prepare and adopt a report which
delineates the maximum amount of money to be reserved for
eligible expenditures.
Subd. 4. [ELIGIBLE EXPENDITURES.] Revenue derived from tax
increments from the subdistrict may be spent only on:
(1) costs of investigating and remediating the pollution or
contamination in the area contained in the subdistrict,
including activities outside of the subdistrict to the extent
necessary to prevent pollutants or contaminants moving to or
from the subdistrict;
(2) deposits to an indemnification fund to be used to
indemnify existing or future owners, purchasers, lessees, or
mortgagees of any parcel in the subdistrict against
environmental liability and costs associated with the
investigation and remediation of pollution or contamination in
the subdistrict, or the purchase of environmental insurance
relating only to liability or remediation costs for parcels
located in the subdistrict;
(3) administrative expenses and costs, including those
permitted under Minnesota Statutes, section 469.176, subdivision
4h, and costs of preparation, review, and approval of any
response action plan or partial response action plan by the
pollution control agency; and
(4) costs of actions, including litigation, to recover
investigation and remediation costs incident to the subdistrict
from responsible persons.
Subd. 5. [DECERTIFICATION.] After sufficient revenues
derived from tax increments have been received to pay all
investigation and remediation costs, deposits to an
indemnification fund, insurance premiums, and administrative and
other qualifying costs, and in all events not more than 20 years
from the date of receipt by the city of the first tax increment
from the subdistrict, the subdistrict must be decertified.
Subd. 6. [REDISTRIBUTION.] When the city has received
sufficient tax increment funds to pay all eligible expenditures,
any funds received must be applied by the city in the manner of
excess tax increments under Minnesota Statutes, section 469.176,
subdivision 2, and the Hennepin county auditor shall increase
the original net tax capacity of the parcels in the subdistrict
to the original net tax capacity that would prevail had no
reduction been made.
Subd. 7. [DEFINITIONS.] For purposes of this section,
"remediation" means activity constituting removal, remedy,
remedial action, or response as those terms are defined in
Minnesota Statutes, section 115B.02, including activities to
develop and implement a response action plan approved by the
pollution control agency under Minnesota Statutes, section
115B.17, subdivision 14, or a partial response action plan
approved by the pollution control agency under Minnesota
Statutes, section 115B.175. Remediation costs include
activities necessary to accomplish remediation, including
installation of public infrastructure.
Subd. 8. [STATE AID REDUCTION.] The state aid reductions
under Minnesota Statutes, section 273.1399, do not apply to a
subdistrict established under this section, if the city elects
to pay and pays 25 percent of the response costs and deposits to
the indemnification fund out of its general fund, a property tax
levy for that purpose, or other unrestricted city money (other
than tax increments). The city must elect this option at the
time of certification of the district and must notify the
commissioner of revenue of its election. The election is
irrevocable.
Sec. 22. [INVER GROVE HEIGHTS.]
Subdivision 1. [EXTENSION OF TAX INCREMENT FINANCING
DISTRICT.] Tax increment financing district No. 3-2, established
by the city of Inver Grove Heights on April 30, 1992, under Laws
1990, chapter 604, article 7, section 30, subdivision 2,
continues in effect until the earlier of (1) May 1, 2004, or (2)
when all costs provided for in the tax increment financing plan
relating to the district have been paid. In no event may the
city receive more than eight years of tax increments for the
district and all tax increments received after May 1, 2002, in
excess of the amount of local government aid lost by the city
under Minnesota Statutes, section 273.1399, as a result of such
tax increments, shall be used only to pay or reimburse capital
costs of public road and bridge improvements.
Subd. 2. [BOND AUTHORIZATION.] If the city of Inver Grove
Heights, the Minnesota department of transportation, and Dakota
county agree to the planning, design, construction, and
reconstruction of state, county, and city highway, street, and
bridge improvements that serve, among other areas, the area of
tax increment financing district No. 3-2, the city council may,
by resolution, authorize, sell, and issue general obligation
bonds of the city in a principal amount not to exceed $4,000,000
to finance part of the cost of the improvements to be paid for
by the state under the agreement. The city shall issue the
bonds only if and to the extent it estimates they are necessary
to pay costs of the improvements coming due for which state
funds are not immediately available but will be received by the
city under the agreement. The city shall pledge the state money
to the payment of the bonds and after it receives the money
shall pay the bonds as soon as practicable. The bonds shall be
issued and secured under Minnesota Statutes, chapter 475, except
no election is required to authorize their issuance.
Sec. 23. [CITY OF MANKATO; DURATION OF TAX INCREMENT
FINANCING DISTRICT.]
Notwithstanding Minnesota Statutes, section 469.176,
subdivision 1, the duration of the key city redevelopment
project tax increment financing district, district AA1, located
within the city of Mankato, may be extended by the authority to
August 1, 2009. Any increment received during the period of
extended duration may only be utilized for payment of or to
secure payment of debt service on bonds issued after April 1,
1993, and before January 1, 1994, or bonds issued to refund
those bonds.
Sec. 24. [EFFECTIVE DATE.]
Sections 1, 4, 9, 11, 13, 15, and 16 are effective for
districts and subdistricts for which requests for certification
are made after August 1, 1993.
Section 2 is effective for applications filed after the day
of final enactment.
Sections 6, 7, 8, and 10, subdivision 1b, clauses (4) and
(5), 12, and 14 are effective for districts for which the
request for certification is made after May 31, 1993.
Section 10, except subdivision 1b, clauses (4) and (5), is
effective for districts for which the requests for certification
were made after July 31, 1979.
Sections 17 and 18 are effective July 1, 1993, and apply to
all districts, regardless of when the request for certification
was made, including districts for which the request for
certification was made before August 1, 1979. Section 18
applies only to modifications of assessment agreements made
after August 1, 1993.
Section 19 is effective upon compliance by the city of
Minneapolis with Minnesota Statutes, section 645.021,
subdivision 3.
Section 20 is effective upon compliance by the city of
Minnetonka with Minnesota Statutes, section 645.021, subdivision
3.
Section 21 is effective upon compliance by the city of
Hopkins with Minnesota Statutes, section 645.021, subdivision 3.
Section 22 is effective the day following final enactment
without the approval of any local government.
Section 23 is effective upon compliance by the city of
Mankato with Minnesota Statutes, section 645.021, subdivision 3.
ARTICLE 15
LOCAL GOVERNMENT EFFICIENCY AND COOPERATION
Section 1. [465.795] [DEFINITIONS.]
Subdivision 1. [AGENCY.] "Agency" means a department,
agency, board, or other instrumentality of state government that
has jurisdiction over an administrative rule or law from which a
waiver is sought under section 3. If no specific agency has
jurisdiction over such a law, "agency" refers to the attorney
general.
Subd. 2. [BOARD.] "Board" means the board of government
innovation and cooperation established by section 2.
Subd. 3. [COUNCIL.] "Council" or "metropolitan council"
means the metropolitan council established by section 473.123.
Subd. 4. [LOCAL GOVERNMENT UNIT.] "Local government unit"
means a county, home rule charter or statutory city, school
district, town, or special taxing district, except for purposes
of sections 465.81 to 465.87.
Subd. 5. [METROPOLITAN AGENCY.] "Metropolitan agency" has
the meaning given in section 473.121, subdivision 5a.
Subd. 6. [METROPOLITAN AREA.] "Metropolitan area" has the
meaning given in section 473.121, subdivision 2.
Subd. 7. [SCOPE.] As used in sections 1 to 5 and sections
465.80 to 465.87, the terms defined in this section have the
meanings given them.
Sec. 2. [465.796] [BOARD OF GOVERNMENT INNOVATION AND
COOPERATION.]
Subdivision 1. [MEMBERSHIP.] The board of government
innovation and cooperation consists of three members of the
senate appointed by the subcommittee on committees of the senate
committee on rules and administration, three members of the
house of representatives appointed by the speaker of the house,
two administrative law judges appointed by the chief
administrative law judge, the commissioner of finance, the
commissioner of administration, and the state auditor. The
commissioners of finance and administration and the state
auditor may each designate one staff member to serve in the
commissioner's or auditor's place. The members of the senate
and house of representatives serve as nonvoting members.
Subd. 2. [DUTIES OF BOARD.] The board shall:
(1) accept applications from local government units for
waivers of administrative rules and temporary, limited
exemptions from enforcement of procedural requirements in state
law as provided in section 3, and determine whether to approve,
modify, or reject the application;
(2) accept applications for grants to local government
units and related organizations proposing to design models or
plans for innovative service delivery and management as provided
in section 4 and determine whether to approve, modify, or reject
the application;
(3) accept applications from local government units for
financial assistance to enable them to plan for cooperative
efforts as provided in section 5, and determine whether to
approve, modify, or reject the application;
(4) accept applications from eligible local government
units for service-sharing grants as provided in section 465.80,
and determine whether to approve, modify, or reject the
application;
(5) accept applications from counties, cities, and towns
proposing to combine under sections 465.81 to 465.87, and
determine whether to approve or disapprove the application; and
(6) make recommendations to the legislature regarding the
elimination of state mandates that inhibit local government
efficiency, innovation, and cooperation.
The board may purchase services from the metropolitan council in
reviewing requests for waivers and grant applications.
Subd. 3. [STAFF.] The board may hire staff or consultants
as necessary to perform its duties.
Sec. 3. [465.797] [RULE AND LAW WAIVER REQUESTS.]
Subdivision 1. [GENERALLY.] (a) Except as provided in
paragraph (b), a local government unit may request the board of
government innovation and cooperation to grant a waiver from one
or more administrative rules or a temporary, limited exemption
from enforcement of state procedural laws governing delivery of
services by the local government unit. Two or more local
government units may submit a joint application for a waiver or
exemption under this section if they propose to cooperate in
providing a service or program that is subject to the rule or
law. Before submitting an application to the board, the
governing body of the local government unit must approve the
waiver or exemption request by resolution at a meeting required
to be public under section 471.705.
(b) A school district that is granted a variance from rules
of the state board of education under section 121.11,
subdivision 12, need not apply to the board for a waiver of
those rules under this section. A school district may not seek
a waiver of rules under this section if the state board of
education has authority to grant a variance to the rules under
section 121.11, subdivision 12. This paragraph does not
preclude a school district from being included in a cooperative
effort with another local government unit under this section.
Subd. 2. [APPLICATION.] A local government unit requesting
a waiver of a rule or exemption from enforcement of a law under
this section shall present a written application to the board.
The application must include:
(1) identification of the service or program at issue;
(2) identification of the administrative rule or the law
imposing a procedural requirement with respect to which the
waiver or exemption is sought;
(3) a description of the improved service outcome sought,
including an explanation of the effect of the waiver or
exemption in accomplishing that outcome;
(4) a description of the means by which the attainment of
the outcome will be measured; and
(5) if the waiver or exemption is proposed by a single
local government unit, a description of the consideration given
to intergovernmental cooperation in providing this service, and
an explanation of why the local government unit has elected to
proceed independently.
A copy of the application must be provided by the
requesting local government unit to the exclusive representative
of its employees as certified under section 179A.12.
Subd. 3. [REVIEW PROCESS.] Upon receipt of an application
from a local government unit, the board shall review the
application. The board shall dismiss or request modification of
an application within 60 days of its receipt if it finds that
(1) the application does not meet the requirements of
subdivision 2, or (2) the application should not be granted
because it clearly proposes a waiver of rules or exemption from
enforcement of laws that would result in due process violations,
violations of federal law or the state or federal constitution,
or the loss of services to people who are entitled to them. If
the application is submitted by a local government unit in the
metropolitan area or the unit requests a waiver of a rule or
temporary, limited exemptions from enforcement of a procedural
law over which the metropolitan council or a metropolitan agency
has jurisdiction, the board shall also transmit a copy of the
application to the council for review and comment. The council
shall report its comments to the board within 60 days of the
date the application was transmitted to the council. The
council may point out any resources or technical assistance it
may be able to provide a local government submitting a request
under this section. If it does not dismiss the application, the
board shall transmit a copy of it to the commissioner of each
agency having jurisdiction over a rule or law from which a
waiver or exemption is sought. The agency may mail a notice
that it has received an application for a waiver or exemption to
all persons who have registered with the agency under section
14.14, subdivision 1a, identifying the rule or law from which a
waiver or exemption is requested. If no agency has jurisdiction
over the rule or law, the board shall transmit a copy of the
application to the attorney general. If the commissioner of
finance, the commissioner of administration, or the state
auditor has jurisdiction over the rule or law, the chief
administrative law judge shall appoint a second administrative
law judge to serve as a member of the board in the place of that
official for purposes of determining whether to grant the waiver
or exemption. The agency shall inform the board of its
agreement with or objection to and grounds for objection to the
waiver or exemption request within 60 days of the date when the
application was transmitted to it. Interested persons may
submit written comments to the board on the waiver or exemption
request within 60 days of the board's receipt of the
application. If the agency fails to inform the board of its
conclusion with respect to the application within 60 days of its
receipt, the agency is deemed to have agreed to the waiver or
exemption. If the exclusive representative of the employees of
the requesting local government unit objects to the waiver or
exemption request it may inform the board of the objection to
and the grounds for the objection to the waiver or exemption
request within 60 days of the receipt of the application.
Subd. 4. [HEARING.] If the agency or the exclusive
representative does not agree with the waiver or exemption
request, the board shall set a date for a hearing on the
application, which may be no earlier than 90 days after the date
when the application was transmitted to the agency. The hearing
must be conducted informally at a meeting of the board. Persons
representing the local government unit shall present their case
for the waiver or exemption, and persons representing the agency
shall explain the agency's objection to it. Members of the
board may request additional information from either party. The
board may also request, either before or at the hearing,
information or comments from representatives of business, labor,
local governments, state agencies, consultants, and members of
the public. If necessary, the hearing may be continued at a
subsequent board meeting. A waiver or exemption must be granted
by a vote of a majority of the board members. The board may
modify the terms of the waiver or exemption request in arriving
at the agreement required under subdivision 5.
Subd. 5. [CONDITIONS OF AGREEMENTS.] If the board grants a
request for a waiver or exemption, the board and the local
government unit shall enter into an agreement providing for the
delivery of the service or program that is the subject of the
application. The agreement must specify desired outcomes and
the means of measurement by which the board will determine
whether the outcomes specified in the agreement have been met.
The agreement must specify the duration of the waiver or
exemption, which may be for no less than two years and no more
than four years, subject to renewal if both parties agree. A
waiver of a rule under this section has the effect of a variance
granted by an agency under section 14.05, subdivision 4. A
local unit of government that is granted an exemption from
enforcement of a procedural requirement in state law under this
section is exempt from that law for the duration of the
exemption. The board may require periodic reports from the
local government unit, or conduct investigations of the service
or program.
Subd. 6. [ENFORCEMENT.] If the board finds that the local
government unit is failing to comply with the terms of the
agreement under subdivision 5, it may rescind the agreement.
Upon the recision, the local unit of government becomes subject
to the rules and laws covered by the agreement.
Subd. 7. [ACCESS TO DATA.] If a local government unit,
through a cooperative program under this section, gains access
to data collected, created, received, or maintained by another
local government that is classified as not public, the unit
gaining access is governed by the same restrictions on access to
and use of the data as the unit that collected, created,
received, or maintained the data.
Sec. 4. [465.798] [SERVICE BUDGET MANAGEMENT MODEL
GRANTS.]
One or more local units of governments, an association of
local governments, the metropolitan council, or an organization
acting in conjunction with a local unit of government may apply
to the board of government innovation and management for a grant
to be used to develop models for innovative service budget
management. Proposed models may provide options to local
governments, neighborhood or community organizations, or
individuals for managing budgets for service delivery. A copy
of the work product for which the grant was provided must be
furnished to the board upon completion, and the board may
disseminate it to other local units of government or interested
groups. If the board finds that the model was not completed or
implemented according to the terms of the grant agreement, it
may require the grantee to repay all or a portion of the grant.
The amount of a grant under this section shall not exceed
$50,000.
Sec. 5. [465.799] [COOPERATION PLANNING GRANTS.]
Two or more local government units may apply to the board
of government innovation and cooperation for a grant to be used
to develop a plan for intergovernmental cooperation in providing
services. The grant application must include the following
information:
(1) the identity of the local government units proposing to
enter into the planning process;
(2) a description of the services to be studied and the
outcomes sought from the cooperative venture; and
(3) a description of the proposed planning process,
including an estimate of its costs, identification of the
individuals or entities who will participate in the planning
process, and an explanation of the need for a grant to the
extent that the cost cannot be paid out of the existing
resources of the local government unit.
The plan may include model contracts or agreements to be
used to implement the plan. A copy of the work product for
which the grant was provided must be furnished to the board upon
completion. If the board finds that the grantee has failed to
implement the plan, it may require the grantee to repay all or a
portion of the grant. The amount of a grant under this section
shall not exceed $50,000.
Sec. 6. Minnesota Statutes 1992, section 465.80,
subdivision 1, is amended to read:
Subdivision 1. [SCOPE.] This section establishes a program
for grants to cities, counties, and towns local government units
to enable them to meet the start-up costs of providing shared
services or functions.
Sec. 7. Minnesota Statutes 1992, section 465.80,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY.] Any home rule charter or statutory
city, county, or town local government unit that provides a plan
for offering a governmental service under a joint powers
agreement with another city, county, or town local government
unit, or with an agency of state government, is eligible for a
grant under this section, and is referred to in this section as
an "eligible local government unit."
Sec. 8. Minnesota Statutes 1992, section 465.80,
subdivision 4, is amended to read:
Subd. 4. [SUBMISSION OF PLAN TO DEPARTMENT BOARD.] The
plan must be submitted to the department of trade and economic
development board of government innovation and cooperation. A
copy of the plan must also be provided by the requesting local
government units to the exclusive representatives of the
employees as certified under section 179A.12. The commissioner
of trade and economic development board will approve a plan only
if it contains the elements set forth in subdivision 3, with
sufficient information to verify the assertions under clauses
(2) and (3). The commissioner board may request modifications
of a plan. If the commissioner board rejects a plan, written
reasons for the rejection must be provided, and a governmental
unit may modify the plan and resubmit it.
Sec. 9. Minnesota Statutes 1992, section 465.80,
subdivision 5, is amended to read:
Subd. 5. [GRANTS.] The amount of each grant shall be equal
to the additional start-up costs for which evidence is presented
under subdivision 3, clause (3). Only one grant will be given
to a local government unit for any function or service it
proposes to combine with another government unit, but a unit may
apply for separate grants for different services or functions it
proposes to combine. If the amount of money available for
making the grants is not sufficient to fully fund the grants to
eligible local government units with approved plans,
the commissioner board shall award grants on the basis of each
qualified applicant's score under a scoring system to be devised
by the commissioner board to measure the relative needs for the
grants and the ratio of costs to benefits for each proposal.
Sec. 10. Minnesota Statutes 1992, section 465.81,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] As used in sections 465.81 to
465.87, the words defined in this subdivision have the meanings
given them in this subdivision.
"Board" means the board of government innovation and
cooperation.
"City" means home rule charter or statutory cities.
"Commissioner" means the commissioner of trade and economic
development.
"Department" means the department of trade and economic
development.
"Governing body" means, in the case of a county, the county
board; in the case of a city, the city council; and, in the case
of a town, the town board.
"Local government unit" or "unit" includes counties,
cities, and towns.
Sec. 11. Minnesota Statutes 1992, section 465.82,
subdivision 1, is amended to read:
Subdivision 1. [ADOPTION AND STATE AGENCY REVIEW.] Each
governing body that proposes to combine under sections 465.81 to
465.87 must adopt by resolution a plan for cooperation and
combination. The plan must address each item in this section.
The plan must be specific for any item that will occur within
three years and may be general or set forth alternative
proposals for an item that will occur more than three years in
the future. The plan must be submitted to the department of
trade and economic development board of government innovation
and cooperation for review and comment. For a metropolitan area
local government unit, the plan must also be submitted to the
metropolitan council for review and comment. The council may
point out any resources or technical assistance it may be able
to provide a governing body submitting a plan under this
subdivision. Significant modifications and specific resolutions
of items must be submitted to the department board and council,
if appropriate, for review and comment. In the official
newspaper of each local government unit proposed for
combination, the governing body must publish at least a summary
of the adopted plans, each significant modification and
resolution of items, and the results of each department board
and council, if appropriate, review and comment.
Sec. 12. Minnesota Statutes 1992, section 465.83, is
amended to read:
465.83 [STATE AGENCY APPROVAL.]
Before scheduling a referendum on the question of combining
local government units under section 465.84, the units shall
submit the plan adopted under section 465.82 to the commissioner
board. Metropolitan area units shall also submit the plan to
the metropolitan council for review and comment. The
commissioner board may require any information it deems
necessary to evaluate the plan. The commissioner board shall
disapprove the proposed combination if the commissioner it finds
that the plan is not reasonably likely to enable the combined
unit to provide services in a more efficient or less costly
manner than the separate units would provide them, or if the
plans or plan modification are incomplete. If the combination
of local government units is approved by the board under this
section, the local units are not required to proceed under
chapter 414 to accomplish the combination.
Sec. 13. Minnesota Statutes 1992, section 465.87,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] A local government unit is
eligible for aid under this section if the commissioner board
has approved its plan to cooperate and combine under section
465.83.
Sec. 14. Minnesota Statutes 1992, section 465.87, is
amended by adding a subdivision to read:
Subd. 1a. [ADDITIONAL ELIGIBILITY.] A local government
unit is eligible for aid under this section if it has combined
with another unit of government in accordance with chapter 414
and a copy of the municipal board's order combining the two
units of government is forwarded to the board.
Sec. 15. [APPROPRIATION.]
$1,200,000 is appropriated from the local government trust
fund to the board of government innovation and cooperation for
the purpose of making grants under this article, including
grants made under Minnesota Statutes, section 465.80, and aid
paid under Minnesota Statutes, section 465.87.
ARTICLE 16
TACONITE TAX
Section 1. Minnesota Statutes 1992, section 298.227, is
amended to read:
298.227 [TACONITE ECONOMIC DEVELOPMENT FUND.]
An amount equal to 10.4 cents per taxable ton that
distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28,
subdivision 9a, for production years 1992 and 1993 shall be held
by the iron range resources and rehabilitation board in a
separate taconite economic development fund for each taconite
producer. Money from the fund for each producer shall be
released only on the written authorization of a joint committee
consisting of an equal number of representatives of the salaried
employees and the nonsalaried production and maintenance
employees of that producer. The district 33 director of the
United States Steelworkers of America, on advice of each local
employee president, shall select the employee members. In
nonorganized operations, the employee committee shall be elected
by the nonsalaried production and maintenance employees. Each
producer's joint committee may authorize release of the funds
held pursuant to this section only for acquisition of equipment
and facilities for the producer or for research and development
in Minnesota on new mining, or taconite, iron, or steel
production technology. Funds may be released only upon a
majority vote of the representatives of the committee. Any
portion of the fund which is not released by a joint committee
within two years of its deposit in the fund shall be divided
between the taconite environmental protection fund created in
section 298.223 and the northeast Minnesota economic protection
trust fund created in section 298.292 for placement in their
respective special accounts. Two-thirds of the unreleased funds
shall be distributed to the taconite environmental protection
fund and one-third to the northeast Minnesota economic
protection trust fund. This section is effective for taxes
payable in 1993 and 1994.
Sec. 2. Minnesota Statutes 1992, section 298.28,
subdivision 4, is amended to read:
Subd. 4. [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable
ton plus the increase provided in paragraph (d) must be
allocated to qualifying school districts to be distributed,
based upon the certification of the commissioner of revenue,
under paragraphs (b) and (c).
(b) 5.5 cents per taxable ton must be distributed to the
school districts in which the lands from which taconite was
mined or quarried were located or within which the concentrate
was produced. The distribution must be based on the
apportionment formula prescribed in subdivision 2.
(c)(i) 22 cents per taxable ton, less any amount
distributed under paragraph (e), shall be distributed to a group
of school districts comprised of those school districts in which
the taconite was mined or quarried or the concentrate produced
or in which there is a qualifying municipality as defined by
section 273.134 in direct proportion to school district indexes
as follows: for each school district, its pupil units
determined under section 124.17 for the prior school year shall
be multiplied by the ratio of the average adjusted net tax
capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapter 124A for the
school year ending prior to distribution to the adjusted net tax
capacity per pupil unit of the district. Each district shall
receive that portion of the distribution which its index bears
to the sum of the indices for all school districts that receive
the distributions.
(ii) Notwithstanding clause (i), each school district that
receives a distribution under sections 298.018; 298.23 to
298.28, exclusive of any amount received under this clause;
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law
imposing a tax on severed mineral values that is less than the
amount of its levy reduction under section 124.918, subdivision
8, for the second year prior to the year of the distribution
shall receive a distribution equal to the difference; the amount
necessary to make this payment shall be derived from
proportionate reductions in the initial distribution to other
school districts under clause (i).
(d) On July 15, in years prior to 1988, an amount equal to
the increase derived by increasing the amount determined by
paragraph (c) in the same proportion as the increase in the
steel mill products index over the base year of 1977 as provided
in section 298.24, subdivision 1, clause (a), shall be
distributed to any school district described in paragraph (c)
where a levy increase pursuant to section 124A.03, subdivision
2, is authorized by referendum, according to the following
formula. On July 15, 1988, the increase over the amount
established for 1987 shall be determined as if there had been an
increase in the tax rate under section 298.24, subdivision 1,
paragraph (b), according to the increase in the implicit price
deflator. On July 15, 1989, 1990, and 1991, the increase over
the amount established for the prior year shall be determined
according to the increase in the implicit price deflator as
provided in section 298.24, subdivision 1, paragraph (a). In
1992 and 1993, the amount distributed per ton shall be the same
as that determined for distribution in 1991. In 1994, the
amount distributed per ton shall be equal to the amount per ton
distributed in 1991 increased in the same proportion as the
increase between the fourth quarter of 1988 1989 and the fourth
quarter of 1992 in the implicit price deflator as defined in
section 298.24, subdivision 1. On July 15, 1995, and subsequent
years, the increase over the amount established for the prior
year shall be determined according to the increase in the
implicit price deflator as provided in section 298.24,
subdivision 1. Each district shall receive the product of:
(i) $175 times the pupil units identified in section
124.17, subdivision 1, enrolled in the second previous year or
the 1983-1984 school year, whichever is greater, less the
product of 1.8 percent times the district's taxable net tax
capacity in the second previous year; times
(ii) the lesser of:
(A) one, or
(B) the ratio of the sum of the amount certified pursuant
to section 124A.03, subdivision 1g, in the previous year, plus
the amount certified pursuant to section 124A.03, subdivision
1i, in the previous year, plus the referendum aid according to
section 124A.03, subdivision 1h, for the current year, to the
product of 1.8 percent times the district's taxable net tax
capacity in the second previous year.
If the total amount provided by paragraph (d) is
insufficient to make the payments herein required then the
entitlement of $175 per pupil unit shall be reduced uniformly so
as not to exceed the funds available. Any amounts received by a
qualifying school district in any fiscal year pursuant to
paragraph (d) shall not be applied to reduce general education
aid which the district receives pursuant to section 124A.23 or
the permissible levies of the district. Any amount remaining
after the payments provided in this paragraph shall be paid to
the commissioner of iron range resources and rehabilitation who
shall deposit the same in the taconite environmental protection
fund and the northeast Minnesota economic protection trust fund
as provided in subdivision 11.
Each district receiving money according to this paragraph
shall reserve $25 times the number of pupil units in the
district. It may use the money for early childhood programs or
for outcome-based learning programs that enhance the academic
quality of the district's curriculum. The outcome-based
learning programs must be approved by the commissioner of
education.
(e) There shall be distributed to any school district the
amount which the school district was entitled to receive under
section 298.32 in 1975.
Sec. 3. Minnesota Statutes 1992, section 298.28,
subdivision 7, is amended to read:
Subd. 7. [IRON RANGE RESOURCES AND REHABILITATION BOARD.]
Three cents per taxable ton shall be paid to the iron range
resources and rehabilitation board for the purposes of section
298.22. The amount determined in this subdivision shall be
increased in 1981 and subsequent years prior to 1988 in the same
proportion as the increase in the steel mill products index as
provided in section 298.24, subdivision 1, and shall be
increased in 1989, 1990, and 1991 according to the increase in
the implicit price deflator as provided in section 298.24,
subdivision 1. In 1992 and 1993, the amount distributed per ton
shall be the same as the amount distributed per ton in 1991. In
1994, the amount distributed shall be the distribution per ton
for 1991 increased in the same proportion as the increase
between the fourth quarter of 1988 1989 and the fourth quarter
of 1992 in the implicit price deflator as defined in section
298.24, subdivision 1. That amount shall be increased in 1995
and subsequent years in the same proportion as the increase in
the implicit price deflator as provided in section 298.24,
subdivision 1. The amount distributed in 1988 shall be
increased according to the increase that would have occurred in
the rate of tax under section 298.24 if the rate had been
adjusted according to the implicit price deflator for 1987
production. The amount distributed pursuant to this subdivision
shall be expended within or for the benefit of a tax relief area
defined in section 273.134. No part of the fund provided in
this subdivision may be used to provide loans for the operation
of private business unless the loan is approved by the governor
and the legislative advisory commission.
Sec. 4. Minnesota Statutes 1992, section 298.28,
subdivision 9a, is amended to read:
Subd. 9a. [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 10.4
cents per ton for distributions in 1993 and 15.4 cents per ton
for distributions in 1994 shall be paid to the taconite economic
development fund. No distribution shall be made under
this subdivision paragraph in any year in which total industry
production falls below 30 million tons.
(b) An amount equal to 50 percent of the tax under section
298.24 for concentrate sold in the form of pellet chips and
fines not exceeding 1/4 inch in size and not including crushed
pellets shall be paid to the taconite economic development
fund. The amount paid shall not exceed $700,000 annually for
all companies. If the initial amount to be paid to the fund
exceeds this amount, each company's payment shall be prorated so
the total does not exceed $700,000.
Sec. 5. Minnesota Statutes 1992, section 298.28,
subdivision 10, is amended to read:
Subd. 10. [INCREASE.] The amounts determined under
subdivisions 6, paragraph (a), and 9 shall be increased in 1979
and subsequent years prior to 1988 in the same proportion as the
increase in the steel mill products index as provided in section
298.24, subdivision 1. The amount distributed in 1988 shall be
increased according to the increase that would have occurred in
the rate of tax under section 298.24 if the rate had been
adjusted according to the implicit price deflator for 1987
production. Those amounts shall be increased in 1989, 1990, and
1991 in the same proportion as the increase in the implicit
price deflator as provided in section 298.24, subdivision 1. In
1992 and 1993, the amounts determined under subdivisions 6,
paragraph (a), and 9, shall be the distribution per ton
determined for distribution in 1991. In 1994, the amounts
determined under subdivisions 6, paragraph (a), and 9, shall be
the distribution per ton determined for distribution in 1991
increased in the same proportion as the increase between the
fourth quarter of 1988 1989 and the fourth quarter of 1992 in
the implicit price deflator as defined in section 298.24,
subdivision 1. Those amounts shall be increased in 1995 and
subsequent years in the same proportion as the increase in the
implicit price deflator as provided in section 298.24,
subdivision 1.
The distributions per ton determined under subdivisions 5,
paragraphs (b) and (d), and 6, paragraphs (b) and (c) for
distribution in 1988 and subsequent years shall be the
distribution per ton determined for distribution in 1987.
Sec. 6. [EFFECTIVE DATE.]
Section 4 is effective for production years beginning after
December 31, 1992.
ARTICLE 17
MISCELLANEOUS
Section 1. Minnesota Statutes 1992, section 16A.15,
subdivision 6, as amended by Laws 1993, chapter 192, section 60,
if enacted, is amended to read:
Subd. 6. [BUDGET RESERVE AND CASH FLOW ACCOUNT
ESTABLISHED.] (a) A budget reserve and cash flow account is
created in the general fund in the state treasury. The
commissioner of finance shall restrict part or all of the
balance before reserves in the general fund as may be necessary
to fund the budget reserve and cash flow account as provided by
law from time to time.
(b) The commissioner of finance shall transfer the amount
necessary to bring the total amount of the budget reserve and
cash flow account, including any existing balance in the account
on June 30, 1993, to $360,000,000. The amounts restricted shall
remain in the account until drawn down under subdivision 1 or
increased under section 16A.1541.
Sec. 2. Minnesota Statutes 1992, section 16A.1541, as
amended by Laws 1993, chapter 192, section 63, if enacted, 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 reserve and cash flow 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. Beginning
in November 1990 July 1, 1993, forecast unrestricted budgetary
general fund balances are first appropriated to restore the
budget reserve and cash flow account
to $550,000,000 $500,000,000 and then to reduce the property tax
levy recognition percent under section 121.904, subdivision 4a,
to 27 percent zero before money is allocated to the budget
reserve and cash flow account under the preceding sentence.
The amounts necessary to meet the requirements of this
section are appropriated from the general fund.
Sec. 3. Minnesota Statutes 1992, section 97A.061,
subdivision 2, is amended to read:
Subd. 2. [ALLOCATION.] (a) Except as provided in
subdivision 3, the county treasurer shall allocate the payment
among the county, towns, and school districts on the same basis
as if the payments were taxes on the land received in the year.
Payment of a town's or a school district's allocation must be
made by the county treasurer to the town or school district
within 30 days of receipt of the payment to the county. The
county's share of the payment shall be deposited in the county
general revenue fund.
(b) The county treasurer of a county with a population over
39,000 but less than 42,000 in the 1950 federal census shall
allocate the payment only among the towns and school districts
on the same basis as if the payments were taxes on the lands
received in the current year.
Sec. 4. Minnesota Statutes 1992, section 97A.061,
subdivision 3, is amended to read:
Subd. 3. [GOOSE MANAGEMENT CROPLANDS.] (a) The
commissioner shall make a payment on July 1 of each year from
the game and fish fund, to each county where the state owns more
than 1,000 acres of crop land, for wild goose management
purposes. The payment shall be equal to the taxes assessed on
comparable, privately owned, adjacent land. The county
treasurer shall allocate and distribute the payment as provided
in subdivision 2.
(b) The land used for goose management under this
subdivision is exempt from taxation as provided in sections
272.01 and 273.19.
Sec. 5. Minnesota Statutes 1992, section 243.23,
subdivision 3, is amended to read:
Subd. 3. [EXCEPTIONS.] Notwithstanding sections 241.26,
subdivision 5, and 243.24, subdivision 1, the commissioner may
promulgate rules for the disbursement of funds earned under
subdivision 1, or other funds in an inmate account, and section
243.88, subdivision 2, for the support of families and dependent
relatives of the respective inmates, for the payment of
court-ordered restitution, contribution to any programs
established by law to aid victims of crime provided that the
contribution shall not be more than 20 percent of an inmate's
gross wages, for the payment of restitution to the commissioner
ordered by prison disciplinary hearing officers for damage to
property caused by an inmate's conduct, and for the discharge of
any legal obligations arising out of litigation under this
subdivision. The commissioner may authorize the payment of
court-ordered restitution from an inmate's wages when the
restitution was ordered by the court as a sanction for the
conviction of an offense which is not the offense of commitment,
including offenses which occurred prior to the offense for which
the inmate was committed to the commissioner. An inmate of an
adult correctional facility under the control of the
commissioner is subject to actions for the enforcement of
support obligations and reimbursement of any public assistance
rendered the dependent family and relatives. The commissioner
may conditionally release an inmate who is a party to an action
under this subdivision and provide for the inmate's detention in
a local detention facility convenient to the place of the
hearing when the inmate is not engaged in preparation and
defense.
Sec. 6. Minnesota Statutes 1992, section 270.07,
subdivision 3, is amended to read:
Subd. 3. [ADDITIONAL POWERS OF COMMISSIONER.]
Notwithstanding any other provision of law the commissioner of
revenue may,
(a) based upon the administrative costs of processing,
determine minimum standards for the determination of additional
tax for which an order shall be issued, and
(b) based upon collection costs as compared to the amount
of tax involved, determine minimum standards of collection, and
(c) based upon the administrative costs of processing,
determine the minimum amount of refunds for which an order shall
be issued and refund made where no claim therefor has been
filed, and
(d) cancel any amounts below these minimum standards
determined under (a) and (b) hereof, and
(e) based upon the inability of a taxpayer to pay a
delinquent tax liability, abate the liability if the taxpayer
agrees to perform uncompensated public service work for a state
agency, a political subdivision or public corporation of this
state, or a nonprofit educational, medical, or social service
agency. The department of corrections shall administer the work
program. No benefits under chapter 176 or 268 shall be
available, but a claim authorized under section 3.739 may be
made by the taxpayer. The state may not enter into any
agreement that has the purpose of or results in the displacement
of public employees by a delinquent taxpayer under this
section. The state must certify to the appropriate bargaining
agent or employees, as applicable, that the work performed by a
delinquent taxpayer will not result in the displacement of
currently employed workers or layoff from a substantially
equivalent position, including partial displacement such as
reduction in hours of nonovertime work, wages, or other
employment benefits. The program authorized under this
paragraph terminates June 30, 1993 1998.
Sec. 7. Minnesota Statutes 1992, section 270.66, is
amended by adding a subdivision to read:
Subd. 4. [POLITICAL SUBDIVISION DEBTS.] (a) As used in
this subdivision, "political subdivision" means counties and
home rule charter or statutory cities, and "debts" means a legal
obligation to pay a fixed amount of money, which equals or
exceeds $100 and which is due and payable to the claimant
political subdivision.
(b) If one political subdivision owes a debt to another
political subdivision, and the debt has not been paid within six
months of the date when payment was due, the creditor political
subdivision may notify the commissioner of revenue of the debt,
and shall provide the commissioner with information sufficient
to verify the claim. If the commissioner has reason to believe
that the claim is valid, and the debt has not been paid, the
commissioner shall initiate setoff procedures under this
subdivision.
(c) Within ten days of receipt of the notification from the
creditor political subdivision, the commissioner shall send a
written notice to the debtor political subdivision, advising it
of the nature and amount of the claim. This written notice
shall advise the debtor of the creditor political subdivision's
intention to request setoff of the refund against the debt.
The notice will also advise the debtor that the debt can be
setoff against a state aid payment, and will advise the debtor
of the right to contest the validity of the claim at a hearing.
The debtor must assert this right by written request to the
commissioner of revenue, which request the commissioner must
receive within 45 days of the mailing date of the notice.
(d) If the commissioner receives written notice of a debtor
political subdivision's intention to contest at hearing the
claim upon which the intended setoff is based, the commissioner
shall initiate a hearing according to contested case procedures
established in the state administrative procedure act not later
than 30 days after receipt of the debtor's request for a
hearing. The costs of the hearing shall be paid equally by the
political subdivisions that are parties to the hearing. The
office of administrative hearings shall separately bill each
political subdivision for one-half of the costs.
(e) If the debtor political subdivision does not object to
the claim, or does not prevail in an objection to the claim or
at a hearing on the claim, the commissioner of revenue shall
deduct the amount of the debt from the next payment scheduled to
be made to the debtor under section 273.1398 or chapter 477A.
The commissioner shall remit the amount deducted to the claimant
political subdivision.
Sec. 8. Minnesota Statutes 1992, section 270A.03,
subdivision 7, is amended to read:
Subd. 7. [REFUND.] "Refund" means an individual income tax
refund or political contribution refund, pursuant to chapter
290, or a property tax credit or refund, pursuant to chapter
290A.
For purposes of this chapter, lottery prizes, as set forth
in section 349A.08, subdivision 8, shall be treated as refunds.
In the case of a joint property tax refund payable to
spouses under chapter 290A, the refund shall be considered as
belonging to each spouse in the proportion of the total refund
that equals each spouse's proportion of the total income
determined under section 290A.03, subdivision 3. The
commissioner shall remit the entire refund to the claimant
agency, which shall, upon the request of the spouse who does not
owe the debt, determine the amount of the refund belonging to
that spouse and refund the amount to that spouse.
Sec. 9. Minnesota Statutes 1992, section 270A.10, is
amended to read:
270A.10 [PRIORITY OF CLAIMS.]
If two or more debts, in a total amount exceeding the
debtor's refund, are submitted for setoff, the priority of
payment shall be as follows: First, any delinquent tax
obligations of the debtor which are owed to the department shall
be satisfied. Secondly, the refund shall be applied to debts
for child support based on the order in time in which the
commissioner received the debts. Thirdly, the refund shall be
applied to payment of restitution obligations. Fourthly, the
refund shall be applied to the remaining debts based on the
order in time in which the commissioner received the debts.
Sec. 10. Minnesota Statutes 1992, section 270B.01,
subdivision 8, is amended to read:
Subd. 8. [MINNESOTA TAX LAWS.] For purposes of this
chapter only, "Minnesota tax laws" means the taxes administered
by or paid to the commissioner under chapters 289A (except taxes
imposed under sections 298.01, 298.015, and 298.24), 290, 290A,
291, and 297A, and includes any laws for the assessment,
collection, and enforcement of those taxes.
Sec. 11. Minnesota Statutes 1992, section 270B.14,
subdivision 8, is amended to read:
Subd. 8. [EXCHANGE BETWEEN DEPARTMENTS OF LABOR AND
INDUSTRY AND REVENUE.] Notwithstanding any law to the contrary,
The departments of labor and industry and revenue may exchange
information on a reciprocal basis. Data that may be disclosed
are limited to data used in determining whether a business is an
employer or a contracting agent. as follows:
(1) data used in determining whether a business is an
employer or a contracting agent;
(2) taxpayer identity information relating to employers for
purposes of supporting tax administration and chapter 176; and
(3) data to the extent provided in and for the purpose set
out in section 176.181, subdivision 8.
Sec. 12. Minnesota Statutes 1992, section 319A.11,
subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] (a) A professional corporation
may issue its stock only to and admit as a member only natural
persons licensed to render a kind of professional service which
the corporation is authorized to render or partnerships or
professional corporations rendering the same kind of
professional service. A person, partnership or professional
corporation who becomes a shareholder or member of any such
corporation may transfer its shares of stock or its membership
only to a natural person, partnership or professional
corporation to whom the corporation could have issued the shares
of stock or membership. No proxy to vote any share in a
professional corporation or membership may be given to a person
who is not so licensed, nor may any voting trust be established
with respect to the shares of the professional corporation
unless all the voting trustees are natural persons so licensed.
(b) Notwithstanding paragraph (a), a professional
corporation may issue its stock under this section to an
employee stock ownership plan, as defined in section 4975(e)(7)
of the Internal Revenue Code of 1986, as amended, if
(1) the voting trustees of the plan are natural persons
licensed to render a kind of professional service which the
corporation is authorized to render, and
(2) the shares are not directly issued to a person or
entity not licensed to render a kind of advice which the
corporation is authorized to render.
Sec. 13. Minnesota Statutes 1992, section 325D.33, is
amended by adding a subdivision to read:
Subd. 8. [PENALTIES.] (a) A retailer who sells cigarettes
for less than a legal retail price may be assessed a penalty in
the full amount of three times the difference between the actual
selling price and a legal price under sections 325D.30 to
325D.42. This penalty may be collected under the authorities
given the commissioner in chapters 270 and 297, and the penalty
shall bear interest at the rate prescribed by section 270.75,
subdivision 5.
(b) A wholesaler who sells cigarettes for less than a legal
price may be assessed a penalty in the full amount of three
times the difference between the actual selling price and the
legal price under sections 325D.30 to 325D.42. This penalty may
be collected under the authorities given the commissioner in
chapters 270 and 297, and the penalty shall bear interest at the
rate prescribed by section 270.75, subdivision 5.
(c) A retailer who engages in a plan, scheme, or device
with a wholesaler to purchase cigarettes at a price which the
retailer knows to be less than a legal price may be assessed a
penalty in the full amount of three times the difference between
the actual purchase price and the legal price under sections
325D.30 to 325D.42. A retailer that coerces or requires a
wholesaler to sell cigarettes at a price which the retailer
knows to be less than a legal price may be assessed a penalty in
the full amount of three times the difference between the actual
purchase price and the legal price. These penalties may be
collected under the authorities given the commissioner in
chapters 270 and 297, and the penalties shall bear interest at
the rate prescribed by section 270.75, subdivision 5.
For purposes of this subdivision, a retailer is presumed to
know that a purchase price is less than a legal price if any of
the following have been done:
(1) the commissioner has published the legal price in the
Minnesota State Register;
(2) the commissioner has provided written notice to the
retailer of the legal price;
(3) the commissioner has provided written notice to the
retailer that the retailer is purchasing cigarettes for less
than a legal price;
(4) the commissioner has issued a written order to the
retailer to cease and desist from purchases of cigarettes for
less than a legal price; or
(5) there is evidence that the retailer has knowledge of,
or has participated in, efforts to disguise or misrepresent the
actual purchase price as equal to or more than a legal price,
when it is actually less than a legal price.
In any proceeding arising under this subdivision, the
commissioner shall have the burden of providing by a reasonable
preponderance of the evidence that the facts necessary to
establish the presumption set forth in this section exist, or
that the retailer had knowledge that a purchase price was less
than the legal price.
(d) The commissioner may not assess penalties against any
wholesaler, retailer, or combination of wholesaler and retailer,
which are greater than three times the difference between the
actual price and the legal price under sections 325D.30 to
325D.42.
Sec. 14. Minnesota Statutes 1992, section 325D.37,
subdivision 3, is amended to read:
Subd. 3. Before selling cigarettes at a price set in good
faith to meet competition, a wholesaler shall contact notify the
commissioner to verify that a competitor has met the
requirements of section 325D.32, subdivision 10, or that a
competitor has contacted the commissioner under this subdivision
in response to a wholesaler who has met the requirements of
section 325D.32, subdivision 10 in writing that it intends to
meet a competitor's legal price. A wholesaler filing the notice
shall be allowed to meet the competitor's price unless within
seven days of receipt of the notice, the commissioner informs
the wholesaler that the competitor's price is an illegal price.
Sec. 15. [325D.371] [PUBLICATION OF CIGARETTE PRICES.]
The commissioner shall publish in the State Register the
presumed legal prices of all cigarettes as calculated pursuant
to section 325D.32, subdivision 10. The prices must be
published within one month of each recomputation, but not less
than once each year.
Sec. 16. [383A.62] [ELECTIONS DEPARTMENT MERGER.]
The city of St. Paul and Ramsey county may, by agreement
subject to this section, provide for the merger of the city
elections office with the county election office. The
consolidation shall be set to begin at the beginning of a fiscal
year. In the preceding fiscal year and each year thereafter the
county shall provide a budget and levy a property tax for the
merged office that will defray the costs of the services
provided throughout the county by the merged office. The county
shall succeed to the obligations of the city under any
collective bargaining agreements in existence at the time of the
merger. Nothing in this section or in an agreement for merger
under this section shall diminish any rights defined in
collective bargaining agreements. The merger must not occur
until bargaining units representing affected employees have
completed negotiations on post-merger terms and conditions of
employment. The county shall succeed to the other obligations
and to the real and personal property of the merged city offices.
Sec. 17. Minnesota Statutes 1992, section 429.061,
subdivision 1, is amended to read:
Subdivision 1. [CALCULATION, NOTICE.] At any time after
the expense incurred or to be incurred in making an improvement
shall be calculated under the direction of the council, the
council shall determine by resolution the amount of the total
expense the municipality will pay, other than the amount, if
any, which it will pay as a property owner, and the amount to be
assessed. If a county proposes to assess within the boundaries
of a city for a county state-aid highway or county highway,
including curbs, gutters, and storm sewers, the resolution must
include the portion of the cost proposed to be assessed within
the city. The county shall forward the resolution to the city
and it may not proceed with the assessment procedure nor may the
county allocate any cost under this section for property within
the city unless the city council adopts the resolution approving
the assessment. Thereupon the clerk, with the assistance of the
engineer or other qualified person selected by the council,
shall calculate the proper amount to be specially assessed for
the improvement against every assessable lot, piece or parcel of
land, without regard to cash valuation, in accordance with the
provisions of section 429.051. The proposed assessment roll
shall be filed with the clerk and be open to public inspection.
The clerk shall thereupon, under the council's direction,
publish notice that the council will meet to consider the
proposed assessment. Such notice shall be published in the
newspaper at least once and shall be mailed to the owner of each
parcel described in the assessment roll. For the purpose of
giving mailed notice under this subdivision, owners shall be
those shown to be such 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; but other
appropriate records may be used for this purpose. Such
publication and mailing shall be no less than two weeks prior to
such meeting of the council. Except as to the owners of tax
exempt property or property taxes on a gross earnings basis,
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 such 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 such purpose. Such
notice shall state the date, time, and place of such meeting,
the general nature of the improvement, the area proposed to be
assessed, the total amount of the proposed assessment, that the
proposed assessment roll is on the file with the clerk, and that
written or oral objections thereto by any property owner will be
considered. The notice must also state that no appeal may be
taken as to the amount of any assessment adopted pursuant to
subdivision 2, unless a written objection signed by the affected
property owner is filed with the municipal clerk prior to the
assessment hearing or presented to the presiding officer at the
hearing. The notice shall also state that an owner may appeal
an assessment to district court pursuant to section 429.081 by
serving notice of the appeal upon the mayor or clerk of the
municipality within 30 days after the adoption of the assessment
and filing such notice with the district court within ten days
after service upon the mayor or clerk. The notice shall also
inform property owners of the provisions of sections 435.193 to
435.195 and the existence of any deferment procedure established
pursuant thereto in the municipality. In addition, the notice
mailed to the owner must include state in clear language the
following information:
(1) the amount to be specially assessed against that
particular lot, piece, or parcel of land;
(2) adoption by the council of the proposed assessment may
be taken at the hearing;
(3) the right of the property owner to prepay the entire
assessment and the person to whom prepayment must be made;
(3) (4) whether partial prepayment of the assessment has
been authorized by ordinance;
(4) (5) the time within which prepayment may be made
without the assessment of interest; and
(5) (6) the rate of interest to be accrued if the
assessment is not prepaid within the required time period.
Sec. 18. Minnesota Statutes 1992, section 469.169, is
amended by adding a subdivision to read:
Subd. 9. [ADDITIONAL BORDER CITY ALLOCATIONS.] In addition
to tax reductions authorized in subdivisions 7 and 8, the
commissioner may allocate $1,100,000 for tax reductions to
border city enterprise zones in cities located on the western
border of the state, and $300,000 to the border city enterprise
zone in the city of Duluth. The commissioner shall make
allocations to zones in cities on the western border by
evaluating which cities' applications for allocations relate to
business prospects that have the greatest positive economic
impact. Allocations made under this subdivision may be used for
tax reductions as provided in section 469.171, or other offsets
of taxes imposed on or remitted by businesses located in the
enterprise zone, but only if the municipality determines that
the granting of the tax reduction or offset is necessary in
order to retain a business within or attract a business to the
zone. Limitations on allocations under section 469.169,
subdivision 7, do not apply to this allocation. Enterprise
zones that receive allocations under this subdivision may
continue in effect for purposes of those allocations through
December 31, 1994.
Sec. 19. [473.334] [SPECIAL ASSESSMENT; AGREEMENT.]
Subdivision 1. [GENERALLY.] In determining the special
benefit received by regional recreation open space system
property as defined in sections 473.301 to 473.351 from an
improvement for which a special assessment is determined, the
governing body shall not consider any use of the property other
than as regional recreation open space property at the time the
special assessment is determined. The metropolitan council
shall not be bound by the determination of the governing body of
the city but may pay a lesser amount, as agreed upon by the
metropolitan council and the governing body of the city, as they
determine is the measure of benefit to the land from the
improvement.
Subd. 2. [EXCEPTION.] This section does not apply to
Otter-Bald Eagle lake regional park property in the town of
White Bear, Ramsey county, which shall continue to be governed
by section 435.19.
Sec. 20. Minnesota Statutes 1992, section 477A.14, is
amended to read:
477A.14 [USE OF FUNDS.]
Forty percent of the total payment to the county shall be
deposited in the county general revenue fund to be used to
provide property tax levy reduction. The remainder shall be
distributed by the county in the following priority:
(a) 37.5 cents for each acre of county-administered other
natural resources land shall be deposited in a resource
development fund to be created within the county treasury for
use in resource development, forest management, game and fish
habitat improvement, and recreational development and
maintenance of county-administered other natural resources
land. Any county receiving less than $5,000 annually for the
resource development fund may elect to deposit that amount in
the county general revenue fund;
(b) From the funds remaining, within 30 days of receipt of
the payment to the county, the county treasurer shall pay each
organized township shall receive 30 cents per acre of acquired
natural resources land and 7.5 cents per acre of other natural
resources land located within its boundaries. Payments for
natural resources lands not located in an organized township
shall be deposited in the county general revenue fund. Payments
to counties and townships pursuant to this paragraph shall be
used to provide property tax levy reduction. Provided that, if
the total payment to the county pursuant to section 477A.12 is
not sufficient to fully fund the distribution provided for in
this clause, the amount available shall be distributed to each
township and the county general revenue fund on a pro rata
basis; and
(c) Any remaining funds shall be deposited in the county
general revenue fund. Provided that, if the distribution to the
county general revenue fund exceeds $35,000, the excess shall be
used to provide property tax levy reduction.
Sec. 21. [UNEMPLOYMENT TAX ADMINISTRATION; STUDY.]
The commissioner of revenue and the commissioner of jobs
and training shall study the feasibility of transferring the
responsibility for collection of unemployment taxes from the
department of jobs and training to the department of revenue.
The commissioners must present their report to the legislature
by February 1, 1994.
Sec. 22. [ST. PAUL; SPECIAL ASSESSMENTS.]
Subdivision 1. [POWERS.] The city of St. Paul may by
ordinance choose to exercise the powers provided by this section
in place of those provided by Minnesota Statutes, section
429.101, subdivision 1, but in accordance with the provisions of
Minnesota Statutes, section 429.101, subdivisions 2 and 3. In
addition to any method authorized by law or charter, the city
may provide for the collection of unpaid special charges for all
or any part of the following costs:
(1) snow, ice, rubbish, or litter removal from public
parking facilities;
(2) the operation, including maintenance and repair, of
lighting systems for public parking facilities; or
(3) the operation, including maintenance and repair, of
public parking facilities.
Subd. 2. [SPECIAL ASSESSMENTS.] The costs listed in
subdivision 1 may be collected as a special assessment against
the property benefited.
Subd. 3. [REGULATIONS.] The council may by ordinance adopt
regulations consistent with this section to make this authority
effective, including, at the option of the council, provisions
for collection of actual or estimated charges from the property
owner or other person served before the unpaid charges are made
a special assessment.
Subd. 4. [ADJUSTMENT.] If estimated charges are collected
and, based upon subsequent actual costs, found to be excessive
or deficient, subsequent charges shall be reduced by the excess
or increased by the deficiency.
Sec. 23. [ST. PAUL HOUSING LOAN AND GRANT PROGRAM.]
Subdivision 1. [HOUSING REHABILITATION LOAN PROGRAM.] The
city of Saint Paul may develop and administer a housing
rehabilitation loan program with respect to residential property
located anywhere within its boundaries on the terms and
conditions as it determines. In approving applications for the
program, the following factors must be considered:
(1) the availability of other governmental programs
affordable by the applicant;
(2) the availability and affordability of private market
financing;
(3) whether the housing is required, pursuant to an urban
renewal program or a code enforcement program, to be repaired,
improved, or rehabilitated;
(4) whether the housing is required, pursuant to a court
order issued under Minnesota Statutes, section 566.25, clauses
(b), (c), and (e), to be repaired, improved, or rehabilitated;
(5) whether the housing has been determined to be
uninsurable because of physical hazards after inspection
pursuant to a statewide property insurance plan approved by the
United States Department of Housing and Urban Development under
Title XII of the National Housing Act; and
(6) whether rehabilitation of the housing will maintain or
improve the value of the housing and will help to stabilize the
neighborhood in which the housing is located.
All loans and grants shall be issued primarily for
rehabilitating housing so that it meets applicable housing
codes, building codes, and health and safety codes, and to make
other necessary improvements.
Subd. 2. [NEW RESIDENTIAL DWELLING UNITS.] A housing
rehabilitation loan program undertaken under subdivision 1 may
also provide for the city to make or purchase loans made to
finance the acquisition of single-family residences and
multifamily housing projects that have been newly constructed in
established neighborhoods on land owned by the city or any
agency of the city. For purposes of this subdivision, land
shall be considered to be owned by the city if the city or one
of its agencies previously owned the land and conveyed it to an
individual, partnership, or other entity under a development
agreement in which the developer has agreed to construct
single-family housing or one or more multifamily housing
projects on the land. In approving applications for a loan to
be made under this subdivision, the following factors shall be
considered:
(1) the availability and affordability of other
governmental programs or private market financing; and
(2) whether the construction of the housing enhances the
stability of the neighborhood in which it is located.
Subd. 3. [HOUSING REHABILITATION GRANT PROGRAM.] The city
of St. Paul may develop and administer a housing rehabilitation
grant program with respect to property within its boundaries, on
the terms and conditions as it determines. In approving
applications for grants used under this program, all of the
considerations and limitations enumerated in subdivision 2 for
loans must be considered and the following factors must also be
considered:
(1) whether the housing unit is a single-family dwelling,
homesteaded unit, or multifamily housing project; and
(2) whether the applicant is a person of low income.
The city council shall by ordinance set forth the regulations
for its grant program. The dollar value of grants made shall
not exceed five percent of the total value of the bonds issued
for both the loan and the grant programs. All grants shall be
made primarily to rehabilitate housing so that it meets
applicable housing codes, building codes, and health and safety
codes or to make other necessary improvements.
Subd. 4. [ISSUANCE OF BONDS.] To finance the programs
authorized by this section, the governing body of the city of
Saint Paul may, by resolution, authorize, issue, and sell
general obligation bonds of the city of Saint Paul, with or
without an election, and otherwise in accordance with the
provisions of chapter 475. The total amount of all bonds
outstanding at any time for the program authorized by this
section shall not exceed $25,000,000. The amount of all bonds
issued shall be included in the net indebtedness of the city for
the purpose of any charter or statutory debt limitation.
Subd. 5. [AUTHORITY MAY UNDERTAKE PROGRAM; AUTHORITY
GENERAL OBLIGATION REVENUE BONDS.] The Saint Paul housing and
redevelopment authority may exercise the powers of the city
under this section, except that the regulations required by
subdivision 3 must be enacted by an ordinance of the city. To
finance the programs authorized by this section, the authority
may issue bonds and pledge the full faith and credit and taxing
power of the city as additional security for bonds payable from
the income or revenues of a program or from the income or
revenues of specific projects undertaken pursuant to a program,
in the manner authorized by Minnesota Statutes, section 469.034,
subdivision 2, except that the program may consist of a program
of loans or grants for single-family housing or multifamily
housing projects, and except that in lieu of the limit stated in
section 469.034, subdivision 2, the maximum amount of bonds that
may be outstanding at any time under this subdivision, together
with the principal amount of bonds outstanding at any time under
subdivision 4, shall not exceed the amount stated in subdivision
4. Each residential dwelling unit must be purchased or occupied
by the elderly, or a person or family with income not greater
than 175 percent of the median family income for the
Minneapolis-Saint Paul metropolitan statistical area as
estimated by the United States Department of Housing and Urban
Development.
Subd. 6. [POWERS SUPPLEMENTAL; OWNERSHIP.] The powers
granted by this subdivision supplement the powers granted to the
city or authority by any other general or special law.
Notwithstanding any contrary provision of any general or special
law, single-family residences or multifamily housing projects
financed by the city or authority pursuant to this subdivision
may be owned by the city or authority or by a private person or
entity. Except for properties that are part of a lease purchase
program, the city or authority shall not own projects financed
under this section for more than two years.
Sec. 24. [GOODHUE COUNTY; COUNTY REDEVELOPMENT AUTHORITY.]
Subdivision 1. [ESTABLISHMENT.] The Goodhue county board
may, by adopting a written enabling resolution, establish a
county redevelopment authority that, subject to subdivision 2,
has the following powers: powers of an economic development
authority under Minnesota Statutes, sections 469.090 to
469.1081, except for the authority to issue general obligation
bonds under Minnesota Statutes, section 469.102; powers of a
rural development financing authority under Minnesota Statutes,
sections 469.142 to 469.151; and powers of a housing and
redevelopment authority under Minnesota Statutes, chapter 462.
Subd. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] If the
Goodhue county redevelopment 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
469.1081, including a tax levy to support the activities of the
authority. The 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 by
the written resolution of the county board. All modifications
to the enabling resolution must be by written resolution.
(c) Before the authority begins a project, the governing
body of the municipality in which the project is to be located
or the Goodhue county board, if the project is outside municipal
corporate limits, must approve the project by majority vote 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 Goodhue county board. Each director shall be appointed
to serve for three years or until a successor is appointed. No
director may serve more than two consecutive terms. The
appointment of directors must reflect representation of the
entire county. The other two directors must be representatives
of various county-based economic development organizations.
(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. A
vacancy occurs if a director no longer resides in the county. A
director may be removed by the county board for inefficiency,
neglect of duty, or misconduct in office.
(c) The county administrator or the designee of the county
administrator shall be the executive secretary of the county
redevelopment authority.
(d) The directors shall receive no compensation other than
reimbursement for expenses incurred in the performance of their
duties.
Sec. 25. [STATE ADVISORY COUNCIL.]
Subdivision 1. [ESTABLISHMENT; PURPOSE.] A state advisory
council on metropolitan governance is established to provide a
forum at the state level for education, discussion,
identification of emerging regional needs and appropriate
responses, and advice to the legislature on the present and
future role of the metropolitan council, metropolitan agencies,
and the local governmental units as defined in Minnesota
Statutes, section 473.121. The creation of the advisory council
shall not affect any otherwise existing reporting relationships
of the council, metropolitan agencies, or the local governmental
units to the legislature.
Subd. 2. [AUTHORITY; DUTIES.] (a) The advisory council
shall review and comment to the legislature on the duties and
responsibilities of the council, metropolitan agencies, and the
local governmental units.
(b) The advisory council may gather information, conduct
research and analysis, and advise the legislature on matters
related to the council's charge.
(c) The advisory council may conduct public hearings to
inform the public and solicit opinion.
(d) The advisory council shall consult with local
governmental units in making its recommendations.
Subd. 3. [MEMBERSHIP.] The advisory council shall consist
of 15 members who serve at the pleasure of the appointing
authority as follows:
(1) six legislators; three members of the senate appointed
by the subcommittee on committees of the committee on rules and
administration; and three members of the house of
representatives appointed by the speaker; and
(2) nine public members who are residents of the
metropolitan area; two appointed by the subcommittee on
committees of the committee on rules and administration of the
senate and two appointed by the speaker of the house of
representatives; and five appointed by the governor.
Subd. 4. [CHAIRS.] The legislative appointing authorities
shall each designate a legislative appointee to serve as
co-chair of the advisory council.
Subd. 5. [ADMINISTRATION.] Legislative staff, the
metropolitan council, and metropolitan agencies shall provide
administrative and staff assistance when requested by the
advisory council.
Subd. 6. [EXPENSES.] The metropolitan council shall
compensate the members of the advisory council. Public members
are to be compensated in an amount provided by Minnesota
Statutes, section 15.059, subdivision 3. Members of the
legislature are to be paid per diem and expenses in an amount
provided by Minnesota Statutes, section 3.099. The council
shall adopt a budget of estimated expenses at its first meeting
and provide a copy to the metropolitan council.
Subd. 7. [APPLICATION.] This section applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
Sec. 26. [APPROPRIATION.]
$301,000 is appropriated for fiscal year 1994 and $119,000
is appropriated for fiscal year 1995 from the general fund to
the commissioner of revenue for the purpose of meeting the cost
to the department of revenue of administering the provisions of
this act.
Sec. 27. [REPEALER.]
Minnesota Statutes 1992, section 325D.33, subdivision 7, is
repealed.
Sec. 28. [EFFECTIVE DATE.]
Section 1 is effective June 30, 1993.
Sections 3, 4, and 20 are effective for payments received
by the county after June 30, 1993.
Section 7 is effective for debts incurred after July 31,
1993.
Section 8 is effective for property tax refunds paid after
December 31, 1992.
Section 10 is effective retroactively to April 25, 1992.
Section 13, paragraphs (a), (b), and (d), are effective the
day following final enactment. Section 13, paragraph (c), is
effective May 29, 1987, except that in any proceeding under
paragraph (c) that arises out of purchases that occurred prior
to August 1, 1993, the penalties shall not exceed the difference
between the actual purchase price and the legal price.
Sections 14 and 15 are effective August 1, 1993.
Sections 16, 22, 23, and 24 are effective the day following
final enactment and without local approval, as provided in
Minnesota Statutes, section 645.023, subdivision 1, clause (a).
Section 25 is effective the day following final enactment
and is repealed June 30, 1994.
Section 27 is effective May 29, 1987.
Presented to the governor May 20, 1993
Signed by the governor May 24, 1993, 5:54 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes