Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 416-S.F.No. 2073
An act relating to taxation; making technical
corrections and administrative changes; amending
Minnesota Statutes 1992, sections 103B.245,
subdivision 1; 103D.911, subdivision 2; 103D.915,
subdivision 1; 115A.923, subdivision 1; 256.879,
subdivisions 1 and 2; 270.12, subdivision 2; 272.025,
subdivision 3; 273.111, subdivision 6; 273.13,
subdivision 22; 273.134; 273.1399, subdivision 3;
275.065, subdivision 1; 278.05, subdivision 5; 279.37,
subdivision 8; 282.01, subdivision 1; 282.014; 282.04,
subdivision 2; 282.301; 289A.08, subdivision 7;
289A.25, subdivision 5; 290.17, subdivision 2;
290.371, subdivision 2; 297.01, subdivision 14;
297.11, subdivision 5; 297A.021, subdivision 4;
297B.11; 297C.01, subdivision 5; 357.18, subdivision
2; 398.16; 398A.04, subdivision 8; 447.34, subdivision
2; 462.396, subdivision 2; 469.060, subdivision 6;
469.102, subdivision 5; 469.177, subdivision 9;
473.167, subdivision 3; 473.249, subdivision 1;
473.446, subdivision 1; 473.661, subdivision 2;
473.711, subdivision 2; 477A.011, subdivision 1b;
477A.0121, subdivision 4; 477A.0132, subdivision 3;
477A.014, subdivision 1; and 477A.15; Minnesota
Statutes 1993 Supplement, sections 124.2131,
subdivision 1; 270.96, subdivision 3; 272.02,
subdivision 1; 272.12; 273.11, subdivision 13;
273.124, subdivisions 1, 9, and 13; 273.13,
subdivision 25; 273.1398, subdivisions 1 and 3;
273.166, subdivision 3; 275.065, subdivisions 3 and 6;
276.04, subdivision 2; 277.15; 278.04; 278.08;
290A.03, subdivision 13; 290.091, subdivision 2;
297A.01, subdivision 3; 297A.07, subdivision 1;
298.28, subdivision 9a; 469.033, subdivision 6;
473.13, subdivision 1; and 477A.013, subdivision 8;
Laws 1989, chapter 211, section 4, subdivision 2; Laws
1992, chapter 511, article 4, section 29; Laws 1993,
chapter 375, article 2, section 37; proposing coding
for new law in Minnesota Statutes, chapters 273 and
275; repealing Minnesota Statutes 1992, sections
16A.70; 16A.71; 115A.923, subdivision 6; and 273.22;
Minnesota Statutes 1993 Supplement, section 273.1398,
subdivision 2a; Laws 1993, First Special Session
chapter 1, article 2, section 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PROPERTY TAXES
Section 1. Minnesota Statutes 1992, section 103B.245,
subdivision 1, is amended to read:
Subdivision 1. [WATERSHED MANAGEMENT TAX DISTRICT.] (a)
Any local government unit planning for water management under
sections 103B.231 and 103B.235 may establish a watershed
management tax district in the territory within the watershed,
for the purpose of paying the costs of the planning required
under sections 103B.231 and 103B.235.
(b) Any local government unit which has part of its
territory within a watershed for which a plan has been adopted
in accordance with section 103B.231 and which has a local water
management plan adopted in accordance with section 103B.235 may
establish a watershed management tax district in the territory
within the watershed or a subwatershed unit in the watershed,
for the purpose of paying capital costs of the water management
facilities described in the capital improvement program of the
plans and for the purpose of paying for normal and routine
maintenance of the facilities.
(c) A county or counties required by section 103B.231,
subdivision 3, to prepare, adopt, and implement a watershed plan
shall apportion the costs of planning, capital improvements, and
maintenance proportionate to benefits. The county may apportion
the costs among the subwatershed units in the watershed, or
among the statutory and home rule charter cities and towns
having territory in the watershed, and for this purpose may
establish more than one watershed management tax district in the
watershed.
(d) Notification of new watershed management districts
established under this subdivision must be made to the county
auditor by July 1 in order to be effective for taxes payable in
the following year.
Sec. 2. Minnesota Statutes 1992, section 103D.911,
subdivision 2, is amended to read:
Subd. 2. [ADOPTION.] On or before October 1 September 15
of each year, the managers shall adopt a budget for the next
year and decide on the total amount necessary to be raised from
ad valorem tax levies to meet the watershed district's budget.
Sec. 3. Minnesota Statutes 1992, section 103D.915,
subdivision 1, is amended to read:
Subdivision 1. [CERTIFICATION TO AUDITOR.] After adoption
of the budget and no later than October 1 September 15, the
secretary of the watershed district shall certify to the auditor
of each county within the watershed district the county's share
of the tax, which shall be an amount bearing the same proportion
to the total levy as the net tax capacity of the area of the
county within the watershed bears to the net tax capacity of the
entire watershed district. The maximum amount of a levy may not
exceed the amount provided in section 103D.905.
Sec. 4. Minnesota Statutes 1993 Supplement, section
124.2131, subdivision 1, is amended to read:
Subdivision 1. [ADJUSTED NET TAX CAPACITY.] (a)
[COMPUTATION.] The department of revenue shall annually conduct
an assessment/sales ratio study of the taxable property in each
school district in accordance with the procedures in paragraphs
(b) and (c). Based upon the results of this assessment/sales
ratio study, the department of revenue shall determine an
aggregate equalized net tax capacity for the various classes of
taxable property in each school district, which tax capacity
shall be designated as the adjusted net tax capacity. The
adjusted net tax capacities shall be determined using the net
tax capacity percentages in effect for the assessment year
following the assessment year of the study. The department of
revenue shall make whatever estimates are necessary to account
for changes in the classification system. The department of
revenue may incur the expense necessary to make the
determinations. The commissioner of revenue may reimburse any
county or governmental official for requested services performed
in ascertaining the adjusted net tax capacity. On or before
March 15 annually, the department of revenue shall file with the
chair of the tax committee of the house of representatives and
the chair of the committee on taxes and tax laws of the senate a
report of adjusted net tax capacities. On or before June 15
annually, the department of revenue shall file its final report
on the adjusted net tax capacities established by the previous
year's assessments and the current year's net tax capacity
percentages with the commissioner of education and each county
auditor for those school districts for which the auditor has the
responsibility for determination of local tax rates. A copy of
the report so filed shall be mailed to the clerk of each
district involved and to the county assessor or supervisor of
assessments of the county or counties in which each district is
located.
(b) [METHODOLOGY.] In making its annual assessment/sales
ratio studies, the department of revenue shall use a methodology
consistent with the most recent Standard on Assessment Ratio
Studies published by the assessment standards committee of the
International Association of Assessing Officers. The
commissioner of revenue shall supplement this general
methodology with specific procedures necessary for execution of
the study in accordance with other Minnesota laws impacting the
assessment/sales ratio study. The commissioner shall document
these specific procedures in writing and shall publish the
procedures in the State Register, but these procedures will not
be considered "rules" pursuant to the Minnesota administrative
procedure act. For purposes of this section, sections 270.12,
subdivision 2, clause (8), and 278.05, subdivision 4, the
commissioner of revenue shall exclude from the assessment/sales
ratio study the sale of any nonagricultural property which does
not contain an improvement, if (1) the statutory basis on which
the property's taxable value as most recently assessed is less
than market value as defined in section 273.11, or (2) the
property has undergone significant physical change or a change
of use since the most recent assessment.
(c) [AGRICULTURAL LANDS.] For purposes of determining the
adjusted net tax capacity of agricultural lands for the
calculation of adjusted net tax capacities, the market value of
agricultural lands shall be the price for which the property
would sell in an arms length transaction.
(d) [FORCED SALES.] The commissioner may include forced
sales in the assessment/sales ratio studies if it is determined
by the commissioner that these forced sales indicate true market
value.
(e) [STIPULATED VALUES AND ABATEMENTS.] The estimated
market value to be used in calculating sales ratios shall be the
value established by the assessor before any stipulations
resulting from appeals by property owners and before any
abatement unless the abatement was granted for the purpose of
correcting mere clerical errors.
(f) [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios
shall be calculated for commercial property and for industrial
property. These two classes shall be combined only in
jurisdictions in which there is not an adequate sample of sales
in each class.
Sec. 5. Minnesota Statutes 1992, section 256.879,
subdivision 1, is amended to read:
Subdivision 1. The commissioner of human services may,
with the approval of the federal department of health, education
and welfare, provide an annual supplemental housing allowance
for recipients of the aid to families with dependent children
program who would otherwise qualify for the credit set forth
refund provided in sections 290A.01 to 290A.22.
Sec. 6. Minnesota Statutes 1992, section 256.879,
subdivision 2, is amended to read:
Subd. 2. The amount of the supplemental housing allowance,
if any, shall be calculated in the same manner as the income
adjusted homestead credit set forth at property tax refund
provided in sections 290A.01 to 290A.22. Recipients may apply
for this supplement in the same manner as claims submitted to
the department of revenue under sections 290A.01 to 290A.22.
The supplemental allowance shall be paid by local welfare
agencies.
Sec. 7. Minnesota Statutes 1992, section 270.12,
subdivision 2, is amended to read:
Subd. 2. [MEETING DATES; DUTIES.] The board shall meet
annually between April 15 and June 30 at the office of the
commissioner of revenue and examine and compare the returns of
the assessment of the property in the several counties, and
equalize the same so that all the taxable property in the state
shall be assessed at its market value, subject to the following
rules:
(1) The board shall add to the aggregate valuation of the
real property of every county, which the board believes to be
valued below its market value in money, such percent as will
bring the same to its market value in money;
(2) The board shall deduct from the aggregate valuation of
the real property of every county, which the board believes to
be valued above its market value in money, such percent as will
reduce the same to its market value in money;
(3) If the board believes the valuation for a part of a
class determined by a range of market value under clause (8) or
otherwise, a class, or classes of the real property of any town
or district in any county, or the valuation for a part of a
class, a class, or classes of the real property of any county
not in towns or cities, should be raised or reduced, without
raising or reducing the other real property of such county, or
without raising or reducing it in the same ratio, the board may
add to, or take from, the valuation of a part of a class, a
class, or classes in any one or more of such towns or cities, or
of the property not in towns or cities, such percent as the
board believes will raise or reduce the same to its market value
in money;
(4) The board shall add to the aggregate valuation of
any part of a class, a class, or classes of personal property of
any county, town, or city, which the board believes to be valued
below the market value thereof, such percent as will raise the
same to its market value in money;
(5) The board shall take from the aggregate valuation of
any part of a class, a class, or classes of personal property in
any county, town or city, which the board believes to be valued
above the market value thereof, such percent as will reduce the
same to its market value in money;
(6) The board shall not reduce the aggregate valuation of
all the property of the state, as returned by the several county
auditors, more than one percent on the whole valuation thereof;
(7) When it would be of assistance in equalizing values the
board may require any county auditor to furnish statements
showing assessments of real and personal property of any
individuals, firms, or corporations within the county. The
board shall consider and equalize such assessments and may
increase the assessment of individuals, firms, or corporations
above the amount returned by the county board of equalization
when it shall appear to be undervalued, first giving notice to
such persons of the intention of the board so to do, which
notice shall fix a time and place of hearing. The board shall
not decrease any such assessment below the valuation placed by
the county board of equalization;
(8) In equalizing values pursuant to this section, the
board shall utilize a 12-month assessment/sales ratio study
conducted by the department of revenue containing only sales
that are filed in the county auditor's office under section
272.115, by November 1 of the previous year and that occurred
between October 1 of the year immediately preceding the previous
year and September 30 of the previous year.
The assessment/sales ratio study may separate the values of
residential property into market value categories. The board
may adjust the market value categories and the number of
categories as necessary to create an adequate sample size for
each market value category. The board may determine the
adequate sample size. To the extent practicable, the
methodology used in preparing the assessment/sales ratio study
must be consistent with the most recent Standard on Assessment
Sales Ratio Studies published by the assessment standards
committee of the International Association of Assessing
Officers. The board may determine the geographic area used in
preparing the study to accurately equalize values. A sales
ratio study separating residential property into market value
categories may not be used as the basis for a petition under
chapter 278.
The sales prices used in the study must be discounted for
terms of financing. The board shall use the median ratio as the
statistical measure of the level of assessment for any
particular category of property; and
(9) The board shall receive from each county the estimated
market values on the assessment date falling within the study
period for all parcels by magnetic tape or other medium as
prescribed by the commissioner of revenue.
Sec. 8. Minnesota Statutes 1993 Supplement, section
270.96, subdivision 3, is amended to read:
Subd. 3. [TREASURER.] (a) The county treasurer shall pay
the proceeds of the tax imposed under section 270.91,
subdivision 4, less the amount retained by the county for the
cost of administration under section 270.98, to the commissioner
at the same times provided for the ad valorem property tax
settlements distributions.
(b) The county treasurer shall pay the proceeds of the tax
imposed under section 270.91, subdivisions 2 and 3, to the local
taxing jurisdictions in the same manner provided for the
distribution of ad valorem property taxes.
Sec. 9. Minnesota Statutes 1993 Supplement, section
272.02, subdivision 1, is amended to read:
Subdivision 1. All property described in this section to
the extent herein limited shall be exempt from taxation:
(1) all public burying grounds;
(2) all public schoolhouses;
(3) all public hospitals;
(4) all academies, colleges, and universities, and all
seminaries of learning;
(5) all churches, church property, and houses of worship;
(6) institutions of purely public charity except parcels of
property containing structures and the structures described in
section 273.13, subdivision 25, paragraph (c), clauses (1), (2),
and (3), or paragraph (d), 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
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) 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:.
In order for a structure to be exempt under (i) or (ii) of
this clause, it must also meet 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.
(27) 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. 10. Minnesota Statutes 1992, section 272.025,
subdivision 3, is amended to read:
Subd. 3. The statement required by subdivision 1,
paragraph (a), must be filed with the assessor by February 1 of
the assessment year, however, any taxpayer who has filed the
statement required by subdivision 1 more than 12 months prior to
February 1, 1983, or February 1 of each third year after 1983,
shall file a statement by February 1, 1983, and by February 1 of
each third year thereafter.
Sec. 11. Minnesota Statutes 1993 Supplement, section
272.12, is amended to read:
272.12 [CONVEYANCES, TAXES PAID BEFORE RECORDING.]
When:
(a) a deed or other instrument conveying land, or
(b) a plat of any town site or addition thereto, or
(c) a survey required pursuant to section 508.47,
(d) a condominium plat subject to chapter 515 or 515A or a
declaration that contains such a plat, or
(e) a common interest community plat subject to chapter
515B or a declaration that contains such a plat,
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, plats, or other enabling documents governing homeowners
associations of condominiums, townhouses, common interest
ownership communities, 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. 12. [273.032] [MARKET VALUE DEFINITION.]
For the purpose of determining any property tax levy
limitation based on market value, any net debt limit based on
market value, any limit on the issuance of bonds, certificates
of indebtedness, or capital notes based on market value, any
qualification to receive state aid based on market value, or any
state aid amount based on market value, the terms "market
value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean the total taxable market value of
property within the local unit of government before any
adjustments for tax increment, fiscal disparity, or powerline
credit values, but after the limited market adjustments under
section 273.11, subdivision 1a, and after the market value
exclusions of certain improvements to homestead property under
section 273.11, subdivision 16. Unless otherwise provided,
"market value," "taxable market value," and "market valuation"
refer to the taxable market value for the previous assessment
year.
Sec. 13. Minnesota Statutes 1993 Supplement, 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"
includes any property in class 4e in section 273.13, subdivision
25, that would be income-producing property under the definition
in this subdivision if it were not substandard.
"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. 14. Minnesota Statutes 1992, section 273.111,
subdivision 6, is amended to read:
Subd. 6. Real property shall be considered to be in
agricultural use provided that annually:
(1) at least 33-1/3 percent of the total family income of
the owner is derived therefrom, or the total production income
including rental from the property is $300 plus $10 per tillable
acre; and
(2) it is devoted to the production for sale of
agricultural products as defined in section 273.13, subdivision
23, paragraph (e).
Slough, wasteland, and woodland contiguous to or surrounded
by land that is entitled to valuation and tax deferment under
this section is considered to be in agricultural use if under
the same ownership and management.
Sec. 15. Minnesota Statutes 1993 Supplement, 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 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 must 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.
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 qualifying 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. 16. Minnesota Statutes 1993 Supplement, 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 on 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,
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
on 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 may publish in a newspaper of general
circulation within the county a notice requesting the public to
file an application for homestead 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.
In the case of manufactured homes assessed as personal
property, the homestead must be established, and a homestead
classification requested, by May 29 of the assessment year. The
assessor may include information on these deadlines for
manufactured homes assessed as personal property in the
published notice or notices.
Sec. 17. Minnesota Statutes 1993 Supplement, 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 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.
(c) Every property owner applying for homestead
classification must furnish to the county assessor the social
security number of each occupant who is listed as an owner of
the property 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.
(d) 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.
(e) 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 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.
(f) If the 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.
(g) 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.
(h) 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. In the case of a manufactured home, the amount
shall be certified to the current year's tax list for collection.
(i) 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.
(j) 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.
(k) In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 18. Minnesota Statutes 1992, section 273.13,
subdivision 22, is amended to read:
Subd. 22. [CLASS 1.] (a) Except as provided in subdivision
23, real estate which is residential and used for homestead
purposes is class 1. The market value of class 1a property must
be determined based upon the value of the house, garage, and
land.
The first $72,000 of market value of class 1a property has
a net class rate of one percent of its market value and a gross
class rate of 2.17 percent of its market value. For taxes
payable in 1992, the market value of class 1a property that
exceeds $72,000 but does not exceed $115,000 has a class rate of
two percent of its market value; and the market value of class
1a property that exceeds $115,000 has a class rate of 2.5
percent of its market value. For taxes payable in 1993 and
thereafter, the market value of class 1a property that exceeds
$72,000 has a class rate of two percent.
(b) Class 1b property includes homestead real estate or
homestead manufactured homes used for the purposes of a
homestead by
(1) any blind person, if the blind person is the owner
thereof or if the blind person and the blind person's spouse are
the sole owners thereof; or
(2) any person, hereinafter referred to as "veteran," who:
(i) served in the active military or naval service of the
United States; and
(ii) is entitled to compensation under the laws and
regulations of the United States for permanent and total
service-connected disability due to the loss, or loss of use, by
reason of amputation, ankylosis, progressive muscular
dystrophies, or paralysis, of both lower extremities, such as to
preclude motion without the aid of braces, crutches, canes, or a
wheelchair; and
(iii) has acquired a special housing unit with special
fixtures or movable facilities made necessary by the nature of
the veteran's disability, or the surviving spouse of the
deceased veteran for as long as the surviving spouse retains the
special housing unit as a homestead; or
(3) any person who:
(i) is permanently and totally disabled and
(ii) receives 90 percent or more of total income from
(A) aid from any state as a result of that disability; or
(B) supplemental security income for the disabled; or
(C) workers' compensation based on a finding of total and
permanent disability; or
(D) social security disability, including the amount of a
disability insurance benefit which is converted to an old age
insurance benefit and any subsequent cost of living increases;
or
(E) aid under the Federal Railroad Retirement Act of 1937,
United States Code Annotated, title 45, section 228b(a)5; or
(F) a pension from any local government retirement fund
located in the state of Minnesota as a result of that
disability; or
(4) any person who is permanently and totally disabled and
whose household income as defined in section 290A.03,
subdivision 5, is 150 percent or less of the federal poverty
level.
Property is classified and assessed under clause (4) only
if the government agency or income-providing source certifies,
upon the request of the property owner homestead occupant, that
the property owner homestead occupant satisfies the disability
requirements of this subdivision paragraph.
Property is classified and assessed pursuant to clause (1)
only if the commissioner of jobs and training certifies to the
assessor that the owner of the property homestead occupant
satisfies the requirements of this subdivision paragraph.
Permanently and totally disabled for the purpose of this
subdivision means a condition which is permanent in nature and
totally incapacitates the person from working at an occupation
which brings the person an income. The first $32,000 market
value of class 1b property has a net class rate of .45 percent
of its market value and a gross class rate of .87 percent of its
market value. The remaining market value of class 1b property
has a gross or net class rate using the rates for class 1 or
class 2a property, whichever is appropriate, of similar market
value.
(c) Class 1c property is commercial use real property that
abuts a lakeshore line and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted
to commercial purposes for more than 250 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner, which includes a dwelling
occupied as a homestead by a shareholder of a corporation that
owns the resort or a partner in a partnership that owns the
resort, even if the title to the homestead is held by the
corporation or partnership. For purposes of this clause,
property is devoted to a commercial purpose on a specific day if
any portion of the property, excluding the portion used
exclusively as a homestead, is used for residential occupancy
and a fee is charged for residential occupancy. Class 1c
property has a class rate of one percent of total market value
for taxes payable in 1993 and thereafter with the following
limitation: the area of the property must not exceed 100 feet
of lakeshore footage for each cabin or campsite located on the
property up to a total of 800 feet and 500 feet in depth,
measured away from the lakeshore.
Sec. 19. Minnesota Statutes 1993 Supplement, 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. The public
financing received must be from at least one of the following
sources: government issued bonds exempt from taxes under
section 103 of the Internal Revenue Code of 1986, as amended
through December 31, 1993, the proceeds of which are used for
the acquisition or rehabilitation of the building; programs
under section 221(d)(3), 202, or 236, of Title II of the
National Housing Act; rental housing program funds under Section
8 of the United States Housing Act of 1937 or the market rate
family graduated payment mortgage program funds administered by
the Minnesota housing finance agency that are used for the
acquisition or rehabilitation of the building; public financing
provided by a local government used for the acquisition or
rehabilitation of the building, including grants or loans from
federal community development block grants, HOME block grants,
or residential rental bonds issued under chapter 474A; or other
rental housing program funds provided by the Minnesota housing
finance agency for the acquisition or rehabilitation of the
building.
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 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 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. 20. Minnesota Statutes 1992, section 273.134, is
amended to read:
273.134 [TACONITE AND IRON ORE AREAS; TAX RELIEF AREA;
DEFINITIONS.]
For purposes of this section and section 273.135,
"municipality" means any city, however organized, or town, and
the applicable assessment date is the date as of which property
is listed and assessed for the tax in question.
For the purposes of section 273.135 "tax relief area" means
the geographic area contained, within the boundaries of a school
district which contains a municipality which meets the following
qualifications:
(1) it is a municipality in which the assessed valuation of
unmined iron ore on May 1, 1941, was not less than 40 percent of
the assessed valuation of all real property and in which, as of
the applicable assessment date, the assessed valuation of
unmined iron ore is not more than 60 percent of the assessed
valuation of all real property; or
(2) it is a municipality in which, on January 1, 1977 or
the applicable assessment date, there is a taconite
concentrating plant or where taconite is mined or quarried or
where there is located an electric generating plant which
qualifies as a taconite facility.
Sec. 21. Minnesota Statutes 1993 Supplement, section
273.1398, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) In this section, the
terms defined in this subdivision have the meanings given them.
(b) "Unique taxing jurisdiction" means the geographic area
subject to the same set of local tax rates.
(c) "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 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 the class rate applicable to class 2a property
over $115,000 market value and less than 320 acres is 1.15
percent, and (ii) estimated market values for the assessment two
years prior to that in which aid is payable. The exclusion of
the value of the house, garage, and one acre from the first tier
of agricultural homestead property must not be considered in
determining net tax capacity for purposes of this paragraph for
aids payable in 1994. "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), and (3), 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.
(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.
(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.
(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;
(5) basic transportation under section 124.226, subdivision
1; and
(6) referendum revenue under section 124A.03.
(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 total previous net tax capacity of the
unique taxing jurisdiction.
(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 net tax capacity based 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" 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 equalized school levies.
(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.
(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.
(k) "Growth adjustment factor" means the household
adjustment factor in the case of counties. 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.
(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.
(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.
(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.
Sec. 22. Minnesota Statutes 1993 Supplement, section
273.1398, subdivision 3, is amended to read:
Subd. 3. [DISPARITY REDUCTION AID.] (a) For taxes payable
in 1990 1995, and subsequent years, the amount of disparity aid
certified for each taxing district within each unique taxing
jurisdiction for taxes payable in the prior year shall be
multiplied by the ratio of (1) the jurisdiction's tax capacity
using the class rates for taxes payable in the year for which
aid is being computed, to (2) its tax capacity using the class
rates for taxes payable in the year prior to that for which aid
is being computed, both based upon market values for taxes
payable in the year prior to that for which aid is being
computed. For the purposes of this aid determination, disparity
reduction aid certified for taxes payable in the prior year for
a taxing entity other than a town or school district is deemed
to be county government disparity reduction aid. 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. 23. Minnesota Statutes 1992, section 273.1399,
subdivision 3, is amended to read:
Subd. 3. [CALCULATION OF EDUCATION AIDS.] For each school
district containing qualifying captured net tax capacity, the
commissioner of education shall compute a hypothetical state aid
amount that would be paid to the school district if the
qualifying captured net tax capacity were divided by the sales
ratio and included in the school district's adjusted tax
capacity for purposes of calculating equalized levies as defined
in section 273.1398, subdivision 2a 1, and associated state aids.
The commissioner of education shall notify the commissioner of
revenue of the difference between the actual aid paid and the
hypothetical aid amounts calculated for each school district,
broken down by the municipality that approved the tax increment
financing district containing the qualifying captured net tax
capacity. The resulting amount is the reduction in state tax
increment financing aid.
Sec. 24. Minnesota Statutes 1993 Supplement, section
273.166, subdivision 3, is amended to read:
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 473H.10 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.
Sec. 25. Minnesota Statutes 1992, section 275.065,
subdivision 1, is amended to read:
Subdivision 1. [PROPOSED LEVY.] Notwithstanding any law or
charter to the contrary, on or before September 15, each taxing
authority, other than a school district, shall adopt a proposed
budget and each taxing authority shall certify to the county
auditor the proposed or, in the case of a town, the final
property tax levy for taxes payable in the following year. If
the board of estimate and taxation or any similar board that
establishes maximum tax levies for taxing jurisdictions within a
first class city certifies the maximum property tax levies for
funds under its jurisdiction by charter to the county auditor by
September 15, the city shall be deemed to have certified its
levies for those taxing jurisdictions. For purposes of this
section, "taxing authority" includes all home rule and statutory
cities, towns, counties, school districts, and special taxing
districts as defined in section 275.066. The commissioner of
revenue shall determine what constitutes a special taxing
district for purposes of this section. Intermediate school
districts that levy a tax under chapter 124 or 136D, joint
powers boards established under sections 124.491 to 124.495, and
common school districts No. 323, Franconia, and No. 815,
Prinsburg, are also special taxing districts for purposes of
this section.
Sec. 26. Minnesota Statutes 1993 Supplement, 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, 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 determined under
section 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. For the purposes of this subdivision, "school
district excess referenda levy" means school district taxes for
operating purposes approved at referendums, including those
taxes based on net tax capacity as well as those based on market
value. "School district excess referenda levy" does not include
school district taxes for capital expenditures approved at
referendums or school district taxes to pay for the debt service
on bonds approved at referenda. 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;
(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.
(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. 27. Minnesota Statutes 1993 Supplement, 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, county, metropolitan special taxing districts as defined
in subdivision 3, paragraph (i), and regional library districts
shall each hold a public hearing to 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 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 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;
(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of education after the
proposed levy was certified; and
(7) the amount required under section 124.755.
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. 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 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. If the county needs a
continuation of its hearing, the continued hearing shall be held
on the third Tuesday in December. If the third Tuesday in
December falls on December 21, the county's continuation hearing
shall be held on Monday, December 20. The county auditor shall
provide for the coordination of hearing dates for all cities and
school districts within the county.
By August 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 10, the
auditor will assign the hearing date. The dates elected or
assigned must not conflict with the county hearing dates. The
Ramsey 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. The
metropolitan special taxing districts shall decide on mutually
agreeable dates for their joint public hearing and for any
continuation of that hearing and certify these dates to the
Ramsey county auditor on or before July 25. 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. 28. [275.066] [SPECIAL TAXING DISTRICTS; DEFINITION.]
For the purposes of property taxation and property tax
state aids, the term "special taxing districts" includes the
following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 115.18 to 115.37;
(3) regional sanitary sewer districts under sections 115.61
to 115.67;
(4) regional public library districts under section
134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud metropolitan transit commission under
sections 458A.01 to 458A.15;
(9) Duluth transit authority under sections 458A.21 to
458A.37;
(10) regional development commissions under sections
462.381 to 462.398;
(11) housing and redevelopment authorities under sections
469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections
469.090 to 469.1081;
(14) metropolitan council under sections 473.122 to
473.249;
(15) regional transit board under sections 473.371 to
473.449;
(16) metropolitan airports commission under sections
473.601 to 473.680;
(17) metropolitan mosquito control commission under
sections 473.701 to 473.716;
(18) Morrison county rural development financing authority
under Laws 1982, chapter 437, section 1;
(19) Croft Historical Park District under Laws 1984,
chapter 502, article 13, section 6;
(20) East Lake county medical clinic district under Laws
1989, chapter 211, sections 1 to 6;
(21) Floodwood area ambulance district under Laws 1993,
chapter 375, article 5, section 39; and
(22) any other political subdivision of the state of
Minnesota, excluding counties, school districts, cities, and
towns, that has the power to adopt and certify a property tax
levy to the county auditor, as determined by the commissioner of
revenue.
Sec. 29. [275.067] [SPECIAL TAXING DISTRICTS; ORGANIZATION
DATE; CERTIFICATION OF LEVY OR SPECIAL ASSESSMENTS.]
Special taxing districts as defined in section 275.066
organized on or before July 1 in a calendar year may certify a
levy to the county auditor in that same year for property taxes
or special assessments to be payable in the following calendar
year to the extent that the special taxing district is
authorized by statute or special act to levy taxes or special
assessments. Special taxing districts organized after July 1 in
a calendar year may not certify a levy of property taxes or
special assessments to the county auditor under the powers
granted to them by statute or special act until the following
calendar year.
Sec. 30. Minnesota Statutes 1993 Supplement, 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, 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.
For the purposes of this subdivision, "school district excess
referenda levy" means school district taxes for operating
purposes approved at referenda, including those taxes based on
market value. "School district excess referenda levy" does not
include school district taxes for capital expenditures approved
at referendums or school district taxes to pay for the debt
service on bonds approved at referenda. 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 under section
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);
(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;
(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;
(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"; and
(7) the net tax payable in the manner required in paragraph
(a).
The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clauses (3)
and (4) that local governments will receive in the following
year. In the case of a county containing a city of the first
class, 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 1993 Supplement, 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, together with associated penalties and costs,
until paid, bear interest at the rate as provided in section
279.03, regardless of whether or not a judgment for those taxes
is obtained and entered except that the provisions of section
278.08 shall govern in regard to interest for the years included
in the judgment for a suit initiated under chapter 278.
Sec. 32. Minnesota Statutes 1993 Supplement, 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 or item of personal
property shall not be included in the delinquent tax list for
such year.
Sec. 33. Minnesota Statutes 1992, section 278.05,
subdivision 5, is amended to read:
Subd. 5. Any time after the filing of the petition and
before the trial of the issues raised thereby, when the defense
or claim presented is that the property has been partially,
unfairly, or unequally assessed, or that the parcel property has
been assessed at a valuation greater than its real or actual
value, or that a parcel which is classified as homestead under
the provisions of section 273.13, subdivision 22 or 23, has been
assessed at a valuation which exceeds by ten percent or more the
valuation which the parcel would have if it were valued at the
average assessment/sales ratio for real property in the same
class in that portion of the county in which the parcel is
located, for which the commissioner is able to establish and
publish a sales ratio study, the attorney representing the
state, county, city or town in the proceedings may serve on the
petitioner, or the petitioner's attorney, and file with the
court administrator of the district court, an offer to reduce
the valuation of any tract or tracts the property or a portion
of the property to a valuation set forth in the offer. If,
within ten days thereafter, the petitioner, or the attorney,
gives notice in writing to the county attorney, or the attorney
for the city or town, that the offer is accepted, the official
notified may file the offer with proof of notice, and the court
administrator shall enter judgment accordingly. Otherwise, the
offer shall be deemed withdrawn and evidence thereof shall not
be given; and, unless a lower valuation than specified in the
offer is found by the court, no costs or disbursements shall be
allowed to the petitioner, but the costs and disbursements of
the state, county, city or town, including interest at six
percent on the tax based on the amount of the offer from and
after 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, and manufactured
homes treated as personal property, the 16th day of November, of
the year the taxes are payable, shall be taxed in its favor and
included in the judgment and when collected shall be credited to
the county revenue fund, unless the taxes were paid in full
before 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, and manufactured
homes treated as personal property, the 16th day of November, of
the year in which the taxes were payable, in which event
interest shall not be taxable.
Sec. 34. Minnesota Statutes 1993 Supplement, section
278.08, is amended to read:
278.08 [INTEREST.]
Subdivision 1. [INTEREST; PENALTY.] In the case of real or
personal 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 or personal
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
originally due and payable in the same year as the tax which was
overpaid. For the purposes of computing interest due under this
subdivision, an overpayment occurs on the date when the
cumulative total of the payments made by the taxpayer for the
payable year exceed the final total tax amount determined for
that payable year. In determining whether an overpayment has
occurred, taxpayer payments are allocated first to any penalty
imposed due to late payment of installments, then to the tax due.
Sec. 35. Minnesota Statutes 1992, section 279.37,
subdivision 8, is amended to read:
Subd. 8. The party or parties making such confession of
judgment shall pay the county auditor a fee as set by the county
board to defray the costs of processing the confession of
judgment and making the annual billings required. Fees as set
by the county board shall be paid to the court administrator of
the court for entry of judgment and for the entry of each full
or partial release thereof. The fees paid to the court
administrator under this section are in lieu of the fees
provided for in section 357.021. Fees collected under this
section shall be credited to the general revenue fund of the
county.
Sec. 36. Minnesota Statutes 1992, section 282.01,
subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATION AS CONSERVATION OR
NONCONSERVATION.] It is the general policy of this state to
encourage the best use of tax-forfeited lands, recognizing that
some lands in public ownership should be retained and managed
for public benefits while other lands should be returned to
private ownership. Parcels of land becoming the property of the
state in trust under law declaring the forfeiture of lands to
the state for taxes shall be classified by the county board of
the county in which the parcels lie as conservation or
nonconservation. In making the classification the board shall
consider the present use of adjacent lands, the productivity of
the soil, the character of forest or other growth, accessibility
of lands to established roads, schools, and other public
services, their peculiar suitability or desirability for
particular uses and the suitability of the forest resources on
the land for multiple use, sustained yield management. The
classification, furthermore, must encourage and foster a mode of
land utilization that will facilitate the economical and
adequate provision of transportation, roads, water supply,
drainage, sanitation, education, and recreation; facilitate
reduction of governmental expenditures; conserve and develop the
natural resources; and foster and develop agriculture and other
industries in the districts and places best suited to them.
In making the classification the county board may use
information made available by any office or department of the
federal, state, or local governments, or by any other person or
agency possessing pertinent information at the time the
classification is made. The lands may be reclassified from time
to time as the county board may consider necessary or desirable,
except for conservation lands held by the state free from any
trust in favor of any taxing district.
If the lands are located within the boundaries of an
organized town, with taxable valuation in excess of $20,000, or
incorporated municipality, the classification or
reclassification and sale must first be approved by the town
board of the town or the governing body of the municipality in
which the lands are located. The town board of the town or the
governing body of the municipality is considered to have
approved the classification or reclassification and sale if the
county board is not notified of the disapproval of the
classification or reclassification and sale within 90 days of
the date the request for approval was transmitted to the town
board of the town or governing body of the municipality. If the
town board or governing body desires to acquire any parcel lying
in the town or municipality by procedures authorized in this
subdivision section, it must file a written application with the
county board to withhold the parcel from public sale. The
application must be filed within 90 days of the request for
classification or reclassification and sale. The county board
shall then withhold the parcel from public sale for one year. A
clerical error made by county officials does not serve to
eliminate the request of the town board or governing body if the
board or governing body has forwarded the application to the
county auditor.
Sec. 37. Minnesota Statutes 1992, section 282.014, is
amended to read:
282.014 [COMPLETION OF SALE, FEE, CONVEYANCE RECORDED.]
Upon compliance by the purchaser with the provisions of
this chapter and with the terms and conditions of the sale, and
upon full payment for the land, plus a $25 fee in addition to
the sale price, the sale shall be complete and a conveyance of
the land shall be issued to the purchaser as provided by the
appropriate statutes according to the status of the land upon
forfeiture.
The conveyance must be forwarded to the county recorder
auditor who shall record have the conveyance recorded before
the auditor issues issuing it to the purchaser.
Sec. 38. Minnesota Statutes 1992, section 282.04,
subdivision 2, is amended to read:
Subd. 2. [RIGHTS BEFORE SALE; IMPROVEMENTS, INSURANCE,
DEMOLITION.] Until after the sale of a parcel of forfeited land
the county auditor may, with the approval of the county board of
commissioners, provide for the repair and improvement of any
building or structure located upon such parcel, if it is
determined by the county board that such repairs or improvements
are necessary for the operation, use, preservation and safety
thereof; and, if so authorized by the county board, the county
auditor may insure any such building or structure against loss
or damage resulting from fire or windstorm, may purchase
workers' compensation insurance to insure the county against
claims for injury to the persons therein employed by the county,
and may insure the county, its officers and employees against
claims for injuries to persons or property because of the
management, use or operation of such building or structure.
Such county auditor may, with the approval of the county board,
provide for the demolition of any such building or structure,
which has been determined by the county board to be within the
purview of section 299F.10, and for the sale of salvaged
materials therefrom. Such county auditor, with the approval of
the county board, may provide for the sale of abandoned personal
property under either chapter 345 or 566, as appropriate. The
net proceeds from any sale of such personal property, salvaged
materials, of timber or other products or leases made under this
law shall be deposited in the forfeited tax sale fund and shall
be distributed in the same manner as if the parcel had been sold.
Such county auditor, with the approval of the county board,
may provide for the demolition of any structure or structures on
tax-forfeited lands, if in the opinion of the county board, the
county auditor, and the land commissioner, if there be one, the
sale of such land with such structure or structures thereon, or
the continued existence of such structure or structures by
reason of age, dilapidated condition or excessive size as
compared with nearby structures, will result in a material
lessening of net tax capacities of real estate in the vicinity
of such tax-forfeited lands, or if the demolition of such
structure or structures will aid in disposing of such
tax-forfeited property.
Before the sale of a parcel of forfeited land located in an
urban area, the county auditor may with the approval of the
county board provide for the grading thereof by filling or the
removal of any surplus material therefrom, and where the
physical condition of forfeited lands is such that a reasonable
grading thereof is necessary for the protection and preservation
of the property of any adjoining owner, such adjoining property
owner or owners may make application to the county board to have
such grading done. If, after considering said application, the
county board believes that such grading will enhance the value
of such forfeited lands commensurate with the cost involved, it
may approve the same and any such work shall be performed under
the supervision of the county or city engineer, as the case may
be, and the expense thereof paid from the forfeited tax sale
fund.
Sec. 39. Minnesota Statutes 1992, section 282.301, is
amended to read:
282.301 [RECEIPTS FOR PAYMENTS.]
The purchaser shall receive from the county auditor at the
time of repurchase a receipt, in such form as may be prescribed
by the attorney general. When the purchase price of a parcel of
land shall be paid in full, the following facts shall be
certified by the county auditor to the commissioner of revenue
of the state of Minnesota: the description of land, the date of
sale, the name of the purchaser or the purchaser's assignee, and
the date when the final installment of the purchase price was
paid. Upon payment in full of the purchase price, the purchaser
or the assignee shall receive a quitclaim deed from the state,
to be executed by the commissioner of revenue. The deed must be
sent to the county recorder for recording auditor who shall have
it recorded before it is forwarded to the purchaser. Failure to
make any payment herein required shall constitute default and
upon such default and cancellation in accord with section
282.40, the right, title and interest of the purchaser or the
purchaser's heirs, representatives, or assigns in such parcel
shall terminate.
Sec. 40. Minnesota Statutes 1993 Supplement, section
290A.03, subdivision 13, is amended to read:
Subd. 13. [PROPERTY TAXES PAYABLE.] "Property taxes
payable" means the property tax exclusive of special
assessments, penalties, and interest payable on a claimant's
homestead before reductions made under section 273.13 but after
deductions made under sections 273.135, 273.1391, 273.42,
subdivision 2, and any other state paid property tax credits in
any calendar year. In the case of a claimant who makes ground
lease payments, "property taxes payable" includes the amount of
the payments directly attributable to the property taxes
assessed against the parcel on which the house is located. No
apportionment or reduction of the "property taxes payable" shall
be required for the use of a portion of the claimant's homestead
for a business purpose if the claimant does not deduct any
business depreciation expenses for the use of a portion of the
homestead in the determination of federal adjusted gross
income. For homesteads which are manufactured homes as defined
in section 274.19, subdivision 8, "property taxes payable" shall
also include the amount of the gross rent paid in the preceding
year for the site on which the homestead is located, which is
attributable to the net tax paid on the site. The amount
attributable to property taxes shall be determined by
multiplying the net tax on the parcel by a fraction, the
numerator of which is the gross rent paid for the calendar year
for the site and the denominator of which is the gross rent paid
for the calendar year for the parcel. When a homestead is owned
by two or more persons as joint tenants or tenants in common,
such tenants shall determine between them which tenant may claim
the property taxes payable on the homestead. If they are unable
to agree, the matter shall be referred to the commissioner of
revenue whose decision shall be final. Property taxes are
considered payable in the year prescribed by law for payment of
the taxes.
In the case of a claim relating to "property taxes
payable," the claimant must have owned and occupied the
homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead
property pursuant to section 273.13, subdivision 22 or 23, on or
before June 1 December 15 of the assessment year in to which
the "property taxes payable" were levied relate; or (ii) the
claimant must provide documentation from the local assessor that
application for homestead classification has been made prior to
October 1 on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has
approved the application.
Sec. 41. Minnesota Statutes 1993 Supplement, 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
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 5/16 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. 42. Minnesota Statutes 1992, section 357.18,
subdivision 2, is amended to read:
Subd. 2. Notwithstanding the provisions of any general or
special law to the contrary, the fees prescribed by this section
shall govern the filing or recording of all instruments in the
office of the county recorder other than uniform commercial code
documents, and documents filed or recorded pursuant to sections
270.69, subdivision 2, paragraph (c), 272.481 to
272.488, 277.20, and 386.77.
Sec. 43. Minnesota Statutes 1992, section 398.16, is
amended to read:
398.16 [TAX LEVY, BUDGET.]
The park district board, as soon after organization as
practicable and on or before the first day of July of each year
thereafter, shall prepare a detailed budget of its proposed
expenditures during the next fiscal year, other than those to be
met by bond issues or by revenues described in section 398.17
and section 398.09, paragraph (d), which budgets shall in no
year exceed 18 cents per person in the district as determined by
the last federal decennial census. But no such assessment shall
be made upon the people or property of a city of the first class.
As soon after organization as practicable, and on the first
day of July each year thereafter, the park district board shall
certify to the governing body of each township, town or city
included in the district, the budget adopted pursuant to this
section, together with a statement of the proportion of the
budget to be provided by such governmental subdivision. The
budget shall be apportioned among such subdivisions within the
district in the same proportion as their respective populations
bear to the total population of the district, population figures
to be based on the last federal decennial census.
For the purpose of this section the governing body of any
city means that board, council, commission or officer authorized
by law or charter to levy taxes for park and recreation purposes
and the governing body of each unorganized township means the
county board. It shall be the duty of each such governing body
in the district to provide the funds necessary to meet its
proportionate share of such budget, such funds to be raised by
tax levies or other means within the authority of said governing
bodies, and to pay the same over to the treasurer of the
district in such amounts and at such times as may fairly be
required by the park district board.
Any such governing body is hereby authorized to levy
annually upon all taxable property within its boundaries a tax
at the rate necessary to raise, at 98 percent collection, its
proportionate share of the park district's budget, which tax,
except in the case of cities of the first class, may be levied
in excess of and over and above all other tax limitations.
All moneys received from said levies shall be turned over
by the county treasurer collecting the same to the treasurer of
the park district. All moneys received by the park district
shall be used to carry out the powers and duties imposed on the
park district board by this chapter and shall not be subject to
review or reduction by other boards, commissions or councils.
If the governing body of any subdivision fails before
October 1 September 15 of any year to pay its proportionate
share of the park district budget for the next fiscal year or to
certify to the county auditor a tax levy specifically designated
for said purpose, the park district board shall, on or before
September 15, certify to the county auditor of each county in
which such governmental subdivision is located such amount of
taxes as is deemed necessary to raise such subdivision's
proportionate share of the budget, for collection with and as a
part of other taxes on taxable property within such subdivision,
which tax, may be levied in excess of and over and above all
other tax limitations.
The park district board may by resolution, submit to the
electors of the park district at a general or primary state
election the question of raising the limit on the park
district's budget from 18 cents to not to exceed 35 cents per
person in the district. Any resolution providing for an
election on raising the budgetary limit shall specify the
proposed additional amount per person in the district to be
authorized and the number of consecutive years such increase in
the limit shall be effective. The resolution shall be certified
to the county auditor of each county wherein lies any part of
the territory of the district, and the county auditor or
auditors shall cause the same to be submitted to the electors
residing within such territory at the next ensuing general or
primary election on a ballot setting forth the proposed
additional amount per person and the number of years such
increase shall be effective as provided in the resolution, and
shall forward the official returns of the judges of election in
the precincts voting on such ballot to the park district board
for canvass, and the increase shall be authorized if approved by
a majority of the electors of the district voting on such ballot.
The board may borrow money in anticipation of the
collection of all taxes levied in its behalf and issue the
negotiable notes of the district in an amount not in excess of
90 percent of the amount so levied which has not been received
by the district at the time of the borrowing. Such notes shall
mature not later than March 1 of the year following the year in
which the tax levies are to be collected and shall be payable
primarily from the proceeds of the levies anticipated thereby,
but the full faith and credit of the district shall be pledged
to the payment of the notes, and if such levies are not
sufficient to pay all principal due and interest accrued thereon
the park district board shall levy for the repayment of the
principal and interest on such notes and ad valorem tax in the
next ensuing year and for so long thereafter as may be necessary
upon all of the taxable property within its corporate limits,
which levy may be made without limitation as to rate or amount
and shall not be included in applying statutory limitations to
other tax levies.
Sec. 44. Minnesota Statutes 1992, section 398A.04,
subdivision 8, is amended to read:
Subd. 8. [TAXATION.] Before deciding to exercise the power
to tax, the authority shall give six weeks published notice in
all municipalities in the region. If a number of voters in the
region equal to five percent of those who voted for candidates
for governor at the last gubernatorial election present a
petition within nine weeks of the first published notice to the
secretary of state requesting that the matter be submitted to
popular vote, it shall be submitted at the next general
election. The question prepared shall be:
"Shall the regional rail authority have the power to impose
a property tax?
Yes .......
No ........"
If a majority of those voting on the question approve or if
no petition is presented within the prescribed time the
authority may levy a tax at any annual rate not exceeding
0.04835 percent of market value of all taxable property situated
within the municipality or municipalities named in its
organization resolution. Its recording officer shall file, on
or before September 15, in the office of the county auditor of
each county in which territory under the jurisdiction of the
authority is located a certified copy of the board of
commissioners' resolution levying the tax, and each county
auditor shall assess and extend upon the tax rolls of each
municipality named in the organization resolution the portion of
the tax that bears the same ratio to the whole amount that the
net tax capacity of taxable property in that municipality bears
to the net tax capacity of taxable property in all
municipalities named in the organization resolution.
Collections of the tax shall be remitted by each county
treasurer to the treasurer of the authority. For taxes levied
in 1991, the amount levied for light rail transit purposes under
this subdivision shall not exceed 75 percent of the amount
levied in 1990 for light rail transit purposes under this
subdivision.
Sec. 45. Minnesota Statutes 1992, section 447.34,
subdivision 2, is amended to read:
Subd. 2. [DECIDING AND CERTIFYING TAX AMOUNT.] On or
before October 10 September 15 of each year the hospital board
shall decide the amount necessary to be raised from ad valorem
tax levies to meet its expenses. No later than October 10
September 15 the secretary of the hospital board shall certify
that amount to the county auditor of each county containing
territory in the hospital district. Each county auditor shall
assess and extend upon the tax rolls for the year that portion
of the certified amount that bears the same ratio to the whole
amount as the net tax capacity of taxable property in that part
of the hospital district located in the auditor's county bears
to the net tax capacity of all taxable property in the hospital
district.
Sec. 46. Minnesota Statutes 1992, section 462.396,
subdivision 2, is amended to read:
Subd. 2. On or before August 20 each year, the commission
shall submit its proposed budget for the ensuing calendar year
showing anticipated receipts, disbursements and ad valorem tax
levy with a written notice of the time and place of the public
hearing on the proposed budget to each county auditor and
municipal clerk within the region and those town clerks who in
advance have requested a copy of the budget and notice of public
hearing. On or before October 1 September 15 each year, the
commission shall adopt, after a public hearing held not later
than September 20 15, a 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. After adoption of the budget and no later
than October 1 September 15, the secretary of the commission
shall certify to the auditor of each county within the region
the county share of the tax, which shall be an amount bearing
the same proportion to the total levy agreed on by the
commission as the net tax capacity of the county bears to the
net tax capacity of the region. For taxes levied in 1990 and
thereafter, the maximum amounts of levies made for the purposes
of sections 462.381 to 462.398 are the following amounts, less
the sum of regional planning grants from the commissioner to
that region: for Region 1, $180,337; for Region 2, $150,000;
for Region 3, $353,110; for Region 5, $195,865; for Region 6E,
$197,177; for Region 6W, $150,000; for Region 7E, $158,653; for
Region 8, $206,107; for Region 9, $343,572. The auditor of each
county in the region shall add the amount of any levy made by
the commission within the limits imposed by this subdivision to
other tax levies of the county for collection by the county
treasurer with other taxes. When collected the county treasurer
shall make settlement of the taxes with the commission in the
same manner as other taxes are distributed to political
subdivisions.
Sec. 47. Minnesota Statutes 1993 Supplement, section
469.033, subdivision 6, is amended to read:
Subd. 6. [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.]
All of the territory included within the area of operation of
any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in
this subdivision. All of the taxable property, both real and
personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied
under this subdivision. Subject to the consent by resolution of
the governing body of the city in and for which it was created,
an authority may levy each year a tax upon all taxable property
within that taxing district. The authority shall certify the
tax to the auditor of the county in which the taxing district is
located on or before five working days after December
20 September 15 in each year. The tax shall be extended,
spread, and included with and as a part of the general taxes for
state, county, and municipal purposes by the county auditor, to
be collected and enforced therewith, together with the penalty,
interest, and costs. As the tax, including any penalties,
interest, and costs, is collected by the county treasurer it
shall be accumulated and kept in a separate fund to be known as
the "housing and redevelopment project fund." The money in the
fund shall be turned over to the authority at the same time and
in the same manner that the tax collections for the city are
turned over to the city, and shall be expended only for the
purposes of sections 469.001 to 469.047. It shall be paid out
upon vouchers signed by the chair of the authority or an
authorized representative. The amount of the levy shall be an
amount approved by the governing body of the city, but shall not
exceed 0.0131 percent of taxable market value. The authority
may levy an additional levy, not to exceed 0.0013 percent of
taxable market value, to be used to defray costs of providing
informational service and relocation assistance as set forth in
section 469.012, subdivision 1. The authority shall each year
formulate and file a budget in accordance with the budget
procedure of the city in the same manner as required of
executive departments of the city or, if no budgets are required
to be filed, by August 1. The amount of the tax levy for the
following year shall be based on that budget and shall be
approved by the governing body.
Sec. 48. Minnesota Statutes 1992, section 469.060,
subdivision 6, is amended to read:
Subd. 6. [TAX LEVY.] A port authority that issues bonds
under this section, shall, before issuing them, levy a tax for
each year on the taxable property in the authority's city. The
tax must be for at least five percent more than the amount
required to pay the principal and interest on the bonds as the
principal and interest mature. The tax must be levied annually
until the principal and interest are paid in full. After the
bonds have been delivered to the purchasers, the tax may not be
repealed until the debt is paid. After the bonds are issued,
the port authority need not take any more action to authorize
extending, assessing, and collecting the tax. The authority's
secretary shall immediately send a certified copy of the levy to
the county auditor, together with full information on the bonds
for which the tax is levied. The county auditor shall extend
and assess the levied tax annually until the principal and
interest are paid in full. The port authority shall transfer
the surplus from the excess levy in this section to a sinking
fund after the principal and interest for which the tax was
levied and collected is paid. The port authority may direct its
secretary to send a certificate to the county auditor before
October September 15 in a year. The certificate must state how
much available income, including the amount in the sinking fund,
the authority will use to pay principal or interest or both on
each specified issue of the authority's bonds. The auditor
shall then reduce the bond levy for that year by that amount.
The port authority shall then set aside the certified amount and
may not use it for any purpose except to pay the principal and
interest on the bonds. The taxes in this section shall be
collected and sent to the port authority by the county treasurer
as provided in chapter 276. The taxes must be used only to pay
the bonds when due.
Sec. 49. Minnesota Statutes 1992, section 469.102,
subdivision 5, is amended to read:
Subd. 5. [TAX LEVY.] An authority that issues bonds under
this section, shall, before issuing them, levy a tax for each
year on the taxable property in the authority's city. The tax
must be for at least five percent more than the amount required
to pay the principal and interest on the bonds as the principal
and interest mature. The tax must be levied annually until the
principal and interest are paid in full. After the bonds have
been delivered to the purchasers, the tax must not be repealed
until the debt is paid. After the bonds are issued, the
authority need not take any more action to authorize extending,
assessing, and collecting the tax. On or before September 15,
the authority's secretary shall immediately send a certified
copy of the levy to the county auditor, together with full
information on the bonds for which the tax is levied. The
county auditor shall extend and assess the levied tax annually
until the principal and interest are paid in full. The
authority shall transfer the surplus from the excess levy in
this section to a sinking fund after the principal and interest
for which the tax was levied and collected is paid. The
authority may direct its secretary to send a certificate to the
county auditor before October September 15 in a year. The
certificate must state how much available income, including the
amount in the sinking fund, the authority will use to pay
principal or interest or both on each specified issue of the
authority's bonds. The auditor shall then reduce the bond levy
for that year by that amount. The authority shall then set
aside the certified amount and may not use it for any purpose
except to pay the principal and interest on the bonds. The
taxes in this section shall be collected and sent to the
authority by the county treasurer as provided in chapter 276.
The taxes must be used only to pay the bonds when due.
Sec. 50. Minnesota Statutes 1992, section 469.177,
subdivision 9, is amended to read:
Subd. 9. [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET
TAX CAPACITY.] (a) If the amount of tax paid on captured net tax
capacity exceeds the amount of tax increment, the county auditor
shall distribute the excess to the municipality, county, and
school district as follows: each governmental unit's share of
the excess equals
(1) the total amount of the excess for the tax increment
financing district, multiplied by
(2) a fraction, the numerator of which is the current local
tax rate of the governmental unit less the governmental unit's
local tax rate for the year the original local tax rate for the
district was certified (in no case may this amount be less than
zero) and the denominator of which is the sum of the numerators
for the municipality, county, and school district.
If the entire increase in the local tax rate is attributable to
a taxing district, other than the municipality, county, or
school district, then the excess must be distributed to the
municipality, county, and school district in proportion to their
respective local tax rates.
The school district's tax rate must be divided into the
portion of the tax rate attributable (1) to state equalized
levies, and (2) unequalized levies. Equalized levies mean the
levies identified in section 273.1398, subdivision 2a 1, and
unequalized levies mean the rest of the school district's
levies. The calculations under clause (2) must determine the
amount of excess taxes attributable to each portion of the
school district's tax rate. If one of the portions of the
change in the school district tax rate is less than zero and the
combined change is greater than zero, the combined rate must be
used and all the school district's share of excess taxes
allocated to that portion of the tax rate.
(b) The amounts distributed shall be deducted in computing
the levy limits of the taxing district for the succeeding
taxable year. In the case of a school district, only the
proportion of the excess taxes attributable to unequalized
levies that are subject to a fixed dollar amount levy limit
shall be deducted from the levy limit.
(c) In the case of distributions to a school district that
are attributable to state equalized levies, the county auditor
shall report amounts distributed to the commissioner of
education in the same manner as provided for excess increments
under section 469.176, subdivision 2, and the distribution shall
be deducted from the school district's state aid payments.
Sec. 51. Minnesota Statutes 1993 Supplement, section
473.13, subdivision 1, is amended to read:
Subdivision 1. [BUDGET.] On or before December 20
September 15 of each year the council, after before the public
hearing required in section 275.065, shall adopt a final
proposed 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 proposed
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 a final budget for the ensuing
year and no later than 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. 52. Minnesota Statutes 1992, section 473.167,
subdivision 3, is amended to read:
Subd. 3. [TAX.] The council may levy a tax on all taxable
property in the metropolitan area, as defined in section
473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way
acquisition loan fund shall be certified by the council, levied,
and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and
any other law and shall not affect the amount or rate of taxes
which may be levied by the council or any metropolitan agency or
local governmental unit. The amount of the levy shall be as
determined and certified by the council, except as otherwise
provided in this subdivision.
The property tax levied by the metropolitan council for the
right-of-way acquisition loan fund shall not exceed the
following amount for the years specified:
(a) for taxes payable in 1988, the product of 5/100 of one
mill multiplied by the total assessed valuation of all taxable
property located within the metropolitan area as adjusted by the
provisions of Minnesota Statutes 1986, sections 272.64; 273.13,
subdivision 7a; and 275.49;
(b) for taxes payable in 1989, except as provided in
section 473.249, subdivision 3, the product of (1) the
metropolitan council's property tax levy limitation for the
right-of-way acquisition loan fund for the taxes payable year
1988 determined under clause (a) multiplied by (2) an index for
market valuation changes equal to the assessment year 1988 total
market valuation of all taxable property located within the
metropolitan area divided by the assessment year 1987 total
market valuation of all taxable property located within the
metropolitan area;
(c) for taxes payable in 1990, an amount not to exceed
$2,700,000; and
(d) for taxes payable in 1991 and subsequent years, the
product of (1) the metropolitan council's property tax levy
limitation for the right-of-way acquisition loan fund for the
taxes payable in 1988 determined under clause (a) multiplied by
(2) an index for market valuation changes equal to the total
market valuation of all taxable property located within the
metropolitan area for the current assessment taxes payable year
divided by the total market valuation of all taxable property
located within the metropolitan area for the 1987 assessment
year taxes payable in 1988.
For the purpose of determining the metropolitan council's
property tax levy limitation for the right-of-way acquisition
loan fund for the taxes payable year 1988 and subsequent years
under this subdivision, "total market valuation" means the total
market valuation of all taxable property within the metropolitan
area without valuation adjustments for fiscal disparities
(chapter 473F), tax increment financing (sections 469.174 to
469.179), and high voltage transmission lines (section 273.425).
The property tax levied under this subdivision for taxes
payable in 1988 and subsequent years shall not be levied at a
rate higher than that determined by the metropolitan council to
be sufficient, considering the other anticipated revenues of and
disbursements from the right-of-way acquisition loan fund, to
produce a balance in the loan fund at the end of the next
calendar year equal to twice the amount of the property tax levy
limitation for taxes payable in the next calendar year
determined under this section.
Sec. 53. Minnesota Statutes 1992, section 473.249,
subdivision 1, is amended to read:
Subdivision 1. The metropolitan council may levy a tax on
all taxable property in the metropolitan area defined in section
473.121 to provide funds for the purposes of sections 473.121 to
473.249 and for the purpose of carrying out other
responsibilities of the council as provided by law. This tax
for general purposes shall be levied and collected in the manner
provided by section 473.13.
The property tax levied by the metropolitan council for
general purposes shall not exceed the following amount for the
years specified:
(a) for taxes payable in 1988, the product of 8/30 of one
mill multiplied by the total assessed valuation of all taxable
property located within the metropolitan area as adjusted by the
provisions of Minnesota Statutes 1986, sections 272.64; 273.13,
subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the
metropolitan council's property tax levy limitation for general
purposes for the taxes payable year 1988 determined under clause
(a) multiplied by (2) an index for market valuation changes
equal to the assessment year 1988 total market valuation of all
taxable property located within the metropolitan area divided by
the assessment year 1987 total market valuation of all taxable
property located within the metropolitan area; and
(c) for taxes payable in 1990 and subsequent years, the
product of (1) the metropolitan council's property tax levy
limitation for general purposes for the previous year determined
under this subdivision multiplied by (2) the lesser of
(i) an index for market valuation changes equal to the
total market valuation of all taxable property located within
the metropolitan area for the current assessment taxes payable
year divided by the total market valuation of all taxable
property located within the metropolitan area for the
previous assessment taxes payable year;
(ii) an index equal to the implicit price deflator for
state and local government purchases of goods and services for
the most recent month for which data are available divided by
the implicit price deflator for state and local government
purchases of goods and services for the same month of the
previous year; or
(iii) 103 percent.
For the purpose of determining the metropolitan council's
property tax levy limitation for general purposes for the taxes
payable year 1988 and subsequent years under this subdivision,
"total market valuation" means the total market valuation of all
taxable property within the metropolitan area without valuation
adjustments for fiscal disparities (chapter 473F), tax increment
financing (sections 469.174 to 469.179), and high voltage
transmission lines (section 273.425).
Sec. 54. Minnesota Statutes 1992, section 473.446,
subdivision 1, is amended to read:
Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.]
For the purposes of sections 473.404 to 473.449 and the
metropolitan transit system, except as otherwise provided in
this subdivision, the regional transit board shall levy each
year upon all taxable property within the metropolitan transit
taxing district, defined in subdivision 2, a transit tax
consisting of:
(a) an amount which shall be used for payment of the
expenses of operating transit and paratransit service and to
provide for payment of obligations issued by the commission
under section 473.436, subdivision 6;
(b) an additional amount, if any, the board determines to
be necessary to provide for the full and timely payment of its
certificates of indebtedness and other obligations outstanding
on July 1, 1985, to which property taxes under this section have
been pledged; and
(c) an additional amount necessary to provide full and
timely payment of certificates of indebtedness, bonds, including
refunding bonds or other obligations issued or to be issued
under section 473.39 by the council for purposes of acquisition
and betterment of property and other improvements of a capital
nature and to which the council or board has specifically
pledged tax levies under this clause.
The property tax levied by the regional transit board for
general purposes under clause (a) must not exceed the following
amount for the years specified:
(1) for taxes payable in 1988, the product of two mills
multiplied by the total assessed valuation of all taxable
property located within the metropolitan transit taxing district
as adjusted by the provisions of Minnesota Statutes 1986,
sections 272.64; 273.13, subdivision 7a; and 275.49;
(2) for taxes payable in 1989, the product of (i) the
regional transit board's property tax levy limitation for
general purposes for the taxes payable year 1988 determined
under clause (1) multiplied by (ii) an index for market
valuation changes equal to the assessment year 1988 total market
valuation of all taxable property located within the
metropolitan transit taxing district divided by the assessment
year 1987 total market valuation of all taxable property located
within the metropolitan transit taxing district; and
(3) for taxes payable in 1990 and subsequent years, the
product of (i) the regional transit board's property tax levy
limitation for general purposes for the previous year determined
under this subdivision multiplied by (ii) an index for market
valuation changes equal to the total market valuation of all
taxable property located within the metropolitan transit taxing
district for the current assessment taxes payable year divided
by the total market valuation of all taxable property located
within the metropolitan transit taxing district for the previous
assessment taxes payable year. For the taxes payable year 1995,
the index for market valuation changes shall be multiplied by an
amount equal to the sum of the regional transit board's property
tax levy limitation for the taxes payable year 1994 and
$160,665. The $160,665 increase shall be a permanent adjustment
to the levy limit base used in determining the regional transit
board's property tax levy limitation for general purposes for
subsequent taxes payable years.
For the purpose of determining the regional transit board's
property tax levy limitation for general purposes for the taxes
payable year 1988 and subsequent years under this subdivision,
"total market valuation" means the total market valuation of all
taxable property within the metropolitan transit taxing district
without valuation adjustments for fiscal disparities (chapter
473F), tax increment financing (sections 469.174 to 469.179),
and high voltage transmission lines (section 273.425).
The county auditor shall reduce the tax levied pursuant to
this subdivision on all property within statutory and home rule
charter cities and towns that receive full-peak service and
limited off-peak service by an amount equal to the tax levy that
would be produced by applying a rate of 0.510 percent of net tax
capacity on the property. The county auditor shall reduce the
tax levied pursuant to this subdivision on all property within
statutory and home rule charter cities and towns that receive
limited peak service by an amount equal to the tax levy that
would be produced by applying a rate of 0.765 percent of net tax
capacity on the property. The amounts so computed by the county
auditor shall be submitted to the commissioner of revenue as
part of the abstracts of tax lists required to be filed with the
commissioner under section 275.29. Any prior year adjustments
shall also be certified in the abstracts of tax lists. The
commissioner shall review the certifications to determine their
accuracy and may make changes in the certification as necessary
or return a certification to the county auditor for
corrections. The commissioner shall pay to the regional transit
board the amounts certified by the county auditors on the dates
provided in section 273.1398. There is annually appropriated
from the general fund in the state treasury to the department of
revenue the amounts necessary to make these payments.
For the purposes of this subdivision, "full-peak and
limited off-peak service" means peak period regular route
service, plus weekday midday regular route service at intervals
longer than 60 minutes on the route with the greatest frequency;
and "limited peak period service" means peak period regular
route service only.
The regional transit board shall annually determine which
cities and towns qualify for the 0.510 or 0.765 tax capacity
rate reduction and certify this list to the county auditor on or
before September 15. No changes shall be made to the list after
September 15 of the same levy year.
Sec. 55. Minnesota Statutes 1992, section 473.661,
subdivision 2, is amended to read:
Subd. 2. The commissioners shall on or before October 10th
September 15 of each calendar year, certify to the county
auditor of each county in the metropolitan area the total amount
to be raised by the commissioners during the next calendar year
through taxation, and each county auditor shall extend and
assess against all property in the auditor's county which is
then taxable by the corporation for the purpose for which the
levy is made under the provisions of section 473.621,
subdivision 5, that sum which bears the same proportion to the
total amount as the net tax capacity of such taxable property
bears to the net tax capacity of all property in the
metropolitan area which is then taxable by the corporation for
the purpose for which the levy is made. The county auditor
shall extend, spread, and include the same with and as a part of
the general taxes for state, county, and municipal purposes, to
be collected and enforced therewith, together with penalties and
interest and costs, and the county treasurer, upon collection of
the same, shall transfer the same to the treasurer of the
corporation.
Sec. 56. Minnesota Statutes 1992, section 473.711,
subdivision 2, is amended to read:
Subd. 2. The metropolitan mosquito control commission
shall prepare an annual budget. The budget may provide for
expenditures in an amount not exceeding the property tax levy
limitation determined in this subdivision. The commission may
levy a tax on all taxable property in the district as defined in
section 473.702 to provide funds for the purposes of sections
473.701 to 473.716. The tax shall not exceed the property tax
levy limitation determined in this subdivision. A participating
county may agree to levy an additional tax to be used by the
commission for the purposes of sections 473.701 to 473.716 but
the sum of the county's and commission's taxes may not exceed
the county's proportionate share of the property tax levy
limitation determined under this subdivision based on the ratio
of its total net tax capacity to the total net tax capacity of
the entire district as adjusted by section 270.12, subdivision
3. The auditor of each county in the district shall add the
amount of the levy made by the district to other taxes of the
county for collection by the county treasurer with other taxes.
When collected, the county treasurer shall make settlement of
the tax with the district in the same manner as other taxes are
distributed to political subdivisions. No county shall levy any
tax for mosquito, disease vectoring tick, and black gnat
(Simuliidae) control except under sections 473.701 to 473.716.
The levy shall be in addition to other taxes authorized by law.
The property tax levied by the metropolitan mosquito
control commission shall not exceed the following amount for the
years specified:
(a) for taxes payable in 1988, the product of six-tenths on
one mill multiplied by the total assessed valuation of all
taxable property located within the district as adjusted by the
provisions of Minnesota Statutes 1986, sections 272.64; 273.13,
subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the
commission's property tax levy limitation for the taxes payable
year 1988 determined under clause (a) multiplied by (2) an index
for market valuation changes equal to the assessment year 1988
total market valuation of all taxable property located within
the district divided by the assessment year 1987 total market
valuation of all taxable property located within the district;
(c) for taxes payable in 1990, 1991, and 1992, the product
of (1) the commission's property tax levy limitation for the
previous year determined under this subdivision multiplied by
(2) an index for market valuation changes equal to the total
market valuation of all taxable property located within the
district for the current assessment year divided by the total
market valuation of all taxable property located within the
district for the previous assessment year;
(d) for taxes payable in 1993, the product of (1) the
commission's certified property tax levy for the previous year
determined under this subdivision multiplied by (2) an index for
market valuation changes equal to the total market valuation of
all taxable property located within the district for the current
assessment taxes payable year divided by the total market
valuation of all taxable property located within the district
for the previous assessment taxes payable year; and
(e) for taxes payable in 1994 and subsequent years, the
product of (1) the commission's property tax levy limitation for
the previous year determined under this subdivision multiplied
by (2) an index for market valuation changes equal to the total
market valuation of all taxable property located within the
district for the current assessment year divided by the total
market valuation of all taxable property located within the
district for the previous assessment year.
For the purpose of determining the commission's property
tax levy limitation for the taxes payable year 1988 and
subsequent years under this subdivision, "total market
valuation" means the total market valuation of all taxable
property within the district without valuation adjustments for
fiscal disparities (chapter 473F), tax increment financing
(sections 469.174 to 469.179), and high voltage transmission
lines (section 273.425).
Sec. 57. Minnesota Statutes 1992, section 477A.011,
subdivision 1b, is amended to read:
Subd. 1b. [TOWN.] "Town" means a township with a
population of less than 5,000.
Sec. 58. Minnesota Statutes 1992, section 477A.0121,
subdivision 4, is amended to read:
Subd. 4. [PUBLIC DEFENDER COSTS.] Each calendar year, four
percent of the total appropriation for this section shall be
retained by the commissioner of revenue to make reimbursements
to the commissioner of finance for payments made under section
611.27. The reimbursements shall be to defray the additional
costs associated with court-ordered counsel under section
611.27. Any retained amounts not used for reimbursement in a
year shall be carried over and distributed as additional
included in the next distribution of county criminal justice aid
in the following that is certified to the county auditors for
the purpose of property tax reduction for the next taxes payable
year.
Sec. 59. Minnesota Statutes 1993 Supplement, section
477A.013, subdivision 8, is amended 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 is limited to an amount such
that the total aid to the city does 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 the total aid it received in the previous
year.
Sec. 60. Minnesota Statutes 1992, section 477A.0132,
subdivision 3, is amended to read:
Subd. 3. [ORDER OF AID REDUCTIONS.] The aid reduction to a
local government as calculated under subdivisions 1 and 2, is
first applied to its local government aid under sections
477A.012 and 477A.013 excluding aid under section 477A.013,
subdivision 5; then, if necessary, to its equalization aid under
section 477A.013, subdivision 5; then if necessary, to its
homestead and agricultural credit aid under section 273.1398,
subdivision 2; and then, if necessary, to its disparity
reduction aid under section 273.1398, subdivision 3; and then,
if necessary, to its transition credit under section 273.1398,
subdivision 5. No aid payment may be less than $0. Aid
reductions under this section in any given year shall be divided
equally between the July and December aid payments unless
specified otherwise.
Sec. 61. Minnesota Statutes 1992, section 477A.014,
subdivision 1, is amended to read:
Subdivision 1. [CALCULATIONS AND PAYMENTS.] The
commissioner of revenue shall make all necessary calculations
and make payments pursuant to sections 477A.012, 477A.013,
477A.0132, and 477A.03 directly to the affected taxing
authorities annually. In addition, the commissioner shall
notify the authorities of their aid amounts, as well as the
computational factors used in making the calculations for their
authority, and those statewide total figures that are pertinent,
before August 1 of the year preceding the aid distribution
year. For the purposes of this subdivision, aid is determined
for a city or town based on its city or town status as of June
30 of the year preceding the aid distribution year. If the
effective date for a municipal incorporation, consolidation,
annexation, detachment, dissolution, or township organization is
on or before June 30 of the year preceding the aid distribution
year, such change in boundaries or form of government shall be
recognized for aid determinations for the aid distribution
year. If the effective date for a municipal incorporation,
consolidation, annexation, detachment, dissolution, or township
organization is after June 30 of the year preceding the aid
distribution year, such change in boundaries or form of
government shall not be recognized for aid determinations until
the following year.
Sec. 62. Minnesota Statutes 1992, section 477A.15, is
amended to read:
477A.15 [TACONITE AID REIMBURSEMENT.]
Any school district in which is located property which had
been entitled to a reduction of tax pursuant to Minnesota
Statutes 1978, section 273.135, subdivision 2, clause (c), shall
receive in 1981 and subsequent years an amount equal to the
amount it received in 1980 pursuant to Minnesota Statutes 1978,
section 298.28, subdivision 1, clause (3)(b). Payments shall be
made pursuant to this section by the commissioner of revenue to
the taxing jurisdictions on July 15 of 1981 and each year
thereafter the date in each calendar year when the first
installment is paid under section 477A.015.
Sec. 63. Laws 1989, chapter 211, section 4, subdivision 2,
is amended to read:
Subd. 2. [DETERMINING AND CERTIFYING TAX AMOUNT.] On or
before October 10 September 15 of each year, the medical clinic
board shall determine the amount necessary to be raised from
property tax levies to meet its expenses. No later than October
10 September 15, the secretary of the board shall certify that
amount to the Lake county auditor.
Sec. 64. Laws 1992, chapter 511, article 4, section 29, is
amended to read:
Sec. 29. [EFFECTIVE DATES.]
Sections 1, 12, 14, 15, and 26 to 28 are effective the day
following final enactment. Sections 2 and 25 are effective for
taxes levied in 1989, payable in 1990, and thereafter, and for
aids and credits payable in 1990 and thereafter. Sections 3, 4
to 7, and 13 are effective for taxes levied in 1992, payable in
1993, and thereafter. Section 8 is effective for aids payable
after June 30, 1992. Section 9 is effective for school year
1992-1993 and for homestead and agricultural credit aid and
local government aids for taxes payable in 1992, and
thereafter. Sections 10 and 11 are effective for aids payable
in 1992 and thereafter. Sections 16 to and 18 are effective for
taxes becoming delinquent after December 31, 1991. Section 17
is effective for taxes becoming delinquent after December 31,
1991, and for confessions of judgment entered into after May 31,
1994, when the judgment includes taxes which become delinquent
prior to January 1, 1992. Section 19 is effective for costs
incurred after June 30, 1992. Section 20 is effective July 1,
1982, and thereafter. Section 21 is effective June 1, 1990, and
thereafter, provided further that no refunds of overpayments and
no collection of underpayments will be made for fees paid prior
to June 1, 1990. Section 22 is effective for abatements granted
in 1992 and thereafter. Section 23 is effective for
supplementary amortization state aid payable after June 30,
1991. Section 24 is effective for new tax increment financing
districts for which the certification request is, or has been,
filed with the county auditor after May 1, 1988, but does not
apply to amendments adding geographic area to an existing
district.
Sec. 65. [REPEALER.]
Minnesota Statutes 1992, sections 16A.70; 16A.71; and
273.22; Minnesota Statutes 1993 Supplement, section 273.1398,
subdivision 2a; Laws 1993, First Special Session chapter 1,
article 2, section 6, are repealed.
Sec. 66. [EFFECTIVE DATES.]
Sections 5, 6, 8, 13, 36, 37, 39, 42, 58, and 65 are
effective the day following final enactment. Section 64 is
effective June 1, 1994. Sections 35 and 38 are effective July
1, 1994. Section 4 is effective for assessment year 1992 and
thereafter. Sections 9 and 14 are effective for taxes payable
in 1992 and thereafter. Sections 12, 15, 23, and 50 are
effective for taxes payable in 1994 and thereafter. Sections
21, 22, 24, 57, 61, and 62 are effective for aids payable in
1994 and thereafter. Section 28 is effective for taxes and aids
payable in 1994 and thereafter. Section 16 is effective for
assessment year 1994 and thereafter. Sections 1 to 3, 7, 10, 18
to 20, 25, 27, 29 to 34, 43 to 49, 51 to 56, and 63 are
effective for taxes payable in 1995 and thereafter. Section 40
is effective for refunds payable for rents paid in 1993 and
property taxes payable in 1994, and thereafter.
ARTICLE 2
INCOME TAXES
Section 1. Minnesota Statutes 1992, section 289A.08,
subdivision 7, is amended to read:
Subd. 7. [COMPOSITE INCOME TAX RETURNS FOR NONRESIDENT
PARTNERS, SHAREHOLDERS, AND BENEFICIARIES.] (a) The commissioner
may allow a partnership with five or more nonresident partners
to file a composite return and to pay the tax on behalf of
nonresident partners who have no other Minnesota source income.
This composite return must include the names, addresses, social
security numbers, income allocation, and tax liability for the
nonresident partners electing to be covered by the composite
return.
(b) The computation of a partner's tax liability must be
determined by multiplying the income allocated to that partner
by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness
deductions, standard deductions, or personal exemptions are not
allowed.
(c) The partnership must submit a request to use this
composite return filing method for nonresident partners. The
requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a
composite return is considered a request to use the composite
return filing method.
(d) The electing partner must not have any Minnesota source
income other than the income from the partnership and other
electing partnerships. If it is determined that the electing
partner has other Minnesota source income, the inclusion of the
income and tax liability for that partner under this provision
will not constitute a return to satisfy the requirements of
subdivision 1. The tax paid for the individual as part of the
composite return is allowed as a payment of the tax by the
individual on the date on which the composite return payment was
made. If the electing nonresident partner has no other
Minnesota source income, filing of the composite return is a
return for purposes of subdivision 1.
(e) This subdivision does not negate the requirement that
an individual pay estimated tax if the individual's liability
would exceed the requirements set forth in section 289A.25. A
composite estimate may, however, be filed in a manner similar to
and containing the information required under paragraph (a).
(f) If an electing partner's share of the partnership's
gross income from Minnesota sources is less than the filing
requirements for a nonresident under this subdivision, the tax
liability is zero. However, a statement showing the partner's
share of gross income must be included as part of the composite
return.
(g) The election provided in this subdivision is not
available to any partner other than a full-year nonresident
individual who has no other Minnesota source income.
(h) A corporation defined in section 290.9725 and its
nonresident shareholders may make an election under this
paragraph. The provisions covering the partnership apply to the
corporation and the provisions applying to the partner apply to
the shareholder.
(i) Estates and trusts distributing current income only and
the nonresident individual beneficiaries of the estates or
trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or
trust. The provisions applying to the partner apply to the
beneficiary.
Sec. 2. Minnesota Statutes 1992, section 289A.25,
subdivision 5, is amended to read:
Subd. 5. [AMOUNT OF REQUIRED INSTALLMENT.] The amount of
any installment required to be paid shall be 25 percent of the
required annual payment except as provided in clause (3). The
term "required annual payment" means the lesser of
(1) 90 percent of the tax shown on the return for the
taxable year or 90 percent of the tax for the year if no return
is filed, or
(2) the total tax liability shown on the return of the
individual taxpayer for the preceding taxable year, if a return
showing a liability for the taxes was filed by the individual
taxpayer for the preceding taxable year of 12 months, or
(3) an amount equal to the applicable percentage of the tax
for the taxable year computed by placing on an annualized basis
the taxable income and alternative minimum taxable income for
the months in the taxable year ending before the month in which
the installment is required to be paid. The applicable
percentage of the tax is 22.5 percent in the case of the first
installment, 45 percent for the second installment, 67.5 percent
for the third installment, and 90 percent for the fourth
installment. For purposes of this clause, the taxable income
and alternative minimum taxable income shall be placed on an
annualized basis by
(i) multiplying by 12 (or in the case of a taxable year of
less than 12 months, the number of months in the taxable year)
the taxable income and alternative minimum taxable income
computed for the months in the taxable year ending before the
month in which the installment is required to be paid; and
(ii) dividing the resulting amount by the number of months
in the taxable year ending before the month in which the
installment date falls.
Sec. 3. Minnesota Statutes 1993 Supplement, 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 the amounts determined under the following
clauses (1) to (3)
(i) (1) interest income as defined in section 290.01,
subdivision 19b, clause (1);
(ii) (2) an overpayment of state income tax as provided by
section 290.01, subdivision 19b, clause (2), to the extent
included in federal alternative minimum taxable income; and
(iii) (3) 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, 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. 4. Minnesota Statutes 1992, section 290.17,
subdivision 2, is amended to read:
Subd. 2. [INCOME NOT DERIVED FROM CONDUCT OF A TRADE OR
BUSINESS.] The income of a taxpayer subject to the allocation
rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to
(f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from
labor or personal or professional services is assigned to this
state if, and to the extent that, the labor or services are
performed within it; all other income from such sources is
treated as income from sources without this state.
Severance pay shall be considered income from labor or
personal or professional services.
(2) In the case of an individual who is a nonresident of
Minnesota and who is an athlete or entertainer, income from
compensation for labor or personal services performed within
this state shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for an
individual who is a nonresident salaried athletic team employee
shall be determined by using a fraction in which the denominator
contains the total number of days in which the individual is
under a duty to perform for the employer, and the numerator is
the total number of those days spent in Minnesota; and
(ii) The amount of income to be assigned to Minnesota for
an individual who is a nonresident, and who is an athlete or
entertainer not listed in clause (i), for that person's athletic
or entertainment performance in Minnesota shall be determined by
assigning to this state all income from performances or athletic
contests in this state.
(3) For purposes of this section, amounts received by a
nonresident from the United States, its agencies or
instrumentalities, the Federal Reserve Bank, the state of
Minnesota or any of its political or governmental subdivisions,
or a Minnesota volunteer firefighters' relief association, by
way of payment as a pension, public employee retirement benefit,
or any combination of these, or as a retirement or survivor's
benefit made from a plan qualifying under section 401, 403, 408,
or 409, or as defined in section 403(b) or 457 of the Internal
Revenue Code of 1986, as amended through December 31, 1991, are
not considered income derived from carrying on a trade or
business or from performing personal or professional services in
Minnesota, and are not taxable under this chapter.
(b) Income or gains from tangible property located in this
state that is not employed in the business of the recipient of
the income or gains must be assigned to this state.
(c) Except upon the sale of a partnership interest or the
sale of stock of an S corporation, Income or gains from
intangible personal property not employed in the business of the
recipient of the income or gains must be assigned to this state
if the recipient of the income or gains is a resident of this
state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to
this state in the ratio of the original cost of partnership
tangible property in this state to the original cost of
partnership tangible property everywhere, determined at the time
of the sale. If more than 50 percent of the value of the
partnership's assets consists of intangibles, gain or loss from
the sale of the partnership interest is allocated to this state
in accordance with the sales factor of the partnership for its
first full tax period immediately preceding the tax period of
the partnership during which the partnership interest was sold.
Gain on the sale of goodwill or income from a covenant not
to compete that is connected with a business operating all or
partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year
of sale was assignable to Minnesota under subdivision 3.
(d) Income from the operation of a farm shall be assigned
to this state if the farm is located within this state and to
other states only if the farm is not located in this state.
(e) Income from winnings on Minnesota pari-mutuel betting
tickets, the Minnesota state lottery, and lawful gambling as
defined in section 349.12, subdivision 24, conducted within the
boundaries of the state of Minnesota shall be assigned to this
state.
(f) All items of gross income not covered in paragraphs (a)
to (e) and not part of the taxpayer's income from a trade or
business shall be assigned to the taxpayer's domicile.
Sec. 5. Minnesota Statutes 1992, section 290.371,
subdivision 2, is amended to read:
Subd. 2. [EXEMPTIONS.] A corporation is not required to
file a notice of business activities report if:
(1) by the end of an accounting period for which it was
otherwise required to file a notice of business activities
report under this section, it had received a certificate of
authority to do business in this state;
(2) a timely return or report has been filed under section
290.05, subdivision 4; or 289A.08;
(3) the corporation is exempt from taxation under this
chapter pursuant to section 290.05, subdivision 1;
(4) the corporation's activities in Minnesota, or the
interests in property which it owns, consist solely of
activities or property exempted from jurisdiction to tax under
section 290.015, subdivision 3, paragraph (b); or
(5) the corporation has a valid election in effect under
section 1362 of the Internal Revenue Code of 1986, as amended
through December 31, 1991.
Sec. 6. Laws 1993, chapter 375, article 2, section 37, is
amended to read:
Sec. 37. [EFFECTIVE DATE.]
Section 1 is effective for property taxes payable in 1993
and thereafter.
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.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 4 are effective for taxable years beginning
after December 31, 1993. Section 5 is effective the day
following final enactment. Section 6 is effective for property
taxes payable in 1994 and thereafter.
ARTICLE 3
SALES TAXES
Section 1. Minnesota Statutes 1993 Supplement, 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 service, charges for
premium service, and any other charges for any other
pay-per-view, monthly, or similar television services;
(h) Notwithstanding section 297A.25, subdivisions 9 and 12,
the sales of racehorses including claiming sales and fees paid
for breeding 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;
tree, bush, shrub and stump removal; 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. 2. Minnesota Statutes 1992, section 297A.021,
subdivision 4, is amended to read:
Subd. 4. [PUBLICATION IN STATE REGISTER.] The commissioner
of revenue shall publish in the State Register by November 1 of
each year a list of the counties imposing the local option sales
tax under this section, if the commissioner has received
notification by August 1 that a county or counties will be
imposing or rescinding the local option sales tax under this
section.
Sec. 3. Minnesota Statutes 1993 Supplement, section
297A.07, subdivision 1, is amended to read:
Subdivision 1. [HEARINGS.] If any person fails to comply
with this chapter or the sales and use tax provisions of chapter
289A or the rules adopted under this chapter thereunder, without
reasonable cause, the commissioner may schedule a hearing
requiring the person to show cause why the permit 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. 4. Minnesota Statutes 1992, section 297B.11, is
amended to read:
297B.11 [REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE;
POWERS.]
The state commissioner of revenue is charged with the
administration of the motor vehicle excise tax. The
commissioner may prescribe all rules not inconsistent with the
provisions of this chapter, necessary and advisable for the
proper and efficient administration of the law. The collection
of this motor vehicle excise tax shall be carried out by the
motor vehicle registrar who shall act as the agent of the
commissioner and who shall be subject to all rules not
inconsistent with the provisions of this chapter, that may be
prescribed by the commissioner.
The provisions of chapter chapters 289A and 297A relating
to the commissioner's authority to audit, assess, and collect
the tax are applicable to the motor vehicle excise tax. The
commissioner may impose civil penalties as provided in chapter
chapters 289A and 297A, and the additional tax and penalties are
subject to interest at the rate provided in section 270.75.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective the day following final
enactment.
ARTICLE 4
SPECIAL TAXES
Section 1. Minnesota Statutes 1992, section 115A.923,
subdivision 1, is amended to read:
Subdivision 1. [AMOUNT OF FEE.] (a) The operator of a
mixed municipal solid waste disposal facility outside of the
metropolitan area shall charge a fee on solid waste accepted and
disposed of at the facility as follows:
(1) a facility that weighs the waste that it accepts must
charge a fee of $2 per cubic yard based on equivalent cubic
yards of waste accepted at the entrance of the facility;
(2) a facility that does not weigh the waste but that
measures the volume of the waste that it accepts must charge a
fee of $2 per cubic yard of waste accepted at the entrance of
the facility; and
(3) waste residue from recycling facilities at which
recyclable materials are separated or processed for the purpose
of recycling, or from energy and resource recovery facilities at
which solid waste is processed for the purpose of extracting,
reducing, converting to energy, or otherwise separating and
preparing solid waste for reuse is exempt from the fee imposed
by this subdivision if there is at least an 85 percent volume
reduction in the solid waste processed.
(b) To qualify for exemption under paragraph (a), clause
(3), waste residue must be brought to a disposal facility
separately. The commissioner of revenue, with the advice and
assistance of the agency, shall prescribe procedures for
determining the amount of waste residue qualifying for exemption.
Sec. 2. Minnesota Statutes 1992, section 297.01,
subdivision 14, is amended to read:
Subd. 14. "Subjobber" means any person who acquires
stamped cigarettes or other state's stamped cigarettes for the
primary purpose of resale to retailers, and any licensed
distributor who delivers to and sells or distributes stamped
cigarettes from a place of business other than that licensed in
the distributor's license. The definition of subjobber does not
include the occasional sale of stamped cigarettes from one
retailer to another. Notwithstanding the foregoing, "subjobber"
shall also mean any person who is a vending machine operator. A
vending machine operator is any person whose principal business
is operating, or owning and leasing to operators, machines for
the vending of merchandise or service.
For the purpose of this section, any subjobber that sells
at retail must maintain a separate inventory, substantiated with
invoices, that reflect the cigarettes were acquired for retail
sale.
Sec. 3. Minnesota Statutes 1992, section 297.11,
subdivision 5, is amended to read:
Subd. 5. [TRANSPORTING UNSTAMPED PACKAGES.] No person
shall transport into, or receive, carry, or move from place to
place in this state, any packages of cigarettes not stamped in
accordance with the provisions of Laws 1951, this chapter 569,
except in the course of interstate commerce, unless the
cigarettes are moving from a public warehouse to a distributor
upon orders from the manufacturer or distributor. This
subdivision shall not apply to a person carrying for personal
use not more than 200 cigarettes when those cigarettes have had
the individual packages or seals thereof broken and are intended
for personal use by that person and not to be sold or offered
for sale.
Common carriers and contract carriers transporting
cigarettes into this state shall file with the commissioner
reports of all such shipments other than those which are
delivered to public warehouses of first destination in this
state which are licensed under the provisions of chapter 231.
Such reports shall be filed monthly on or before the 10th day of
each month and shall show with respect to deliveries made in the
preceding month: the date, point of origin, point of delivery,
name of consignee, the quantity of cigarettes delivered, and
such other information as the commissioner may require.
All common carriers and contract carriers transporting
cigarettes into Minnesota shall permit examination by the
commissioner of their records relating to the shipment of
cigarettes.
Any person who fails or refuses to transmit to the
commissioner the required reports or whoever refuses to permit
the examination of the records by the commissioner shall be
guilty of a gross misdemeanor.
Sec. 4. Minnesota Statutes 1992, section 297C.01,
subdivision 5, is amended to read:
Subd. 5. [COMMEMORATIVE BOTTLES.] "Commemorative bottles"
are ceramic commemorative bottles or other specially designed
decanters which have value as collectors items and which have
unbroken federal tax stamps thereon contain alcoholic beverage.
Sec. 5. [REPEALER.]
Minnesota Statutes 1992, section 115A.923, subdivision 6,
is repealed.
Presented to the governor April 11, 1994
Signed by the governor April 13, 1994, 1:15 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes