Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 587-H.F.No. 3209
An act relating to the financing and operation of
state and local government; conforming with certain
changes in the federal income tax law; changing tax
brackets, rates, bases, exemptions, withholding,
payments, and refunds; allowing tax credits; changing
the subtraction for the elderly and disabled; altering
taconite production tax rates and distributions;
providing for use of taconite economic development
funds; altering procedures of the board of government
innovation and cooperation and appropriating money to
the board; providing aids to local governments;
changing the calculation of property tax refunds;
modifying property tax provisions relating to appeals,
petitions, procedures, valuation, levies,
classifications, homesteads, credits, and exemptions;
changing certain tax return or report requirements;
changing operation of the local government trust fund
and providing for its future repeal; authorizing
special assessments; authorizing a local lodging tax;
enacting provisions relating to certain cities,
counties, special taxing districts, and towns;
changing certain redemption provisions; reforming
state budget procedures; changing certain bonding
provisions and authorizing bonding; creating a bond
guarantee fund; modifying tax increment financing
requirements; eliminating certain conditions relating
to the contamination tax; providing for creation and
operation of the Cross Lake area water and sewer board
and the Chisholm/Hibbing airport authority; giving the
commissioner of revenue certain authority; requiring
certain permits and permit fees; requiring studies;
appropriating money and limiting appropriations;
amending Minnesota Statutes 1992, sections 16A.711,
subdivisions 4 and 5; 60A.02, by adding a subdivision;
60A.15, by adding a subdivision; 124.196; 256E.06,
subdivision 5, and by adding a subdivision; 271.06,
subdivision 7; 273.061, by adding a subdivision;
273.111, subdivision 11; 273.138, by adding a
subdivision; 273.1398, by adding a subdivision;
273.165, subdivision 1; 278.05, subdivision 6;
289A.02, by adding a subdivision; 289A.25, subdivision
5; 290.01, subdivision 19d, and by adding
subdivisions; 290.05, subdivision 3, and by adding a
subdivision; 290.06, subdivision 2c; 290.067,
subdivision 1; 290.068, subdivision 2; 290.0802,
subdivisions 1 and 2; 290.091, subdivision 3;
290.0921, subdivision 2; 290.35, by adding a
subdivision; 290A.04, subdivisions 2 and 2a; 296.16,
subdivision 1; 297.01, by adding a subdivision;
297A.01, by adding a subdivision; 297A.02; 297A.135,
subdivision 1; 297A.15, subdivision 5; 297A.25, by
adding subdivisions; 297A.256; 297A.44, subdivision 1;
297C.03, subdivision 6; 298.017, subdivision 2;
298.24, subdivision 1; 298.26; 298.28, by adding a
subdivision; 298.296, subdivision 2, and by adding a
subdivision; 360.036, subdivisions 2 and 3; 360.037,
subdivision 2; 360.042, subdivision 10; 466A.02,
subdivision 3; 469.004, subdivision 1a; 473.341;
473H.05, by adding a subdivision; 473H.18; 477A.014,
subdivision 5; 477A.03, as amended; and 580.23, as
amended; Minnesota Statutes 1993 Supplement, sections
16A.712; 84.794, subdivision 1; 84.803, subdivision 1;
256E.06, subdivision 12; 270.78; 270.91, subdivision
4; 270.94; 273.11, subdivisions 1a, 16, and by adding
a subdivision; 273.112, subdivision 3; 273.124,
subdivisions 1 and 13; 273.13, subdivisions 23 and 24;
273.166, by adding a subdivision; 275.065, subdivision
3; 276.04, subdivision 2; 278.01, subdivision 1;
289A.11, subdivision 1; 289A.26, subdivision 7;
289A.60, subdivision 21; 290.01, subdivision 19;
290.091, subdivision 2; 290A.04, subdivisions 2h, as
amended, and 6; 290A.23, subdivision 1, and by adding
a subdivision; 296.02, subdivision 1a; 296.025,
subdivision 1a; 297A.01, subdivision 16; 297B.03;
298.227; 298.28, subdivision 9a; 383A.75, subdivision
3; 465.795, subdivision 7; 465.796, subdivision 2;
465.797, subdivisions 1, 2, 3, 4, and 5; 465.798;
465.799; 477A.013, subdivisions 1, 8, as amended, and
9; Laws 1969, chapter 499, section 2; and Laws 1993,
chapters 55, section 1; and 375, article 9, section
51; proposing coding for new law in Minnesota
Statutes, chapters 16A; 275; 296; 297A; 297B; 462C;
465; 469; 473; and 477A; repealing Minnesota Statutes
1992, sections 3.862; 16A.711; 273.1381; 273.1398,
subdivision 7; 290.05, subdivision 6; 290.067,
subdivision 6; 297A.021; 297A.44, subdivision 4;
297B.09, subdivision 3; 465.80, subdivision 3;
477A.012, subdivision 6; and 477A.0132, as amended;
Minnesota Statutes 1993 Supplement, sections 16A.712;
82.19, subdivision 9; 256E.06, subdivision 12;
273.166, subdivision 4; 289A.25, subdivision 5a;
290A.23; 465.80, subdivisions 1, 2, 4, and 5; and
477A.03, subdivision 1; Laws 1973, chapter 650,
article 24, section 6, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
INCOME TAX AND BUSINESS TAXES
Section 1. Minnesota Statutes 1992, section 60A.02, is
amended by adding a subdivision to read:
Subd. 4a. [MUTUAL PROPERTY AND CASUALTY INSURANCE
COMPANY.] "Mutual property and casualty insurance company"
includes a property and casualty insurance company that was
converted to a stock company after December 31, 1987, and before
January 1, 1994, if the company was controlled on the date of
conversion by a mutual life insurance company and so long as the
company continues to be controlled by a mutual life insurance
company.
Sec. 2. Minnesota Statutes 1992, section 60A.15, is
amended by adding a subdivision to read:
Subd. 15. [GUARANTY ASSOCIATION ASSESSMENT OFFSET.] An
insurance company may offset against its premium tax liability
to this state any amount paid pursuant to assessments made for
insolvencies which occur after July 31, 1994, under sections
60C.01 to 60C.22, and any amount paid pursuant to assessments
made after July 31, 1994, under Minnesota Statutes 1992,
sections 61B.01 to 61B.16, or sections 61B.18 to 61B.32 as
follows:
(a) Each such assessment shall give rise to an amount of
offset equal to 20 percent of the amount of the assessment for
each of the five calendar years following the year in which the
assessment was paid.
(b) The amount of offset initially determined for each
taxable year is the sum of the amounts determined under
paragraph (a) for that taxable year.
(c) Each year the commissioner of revenue shall compare
total guaranty association assessments levied over the preceding
five calendar years to the sum of all premium tax and corporate
franchise tax revenues collected from insurance companies,
without reduction for any guaranty association assessment offset
in the preceding calendar year, referred to in this subdivision
as "preceding year insurance tax revenues." If total guaranty
association assessments levied over the preceding five years
exceed the preceding year insurance tax revenues, insurance
companies shall be allowed only a proportionate part of the
premium tax offset calculated under paragraph (b) for the
current calendar year. The proportionate part of the premium
tax offset allowed in the current calendar year is determined by
multiplying the amount calculated under paragraph (b) by a
fraction, the numerator of which equals the preceding year
insurance tax revenues and the denominator of which equals total
guaranty association assessments levied over the preceding
five-year period. The proportionate part of the premium tax
offset that is not allowed shall be carried forward to
subsequent tax years and added to the amount of premium tax
offset calculated under paragraph (b) prior to application of
the limitation imposed by this paragraph. Any amount carried
forward from prior years must be allowed before allowance of the
offset for the current year calculated under paragraph (b). The
premium tax offset limitation must be calculated separately for
(1) insurance companies subject to assessment under sections
60C.01 to 60C.22, and (2) insurance companies subject to
assessment under Minnesota Statutes 1992, sections 61B.01 to
61B.16, or sections 61B.18 to 61B.32. When the premium tax
offset is limited by this provision, the commissioner of revenue
shall notify affected insurance companies on a timely basis for
purposes of completing premium and corporate franchise tax
returns. The guaranty associations created under sections
60C.01 to 60C.22, Minnesota Statutes 1992, sections 61B.01 to
61B.16, and sections 61B.18 to 61B.32, shall provide the
commissioner of revenue with the necessary information on
guaranty association assessments. The limitation in this
paragraph is effective for offsets allowable in 1999 and
thereafter.
(d) If the offset determined by the application of
paragraphs (a) to (c) exceeds the greater of the insurance
company's premium tax liability under this section or its
corporate franchise tax liability under chapter 290 prior to
allowance of the credit for premium taxes, then the insurance
company may carry forward the excess, referred to in this
subdivision as the "carryforward credit," to subsequent taxable
years. The carryforward credit shall be allowed as an offset
against premium tax liability for the first succeeding year to
the extent that the premium tax liability for that year exceeds
the amount of the allowable offset for the year determined under
paragraphs (a) to (c). The carryforward credit shall be
reduced, but not below zero, by the greater of the amount of the
carryforward credit allowed as an offset against the premium tax
under this paragraph or the amount of the carryforward credit
allowed as an offset against the insurance company's corporate
franchise tax liability under section 290.35, subdivision 6,
paragraph (d). The remainder, if any, of the carryforward
credit must be carried forward to succeeding taxable years until
the entire carryforward credit has been credited against the
insurance company's liability for premium tax under this chapter
and corporate franchise tax under chapter 290 if applicable for
that taxable year.
(e) A refund paid by the Minnesota life and health
insurance guaranty association to member insurers under
Minnesota Statutes 1992, section 61B.07, subdivision 6, or
section 61B.24, subdivision 6, with respect to an assessment
payment which has been offset against taxes shall reduce the
carryforward credit determined under paragraph (d). If the
refund exceeds the amount of the carryforward credit, it shall
be repaid by the insurers to the extent of the offset to the
state in the manner the commissioner of revenue requires.
Sec. 3. Minnesota Statutes 1992, section 289A.02, is
amended by adding a subdivision to read:
Subd. 7. [INTERNAL REVENUE CODE.] Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 1993.
Sec. 4. 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,. If the
adjusted gross income shown on the return of the taxpayer for
the preceding taxable year exceeds $150,000, this clause shall
be applied by substituting "110 percent of the total tax
liability" for "the total tax liability"
(i) for an individual who is not a Minnesota resident for
the entire year, the term "adjusted gross income" means the
Minnesota share of that income apportioned to Minnesota under
section 290.06, subdivision 2c, paragraph (e), or
(ii) for a trust the term "adjusted gross income" means the
income assigned to Minnesota under section 290.17; 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.
A reduction in an installment under clause (3) must be
recaptured by increasing the amount of the next required
installment by the amount of the reduction.
Sec. 5. Minnesota Statutes 1993 Supplement, section
289A.26, subdivision 7, is amended to read:
Subd. 7. [REQUIRED INSTALLMENTS.] (a) Except as otherwise
provided in this subdivision, the amount of a required
installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the
term "required annual payment" means the lesser of:
(1) 97 100 percent of the tax shown on the return for the
taxable year, or, if no return is filed, 97 100 percent of the
tax for that year; or
(2) 100 percent of the tax shown on the return of the
entity for the preceding taxable year provided the return was
for a full 12-month period, showed a liability, and was filed by
the entity.
(c) Except for determining the first required installment
for any taxable year, paragraph (b), clause (2), does not apply
in the case of a large corporation. The term "large
corporation" means a corporation or any predecessor corporation
that had taxable net income of $1,000,000 or more for any
taxable year during the testing period. The term "testing
period" means the three taxable years immediately preceding the
taxable year involved. A reduction allowed to a large
corporation for the first installment that is allowed by
applying paragraph (b), clause (2), must be recaptured by
increasing the next required installment by the amount of the
reduction.
(d) In the case of a required installment, if the
corporation establishes that the annualized income installment
is less than the amount determined in paragraph (a), the amount
of the required installment is the annualized income installment
and the recapture of previous quarters' reductions allowed by
this paragraph must be recovered by increasing later required
installments to the extent the reductions have not previously
been recovered.
(e) The "annualized income installment" is the excess, if
any, of:
(1) an amount equal to the applicable percentage of the tax
for the taxable year computed by placing on an annualized basis
the taxable income:
(i) for the first two months of the taxable year, in the
case of the first required installment;
(ii) for the first two months or for the first five months
of the taxable year, in the case of the second required
installment;
(iii) for the first six months or for the first eight
months of the taxable year, in the case of the third required
installment; and
(iv) for the first nine months or for the first 11 months
of the taxable year, in the case of the fourth required
installment, over
(2) the aggregate amount of any prior required installments
for the taxable year.
(3) For the purpose of this paragraph, the annualized
income shall be computed by placing on an annualized basis the
taxable income for the year up to the end of the month preceding
the due date for the quarterly payment multiplied by 12 and
dividing the resulting amount by the number of months in the
taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred
to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
For the following The applicable
required installments: percentage is:
1st 24.25 25
2nd 48.5 50
3rd 72.75 75
4th 97 100
(f)(1) If this paragraph applies, the amount determined for
any installment must be determined in the following manner:
(i) take the taxable income for the months during the
taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for
the months during the taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item
(ii); and
(iv) multiply the tax computed under item (iii) by the base
period percentage for the filing month and the months during the
taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is
the average percent that the taxable income for the
corresponding months in each of the three preceding taxable
years bears to the taxable income for the three preceding
taxable years;
(ii) the term "filing month" means the month in which the
installment is required to be paid;
(iii) this paragraph only applies if the base period
percentage for any six consecutive months of the taxable year
equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the
determination of the base period percentage in the case of
reorganizations, new corporations, and other similar
circumstances.
(3) In the case of a required installment determined under
this paragraph, if the entity determines that the installment is
less than the amount determined in paragraph (a), the amount of
the required installment is the amount determined under this
paragraph and the recapture of previous quarters' reductions
allowed by this paragraph must be recovered by increasing later
required installments to the extent the reductions have not
previously been recovered.
Sec. 6. Minnesota Statutes 1993 Supplement, section
290.01, subdivision 19, is amended to read:
Subd. 19. [NET INCOME.] The term "net income" means the
federal taxable income, as defined in section 63 of the Internal
Revenue Code of 1986, as amended through the date named in this
subdivision, incorporating any elections made by the taxpayer in
accordance with the Internal Revenue Code in determining federal
taxable income for federal income tax purposes, and with the
modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund
thereof, as defined in section 851(a) or 851(h) of the Internal
Revenue Code, federal taxable income means investment company
taxable income as defined in section 852(b)(2) of the Internal
Revenue Code, except that:
(1) the exclusion of net capital gain provided in section
852(b)(2)(A) of the Internal Revenue Code does not apply; and
(2) the deduction for dividends paid under section
852(b)(2)(D) of the Internal Revenue Code must be applied by
allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C)
and 852(b)(5) of the Internal Revenue Code.
The net income of a real estate investment trust as defined
and limited by section 856(a), (b), and (c) of the Internal
Revenue Code means the real estate investment trust taxable
income as defined in section 857(b)(2) of the Internal Revenue
Code.
The Internal Revenue Code of 1986, as amended through
December 31, 1986, shall be in effect for taxable years
beginning after December 31, 1986. The provisions of sections
10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223,
10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the
Omnibus Budget Reconciliation Act of 1987, Public Law Number
100-203, the provisions of sections 1001, 1002, 1003, 1004,
1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013,
1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137,
6277, and 6282 of the Technical and Miscellaneous Revenue Act of
1988, Public Law Number 100-647, and the provisions of sections
7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of
1989, Public Law Number 101-239, shall be effective at the time
they become effective for federal income tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1987, shall be in effect for taxable years
beginning after December 31, 1987. The provisions of sections
4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011,
6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180,
6182, 6280, and 6281 of the Technical and Miscellaneous Revenue
Act of 1988, Public Law Number 100-647, the provisions of
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
of 1989, Public Law Number 101-239, and the provisions of
section 11702 of the Revenue Reconciliation Act of 1990, Public
Law Number 101-508, shall become effective at the time they
become effective for federal tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1988, shall be in effect for taxable years
beginning after December 31, 1988. The provisions of sections
7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206,
7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622,
7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget
Reconciliation Act of 1989, Public Law Number 101-239, the
provision of section 1401 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
and the provisions of sections 11701 and 11703 of the Revenue
Reconciliation Act of 1990, Public Law Number 101-508, shall
become effective at the time they become effective for federal
tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1989, shall be in effect for taxable years
beginning after December 31, 1989. The provisions of sections
11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of
the Revenue Reconciliation Act of 1990, Public Law Number
101-508, and the provisions of section 13224 and 13261 of the
Omnibus Budget Reconciliation Act of 1993, Public Law Number
103-66, shall become effective at the time they become effective
for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1990, shall be in effect for taxable years
beginning after December 31, 1990.
The provisions of section 13431 of the Omnibus Budget
Reconciliation Act of 1993, Public Law Number 103-66, shall
become effective at the time they became effective for federal
purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1991, shall be in effect for taxable years
beginning after December 31, 1991.
The provisions of sections 1936 and 1937 of the
Comprehensive National Energy Policy Act of 1992, Public Law
Number 102-486, and the provisions of sections 13101, 13114,
13122, 13141, 13150, 13151, 13174, 13239, 13301, and 13442 of
the Omnibus Budget Reconciliation Act of 1993, Public Law Number
103-66, shall become effective at the time they become effective
for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1992, shall be in effect for taxable years
beginning after December 31, 1992.
The provisions of sections 13116, 13121, 13206, 13210,
13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of
the Omnibus Budget Reconciliation Act of 1993, Public Law Number
103-66, shall become effective at the time they become effective
for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1993, shall be in effect for taxable years
beginning after December 31, 1993.
Except as otherwise provided, references to the Internal
Revenue Code in subdivisions 19a to 19g mean the code in effect
for purposes of determining net income for the applicable year.
Sec. 7. Minnesota Statutes 1992, section 290.01, is
amended by adding a subdivision to read:
Subd. 4b. [MUTUAL PROPERTY AND CASUALTY INSURANCE
COMPANY.] "Mutual property and casualty insurance company"
includes a property and casualty insurance company that was
converted to a stock company after December 31, 1987, and before
January 1, 1994, if the company was controlled on the date of
conversion by a mutual life insurance company and so long as the
company continues to be controlled by a mutual life insurance
company.
Sec. 8. Minnesota Statutes 1992, section 290.01,
subdivision 19d, is amended to read:
Subd. 19d. [CORPORATIONS; MODIFICATIONS DECREASING FEDERAL
TAXABLE INCOME.] For corporations, there shall be subtracted
from federal taxable income after the increases provided in
subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross
income for federal income tax purposes under section 78 of the
Internal Revenue Code;
(2) the amount of salary expense not allowed for federal
income tax purposes due to claiming the federal jobs credit
under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in
liquidation) paid within the taxable year by a national or state
bank to the United States, or to any instrumentality of the
United States exempt from federal income taxes, on the preferred
stock of the bank owned by the United States or the
instrumentality;
(4) amounts disallowed for intangible drilling costs due to
differences between this chapter and the Internal Revenue Code
in taxable years beginning before January 1, 1987, as follows:
(i) to the extent the disallowed costs are represented by
physical property, an amount equal to the allowance for
depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in
subdivision 19e; and
(ii) to the extent the disallowed costs are not represented
by physical property, an amount equal to the allowance for cost
depletion under Minnesota Statutes 1986, section 290.09,
subdivision 8;
(5) the deduction for capital losses pursuant to sections
1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning
after December 31, 1986, capital loss carrybacks shall not be
allowed;
(ii) for capital losses incurred in taxable years beginning
after December 31, 1986, a capital loss carryover to each of the
15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years
beginning before January 1, 1987, a capital loss carryback to
each of the three taxable years preceding the loss year, subject
to the provisions of Minnesota Statutes 1986, section 290.16,
shall be allowed; and
(iv) for capital losses incurred in taxable years beginning
before January 1, 1987, a capital loss carryover to each of the
five taxable years succeeding the loss year to the extent such
loss was not used in a prior taxable year and subject to the
provisions of Minnesota Statutes 1986, section 290.16, shall be
allowed;
(6) an amount for interest and expenses relating to income
not taxable for federal income tax purposes, if (i) the income
is taxable under this chapter and (ii) the interest and expenses
were disallowed as deductions under the provisions of section
171(a)(2), 265 or 291 of the Internal Revenue Code in computing
federal taxable income;
(7) in the case of mines, oil and gas wells, other natural
deposits, and timber for which percentage depletion was
disallowed pursuant to subdivision 19c, clause (11), a
reasonable allowance for depletion based on actual cost. In the
case of leases the deduction must be apportioned between the
lessor and lessee in accordance with rules prescribed by the
commissioner. In the case of property held in trust, the
allowable deduction must be apportioned between the income
beneficiaries and the trustee in accordance with the pertinent
provisions of the trust, or if there is no provision in the
instrument, on the basis of the trust's income allocable to
each;
(8) for certified pollution control facilities placed in
service in a taxable year beginning before December 31, 1986,
and for which amortization deductions were elected under section
169 of the Internal Revenue Code of 1954, as amended through
December 31, 1985, an amount equal to the allowance for
depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7;
(9) the amount included in federal taxable income
attributable to the credits provided in Minnesota Statutes 1986,
section 273.1314, subdivision 9, or Minnesota Statutes, section
469.171, subdivision 6;
(10) amounts included in federal taxable income that are
due to refunds of income, excise, or franchise taxes based on
net income or related minimum taxes paid by the corporation to
Minnesota, another state, a political subdivision of another
state, the District of Columbia, or a foreign country or
possession of the United States to the extent that the taxes
were added to federal taxable income under section 290.01,
subdivision 19c, clause (1), in a prior taxable year;
(11) the following percentage of royalties, fees, or other
like income accrued or received from a foreign operating
corporation or a foreign corporation which is part of the same
unitary business as the receiving corporation:
Taxable Year
Beginning After .......... Percentage
December 31, 1988 ........ 50 percent
December 31, 1990 ........ 80 percent;
(12) income or gains from the business of mining as defined
in section 290.05, subdivision 1, clause (a), that are not
subject to Minnesota franchise tax;
(13) the amount of handicap access expenditures in the
taxable year which are not allowed to be deducted or capitalized
under section 44(d)(7) of the Internal Revenue Code of 1986; and
(14) the amount of qualified research expenses not allowed
for federal income tax purposes under section 280C(c) of the
Internal Revenue Code, but only to the extent that the amount
exceeds the amount of the credit allowed under section 290.068.;
and
(15) the amount of salary expenses not allowed for federal
income tax purposes due to claiming the Indian employment credit
under section 45A(a) of the Internal Revenue Code of 1986, as
amended through December 31, 1993.
Sec. 9. Minnesota Statutes 1992, section 290.01, is
amended by adding a subdivision to read:
Subd. 31. [INTERNAL REVENUE CODE.] Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 1993.
Sec. 10. Minnesota Statutes 1992, section 290.05,
subdivision 3, is amended to read:
Subd. 3. (a) An organization exempt from taxation under
subdivision 2 shall, nevertheless, be subject to tax under this
chapter to the extent provided in the following provisions of
the Internal Revenue Code:
(i) section 527 (dealing with political organizations);
(ii) section 528 (dealing with certain homeowners
associations);
(iii) sections 511 to 515 (dealing with unrelated business
income); and
(iv) section 521 (dealing with farmers' cooperatives); and
(v) section 6033(e)(2) (dealing with lobbying expense); but
notwithstanding this subdivision, shall be considered an
organization exempt from income tax for the purposes of any law
which refers to organizations exempt from income taxes.
(b) The tax shall be imposed on the taxable income of
political organizations or homeowner associations or the
unrelated business taxable income, as defined in section 512 of
the Internal Revenue Code, of organizations defined in section
511 of the Internal Revenue Code, provided that the tax is not
imposed on:
(1) advertising revenues from a newspaper published by an
organization described in section 501(c)(4) of the Internal
Revenue Code; or
(2) revenues from lawful gambling authorized under chapter
349 that are expended for purposes that qualify for the
deduction for charitable contributions under section 170 of the
Internal Revenue Code of 1986, as amended through December 31,
1991 1993, disregarding the limitation under section 170(b)(2),
but only to the extent the contributions are not deductible in
computing federal taxable income.
The tax shall be at the corporate rates. The tax shall
only be imposed on income and deductions assignable to this
state under sections 290.17 to 290.20. To the extent deducted
in computing federal taxable income, the deductions contained in
section 290.21 shall not be allowed in computing Minnesota
taxable net income.
(c) The tax shall be imposed on organizations subject to
federal tax under section 6033(e)(2) of the Internal Revenue
Code of 1986, as amended through December 31, 1993, in an amount
equal to the corporate tax rate multiplied by the amount of
lobbying expenses taxed under section 6033(e)(2) which are
attributable to lobbying the Minnesota state government.
Sec. 11. Minnesota Statutes 1992, section 290.05, is
amended by adding a subdivision to read:
Subd. 8. [AUTHORITY TO REVOKE EXEMPTION FOR FAILURE TO
COMPLY WITH FEDERAL LAW.] The commissioner may examine or
investigate an entity claiming exemption under this section and
subpart F of the Internal Revenue Code. The commissioner may
revoke the exemption under this section for violations of
federal law that would permit the commissioner of internal
revenue or the secretary of the treasury to revoke the exemption
under federal law, regardless of whether such action has been
taken under federal law. A revocation under this subdivision is
subject to administrative review under section 289A.65.
Sec. 12. Minnesota Statutes 1992, section 290.06,
subdivision 2c, is amended to read:
Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES,
AND TRUSTS.] (a) The income taxes imposed by this chapter upon
married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code of 1986
as amended through December 31, 1991, must be computed by
applying to their taxable net income the following schedule of
rates:
(1) On the first $19,910, 6 percent;
(2) On all over $19,910, but not over $79,120, 8 percent;
(3) On all over $79,120, 8.5 percent.
Married individuals filing separate returns, estates, and
trusts must compute their income tax by applying the above rates
to their taxable income, except that the income brackets will be
one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried
individuals must be computed by applying to taxable net income
the following schedule of rates:
(1) On the first $13,620, 6 percent;
(2) On all over $13,620, but not over $44,750, 8 percent;
(3) On all over $44,750, 8.5 percent.
(c) The income taxes imposed by this chapter upon unmarried
individuals qualifying as a head of household as defined in
section 2(b) of the Internal Revenue Code of 1986, as amended
through December 31, 1991, must be computed by applying to
taxable net income the following schedule of rates:
(1) On the first $16,770, 6 percent;
(2) On all over $16,770, but not over $67,390, 8 percent;
(3) On all over $67,390, 8.5 percent.
(d) In lieu of a tax computed according to the rates set
forth in this subdivision, the tax of any individual taxpayer
whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in
accordance with tables prepared and issued by the commissioner
of revenue based on income brackets of not more than $100. The
amount of tax for each bracket shall be computed at the rates
set forth in this subdivision, provided that the commissioner
may disregard a fractional part of a dollar unless it amounts to
50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the
entire year must compute the individual's Minnesota income tax
as provided in this subdivision. After the application of the
nonrefundable credits provided in this chapter, the tax
liability must then be multiplied by a fraction in which:
(1) The numerator is the individual's Minnesota source
federal adjusted gross income as defined in section 62 of the
Internal Revenue Code of 1986, as amended through December 31,
1991, less the deduction allowed by section 217 of the Internal
Revenue Code of 1986, as amended through December 31, 1991,
after applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted
gross income as defined in section 62 of the Internal Revenue
Code of 1986, as amended through December 31, 1991 1993,
increased by the addition required for interest income from
non-Minnesota state and municipal bonds under section 290.01,
subdivision 19a, clause (1).
Sec. 13. Minnesota Statutes 1992, section 290.067,
subdivision 1, is amended to read:
Subdivision 1. [AMOUNT OF CREDIT.] (a) A taxpayer may take
as a credit against the tax due from the taxpayer and a spouse,
if any, under this chapter an amount equal to the dependent care
credit for which the taxpayer is eligible pursuant to the
provisions of section 21 of the Internal Revenue Code subject to
the limitations provided in subdivision 2 except that in
determining whether the child qualified as a dependent, income
received as an aid to families with dependent children grant or
allowance to or on behalf of the child must not be taken into
account in determining whether the child received more than half
of the child's support from the taxpayer, and the provisions of
section 32(b)(1)(D) of the Internal Revenue Code of 1986, as
amended through December 31, 1991, do not apply.
(b) If a child who is six years of age or less at the close
of the taxable year is cared for at a licensed family day care
home operated by the child's parent, the taxpayer is deemed to
have paid employment-related expenses. If the child is 16
months old or younger at the close of the taxable year, the
amount of expenses deemed to have been paid equals the maximum
limit for one qualified individual under section 21(c) and (d)
of the Internal Revenue Code. If the child is older than 16
months of age but not older than six years of age at the close
of the taxable year, the amount of expenses deemed to have been
paid equals the amount the licensee would charge for the care of
a child of the same age for the same number of hours of care.
(c) If a married couple:
(1) has a child one year of age or less at the close of the
taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance
program as defined in section 129 of the Internal Revenue Code,
in lieu of the actual employment related expenses paid for that
child under paragraph (a) or the deemed amount under paragraph
(b), the lesser of (i) the combined earned income of the couple
or (ii) $2,400 will be deemed to be the employment related
expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to
this deemed amount. These deemed amounts apply regardless of
whether any employment-related expenses have been paid.
(d) If the taxpayer is not required and does not file a
federal individual income tax return for the tax year, no credit
is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number
of the person are included on the return claiming the credit; or
(2) if the person is an organization described in section
501(c)(3) of the Internal Revenue Code and exempt from tax under
section 501(a) of the Internal Revenue Code, the name and
address of the person are included on the return claiming the
credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence does not
apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
In the case of a nonresident, part-year resident, or a
person who has earned income not subject to tax under this
chapter, the credit determined under section 21 of the Internal
Revenue Code must be allocated based on the ratio by which the
earned income of the claimant and the claimant's spouse from
Minnesota sources bears to the total earned income of the
claimant and the claimant's spouse.
Sec. 14. Minnesota Statutes 1992, section 290.068,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of this section, the
following terms have the meanings given.
(a) "Qualified research expenses" means (i) qualified
research expenses and basic research payments as defined in
section 41(b) and (e) of the Internal Revenue Code, except it
does not include expenses incurred for qualified research or
basic research conducted outside the state of Minnesota pursuant
to section 41(d) and (e) of the Internal Revenue Code; and (ii)
contributions to a nonprofit corporation established and
operated pursuant to the provisions of chapter 317A for the
purpose of promoting the establishment and expansion of business
in this state, provided the contributions are invested by the
nonprofit corporation for the purpose of providing funds for
small, technologically innovative enterprises in Minnesota
during the early stages of their development.
(b) "Qualified research" means qualified research as
defined in section 41(d) of the Internal Revenue Code, except
that the term does not include qualified research conducted
outside the state of Minnesota.
(c) "Base amount" means base amount as defined in section
41(c) of the Internal Revenue Code, except that the average
annual gross receipts must be calculated using Minnesota sales
or receipts under section 290.191 and the definitions contained
in clauses (a) and (b) shall apply.
(d) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1991.
Sec. 15. Minnesota Statutes 1992, section 290.0802,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Adjusted gross income" means federal adjusted gross
income as used in section 22(d) of the Internal Revenue Code for
the taxable year, plus a lump sum distribution as defined in
section 402(e)(3) of the Internal Revenue Code, and less any
pension, annuity, or disability benefits included in federal
gross income but not subject to state taxation other than the
subtraction allowed under section 290.01, subdivision 19b,
clause (4).
(b) "Disability income" means disability income as defined
in section 22(c)(2)(B)(iii) of the Internal Revenue Code.
(c) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1991.
(d) "Nontaxable retirement and disability benefits" means
the amount of pension, annuity, or disability benefits that
would be included in the reduction under section 22(c)(3) of the
Internal Revenue Code and pension, annuity, or disability
benefits included in federal gross income but not subject to
state taxation other than the subtraction allowed under section
290.01, subdivision 19b, clause (4).
(e) (d) "Qualified individual" means a qualified individual
as defined in section 22(b) of the Internal Revenue Code.
(e) "Social security benefits above the second federal
threshold" means the amount of social security benefits included
in federal taxable income due to the provisions of section 13215
of the Omnibus Budget Reconciliation Act of 1993, Public Law
Number 103-66.
Sec. 16. Minnesota Statutes 1992, section 290.0802,
subdivision 2, is amended to read:
Subd. 2. [SUBTRACTION.] (a) A qualified individual is
allowed a subtraction from federal taxable income for
the greater of (1) the individual's subtraction base amount or
(2) the minimum amount. The excess of the subtraction base
amount over the taxable net income computed without regard to
the subtraction for the elderly or disabled under section
290.01, subdivision 19b, clause (5), may be used to reduce the
amount of a lump sum distribution subject to tax under section
290.032.
(b)(1) The initial subtraction base amount equals
(i) $10,000 $12,000 for a married taxpayer filing a joint
return if a spouse is a qualified individual,
(ii) $8,000 $9,600 for a single taxpayer, and
(iii) $5,000 $6,000 for a married taxpayer filing a
separate federal return.
(2) The qualified individual's initial subtraction base
amount, then, must be reduced by the sum of nontaxable
retirement and disability benefits and one-half of the amount of
adjusted gross income in excess of the following thresholds:
(i) $15,000 $18,000 for a married taxpayer filing a joint
return if both spouses are qualified individuals,
(ii) $12,000 $14,500 for a single taxpayer or for a married
couple filing a joint return if only one spouse is a qualified
individual, and
(iii) $7,500 $9,000 for a married taxpayer filing a
separate federal return.
(3) In the case of a qualified individual who is under the
age of 65, the maximum amount of the subtraction base may not
exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
(c) Qualified individuals who must include social security
benefits above the second federal threshold in federal taxable
income may claim a minimum amount equal to the lesser of
(1) the amount of social security benefits above the second
federal threshold included in federal taxable income; or
(2) a minimum amount subject to an income phase-out.
For taxable years beginning after December 31, 1993, and
before January 1, 1995, the minimum amount equals
(i) $3,750 for married individuals filing a joint return if
both spouses are qualified individuals,
(ii) $3,000 for a single taxpayer or for married
individuals filing a joint return if one spouse is a qualified
individual, and
(iii) $1,875 for a married individual filing a separate
return.
For taxable years beginning after December 31, 1994, and
before January 1, 1996, the minimum amount equals
(i) $2,250 for married individuals filing a joint return if
both spouses are qualified individuals,
(ii) $1,800 for a single taxpayer or for married
individuals filing a joint return if one spouse is a qualified
individual, and
(iii) $1,125 for married individuals filing a separate
return.
For taxable years beginning after December 31, 1995, and
before January 1, 1997, the minimum amount equals
(i) $1,000 for married individuals filing a joint return if
both spouses are qualified individuals,
(ii) $800 for a single taxpayer or for married individuals
filing a joint return if one spouse is a qualified individual,
and
(iii) $500 for married individuals filing a separate return.
For taxable years beginning after December 31, 1996, the
minimum amount is zero.
The minimum amount is reduced by 20 percent for each $1,000
of adjusted gross income above an income threshold, but in no
case may the minimum amount be reduced to less than zero. The
income thresholds equal
(i) $75,000 for married individuals filing a joint return
if both spouses are qualified individuals,
(ii) $60,000 for single taxpayers and for married
individuals filing a joint return if only one spouse is a
qualified individual, and
(iii) $37,500 for married individuals filing a separate
return.
Sec. 17. 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
(i) interest income as defined in section 290.01,
subdivision 19b, clause (1);
(ii) an overpayment of state income tax as provided by
section 290.01, subdivision 19b, clause (2), to the extent
included in federal alternative minimum taxable income; and
(iii) the amount of investment interest paid or accrued
within the taxable year on indebtedness to the extent that the
amount does not exceed net investment income, as defined in
section 163(d)(4) of the Internal Revenue Code. Interest does
not include amounts deducted in computing federal adjusted gross
income.
In the case of an estate or trust, alternative minimum
taxable income must be computed as provided in section 59(c) of
the Internal Revenue Code.
(b) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1992.
(c) "Investment interest" means investment interest as
defined in section 163(d)(3) of the Internal Revenue Code.
(d) (c) "Tentative minimum tax" equals seven percent of
alternative minimum taxable income after subtracting the
exemption amount determined under subdivision 3.
(e) (d) "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) (e) "Net minimum tax" means the minimum tax imposed by
this section.
(g) (f) "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. 18. Minnesota Statutes 1992, section 290.091,
subdivision 3, is amended to read:
Subd. 3. [EXEMPTION AMOUNT.] For purposes of computing the
alternative minimum tax, the exemption amount is the exemption
determined under section 55(d) of the Internal Revenue Code, as
amended through December 31, 1992, except that alternative
minimum taxable income as determined under this section must be
substituted in the computation of the phase out under section
55(d)(3).
Sec. 19. Minnesota Statutes 1992, section 290.0921,
subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] (a) For purposes of this section,
the following terms have the meanings given them.
(b) "Alternative minimum taxable net income" is alternative
minimum taxable income,
(1) less the exemption amount, and
(2) apportioned or allocated to Minnesota under section
290.17, 290.191, or 290.20.
(c) The "exemption amount" is $40,000, reduced, but not
below zero, by 25 percent of the excess of alternative minimum
taxable income over $150,000.
(d) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1991.
(e) "Minnesota alternative minimum taxable income" is
alternative minimum taxable net income, less the deductions for
alternative tax net operating loss under subdivision 4;
charitable contributions under subdivision 5; and dividends
received under subdivision 6. The sum of the deductions under
this paragraph may not exceed 90 percent of alternative minimum
taxable net income. This limitation does not apply to a
deduction for dividends paid to or received from a corporation
which is subject to tax under section 290.35 or 290.36 and which
is a member of an affiliated group of corporations as defined by
the Internal Revenue Code.
Sec. 20. Minnesota Statutes 1992, section 290.35, is
amended by adding a subdivision to read:
Subd. 6. [GUARANTY ASSOCIATION ASSESSMENT OFFSET.] An
insurance company may offset against its corporate franchise tax
liability under this chapter any amount paid pursuant to
assessments made for insolvencies which occur after July 31,
1994, under sections 60C.01 to 60C.22, and any amount paid
pursuant to assessments made after July 31, 1994, under
Minnesota Statutes 1992, sections 61B.01 to 61B.16, or sections
61B.18 to 61B.32, as follows:
(a) Each such assessment shall give rise to an amount of
offset equal to 20 percent of the amount of the assessment for
each of the five calendar years following the year in which the
assessment was paid.
(b) The amount of offset initially determined for each
taxable year is the sum of the amounts determined under
paragraph (a) for that taxable year.
(c) Each year the commissioner of revenue shall compare
total guaranty association assessments levied over the preceding
five calendar years to the sum of all premium tax and corporate
franchise tax revenues collected from insurance companies
without reduction for any guaranty association assessment
offset, in the preceding calendar year, referred to in this
subdivision as "preceding year insurance tax revenues." If
total guaranty association assessments levied over the preceding
five years exceed the preceding year insurance tax revenues,
insurance companies shall be allowed only a proportionate part
of the corporate franchise tax offset calculated under paragraph
(b) for the current calendar year. The proportionate part of
the corporate franchise tax offset allowed in the current
calendar year is determined by multiplying the amount calculated
under paragraph (b) by a fraction, the numerator of which equals
the preceding year insurance tax revenues and the denominator of
which equals total guaranty association assessments levied over
the preceding five-year period. The proportionate part of the
premium tax offset that is not allowed shall be carried forward
to subsequent tax years and added to the amount of corporate
franchise tax offset calculated under paragraph (b) before
application of the limitation imposed by this paragraph. Any
amount carried forward from prior years must be allowed before
allowance of the offset for the current year calculated under
paragraph (b). The corporate franchise tax offset limitation
must be calculated separately for (1) insurance companies
subject to assessment under sections 60C.01 to 60C.22, and (2)
insurance companies subject to assessment under Minnesota
Statutes 1992, sections 61B.01 to 61B.16, or sections 61B.18 to
61B.32. When the corporate franchise tax offset is limited by
this provision, the commissioner of revenue will notify affected
insurance companies on a timely basis for purposes of completing
premium and corporate franchise tax returns. The guaranty
associations created under sections 60C.01 to 60C.22, Minnesota
Statutes 1992, 61B.01 to 61B.16, and sections 61B.18 to 61B.32,
shall provide the commissioner of revenue with the necessary
information on guaranty association assessments. The limitation
in this paragraph is effective for offsets allowable in 1999 and
thereafter.
(d) If the offset determined by the application of
paragraphs (a) to (c) exceeds the greater of the insurance
company's corporate franchise tax liability under this chapter
prior to allowance of the credit provided by subdivision 3 or
its premium tax liability under chapter 60A, then the insurance
company may carry forward the excess, referred to in this
subdivision as the "carryforward credit," to subsequent taxable
years. The carryforward credit must be allowed as an offset
against corporate franchise tax liability for the first
succeeding year to the extent that the corporate franchise tax
liability for that year exceeds the amount of the allowable
offset for the year determined under paragraphs (a) to (c). The
carryforward credit shall be reduced, but not below zero, by the
greater of the amount of the carryforward credit allowed as an
offset against the corporate franchise tax pursuant to this
paragraph or the amount of the carryforward credit allowed as an
offset against the insurance company's premium tax liability
under chapter 60A pursuant to section 60A.15, subdivision 15,
paragraph (d). The remainder, if any, of the carryforward
credit must be carried forward to succeeding taxable years until
the entire carryforward credit has been credited against the
insurance company's liability for corporate franchise tax under
this chapter and premium tax under chapter 60A.
(e) A refund paid by the Minnesota life and health
insurance guaranty association to member insurers under
Minnesota Statutes 1992, section 61B.07, subdivision 6, or
section 61B.24, subdivision 6, with respect to an assessment
payment which has been offset against taxes shall reduce the
carryforward credit determined under paragraph (d) and, if the
refund exceeds the amount of the carryforward credit, shall be
repaid by the insurers to the extent of the offset to the state
in the manner the commissioner of revenue requires.
Sec. 21. Minnesota Statutes 1992, section 297.01, is
amended by adding a subdivision to read:
Subd. 17. [INTERNAL REVENUE CODE.] Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 1993.
Sec. 22. Minnesota Statutes 1992, section 298.017,
subdivision 2, is amended to read:
Subd. 2. [DEDUCTIONS ALLOWED.] (a) In calculating the net
proceeds for the purpose of determining the tax provided in
section 298.015, only those expenses specifically allowed in
this subdivision may be deducted from gross proceeds. The
carryback or carryforward of deductions shall not be allowed.
(b) Ordinary and necessary expenses actually paid for the
mining, production, processing, beneficiation, smelting, or
refining of metal or mineral products for:
(1) labor, including wages, salaries, fringe benefits,
unemployment and workers' compensation insurance;
(2) machinery, equipment, and supplies, including any sales
and use tax paid on it, except that machinery and equipment
subject to depreciation shall only be deductible under clause
(b)(3);
(3) depreciation as defined and allowed by section 167 of
the Internal Revenue Code of 1986, as amended through December
31, 1986 1993;
(4) administrative expenses inside Minnesota; and
(5) reclamation costs actually incurred in Minnesota and
paid in a year of production, including the payment of bonds
required by the provisions of an environmental permit issued by
the state of Minnesota
are deductible.
(c) Ordinary and necessary expenses of transporting metal
or mineral products are allowed as a deduction if the costs are
included in the sale price of the products.
(d) Expenses of exploration, research, or development in
this state for the mining and processing of minerals within
Minnesota paid in a production year are deductible in the
production year.
(e) Expenses of exploration and development in Minnesota
incurred prior to production must be amortized and deducted on a
straight-line basis over the first five years of production.
Sec. 23. [FEDERAL CHANGES.]
The changes made by sections 13115, 13131, 13144, 13145,
13146, 13148, 13149, and 13171 of the Omnibus Budget
Reconciliation Act of 1993, Public Law Number 103-66, which
affect the computation of corporate alternative minimum taxable
income as defined in Minnesota Statutes, section 290.0921,
subdivision 3; alternative minimum taxable income of
individuals, trusts, and estates as defined in Minnesota
Statutes, section 290.091, subdivision 2; unrelated business
taxable income, as defined in Minnesota Statutes, section
290.05, subdivision 3; and the Minnesota working family credit
in Minnesota Statutes, section 290.0671, shall be in effect at
the same time they become effective for federal income tax
purposes.
Sec. 24. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall substitute the phrase "Internal Revenue Code"
for the words "Internal Revenue Code of 1986, as amended through
December 31, 1992," where the phrase occurs in chapters 289A,
290, 290A, 291, and 297, except for sections 290.01, subdivision
19; 290.091, subdivision 3; 290A.03, subdivision 15; and
291.005, subdivision 1.
In the next edition of Minnesota Statutes, the revisor of
statutes shall substitute the phrase "Internal Revenue Code of
1986, as amended through December 31, 1993," for the words
"Internal Revenue Code of 1986, as amended through December 31,
1992," wherever the phrase occurs in sections 290A.03,
subdivision 15; 291.005, subdivision 1; 469.174, subdivision 20;
and chapter 298.
Sec. 25. [REPEALER.]
(a) Minnesota Statutes 1992, sections 290.05, subdivision
6; and 290.067, subdivision 6, is repealed.
(b) Minnesota Statutes 1993 Supplement, section 289A.25,
subdivision 5a, is repealed.
Sec. 26. [SEVERABILITY.]
If section 1 or 7 is for any reason found by a final
nonappealable order of a court of competent jurisdiction to be
unconstitutional or to have an unconstitutional effect on the
application of the insurance premiums tax to other insurance
companies, the legislature intends that only section 1 or
section 7, as appropriate, be invalid and the otherwise
applicable insurance premiums tax rates apply.
Sec. 27. [EFFECTIVE DATE.]
Sections 1, 7, 13, 15, 16, and 22 are effective for taxable
years beginning after December 31, 1993.
Section 2 is effective to be used as an offset against
premium tax liabilities payable after November 30, 1995. If a
guaranty association assessment was made before August 1, 1994,
under Minnesota Statutes 1992, sections 61B.01 to 61B.16, and is
revoked or invalidated, a subsequent assessment to pay the same
liabilities shall not be eligible for the offset as provided for
under Minnesota Statutes, section 60A.15, subdivision 15, and
shall not be used in any calculation to determine the offset
limitation under Minnesota Statutes, section 60A.15, subdivision
15, paragraph (c).
Sections 4 and 25, paragraph (b), are effective for
installments of estimated taxes due after the day following
enactment.
Section 5 is effective for taxable years beginning after
December 31, 1994.
Section 8 is effective for wages paid or incurred after
December 31, 1993.
Section 20 is effective to be used as an offset against tax
liabilities payable after June 30, 1995. If a guaranty
association assessment was made before August 1, 1994, under
Minnesota Statutes 1992, sections 61B.01 to 61B.16 and is
revoked or invalidated, a subsequent assessment to pay the same
liabilities shall not be eligible for the offset as provided for
under Minnesota Statutes, section 290.35, subdivision 6, and
shall not be used in any calculation to determine the offset
limitation under Minnesota Statutes, section 290.35, subdivision
6, paragraph (c).
ARTICLE 2
SALES, USE, AND MOTOR VEHICLE EXCISE TAXES
Section 1. Minnesota Statutes 1993 Supplement, section
289A.11, subdivision 1, is amended to read:
Subdivision 1. [RETURN REQUIRED.] Except as provided in
section 289A.18, subdivision 4, for the month in which taxes
imposed by sections 297A.01 to 297A.44 are payable, or for which
a return is due, a return for the preceding reporting period
must be filed with the commissioner in the form and manner the
commissioner prescribes. A person making sales at retail at two
or more places of business may file a consolidated return
subject to rules prescribed by the commissioner. In computing
the dollar amount of items on the return, the amounts are
rounded off to the nearest whole dollar, disregarding amounts
less than 50 cents and increasing amounts of 50 cents to 99
cents to the next highest dollar.
Notwithstanding this subdivision, a person who is not
required to hold a sales tax permit under chapter 297A and who
makes annual purchases of less than $5,000 $18,500 that are
subject to the use tax imposed by section 297A.14, may file an
annual use tax return on a form prescribed by the commissioner.
If a person who qualifies for an annual use tax reporting period
is required to obtain a sales tax permit or makes use tax
purchases in excess of $5,000 $18,500 during the calendar year,
the reporting period must be considered ended at the end of the
month in which the permit is applied for or the purchase in
excess of $5,000 $18,500 is made and a return must be filed for
the preceding reporting period.
Sec. 2. Minnesota Statutes 1993 Supplement, section
297A.01, subdivision 16, is amended to read:
Subd. 16. [CAPITAL EQUIPMENT.] (a) Capital equipment means
machinery and equipment and the materials and supplies necessary
to construct or install the machinery or equipment. To qualify
under this definition the capital equipment must be purchased or
leased for use in this state and used by the purchaser or lessee
primarily for manufacturing, fabricating, mining, quarrying, or
refining tangible personal property, to be sold ultimately at
retail and for electronically transmitting results retrieved by
a customer of an on-line computerized data retrieval system, or
for the generation of electricity or steam, to be sold at retail
and must be used for the establishment of a new or the physical
expansion of an existing manufacturing, fabricating, mining,
quarrying, or refining facility in the state. For purposes of
this subdivision, "mining" includes peat mining, and "on-line
computerized data retrieval system" refers to a system whose
cumulation of information is equally available and accessible to
all its customers.
(b) Capital equipment includes all machinery and equipment
that is essential to the integrated production process. Capital
equipment includes, but is not limited to:
(1) machinery and equipment used or required to operate,
control, or regulate the production equipment;
(2) machinery and equipment used for research and
development, design, quality control, and testing activities;
(3) environmental control devices that are used to maintain
conditions such as temperature, humidity, light, or air pressure
when those conditions are essential to and are part of the
production process; or
(4) materials and supplies necessary to construct and
install machinery or equipment.
(c) Capital equipment does not include the following:
(1) machinery or equipment purchased or leased to replace
machinery or equipment performing substantially the same
function in an existing facility;
(2) repair or replacement parts, including accessories,
whether purchased as spare parts, repair parts, or as upgrades
or modifications, and whether purchased before or after the
machinery or equipment is placed into service. Parts or
accessories are treated as capital equipment only to the extent
that they are a part of and are essential to the operation of
the machinery or equipment as initially purchased;
(2) motor vehicles taxed under chapter 297B;
(3) machinery or equipment used to receive or store raw
materials;
(4) building materials, including materials used for
foundations that support machinery or equipment;
(5) machinery or equipment used for nonproduction purposes,
including, but not limited to, the following: machinery and
equipment used for plant security, fire prevention, first aid,
and hospital stations; machinery and equipment used in support
operations or for administrative purposes; machinery and
equipment used solely for pollution control, prevention, or
abatement; machinery and equipment used for environmental
control, except that when a controlled environment is essential
for the manufacture of a particular product, the machinery or
equipment that controls the environment can qualify as capital
equipment; and machinery and equipment used in plant cleaning,
disposal of scrap and waste, plant communications, space
heating, lighting, or safety;
(6) "farm machinery" as defined by subdivision 15, "special
tooling" as defined by subdivision 17, and "aquaculture
production equipment" as defined by subdivision 19, and
"replacement capital equipment" as defined by subdivision 20; or
(7) any other item that is not essential to the integrated
process of manufacturing, fabricating, mining, quarrying, or
refining.
(d) For purposes of this subdivision:
(1) "Equipment" means independent devices or tools separate
from machinery but essential to an integrated production
process, including computers and software, used in operating
machinery and equipment; and any subunit or assembly comprising
a component of any machinery or accessory or attachment parts of
machinery, such as tools, dies, jigs, patterns, and molds.
(2) "Fabricating" means to make, build, create, produce, or
assemble components or property to work in a new or different
manner.
(3) "Machinery" means mechanical, electronic, or electrical
devices, including computers and software, that are purchased or
constructed to be used for the activities set forth in paragraph
(a), beginning with the removal of raw materials from inventory
through the completion of the product, including packaging of
the product.
(4) "Manufacturing" means an operation or series of
operations where raw materials are changed in form, composition,
or condition by machinery and equipment and which results in the
production of a new article of tangible personal property. For
purposes of this subdivision, "manufacturing" includes the
generation of electricity or steam to be sold at retail.
(5) "Mining" means the extraction of minerals, ores, stone,
and peat.
(6) "On-line data retrieval system" means a system whose
cumulation of information is equally available and accessible to
all its customers.
(7) "Pollution control equipment" means machinery and
equipment used to eliminate, prevent, or reduce pollution
resulting from an activity described in paragraph (a).
(8) "Primarily" means machinery and equipment used 50
percent or more of the time in an activity described in
paragraph (a).
(9) "Refining" means the process of converting a natural
resource to a product, including the treatment of water to be
sold at retail.
(c) (e) For purposes of this subdivision:
(1) the requirement that the machinery or equipment "must
be used by the purchaser or lessee" means that the person who
purchases or leases the machinery or equipment must be the one
who uses it for the qualifying purpose. When a contractor buys
and installs machinery or equipment as part of an improvement to
real property, only the contractor is considered the purchaser;.
(2) the requirement that the machinery and equipment must
be used "for manufacturing, fabricating, mining, quarrying, or
refining" means that the machinery or equipment must be
essential to the integrated process of manufacturing,
fabricating, mining, quarrying, or refining. Neither legal
requirements nor practical necessity determines whether or not
the equipment is essential to the integrated process;
(3) "facility" means a coordinated group of fixed assets,
which may include land, buildings, machinery, and equipment that
are essential to and used in an integrated manufacturing,
fabricating, refining, mining, or quarrying process;
(4) "establishment of a new facility" means the
construction of a facility, or the purchase by a new owner of a
facility that was previously closed and not operational for a
period of at least 12 consecutive months. Relocating operations
from an existing facility within Minnesota to another facility
within Minnesota does not constitute establishing a new
facility;
(5) "physical expansion of an existing facility" means
adding a new production line, adding new machinery or equipment
to an existing production line, new construction which will
become part of the existing facility and which is used for a
qualifying activity, or conversion of an area in an existing
facility from a nonqualifying activity to a qualifying activity;
and
(6) performing "substantially the same function" means that
the new machinery or equipment serves fundamentally or
essentially the same purpose as did the old equipment or that it
produces the same or similar end product, even though it may
increase speed, efficiency, or production capacity.
(d) (f) Notwithstanding prior provisions of this
subdivision, machinery and equipment purchased or leased to
replace machinery and equipment used in the mining or production
of taconite shall qualify as capital equipment regardless of
whether the facility has been expanded.
Sec. 3. Minnesota Statutes 1992, section 297A.01, is
amended by adding a subdivision to read:
Subd. 20. [REPLACEMENT CAPITAL EQUIPMENT.] (a) Replacement
capital equipment means machinery and equipment, as defined in
subdivision 16, that serves fundamentally or essentially the
same purpose or function or that produces the same or similar
end product as did the old equipment, even though it may
increase speed, efficiency, or production capacity.
(b) Replacement capital equipment includes:
(1) repair and replacement parts, including accessories,
whether purchased as spare parts, repair parts, or as upgrades
or modifications to machinery or equipment;
(2) replacement or enhanced software used or required to
operate, control, or regulate machinery or equipment;
(3) materials used for foundations that support machinery
or equipment or special purpose buildings used in the production
process; or
(4) all machinery and equipment that is replacing an
existing piece of machinery or equipment that is essential to
the integrated production process.
Sec. 4. Minnesota Statutes 1992, section 297A.02, is
amended to read:
297A.02 [IMPOSITION OF TAX.]
Subdivision 1. [GENERALLY.] Except as otherwise provided
in this chapter, there is imposed an excise tax of six 6.5
percent of the gross receipts from sales at retail made by any
person in this state.
Subd. 2. [MACHINERY AND EQUIPMENT.] Notwithstanding the
provisions of subdivision 1, the rate of the excise tax imposed
upon sales of special tooling is four percent and upon sales of
farm machinery and aquaculture production equipment is two 2.5
percent.
Subd. 3. [LIQUOR AND BEER SALES.] Notwithstanding the
provisions of subdivision 1, the rate of the excise tax imposed
upon sales of intoxicating liquor, as defined in section
340A.101, subdivision 14, and 3.2 percent malt liquor, as
defined in section 340A.101, subdivision 19, shall be 8.5 nine
percent. The 3.2 percent malt liquor is subject to taxation
under this subdivision only when sold at an on-sale or off-sale
municipal liquor store or other establishment licensed to sell
any type of intoxicating liquor.
Subd. 4. [MANUFACTURED HOUSING.] Notwithstanding the
provisions of subdivision 1, for sales at retail of manufactured
homes used for residential purposes the excise tax is imposed
upon 65 percent of the sales price of the home.
Subd. 5. [REPLACEMENT CAPITAL EQUIPMENT.] Notwithstanding
the provisions of subdivision 1, the rate of excise tax imposed
upon retail sales of replacement capital equipment is:
for purchases after June 30, 1994, and prior to July 1,
1995, 5.0 percent,
for purchases after June 30, 1995, and prior to July 1,
1996, 4.0 percent,
for purchases after June 30, 1996, and prior to July 1,
1997, 3.8 percent,
for purchases after June 30, 1997, and prior to July 1,
1998, 2.9 percent, and
for purchases after June 30, 1998, 2.0 percent.
This subdivision shall cease to be operative on July 1,
2001, or on July 1 of the earliest year thereafter, if the total
employment in the manufacturing sector in this state, as
determined by the commissioner of jobs and training on the
preceding January 1, does not exceed by 4,500 the total
employment in the manufacturing sector in the state on January
1, 1994.
Sec. 5. [297A.022] [COORDINATION OF STATE AND LOCAL SALES
TAX RATES.]
In preparing and distributing a sales tax schedule for use
within a local jurisdiction with a separate general sales tax,
the state department of revenue shall coordinate the state,
local option, and local sales tax so that a sale of $1 reflects
a tax equal to the combination of the state, local option, and
local sales tax rate. The combined sales tax on other sales
amounts shall also reflect the coordinated rather than the
separate effects of the three sales taxes. The schedule must be
coordinated as long as the local sales tax is in effect. If the
sales tax percentage is changed for any of the taxes, the
schedule shall be adjusted to reflect the change.
Sec. 6. Minnesota Statutes 1992, section 297A.135,
subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED.] A tax of $7.50 is imposed on
the lease or rental in this state for not more than 28 days of a
passenger automobile as defined in section 168.011, subdivision
7, a van as defined in section 168.011, subdivision 28, or a
pickup truck as defined in section 168.011, subdivision 29. The
tax is imposed at the rate of 6.2 percent of the sales price as
defined for the purpose of imposing the sales and use tax in
this chapter. The tax does not apply to the lease or rental of
a hearse or limousine used in connection with a burial or
funeral service. It applies whether or not the vehicle is
licensed in the state.
Sec. 7. Minnesota Statutes 1992, section 297A.15,
subdivision 5, is amended to read:
Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding the
provisions of section sections 297A.02, subdivision 5, and
297A.25, subdivisions 42 and 50, the tax on sales of capital
equipment, replacement capital equipment, and construction
materials and supplies under section 297A.25, subdivision 50,
shall be imposed and collected as if the rates under sections
297A.02, subdivision 1, and 297A.021, applied. Upon application
by the purchaser, on forms prescribed by the commissioner, a
refund equal to the reduction in the tax due as a result of the
application of the exemption under section 297A.25, subdivision
42 or 50, and the rates under sections 297A.02, subdivision 5,
and 297A.021 shall be paid to the purchaser. In the case of
building materials qualifying under section 297A.25, subdivision
50, where the tax was paid by a contractor, application must be
made by the owner for the sales tax paid by all the contractors,
subcontractors, and builders for the project. The application
must include sufficient information to permit the commissioner
to verify the sales tax paid for the project. The application
shall include information necessary for the commissioner
initially to verify that the purchases qualified as capital
equipment under section 297A.25, subdivision 42, replacement
capital equipment under section 297A.01, subdivision 20, or
capital equipment or construction materials and supplies under
section 297A.25, subdivision 50. No more than two applications
for refunds may be filed under this subdivision in a calendar
year. No owner may apply for a refund based on the exemption
under section 297A.25, subdivision 50, before July 1, 1993.
Unless otherwise specifically provided by this subdivision, the
provisions of section 289A.40 apply to the refunds payable under
this subdivision. There is annually appropriated to the
commissioner of revenue the amount required to make the refunds.
The amount to be refunded shall bear interest at the rate
in section 270.76 from the date the refund claim is filed with
the commissioner.
Sec. 8. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 53. [SPECIAL TOOLING.] The gross receipts from the
sale of special tooling are exempt.
Sec. 9. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 54. [USED FARM TIRES.] The first $5,000 of gross
receipts from the sales of used, remanufactured, or repaired
tires for farm machinery, by a sole proprietor, in a calendar
year are exempt provided that:
(1) the seller had gross receipts from all sales of less
than $10,000 in the previous year; and
(2) the tires are not retreaded.
Sec. 10. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 55. [CONSTRUCTION MATERIALS; CORRUGATED RECYCLING
FACILITIES.] Construction materials and supplies are exempt from
the tax imposed under this chapter, regardless of whether
purchased by the owner or a contractor, subcontractor, or
builder if:
(1) the materials and supplies are used or consumed in
constructing a new facility which reduces the flow of solid
waste by creating a market for recycled corrugated waste; and
(2) the recycling process of the facility produces pulp or
paper from corrugated waste.
The exemption provided by this subdivision applies to
construction materials and supplies purchased prior to December
31, 1997.
Sec. 11. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 56. [FIREFIGHTERS PERSONAL PROTECTIVE EQUIPMENT.]
The gross receipts from the sale of firefighters personal
protective equipment are exempt. For purposes of this
subdivision, "personal protective equipment" includes: helmets
(including face shields, chin straps, and neck liners), bunker
coats and pants (including pant suspenders), boots, gloves, head
covers or hoods, wildfire jackets, protective coveralls,
goggles, self-contained breathing apparatuses, canister filter
masks, personal alert safety systems, spanner belts, and all
safety equipment required by the Occupational Safety and Health
Administration.
Sec. 12. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 57. [HORSES.] The gross receipts from the sale of
horses other than racehorses taxable under section 297A.01,
subdivision 3, paragraph (h), are exempt.
Sec. 13. Minnesota Statutes 1992, section 297A.25, is
amended by adding a subdivision to read:
Subd. 58. [PERSONAL COMPUTERS PRESCRIBED FOR USE BY
SCHOOL.] The gross receipts from the sale, or the storage, use
or consumption, of personal computers and related software sold
by a public or private school, college, university, or business
or trade school to students who are enrolled at the institutions
are exempt if:
(1) the use of the personal computer, or of a substantially
similar model of computer, and the related software is
prescribed by the institution in conjunction with a course of
study; and
(2) each student of the institution, or of a unit of the
institution in which the student is enrolled, is required by the
institution to purchase or otherwise to acquire and possess such
a personal computer and related software as a condition of
enrollment. For the purposes of this subdivision, "public
school," "private school," and "business and trade schools" have
the meanings given in subdivision 21.
Sec. 14. Minnesota Statutes 1992, section 297A.256, is
amended to read:
297A.256 [EXEMPTIONS FOR CERTAIN NONPROFIT GROUPS.]
Subdivision 1. [FUNDRAISING SALES BY NONPROFIT GROUPS.]
Notwithstanding the provisions of this chapter, the following
sales made by a "nonprofit organization" are exempt from the
sales and use tax.
(a)(1) All sales made by an organization for fundraising
purposes if that organization exists solely for the purpose of
providing educational or social activities for young people
primarily age 18 and under. This exemption shall apply only if
the gross annual sales receipts of the organization from
fundraising do not exceed $10,000.
(2) A club, association, or other organization of
elementary or secondary school students organized for the
purpose of carrying on sports, educational, or other
extracurricular activities is a separate organization from the
school district or school for purposes of applying the $10,000
limit. This paragraph does not apply if the sales are derived
from admission charges or from activities for which the money
must be deposited with the school district treasurer under
section 123.38, subdivision 2, or be recorded in the same manner
as other revenues or expenditures of the school district under
section 123.38, subdivision 2b.
(b) All sales made by an organization for fundraising
purposes if that organization is a 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 and no part of the net earnings inure to the benefit of
any private shareholders. This exemption shall apply only if
the gross annual sales receipts of the organization from
fundraising do not exceed $10,000.
(c) The gross receipts from the sales of tangible personal
property at, admission charges for, and sales of food, meals, or
drinks at fundraising events sponsored by a nonprofit
organization when the entire proceeds, except for the necessary
expenses therewith, will be used solely and exclusively for
charitable, religious, or educational purposes. This exemption
does not apply to admission charges for events involving bingo
or other gambling activities or to charges for use of amusement
devices involving bingo or other gambling activities. For
purposes of this clause, a "nonprofit organization" means any
unit of government, corporation, society, association,
foundation, or institution organized and operated for
charitable, religious, educational, civic, fraternal, senior
citizens' or veterans' purposes, no part of the net earnings of
which enures to the benefit of a private individual.
If the profits are not used solely and exclusively for
charitable, religious, or educational purposes, the entire gross
receipts are subject to tax.
Each nonprofit organization shall keep a separate
accounting record, including receipts and disbursements from
each fundraising event. All deductions from gross receipts must
be documented with receipts and other records. If records are
not maintained as required, the entire gross receipts are
subject to tax.
The exemption provided by this section does not apply to
any sale made by or in the name of a nonprofit corporation as
the active or passive agent of a person that is not a nonprofit
corporation.
The exemption for fundraising events under this section is
limited to no more than 24 days a year. Fundraising events
conducted on premises leased or occupied for more than four days
but less than 30 days do not qualify for this exemption.
The gross receipts from the sale or use of tickets or
admissions to a golf tournament held in Minnesota are exempt if
the beneficiary of the tournament's net proceeds qualifies as a
tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code, including a tournament conducted on premises
leased or occupied for more than four days.
Subd. 2. [STATEWIDE AMATEUR ATHLETIC GAMES.]
Notwithstanding section 297A.01, subdivision 3, or any other
provision of this chapter, the gross receipts from the following
sales made to or by a nonprofit corporation designated by the
Minnesota amateur sports commission to conduct a series of
statewide amateur athletic games and related events, workshops,
clinics are exempt:
(1) sales of tangible personal property to or the storage,
use, or other consumption of tangible personal property by the
nonprofit corporation; and
(2) sales of tangible personal property, admission charges,
and sales of food, meals, and drinks by the nonprofit
corporation at fundraising events, athletic events, or athletic
facilities.
Sec. 15. [297A.2572] [AGRICULTURE PROCESSING FACILITY
MATERIALS; EXEMPTION.]
Purchases of construction materials and supplies are exempt
from the sales and use taxes imposed under this chapter,
regardless of whether purchased by the owner or a contractor,
subcontractor, or builder, if the materials and supplies are
used or consumed in constructing an agriculture processing
facility as defined in section 469.1811 in which the total
capital investment in the processing facility is expected to
exceed $100,000,000. The tax shall be imposed and collected as
if the rates under sections 297A.02, subdivision 1, and
297A.021, applied, and then refunded in the manner provided in
section 297A.15, subdivision 5.
Sec. 16. Minnesota Statutes 1992, section 297A.44,
subdivision 1, is amended to read:
Subdivision 1. (a) Except as provided in paragraphs (b),
(c), and (d), and subdivision 4, all revenues, including
interest and penalties, derived from the excise and use taxes
imposed by sections 297A.01 to 297A.44 shall be deposited by the
commissioner in the state treasury and credited to the general
fund.
(b) All excise and use taxes derived from sales and use of
property and services purchased for the construction and
operation of an agricultural resource project, from and after
the date on which a conditional commitment for a loan guaranty
for the project is made pursuant to section 41A.04, subdivision
3, shall be deposited in the Minnesota agricultural and economic
account in the special revenue fund. The commissioner of
finance shall certify to the commissioner the date on which the
project received the conditional commitment. The amount
deposited in the loan guaranty account shall be reduced by any
refunds and by the costs incurred by the department of revenue
to administer and enforce the assessment and collection of the
taxes.
(c) All revenues, including interest and penalties, derived
from the excise and use taxes imposed on sales and purchases
included in section 297A.01, subdivision 3, paragraphs (d) and
(l), clauses (1) and (2), must be deposited by the commissioner
in the state treasury, and credited as follows:
(1) first to the general obligation special tax bond debt
service account in each fiscal year the amount required by
section 16A.661, subdivision 3, paragraph (b); and
(2) after the requirements of clause (1) have been met, the
balance must be credited to the general fund.
(d) The revenues, including interest and penalties, derived
from the taxes imposed on solid waste collection services as
described in section 297A.45, except for the tax imposed under
section 297A.021, shall be deposited by the commissioner in the
state treasury and credited to the general fund to be used for
funding solid waste reduction and recycling programs.
Sec. 17. Minnesota Statutes 1993 Supplement, section
297B.03, is amended to read:
297B.03 [EXEMPTIONS.]
There is specifically exempted from the provisions of this
chapter and from computation of the amount of tax imposed by it
the following:
(1) Purchase or use, including use under a lease purchase
agreement or installment sales contract made pursuant to section
465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in
and subject to the conditions provided in section 297A.25,
subdivision 18.
(2) Purchase or use of any motor vehicle by any person who
was a resident of another state at the time of the purchase and
who subsequently becomes a resident of Minnesota, provided the
purchase occurred more than 60 days prior to the date such
person began residing in the state of Minnesota.
(3) Purchase or use of any motor vehicle by any person
making a valid election to be taxed under the provisions of
section 297A.211.
(4) Purchase or use of any motor vehicle previously
registered in the state of Minnesota by any corporation or
partnership when such transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code of
1986, as amended through December 31, 1988.
(5) Purchase or use of any vehicle owned by a resident of
another state and leased to a Minnesota based private or for
hire carrier for regular use in the transportation of persons or
property in interstate commerce provided the vehicle is titled
in the state of the owner or secured party, and that state does
not impose a sales or motor vehicle excise tax on motor vehicles
used in interstate commerce.
(6) Purchase or use of a motor vehicle by a private
nonprofit or public educational institution for use as an
instructional aid in automotive training programs operated by
the institution. "Automotive training programs" includes motor
vehicle body and mechanical repair courses but does not include
driver education programs.
(7) Purchase of a motor vehicle for use as an ambulance by
an ambulance service licensed under section 144.802.
(8) Purchase of a motor vehicle by or for a public library,
as defined in section 134.001, subdivision 2, as a bookmobile or
library delivery vehicle.
Sec. 18. [297B.032] [REFUND ON PARK TRAILERS;
APPROPRIATION.]
Notwithstanding the provisions of section 297B.02, or any
other law to the contrary, a portion of the motor vehicle excise
tax paid on park trailers, as defined in section 168.011,
subdivision 8, paragraph (b), under chapter 297B shall be
refunded by the commissioner of revenue provided the following
conditions are met:
(1) the park trailer is purchased after January 1, 1993;
(2) the owner paid the motor vehicle excise tax on the park
trailer;
(3) property taxes have been imposed upon the park trailer
for at least the last two taxes payable years; and
(4) property taxes on the park trailer for the years cited
in clause (3) have been paid by the owner of the park trailer.
Upon application by the purchaser, on forms prescribed by
the commissioner of revenue, a refund equal to 35 percent of the
actual taxes paid, shall be paid to the purchaser. The
application must include sufficient information, including a
copy of the sales invoice for the park trailer, and the property
tax statements for the years cited in clause (3), or a
reproduction thereof, with a notation from the county treasurer
that the taxes have been paid on the park trailer.
The amounts required to make the refunds are annually
appropriated to the commissioner of revenue from the general
fund. The amount to be refunded shall bear interest at the rate
in section 270.76 after 60 days after the refund claim was made
until the date the refund is paid.
Sec. 19. Laws 1993, chapter 375, article 9, section 51, is
amended to read:
Sec. 51. [EFFECTIVE DATE.]
Sections 1 to 12, 22, 31, 32, the part of section 34
exempting certain chore and homemaking services, 44 and 49 are
effective the day following final enactment.
Section 13 is effective for taxes due on or after July 1,
1993.
Section 14 is effective for fees due on or after July 1,
1993.
Section 15 is effective for refund claims submitted on or
after July 1, 1993.
Sections 16, 26 to 29, 36 to 39, and 43 are effective July
1, 1993.
Sections 17 and 20 are effective July 1, 1993, for
deliveries of rerefined waste oil on and after that date.
Sections 23 and 24 are effective the day following final
enactment and apply to all open tax years.
Section 25 is effective for claims for refund filed after
May 5, 1993, except that in the case of the mining or production
of taconite, Minnesota Statutes 1992, section 297A.01,
subdivision 16, paragraphs (a), (b), and (c), as amended or
added by section 25, are effective for refund claims filed after
May 17, 1993, and except that the extension of the exemption for
capital equipment used to produce an on-line computerized data
retrieval system and, as provided in section 25, paragraph (d),
to replacement equipment used in the production of taconite, is
effective for sales after June 30, 1993.
Section 30 is effective for sales of 900 information
services made after June 30, 1993.
Except as otherwise provided, sections 34 and 35 are
effective for sales made after June 30, 1993. The part of
section 34 exempting sales of machinery and equipment for solid
waste disposal and collection is effective for sales made after
May 31, 1992.
Section 40 is effective for pollution equipment installed
after June 30, 1993.
Sections 41 and 42 are effective for reports due after July
1, 1993.
Section 48 is effective for sales or uses of tickets or
admissions occurring after December 31, 1992, and before July 1,
1993.
Sec. 20. [ETHANOL MANUFACTURING FACILITY; EXEMPTIONS FOR
CAPITAL EQUIPMENT PURCHASES.]
Notwithstanding the provisions of Minnesota Statutes,
chapter 297A, the purchase of capital equipment by a contractor,
for installation in a new ethanol manufacturing facility, is
exempt from the sales and use tax. "Capital equipment" means
equipment and machinery as defined in Minnesota Statutes,
section 297A.01, subdivision 16, but disregarding the provision
that the capital equipment must be used by the purchaser or
lessee. The tax shall be imposed and refunded in the manner
provided in Minnesota Statutes, section 297A.15, subdivision 5.
The refund under this section is limited to a maximum of
$300,000.
Sec. 21. [INSTRUCTION TO THE REVISOR.]
In the 1994 and subsequent editions of the Minnesota
Statutes, the revisor shall substitute the term "sales tax on
motor vehicles" for "motor vehicle excise tax" wherever it
appears.
Sec. 22. [REPEALER.]
Minnesota Statutes 1992, sections 297A.021; 297A.44,
subdivision 4; and 297B.09, subdivision 3, are repealed.
Sec. 23. [EFFECTIVE DATES.]
Sections 1, 14, and 19 are effective the day following
final enactment.
Sections 2, 3, 6 to 8, 11, 13, 15, and 17 are effective for
sales made after June 30, 1994, provided that no refunds shall
be paid under section 15 until after June 30, 1995.
Section 4, subdivision 5, and the part of subdivision 2
relating to special tooling are effective for sales made after
June 30, 1994.
Section 4, subdivisions 1, 3, 4, and the part of
subdivision 2 relating to farm machinery and aquaculture
production equipment are effective for sales made after June 30,
1996, only upon enactment of article 3, sections 6, 7, 8, 9, 11,
and 18, subdivision 2.
Section 5 is effective beginning August 1, 1994.
Section 10 is effective for sales made after January 1,
1994.
Section 12 is effective for sales made after June 30, 1995.
Sections 16 and 22 are effective July 1, 1996, only upon
enactment of article 3, sections 6, 7, 8, 9, 11, and 18,
subdivision 2.
Section 20 is effective for purchases made after July 1,
1993, but before July 1, 1995.
ARTICLE 3
LOCAL GOVERNMENT AIDS AND AID FUNDING
Section 1. Minnesota Statutes 1992, section 16A.711,
subdivision 4, is amended to read:
Subd. 4. [GENERAL FUND ADVANCES.] If the money in the
trust fund is insufficient to make payments on the dates
provided by law, but the commissioner estimates receipts for the
biennium will be sufficient, the commissioner shall advance
money from the general fund to the trust fund necessary to make
the payments. On or before the close of the biennium When
sufficient revenues have accumulated in the trust fund, the
trust shall repay the advances to the general fund.
Sec. 2. Minnesota Statutes 1992, section 16A.711,
subdivision 5, is amended to read:
Subd. 5. [ADJUSTMENTS FOR LOCAL GOVERNMENT TRUST FUND
REVENUES.] (a) For the second fiscal year of each biennium, the
commissioner of revenue shall make adjustments in aid amounts so
that the based on the difference between anticipated total
obligations of the local government trust fund are equal to and
anticipated total revenues of the local government trust
fund. For purposes of this subdivision, obligations of the
trust fund for any biennium include obligations to repay
advances from the general fund in the previous biennium.
In the event that anticipated total obligations of the
trust fund exceed 102 percent of anticipated total revenues for
the biennium, each jurisdiction's aid will be reduced as
provided under section 477A.0132 by the amount of the
expenditures over 102 percent of revenues. For fiscal year 1993
only, if reductions are necessary in an amount greater than
$6,700,000, the additional reduction for the shortfall beyond
$6,700,000 will be applied only to aids under section 477A.013.
In the event that anticipated total obligations of the
trust fund are less than 98 percent of anticipated total
revenues for the biennium, aid amounts for the following
programs will be proportionately increased to bring anticipated
total expenditures into conformance with up to 98 percent of
anticipated total revenues:
(1) local government aid and equalization aid under section
477A.013;
(2) community social services aid under section 256E.06;
and
(3) county criminal justice aid under section 477A.0121.
(b) For purposes of applying sections 16A.15 and 16A.152,
the commissioner shall combine the general fund and the local
government trust fund in determining whether there are
sufficient receipts to fund appropriations and allotments of the
two funds.
Sec. 3. Minnesota Statutes 1993 Supplement, section
16A.712, is amended to read:
16A.712 [LOCAL GOVERNMENT TRUST; APPROPRIATIONS IN FISCAL
YEAR 1993 AND SUBSEQUENT YEARS.]
(a) The amounts necessary to make the following payments in
fiscal year 1993 and subsequent years are appropriated from the
local government trust fund to the commissioner of revenue
unless otherwise specified:
(1) attached machinery aid to counties under section
273.138;
(2) in fiscal year 1993 only, supplemental homestead credit
under section 273.1391;
(3) $560,000 in fiscal year 1993 and $300,000 annually in
fiscal years 1994 and 1995 for tax administration;
(4) (3) $105,000 annually to the commissioner of finance in
fiscal years 1993, 1994, and 1995 to administer the trust fund;
and
(5) (4) $25,000 annually to the advisory commission on
intergovernmental relations in fiscal years 1993, year 1994, and
1995 to pay nonlegislative members' per diem expenses and such
other expenses as the commission deems appropriate; and
(6) $350,000 in fiscal year 1993 and (5) $1,200,000 in
fiscal year 1995 to the intergovernmental information systems
advisory council to develop a local government financial
reporting system, with the participation and ongoing oversight
of the legislative commission on planning and fiscal policy; and
(7) in fiscal year 1993 only, the transition credit under
section 273.1398, subdivision 5, and the disparity reduction
credit under section 273.1398, subdivision 4, for school
districts. The school districts' transition credit and
disparity reduction credit shall be appropriated to the
commissioner of education.
(b) In addition, the legislature shall appropriate the rest
of the trust fund receipts for fiscal year 1993 and subsequent
years to finance intergovernmental aid formulas or programs
prescribed by law.
Sec. 4. Minnesota Statutes 1992, section 256E.06,
subdivision 5, is amended to read:
Subd. 5. [COMMUNITY SOCIAL SERVICE LEVY.] In each calendar
year, for taxes payable the following year, a county board shall
levy upon all taxable property in the county a tax for community
social services at least equal to the amount determined in
subdivisions 1 and 2. Money for community social services
provided to a county by a municipal levy may, for the purposes
of this section, be counted as partial fulfillment of the local
levy requirement. All money available to counties pursuant to
this section may be used by counties to match federal money. It
is the intention of the legislature that the aid paid to
counties under this section be used to provide property tax
relief within the county.
Sec. 5. Minnesota Statutes 1993 Supplement, section
256E.06, subdivision 12, is amended to read:
Subd. 12. [APPROPRIATION.] $51,566,000 is appropriated
from the local government trust fund in fiscal year 1993,
$50,762,000 in fiscal year 1994, and $49,499,000 in fiscal year
1995, and $50,499,000 in fiscal year 1996 and thereafter to the
commissioner of human services for payment of aid under this
section.
Notwithstanding subdivisions 1 and 2, the increased
appropriation available in fiscal year 1996 and thereafter must
be used to increase each county's aid proportionately over the
aid received in calendar year 1994. For calendar year 1995
only, each county's aid will be adjusted to reflect the increase
that is required to occur in the second half of the calendar
year.
In fiscal year 1997 and subsequent years, the amount
appropriated shall be the amount appropriated under this section
in the previous year, adjusted for inflation as provided under
section 477A.03, subdivision 3.
Sec. 6. Minnesota Statutes 1992, section 256E.06, is
amended by adding a subdivision to read:
Subd. 13. [APPROPRIATION.] In fiscal years 1997 and
thereafter, there is appropriated from the general fund to the
commissioner of human services for payment of aid under this
section the amount appropriated in the previous year under this
section, adjusted for inflation as provided under section
477A.03, subdivision 3.
Notwithstanding subdivisions 1 and 2, the increased
appropriation available in fiscal year 1997 and thereafter must
be used to increase each county's aid proportionately over the
aid received in calendar year 1994.
Sec. 7. Minnesota Statutes 1992, section 273.138, is
amended by adding a subdivision to read:
Subd. 7. [ANNUAL APPROPRIATION.] A sum sufficient to make
the payments required by this section to school districts is
annually appropriated from the general fund to the commissioner
of education. A sum sufficient to make the payments required by
this section to counties is annually appropriated from the
general fund to the commissioner of revenue.
Sec. 8. Minnesota Statutes 1992, section 273.1398, is
amended by adding a subdivision to read:
Subd. 8. [APPROPRIATION.] An amount sufficient to pay the
aids and credits provided under this section for school
districts, intermediate school districts, or any group of school
districts levying as a single taxing entity, is annually
appropriated from the general fund to the commissioner of
education. An amount sufficient to pay the aids and credits
provided under this section for counties, cities, towns, and
special taxing districts is annually appropriated from the
general fund to the commissioner of revenue. A jurisdiction's
aid amount may be increased or decreased based on any prior year
adjustments for homestead credit or other property tax credit or
aid programs.
Sec. 9. Minnesota Statutes 1993 Supplement, section
273.166, is amended by adding a subdivision to read:
Subd. 5. [APPROPRIATION.] There is annually appropriated
from the general fund to the commissioner of education a sum
sufficient to pay the aids provided under this section for
school districts, intermediate school districts, or any group of
school districts levying as a single taxing entity. There is
annually appropriated from the general fund to the commissioner
of revenue a sum sufficient to pay the aids provided under this
section to counties, cities, towns, and special taxing districts.
Sec. 10. 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. In the case of the city of Minneapolis, the
levy for the Minneapolis library board and the levy for
Minneapolis park and recreation shall be listed separately from
the remaining amount of the city's levy. In the case of a
parcel where tax increment or the fiscal disparities areawide
tax applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide
tax must each be stated separately and not included in the sum
of the special taxing districts; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed or, for a
town, final taxes payable the following year, expressed as a
dollar amount and as a percentage.
(e) The notice must clearly state that the proposed or
final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, school
district levy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) any additional amount levied in lieu of a local sales
and use tax, unless this amount is included in the proposed or
final taxes; 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. 11. Minnesota Statutes 1993 Supplement, section
290A.23, is amended by adding a subdivision to read:
Subd. 3. [ANNUAL APPROPRIATION.] For payments made after
July 1, 1996, there is annually appropriated from the general
fund to the commissioner of revenue the amount necessary to make
the payments required under section 290A.04, subdivisions 2 and
2h.
Sec. 12. [462C.15] [MORTGAGE CREDIT CERTIFICATE AID.]
Subdivision 1. [APPLICATION.] By May 15 of each year, a
city issuing mortgage credit certificates during the previous
calendar year shall report to the commissioner of trade and
economic development. The report shall be in a form and contain
the information necessary to determine the aid amounts, as
prescribed by the commissioner. The report shall contain, at
least, for each mortgage loan for which a mortgage credit
certificate was issued: (1) the principal amount of the loan,
(2) the interest rate on the loan, (3) the term of the loan, and
(4) the credit rate.
Subd. 2. [PAYMENT OF AID.] By July 15 of each year, the
commissioner of trade and economic development shall pay
mortgage credit certificate aid to each city issuing
certificates during the previous calendar year and submitting a
timely application under subdivision 1. The amount of aid to be
paid to a city for a calendar year equals the sum of the aid for
each mortgage credit certificate issued by the city for a
mortgage loan that is outstanding during the calendar year,
assuming no prepayment of principal. The amount of mortgage
credit certificate aid for each mortgage credit certificate
equals eight percent multiplied by the product of the credit
rate, the outstanding principal amount of the loan, and the
original interest rate on the loan. For purposes of calculating
the aid for a variable rate loan, the original interest rate
means the interest rate that applies in the first year of the
loan. For purposes of calculating the aid, the commissioner
shall assume level amortization with no prepayment of principal.
Subd. 3. [USE OF AID.] The city shall transfer the aid to
its housing authority to be used to provide homeownership
programs to families or individuals whose incomes are at or
below 80 percent of the area median income.
Subd. 4. [APPROPRIATION.] An amount sufficient to pay the
aid under this section is appropriated from the general fund to
the commissioner of trade and economic development.
Subd. 5. [DEFINITIONS.] The definitions in section 462C.02
apply to this section.
Sec. 13. [477A.0122] [FAMILY PRESERVATION AID.]
Subdivision 1. [PURPOSE.] The purpose of family
preservation aid is to reduce the rate of increase in the costs
of out-of-home placement of children and concomitant increases
in county property taxes. Aids paid under this section must be
used to fund family preservation programs.
Subd. 2. [DEFINITIONS.] For purposes of this section, the
following definitions apply:
(a) "Children in out-of-home placement" means the total
unduplicated number of children in out-of-home care as reported
pursuant to section 275.0725.
(b) "Family preservation programs" means family-based
services as defined in section 256F.03, subdivision 5, families
first services, parent and child education programs, and day
treatment services provided in cooperation with a school
district or other programs as defined by the commissioner of
human services.
(c) "Income maintenance caseload" means average monthly
number of AFDC cases for the calendar year.
By July 1, 1994, the commissioner of human services shall
certify to the commissioner of revenue the number of children in
out-of-home placement in 1991 and 1992 for each county and the
income maintenance caseload for each county for the most recent
year available. By July 1 of each subsequent year, the
commissioner of human services shall certify to the commissioner
of revenue the income maintenance caseload for each county for
the most recent calendar year available.
Subd. 3. [AID DISTRIBUTION; CALENDAR YEAR 1995.] For aid
paid in calendar year 1995 only, one-half of the aid amount
shall be paid to each county in the same proportion that the
county's number of children in out-of-home placement is to the
number of children in out-of-home placement for all counties
within the state for 1991 and 1992, and one-half of the aid
amount shall be paid to each county in the same proportion that
the county's income maintenance caseload is to the income
maintenance caseload for all counties within the state.
Subd. 4. [AID DISTRIBUTION; CALENDAR YEAR 1996 AND
THEREAFTER.] For aid paid in calendar year 1996 and thereafter,
each county shall receive the same proportion of the total aid
it received in the prior year, multiplied by one plus the
percentage change in the county's share of the statewide income
maintenance caseload. If the amount appropriated does not equal
the aid amounts calculated under this subdivision, the
commissioner of revenue shall proportionately reduce or increase
the aid amounts so that their sum equals the amount appropriated.
Subd. 5. [PAYMENT.] The commissioner of revenue shall pay
the amounts determined under this section as provided in section
477A.015.
Subd. 6. [REPORT.] On or before March 15 of the year
following the year in which the distributions under this section
are received, each county shall file with the commissioner of
revenue and commissioner of human services a report on prior
year expenditures for out-of-home placement and family
preservation, including expenditures under this section.
Sec. 14. Minnesota Statutes 1993 Supplement, section
477A.013, subdivision 1, is amended to read:
Subdivision 1. [TOWNS.] In calendar year 1990, each town
that had levied for taxes payable in the prior year a local tax
rate of at least .008 shall receive a distribution equal to 106
percent of the amount received in 1989 under this subdivision.
In calendar years 1991 and 1992, each town that had levied for
taxes payable in the prior year a local tax rate of at least
.008 shall receive a distribution equal to the amount it
received in the previous year under this subdivision less any
permanent reductions made under section 477A.0132. In 1993,
each town that had levied for taxes payable in the prior year a
local tax rate of at least .008 shall receive a distribution
equal to the amount it received in 1992 under this subdivision
before any nonpermanent reductions made under section 477A.0132
plus $1 per capita based on the town's population. In 1994 and
thereafter each town that had levied for taxes payable in the
prior year a local tax rate of at least .008 shall receive a
distribution equal to the amount it received in 1993 under this
section before any nonpermanent reductions made under section
477A.0132. In 1995 each town that had levied for taxes payable
in 1993 a local tax rate of at least .008 shall receive a
distribution equal to 102 percent of the amount it received in
1994 under this section before any increases or reductions under
sections 16A.711, subdivision 5, and 477A.0132. In 1996 and
subsequent years each town that had levied for taxes payable in
1993 a local tax rate of at least .008 shall receive a
distribution equal to the amount it received in the previous
year under this section, adjusted for inflation as provided
under section 477A.03, subdivision 3.
Sec. 15. Minnesota Statutes 1993 Supplement, section
477A.013, subdivision 8, as amended by Laws 1994, chapter 416,
article 1, section 59, is amended to read:
Subd. 8. [CITY FORMULA AID INCREASE.] (a) In calendar year
1994 and subsequent years, the formula 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. No city may have a formula aid amount less
than zero. The need increase percentage must be the same for
all cities.
Notwithstanding the prior sentence, in 1995 only, the need
increase percentage for a city shall be twice the need increase
percentage applicable to other cities if:
(1) the city, in 1992 or 1993, transferred an amount from
governmental funds to their sewer and water fund, and
(2) the amount transferred exceeded their net levy for
taxes payable in the year in which the transfer occurred.
The applicable need increase percentage must be the same
for all cities and or percentages 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 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) the total aid it received in the previous year.
Sec. 16. Minnesota Statutes 1993 Supplement, section
477A.013, subdivision 9, is amended to read:
Subd. 9. [CITY AID DISTRIBUTION.] (a) In calendar year
1994 and thereafter, each city shall receive an aid distribution
equal to the sum of (1) the city formula aid increase under
subdivision 8, and (2) its city aid base multiplied by a
percentage equal to 100 minus the base reduction percentage.
(b) The percentage increase for a first class city in
calendar year 1995 and thereafter shall not exceed the
percentage increase in the sum of the aid to all cities under
this section in the current calendar year compared to the sum of
the aid to all cities in the previous year.
(c) The total aid for any city, except a first class city,
shall 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
total aid in the previous year before any increases or decreases
under sections 16A.711, subdivision 5, and 477A.0132.
(d) Notwithstanding paragraph (c), in 1995 only, for cities
which in 1992 or 1993 transferred an amount from governmental
funds to their sewer and water fund in an amount greater than
their net levy for taxes payable in the year in which the
transfer occurred, the total aid shall not exceed the sum of (1)
20 percent of the city's net levy for the year prior to the aid
distribution plus (2) its total aid in the previous year before
any increases or decreases under sections 16A.711, subdivision
5, and 477A.0132.
Sec. 17. Minnesota Statutes 1992, section 477A.014,
subdivision 5, is amended to read:
Subd. 5. [DEDUCTION FROM AID PAYMENTS.] The commissioner
of revenue shall deduct the amounts certified under subdivision
4 from the aid payments to be made to appropriate local units of
government in the next aid payment year. Amounts must be
transferred from the local government trust fund to the general
fund.
Sec. 18. Minnesota Statutes 1992, section 477A.03, as
amended by Laws 1993, chapter 375, article 4, section 20, is
amended to read:
477A.03 [APPROPRIATION.]
Subdivision 1. [ANNUAL APPROPRIATION.] A sum sufficient to
discharge the duties imposed by sections 477A.011 to 477A.014 is
annually appropriated from the local government trust fund to
the commissioner of revenue. For aids payable in 1993, the
total amount of equalization aid paid under section 477A.013,
subdivision 5, is limited to $20,011,000. For aid payable in
1994 and thereafter, the total aid paid to cities under section
477A.013, subdivision 9, is limited to $330,636,900. For aid
payable in 1995, the total aid paid to cities under section
477A.013, subdivision 9, is limited to $337,249,600. For aid
payable in 1996 and thereafter, the total aid paid to cities
under section 477A.013, subdivision 9, is limited to the amount
paid in the previous year, adjusted for inflation as provided
under subdivision 3.
In 1993 and subsequent years, $8,400,000 per year is
appropriated from the local government trust fund to make
payments under section 477A.0121. Aid payments to counties
under section 477A.0121 are limited to $8,400,000 in 1994 and
$10,000,000 in 1995. For aid payable in 1996 and thereafter,
payments to counties under section 477A.0121 are limited to the
amount paid in the previous year, adjusted for inflation as
provided under subdivision 3.
For aid payable in 1995, payments to counties under section
477A.0122 are limited to $1,500,000. For aids payable in 1996
and thereafter, payments to counties under section 477A.0122 are
limited to the amount paid in the previous year, adjusted for
inflation as provided under subdivision 3.
Subd. 2. [ANNUAL APPROPRIATION.] A sum sufficient to
discharge the duties imposed by sections 477A.011 to 477A.014 is
annually appropriated from the general fund to the commissioner
of revenue. For aids payable in 1996 and thereafter, the total
aids paid under sections 477A.013, subdivision 9, 477A.0121, and
477A.0122 are the amounts certified to be paid in the previous
year, adjusted for inflation as provided under subdivision 3.
Subd. 3. [INFLATION ADJUSTMENT.] In 1996 and thereafter,
the amount paid under each section to be adjusted for inflation
shall be increased by an amount equal to:
(a) the amount certified to be paid under that section in
the previous year multiplied by
(b) one plus the percentage increase in the implicit price
deflator for state and local government purchases of goods and
services prepared by the Bureau of Economic Analysis of the
United States Department of Commerce for the 12-month period
ending March 31 of the previous year. The percentage increase
used in this subdivision shall be no less than 2.5 percent and
no greater than 5.0 percent.
Sec. 19. [APPROPRIATIONS.]
Subdivision 1. [SPECIAL EDUCATION AID.] $17,500,000 is
appropriated in fiscal year 1994 from the general fund to the
department of education for special education aid to school
districts. This appropriation is available until June 30,
1995. This amount is added to the appropriations for aid for
special education programs contained in Laws 1993, chapter 224,
article 3, section 38, subdivisions 2, 4, 8, 11, and 14. This
amount is appropriated to eliminate the fiscal year 1993
deficiencies and reduce the fiscal year 1995 deficiencies in the
appropriations in those subdivisions. The department must
reduce a school district's payable 1995 levy limitations by the
full amount of the aid payments made to the school district
according to this subdivision. This appropriation shall not be
included in determining the amount of a deficiency in the
special education programs for fiscal year 1995 for the purpose
of allocating any excess appropriations to aid or grant programs
with insufficient appropriations as provided in Minnesota
Statutes, section 124.14, subdivision 7. Notwithstanding
Minnesota Statutes, section 124.195, subdivision 10, 100 percent
of this appropriation must be paid in fiscal years 1994 and
1995. This appropriation is not to be included in a base budget
for future fiscal years.
Subd. 2. [ABATEMENT AID.] $2,500,000 is appropriated in
fiscal year 1995 from the general fund to the department of
education for abatement aid to school districts. This amount is
added to the appropriation for abatement aid for fiscal year
1995 contained in Laws 1993, chapter 224, article 8, section 22,
subdivision 2. This amount is appropriated to reduce a
deficiency in that appropriation. The department must reduce a
school district's payable 1995 levy limitations by the full
amount of the aid payments made to the school district according
to this subdivision. This appropriation shall not be included
in determining the amount of the deficiency in the abatement aid
program for fiscal year 1995 for the purpose of allocating any
excess appropriations to aid or grant programs with insufficient
appropriations as provided in Minnesota Statutes, section
124.14, subdivision 7. Notwithstanding Minnesota Statutes,
section 124.195, subdivision 10, 100 percent of the
appropriation in this section must be paid in fiscal year 1995.
This appropriation is not to be included in a base budget for
future fiscal years.
Sec. 20. [ELIMINATION OF LOCAL GOVERNMENT TRUST FUND.]
The local government trust fund is eliminated as a separate
fund in the state treasury as of July 1, 1996. Any money or
deficit in the local government trust fund on that date is
transferred to the general fund.
Sec. 21. [REPEALER.]
(a) Minnesota Statutes 1992, sections 3.862 and 477A.012,
subdivision 6 are repealed.
(b) Minnesota Statutes 1992, sections 16A.711, 273.1381,
273.1398, subdivision 7, and 477A.0132, as amended by Laws 1994,
chapter 416, article 1, section 60; and Minnesota Statutes 1993
Supplement, sections 16A.712, 256E.06, subdivision 12, 273.166,
subdivision 4, 290A.23, subdivision 2, 477A.03, subdivision 1,
and Laws 1973, chapter 650, article 24, section 6, as amended by
Laws 1974, chapter 257, section 4 are repealed.
Sec. 22. [EFFECTIVE DATES.]
Sections 1 to 5, 12, 18, subdivisions 1 and 3, and 21,
paragraph (a) are effective July 1, 1994.
Except as otherwise provided, sections 6 to 11, 17, 18,
subdivision 2, 20, and 21, paragraph (b) are effective July 1,
1996.
Sections 6 to 11, 17, 18, subdivision 2, 20, and 21,
paragraph (b) are not severable, and each is effective only upon
final enactment of all of them.
Sections 13 to 16 are effective for aid payable in 1995 and
thereafter.
Section 19 is effective the day following final enactment.
ARTICLE 4
PROPERTY TAX REFUNDS
Section 1. Minnesota Statutes 1992, section 290A.04,
subdivision 2, is amended to read:
Subd. 2. [HOMEOWNERS.] A claimant whose property taxes
payable are in excess of the percentage of the household income
stated below shall pay an amount equal to the percent of income
shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of
property taxes payable. The state refund equals the amount of
property taxes payable that remain, up to the state refund
amount shown below.
Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 999 1.2 percent 22 18 percent $400 $440
1,029
1,000 to 1,999 1.3 percent 24 18 percent $400 $440
1,030 to 2,059
2,000 to 2,999 1.4 percent 26 20 percent $400 $440
2,060 to 3,099
3,000 to 3,999 1.6 percent 28 20 percent $400 $440
3,100 to 4,129
4,000 to 4,999 1.7 percent 30 20 percent $400 $440
4,130 to 5,159
5,000 to 5,999 1.9 percent 33 25 percent $400 $440
5,160 to 7,229
6,000 to 6,999 1.9 percent 35 percent $400
7,000 to 7,999 2.1 percent 38 25 percent $400 $440
7,230 to 8,259
8,000 to 8,999 2.2 percent 40 25 percent $400 $440
8,260 to 9,289
9,000 to 9,999 2.3 percent 42 30 percent $400 $440
9,290 to 10,319
10,000 to 10,999 2.4 percent 45 30 percent $400 $440
10,320 to 11,349
11,000 to 11,999 2.5 percent 48 30 percent $400 $440
11,350 to 12,389
12,000 to 13,999 2.6 percent 48 30 percent $400 $440
12,390 to 14,449
14,000 to 14,999 2.8 percent 48 35 percent $400 $440
14,450 to 15,479
15,000 to 15,999 3.0 percent 50 35 percent $400 $440
15,480 to 16,509
16,000 to 16,999 3.2 percent 50 40 percent $400 $440
16,510 to 17,549
17,000 to 20,999 3.3 percent 50 40 percent $400 $440
17,550 to 21,669
21,000 to 23,999 3.4 percent 50 45 percent $400 $440
21,670 to 24,769
24,000 to 24,999 3.5 percent 50 percent $400
25,000 to 27,999 3.5 percent 50 percent $400
28,000 to 29,999 3.5 percent 50 45 percent $400 $440
24,770 to 30,959
30,000 to 34,999 3.5 percent 55 45 percent $400 $440
30,960 to 36,119
35,000 to 39,999 3.7 percent 55 50 percent $400 $440
36,120 to 41,279
40,000 to 56,999 4.0 percent 55 percent $400
57,000 to 57,999 4.0 percent 55 50 percent $300 $440
41,280 to 58,829
58,000 to 58,999 4.0 percent 55 50 percent $200 $310
58,830 to 59,859
59,000 to 59,999 4.0 percent 55 50 percent $100 $210
59,860 to 60,889
60,890 to 61,929 4.0 percent 50 percent $100
The payment made to a claimant shall be the amount of the
state refund calculated under this subdivision. No payment is
allowed if the claimant's household income is $60,000 $61,930 or
more.
Sec. 2. Minnesota Statutes 1992, section 290A.04,
subdivision 2a, is amended to read:
Subd. 2a. [RENTERS.] A claimant whose rent constituting
property taxes exceeds the percentage of the household income
stated below must pay an amount equal to the percent of income
shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of
rent constituting property taxes. The state refund equals the
amount of rent constituting property taxes that remain, up to
the maximum state refund amount shown below.
Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 999 1.0 percent 9 5 percent $1,000
3,099 $1,030
1,000 to 1,999 1.0 percent 9 percent $1,000
2,000 to 2,999 1.0 percent 10 percent $1,000
3,000 to 3,999 1.0 percent 10 percent $1,000
3,100 to 4,129 $1,030
4,000 to 4,999 1.1 percent 11 10 percent $1,000
4,130 to 5,159 $1,030
5,000 to 5,999 1.2 percent 12 percent $1,000
6,000 to 6,999 1.2 percent 13 10 percent $1,000
5,160 to 7,229 $1,030
7,000 to 7,999 1.3 percent 14 15 percent $1,000
7,230 to 9,289 $1,030
8,000 to 8,999 1.3 percent 15 percent $1,000
9,000 to 9,999 1.4 percent 16 15 percent $1,000
9,290 to 10,319 $1,030
10,000 to 10,999 1.4 percent 17 20 percent $1,000
10,320 to 11,349 $1,030
11,000 to 11,999 1.5 percent 19 percent $1,000
12,000 to 12,999 1.5 percent 21 20 percent $1,000
11,350 to 13,419 $1,030
13,000 to 13,999 1.6 percent 23 20 percent $1,000
13,420 to 14,449 $1,030
14,000 to 14,999 1.7 percent 24 25 percent $1,000
14,450 to 15,479 $1,030
15,000 to 15,999 1.8 percent 26 percent $1,000
16,000 to 16,999 1.8 percent 27 25 percent $1,000
15,480 to 17,549 $1,030
17,000 to 17,999 1.9 percent 28 30 percent $1,000
17,550 to 18,579 $1,030
18,000 to 18,999 2.0 percent 30 percent $1,000
18,580 to 19,609 $1,030
19,000 to 19,999 2.2 percent 32 30 percent $1,000
19,610 to 20,639 $1,030
20,000 to 20,999 2.4 percent 34 30 percent $1,000
20,640 to 21,669 $1,030
21,000 to 21,999 2.6 percent 36 35 percent $1,000
21,670 to 22,709 $1,030
22,000 to 22,999 2.7 percent 37 35 percent $1,000
22,710 to 23,739 $1,030
23,000 to 23,999 2.8 percent 38 35 percent $1,000
23,740 to 24,769 $1,030
24,000 to 24,999 2.9 percent 40 percent $1,000
24,770 to 25,799 $1,030
25,000 to 25,999 3.0 percent 43 40 percent $1,000
25,800 to 26,839 $1,030
26,000 to 26,999 3.1 percent 43 40 percent $1,000
26,840 to 27,869 $1,030
27,000 to 27,999 3.2 percent 45 40 percent $1,000
27,870 to 28,899 $1,030
28,000 to 28,999 3.3 percent 47 45 percent $ 900
28,900 to 29,929 $ 930
29,000 to 29,999 3.4 percent 47 45 percent $ 800
29,930 to 30,959 $ 830
30,000 to 30,999 3.5 percent 48 45 percent $ 700
30,960 to 31,999 $ 720
31,000 to 31,999 3.5 percent 48 50 percent $ 600
32,000 to 33,029 $ 620
32,000 to 32,999 3.5 percent 50 percent $ 500
33,030 to 34,059 $ 520
33,000 to 33,999 3.5 percent 50 percent $ 300
34,060 to 35,089 $ 310
34,000 to 34,999 3.5 percent 50 percent $ 100
35,090 to 36,119
The payment made to a claimant is the amount of the state
refund calculated under this subdivision. No payment is allowed
if the claimant's household income is $35,000 $36,120 or more.
Sec. 3. Minnesota Statutes 1993 Supplement, section
290A.04, subdivision 2h, as amended by Laws 1994, chapter 383,
section 1, is amended to read:
Subd. 2h. (a) If the gross property taxes payable on a
homestead increase more than 12 percent over the net property
taxes payable in the prior year on the same property that is
owned and occupied by the same owner on January 2 of both years,
and the amount of that increase is $100 or more for taxes
payable in 1994, 1995, and 1996, a claimant who is a homeowner
shall be allowed an additional refund equal to 75 60 percent of
the amount of the increase over the greater of 12 percent of the
prior year's net property taxes payable or $100 for taxes
payable in 1994, 1995, and 1996. This subdivision shall not
apply to any increase in the gross property taxes payable
attributable to improvements made to the homestead after the
assessment date for the prior year's taxes.
The maximum refund allowed under this subdivision
is $1,500 $1,000.
(b) For purposes of this subdivision, the following terms
have the meanings given:
(1) "Net property taxes payable" means property taxes
payable minus refund amounts for which the claimant qualifies
pursuant to subdivision 2 and this subdivision.
(2) "Gross property taxes" means net property taxes payable
determined without regard to the refund allowed under this
subdivision.
(c) In addition to the other proofs required by this
chapter, each claimant under this subdivision shall file with
the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other
documents required by the commissioner.
(d) On or before December 1, 1994 and 1995, the
commissioner shall estimate the cost of making the payments
provided by this subdivision for taxes payable in the following
year 1996. Notwithstanding the open appropriation provision of
section 290A.23, if the estimated total refund claims for taxes
payable in 1995 and 1996 exceed $5,500,000, for each of the two
years the commissioner shall increase the $100 amount of tax
increase which must occur before a taxpayer qualifies for a
refund, and increase by an equal amount the $100 threshold used
in determining the amount of the refund, so that the estimated
total refund claims do not exceed $5,500,000 for taxes payable
in 1995, or for taxes payable in 1996 first reduce the 60
percent refund rate enough, but to no lower a rate than 50
percent, so that the estimated total refund claims do not exceed
$5,500,000. If the commissioner estimates that total claims
will exceed $5,500,000 at a 50 percent refund rate, the
commissioner shall also reduce the $1,000 maximum refund amount
by enough so that total estimated refund claims do not exceed
$5,500,000.
The determinations of the revised thresholds by the
commissioner are not rules subject to chapter 14.
(e) Upon request, the appropriate county official shall
make available the names and addresses of the property taxpayers
who may be eligible for the additional property tax refund under
this section. The information shall be provided on a magnetic
computer disk. The county may recover its costs by charging the
person requesting the information the reasonable cost for
preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential
eligibility and assisting the homeowner, without charge, in
preparing a refund claim.
Sec. 4. Minnesota Statutes 1993 Supplement, section
290A.04, subdivision 6, is amended to read:
Subd. 6. [INFLATION ADJUSTMENT.] Beginning for property
tax refunds payable in calendar year 1995 1996, the commissioner
shall annually adjust the dollar amounts of the income
thresholds and the maximum refunds under subdivisions 2 and 2a
for inflation. The commissioner shall make the inflation
adjustments in accordance with section 290.06, subdivision 2d,
except that for purposes of this subdivision the percentage
increase shall be determined from the year ending on August 31,
1993, to the year ending on August 31 of the year preceding that
in which the refund is payable. The commissioner shall use the
appropriate percentage increase to annually adjust the income
thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax
brackets are adjusted for inflation in that year. The
commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in
$5, the commissioner shall round it up to the next $10 amount.
The commissioner shall annually announce the adjusted
refund schedule at the same time provided under section 290.06.
The determination of the commissioner under this subdivision is
not a rule under the administrative procedure act.
Sec. 5. Minnesota Statutes 1993 Supplement, section
290A.23, subdivision 1, is amended to read:
Subdivision 1. [RENTERS CREDIT.] For payments made before
July 1, 1996, There is appropriated from the general fund in the
state treasury to the commissioner of revenue the amount
necessary to make the payments required under section 290A.04,
subdivision 2a. For payments made after June 30, 1996, the
amount necessary to make the payments required under section
290A.04, subdivision 2a, are appropriated to the commissioner of
revenue from the local government trust fund.
Sec. 6. [EFFECTIVE DATE.]
Sections 1 to 4 are effective for refunds based on property
taxes paid in 1995 and thereafter and for rent paid in 1994 and
thereafter.
ARTICLE 5
PROPERTY TAXES
Section 1. Minnesota Statutes 1992, section 271.06,
subdivision 7, is amended to read:
Subd. 7. [RULES.] (a) Except as provided in section
278.05, subdivision 6, the rules of evidence and civil procedure
for the district court of Minnesota shall govern the procedures
in the tax court, where practicable. The tax court may adopt
rules under chapter 14. The rules in effect on January 1, 1989,
apply until superseded.
(b) Notwithstanding paragraph (a), information, including
income and expense figures, verified net rentable areas, and
anticipated income and expenses, for income-producing property
which is not provided to the county assessor at least 45 days
before any hearing under this chapter, is not admissible except
if necessary to prevent undue hardship or when the failure to
provide it was due to the unavailability of the evidence at that
time.
(c) Notwithstanding paragraph (a) and provided that the
information as contained in paragraph (b) is timely submitted to
the county assessor, the county assessor shall furnish the
petitioner at least five days before the hearing under this
chapter with the property's appraisal, if any, which will be
presented to the court at the hearing. The petitioner shall
furnish to the county assessor at least five days before the
hearing under this chapter with the property's appraisal, if
any, which will be presented to the court at the hearing. An
appraisal of the petitioner's property done by or for the county
or by or for the petitioner shall not be admissible as evidence
if the provisions within this paragraph are not met.
Sec. 2. Minnesota Statutes 1992, section 273.061, is
amended by adding a subdivision to read:
Subd. 8a. [ADDITIONAL POWERS AND DUTIES OF THE
COMMISSIONER OF REVENUE, COUNTY ASSESSORS AND LOCAL
ASSESSORS.] Notwithstanding any provision of law to the
contrary, in order to promote a uniform assessment and review of
assessments, the commissioner of revenue, county assessors and
local assessors may exchange data on property which are
classified under chapter 13 as public, nonpublic or private.
The data for any property may include but is not limited to its
sales, income, expenses, vacancies, rentable or usable areas,
anticipated income and expenses, projected vacancies, lease
information, and private multiple listing service data. Data
exchanged under this provision that is classified as nonpublic
or private data shall retain its classification.
Sec. 3. Minnesota Statutes 1993 Supplement, section
273.11, subdivision 1a, is amended to read:
Subd. 1a. [LIMITED MARKET VALUE.] In the case of all
property classified as agricultural homestead or nonhomestead,
residential homestead or nonhomestead, or noncommercial seasonal
recreational residential, the assessor shall compare the value
with that determined in the preceding assessment. The amount of
the increase entered in the current assessment shall not exceed
the greater of (1) ten percent of the value in the preceding
assessment, or (2) one-third of the difference between the
current assessment and the preceding assessment. This
limitation shall not apply to increases in value due to
improvements. For purposes of this subdivision, the term
"assessment" means the value prior to any exclusion under
subdivision 16.
The provisions of this subdivision shall be in effect only
for assessment years 1993 through 1998 1997.
For purposes of the assessment/sales ratio study conducted
under section 124.2131, and the computation of state aids paid
under chapters 124, 124A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16,
shall be used.
Sec. 4. Minnesota Statutes 1993 Supplement, section
273.11, subdivision 16, is amended to read:
Subd. 16. [VALUATION EXCLUSION FOR CERTAIN IMPROVEMENTS.]
Improvements to homestead property made before January 2, 2003,
shall be fully or partially excluded from the value of the
property for assessment purposes provided that (1) the house is
at least 35 years old at the time of the improvement and (2)
either (a) the assessor's estimated market value of the house on
January 2 of the current year is equal to or less than $150,000,
or (b) if the estimated market value of the house is over
$150,000 market value but is less than $300,000 on January 2 of
the current year, the property qualifies if
(i) it is located in a city or town in which 50 percent or
more of the homes were constructed before 1960 based upon the
1990 federal census, and
(ii) the city or town's median family income based upon the
1990 federal census is less than the statewide median family
income based upon the 1990 federal census.
Any house which has an estimated market value of $300,000
or more on January 2 of the current year is not eligible to
receive any property valuation exclusion under this section.
For purposes of determining this eligibility, "house" means land
and buildings.
The age of a residence is the number of years that the
residence has existed at its present site. In the case of an
owner-occupied duplex or triplex, the improvement is eligible
regardless of which portion of the property was improved.
If the property lies in a jurisdiction which is subject to
a building permit process, a building permit must have been
issued covering prior to commencement of the improvement. If
the property lies in a jurisdiction which is not subject to a
building permit process, the Any improvement must add at least
$1,000 to the value of the property to be eligible for exclusion
under this subdivision. Only improvements to the structure
which is the residence of the qualifying homesteader or the
construction of or improvements to no more than one two-car
garage per residence qualify for the provisions of this
subdivision. If an improvement was begun between January 2,
1992, and January 2, 1993, any value added from that improvement
for the January 1994 and subsequent assessments shall qualify
for exclusion under this subdivision provided that a building
permit was obtained for the improvement between January 2, 1992,
and January 2, 1993. Whenever a building permit is issued for
property currently classified as homestead, the issuing
jurisdiction shall notify the assessor property owner of the
possibility of valuation exclusion under this subdivision. The
assessor may shall require an application process and, including
documentation of the age of the house from the owner, if unknown
by the assessor. The application may be filed subsequent to the
date of the building permit provided that the application is
filed prior to the next assessment date.
After the adjournment of the 1994 county board of
equalization meetings, no exclusion may be granted for an
improvement by a local board of review or county board of
equalization unless (1) a building permit was issued prior to
the commencement of the improvement if the jurisdiction requires
a building permit, and (2) an application was completed on a
timely basis. No abatement of the taxes for qualifying
improvements may be granted by a county board unless (1) a
building permit was issued prior to commencement of the
improvement if the jurisdiction requires a building permit, and
(2) an application was completed on a timely basis.
The assessor shall note the qualifying value of each
improvement on the property's record, and the sum of those
amounts shall be subtracted from the value of the property in
each year for ten years after the improvement has been made, at
which time an amount equal to 20 percent of the qualifying value
shall be added back in each of the five subsequent assessment
years. The valuation exclusion shall terminate whenever (1) the
property is sold, or (2) the property is reclassified to a class
which does not qualify for treatment under this subdivision.
Improvements made by an occupant who is the purchaser of the
property under a conditional purchase contract do not qualify
under this subdivision unless the seller of the property is a
governmental entity. The qualifying value of the property shall
be computed based upon the increase from that structure's market
value as of January 2 preceding the acquisition of the property
by the governmental entity.
The total qualifying value for a homestead may not exceed
$50,000. The total qualifying value for a homestead with a
house that is less than 70 years old may not exceed $25,000.
The term "qualifying value" means the increase in estimated
market value resulting from the improvement if the improvement
occurs when the house is at least 70 years old, or one-half of
the increase in estimated market value resulting from the
improvement otherwise. The $25,000 and $50,000 maximum
qualifying value under this section subdivision may result from
up to three separate improvements to the homestead. The
application shall state, in clear language, that if more than
three improvements are made to the qualifying property, a
taxpayer may choose which three improvements are eligible,
provided that after the taxpayer has made the choice and any
valuation attributable to those improvements has been excluded
from taxation, no further changes can be made by the taxpayer.
If 50 percent or more of the square footage of a structure
is voluntarily razed or removed, the valuation increase
attributable to any subsequent improvements to the remaining
structure does not qualify for the exclusion under this
subdivision. If a structure is unintentionally or accidentally
destroyed by a natural disaster, the property is eligible for an
exclusion under this subdivision provided that the structure was
not completely destroyed. The qualifying value on property
destroyed by a natural disaster shall be computed based upon the
increase from that structure's market value as determined on
January 2 of the year in which the disaster occurred. A
property receiving benefits under the homestead disaster
provisions under section 273.123 is not disqualified from
receiving an exclusion under this subdivision. If any
combination of improvements made to a structure after January 1,
1993, increases the size of the structure by 100 percent or
more, the valuation increase attributable to the portion of the
improvement that causes the structure's size to exceed 100
percent does not qualify for exclusion under this subdivision.
Sec. 5. Minnesota Statutes 1993 Supplement, section
273.11, is amended by adding a subdivision to read:
Subd. 18. [DISCLOSURE OF VALUATION EXCLUSION.] No seller
of real property shall sell or offer for sale property that, for
purposes of property taxation, has an exclusion from market
value for home improvements under subdivision 16, without
disclosing to the buyer the existence of the excluded valuation
and informing the buyer that the exclusion will end upon the
sale of the property and that the property's estimated market
value for property tax purposes will increase accordingly.
Sec. 6. Minnesota Statutes 1992, section 273.111,
subdivision 11, is amended to read:
Subd. 11. The payment of special local assessments levied
after June 1, 1967 for improvements made to any real property
described in subdivision 3 together with the interest thereon
shall, on timely application as provided in subdivision 8, be
deferred as long as such property meets the conditions contained
in subdivisions 3 and 6 or is transferred to an agricultural
preserve under sections 473H.02 to 473H.17. If special
assessments against the property have been deferred pursuant to
this subdivision, the governmental unit shall file with the
county recorder in the county in which the property is located a
certificate containing the legal description of the affected
property and of the amount deferred. When such property no
longer qualifies under subdivisions 3 and 6, all deferred
special assessments plus interest shall be payable in equal
installments spread over the time remaining until the last
maturity date of the bonds issued to finance the improvement for
which the assessments were levied. If the bonds have matured,
the deferred special assessments plus interest shall be payable
within 90 days. The provisions of section 429.061, subdivision
2, apply to the collection of these installments. Penalty shall
not be levied on any such special assessments if timely paid.
Sec. 7. Minnesota Statutes 1993 Supplement, section
273.112, subdivision 3, is amended to read:
Subd. 3. Real estate shall be entitled to valuation and
tax deferment under this section only if it is:
(a) actively and exclusively devoted to golf, skiing, lawn
bowling, croquet, or archery or firearms range recreational use
or uses and other recreational uses carried on at the
establishment;
(b) five acres in size or more, except in the case of a
lawn bowling or croquet green or an archery or firearms range;
(c)(1) operated by private individuals or, in the case of a
lawn bowling or croquet green, by private individuals or
corporations, and open to the public; or
(2) operated by firms or corporations for the benefit of
employees or guests; or
(3) operated by private clubs having a membership of 50 or
more or open to the public, provided that the club does not
discriminate in membership requirements or selection on the
basis of sex or marital status; and
(d) made available, in the case of real estate devoted to
golf, for use without discrimination on the basis of sex during
the time when the facility is open to use by the public or by
members, except that use for golf may be restricted on the basis
of sex no more frequently than one, or part of one, weekend each
calendar month for each sex and no more than two, or part of
two, weekdays each week for each sex.
If a golf club membership allows use of golf course
facilities by more than one adult per membership, the use must
be equally available to all adults entitled to use of the golf
course under the membership, except that use may be restricted
on the basis of sex as permitted in this section. Memberships
that permit play during restricted times may be allowed only if
the restricted times apply to all adults using the membership.
A golf club may not offer a membership or golfing privileges to
a spouse of a member that provides greater or less access to the
golf course than is provided to that person's spouse under the
same or a separate membership in that club, except that the
terms of a membership may provide that one spouse may have no
right to use the golf course at any time while the other spouse
may have either limited or unlimited access to the golf course.
A golf club may have or create an individual membership
category which entitles a member for a reduced rate to play
during restricted hours as established by the club. The club
must have on record a written request by the member for such
membership.
A golf club that has food or beverage facilities or
services must allow equal access to those facilities and
services for both men and women members in all membership
categories at all times. Nothing in this paragraph shall be
construed to require service or access to facilities to persons
under the age of 21 years or require any act that would violate
law or ordinance regarding sale, consumption, or regulation of
alcoholic beverages.
For purposes of this subdivision and subdivision 7a,
discrimination means a pattern or course of conduct and not
linked to an isolated incident.
Sec. 8. 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.
Property of a trustee, beneficiary, or grantor of a trust
is not disqualified from receiving homestead benefits if the
homestead requirements under this chapter are satisfied.
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, father, or mother of the owner of the
agricultural property or a son or daughter of the spouse of the
owner of the agricultural property,
(2) the owner of the agricultural property must be a
Minnesota resident,
(3) the owner of the agricultural property is not eligible
to receive homestead treatment on any other agricultural
property in Minnesota, and
(4) the owner of the agricultural property is limited to
only one agricultural homestead per family under this paragraph.
For purposes of this paragraph, "agricultural property"
means the house, garage, other farm buildings and structures,
and agricultural land.
Application must be made to the assessor by the owner of
the agricultural property to receive homestead benefits under
this paragraph. The assessor may require the necessary proof
that the requirements under this paragraph have been met.
(e) In the case of property owned by a property owner who
is married, the assessor must not deny homestead treatment in
whole or in part if only one of the spouses occupies the
property and the other spouse is absent due to: (1) marriage
dissolution proceedings, (2) legal separation, (3) employment or
self-employment in another location as provided under
subdivision 13, or (4) residence in a nursing home or boarding
care facility.
Sec. 9. 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 deed of record, and
the name and address of each owner who does not occupy the
property., and the name and social security number of each
owner's spouse who occupies the property. The application must
be signed by each owner who occupies the property and by each
owner's spouse who occupies the property, or, in the case of
property that qualifies as a homestead under subdivision 1,
paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property
owner's spouse may not claim another property as a homestead
unless the property owner and the property owner's spouse file
with the assessor an affidavit or other proof required by the
assessor stating that the property owner's spouse does not
occupy the homestead because marriage dissolution proceedings
are pending, the spouses are legally separated, or the spouse's
employment or self-employment location requires the spouse to
have a separate homestead. The assessor may require proof of
employment or self-employment and employment or self-employment
location, or proof of dissolution proceedings or legal
separation.
If the social security number or affidavit or other proof
is not provided, the county assessor shall classify the property
as nonhomestead.
The social security numbers or affidavits or other proofs
of the property owners and spouses 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 and the property owner's
spouse occupying the property, 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.
(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. 10. Minnesota Statutes 1993 Supplement, section
273.13, subdivision 23, is amended to read:
Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural
land including any improvements that is homesteaded. The market
value of the house and garage and immediately surrounding one
acre of land has the same class rates as class 1a property under
subdivision 22. The value of the remaining land including
improvements up to $115,000 has a net class rate of .45 percent
of market value and a gross class rate of 1.75 percent of market
value. The remaining value of class 2a property over $115,000
of market value that does not exceed 320 acres has a net class
rate of one percent of market value, and a gross class rate of
2.25 percent of market value. The remaining property over the
$115,000 market value in excess of 320 acres has a class rate of
1.5 percent of market value, and a gross class rate of 2.25
percent of market value.
(b) Class 2b property is (1) real estate, rural in
character and used exclusively for growing trees for timber,
lumber, and wood and wood products; (2) real estate that is not
improved with a structure and is used exclusively for growing
trees for timber, lumber, and wood and wood products, if the
owner has participated or is participating in a cost-sharing
program for afforestation, reforestation, or timber stand
improvement on that particular property, administered or
coordinated by the commissioner of natural resources; or (3)
real estate that is nonhomestead agricultural land; or (4) a
landing area or public access area of a privately owned public
use airport. Class 2b property has a net class rate of 1.5
percent of market value, and a gross class rate of 2.25 percent
of market value.
(c) Agricultural land as used in this section means
contiguous acreage of ten acres or more, primarily used during
the preceding year for agricultural purposes. Agricultural use
may include pasture, timber, waste, unusable wild land, and land
included in state or federal farm programs. "Agricultural
purposes" as used in this section means the raising or
cultivation of agricultural products.
(d) Real estate of less than ten acres used principally for
raising or cultivating agricultural products, shall be
considered as agricultural land, if it is not used primarily for
residential purposes.
(e) The term "agricultural products" as used in this
subdivision includes:
(1) livestock, dairy animals, dairy products, poultry and
poultry products, fur-bearing animals, horticultural and nursery
stock described in sections 18.44 to 18.61, fruit of all kinds,
vegetables, forage, grains, bees, and apiary products by the
owner;
(2) fish bred for sale and consumption if the fish breeding
occurs on land zoned for agricultural use;
(3) the commercial boarding of horses if the boarding is
done in conjunction with raising or cultivating agricultural
products as defined in clause (1); and
(4) property which is owned and operated by nonprofit
organizations used for equestrian activities, excluding racing;
and
(5) game birds and waterfowl bred and raised for use on a
shooting preserve licensed under section 97A.115.
(f) If a parcel used for agricultural purposes is also used
for commercial or industrial purposes, including but not limited
to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities
enumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used for
agricultural purposes as class 1b, 2a, or 2b, whichever is
appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural
products for first sale is considered an agricultural purpose.
A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail
sales must be classified as agricultural if it is primarily used
for the growing of horticultural or nursery products from seed,
cuttings, or roots and occasionally as a showroom for the retail
sale of those products. Use of a greenhouse or building only
for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
The assessor shall determine and list separately on the
records the market value of the homestead dwelling and the one
acre of land on which that dwelling is located. If any farm
buildings or structures are located on this homesteaded acre of
land, their market value shall not be included in this separate
determination.
(g) To qualify for classification under paragraph (b),
clause (4), a privately owned public use airport must be
licensed as a public airport under section 360.018. For
purposes of paragraph (b), clause (4), "landing area" means that
part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use
by aircraft and includes runways, taxi-ways, aprons, and sites
upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and
the approach surfaces that comply with all of the following:
(i) the land is properly cleared and regularly maintained
for the primary purposes of the landing, taking off, and taxiing
of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is
not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential
purposes.
The land contained in a landing area under paragraph (b), clause
(4), must be described and certified by the commissioner of
transportation. The certification is effective until it is
modified, or until the airport or landing area no longer meets
the requirements of paragraph (b), clause (4). For purposes of
paragraph (b), clause (4), "public access area" means property
used as an aircraft parking ramp, apron, or storage hangar, or
an arrival and departure building in connection with the airport.
Sec. 11. Minnesota Statutes 1993 Supplement, section
273.13, subdivision 24, is amended to read:
Subd. 24. [CLASS 3.] (a) Commercial and industrial
property and utility real and personal property, except class 5
property as identified in subdivision 31, clause (1), is class
3a. It has a class rate of three percent of the first $100,000
of market value for taxes payable in 1993 and thereafter, and
5.06 percent of the market value over $100,000. In the case of
state-assessed commercial, industrial, and utility property
owned by one person or entity, only one parcel has a reduced
class rate on the first $100,000 of market value. In the case
of other commercial, industrial, and utility property owned by
one person or entity, only one parcel in each county has a
reduced class rate on the first $100,000 of market value, except
that:
(1) if the market value of the parcel is less than
$100,000, and additional parcels are owned by the same person or
entity in the same city or town within that county, the reduced
class rate shall be applied up to a combined total market value
of $100,000 for all parcels owned by the same person or entity
in the same city or town within the county; and
(2) in the case of grain, fertilizer, and feed elevator
facilities, as defined in section 18C.305, subdivision 1, or
232.21, subdivision 8, the limitation to one parcel per owner
per county for the reduced class rate shall not apply, but there
shall be a limit of $100,000 of preferential value per site of
contiguous parcels owned by the same person or entity. Only the
value of the elevator portion of each parcel shall qualify for
treatment under this clause. For purposes of this subdivision,
contiguous parcels include parcels separated only by a railroad
or public road right-of-way.; and
(3) in the case of property owned by a nonprofit charitable
organization that qualifies for tax exemption under section
501(c)(3) of the Internal Revenue Code of 1986, as amended
through December 31, 1993, if the property is used as a business
incubator, the limitation to one parcel per owner per county for
the reduced class rate shall not apply, provided that the
reduced rate applies only to the first $100,000 of value per
parcel owned by the organization. As used in this clause, a
"business incubator" is a facility used for the development of
nonretail businesses, offering access to equipment, space,
services, and advice to the tenant businesses, for the purpose
of encouraging economic development, diversification, and job
creation in the area served by the organization.
To receive the reduced class rate on additional parcels
under clauses clause (1) and, (2), or (3), the taxpayer must
notify the county assessor that the taxpayer owns more than one
parcel that qualifies under clause (1) or, (2), or (3).
(b) Employment property defined in section 469.166, during
the period provided in section 469.170, shall constitute class
3b and has a class rate of 2.3 percent of the first $50,000 of
market value and 3.6 percent of the remainder, except that for
employment property located in a border city enterprise zone
designated pursuant to section 469.168, subdivision 4, paragraph
(c), the class rate of the first $100,000 of market value and
the class rate of the remainder is determined under paragraph
(a), unless the governing body of the city designated as an
enterprise zone determines that a specific parcel shall be
assessed pursuant to the first clause of this sentence. The
governing body may provide for assessment under the first clause
of the preceding sentence only for property which is located in
an area which has been designated by the governing body for the
receipt of tax reductions authorized by section 469.171,
subdivision 1.
Sec. 12. Minnesota Statutes 1992, section 273.165,
subdivision 1, is amended to read:
Subdivision 1. [MINERAL INTEREST.] "Mineral interest," for
the purpose of this subdivision, means an interest in any
minerals, including but not limited to gas, coal, oil, or other
similar interest in real estate, which is owned separately and
apart from the fee title to the surface of such real property.
Mineral interests which are filed for record in the offices of
either the county recorder or registrar of titles, whether or
not filed pursuant to sections 93.52 to 93.58, are taxed as
provided in this subdivision unless specifically excluded by
this subdivision. A tax of 25 40 cents per acre or portion of
an acre of mineral interest is imposed and is payable annually.
If an interest is a fractional undivided interest in an area,
the tax due on the interest per acre or portion of an acre is
equal to the product obtained by multiplying the fractional
interest times 25 40 cents, computed to the nearest cent.
However, the minimum annual tax on any mineral interest
is $2 $3.20. No such tax on mineral interests is imposed on the
following: (1) mineral interests valued and taxed under other
laws relating to the taxation of minerals, gas, coal, oil, or
other similar interests; or (2) mineral interests which are
exempt from taxation pursuant to constitutional or related
statutory provisions. Taxes received under this subdivision
must be apportioned to the taxing districts included in the area
taxed in the same proportion as the surface interest local tax
rate of a taxing district bears to the total local tax rate
applicable to surface interests in the area taxed. The tax
imposed by this subdivision is not included within any
limitations as to rate or amount of taxes which may be imposed
in an area to which the tax imposed by this subdivision
applies. The tax imposed by this subdivision does not cause the
amount of other taxes levied or to be levied in the area, which
are subject to any such limitation, to be reduced in any
amount. Twenty percent of the revenues received from the tax
imposed by this subdivision must be distributed under the
provisions of section 116J.64.
Sec. 13. 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.
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
amount of market value excluded under section 273.11,
subdivision 16, if any, must also be listed on the tax
statement. 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 section 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. 14. Minnesota Statutes 1993 Supplement, section
278.01, subdivision 1, is amended to read:
Subdivision 1. [DETERMINATION OF VALIDITY.] Any person
having personal property, or any estate, right, title, or
interest in or lien upon any parcel of land, who claims that
such property has been partially, unfairly, or unequally
assessed in comparison with other property in the (1) city, or
(2) county, or (3) in the case of a county containing a city of
the first class, the portion of the county excluding the first
class city, or that the parcel has been assessed at a valuation
greater than its real or actual value, or that the tax levied
against the same is illegal, in whole or in part, or has been
paid, or that the property is exempt from the tax so levied, may
have the validity of the claim, defense, or objection determined
by the district court of the county in which the tax is levied
or by the tax court by serving one copy of a petition for such
determination upon the county auditor, one copy on the county
attorney, one copy on the county treasurer, and three copies on
the county assessor. The county assessor shall immediately
forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in
which the property is located if that city or town employs its
own certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school
district in which the property is located.
In counties where the office of county treasurer has been
combined with the office of county auditor, the county may elect
to require the petitioner to serve the number of copies as
determined by the county. The county assessor shall immediately
forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in
which the property is located if that city or town employs its
own certified assessor. A list of petitioned properties,
including the name of the petitioner, the identification number
of the property, and the estimated market value, shall be sent
on or before the first day of July by the county
auditor/treasurer to the school board of the school district in
which the property is located.
For all counties, the petitioner must file the copies with
proof of service, in the office of the court administrator of
the district court on or before the 16th day of May March 31 of
the year in which the tax becomes payable. A petition for
determination under this section may be transferred by the
district court to the tax court. An appeal may also be taken to
the tax court under chapter 271 at any time following receipt of
the valuation notice required by section 273.121 but prior
to May 16 April 1 of the year in which the taxes are payable.
Sec. 15. Minnesota Statutes 1992, section 278.05,
subdivision 6, is amended to read:
Subd. 6. [DISMISSAL OF PETITION; EXCLUSION OF CERTAIN
EVIDENCE.] (a) Information, including income and expense
figures, verified net rentable areas, and anticipated income and
expenses, for income-producing property which is not must be
provided to the county assessor at least 45 days before any
hearing within 60 days after the petition has been filed under
this chapter, is not admissible except if necessary to prevent
undue hardship or when. Failure to provide the information
required in this paragraph shall result in the dismissal of the
petition, unless the failure to provide it was due to the
unavailability of the evidence at that time.
(b) Provided that the information as contained in paragraph
(a) is timely submitted to the county assessor, the county
assessor shall furnish the petitioner at least five days before
the hearing under this chapter with the property's appraisal, if
any, which will be presented to the court at the hearing. The
petitioner shall furnish to the county assessor at least five
days before the hearing under this chapter with the property's
appraisal, if any, which will be presented to the court at the
hearing. An appraisal of the petitioner's property done by or
for the county or by or for the petitioner shall not be
admissible as evidence if the county assessor does not comply
with the provisions within in this paragraph are not met. The
petition shall be dismissed if the petitioner does not comply
with the provisions in this paragraph.
Sec. 16. Minnesota Statutes 1992, section 298.26, is
amended to read:
298.26 [TAX ON UNMINED TACONITE AND IRON SULPHIDES.]
In any year in which at least 1,000 tons of iron ore
concentrate is not produced from any 40-acre tract or
governmental lot containing taconite or iron sulphides, a tax
may be assessed upon the taconite or iron sulphides therein at
the local tax rate prevailing in the taxing district and spread
against the net tax capacity of the taconite or iron sulphides,
such net tax capacity to be determined in accordance with
existing laws. The amount of the tax spread under authority of
this section by reason of the taconite and iron sulphides in any
tract of land shall not exceed $10 $15 per acre.
Sec. 17. Minnesota Statutes 1992, section 360.036,
subdivision 2, is amended to read:
Subd. 2. [ISSUANCE OF BONDS.] Any (a) Bonds to be issued
by any a municipality pursuant to the provisions of under
sections 360.011 to 360.076, shall be authorized and issued in
the manner and within the limitation, except as herein otherwise
provided, prescribed by the laws of this state or the charter of
the municipality for the issuance and authorization of
bonds thereof for public purposes generally, except as provided
in paragraphs (b) and (c).
(b) No election is required to authorize the issuance of
the bonds if (1) a board organized under section 360.042
recommends by a resolution adopted by a vote of not less than 60
percent of its members the issuance of bonds and (2) the bonds
are authorized by a resolution of the governing body of each of
the municipalities acting jointly pursuant to section 360.042,
adopted by a vote of not less than 60 percent of its members.
(c) If the bonds are general obligations of the
municipality, the levy of taxes required by section 475.61 to
pay principal and interest on the bonds is not included in
computing or applying any levy limitation applicable to the
municipality.
Sec. 18. Minnesota Statutes 1992, section 360.036,
subdivision 3, is amended to read:
Subd. 3. [IN EXCESS OF TAX LIMITATION.] Irrespective of
any limitation, by general or special law or charter, as to the
amount of bonds which may be issued, a municipality may issue
bonds for the purposes defined by sections 360.011 to 360.076,
in excess of such limitation, in such amount as may be
authorized by an ordinance or resolution referred to and
approved by the voters of such municipality by popular vote, at
any general election or special election called for that purpose
the governing body of the municipality as provided in
subdivision 2.
Sec. 19. Minnesota Statutes 1992, section 360.037,
subdivision 2, is amended to read:
Subd. 2. [IN EXCESS OF TAX LIMITATION.] A municipality may
levy taxes for the purposes authorized by sections 360.011 to
360.076, in such amount as may be authorized by an ordinance or
resolution referred to and approved by the voters of such
municipality by popular vote or as may be required to pay
principal of or interest on general obligation bonds of the
municipality issued under section 360.036.
Sec. 20. Minnesota Statutes 1992, section 360.042,
subdivision 10, is amended to read:
Subd. 10. [JOINT FUND.] For the purpose of providing funds
for necessary expenditures in carrying out the provisions of
this section, a joint fund shall be created and maintained, into
which each of the municipalities involved shall deposit its
proportionate share as provided by the joint agreement, such.
Funds to be deposited shall be provided for by bond issues, tax
levies, and appropriations made by each municipality in the same
manner as though it were acting separately under the authority
of sections 360.011 to 360.076, and into which. However, a
municipality may issue bonds on behalf of other parties to the
joint agreement, which shall be treated as being issued by each
of the parties in proportion to their respective proportionate
share as provided by the joint agreement. Each municipality
shall be paid also pay into the fund the revenues obtained from
the ownership, control, and operation of the airports and other
air navigation facilities jointly controlled, to be expended as
provided in section 360.037, subdivision 3;. Revenues in excess
of cost of maintenance and operating expenses of the joint
properties to shall be divided as may be provided in the
original agreement for the joint venture. When a county and a
city are parties to a joint agreement as provided in subdivision
1 and the city is located in whole or in part within the
geographic boundaries of the county, then the county's
proportionate share shall be based on the net tax capacity of
all property within the county, excepting the net tax capacity
of that property located within the city, and any levy for
airport purposes by the county shall not be levied against
taxable property in the city, other than a levy under section
475.61 to pay debt service on general obligation bonds of the
county.
Sec. 21. Minnesota Statutes 1993 Supplement, section
383A.75, subdivision 3, is amended to read:
Subd. 3. [DUTIES.] The committee is authorized to and
shall meet from time to time to make appropriate recommendations
for the efficient and effective use of property tax dollars
raised by the jurisdictions for programs, buildings, and
operations. In addition, the committee shall:
(1) identify trends and factors likely to be driving budget
outcomes over the next five years with recommendations for how
the jurisdictions should manage those trends and factors to
increase efficiency and effectiveness;
(2) agree, by August September 1 of each year, on the
appropriate level of overall property tax levy for the three
jurisdictions and publicly report such to the governing bodies
of each jurisdiction for ratification or modification by
resolution;
(3) plan for the joint truth-in-taxation hearings under
section 275.065, subdivision 8; and
(4) identify, by December 31 of each year, areas of the
budget to be targeted in the coming year for joint review to
improve services or achieve efficiencies.
In carrying out its duties, the committee shall consult
with public employees of each jurisdiction and with other
stakeholders of the city, county, and school district, as
appropriate.
Sec. 22. [469.1811] [PROPERTY TAX EXEMPTION; AGRICULTURAL
PROCESSING FACILITIES.]
Subdivision 1. [DEFINITIONS.] For purposes of this section:
(1) "Agricultural processing facility" means land,
buildings, structures, fixtures, and improvements used or
operated primarily for the processing or production of
marketable products from agricultural crops, including waste and
residues from agricultural crops, but not including livestock or
livestock products, poultry or poultry products, or wood or wood
products. As used in this subdivision, land is limited to land
on which the buildings, structures, fixtures, and improvements
are situated and the immediately surrounding land used for
storage or other functions directly related to the processing or
production, not including land used for the growing of
agricultural crops.
(2) "Qualifying property" means taxable property: (i) that
consists of an agricultural processing facility; and (ii) for
which the agricultural processing facility project costs exceed
$100,000,000.
Subd. 2. [CITY MAY EXEMPT.] The governing body of a home
rule or statutory city may by resolution exempt qualifying
property from property taxation. The exemption may include the
entire market value of the qualifying property as determined by
the assessor, including the land and any improvements existing
at the time the exemption is granted, any increases in the value
of the land and improvements during the duration of the
exemption, and the value of any improvements constructed or
attached during the exemption period. The property tax
exemption granted by the city may not exceed a ten-year period
beginning with taxes payable the year following the year the
exemption is granted. At the expiration of the exemption
period, the facility shall be assessed and pay property taxes as
otherwise provided by law.
Subd. 3. [APPLICATION; HEARING.] A person proposing to
construct an agricultural processing facility may apply for a
property tax exemption to the city clerk of the city where the
facility is proposed to be located. The application must
contain a plan that includes a legal description of the real
estate on which the exemption is sought, a description of the
proposed facility, a detailed estimate of acquisition and
construction costs, a construction time schedule, and any other
information required by the city.
Before approving a tax exemption pursuant to this section,
the governing body of the city must hold a public hearing. The
municipal clerk or auditor shall publish a notice in the
official newspaper of the time and place of a hearing to be held
by the governing body on the application, not less than 30 days
after the notice is published. The notice shall state that the
applicant, local government officials, and any taxpayer of the
municipality may be heard or may present their views in writing
at or before the hearing. The hearing may be adjourned from
time to time, but the governing body shall take action on the
application by resolution within 30 days after the hearing
ends. If disapproved, the reasons shall be set forth in the
resolution. If the application for a tax exemption is approved,
the city clerk shall forward a copy of the resolution approving
the tax exemption to the county assessor who shall exempt the
property from taxation under the terms of and for the period
contained in the resolution.
Subd. 4. [CONDITIONS; REVOCATION.] (a) The governing body
of the city may set conditions to its approval or continuation
of a tax exemption under this section. The conditions may
include construction specifications; time limits for
construction; traffic, parking, safety, or environmental
requirements; requirements as to the type and number of jobs to
be created; valuation or assessment requirements after the
exemption expires; or any other conditions reasonably required
by the city to safeguard the public welfare.
(b) If the city proposes to revoke its approval of a tax
exemption granted under this section, it must notify the owner
of the property and give the person an opportunity to be heard.
The city must give the person 30 days' notice before holding the
hearing. A revocation by the city must be made by resolution
and must state the findings on which the revocation is based.
Sec. 23. Minnesota Statutes 1992, section 473.341, is
amended to read:
473.341 [TAX EQUIVALENTS.]
In each of the four years after year in which the
metropolitan council or park district, county or municipality an
implementing agency as defined in section 473.351 acquires fee
simple title to any real property included in the regional
recreation open space system, the metropolitan council shall pay
to the municipality or township in which the property is
situated an amount equal to the grant sufficient funds to the
appropriate implementing agency to make the tax equivalent
payment required in this section. The council shall determine
the total amount of the property taxes levied thereon on the
real property for municipal or township purposes for collection
in the year in which title passed, diminished by 20 percent for
each subsequent year to and including the year of payment;
provided that for any year in which taxes on the property, or on
the privilege of using or possessing it, are paid. The
municipality or township in which the real property is situated
shall be paid 180 percent of the total tax amount determined by
the council. If the implementing agency has granted a life
estate to the seller of the real property and the seller is
obligated to pay property taxes on the property, this tax
equivalent shall not be paid until the life estate ends. All
amounts paid pursuant to this section are costs of acquisition
of the real property with respect to which they are
paid acquired.
Sec. 24. Minnesota Statutes 1992, section 473H.05, is
amended by adding a subdivision to read:
Subd. 4. [RE-ENROLLING.] If an owner's property was
initially granted agricultural preserve status under subdivision
1 but the owner filed an agricultural preserve termination
notice on that property, the owner may re-enroll the property in
the program as provided in this subdivision. In lieu of the
requirements in subdivision 1, the county may allow a property
owner to re-enroll by completing a one page form or affidavit,
as prepared by the county. The county may require whatever
information is deemed necessary, except that approval by the
city or township, in which the property is located, shall be
required on the form or affidavit.
The county may charge the property owner a re-enrollment
fee, not to exceed $10, to defray any administrative cost.
Re-enrolling property under this subdivision shall be
allowed only if the same property owner or owners wish to
re-enroll the same property under the same conditions as was
originally approved under subdivision 1.
Sec. 25. Minnesota Statutes 1992, section 473H.18, is
amended to read:
473H.18 [TRANSFER FROM AGRICULTURAL PROPERTY TAX LAW
TREATMENT.]
When land which has been receiving the special agricultural
valuation and tax deferment provided in section 273.111 becomes
an agricultural preserve pursuant to sections 473H.02 to
473H.17, the recapture of deferred tax and special assessments,
as provided in section 273.111, subdivisions 9 and 11, shall not
be made. Special assessments deferred under section 273.111, at
the date of commencement of the preserve, shall continue to be
deferred for the duration of the preserve. For purposes of this
section, "deferred special assessments" shall include the total
amount of deferred special assessments under section 273.111 on
the property, including any portion of the deferred special
assessments which have not yet been levied at the time the
property transfers to the agricultural preserves program under
this chapter. All special assessments so deferred shall be
payable within 90 days of the date of expiration unless other
terms are mutually agreed upon by the authority and the owner.
In the event of early termination of a preserve or a portion of
it under section 473H.09, all special assessments accruing to
the terminated portion plus interest shall be payable within 90
days of the date of termination unless otherwise deferred or
abated by executive order of the governor. In the event of a
taking under section 473H.15 all special assessments accruing to
the taken portion plus interest shall be payable within 90 days
of the date the final certificate is filed with the court
administrator of district court in accordance with section
117.205.
Sec. 26. Minnesota Statutes 1992, section 580.23, as
amended by Laws 1993, chapter 40, section 2, is amended to read:
580.23 [REDEMPTION BY MORTGAGOR; AFFIDAVIT OF AGRICULTURAL
NONAGRICULTURAL USE; WAIVER.]
Subdivision 1. [SIX-MONTH REDEMPTION PERIOD.] When lands
have been sold in conformity with the preceding sections of this
chapter, the mortgagor, the mortgagor's personal representatives
or assigns, within six months after such sale, except as
otherwise provided in subdivision 2 or section 582.032 or
582.32, may redeem such lands, as hereinafter provided, by
paying the sum of money for which the same were sold, with
interest from the time of sale at the rate provided to be paid
on the mortgage debt and, if no rate be provided in the mortgage
note, at the rate of six percent per annum, together with any
further sums which may be payable as provided in sections 582.03
and 582.031.
Subd. 2. [12-MONTH REDEMPTION PERIOD.] Notwithstanding the
provisions of subdivision 1 hereof, when lands have been sold in
conformity with the preceding sections of this chapter, the
mortgagor, the mortgagor's personal representatives or assigns,
within 12 months after such sale, may redeem such lands in
accordance with the provisions of payment of subdivision 1
thereof, if:
(1) the mortgage was executed prior to July 1, 1967;
(2) the amount claimed to be due and owing as of the date
of the notice of foreclosure sale is less than 66-2/3 percent of
the original principal amount secured by the mortgage;
(3) the mortgage was executed prior to July 1, 1987, and
the mortgaged premises, as of the date of the execution of the
mortgage, exceeded ten acres in size;
(4) the mortgage was executed prior to August 1, 1994, and
the mortgaged premises, as of the date of the execution of the
mortgage, exceeded ten acres but did not exceed 40 acres in size
and was in agricultural use as defined in section 40A.02,
subdivision 3; or
(5) the mortgaged premises, as of the date of the execution
of the mortgage, exceeded 40 acres in size; or
(6) the mortgage was executed on or after August 1, 1994,
and the mortgaged premises, as of the date of the execution of
the mortgage, exceeded ten acres but did not exceed 40 acres in
size and was in agricultural use. For purposes of this clause,
"in agricultural use" means that at least a portion of the
mortgaged premises was classified for ad valorem tax purposes as:
(i) class 2a agricultural homestead property under section
273.13, subdivision 23;
(ii) class 2b rural or agricultural nonhomestead property
under section 273.13, subdivision 23;
(iii) class 1b agricultural homestead property under
section 273.13, subdivision 22; or
(iv) exempt wetlands under section 272.02, subdivision 1,
clause (10).
Subd. 3. [AFFIDAVIT OF AGRICULTURAL NONAGRICULTURAL USE.]
(a) With respect to mortgages executed prior to August 1, 1994,
an affidavit signed by the mortgagor and a certificate signed by
the county assessor where the land is located stating that the
mortgaged premises as legally described in the affidavit and
certificate are not in agricultural use as defined in section
40A.02, subdivision 3, may be recorded in the office of the
county recorder or registrar of titles where the property is
located and are prima facie evidence of the facts contained in
the affidavit and certificate.
(b) With respect to mortgages executed on or after August
1, 1994, an affidavit signed by the mortgagor and a certificate
signed by the county assessor where the land is located, stating
that the mortgaged premises as legally described in the
affidavit and certificate are not in agricultural use, may be
recorded in the office of the county recorder or registrar of
titles where the property is located and are prima facie
evidence of the facts contained in the affidavit and
certificate. For purposes of this paragraph, "not in
agricultural use" means that no portion of the mortgaged
premises, as legally described in the affidavit or certificate,
is currently classified for ad valorem tax purposes in any
classification listed in subdivision 2, clause (6), item (i),
(ii), (iii), or (iv).
Subd. 4. [WAIVER OF 12-MONTH REDEMPTION BASED UPON
AGRICULTURAL USE.] A mortgagor, before or at the time of
granting a mortgage executed on or after August 1, 1994, may
waive in writing the mortgagor's right under subdivision 2,
clause (6), to have a 12-month redemption period based upon the
premises being in agricultural use as of the date of execution
of the mortgage. The written waiver must be either a document
separate from the mortgage or a separately executed and
acknowledged addendum to the mortgage on a separate page. If
the written waiver is a separate document, it must be in
recordable form and must either recite the recorded or filed
document number of the mortgage or recite the names of the
mortgagor and mortgagee, the legal description of the mortgaged
property, and the date of the mortgage. If the written waiver
is a separate document, it must be recorded in the office of the
county recorder or filed in the office of the registrar of
titles no later than ten days after the recording or filing of
the mortgage. Where there is a waiver of the rights under
subdivision 2, clause (6), the redemption period in subdivision
1 applies.
Sec. 27. [RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT.]
Subdivision 1. [PILOT; TERM.] A pilot project for rental
tax equity in the city of Saint Paul is established. The
program is for property taxes payable in 1995. The program is
available to owners of single- and two-family nonhomestead
property.
Subd. 2. [PRIMARY OBJECTIVE.] The pilot project's primary
objective is to help stabilize costs for the conscientious,
industrious landlord who is already providing safe, decent, and
affordable housing. The property tax reduction provided by the
program is intended to give an incentive to other landlords to
improve their tenant-occupied property and still offer
affordable housing.
Subd. 3. [PROPERTY TAX TREATMENT.] (a) Single- and
two-family nonhomestead property located in the city of Saint
Paul and existing on the effective date of this section, that is
classified under Minnesota Statutes, section 273.13, subdivision
25, paragraph (b), clause (1), and that meets the requirements
of this section, is eligible for the property tax credit under
subdivision 8.
(b) The program is not a housing or building code
enforcement program.
(c) Participation in the program is voluntary.
(d) If reimbursements under subdivision 8 limit the number
of participants in this program, priority shall be given to
landlords who live in the city of Saint Paul.
Subd. 4. [NOTIFICATION TO OWNERS.] The city of Saint Paul
shall notify the owner of each single- and two-family
nonhomestead property located in the city that the property may
be eligible to receive a property tax credit as provided in this
section.
Subd. 5. [PROGRAM STEPS.] (a) A landlord who owns eligible
property and who wishes to participate must arrange for a
certified evaluator who is licensed by the city of Saint Paul to
evaluate the property.
(b) The landlord must notify the tenant of the evaluation
so that the tenant may be present if the tenant wishes.
(c) The evaluator must evaluate the property using program
guidelines adopted by resolution of the Saint Paul city council
prior to implementation of the program under this section.
(d) If the evaluator determines that repairs are necessary,
the landlord must make the repairs and call for a reinspection
by the evaluator. If the evaluator identifies life or safety
hazards, the evaluator must notify appropriate city officials,
who shall take immediate action to require and enforce repair of
the life or safety hazard items.
(e) The evaluator must reinspect the property to see if the
program guidelines have been followed.
(f) The evaluator must submit a report on the property's
evaluation to the appropriate city officials, the landlord, and
the tenant. A filing fee must be paid at the time the report is
submitted to the city.
(g) Appropriate city officials must review the report and
approve it or issue orders for further repair. In so doing,
city staff members may make an on-site review. The landlord may
withdraw from the program at any time without making required
repairs except those for life or safety hazards, which may be
otherwise required. Property for which the evaluator's report
is approved must be certified by the appropriate city officials
to the county assessor. The city must limit the number of
qualifying properties so that the credit payable under
subdivision 8 will not, in the city's estimate, exceed
$1,000,000.
(h) A landlord who chooses to participate must complete an
application for certification by November 1, 1994.
(i) An owner may apply this program to no more than two
nonhomestead, single- or two-family, tenant-occupied properties.
Subd. 6. [APPEALS.] (a) The board of equalization must
serve as a board of review to hear appeals relating to the value
of improvements and properties. Procedures for board actions
and for appeals from board decisions are as provided for other
matters decided by the board of equalization.
(b) The city may appoint a board of appeals to hear
disputes regarding qualification. The board shall meet to hear
appeals under this program between November 1 and December 1,
1994.
Subd. 7. [CITY FEES.] The landlord must pay the housing
evaluator a fee, as determined by the city, for the initial
inspection and necessary reinspections. The evaluator must pay
a filing fee, as determined by the city, to file the evaluator's
report. The evaluator may be reimbursed by the landlord for
this fee. The landlord must pay the city a fee, as determined
by the city, to apply for recertification. If additional
inspections are required, a reinspection fee, as determined by
the city, must be paid by the landlord.
Subd. 8. [CREDIT AND REIMBURSEMENT.] (a) [CREDIT
PROVIDED.] Property that meets the requirements under this
section is eligible for a property tax credit equal to the
difference between (1) the tax on the property and (2) the tax
that would be payable if the property were classified under
Minnesota Statutes, section 273.13, subdivision 22, paragraph
(a).
(b) [PROPERTY TAX STATEMENTS.] The property tax statement
provided under Minnesota Statutes, section 276.04, to an owner
of property that receives the credit under this subdivision
shall include information on the amount of the credit given to
the property. The Ramsey county treasurer shall notify the
commissioner of revenue on how the county plans to modify the
property tax statements to include the necessary information.
(c) [GENERAL FUND; REPLACEMENT OF REVENUE.] Payment from
the general fund shall be made as provided in this subdivision
for the purpose of replacing revenue lost as a result of the
reduction of property taxes provided in this subdivision.
The Ramsey county auditor shall certify to the commissioner
of revenue the amount of reduction resulting from this
subdivision. This certification shall be submitted to the
commissioner of revenue as part of the abstracts of tax lists
required to be filed with the commissioner under the provisions
of Minnesota Statutes, section 275.29. The commissioner of
revenue shall review the certification to determine its accuracy
and make changes in the certification as necessary or return the
certification to the county auditor for corrections.
Based on current year tax data reported in the abstracts of
tax lists, the commissioner of revenue shall determine the
taxing district distribution of the amounts certified. The
commissioner of revenue shall pay to each taxing district, other
than school districts, its total payment for the year at the
times provided in Minnesota Statutes, section 473H.10. The
credit reimbursement to school districts must be certified to
the commissioner of education and paid as provided under
Minnesota Statutes, section 273.1392.
The reimbursement paid under this subdivision shall be made
only in 1995, and is limited to $1,000,000. To the extent the
amount of credit originally certified exceeds $1,000,000,
reimbursements to the taxing districts shall be prorated
according to the proportions of their levies so as not to exceed
$1,000,000.
Subd. 9. [REPORT TO THE LEGISLATURE.] By January 15, 1995,
the Saint Paul city council shall provide a report to the
committee on housing and the committee on taxes and tax laws of
the senate and the housing committee and the tax committee of
the house of representatives on the program. The report must
include the program guidelines, housing costs, rents and the
extent of participation in the program for the 1995 tax year.
Subd. 10. [EFFECTIVE DATE.] This section is effective the
day following final enactment, upon compliance with Minnesota
Statutes, section 645.021, subdivision 3, by the city of Saint
Paul, and applies to property taxes payable in 1995 on
nonhomestead, single- and two-family rental properties existing
on the effective date.
Sec. 28. [PILOT PROJECT STUDY FOR INFORMATION ON SQUARE
FOOTAGE OF PROPERTY.]
The commissioner of revenue shall coordinate a pilot
project study with the counties of Hennepin and Blue Earth. The
primary purpose is to collect, by legal classification of real
property, information on the total square footage of land and
structures within the respective counties by taxing
jurisdiction. The square footage shall be identified separately
for land and for structures.
By February 15, 1995, the commissioner shall provide a
report to the tax committee of the house of representatives and
the committee on taxes and tax laws of the senate. Besides
reporting the basic data, the report shall discuss the
feasibility of developing a statewide system of property
taxation in which a property's tax base would be determined by
its square footage.
Sec. 29. [STUDY OF HOMESTEAD PROPERTY TAX RELIEF.]
The commissioner of revenue shall conduct a study of the
methods of delivering property tax relief to homeowners. The
study must specifically include an analysis of the
administrative feasibility, policy implications, and state
revenue impacts of proposals to:
(1) pay the additional property tax refund under Minnesota
Statutes, section 290A.04, subdivision 2h, as a state paid
property tax credit on the property tax statement, and
(2) pay the property tax refund under Minnesota Statutes,
section 290A.04, subdivision 2, as a state paid credit on the
property tax statement.
The study must also consider alternative computations of
the refund amounts wherein the additional property tax refund is
deducted before computation of the regular property tax refund.
The study must consider options to pay the credits as an
equal deduction from both of the property tax payments on the
property tax statement, and as a deduction only from the second
half payment, thus requiring a second property tax statement.
The study must determine income and other data needed to
implement the proposals and consider the forms, methods, and
dates by which the necessary data can be made available.
The study should consider the possibility of showing the
credit(s) on the property tax statement only or on both the
property tax statement and the notice of proposed property taxes.
The study must also determine the changes in property tax
administration that would be necessary to implement the tax
credit proposals.
The study must separately estimate the costs to each county
necessary to implement and administer the tax credit proposals,
considering both initial start-up costs and ongoing
administrative expenses, including programming, form design,
data entry, and computer hardware costs, and must also estimate
the costs to the department of revenue.
The commissioner shall consult with the chair of the senate
committee on taxes and tax laws and with the chair of the house
of representatives committee on taxes, and with their staffs, in
planning and conducting the study.
On or before January 20, 1995, the commissioner of revenue
shall report to the legislature on the information collected,
and on the study's findings, including its policy and fiscal
implications to the state. The report shall include a
discussion of the proposals and any statutory changes necessary
to implement them.
Sec. 30. [EXTENSION OF PAYABLE 1995 LEVY CERTIFICATION
DATE.]
The July 1 dates specified in Laws 1994, chapter 416,
article 1, section 29, shall be extended to September 1, for the
purposes of the 1994 levy, payable in 1995, for (1) the Cross
Lake area water and sanitary sewer district under article 10,
(2) the Chisholm/Hibbing airport authority under article 11, and
(3) the airport municipal bonding under sections 17 to 20 of
this article.
Sec. 31. [REPEALER.]
Minnesota Statutes 1993 Supplement, section 82.19,
subdivision 9, is repealed.
Sec. 32. [EFFECTIVE DATE.]
Sections 1, 14, and 15 are effective for petitions relating
to property taxes payable in 1995, and thereafter.
Sections 2, 17 to 20, 27, and 30 are effective the day
following final enactment.
Section 4 is effective for the 1994 assessment, taxes
payable in 1995, except that the changes requiring an
application to be filed and the market value eligibility
provisions made in section 4 are effective July 1, 1994, and
thereafter.
Sections 5 and 31 are effective July 1, 1994.
Sections 6 and 25 are effective the day following final
enactment for property which transfers from the agricultural
property tax provisions under Minnesota Statutes, section
273.111, to the metropolitan agricultural preserves under
Minnesota Statutes, chapter 473H.
Sections 7, 8, 10 to 12, and 16 are effective for taxes
levied in 1994, payable in 1995, and thereafter.
Section 9 is only effective for homestead applications
filed after the day following final enactment, for property
taxes payable in 1995 and thereafter.
Section 13 is effective for property tax statements for
taxes payable in 1995, and thereafter.
Section 22 is effective the day following final enactment
and applies to agricultural processing facilities for which
construction is commenced after that date.
Section 23 is effective for tax equivalent payments due in
1995 and thereafter, and applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Section 24 is effective for property re-enrolled in the
metropolitan agricultural preserve program on or after July 1,
1994.
Section 26 is effective August 1, 1994.
ARTICLE 6
MINERALS TAXATION
Section 1. [297A.2573] [MINERAL PRODUCTION FACILITIES;
EXEMPTION.]
Materials, equipment, and supplies used or consumed in
constructing, or incorporated into the construction of exempted
facilities as defined in this section are exempt from the taxes
imposed under this chapter and from any sales and use tax
imposed by a local unit of government, notwithstanding any
ordinance or city charter provision.
As used in this section, "exempted facilities" means:
(1) a value added iron products plant, which may be either
a new plant or a facility incorporated into an existing plant
that produces iron upgraded to a minimum of 75 percent iron
content or any iron alloy with a total minimum metallic content
of 90 percent;
(2) a facility used for the manufacture of fluxed taconite
pellets as defined in section 298.24;
(3) a new capital project that has a total cost of over
$40,000,000 that is directly related to production, cost, or
quality at an existing taconite facility that does not qualify
under clause (1) or (2); and
(4) a new mine or minerals processing plant for any mineral
subject to the net proceeds tax imposed under section 298.015.
The tax shall be imposed and collected as if the rates
under sections 297A.02, subdivision 1, and 297A.021, applied,
and then refunded in the manner provided in section 297A.15,
subdivision 5.
Sec. 2. Minnesota Statutes 1993 Supplement, section
298.227, is amended to read:
298.227 [TACONITE ECONOMIC DEVELOPMENT FUND.]
An amount equal to that distributed pursuant to each
taconite producer's taxable production and qualifying sales
under section 298.28, subdivision 9a, shall be held by the iron
range resources and rehabilitation board in a separate taconite
economic development fund for each taconite producer. Money
from the fund for each producer shall be released only on the
written authorization of a joint committee consisting of an
equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that
producer. The district 33 director of the United States
Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized
operations, the employee committee shall be elected by the
nonsalaried production and maintenance employees. Each
producer's joint committee may authorize release of the funds
held pursuant to this section only for acquisition of equipment
and facilities for the producer or for research and development
in Minnesota on new mining, or taconite, iron, or steel
production technology. Funds may be released only upon a
majority vote of the representatives of the committee. If a
taconite production facility is sold after operations at the
facility had ceased, any money remaining in the fund for the
former producer may be released to the purchaser of the facility
on the terms otherwise applicable to the former producer under
this section. Any portion of the fund which is not released by
a joint committee within two years of its deposit in the fund
shall be divided between the taconite environmental protection
fund created in section 298.223 and the northeast Minnesota
economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of
the unreleased funds shall be distributed to the taconite
environmental protection fund and one-third to the northeast
Minnesota economic protection trust fund. This section is
effective for taxes payable in 1993 and 1994.
Sec. 3. Minnesota Statutes 1992, section 298.24,
subdivision 1, is amended to read:
Subdivision 1. (a) For concentrate produced in 1992 and,
1993, and 1994 there is imposed upon taconite and iron
sulphides, and upon the mining and quarrying thereof, and upon
the production of iron ore concentrate therefrom, and upon the
concentrate so produced, a tax of $2.054 per gross ton of
merchantable iron ore concentrate produced therefrom.
(b) For concentrates produced in 1994 1995 and subsequent
years, the tax rate shall be equal to the preceding year's tax
rate plus an amount equal to the preceding year's tax rate
multiplied by the percentage increase in the implicit price
deflator from the fourth quarter of the second preceding year to
the fourth quarter of the preceding year. "Implicit price
deflator" for the gross national product means the implicit
price deflator prepared by the bureau of economic analysis of
the United States Department of Commerce.
(c) The tax shall be imposed on the average of the
production for the current year and the previous two years. The
rate of the tax imposed will be the current year's tax rate.
This clause shall not apply in the case of the closing of a
taconite facility if the property taxes on the facility would be
higher if this clause and section 298.25 were not applicable.
(d) If the tax or any part of the tax imposed by this
subdivision is held to be unconstitutional, a tax of $2.054 per
gross ton of merchantable iron ore concentrate produced shall be
imposed.
(e) Consistent with the intent of this subdivision to
impose a tax based upon the weight of merchantable iron ore
concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate
included in fluxed pellets by subtracting the weight of the
limestone, dolomite, or olivine derivatives or other basic flux
additives included in the pellets from the weight of the
pellets. For purposes of this paragraph, "fluxed pellets" are
pellets produced in a process in which limestone, dolomite,
olivine, or other basic flux additives are combined with
merchantable iron ore concentrate. No subtraction from the
weight of the pellets shall be allowed for binders, mineral and
chemical additives other than basic flux additives, or moisture.
(f) Notwithstanding any other provision of this
subdivision, for concentrates produced in 1994 through 1999, the
rate of the tax on direct reduced ore is determined under this
paragraph. As used in this paragraph, "direct reduced ore" is
ore that results in a product that has an iron content of at
least 75 percent. The rate to be applied to direct reduced ore
is 25 percent of the rate otherwise determined under this
subdivision for the first 500,000 of taxable tons for the
production year, and 50 percent of the rate otherwise determined
for any remainder. If the taxpayer had no production in the two
years prior to the the current production year, the tonnage
eligible to be taxed at 25 percent of the rate otherwise
determined under this subdivision is the first 166,667 tons. If
the taxpayer had some production in the year prior to the
current production year but no production in the second prior
year, the tonnage eligible to be taxed at 25 percent of the rate
otherwise determined under this subdivision is the first 333,333
tons.
Sec. 4. 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, 1995, and 1996 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 inch in size and not including crushed
pellets shall be paid to the taconite economic development
fund. The amount paid shall not exceed $700,000 annually for
all companies. If the initial amount to be paid to the fund
exceeds this amount, each company's payment shall be prorated so
the total does not exceed $700,000.
Sec. 5. Minnesota Statutes 1992, section 298.28, is
amended by adding a subdivision to read:
Subd. 11a. [PRORATED DISTRIBUTIONS.] For production years
1994 through 1999, distributions under this section that are
based on a number of cents per ton explicitly provided in this
section shall be reduced on a pro rata basis to reflect the
reduction in tax proceeds as a result of the tax rate reduction
applied to direct reduced ore under section 298.24, subdivision
1, paragraph (f).
Sec. 6. Minnesota Statutes 1992, section 298.296,
subdivision 2, is amended to read:
Subd. 2. [EXPENDITURE OF FUNDS.] Before January 1, 2002,
funds may be expended on projects and for administration of the
trust fund only from the net interest, earnings, and dividends
arising from the investment of the trust at any time, including
net interest, earnings, and dividends that have arisen prior to
July 13, 1982, plus $10,000,000 made available for use in fiscal
year 1983, except that any amount required to be paid out of the
trust fund to provide the property tax relief specified in Laws
1977, chapter 423, article X, section 4, and to make school bond
payments and payments to recipients of taconite production tax
proceeds pursuant to section 298.225, may be taken from the
corpus of the trust. Additionally, upon recommendation by the
board, up to $10,000,000 from the corpus of the trust may be
made available for use as provided in subdivision 4. On and
after January 1, 2002, funds may be expended on projects and for
administration from any assets of the trust. Annual
administrative costs, not including detailed engineering
expenses for the projects, shall not exceed five percent of the
net interest, dividends, and earnings arising from the trust in
the preceding fiscal year.
Principal and interest received in repayment of loans made
pursuant to this section, and earnings on other investments made
under section 298.292, subdivision 2, clause (4), shall be
deposited in the state treasury and credited to the trust.
These receipts are appropriated to the board for the purposes of
sections 298.291 to 298.298.
Sec. 7. Minnesota Statutes 1992, section 298.296, is
amended by adding a subdivision to read:
Subd. 4. [TEMPORARY LOAN AUTHORITY.] The board may
recommend that up to $10,000,000 from the corpus of the trust
may be used for loans as provided in this subdivision. The
money would be available for loans for construction and
equipping of facilities constituting (1) a value added iron
products plant, which may be either a new plant or a facility
incorporated into an existing plant that produces iron upgraded
to a minimum of 75 percent iron content or any iron alloy with a
total minimum metallic content of 90 percent; or (2) a new mine
or minerals processing plant for any mineral subject to the net
proceeds tax imposed under section 298.015. A loan under this
subdivision may not exceed $5,000,000 for any facility. The
authority to make loans under this subdivision terminates
December 31, 1995.
Sec. 8. [EFFECTIVE DATE.]
Section 1 is effective for sales after June 30, 1994,
provided that no refunds will be paid under section 1 until
after June 30, 1995.
ARTICLE 7
BUDGETING REFORM
Section 1. [16A.102] [BUDGETING REVENUES RELATIVE TO
PERSONAL INCOME.]
Subdivision 1. [GOVERNOR'S RECOMMENDATION.] By the fourth
Monday in January of each odd-numbered year, the governor shall
submit to the legislature a recommended revenue target for the
next two bienniums. The recommended revenue target must specify
(1) the maximum share of Minnesota personal income to be
collected in taxes and other revenues to pay for state and local
government services;
(2) the division of the share between state and local
government revenues; and
(3) the appropriate mix and rates of income, sales, and
other state and local taxes and other revenues, other than
property taxes, and the amount of property taxes and the effect
of the recommendations on the incidence of the tax burden by
income class.
The recommendations must be based on the November forecast
prepared under section 2.
Subd. 2. [LEGISLATIVE BUDGET RESOLUTION.] By March 15 of
each odd-numbered year, the legislature shall by concurrent
resolution adopt revenue targets for the next two bienniums.
The resolution must specify:
(1) the maximum share of Minnesota personal income to be
collected in taxes and other revenues to pay for state and local
government services;
(2) the division of the share between state and local
government services; and
(3) the appropriate mix and rates of income, sales, and
other state and local taxes and other revenues, other than
property taxes, and the amount of property taxes and the effect
of the resolution on the incidence of the tax burden by income
class.
The resolution must be based on the February forecast prepared
under section 2 and take into consideration the revenue targets
recommended by the governor under subdivision 1.
Subd. 3. [EVEN-NUMBERED YEAR AND SPECIAL SESSIONS.] The
governor or the legislature may elect to modify their revenue
targets in a special session or an even-numbered year regular
session. The requirements of subdivisions 1 and 2 apply, except
that within ten days of the start of the session the dates
provided in those subdivisions must be modified to be consistent
with the planned date of adjournment.
Sec. 2. [16A.103] [FORECASTS OF REVENUE AND EXPENDITURES.]
Subdivision 1. [STATE REVENUE AND EXPENDITURES.] In
February and November each year, the commissioner shall prepare
and deliver to the governor and legislature a forecast of state
revenue and expenditures. The forecast must assume the
continuation of current laws and reasonable estimates of
projected growth in the national and state economies and
affected populations. Revenue must be estimated for all sources
provided for in current law. Expenditures must be estimated for
all obligations imposed by law and those projected to occur as a
result of inflation and variables outside the control of the
legislature. In addition, the commissioner shall forecast
Minnesota personal income for each of the years covered by the
forecast and include these estimates in the forecast documents.
A forecast prepared during the first fiscal year of a biennium
must cover that biennium and the next biennium. A forecast
prepared during the second fiscal year of a biennium must cover
that biennium and the next two bienniums.
Subd. 2. [LOCAL REVENUE.] In February and November of each
year, the commissioner of revenue shall prepare and deliver to
the governor and the legislature forecasts of revenue to be
received by school districts as a group, counties as a group,
and the group of cities and towns that have a population of more
than 2,500. The forecasts must assume the continuation of
current laws, projections of valuation changes in real property,
and reasonable estimates of projected growth in the national and
state economies and affected populations. Revenue must be
estimated for property taxes, state and federal aids, local
sales taxes, if any, and a single projection for all other
revenue for each group of affected local governmental units. As
part of the February forecast, the commissioner of revenue shall
report to the governor and legislature on which groups of local
government units exceeded the revenue targets of the governor
and legislature in the most recent biennium.
Subd. 3. [SEPARATE ESTIMATES OF FEE REVENUES.] In
preparing the November estimates under subdivision 1, the
commissioner shall separately report the amount of departmental
earnings as defined in section 16A.1285. In preparing the
estimates under subdivision 2, the commissioner of revenue shall
separately estimate local government revenues similar to
departmental earnings as defined in section 16A.1285.
Sec. 3. Minnesota Statutes 1992, section 124.196, is
amended to read:
124.196 [CHANGE IN PAYMENT OF AIDS AND CREDITS.]
If the commissioner of finance determines that
modifications in the payment schedule are required to avoid
would reduce the need for state short-term borrowing, the
commissioner of education shall modify payments to school
districts according to this section. The modifications shall
begin no sooner than September 1 of each fiscal year, and shall
remain in effect until no later than May 30 of that same fiscal
year. In calculating the payment to a school district pursuant
to section 124.195, subdivision 3, the commissioner may subtract
the sum specified in that subdivision, plus an additional amount
no greater than the following:
(1) the net cash balance in the district's four operating
funds on June 30 of the preceding fiscal year; minus
(2) the product of $150 times the number of actual pupil
units in the preceding fiscal year; minus
(3) the amount of payments made by the county treasurer
during the preceding fiscal year, pursuant to section 276.11,
which is considered revenue for the current school year.
However, no additional amount shall be subtracted if the total
of the net unappropriated fund balances in the district's four
operating funds on June 30 of the preceding fiscal year, is less
than the product of $350 times the number of actual pupil units
in the preceding fiscal year. The net cash balance shall
include all cash and investments, less certificates of
indebtedness outstanding, and orders not paid for want of funds.
A district may appeal the payment schedule established by
this section according to the procedures established in section
124.195, subdivision 3a.
Sec. 4. [275.064] [ESTIMATED PERSONAL INCOME INCREASE.]
By July 1 of each year, the commissioner of revenue shall
estimate the percentage increase in Minnesota personal income
for the next calendar year over the current calendar year, using
the most recent forecast prepared by the commissioner of
finance. The commissioner of revenue shall notify each local
government subject to the requirements of section 275.065 of
this percentage by July 15.
Sec. 5. 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. The notice must include the estimated
percentage increase in Minnesota personal income, provided by
the commissioner of revenue under section 275.064, in a way to
facilitate comparison of the proposed budget and levy increases
with the increase in personal income. 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. 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. 6. [EFFECTIVE DATE.]
Sections 1 to 3 are effective the day following final
enactment. Sections 4 and 5 apply beginning for notices of
proposed property taxes for taxes payable in 1995.
ARTICLE 8
BOARD OF GOVERNMENT INNOVATION AND COOPERATION
Section 1. Minnesota Statutes 1993 Supplement, section
465.795, subdivision 7, is amended to read:
Subd. 7. [SCOPE.] As used in sections 465.795 to 465.799
and sections 465.80 465.801 to 465.87, the terms defined in this
section have the meanings given them.
Sec. 2. Minnesota Statutes 1993 Supplement, section
465.796, subdivision 2, is amended to read:
Subd. 2. [DUTIES OF BOARD.] The board shall:
(1) accept applications from local government units for
waivers of administrative rules and temporary, limited
exemptions from enforcement of procedural requirements in state
law as provided in section 465.797, and determine whether to
approve, modify, or reject the application;
(2) accept applications for grants to local government
units and related organizations proposing to design models or
plans for innovative service delivery and management as provided
in section 465.798 and determine whether to approve, modify, or
reject the application;
(3) accept applications from local government units for
financial assistance to enable them to plan for cooperative
efforts as provided in section 465.799, and determine whether to
approve, modify, or reject the application;
(4) accept applications from eligible local government
units for service-sharing grants as provided in section 465.80
465.801, and determine whether to approve, modify, or reject the
application;
(5) accept applications from counties, cities, and towns
proposing to combine under sections 465.81 to 465.87, and
determine whether to approve or disapprove the application; and
(6) make recommendations to the legislature regarding the
elimination of state mandates that inhibit local government
efficiency, innovation, and cooperation.
The board may purchase services from the metropolitan council in
reviewing requests for waivers and grant applications.
Sec. 3. Minnesota Statutes 1993 Supplement, section
465.797, subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] (a) Except as provided in
paragraph (b), a local government unit may request the board of
government innovation and cooperation to grant a waiver from one
or more administrative rules or a temporary, limited exemption
from enforcement of state procedural laws governing delivery of
services by the local government unit. Two or more local
government units may submit a joint application for a waiver or
exemption under this section if they propose to cooperate in
providing a service or program that is subject to the rule or
law. Before submitting an application to the board, the
governing body of the local government unit must approve, in
concept, the proposed waiver or exemption request by resolution
at a meeting required to be public under section 471.705. A
local government unit or two or more units acting jointly may
apply for a waiver or exemption on behalf of a nonprofit
organization providing services to clients whose costs are paid
by the unit or units. A waiver or exemption granted to a
nonprofit organization under this section applies to services
provided to all the organization's clients.
(b) A school district that is granted a variance from rules
of the state board of education under section 121.11,
subdivision 12, need not apply to the board for a waiver of
those rules under this section. A school district may not seek
a waiver of rules under this section if the state board of
education has authority to grant a variance to the rules under
section 121.11, subdivision 12. This paragraph does not
preclude a school district from being included in a cooperative
effort with another local government unit under this section.
Sec. 4. Minnesota Statutes 1993 Supplement, section
465.797, subdivision 2, is amended to read:
Subd. 2. [APPLICATION.] A local government unit requesting
a waiver of a rule or exemption from enforcement of a law under
this section shall present a written application to the board.
The application must include:
(1) identification of the service or program at issue;
(2) identification of the administrative rule or the law
imposing a procedural requirement with respect to which the
waiver or exemption is sought; and
(3) a description of the improved service outcome sought,
including an explanation of the effect of the waiver or
exemption in accomplishing that outcome;.
(4) a description of the means by which the attainment of
the outcome will be measured; and
(5) if the waiver or exemption is proposed by a single
local government unit, a description of the consideration given
to intergovernmental cooperation in providing this service, and
an explanation of why the local government unit has elected to
proceed independently.
A copy of the application must be provided by the
requesting local government unit to the exclusive representative
of its employees as certified under section 179A.12 to represent
employees who provide the service or program affected by the
requested waiver or exemption.
Sec. 5. Minnesota Statutes 1993 Supplement, section
465.797, subdivision 3, is amended to read:
Subd. 3. [REVIEW PROCESS.] (a) Upon receipt of an
application from a local government unit, the board shall review
the application. The board shall dismiss or request
modification of an application within 60 days of its receipt if
it finds that (1) the application does not meet the requirements
of subdivision 2, or (2) the application should not be granted
because it clearly proposes a waiver of rules or exemption from
enforcement of laws that would result in due process violations,
violations of federal law or the state or federal constitution,
or the loss of services to people who are entitled to them.
(b) The board shall determine whether a law from which an
exemption for enforcement is sought is a procedural law,
specifying how a local government unit is to achieve an outcome,
rather than a substantive law prescribing the outcome or
otherwise establishing policy. In making its determination, the
board shall consider whether the law specifies such requirements
as:
(1) who must deliver a service;
(2) where the service must be delivered;
(3) to whom and in what form reports regarding the service
must be made; and
(4) how long or how often the service must be made
available to a given recipient.
(c) If the commissioner of finance, the commissioner of
administration, or the state auditor has jurisdiction over a
rule or law affected by an application, the chief administrative
law judge, as soon as practicable after receipt of the
application, shall designate a third administrative law judge to
serve as a member of the board in place of that official while
the board is deciding whether to grant the waiver or exemption.
(d) If the application is submitted by a local government
unit in the metropolitan area or the unit requests a waiver of a
rule or temporary, limited exemptions from enforcement of a
procedural law over which the metropolitan council or a
metropolitan agency has jurisdiction, the board shall also
transmit a copy of the application to the council for review and
comment. The council shall report its comments to the board
within 60 days of the date the application was transmitted to
the council. The council may point out any resources or
technical assistance it may be able to provide a local
government submitting a request under this section. If it does
not dismiss
(e) Within 15 days after receipt of the application, the
board shall transmit a copy of it to the commissioner of each
agency having jurisdiction over a rule or law from which a
waiver or exemption is sought. The agency may mail a notice
that it has received an application for a waiver or exemption to
all persons who have registered with the agency under section
14.14, subdivision 1a, identifying the rule or law from which a
waiver or exemption is requested. If no agency has jurisdiction
over the rule or law, the board shall transmit a copy of the
application to the attorney general. If the commissioner of
finance, the commissioner of administration, or the state
auditor has jurisdiction over the rule or law, the chief
administrative law judge shall appoint a second administrative
law judge to serve as a member of the board in the place of that
official for purposes of determining whether to grant the waiver
or exemption. The agency shall inform the board of its
agreement with or objection to and grounds for objection to the
waiver or exemption request within 60 days of the date when the
application was transmitted to it. An agency's failure to do so
is considered agreement to the waiver or exemption. The board
shall decide whether to grant a waiver or exemption at its next
regularly scheduled meeting following its receipt of an agency's
response or the end of the 60-day response period. If
consideration of an application is not concluded at that
meeting, the matter may be carried over to the next meeting of
the board. Interested persons may submit written comments to
the board on the waiver or exemption request within 60 days of
the board's receipt of up to the time of its vote on the
application. If the agency fails to inform the board of its
conclusion with respect to the application within 60 days of its
receipt, the agency is deemed to have agreed to the waiver or
exemption.
(f) If the exclusive representative of the affected
employees of the requesting local government unit objects to the
waiver or exemption request it may inform the board of the
objection to and the grounds for the objection to the waiver or
exemption request within 60 days of the receipt of the
application.
Sec. 6. Minnesota Statutes 1993 Supplement, section
465.797, subdivision 4, is amended to read:
Subd. 4. [HEARING.] If the agency or the exclusive
representative does not agree with the waiver or exemption
request, the board shall set a date for a hearing on the
application, which may be no earlier than 90 days after the date
when the application was transmitted to the agency. The hearing
must be conducted informally at a meeting of the board. Persons
representing the local government unit shall present their case
for the waiver or exemption, and persons representing the agency
shall explain the agency's objection to it. Members of the
board may request additional information from either party. The
board may also request, either before or at the hearing,
information or comments from representatives of business, labor,
local governments, state agencies, consultants, and members of
the public. If necessary, the hearing may be continued at a
subsequent board meeting. A waiver or exemption must be granted
by a vote of a majority of the board members. The board may
modify the terms of the waiver or exemption request in arriving
at the agreement required under subdivision 5.
Sec. 7. Minnesota Statutes 1993 Supplement, section
465.797, subdivision 5, is amended to read:
Subd. 5. [CONDITIONS OF AGREEMENTS.] If the board grants a
request for a waiver or exemption, the board and the local
government unit shall enter into an agreement providing for the
delivery of the service or program that is the subject of the
application. The agreement must specify desired outcomes and
the means of measurement by which the board will determine
whether the outcomes specified in the agreement have been met.
The agreement must specify the duration of the waiver or
exemption, which may be for no less than two years and no more
than four years, subject to renewal if both parties agree. The
board may reconsider or renegotiate the agreement if the rule or
law affected by the waiver or exemption is amended or repealed
during the term of the original agreement. A waiver of a rule
under this section has the effect of a variance granted by an
agency under section 14.05, subdivision 4. A local unit of
government that is granted an exemption from enforcement of a
procedural requirement in state law under this section is exempt
from that law for the duration of the exemption. The board may
require periodic reports from the local government unit, or
conduct investigations of the service or program.
Sec. 8. Minnesota Statutes 1993 Supplement, section
465.798, is amended to read:
465.798 [SERVICE BUDGET MANAGEMENT MODEL GRANTS.]
One or more local units of governments, an association of
local governments, the metropolitan council, or an organization
a local unit of government acting in conjunction with a local
unit of government an organization or a state agency, or an
organization established by two or more local units of
government under a joint powers agreement may apply to the board
of government innovation and management for a grant to be used
to develop models for innovative service budget management. A
copy of the application must be provided by the units to the
exclusive representatives certified under section 179A.12 to
represent employees who provide the service or program affected
by the application.
Proposed models may provide options to local governments,
neighborhood or community organizations, or individuals for
managing budgets for service delivery. A copy of the work
product for which the grant was provided must be furnished to
the board upon completion, and the board may disseminate it to
other local units of government or interested groups. If the
board finds that the model was not completed or implemented
according to the terms of the grant agreement, it may require
the grantee to repay all or a portion of the grant. The board
shall award grants on the basis of each qualified applicant's
score under the scoring system in section 465.802. The amount
of a grant under this section shall may not exceed $50,000.
Sec. 9. Minnesota Statutes 1993 Supplement, section
465.799, is amended to read:
465.799 [COOPERATION PLANNING GRANTS.]
Two or more local government units; an association of local
governments; a local unit of government acting in conjunction
with the metropolitan council, an organization, or a state
agency; or an organization formed by two or more local units of
government under a joint powers agreement may apply to the board
of government innovation and cooperation for a grant to be used
to develop a plan for intergovernmental cooperation in providing
services. The grant application must include the following
information:
(1) the identity of the local government units proposing to
enter into the planning process;
(2) a description of the services to be studied and the
outcomes sought from the cooperative venture; and
(3) a description of the proposed planning process,
including an estimate of its costs, identification of the
individuals or entities who will participate in the planning
process, and an explanation of the need for a grant to the
extent that the cost cannot be paid out of the existing
resources of the local government unit. A copy of the
application must be submitted by the applicants to the exclusive
representatives certified under section 179A.12 to represent
employees who provide the service or program affected by the
application.
The plan may include model contracts or agreements to be
used to implement the plan. A copy of the work product for
which the grant was provided must be furnished to the board upon
completion, and the board may disseminate it to other local
units of government or interested groups. If the board finds
that the grantee has failed to implement the plan according to
the terms of the agreement, it may require the grantee to repay
all or a portion of the grant. The board shall award grants on
the basis of each qualified applicant's score under the scoring
system in section 465.802. The amount of a grant under this
section shall may not exceed $50,000.
Sec. 10. [465.801] [SERVICE SHARING GRANTS.]
Two or more local units of government; an association of
local governments; a local unit of government acting in
conjunction with the metropolitan council, an organization, or a
state agency; or an organization established by two or more
local units of government under a joint powers agreement may
apply to the board of government innovation and cooperation for
a grant to be used to meet the start-up costs of providing
shared services or functions. Agreements solely to make joint
purchases are not sufficient to qualify under this section. A
copy of the application must be provided by the applicants to
the exclusive representatives certified under section 179A.12 to
represent employees who provide the service or program affected
by the application.
The proposal must include plans fully to integrate a
service or function provided by two or more local government
units. A copy of the work product for which the grant was
provided must be furnished to the board upon completion, and the
board may disseminate it to other local units of government or
interested groups. If the board finds that the grantee has
failed to implement the plan according to the terms of the
agreement, it may require the grantee to repay all or a portion
of the grant. The board shall award grants on the basis of each
qualified applicant's score under the scoring system in section
465.802. The amount of a grant under this section may not
exceed $100,000.
Sec. 11. [465.802] [SCORING SYSTEM.]
In deciding whether to award a grant under section 465.798,
465.799, or 465.801, the board shall use the following scoring
system:
(1) Up to 15 points shall be awarded to reflect the extent
to which the application demonstrates creative thinking, careful
planning, cooperation, involvement of the clients of the
affected service, and commitment to assume risk.
(2) Up to 20 points shall be awarded to reflect the extent
to which the proposed project is likely to improve the quality
of the service and to have benefits for other local governments.
(3) Up to 15 points shall be awarded to reflect the extent
to which the application's budget provides sufficient detail,
maximizes the use of state funds, documents the need for
financial assistance, commits to local financial support, and
limits expenditures to essential activities.
(4) Up to 20 points shall be awarded to reflect the extent
to which the application reflects the statutory goal of the
grant program.
(5) Up to 15 points shall be awarded to reflect the merit
of the proposed project and the extent to which it warrants the
state's financial participation.
(6) Up to five points shall be awarded to reflect the
cost/benefit ratio projected for the proposed project.
(7) Up to five points shall be awarded to reflect the
number of government units participating in the proposal.
(8) Up to five points shall be awarded to reflect the
minimum length of time the application commits to implementation.
Sec. 12. [APPROPRIATION.]
$2,200,000 is appropriated from the general fund to the
board of government innovation and cooperation to implement and
administer the programs of the board in fiscal year 1995.
Sec. 13. [REPEALER.]
Minnesota Statutes 1992, section 465.80, subdivision 3, is
repealed. Minnesota Statutes 1993 Supplement, section 465.80,
subdivisions 1, 2, 4, and 5, are repealed.
ARTICLE 9
LOCAL LAWS
Section 1. Minnesota Statutes 1992, section 466A.02,
subdivision 3, is amended to read:
Subd. 3. [ADDITIONAL AREA ELIGIBLE FOR INCLUSION IN
TARGETED NEIGHBORHOOD.] (a) The city may add to the area
designated as a targeted neighborhood under subdivision 2 a
contiguous area of one-half mile in all directions from the
designated targeted neighborhood.
(b) Assisted housing is also considered a targeted
neighborhood.
(c) A neighborhood that is partially targeted may be
considered wholly targeted.
Sec. 2. Minnesota Statutes 1992, section 469.004,
subdivision 1a, is amended to read:
Subd. 1a. [RAMSEY COUNTY AUTHORITY.] Ramsey county may
exercise the powers of a housing and redevelopment authority.
Before the commencement of a project by Ramsey county acting as
a housing and redevelopment authority, the governing body of the
municipality in which the project is to be located shall, by
majority vote, approve the project as recommended by the
authority. The authority granted to Ramsey county under this
subdivision and subdivision 1 terminates June 30, 1994,
providing that obligations incurred by the county before that
date shall remain in effect according to their terms. A
resolution of the county board may provide that the board will
constitute the county housing and redevelopment authority.
Sec. 3. [469.0775] [MANKATO; PORT AUTHORITY.]
The governing body of the city of Mankato may exercise all
the powers of a port authority provided by sections 469.048 to
469.068, as if the city were a port authority; and the city may
exercise all the powers relating to a port authority granted to
a city by sections 469.048 to 469.068, or other law.
Sec. 4. Laws 1969, chapter 499, section 2, is amended to
read:
Sec. 2. Notwithstanding any provisions of the charter of
the city of Minneapolis, or of any statutory enactments,
the said city may provide for the collection of special charges,
fees or taxes for all or any part of the cost of
(1) any service to streets, sidewalks, or other property,
street oiling, street flushing and cleaning,;
(2) sewer charges;
(3) water charges;
(4) solid waste disposal charges;
(5) any other charges for abatement of nuisance conditions
as defined by the city; and
(6) any and all other services or improvements specified in
said Chapter 429, Minnesota Statutes, section 429.101;
in the same manner as a special assessment against the property
benefitted. The procedure for the levy of said special
assessment shall, if the city elects to proceed under the
provisions of said the service charges may be defined by
ordinance or the city may, at its option, elect the procedure
set forth in Minnesota Statutes, chapter 429, be as provided in
said Chapter 429.
Sec. 5. [BENTON COUNTY; ECONOMIC DEVELOPMENT AUTHORITY;
ESTABLISHMENT AND POWERS.]
Subdivision 1. [ESTABLISHMENT.] The board of county
commissioners of Benton county may establish an economic
development authority in the manner provided in Minnesota
Statutes, sections 469.090 to 469.1081, and may impose limits on
the authority enumerated in Minnesota Statutes, section
469.092. The economic development authority has all of the
powers and duties granted to or imposed upon economic
development authorities under Minnesota Statutes, sections
469.090 to 469.1081. The county economic development authority
may create and define the boundaries of economic development
districts at any place or places within the county, provided
that a project as recommended by the county authority that is to
be located within the corporate limits of a city may not be
commenced without the approval of the governing body of the
city. Minnesota Statutes, section 469.174, subdivision 10, and
the contiguity requirement specified under Minnesota Statutes,
section 469.101, subdivision 1, do not apply to limit the areas
that may be designated as county economic development districts.
Subd. 2. [POWERS.] If an economic development authority is
established as provided in subdivision 1, the county may
exercise all of the powers relating to an economic development
authority granted to a city under Minnesota Statutes, sections
469.090 to 469.1081, or other law, including a tax levy to
support the activities of the authority.
Subd. 3. [LOCAL APPROVAL.] This section is effective the
day after the Benton county board complies with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 6. [SPECIAL SERVICE DISTRICT; CITY OF EAGAN.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the terms defined have the meanings given them.
(b) "City" means the city of Eagan.
(c) "Special services" means:
(1) the promotion and management of a special service
district as a trade or shopping area with the ability to provide
the following special services within the boundaries of the
district to be rendered or contracted for by the city;
(2) signage identifying the overall retail area;
(3) preparation, mowing, maintenance, and repair of
landscaping on public right-of-way;
(4) installation, maintenance, and repair of street and
pedestrian lighting in excess of the city standard;
(5) installation, maintenance, and repair of public parking
facilities;
(6) provision and coordination of public safety services in
excess of the city standard;
(7) repair, maintenance, operation, rerouting, and
replacement of existing public improvements, and those
authorized by Minnesota Statutes, section 429.021, within the
boundaries of the special service district established under
subdivision 2; and
(8) administration, coordination, and preparation of
studies and designs for the defined special services.
Special services do not include services that are ordinarily
provided throughout the city from ordinary revenues of the city
unless an increased level of service is provided in the special
service district.
Subd. 2. [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.] The
governing body of the city of Eagan may adopt ordinances
establishing special service districts. The provisions of
Minnesota Statutes, chapter 428A govern the establishment and
operation of the special service districts in the city.
Subd. 3. [EFFECTIVE DATE; LOCAL APPROVAL.] This section is
effective the day after the governing body of the city of Eagan
complies with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 7. [SPECIAL SERVICE DISTRICT; CITY OF GAYLORD.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the terms defined have the meanings given them.
(b) "City" means the city of Gaylord.
(c) "Special services" means:
(1) the promotion and management of a special service
district as a trade or shopping area;
(2) snow removal services rendered or contracted for by the
city; and
(3) the repair, maintenance, operation, and replacement of
improvements, within the boundaries of a special service
district established under subdivision 2.
Subd. 2. [ESTABLISHMENT OF A SPECIAL SERVICE
DISTRICT.] The governing body of the city of Gaylord may adopt
ordinances establishing special service districts. The
provisions of Minnesota Statutes, chapter 428A, govern the
establishment and operation of special service districts in the
city.
Subd. 3. [LOCAL APPROVAL.] This section is effective the
day after the governing body of the city of Gaylord complies
with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 8. [ITASCA COUNTY CEMETERY ASSOCIATION.]
Subdivision 1. [TAX LEVIES.] Notwithstanding Minnesota
Statutes, section 471.24, each of the following cities or towns
is authorized to levy a tax and make an appropriation not to
exceed $15,000 annually to the Lakeview Cemetery Association,
operated by the town of Iron Range, for cemetery purposes: the
city of Coleraine, the city of Bovey, and each town which is a
member of the cemetery association.
Subd. 2. [EFFECTIVE DATE.] This section is effective for
taxes levied in 1994, payable in 1995, and thereafter.
Sec. 9. [CITY-COUNTY RURAL DEVELOPMENT FINANCE AUTHORITY;
KOOCHICHING COUNTY.]
Subdivision 1. [ESTABLISHMENT.] The Koochiching county
board and any or all of the cities of Koochiching county may, by
adopting a written enabling resolution, establish a city-county
rural development finance authority that, subject to subdivision
2, has the following powers: powers of an economic development
authority under Minnesota Statutes, sections 469.090 to 469.107,
and powers of a rural development financing authority under
Minnesota Statutes, sections 469.142 to 469.151.
Subd. 2. [ECONOMIC DEVELOPMENT AUTHORITY POWERS.] If the
city-county rural development finance authority exercises the
powers of an economic development authority, the county may
exercise all of the powers relating to an economic development
authority granted to a city under Minnesota Statutes, sections
469.090 to 469.108. The levy imposed by the county board under
Minnesota Statutes, section 469.107, may be levied in addition
to levies otherwise authorized by law. The city-county rural
development finance authority may create and define the
boundaries of economic development districts at any place or
places within the county. Minnesota Statutes, section 469.174,
subdivision 10, and the contiguity requirement specified under
Minnesota Statutes, section 469.101, subdivision 1, do not apply
to limit the areas that may be designated as city-county
economic development districts. The authority may acquire real
property from Koochiching county or any other source.
Subd. 3. [LIMIT OF POWERS.] (a) The enabling resolution
may impose the following limits on the actions of the authority:
(1) that the authority may not exercise any of the powers
contained in subdivision 1 unless those powers are specifically
authorized in the enabling resolution; and
(2) any other limitation or control established by the
enabling resolution.
(b) The enabling resolution may be modified at any time,
but may not be applied in a manner that impairs contracts
executed before the modification is made. All modifications to
the enabling resolution must be by written resolution.
(c) Before the commencement of a project by the authority,
the board shall by majority vote of six approve the project.
(d) Any project within a municipality requires approval of
its city council; any project outside the corporate limits of a
municipality shall require the approval of the county board.
(e) The authority may employ the personnel it deems
necessary.
Subd. 4. [BOARD OF DIRECTORS.] (a) The authority consists
of a board of ten directors. The directors shall be appointed
as follows:
(1) one resident each from the cities of Ranier, Big Falls,
and Little Fork appointed by the mayor of the city and confirmed
by the city council;
(2) one resident of either the city of Northome or Mizpah
appointed, as agreed by the mayors of the two cities, and
confirmed by the two city councils;
(3) three members, one of whom must be from the
Birchdale-Loman area and one from the city of International
Falls, appointed by the board of commissioners of Koochiching
county to be confirmed by the entire board, one of whom shall be
designated as chair of the Koochiching development authority
board. The Koochiching county board may appoint one of its
commissioners whose district is not within any portion of the
corporate limits of the city of International Falls to be a
director; and
(4) three residents from the city of International Falls
appointed by the mayor and confirmed by the city council, one of
which may be an elected official.
(b) Any vacancy must be filled in the manner in which the
original appointment was made. A vacancy occurs if a director
no longer meets the residency requirements for a seat. No
director shall be an officer, employee, director, shareholder,
or member of any corporation, firm, or association with which
the authority has entered into any operating lease, or other
agreement. The directors may be removed by the appointing
authority for the reasons and in the manner provided under
Minnesota Statutes, section 469.010. Directors shall have no
personal liability for obligations of the authority or the
methods of enforcement and collection of the obligations.
(c) The directors and employees of the authority shall
receive both travel and per diem expense payments as are allowed
by a vote of 60 percent of the full membership of the
authority's board.
(d) No director of the authority shall simultaneously serve
in an elective public office, except that one of the
appointments by the mayor of the city of International Falls may
be a member of the International Falls city council and one of
the appointments by the Koochiching county board may be a member
of the Koochiching county board whose district is not within any
portion of the corporate limits of the city of International
Falls. Neither of such elected officials shall serve as chair
of the Koochiching city-county rural development finance
authority board.
Subd. 5. [BONDING, OCCUPATION TAX RECEIPTS; ASSETS.] (a)
Notwithstanding Minnesota Statutes, section 469.102, or other
law, authorization to issue general obligation bonds for
economic development purposes must be approved by 80 percent of
the county board, as must all property tax levies that are only
for economic development purposes.
(b) All money received by Koochiching county under
Minnesota Statutes, chapter 298, not otherwise allocated by
statute for a specific purpose must be appropriated by the
county board to the authority established in subdivision 1. The
money must be used for the express purpose of furthering
economic development of Koochiching county as defined by the
Koochiching development authority board.
(c) Assets and obligations held by the authority repealed
by subdivision 6 including, but not limited to, outstanding
loans, buildings, and land must be transferred to the authority
established in subdivision 1 within 90 days of the effective
date of this section.
Subd. 6. [REPEALER.] Laws 1987, chapter 182, is repealed
with the passage of the resolution specified in subdivision 7.
Subd. 7. [EFFECTIVE DATE.] This section is effective upon
approval by the affirmative resolution of the Koochiching county
board.
Sec. 10. [NASHWAUK AREA AMBULANCE DISTRICT.]
Subdivision 1. [AGREEMENT; POWERS; GENERAL
DESCRIPTION.] (a) The cities of Nashwauk, Keewatin, Marble,
Taconite, and Calumet, and the towns of Feely, Goodland, Iron
Range, Greenway, Lone Pine, Lawrence, Nashwauk, Balsam, and
Bearville, may by resolution of their city councils and town
boards establish the Nashwauk area ambulance district. The
district may consist of the territories described as follows:
(1) Feely: Township 54 North, Range 23 West, Sections 1 to
3, 11 to 14, and 24;
(2) Goodland: Township 55 North, Range 22 West;
(3) Iron Range: Township 56 North, Range 24 West, Sections
1 to 4, 9 to 16, 22 to 26, and 36;
(4) Greenway: Township 56 North, Range 23 West;
(5) Lone Pine: Township 56 North, Range 22 West;
(6) Lawrence: Township 57 North, Range 24 West, Sections 1
to 3, 10 to 15, 22 to 27, and 34 to 36;
(7) Nashwauk: Township 57 North, Range 23 West, and
Township 57 North, Range 22 West;
(8) Balsam: Township 58 North, Range 24 West, Sections 1
to 5, 8 to 16, 21 to 24, 27 to 29, and 34 to 36;
(9) Balsam: all of Township 58 North, Range 23 West, that
is organized;
(10) Bearville: Township 60 North, Range 22 West, Sections
1 to 5, and 7 to 36;
(11) Bearville: Township 61 North, Range 22 West, Sections
24 to 26, and 34 to 36;
(12) Township 55 North, Range 23 West, Sections 1 to 17, 21
to 28, and 34 to 36;
(13) Township 58 North, Range 22 West;
(14) all of the east part of Township 58 North, Range 23
West, that is organized;
(15) Township 59 North, Range 22 West;
(16) Township 59 North, Range 23 West, Sections 1 to 5, and
7 to 36;
(17) Township 60 North, Range 23 West, Sections 13, 23 to
27, and 33 to 36; and
(18) Township 59 North, Range 24 West, Sections 13, 14, 22
to 29, and 32 to 36.
(b) The Itasca county board may by resolution provide that
property located in unorganized territories described in
paragraph (a), clauses (12) to (18), or any part of them, may be
included within the district.
(c) The district shall make payments of the proceeds of the
tax authorized in this section to the city of Nashwauk, which
shall provide ambulance services throughout the district and may
exercise all the powers of the cities and towns that relate to
ambulance service anywhere within its territory.
(d) Any other contiguous town or home rule charter or
statutory city may join the district with the agreement of the
cities and towns that comprise the district at the time of its
application to join. Action to join the district may be taken
by the city council or town board of the city or town.
Subd. 2. [BOARD.] The district shall be governed by a
board composed of one member appointed by the city council or
town board of each city and town in the district. A district
board member may, but is not required to, be a member of a city
council or town board. Except as provided in this section,
members shall serve two-year terms ending the first Monday in
January and until their successors are appointed and qualified.
Of the members first appointed, as far as possible, the terms of
one-half shall expire on the first Monday in January in the
first year following appointment and one-half the first Monday
in January in the second year. The terms of those initially
appointed must be determined by lot. If an additional member is
added because an additional city or town joins the district, the
member's term must be fixed so that, as far as possible, the
terms of one-half of all the members expire on the same date.
Subd. 3. [TAX.] The district may impose a property tax on
real and personal property in the district in an amount
sufficient to discharge its operating expenses and debt payable
in each year. The Itasca county auditor and treasurer shall
collect the tax and pay it to the Nashwauk area ambulance
district.
Subd. 4. [PUBLIC INDEBTEDNESS.] The district may incur
debt in the manner provided for a municipality by Minnesota
Statutes, chapter 475, when necessary to accomplish a duty
charged to it.
Subd. 5. [WITHDRAWAL.] Upon two years' notice, a city or
town may withdraw from the district. Its territory shall remain
subject to taxation for debt incurred prior to its withdrawal
pursuant to Minnesota Statutes, chapter 475.
Subd. 6. [EFFECTIVE DATE.] This section is effective in
the cities of Nashwauk, Keewatin, Marble, Taconite, and Calumet,
and the towns of Feely, Goodland, Iron Range, Greenway, Lone
Pine, Lawrence, Nashwauk, Balsam, and Bearville the day after
compliance with Minnesota Statutes, section 645.021, subdivision
3, by the governing body of each. This section is effective for
unorganized territories described in subdivision 1, paragraph
(a), clauses (12) to (18), the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the
Itasca county board.
Sec. 11. [TWO HARBORS LODGING TAX.]
Notwithstanding Minnesota Statutes, section 477A.016, or
other law, in addition to a tax authorized in Minnesota
Statutes, section 469.190, the city of Two Harbors may impose,
by ordinance, a tax of up to one percent on the gross receipts
subject to the lodging tax under Minnesota Statutes, section
469.190. The proceeds of the tax shall be dedicated and used to
provide preservation, display, and interpretation of the tug
boat Edna G. The total tax imposed by the city under this
section and under Minnesota Statutes, section 469.190, shall not
exceed three percent.
Sec. 12. [MAHNOMEN COUNTY BONDING.]
Subdivision 1. [AUTHORIZATION; PURPOSES.] The county of
Mahnomen may issue its general obligation bonds in a principal
amount not to exceed $800,000 to (1) fund or refund certain
existing warrants and loans of the county incurred in connection
with its ownership and operation of the Mahnomen County and
Village Hospital, Nursing Home, and Clinic, and (2) provide
working capital for the Mahnomen County and Village Hospital,
Nursing Home, and Clinic.
Subd. 2. [EXISTING LAW.] The bonds shall be issued
according to Minnesota Statutes, chapter 475, except that (1)
the bonds shall not constitute net debt within the meaning of
Minnesota Statutes, section 475.53, or a debt of the county
within the meaning of any other statutory provision, and (2)
Minnesota Statutes, section 475.58, does not apply.
Subd. 3. [EFFECTIVE DATE.] This section is effective the
day following final enactment, upon compliance by the Mahnomen
county board with Minnesota Statutes, section 645.021.
Sec. 13. [CITY OF LAKE CRYSTAL; TIF DISTRICT.]
Subdivision 1. [DURATION.] Notwithstanding the provisions
of Minnesota Statutes, section 469.176, subdivisions 1 and 1b,
the authority may extend the duration of city of Lake Crystal
tax increment financing district No. 2-1 through December 31,
2018.
Subd. 2. [EFFECTIVE DATE.] This section is effective upon
compliance by the governing body of the city of Lake Crystal
with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 14. [BROOKLYN CENTER; REDEVELOPMENT DISTRICT.]
Subdivision 1. [ESTABLISHMENT.] The city of Brooklyn
Center may establish an redevelopment tax increment financing
district in which 15 percent of the revenues generated from tax
increment in any year is deposited in the housing development
account of the authority and expended according to the tax
increment financing plan.
Subd. 2. [ELIGIBLE ACTIVITIES.] The authority must
identify in the plan the housing activities that will be
assisted by the housing development account. Housing activities
may include rehabilitation, acquisition, demolition, and
financing of new or existing single family or multifamily
housing. Housing activities listed in the plan need not be
located within the district or project area but must be
activities that meet the requirements of a qualified housing
district under Minnesota Statutes, section 273.1399 or 469.1761,
subdivision 2.
Subd. 3. [HOUSING ACCOUNT.] Tax increment to be expended
for housing activities under this section must be segregated by
the authority into a special account on its official books and
records. The account may also receive funds from other public
and private sources.
Subd. 4. [EXEMPTION.] The district established under this
section is exempt from the provisions of Minnesota Statutes,
section 273.1399.
Subd. 5. [LOCAL APPROVAL.] This section is effective upon
approval by the governing body of the city of Brooklyn Center
under Minnesota Statutes, section 645.021, subdivision 2.
Sec. 15. [CITY OF MINNEAPOLIS; SEWARD SOUTH URBAN RENEWAL
AREA.]
The Minneapolis community development agency may establish
an economic development tax increment financing district under
Minnesota Statutes, sections 469.174 to 469.178, for the
retention and expansion of a private educational campus located
within a certain area of Seward South urban renewal area which
was incorporated into the urban renewal area pursuant to a
modification no. 9 which was adopted by the city of Minneapolis
as of April 12, 1985. The district established under this
section is not subject to the limitations of Minnesota Statutes,
section 469.176, subdivision 4c. The proceeds of the levy by
Hennepin county on captured net tax capacity within the district
established under this section will be paid to Hennepin county
unless the Hennepin county board approves the implementation of
tax increment financing with respect to the county's levy within
and for the purposes of the district.
Sec. 16. [CITY OF MINNEAPOLIS; NORTH WASHINGTON INDUSTRIAL
PARK REDEVELOPMENT PROJECT.]
(a) A hazardous substance subdistrict may be established by
the Minneapolis community development agency and the city of
Minneapolis within the North Washington industrial park
redevelopment project in the city of Minneapolis. The district
would be subject to the provisions of this section.
(b) In addition to the uses of tax increment revenues
authorized in Minnesota Statutes, section 469.176, subdivision
4e, the city of Minneapolis or the Minneapolis community
development agency may use tax increment revenues derived from
the hazardous substance subdistrict to acquire property within
the hazardous substance subdistrict.
(c) At any time on or after approval of the tax increment
financing plan for the hazardous substance subdistrict, the
Minneapolis community development agency may elect to designate
any tax increment revenues from the hazardous substance
subdistrict to be tax increment revenues generated solely from
the hazardous substance subdistrict. This paragraph does not
allow extension of the duration of the redevelopment project
under Minnesota Statutes, section 469.176, subdivision 1c, or
the use of revenues derived from increment from the project
after April 1, 2001, except as provided under Minnesota
Statutes, section 469.176, subdivision 1c, and by other general
law.
(d) A parcel described in the tax increment financing plan
or plan amendment may be designated and certified for inclusion
in the hazardous substance subdistrict without approval of a
development action response plan.
(e) Minnesota Statutes, section 273.1399, does not apply to
the hazardous substance subdistrict.
Sec. 17. [SOUTH ST. PAUL; TAX INCREMENT FINANCING.]
Subdivision 1. [DISTRICT EXTENSION.] Notwithstanding
Minnesota Statutes, section 469.176, subdivision 1c, the housing
and redevelopment authority may collect and expend tax increment
from the Concord Street redevelopment tax increment financing
district, located within the city of South St. Paul, after April
1, 2001, for eligible activities within the redevelopment area.
The authority under this section expires December 31, 2006.
Subd. 2. [LOCAL APPROVAL.] This section is effective upon
compliance by the South St. Paul city council with Minnesota
Statutes, section 645.021, subdivision 2.
Sec. 18. [CITY OF DAWSON; TAX INCREMENT FINANCING
DISTRICT.]
Subdivision 1. [DISTRICT EXTENSION.] Notwithstanding the
provisions of Minnesota Statutes, section 469.176, subdivision
1b, and Laws 1991, chapter 291, article 10, sections 22 and 23,
the authority may extend the duration of city of Dawson tax
increment financing district number four for up to ten years
from the effective date of this section. The duration of
district number four may not exceed eight years after the
receipt by the authority of the first tax increment. The
authority may waive the receipt of the tax increment for any
year.
Subd. 2. [LOCAL APPROVAL.] This section is effective upon
compliance by the governing body of the city of Dawson with
Minnesota Statutes, section 645.021, subdivision 2.
Sec. 19. [CITY OF FERGUS FALLS; ECONOMIC DEVELOPMENT.]
Subdivision 1. [TAX INCREMENT FINANCING.] The Fergus Falls
port authority may establish an economic development tax
increment financing district in Industrial Authority Areas I-1
and I-2 for industrial and manufacturing projects. The district
is established under and subject to Minnesota Statutes, sections
469.174 to 469.178, except:
(1) Minnesota Statutes, section 273.1399, does not apply;
(2) The city must pay at least ten percent of the project
costs from its general fund, property tax levy, or other
unrestricted money (other than tax increments);
(3) The authority may not establish the tax increment
financing district under this section unless the tax increment
financing plan is approved by resolution of the governing body
of Otter Tail county;
(4) The duration limit for the district is 14 years after
receipt of the first increment and the authority may elect to
waive receipt of the first year of increment.
Subd. 2. [LOCAL APPROVAL.] This section is effective upon
compliance by the governing body of the city of Fergus Falls
with Minnesota Statutes, section 645.021, subdivision 2.
Sec. 20. [BROOKLYN PARK; ECONOMIC DEVELOPMENT DISTRICT.]
Subdivision 1. [ESTABLISHMENT.] The city of Brooklyn Park
may establish an economic development tax increment financing
district in which 15 percent of the revenue generated from tax
increment in any year is deposited in the housing development
account of the authority and expended according to the tax
increment financing plan.
Subd. 2. [ELIGIBLE ACTIVITIES.] The authority must
identify in the plan the housing activities that will be
assisted by the housing development account. Housing activities
may include rehabilitation, acquisition, demolition, and
financing of new or existing single family or multifamily
housing. Housing activities listed in the plan need not be
located within the district or project area but must be
activities that meet the requirements of a qualified housing
district under Minnesota Statutes, section 273.1399 or 469.1761,
subdivision 2.
Subd. 3. [HOUSING ACCOUNT.] Tax increment to be expended
for housing activities under this section must be segregated by
the authority into a special account on its official books and
records. The account may also receive funds from other public
and private sources.
Subd. 4. [EXEMPTION.] The district established under this
act is exempt from the provisions of Minnesota Statutes, section
273.1399.
Sec. 21. [CITY OF PARK RAPIDS; ECONOMIC DEVELOPMENT.]
Subdivision 1. [TAX INCREMENT DISTRICT.] The city of Park
Rapids may establish an economic development tax increment
financing district under and subject to Minnesota Statutes,
sections 469.174 to 469.178, except that:
(1) Minnesota Statutes, section 273.1399, does not apply to
that district; and
(2) the city must pay at least five percent of the project
costs from its general fund, a property tax levy, or other
unrestricted money (other than tax increments).
Subd. 2. [LOCAL APPROVAL.] This section is effective the
day after compliance by the governing body of the city of Park
Rapids with Minnesota Statutes, section 645.021, subdivision 2.
Sec. 22. [HOPKINS HOUSING IMPROVEMENT AREA; DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] As used in sections 22 to
31, the terms defined in this section have the meanings given
them.
Subd. 2. [CITY.] "City" means the city of Hopkins.
Subd. 3. [ENABLING ORDINANCE.] "Enabling ordinance" means
the ordinance adopted by the city council establishing the
housing improvement area.
Subd. 4. [HOUSING IMPROVEMENTS.] "Housing improvements"
has the meaning given in the city's enabling ordinance. Housing
improvements may include improvements to common elements of a
condominium.
Subd. 5. [HOUSING IMPROVEMENT AREA.] "Housing improvement
area" means a defined area within the city where housing
improvements are made or constructed and the costs of the
improvements are paid in whole or in part from fees imposed
within the area.
Subd. 6. [HOUSING UNIT.] "Housing unit" means real
property and improvements thereon consisting of a one-dwelling
unit, or an apartment as described in Minnesota Statutes,
chapter 515 or 515A, that is occupied by a person or family for
use as a residence.
Sec. 23. [PETITION REQUIRED.]
No action may be taken under sections 24 and 25 unless
owners of 25 percent or more of the housing units that would be
subject to fees in the proposed housing improvement area file a
petition requesting a public hearing on the proposed action with
the city clerk. No action may be taken under section 25 to
impose a fee unless owners of 25 percent or more of the housing
units subject to the proposed fee file a petition requesting a
public hearing on the proposed fee with the city clerk.
Sec. 24. [ESTABLISHMENT OF HOUSING IMPROVEMENT AREA.]
Subdivision 1. [ORDINANCE.] The governing body of the city
may adopt an ordinance establishing a housing improvement area.
The ordinance must specifically describe the portion of the city
to be included in the area, the basis for the imposition of the
fees, and the number of years the fee will be in effect. In
addition, the ordinance must include findings that without the
housing improvement area, the proposed improvements could not be
made by the condominium associations or housing unit owners, and
the designation is needed to maintain and preserve the housing
units within the housing improvement area. The ordinance may
not be adopted until a public hearing has been held regarding
the ordinance. The ordinance may be amended by the governing
body of the city, provided the governing body complies with the
public hearing notice provisions of subdivision 2.
Subd. 2. [PUBLIC HEARING.] The notice of public hearing
must include the time and place of hearing, a map showing the
boundaries of the proposed area, and a statement that all
persons owning housing units in the proposed area that would be
subject to a fee for housing improvements will be given an
opportunity to be heard at the hearing. Notice of the hearing
must be given by publication in the official newspaper of the
city. The public hearing must be held at least seven days after
the publication. Not less than ten days before the hearing,
notice must also be mailed to the owner of each housing unit
within the proposed area. For the purpose of giving mailed
notice, owners are those shown on the records of the county
auditor. Other records may be used to supply the necessary
information. At the public hearing a person owning property in
the proposed housing improvement area may testify on any issues
relevant to the proposed area. The hearing may be adjourned
from time to time. The ordinance establishing the area may be
adopted at any time within six months after the date of the
conclusion of the hearing by a vote of the majority of the
governing body of the city.
Subd. 3. [PROPOSED HOUSING IMPROVEMENTS.] At the public
hearing held under subdivision 2, the city shall provide a
preliminary listing of the housing improvements to be made in
the area. The listing shall identify those improvements, if
any, that are proposed to be made to all or a portion of the
common elements of a condominium. The listing shall also
identify those housing units that have completed the proposed
housing improvements and are proposed to be exempted from a
portion of the fee. In preparing the list the city shall
consult with the residents of the area and the condominium
associations.
Subd. 4. [BENEFIT; OBJECTION.] Before the ordinance is
adopted or at the hearing at which it is to be adopted, the
owner of a housing unit in the proposed housing improvement area
may file a written objection with the city clerk asserting that
the owner's property should not be included in the area or
should not be subjected to a fee and objecting to the inclusion
of the housing unit in the area, for the reason that the
property would not benefit from the improvements.
The governing body shall make a determination of the
objection within 60 days of its filing. Pending its
determination, the governing body may delay adoption of the
ordinance or it may adopt the ordinance with a reservation that
the landowner's property may be excluded from the housing
improvement area or fee when the determination is made.
Subd. 5. [APPEAL TO DISTRICT COURT.] Within 30 days after
the determination of the objection, any person aggrieved, who is
not precluded by failure to object before or at the hearing, or
whose failure to object is due to a reasonable cause, may appeal
to the district court by serving a notice upon the mayor or city
clerk. The notice shall be filed with the court administrator
of the district court within ten days after its service. The
city clerk shall furnish the appellant a certified copy of the
findings and determination of the governing body. The court may
affirm the action objected to or, if the appellant's objections
have merit, modify or cancel it. If the appellant does not
prevail upon the appeal, the costs incurred are taxed to the
appellant by the court and judgment entered for them. All
objections are deemed waived unless presented on appeal.
Sec. 25. [IMPROVEMENT FEES AUTHORITY; NOTICE AND HEARING.]
Subdivision 1. [AUTHORITY.] Fees may be imposed by the
city on the housing units within the housing improvement area at
a rate, term, or amount sufficient to produce revenue required
to provide housing improvements in the area. The fee can be
imposed on the basis of the tax capacity of the housing unit, or
the total amount of square footage of the housing unit, or a
method determined by the council and specified in the resolution.
Before the imposition of the fees, a hearing must be held and
notice must be published in the official newspaper at least
seven days before the hearing and shall be mailed at least seven
days before the hearing to any housing unit owner subject to a
fee. For purposes of this section, the notice must also include:
(1) a statement that all interested persons will be given
an opportunity to be heard at the hearing regarding a proposed
housing improvement fee;
(2) the estimated cost of improvements including
administrative costs to be paid for in whole or in part by the
fee imposed under the ordinance;
(3) the amount to be charged against the particular
property;
(4) the right of the property owner to prepay the entire
fee;
(5) the number of years the fee will be in effect; and
(6) a statement that the petition requirements of section
23 have either been met or do not apply to the proposed fee;
Within six months of the public hearing, the city may adopt
a resolution imposing a fee within the area not exceeding the
amount expressed in the notice issued under this section.
Prior to adoption of the resolution approving the fee, the
condominium associations located in the housing improvement area
shall submit to the city a financial plan prepared by an
independent third party, acceptable to the city and
associations, that provides for the associations to finance
maintenance and operation of the common elements in the
condominium and a long-range plan to conduct and finance capital
improvements.
Subd. 2. [LEVY LIMIT.] Fees imposed under this section are
not included in the calculation of levies or limits on levies
imposed under any law or charter.
Sec. 26. [COLLECTION OF FEES.]
The city may provide for the collection of the housing
improvement fees according to the terms of Minnesota Statutes,
section 428A.05.
Sec. 27. [BONDS.]
At any time after a contract for the construction of all or
part of an improvement authorized under sections 22 to 31 has
been entered into or the work has been ordered, the governing
body of the city may issue obligations in the amount it deems
necessary to defray in whole or in part the expense incurred and
estimated to be incurred in making the improvement, including
every item of cost from inception to completion and all fees and
expenses incurred in connection with the improvement or the
financing.
The obligations are payable primarily out of the proceeds
of the fees imposed under section 25, or from any other special
assessments or revenues available to be pledged for their
payment under charter or statutory authority, or from two or
more of those sources. The governing body may, by resolution
adopted prior to the sale of obligations, pledge the full faith,
credit, and taxing power of the city to assure payment of the
principal and interest if the proceeds of the fees in the area
are insufficient to pay the principal and interest. The
obligations must be issued in accordance with Minnesota
Statutes, chapter 475, except that an election is not required,
and the amount of the obligations are not included in
determination of the net debt of the city under the provisions
of any law or charter limiting debt.
Sec. 28. [ADVISORY BOARD.]
The governing body of the city may create and appoint an
advisory board for the housing improvement area in the city to
advise the governing body in connection with the planning and
construction of housing improvements. In appointing the board,
the council shall consider for membership, members of
condominium associations located in the housing improvement
area. The advisory board shall make recommendations to the
governing body to provide improvements or impose fees within the
housing improvement area. Before the adoption of a proposal by
the governing body to provide improvements within the housing
improvement area, the advisory board of the housing improvement
area shall have an opportunity to review and comment upon the
proposal.
Sec. 29. [VETO POWERS OF OWNERS.]
Subdivision 1. [NOTICE OF RIGHT TO FILE OBJECTIONS.] The
effective date of any ordinance or resolution adopted under
sections 24 and 25 must be at least 45 days after it is adopted.
Within five days after adoption of the ordinance or resolution,
a summary of the ordinance or resolution shall be mailed to the
owner of each housing unit included in the housing improvement
area. The mailing shall include a notice that owners subject to
a fee have a right to veto the ordinance or resolution by filing
the required number of objections with the city clerk before the
effective date of the ordinance or resolution and that a copy of
the ordinance or resolution is on file with the city clerk for
public inspection.
Subd. 2. [REQUIREMENTS FOR VETO.] If owners of 35 percent
or more of the housing units in the area subject to the fee file
an objection to the ordinance adopted by the city under section
24 with the city clerk before the effective date of the
ordinance, the ordinance does not become effective. If owners
of 35 percent or more of the housing units' tax capacity subject
to the fee under section 25 file an objection with the city
clerk before the effective date of the resolution, the
resolution does not become effective.
Sec. 30. [ANNUAL REPORTS.]
Each condominium association located within the housing
improvement area must, by August 15 annually, submit a copy of
its audited financial statements to the city. The city may
also, as part of the enabling ordinance, require the submission
of other relevant information from the associations.
Sec. 31. [SPECIAL ASSESSMENTS.]
Within a housing improvement area, the governing body of
the city may, in addition to the fee authorized in section 25,
special assess housing improvements to benefited property. The
governing body of the city may by ordinance adopt regulations
consistent with this section.
Sec. 32. [RED WING TAX INCREMENT DISTRICT.]
Notwithstanding any restrictions otherwise applicable
pursuant to Minnesota Statutes, section 469.176, subdivision 1c,
the duration of the two city tax increment financing districts
within Development Districts I and II, located within the city
of Red Wing, may be extended by resolution of the Red Wing City
Council to August 1, 2009.
Sec. 33. [LOCAL APPROVAL.]
Section 3 is effective the day after the governing body of
the city of Mankato complies with section 645.021, subdivision 3.
ARTICLE 10
CROSS LAKE AREA WATER AND SEWER BOARD
Section 1. [DEFINITIONS.]
Subdivision 1. For the purposes of this article, the terms
defined in this section have the meanings given them.
Subd. 2. "Cross Lake area water and sanitary sewer
district" and "district" mean the area over which the Cross Lake
area water and sanitary sewer board has jurisdiction, including
the towns of Pokegama and Chengwatana and Pine City in Pine
county, but only that part within 1,000 feet of the high
waterline of Cross Lake in those townships.
Subd. 3. "Water and sanitary sewer board" or "board" means
the Cross Lake area water and sanitary sewer board established
for the district as provided in subdivision 2.
Subd. 4. "Person" means an individual, partnership,
corporation, limited liability company, cooperative, or other
organization or entity, public or private.
Subd. 5. "Local governmental unit" or "governmental unit"
means the towns of Pokegama, Chengwatana, and Pine City.
Subd. 6. "Acquisition" and "betterment" have the meanings
given in Minnesota Statutes, chapter 475.
Subd. 7. "Agency" means the Minnesota pollution control
agency created in Minnesota Statutes, chapter 116.
Subd. 8. "Sewage" means all liquid or water-carried waste
products from whatever sources derived, together with any
groundwater infiltration and surface water as may be present.
Subd. 9. "Pollution of water" and "sewer system" have the
meanings given in Minnesota Statutes, section 115.01.
Subd. 10. "Treatment works" and "disposal system" have the
meanings given in Minnesota Statutes, section 115.01.
Subd. 11. "Interceptor" means a sewer and its necessary
appurtenances, including but not limited to mains, pumping
stations, and sewage flow-regulating and -measuring stations,
that is:
(1) designed for or used to conduct sewage originating in
more than one local governmental unit;
(2) designed or used to conduct all or substantially all
the sewage originating in a single local governmental unit from
a point of collection in that unit to an interceptor or
treatment works outside that unit; or
(3) determined by the board to be a major collector of
sewage used or designed to serve a substantial area in the
district.
Subd. 12. "District disposal system" means any and all
interceptors or treatment works owned, constructed, or operated
by the board unless designated by the board as local water and
sanitary sewer facilities.
Subd. 13. "Municipality" means any home rule charter or
statutory city or town.
Subd. 14. "Total costs of acquisition and betterment" and
"costs of acquisition and betterment" mean all acquisition and
betterment expenses permitted to be financed out of stopped bond
proceeds issued in accordance with section 13, whether or not
the expenses are in fact financed out of the bond proceeds.
Subd. 15. "Current costs of acquisition, betterment, and
debt service" means interest and principal estimated to be due
during the budget year on bonds issued to finance said
acquisition and betterment and all other costs of acquisition
and betterment estimated to be paid during the year from funds
other than bond proceeds and federal or state grants.
Subd. 16. [RESIDENT.] "Resident" means the owner of a
dwelling located in the district and receiving water or sewer
service.
Sec. 2. [WATER AND SANITARY SEWER BOARD.]
Subdivision 1. [ESTABLISHMENT.] A water and sewer district
is established for the towns of Pokegama, Chengwatana, and Pine
City in Pine county, to be known as the Cross Lake area water
and sanitary sewer district. The water and sewer district is
under the control and management of the Cross Lake area water
and sanitary sewer board. The board is established as a public
corporation and political subdivision of the state with
perpetual succession and all the rights, powers, privileges,
immunities, and duties that may be validly granted to or imposed
upon a municipal corporation, as provided in this article.
Subd. 2. [MEMBERS AND SELECTION.] The board is composed of
seven members selected as follows: the town boards of the
governmental units each shall meet to appoint two members of the
water and sanitary sewer board and each board member has one
vote. One member must be selected by the city of Pine City.
The first terms must be as follows: two for one year, two for
two years, and three for three years, fixed by lot at the
district's first meeting. Thereafter, all terms are for three
years.
Subd. 3. [TIME LIMITS FOR SELECTION.] The board members
must be selected as provided in subdivision 2 within 60 days
after this article becomes effective. The successor to each
board member must be selected at any time within 60 days before
the expiration of the member's term in the same manner as the
predecessor was selected. A vacancy on the board must be filled
within 60 days after it occurs.
Subd. 4. [VACANCIES.] If the office of a board member
becomes vacant, the vacancy must be filled for the unexpired
term in the manner provided for selection of the member who
vacated the office. The office is deemed vacant under the
conditions specified in Minnesota Statutes, section 351.02.
Subd. 5. [REMOVAL.] A board member may be removed by the
unanimous vote of the governing body appointing the member, with
or without cause, or for malfeasance or nonfeasance in the
performance of official duties as provided by Minnesota
Statutes, sections 351.14 to 351.23.
Subd. 6. [QUALIFICATIONS.] One board member representing a
town must be a resident of the district and the other member
representing that town must be a resident of the township, and
each may, but need not be, an elected public official.
Subd. 7. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A
certificate of selection of every board member selected under
subdivision 2 stating the term for which selected, must be made
by the respective town clerks. The certificates, with the
approval appended by other authority, if required, must be filed
with the secretary of state. Counterparts thereof must be
furnished to the board member and the secretary of the board.
Each member shall qualify by taking and subscribing the oath of
office prescribed by the Minnesota Constitution, article 5,
section 8. The oath, duly certified by the official
administering the same, must be filed with the secretary of
state and the secretary of the board.
Subd. 8. [BOARD MEMBERS' COMPENSATION.] Each board member,
except the chair, must be paid a per diem compensation of $35
for meetings and for other services as are specifically
authorized by the board, not to exceed $1,000 in any one year.
The chair must be paid a per diem compensation of $45 for
meetings and for other services specifically authorized by the
board, not to exceed $1,500 in any one year. All members of the
board must be reimbursed for all reasonable and necessary
expenses actually incurred in the performance of duties.
Sec. 3. [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION
OF BOARD.]
Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS;
SEAL.] After the selection and qualification of all board
members, they shall meet to organize the board at the call of
any two board members, upon seven days' notice by registered
mail to the remaining board members, at a time and place within
the district specified in the notice. A majority of the members
shall constitute a quorum at that meeting and all other meetings
of the board, but a lesser number may meet and adjourn from time
to time and compel the attendance of absent members. At the
first meeting the board shall select its officers and conduct
other organizational business as may be necessary. Thereafter
the board shall meet regularly at the time and place that the
board designates by resolution. Special meetings may be held at
any time upon call of the chair or any two members, upon written
notice sent by mail to each member at least three days before
the meeting, or upon other notice as the board by resolution may
provide, or without notice if each member is present or files
with the secretary a written consent to the meeting either
before or after the meeting. Except as otherwise provided in
this article, any action within the authority of the board may
be taken by the affirmative vote of a majority of the board and
may be taken by regular or adjourned regular meeting or at a
duly held special meeting, but in any case only if a quorum is
present. Meetings of the board must be open to the public. The
board may adopt a seal, which must be officially and judicially
noticed, to authenticate instruments executed by its authority,
but omission of the seal does not affect the validity of any
instrument.
Subd. 2. [CHAIR.] The board shall elect a chair from its
membership. The term of the first chair of the board shall
expire on January 1, 1996, and the terms of successor chairs
expire on January 1 of each succeeding year. The chair shall
preside at all meetings of the board, if present, and shall
perform all other duties and functions usually incumbent upon
such an officer, and all administrative functions assigned to
the chair by the board. The board shall elect a vice-chair from
its membership to act for the chair during temporary absence or
disability.
Subd. 3. [SECRETARY AND TREASURER.] The board shall select
a person or persons who may, but need not be, a member or
members of the board, to act as its secretary and treasurer.
The secretary and treasurer shall hold office at the pleasure of
the board, subject to the terms of any contract of employment
that the board may enter into with the secretary or treasurer.
The secretary shall record the minutes of all meetings of the
board, and be the custodian of all books and records of the
board except those that the board entrusts to the custody of a
designated employee. The treasurer is the custodian of all
money received by the board except as the board otherwise
entrusts to the custody of a designated employee. The board may
appoint a deputy to perform any and all functions of either the
secretary or the treasurer. No secretary or treasurer who is
not a member of the board or a deputy of either shall have any
right to vote.
Subd. 4. [EXECUTIVE DIRECTOR.] The board shall appoint an
executive director, selected solely upon the basis of training,
experience, and other qualifications and who shall serve at the
pleasure of the board and at a compensation to be determined by
the board. The executive director need not be a resident of the
district. The executive director may also be selected by the
board to serve as either secretary or treasurer, or both, of the
board. The executive director shall attend all meetings of the
board, but shall not vote, and shall have the following powers
and duties:
(1) to see that all resolutions, rules, regulations, or
orders of the board are enforced;
(2) to appoint and remove, upon the basis of merit and
fitness, all subordinate officers and regular employees of the
board except the secretary and the treasurer and their deputies;
(3) to present to the board plans, studies, and other
reports prepared for board purposes and recommend to the board
for adoption the measures the executive director deems necessary
to enforce or carry out the powers and the duties of the board,
or the efficient administration of the affairs of the board;
(4) to keep the board fully advised as to its financial
condition, and to prepare and submit to the board and to the
governing bodies of the local governmental units, the board's
annual budget and other financial information the board may
request;
(5) to recommend to the board for adoption rules and
regulations the executive director deems necessary for the
efficient operation of the district disposal system; and
(6) to perform other duties prescribed by the board.
Subd. 5. [PUBLIC EMPLOYEES.] The executive director and
other persons employed by the district are public employees and
have all the rights and duties conferred on public employees
under Minnesota Statutes, sections 179A.01 to 179A.25. The
board may elect to have employees become members of either the
public employees retirement association or the Minnesota state
retirement system. The compensation and conditions of
employment of the employees must be governed by rules applicable
to state employees in the classified service and to the
provisions of Minnesota Statutes, chapter 15A.
Subd. 6. [PROCEDURES.] The board shall adopt resolutions
or bylaws establishing procedures for board action, personnel
administration, keeping records, approving claims, authorizing
or making disbursements, safekeeping funds, and auditing all
financial operations of the board.
Subd. 7. [SURETY BONDS AND INSURANCE.] The board may
procure surety bonds for its officers and employees, in amounts
deemed necessary to ensure proper performance of their duties
and proper accounting for funds in their custody. It may
procure insurance against risks to property and liability of the
board and its officers, agents, and employees for personal
injuries or death and property damage and destruction, in
amounts deemed necessary or desirable, with the force and effect
stated in Minnesota Statutes, chapter 466.
Sec. 4. [GENERAL POWERS OF BOARD.]
Subdivision 1. [SCOPE.] The board has all powers necessary
or convenient to discharge the duties imposed upon it by law.
The powers include those specified in this section, but the
express grant or enumeration of powers does not limit the
generality or scope of the grant of powers contained in this
subdivision.
Subd. 2. [SUIT.] The board may sue or be sued.
Subd. 3. [CONTRACT.] The board may enter into any contract
necessary or proper for the exercise of its powers or the
accomplishment of its purposes.
Subd. 4. [RULEMAKING.] The board may adopt rules relating
to its responsibilities and may provide penalties for their
violation, not exceeding the maximum that may be specified for a
misdemeanor, and the cost of prosecution may be added to the
penalties imposed. Any rule prescribing a penalty for violation
must be published at least once in a newspaper having general
circulation in the district. The violations may be prosecuted
before any court in the district having jurisdiction of
misdemeanors, and every court having misdemeanor jurisdiction
has jurisdiction of the violations. Any constable or other
peace officer of any governmental unit in the district may make
arrests for violations committed anywhere in the district in
like manner and with like effect as for violations of city
ordinances or for statutory misdemeanors. Fines collected in
cases arising under this subdivision must be deposited in the
treasury of the board, or may be allocated between the board and
the governmental unit in which the prosecution occurs on a basis
as the board and the governmental unit agree.
Subd. 5. [GIFTS, GRANTS, LOANS.] The board may accept
gifts, apply for and accept grants or loans of money or other
property from the United States, the state, or any person for
any of its purposes, enter into any agreement required in
connection with them, and hold, use, and dispose of the money or
property in accordance with the terms of the gift, grant, loan,
or agreement relating to it. With respect to loans or grants of
funds or real or personal property or other assistance from any
state or federal government or its agency or instrumentality,
the board may contract to do and perform all acts and things
required as a condition or consideration for the gift, grant, or
loan pursuant to state or federal law or regulations, whether or
not included among the powers expressly granted to the board in
this article.
Subd. 6. [COOPERATIVE ACTION.] The board may act under
Minnesota Statutes, section 471.59, or any other appropriate law
providing for joint or cooperative action between governmental
units.
Subd. 7. [STUDIES AND INVESTIGATIONS.] The board may
conduct research studies and programs, collect and analyze data,
prepare reports, maps, charts, and tables, and conduct all
necessary hearings and investigations in connection with the
design, construction, and operation of the district disposal
system.
Subd. 8. [EMPLOYEES, TERMS.] The board may employ on terms
it deems advisable, persons or firms performing engineering,
legal, or other services of a professional nature; require any
employee to obtain and file with it an individual bond or
fidelity insurance policy; and procure insurance in amounts it
deems necessary against liability of the board or its officers
or both, for personal injury or death and property damage or
destruction, with the force and effect stated in Minnesota
Statutes, chapter 466, and against risks of damage to or
destruction of any of its facilities, equipment, or other
property as it deems necessary.
Subd. 9. [PROPERTY RIGHTS, POWERS.] The board may acquire
by purchase, lease, condemnation, gift, or grant, any real or
personal property including positive and negative easements and
water and air rights, and it may construct, enlarge, improve,
replace, repair, maintain, and operate any interceptor,
treatment works, or water facility determined to be necessary or
convenient for the collection and disposal of sewage in the
district. Any local governmental unit and the commissioners of
transportation and natural resources are authorized to convey to
or permit the use of any of the above-mentioned facilities owned
or controlled by it, by the board, subject to the rights of the
holders of any bonds issued with respect to those facilities,
with or without compensation, without an election or approval by
any other governmental unit or agency. All powers conferred by
this subdivision may be exercised both within or without the
district as may be necessary for the exercise by the board of
its powers or the accomplishment of its purposes. The board may
hold, lease, convey, or otherwise dispose of the above-mentioned
property for its purposes upon the terms and in the manner it
deems advisable. Unless otherwise provided, the right to
acquire lands and property rights by condemnation may be
exercised only in accordance with Minnesota Statutes, sections
117.011 to 117.232, and shall apply to any property or interest
in the property owned by any local governmental unit. No
property devoted to an actual public use at the time, or held to
be devoted to such a use within a reasonable time, shall be so
acquired unless a court of competent jurisdiction determines
that the use proposed by the board is paramount to the existing
use. Except in the case of property in actual public use, the
board may take possession of any property on which condemnation
proceedings have been commenced at any time after the issuance
of a court order appointing commissioners for its condemnation.
Subd. 10. [RELATIONSHIP TO OTHER PROPERTIES.] The board
may construct or maintain its systems or facilities in, along,
on, under, over, or through public waters, streets, bridges,
viaducts, and other public rights-of-way without first obtaining
a franchise from a county or municipality having jurisdiction
over them. However, the facilities must be constructed and
maintained in accordance with the ordinances and resolutions of
the county or municipality relating to constructing, installing,
and maintaining similar facilities on public properties and must
not unnecessarily obstruct the public use of those rights-of-way.
Subd. 11. [DISPOSAL OF PROPERTY.] The board may sell,
lease, or otherwise dispose of any real or personal property
acquired by it which is no longer required for accomplishment of
its purposes. The property may be sold in the manner provided
by Minnesota Statutes, section 469.065, insofar as practical.
The board may give notice of sale as it deems appropriate. When
the board determines that any property or any part of the
district disposal system acquired from a local governmental unit
without compensation is no longer required but is required as a
local facility by the governmental unit from which it was
acquired, the board may by resolution transfer it to that
governmental unit.
Subd. 12. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The
board may contract with the United States or any agency thereof,
any state or agency thereof, or any regional public planning
body in the state with jurisdiction over any part of the
district, or any other municipal or public corporation, or
governmental subdivision or agency or political subdivision in
any state, for the joint use of any facility owned by the board
or such entity, for the operation by that entity of any system
or facility of the board, or for the performance on the board's
behalf of any service, including but not limited to planning, on
terms as may be agreed upon by the contracting parties. Unless
designated by the board as a local water and sanitary sewer
facility, any treatment works or interceptor jointly used, or
operated on behalf of the board, as provided in this
subdivision, is deemed to be operated by the board for purposes
of including those facilities in the district disposal system.
Sec. 5. [COMPREHENSIVE PLAN.]
Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall
adopt a comprehensive plan for the collection, treatment, and
disposal of sewage in the district for a designated period the
board deems proper and reasonable. The board shall prepare and
adopt subsequent comprehensive plans for the collection,
treatment, and disposal of sewage in the district for each
succeeding designated period as the board deems proper and
reasonable. The first plan, as modified by the board, and any
subsequent plan shall take into account the preservation and
best and most economic use of water and other natural resources
in the area; the preservation, use, and potential for use of
lands adjoining waters of the state to be used for the disposal
of sewage; and the impact the disposal system will have on
present and future land use in the area affected. The plans
shall include the general location of needed interceptors and
treatment works, a description of the area that is to be served
by the various interceptors and treatment works, a long-range
capital improvements program, and any other details as the board
deems appropriate. In developing the plans, the board shall
consult with persons designated for the purpose by governing
bodies of any governmental unit within the district to represent
the entities and shall consider the data, resources, and input
offered to the board by the entities and any planning agency
acting on behalf of one or more of the entities. Each plan,
when adopted, must be followed in the district and may be
revised as often as the board deems necessary.
Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting
any subsequent comprehensive plan, the board shall hold a public
hearing on the proposed plan at a time and place in the district
that it selects. The hearing may be continued from time to
time. Not less than 45 days before the hearing, the board shall
publish notice of the hearing in a newspaper having general
circulation in the district, stating the date, time, and place
of the hearing, and the place where the proposed plan may be
examined by any interested person. At the hearing, all
interested persons must be permitted to present their views on
the plan.
Subd. 3. [GOVERNMENTAL UNIT PLANS AND PROGRAMS;
COORDINATION WITH BOARD'S RESPONSIBILITIES.] Once the board's
plan is adopted, no construction project involving the
construction of new sewers or other disposal facilities may be
undertaken by the local governmental unit unless its governing
body shall first find the project to be in accordance with the
governmental unit's comprehensive plan and program as approved
by the board. Before approval by the board of the comprehensive
plan and program of any local governmental unit in the district,
no water and sanitary sewer construction project may be
undertaken by the governmental unit unless approval of the
project is first secured from the board as to those features of
the project affecting the board's responsibilities as determined
by the board.
Sec. 6. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL
ASSESSMENTS.]
The Cross Lake area water and sanitary sewer board, in
order to implement the powers granted under this article to
establish, maintain, and administer the Cross Lake area water
and sanitary sewer district, may issue obligations and impose
special assessments against benefited property within the limits
of the district benefited by facilities constructed under this
article in the manner provided for local governments by
Minnesota Statutes, chapter 429.
Sec. 7. [SYSTEM EXPANSION; APPLICATION TO CITIES.]
The authority of the water and sanitary sewer board to
establish water or sewer or combined water and sewer systems
under this section extends to areas within the Cross Lake area
water and sanitary sewer district organized into cities when
requested by resolution of the governing body of the affected
city or when ordered by the Minnesota pollution control agency
after notice and hearing. For the purpose of any petition filed
or special assessment levied with respect to any system, the
entire area to be served within a city must be treated as if it
were owned by a single person, and the governing body shall
exercise all the rights and be subject to all the duties of an
owner of the area, and shall have power to provide for the
payment of all special assessments and other charges imposed
upon the area with respect to the system by the appropriation of
money, the collection of service charges, or the levy of taxes,
which shall be subject to no limitation of rate or amount.
Sec. 8. [SEWAGE COLLECTION AND DISPOSAL; POWERS.]
Subdivision 1. [POWERS.] In addition to all other powers
conferred upon the board in this article, it has the powers
specified in this section.
Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may
discharge the effluent from any treatment works operated by it
into any waters of the state, subject to approval of the agency
if required and in accordance with any effluent or water quality
standards lawfully adopted by the agency, any interstate agency,
or any federal agency having jurisdiction.
Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] The board may
require any person or local governmental unit to provide for the
discharge of any sewage, directly or indirectly, into the
district disposal system, or to connect any disposal system or a
part of it with the district disposal system wherever reasonable
opportunity for connection is provided; may regulate the manner
in which the connections are made; may require any person or
local governmental unit discharging sewage into the disposal
system to provide preliminary treatment for it; may prohibit the
discharge into the district disposal system of any substance
that it determines will or may be harmful to the system or any
persons operating it; and may require any local governmental
unit to discontinue the acquisition, betterment, or operation of
any facility for the unit's disposal system wherever and so far
as adequate service is or will be provided by the district
disposal system.
Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH
APPLICABLE REGULATIONS.] Any charges, connection fees, or other
cost-recovery techniques imposed on persons discharging sewage
directly or indirectly into the district disposal system must
comply with applicable state and federal law, including state
and federal regulations governing grant applications.
Sec. 9. [BUDGET.]
The board shall prepare and adopt, on or before October 1
in 1995 and each year thereafter, a budget showing for the
following calendar year or other fiscal year determined by the
board, sometimes referred to in this article as the budget year,
estimated receipts of money from all sources, including but not
limited to payments by each local governmental unit, federal or
state grants, taxes on property, and funds on hand at the
beginning of the year, and estimated expenditures for:
(1) costs of operation, administration, and maintenance of
the district disposal system;
(2) cost of acquisition and betterment of the district
disposal system; and
(3) debt service, including principal and interest, on
general obligation bonds and certificates issued pursuant to
section 13, and any money judgments entered by a court of
competent jurisdiction. Expenditures within these general
categories, and any other categories as the board may from time
to time determine, must be itemized in detail as the board
prescribes. The board and its officers, agents, and employees
shall not spend money for any purpose other than debt service
without having set forth the expense in the budget nor in excess
of the amount set forth in the budget for it. No obligation to
make an expenditure of the above-mentioned type is enforceable
except as the obligation of the person or persons incurring it.
The board may amend the budget at any time by transferring from
one purpose to another any sums except money for debt service
and bond proceeds or by increasing expenditures in any amount by
which actual cash receipts during the budget year exceed the
total amounts designated in the original budget. The creation
of any obligation under section 13 or the receipt of any federal
or state grant is a sufficient budget designation of the
proceeds for the purpose for which it is authorized, and of the
tax or other revenue pledged to pay the obligation and interest
on it, whether or not specifically included in any annual budget.
Sec. 10. [ALLOCATION OF COSTS.]
Subdivision 1. [DEFINITION OF CURRENT COSTS.] The
estimated cost of administration, operation, maintenance, and
debt service of the district disposal system to be paid by the
board in each fiscal year and the estimated costs of acquisition
and betterment of the system that are to be paid during the year
from funds other than state or federal grants and bond proceeds
and all other previously unallocated payments made by the board
pursuant to this article to be allocated in the fiscal year are
referred to as current costs and must be allocated by the board
as provided in subdivision 2 in the budget for that year.
Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current
costs must be allocated in the district on an equitable basis as
the board may determine by resolution to be in the best
interests of the district. The adoption or revision of any
method of allocation used by the board must be by the
affirmative vote of at least two-thirds of the members of the
board.
Sec. 11. [TAX LEVIES.]
To accomplish any duty imposed on it the board may, in
addition to the powers granted in this article and in any other
law or charter, exercise the powers granted any municipality by
Minnesota Statutes, chapters 117, 412, 429, 475, sections
115.46, 444.075, and 471.59, with respect to the area in the
district. The board may levy taxes upon all taxable property in
the district for all or a part of the amount payable to the
board, pursuant to section 10, to be assessed and extended as a
tax upon that taxable property by the county auditor for the
next calendar year, free from any limitation of rate or amount
imposed by law or charter. The tax must be collected and
remitted in the same manner as other general taxes.
Sec. 12. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.]
Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC
PROJECT.] Before the board orders any project involving the
acquisition or betterment of any interceptor or treatment works,
all or a part of the cost of which will be allocated pursuant to
section 10 as current costs, the board shall hold a public
hearing on the proposed project. The hearing must be held
following two publications in a newspaper having general
circulation in the district, stating the time and place of the
hearing, the general nature and location of the project, the
estimated total cost of acquisition and betterment, that portion
of costs estimated to be paid out of federal and state grants,
and that portion of costs estimated to be allocated. The
estimates must be best available at the time of the meeting and
if costs exceed the estimate, the project cannot proceed until
an additional public hearing is held, with notice as required at
the initial meeting. The two publications must be a week apart
and the hearing at least three days after the last publication.
Not less than 45 days before the hearing, notice of the hearing
must also be mailed to each clerk of all local governmental
units in the district, but failure to give mailed notice or any
defects in the notice does not invalidate the proceedings. The
project may include all or part of one or more interceptors or
treatment works. No hearing may be held on any project unless
the project is within the area covered by the comprehensive plan
adopted by the board pursuant to section 5 except that the
hearing may be held simultaneously with a hearing on a
comprehensive plan. A hearing is not required with respect to a
project, no part of the costs of which are to be allocated as
the current costs of acquisition, betterment, and debt service.
Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the
board proposes to assess against benefited property within the
district all or any part of the allocable costs of the project
as provided in subdivision 5, the board shall, not less than ten
days before the hearing provided for in subdivision 1, cause
mailed notice of the hearing to be given to the owner of each
parcel within the area proposed to be specially assessed and
shall also give one week's published notice of the hearing. The
notice of hearing must contain the same information provided in
the notice published by the board pursuant to subdivision 1, and
a description of the area proposed to be assessed. For the
purpose of giving mailed notice, owners are those shown to be on
the records of the county auditor or, in any county where tax
statements are mailed by the county treasurer, on the records of
the county treasurer; but other appropriate records may be used
for this purpose. For properties that are tax exempt or subject
to taxation on a gross earnings basis and not listed on the
records of the county auditor or the county treasurer, the
owners must be ascertained by any practicable means and mailed
notice given them as herein provided. Failure to give mailed
notice or any defects in the notice does not invalidate the
proceedings of the board.
Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before
adoption of the resolution calling for a hearing under this
section, the board shall secure from the district engineer or
some other competent person of the board's selection a report
advising it in a preliminary way as to whether the proposed
project is feasible and whether it should be made as proposed or
in connection with some other project and the estimated costs of
the project as recommended. No error or omission in the report
invalidates the proceeding. The board may also take other steps
before the hearing, as will in its judgment provide helpful
information in determining the desirability and feasibility of
the project, including but not limited to preparation of plans
and specifications and advertisement for bids on them. The
hearing may be adjourned from time to time and a resolution
ordering the project may be adopted at any time within six
months after the date of hearing. In ordering the project the
board may reduce but not increase the extent of the project as
stated in the notice of hearing and shall find that the project
as ordered is in accordance with the comprehensive plan and
program adopted by the board pursuant to section 5.
Subd. 4. [EMERGENCY ACTION.] If the board by resolution
adopted by the affirmative vote of not less than two-thirds of
its members determines that an emergency exists requiring the
immediate purchase of materials or supplies or the making of
emergency repairs, it may order the purchase of those supplies
and materials and the making of the repairs before any hearing
required under this section, provided that the board shall set
as early a date as practicable for the hearing at the time it
declares the emergency. All other provisions of this section
must be followed in giving notice of and conducting the
hearing. Nothing herein may be construed as preventing the
board or its agents from purchasing maintenance supplies or
incurring maintenance costs without regard to the requirements
of this section.
Subd 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The
board may specially assess all or any part of the costs of
acquisition and betterment as herein provided, of any project
ordered pursuant to this section. The special assessments must
be levied in accordance with the provisions of Minnesota
Statutes, sections 429.051 to 429.081, except as otherwise
provided in this subdivision. No other provisions of Minnesota
Statutes, chapter 429, apply. For purposes of levying the
special assessments, the hearing on the project required in
subdivision 1 serves as the hearing on the making of the
original improvement provided for by Minnesota Statutes, section
429.051. The area assessed may be less than but may not exceed
the area proposed to be assessed as stated in the notice of
hearing on the project provided for in subdivision 2.
Sec. 13. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.]
Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF
INDEBTEDNESS.] At any time after adoption of its annual budget
and in anticipation of the collection of tax and other revenues
estimated and set forth by the board in the budget, except in
the case of deficiency taxes levied under this subdivision and
taxes levied for the payment of certificates issued under
subdivision 2, the board may, by resolution, authorize the
issuance, negotiation, and sale, in accordance with subdivision
4 in the form and manner and upon terms it determines, of its
negotiable general obligation certificates of indebtedness in
aggregate principal amounts not exceeding 50 percent of the
total amount of tax collections and other revenues, and maturing
not later than three months after the close of the budget year
in which issued. The proceeds of the sale of the certificates
must be used solely for the purposes for which the tax
collections and other revenues are to be expended pursuant to
the budget.
All the tax collections and other revenues included in the
budget for the budget year, after the expenditure of the tax
collections and other revenues in accordance with the budget,
must be irrevocably pledged and appropriated to a special fund
to pay the principal and interest on the certificates when due.
If for any reason the tax collections and other revenues are
insufficient to pay the certificates and interest when due, the
board shall levy a tax in the amount of the deficiency on all
taxable property in the district and shall appropriate this
amount when received to the special fund.
Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in
any budget year the receipts of tax and other revenues should
for some unforeseen cause become insufficient to pay the board's
current expenses, or if any public emergency should subject it
to the necessity of making extraordinary expenditures, the board
may by resolution authorize the issuance, negotiation, and sale,
in accordance with subdivision 4 in the form and manner and upon
the terms and conditions it determines, of its negotiable
general obligation certificates of indebtedness in an amount
sufficient to meet the deficiency. The board shall levy on all
taxable property in the district a tax sufficient to pay the
certificates and interest on the certificates and shall
appropriate all collections of the tax to a special fund created
for the payment of the certificates and the interest on them.
Certificates issued under this subdivision mature not later than
April 1 in the year following the year in which the tax is
collectible.
Subd. 3. [GENERAL OBLIGATION BONDS.] The board may by
resolution authorize the issuance of general obligation bonds
for the acquisition or betterment of any part of the district
disposal system, including but without limitation the payment of
interest during construction and for a reasonable period
thereafter, or for the refunding of outstanding bonds,
certificates of indebtedness, or judgments. The board shall
pledge its full faith and credit and taxing power for the
payment of the bonds and shall provide for the issuance and sale
and for the security of the bonds in the manner provided in
Minnesota Statutes, chapter 475. The board has the same powers
and duties as a municipality issuing bonds under that law,
except that no election is required and the debt limitations of
Minnesota Statutes, chapter 475, do not apply to the bonds. The
board may also pledge for the payment of the bonds and deduct
from the amount of any tax levy required under Minnesota
Statutes, section 475.61, subdivision 1, and any revenues
receivable under any state and federal grants anticipated by the
board and may covenant to refund the bonds if and when and to
the extent that for any reason the revenues, together with other
funds available and appropriated for that purpose, are not
sufficient to pay all principal and interest due or about to
become due, provided that the revenues have not been anticipated
by the issuance of certificates under subdivision 1.
Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.]
Certificates issued under subdivisions 1 and 2 may be issued and
sold by negotiation, without public sale, and may be sold at a
price equal to the percentage of the par value of the
certificates, plus accrued interest, and bearing interest at the
rate determined by the board. No election is required to
authorize the issuance of the certificates. The certificates
must bear the same rate of interest after maturity as before and
the full faith and credit and taxing power of the board must be
pledged to the payment of the certificates.
Sec. 14. [DEPOSITORIES.]
The board shall designate one or more national or state
banks, or trust companies authorized to do a banking business,
as official depositories for money of the board, and shall
require the treasurer to deposit all or a part of the money in
those institutions. The designation must be in writing and set
forth all the terms and conditions upon which the deposits are
made, and must be signed by the chair and treasurer and made a
part of the minutes of the board. A designated bank or trust
company shall qualify as a depository by furnishing a corporate
surety bond or collateral in the amounts required by Minnesota
Statutes, section 118.01. No bond or collateral is required to
secure any deposit insofar as it is insured under federal law.
Sec. 15. [MONEY, ACCOUNTS, AND INVESTMENTS.]
Subdivision 1. [RECEIPT AND APPLICATION.] Money received
by the board must be deposited or invested by the treasurer and
disposed of as the board may direct in accordance with its
budget; provided that any money that has been pledged or
dedicated by the board to the payment of obligations or interest
on the obligations or expenses incident thereto, or for any
other specific purpose authorized by law, must be paid by the
treasurer into the fund to which it has been pledged.
Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer
shall establish funds and accounts as may be necessary or
convenient to handle the receipts and disbursements of the board
in an orderly fashion.
(b) The funds and accounts must be audited annually by a
certified public accountant at the expense of the district.
Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in
those funds and accounts may be deposited in the official
depositories of the board or invested as provided in this
subdivision. Any amount not currently needed or required by law
to be kept in cash on deposit may be invested in obligations
authorized for the investment of municipal sinking funds by
Minnesota Statutes, section 475.66. The money may also be held
under certificates of deposit issued by any official depository
of the board.
Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds
issued by the board for the acquisition and betterment of the
district disposal system, and the use, other than investment, of
all money on hand in any sinking fund or funds of the board, is
governed by the provisions of Minnesota Statutes, chapter 475,
the provisions of this article, and the provisions of
resolutions authorizing the issuance of the bonds. When
received, the bond proceeds must be transferred to the treasurer
of the board for safekeeping, investment, and payment of the
costs for which they were issued.
Subd. 5. [AUDIT.] The board shall provide for and pay the
cost of an independent annual audit of its official books and
records by the state auditor or a public accountant authorized
to perform that function under Minnesota Statutes, chapter 6.
Sec. 16. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES
OUTSIDE THE JURISDICTION OF THE BOARD.]
(a) The board may contract with the United States or any
agency of the federal government, any state or its agency, or
any municipal or public corporation, governmental subdivision or
agency or political subdivision in any state, outside the
jurisdiction of the board, for furnishing services to those
entities, including but not limited to planning for and the
acquisition, betterment, operation, administration, and
maintenance of any or all interceptors, treatment works, and
local water and sanitary sewer facilities. The board may
include as one of the terms of the contract that the entity must
pay to the board an amount agreed upon as a reasonable estimate
of the proportionate share properly allocable to the entity of
costs of acquisition, betterment, and debt service previously
allocated in the district. When payments are made by entities
to the board, they must be applied in reduction of the total
amount of costs thereafter allocated in the district, on an
equitable basis as the board deems to be in the best interests
of the district, applying so far as practicable and appropriate
the criteria set forth in section 10, subdivision 2. A
municipality in the state of Minnesota may enter into a contract
and perform all acts and things required as a condition or
consideration therefor consistent with the purposes of this
article, whether or not included among the powers otherwise
granted to the municipality by law or charter.
(b) The board shall contract with the city of Pine City, or
another qualified entity to make necessary inspections on the
district facilities, and to otherwise process or assist in
processing any of the work of the district.
Sec. 17. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES,
AND EQUIPMENT.]
Subdivision 1. [PLANS AND SPECIFICATIONS.] When the board
orders a project involving the acquisition or betterment of a
part of the district disposal system, it shall cause plans and
specifications of the project to be made, or if previously made,
to be modified, if necessary, and to be approved by the agency
if required, and after any required approval by the agency, one
or more contracts for work and materials called for by the plans
and specification may be awarded as provided in this section.
Subd. 2. [CONTRACTS IN EXCESS OF $5,000.] No contract for
construction work, or for the purchase of materials, supplies,
or equipment, estimated to cost more than $5,000 may be made by
the board without publishing once in a newspaper having general
circulation in the district and once in a trade paper or legal
newspaper published in any city of the first class, not less
than 14 days before the last day for submission of bids, notice
that bids or proposals will be received. The notice must state
the nature of the work or purchase, the terms and conditions
upon which the contract is to be awarded, and the time and place
where bids will be received, opened, and read publicly. After
the bids have been duly received, opened, read publicly, and
recorded, the board shall within a reasonable time award the
contract to the lowest responsible bidder or it may reject all
bids and readvertise. Each contract must be duly executed in
writing and the party to whom the contract is awarded shall give
sufficient bond or security to the board for the faithful
performance of the contract as required by law. If the board by
an affirmative vote of not less than two-thirds of its members
declares that an emergency exists requiring the immediate
purchase of materials or supplies or in making emergency
repairs, at a cost estimated to be in excess of $5,000, it shall
not be necessary to advertise for bids.
Subd. 3. [CONTRACTS OR PURCHASES FOR $5,000 OR LESS.] The
board may, without advertising for bids, enter into any contract
or purchase any materials, supplies, or equipment of the type
referred to in subdivision 2, the cost of which is estimated to
be $5,000 or less, or it may authorize the executive director to
enter into a contract on behalf of the board for that work or to
make those purchases without prior approval of the board and
without advertising for bids.
Subd. 4. [UNIFORM MUNICIPAL CONTRACTING LAW.] Except as
otherwise provided in this section, Minnesota Statutes, section
471.345, shall apply.
Sec. 18. [PROPERTY EXEMPT FROM TAXATION.]
Any properties, real or personal, owned, leased,
controlled, used, or occupied by the water and sanitary sewer
board for any purpose under this article are declared to be
acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and are exempt
from taxation by the state or any political subdivision of the
state, provided that the properties are subject to special
assessments levied by a political subdivision for a local
improvement in amounts proportionate to and not exceeding the
special benefit received by the properties from the
improvement. No possible use of any properties in any manner
different from their use as part of a disposal system at the
time may be considered in determining the special benefit
received by the properties. All assessments are subject to
final approval by the board, whose determination of the benefits
is conclusive upon the political subdivision levying the
assessment.
Sec. 19. [RELATION TO EXISTING LAWS.]
The provisions of this article must be given full effect
notwithstanding the provisions of any law or charter
inconsistent with this article. The powers conferred on the
board under this article do not in any way diminish or supersede
the powers conferred on the agency by Minnesota Statutes,
chapters 115 to 116.
Sec. 20. Laws 1993, chapter 55, section 1, is amended to
read:
Section 1. [TEMPORARY RESOLUTION, EXTENSION.]
In addition to the periods allowed by Minnesota Statutes,
section 394.34, the Pine county board of commissioners may by
resolution extend a prior resolution on the subdivision of land
by plat and by exemption certificate that was originally adopted
by the board on March 13, 1991, for a one-year period, and
extended on March 11, 1992. The resolution adopted under this
section may extend the prior resolution for an additional period
ending not later than March 13, 1994 April 1, 1995.
Sec. 21. [EFFECTIVE DATE.]
Subdivision 1. This article is effective the day following
final enactment as to the city of Pine City when approved by the
Pine City council and upon compliance with Minnesota Statutes,
section 645.021.
Subd. 2. This article is effective the day following final
enactment as to the towns of Pokegama, Chengwatana, and Pine
City when approved by the town boards of each town and upon
compliance with Minnesota Statutes, section 645.021.
Subd. 3. Section 20 is effective the day following final
enactment.
ARTICLE 11
CHISHOLM/HIBBING AIRPORT
Section 1. [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purpose of this article,
the words and terms defined in this section have the meanings
given them.
Subd. 2. [AERONAUTICS.] "Aeronautics" means the
transportation by aircraft; the operation, construction, repair,
or maintenance of aircraft, air equipment, power plants, and
accessories; the design, establishment, construction, operation,
improvement, repair, or maintenance of airports, restricted
landing areas, or other air navigation facilities and
construction; and powers incidental to these activities.
Subd. 3. [AIRPORT.] (a) "Airport" means any locality of
land or water, including intermediate landing fields, that is
used or intended to be used for the landing and take-off of
aircraft, whether or not facilities have been provided for the
shelter, servicing, or repair of aircraft, or for receiving or
discharging passengers or cargo. The term also includes any
facility used in, available for use in, or designed for use in
air navigation or to aid air navigation, including without
limitation landing areas; lights; any apparatus or equipment for
disseminating weather information, for signaling, for
radio-directional finding, or for radio or other electrical
communication; and any other structure or mechanism having a
similar purpose for guiding or controlling flight in the air or
for the landing or take-off of aircraft. The term also includes
without limitation access roads, park areas, and those lands
contiguous or not as may be required for installations necessary
for safe and efficient operation, buildings, structures,
hangars, shops, and any personal property usually used in
connection with operating airports, including specifically, but
not exclusively, snow-removal or impacting equipment, fire and
ambulance equipment, motor vehicles, and equipment for
buildings, structures, hangars, and shops.
(b) Whenever the words "airport" or "airport facilities"
are used in this article, they have the meaning given them in
paragraph (a) and specifically include the Chisholm/Hibbing
airport, including any land, buildings, or other appurtenances
incidental and necessary to the operation of that airport, and
any land, buildings, or other appurtenances that may be acquired
in the future for those purposes by the authority.
Subd. 4. [AUTHORITY.] "Authority" means the
Chisholm/Hibbing airport authority created under this article.
Subd. 5. [CITIES.] "Cities" means the city of Chisholm and
the city of Hibbing, in and for which an airport authority is
created under this article.
Subd. 6. [CITY COUNCILS; COUNCILS.] "City councils" or
"councils" means the governing bodies of the city of Chisholm as
established under the home rule charter of that city and the
city of Hibbing, a statutory city.
Subd. 7. [DIRECTOR.] "Director" means a person appointed
or otherwise selected as, and after qualification, acting as a
member of the authority.
Subd. 8. [DIRECTORS.] "Directors" means a quorum of the
members of the authority.
Subd. 9. [PERSON.] "Person" means an individual, firm,
copartnership, corporation, company, limited liability company,
association, joint stock association, or body politic; and
includes its trustee, receiver, assignee, or other similar
representative.
Sec. 2. [AIRPORT AUTHORITY CREATED.]
For the purposes set forth in this article, the
Chisholm/Hibbing airport authority is created in and for the
city of Chisholm and the city of Hibbing.
Sec. 3. [DIRECTORS.]
Subdivision 1. [APPOINTMENTS; GENERAL POWERS
AUTHORIZED.] The members of the authority created under this
article shall consist of six directors, three of whom shall be
appointed to membership in the authority by the city council of
the city of Chisholm and three of whom shall be appointed to
membership in the authority by the city council of the city of
Hibbing. The members of the authority may exercise the powers
and perform the duties set forth in this article.
Subd. 2. [TERMS; TRANSITION.] The members of the
Chisholm/Hibbing airport commission as of the day before the
effective date of this article shall be the original directors
of the authority and shall serve until the remainder of their
term and until their respective successors are appointed and
qualified. Subsequent terms of directors are for three years,
and all terms must expire on December 31 of the appropriate year.
Directors shall serve until their respective successors are
appointed and qualified.
Subd. 3. [EXPENSE REIMBURSEMENTS.] Each director may be
paid a per diem for attending monthly, executive, and special
meetings. Each director shall be reimbursed for reasonable and
authorized out-of-pocket expenses incurred in the fulfillment of
their duties.
Subd. 4. [VACANCY.] When a vacancy occurs in the
membership of the authority by means of resignation, death,
removal from the city, or removal for failure or neglect to
perform the duties of a director, the vacancy must be filled for
the unexpired term in the same manner as the predecessor was
appointed.
Subd. 5. [OATH.] Appointments and removals of the
directors of the authority must be made by the respective city
councils evidenced by resolution. An appointee who fails within
ten days after notification of appointment to file with the city
clerk of the appointing city the oath or affirmation to perform
faithfully, honestly, and impartially the duties of office, is
deemed to have refused the appointment, and another person must
be appointed in the manner prescribed in this section.
Subd. 6. [INITIAL APPOINTMENTS.] Within 30 days after the
effective date of this article, the original directors must be
appointed as provided in subdivision 2. Upon filing the oath of
office required by subdivision 5, each director assumes all the
rights, privileges, and powers of a director duly appointed as
provided in this article.
Subd. 7. [ORGANIZING MEETING; QUORUM; RULES AND
REGULATIONS.] Within 20 days after members of the authority have
qualified for office, the authority shall meet and organize.
The members shall adopt, and thereafter may amend, rules and
regulations for the conduct of the authority as the authority
deems in the public interest and most likely to advance,
enhance, foster, and promote air transportation in the airports
of the city of Chisholm and the city of Hibbing. The rules and
regulations must at all times be consistent with this article.
At this organizing meeting, and at all subsequent meetings of
the authority, four directors constitutes a quorum for the
transaction of business, and the affirmative vote of the
majority of the directors present is required for the passage of
any measure. The quorum must be present to act on any measure.
Subd. 8. [OFFICERS.] The directors shall elect from among
their members a president, a vice-president, and a treasurer.
They shall also elect a secretary, who may or may not be a
director. No two offices may be held by one director. The
officers shall have the duties and powers usually attendant upon
the holders of those offices and other duties and powers not
inconsistent with this article and as may be provided by the
authority.
Subd. 9. [EXECUTIVE DIRECTOR.] As soon after the
organization meeting as possible, the authority shall appoint an
executive director to be the executive and operating officer of
the authority. The executive director shall serve at the
pleasure of the authority and receive compensation as may be
fixed by it. The executive director must be experienced with
aviation and meet the requirement of a written,
authority-approved job description kept on file with the
authority. Under the supervision of the authority, the
executive director is responsible for the operation, management,
and promotion of all activities with which the authority is
charged, together with other duties as may be prescribed by the
authority. The executive director has those powers necessary
and incidental to the performance of duties, and other powers as
may be granted by the authority.
Sec. 4. [FINANCIAL MATTERS.]
Subdivision 1. [TREASURER; BUDGET; ACCOUNTING; FINANCIAL
STATEMENT.] The treasurer shall receive and retain custody of
all money of the authority. That money is deemed public funds.
The authority shall prepare an annual budget before the joint
meeting of the city councils to approve the levy and a copy of
the annual budget must be provided to the councils at the joint
meeting. The treasurer shall disburse funds only in accordance
with the annual budget of the authority and only upon written
orders drawn against those funds, signed by the executive
director and approved by the president of the authority, or in
the president's absence, the vice-president of the authority or
other employee of the authority as may be authorized or directed
so to do. Each order must state the name of the payee and the
nature of the claim for which the order is issued. The
treasurer shall keep an account of all money received, showing
the source of all receipts and the nature, purpose, and
authority of all disbursements. At least four times each year,
in the form to be determined by the directors, the authority
shall file with the city clerks of the cities of Chisholm and
Hibbing a financial statement from the authority, showing all
receipts and disbursements, the nature and purposes of those
receipts and disbursements, the money on hand, the credits and
assets of the authority, and its outstanding liability.
Subd. 2. [SPENDING POWER.] Within the total budget
approved as provided in subdivision 1, the authority has the
exclusive power to receive, control, and order the expenditure
of money in the control and management of the airport facilities
of the authority.
Subd. 3. [AUDIT.] A complete examination and audit of all
books and accounts of the authority must be done at least
annually by a certified public accountant. One copy of the
yearly audit must be filed with each city clerk as a public
document.
Sec. 5. [POWERS.]
Subdivision 1. [SUITS; CONTRACTS; EMINENT DOMAIN;
OPERATION; ACCEPT GIFTS; LEVY AND TAX.] Notwithstanding any law
or charter or ordinance provision to the contrary, the following
powers and duties are conferred upon the authority:
(1) to sue and be sued;
(2) to enter into and execute agreements, instruments, and
other arrangements necessary, proper, and convenient to the
exercise of its powers;
(3) to acquire:
(i) by purchase, lease, or gift any personal property,
franchises, easements, or other rights in its own name that may
be necessary or proper for the operation of the Chisholm/Hibbing
airport, or any airport facilities that may be acquired in the
future;
(ii) real property for use as airport terminal facilities,
maintenance facilities, parking facilities, runway or taxiway
facilities with approval of the city councils; and
(iii) other facilities used or useful for operating the
airport;
(4) to acquire, construct, equip, improve, operate, and
maintain airports and airport terminal facilities, maintenance
facilities, runways and taxiways, parking areas, and other
facilities useful for or related to operating an airport;
(5) to lease to or contract with any person or operator for
the use of any real or personal property under the authority's
control; provided, however, that the authority does not have the
power to make agreements for the sale of any real estate under
its control without the approval by resolution of the city
councils;
(6) to accept gifts, grants, or loans of money or other
property from the United States, the state, or any person or
entity, and for those purposes may enter into any agreement
required to do so, subject to prior notice to the city councils;
and
(7) to levy a tax on all taxable property, according to the
total tax capacity in each city, in the city of Chisholm and in
the city of Hibbing, to provide funds for the operation of the
authority. A joint meeting of the city councils must be
convened annually for the purpose of either adopting or
rejecting the proposed levy. Each city council shall vote
separately on the proposed levy. If the proposed levy is
rejected by either city council, the authority shall revise the
levy and resubmit the proposal for consideration by the city
councils who shall either reject or approve the revised proposed
levy. This procedure shall continue until a levy is approved by
resolution of both city councils. No later than September 15
each year, the secretary of the authority shall certify to the
auditor of St. Louis county the total levy approved by the city
councils, accompanied by a certified copy of the resolution of
each city approving the levy. The auditor shall add the total
levy made by the authority to other tax levies of the county on
taxable property in the cities of Chisholm and Hibbing for
collection by the county auditor with other taxes. When
collected, the county auditor shall make settlement of those
taxes with the treasurer of the authority in the same manner as
other taxes are distributed to political subdivisions.
Subd. 2. [MANAGEMENT CONTRACTS.] Notwithstanding other
provisions of this article to the contrary, the authority is
authorized, in lieu of directly operating the Chisholm/Hibbing
airports or any part of them, to enter into management contracts
with persons for managing the airports or any part of them, for
a period of time, for purposes, and under any compensation and
other terms and conditions as deemed advisable and proper by the
authority. The agreement is subject to the approval by
resolution of the city councils.
Sec. 6. [ADDITIONAL POWERS.]
The authority is authorized:
(1) when not in conflict with this article, to adopt and
alter bylaws and rules and regulations that it deems necessary
for conducting the business of the authority, for using and
operating the Chisholm/Hibbing airports and the facilities of
the authority, and for carrying out the objects of this article;
(2) to appoint the executive director, engineers and other
consultants, accountants, attorneys, and other officers, agents,
and employees as it deems necessary, who shall perform duties
and receive compensation as the authority may determine and who
are removable at the pleasure of the authority;
(3) to prescribe or provide for a policy or policies of
insurance for the defense and indemnification of the cities of
Chisholm and Hibbing and their officers and employees, and the
authority's directors, executive director, and other employees
against claims arising against them out of the performance of
duty, whether the claims be groundless or otherwise, with
premiums for any policies of insurance required by this article
to be paid out of the funds of the authority;
(4) to authorize and direct the treasurer to invest, in the
manner provided by law, any funds held in reserve, sinking
funds, or any funds not required for immediate disbursement; and
(5) to fix, alter, change, and collect fees, rentals, and
all other charges to be made for all services or facilities
furnished by the authority to the public, to any persons, or to
public or private agencies leasing any and all facilities at the
Chisholm/Hibbing airports.
Sec. 7. [EXECUTIVE DIRECTOR.]
Subdivision 1. [CUSTODY OF MONEY COLLECTED DAILY.] The
executive director of the authority is responsible for the
custody and control of all money received and collected from the
daily operations of the Chisholm/Hibbing airports until that
money is delivered to the treasurer and the executive director
has obtained a receipt for it, or until the money is deposited
in a bank account under the control of the treasurer.
Subd. 2. [INSURANCE.] In addition to other insurance
provisions of this article, the executive director shall provide
for insurance on any of the Chisholm/Hibbing airports' property,
rights, revenue, workers' compensation, public liability, or any
other risk or hazard arising from its activities; and the
premiums for that insurance must be paid for out of funds of the
Chisholm/Hibbing airport authority.
Sec. 8. [TAX-EXEMPT PROPERTY.]
Notwithstanding other law to the contrary, the property,
money, and other assets of the authority, or revenues or other
income of the authority are exempt from all taxation, licensing,
fees, or charges of any kind imposed by the state of Minnesota,
or by any county, municipality, political subdivision, taxing
district, or other public agency or body of the state.
Sec. 9. [REVENUE BONDS.]
Subdivision 1. [AUTHORITY TO ISSUE.] Notwithstanding any
limitations imposed by law or by the charter of the city of
Chisholm, the authority is authorized to issue negotiable
revenue bonds for any one or more of its purposes. Revenue
bonds under this section shall be issued in the amounts, times,
and series to the authority determined by resolution. No
election is necessary to authorize the issuance of the revenue
bonds. Except as otherwise provided by this section, the
maturities, any right of prior redemption, execution, paying
agency, provision for interest, and other terms of the bonds,
are subject to Minnesota Statutes, sections 475.54 and 475.56.
Subd. 2. [PLEDGED FROM REVENUES.] Revenue bonds issued
under this section do not constitute a debt of the city of
Chisholm or the city of Hibbing, and no tax levy may be
compelled for their payment. The bonds are payable only from
the revenues of the Chisholm/Hibbing airport pledged by the
authority; to payment of principal of and interest on the bonds;
and they must so recite. At or before the issuance of revenue
bonds, the authority, by resolution, shall pledge and
appropriate to the payment of principal and interest the net
revenues of the Chisholm/Hibbing airports, or some part of those
airports, after provision for reasonable and necessary expenses
of operation and maintenance, as described and defined in the
authorizing resolution.
Subd. 3. [RESOLUTION.] By the authorizing resolution, the
authority may provide covenants for the protection of the
bondholders relating to disposition of bond proceeds and
revenues; their reserves and investment; construction,
acquisition, repair, replacement, operation and insurance of the
Chisholm/Hibbing airports facilities; accounting and reports;
issuance of parity or subordinate lien bonds, rates and charges
to be established or maintained; and other covenants the
authority finds to be usual and reasonably necessary for the
protection of the airport revenue bondholders.
Subd. 4. [DEFAULT.] The authority may also define the
event or events of default and other requisites for suit by
bondholders or their representatives, conditions upon which any
covenant may be amended. Any terms, covenants, or conditions of
revenue bonds to be provided by resolution of the authority may
be set forth in a trust indenture with a corporation having
trust powers appointed by the authority, to represent and act
for bondholders, to hold and disburse pledged revenues, and to
perform other duties as may be provided in the trust indenture.
However, the trust indenture must not confer or authorize any
mortgage lien on the real or operating properties or general
funds of the authority.
Subd. 5. [PUBLIC INSTRUMENTALITY.] Revenue bonds of the
authority are deemed and must be treated as instrumentalities of
the public government agency; and as such, together with
interest on the bonds, are exempt from taxation.
Sec. 10. [GENERAL OBLIGATION BONDS.]
Subdivision 1. [AUTHORITY TO ISSUE.] The authority may
request the issuance of general obligation bonds to improve or
construct, and equip, terminal facilities, maintenance and
hangar facilities, runway or taxiway facilities, parking areas,
or similar facilities used or useful in connection with the
operation by the authority of the Chisholm/Hibbing airports, or
any part of them.
Subd. 2. [RESOLUTION.] General obligation bonds under this
section shall be issued in the amounts, at times, and in a
series as the cities shall determine by joint resolution.
Except as otherwise provided by this section, the maturities,
any right of prior redemption, execution, paying agency,
provision for interest, or other terms of the bonds, are subject
to Minnesota Statutes, sections 475.54 and 475.56.
Subd. 3. [PLEDGED WITH TAXES.] General obligation bonds
issued according to the total tax capacity in each city under
this section constitute a debt of the city of Chisholm and the
city of Hibbing for which the full faith and credit of the city
is pledged. A tax levy must be compelled for their payment and
the bonds must recite that.
Sec. 11. [PROPERTY TRANSACTIONS.]
Subdivision 1. [EMINENT DOMAIN.] If it becomes necessary
for any of the purposes provided in this article to exercise the
power of eminent domain, that power must not be exercised by the
authority. However, the city of Chisholm and the city of
Hibbing shall, at the request of the authority, acquire any of
the properties allowed pursuant to this article and necessary
for the conduct and operation of the authority, or for the
purpose of acquiring any land, waters, easements, or other
rights or interests in them by the exercise of the power of
eminent domain, either as provided for under the home rule
charter of the city of Chisholm, or under Minnesota Statutes,
chapter 117. An exercise of the power of eminent domain by the
cities must be at the request and expense of the authority. The
fact that the property is owned by a public service corporation
organized for the purpose specified in Minnesota Statutes,
section 300.03, or is already devoted to a public use, or to use
by a corporation, or was acquired for a public use by
condemnation, does not prevent its acquisition by the cities for
the authority by condemnation. The cities, on behalf of the
authority, may take possession of any property for which
condemnation proceedings have been commenced at any time after
the filing of the petition describing the property in the
proceedings. After the condemnation is completed, the cities
shall transfer the property condemned to the authority.
Subd. 2. [PROPERTY TRANSFERS.] Subject to prior notice to
the city councils, any state department or other agency of the
state government, or any county, municipality, or other public
agency, may sell, lease, grant, transfer, or convey to the
authority, with or without consideration, any facilities or any
part of the facilities, or any interest in real or personal
property, which may be useful to the authority for any
authorized purpose.
Sec. 12. [LIMITED REGULATION BY OTHER GOVERNMENTAL UNITS.]
The exercise by the authority and the city councils of the
powers provided in this article are not subject to regulation by
the jurisdiction or control of any other public body or agency,
whether state, county, or municipal, except as specifically
provided in this article. However, the authority is subject to
rules administered by the state department of public safety,
division of aeronautics, and to laws of the United States or
regulations of the Federal Aviation Administration of the United
States Department of Transportation, as may be applicable to the
operations of the Chisholm/Hibbing airports.
Sec. 13. [PROPERTY TRANSFERRED BY THIS ARTICLE.]
On the effective date of this article, the Chisholm/Hibbing
airport commission is dissolved and the title to all real and
personal property presently used and occupied by the
Chisholm/Hibbing airport commission vests in the authority. The
city of Chisholm and the city of Hibbing shall execute all deeds
or other appropriate documents necessary to confirm the vesting
of title in the Chisholm/Hibbing airport authority. If the
authority is dissolved, the fair market value of all real estate
owned by the city of Hibbing prior to the formation of the
Chisholm/Hibbing joint airport commission in 1957 including
improvements on that real estate prior to that time must be
credited to the city of Hibbing.
Sec. 14. [EFFECTIVE DATE.]
This article is effective after its approval by a majority
of the city council of the city of Chisholm and a majority of
the city council of the city of Hibbing, and upon compliance
with the provisions of Minnesota Statutes, section 645.021,
subdivision 3.
ARTICLE 12
MISCELLANEOUS
Section 1. Minnesota Statutes 1993 Supplement, section
84.794, subdivision 1, is amended to read:
Subdivision 1. [REGISTRATION REVENUE.] Fees from the
registration of off-highway motorcycles and the unrefunded
gasoline tax attributable to off-highway motorcycle use under
section 296.16 must be deposited in the state treasury and
credited to the off-highway motorcycle account in the natural
resources fund.
Sec. 2. Minnesota Statutes 1993 Supplement, section
84.803, subdivision 1, is amended to read:
Subdivision 1. [REGISTRATION REVENUE.] Fees from the
registration of off-road vehicles and unrefunded gasoline tax
attributable to off-road vehicle use under section 296.16 must
be deposited in the state treasury and credited to the off-road
vehicle account in the natural resources fund.
Sec. 3. Minnesota Statutes 1993 Supplement, section
270.78, is amended to read:
270.78 [PENALTY FOR FAILURE TO MAKE PAYMENT BY ELECTRONIC
FUNDS TRANSFER.]
(a) In addition to other applicable penalties imposed by
law, after notification from the commissioner of revenue to the
taxpayer that payments for a tax administered by the
commissioner are required to be made by means of electronic
funds transfer, and the payments are remitted by some other
means, there is a penalty in the amount of five percent of each
payment that should have been remitted electronically. The
penalty can be abated under the abatement procedures prescribed
in section 270.07, subdivision 6, if the failure to remit the
payment electronically is due to reasonable cause.
(b) The penalty under paragraph (a) does not apply if the
taxpayer pays by other means the amount due at least three
business days before the date the payment is due. This
paragraph does not apply after December 31, 1997.
Sec. 4. Minnesota Statutes 1993 Supplement, section
270.91, subdivision 4, is amended to read:
Subd. 4. [TAX RATES AFTER PLAN APPROVAL.] (a) The tax
imposed under this subdivision applies for the first assessment
year that begins after one of the following occurs:
(1) a response action plan for the property has been
approved by the commissioner of the pollution control agency or
by the commissioner of agriculture for an agricultural chemical
release or incident subject to chapter 18D and work under the
plan has begun; or
(2) the contaminants are asbestos and the property owner
has in place an abatement plan for enclosure, removal, or
encapsulation of the asbestos or a proactive, in-place
management program pursuant to the rules, requirements, and
formal policies of the United States environmental protection
agency. To qualify under this clause, the property owner must
(1) have entered into a binding contract with a licensed
contractor for completion of the work, or (2) have obtained a
license from the commissioner of health and begun the work, or
(3) implemented a proactive, in-place management program
pursuant to the rules, requirements, and formal policies of the
United States environmental protection agency. An abatement
plan must provide for completion of the work within a reasonable
time period, as determined by the assessors. An asbestos
management program must cover a period of time and require such
proactive practices as are required by the rules, requirements,
and formal policies of the United States environmental
protection agency.
(b) To qualify under paragraph (a), the property owner must
provide the assessor with a copy of: (1) the approved response
action plan; or (2) a copy of the asbestos abatement plan and
contract for completion of the work or the owner's license to
perform the work; or (3) a copy of the approved asbestos
management program. The property owner also must file with the
assessor an affidavit indicating when work under the response
action plan or asbestos abatement plan began.
(c) The tax imposed under this subdivision equals 50
percent of the class rate for the property under section 273.13,
multiplied by the contamination value of the property unless
paragraph (d) applies.
(d) The tax imposed under this subdivision equals 12.5
percent of the class rate for the property under section 273.13,
multiplied by the contamination value of the property. The tax
under this paragraph applies, if one of the following conditions
is satisfied:
(1) the contaminants are subject to chapter 115B and
neither the owner nor the operator of the taxable real property
in the assessment year is a responsible person under chapter
115B;
(2) the contaminants are subject to chapter 18D and neither
the owner nor the operator of the taxable real property in the
assessment year is a responsible party under chapter 18D;
(3) the contaminants are asbestos and neither the owner nor
the operator of the taxable real property in the assessment year
is required to undertake asbestos-related work, but is
implementing a proactive in-place management program.
Sec. 5. Minnesota Statutes 1993 Supplement, section
270.94, is amended to read:
270.94 [EXEMPTIONS.]
(a) The tax imposed by sections 270.91 to 270.98 does not
apply to the contamination value of a parcel of property
attributable to contaminants that were addressed by a response
action plan for the property, if the commissioner of the
pollution control agency, or the commissioner of agriculture for
a release subject to chapter 18D, has determined that all the
requirements of the plan have been satisfied. This exemption
applies beginning for the first assessment year after the
commissioner of the pollution control agency, or the
commissioner of agriculture determines that the implementation
of a response action plan has been completed. To qualify under
this paragraph, the property owner must provide the assessor
with a copy of the determination by the commissioner of the
pollution control agency or the commissioner of agriculture of
the completion of the response action plan.
(b) The tax imposed by sections 270.91 to 270.98 does not
apply to the contamination value of a parcel that is
attributable to asbestos, if:
(1) the work has been completed under an asbestos abatement
plan or the property owner is implementing a proactive in-place
asbestos management program consistent with the rules,
requirements, and formal policies of the United States
Environmental Protection Agency; and
(2) the property owner provides the assessor with an
affidavit stating the work under the abatement plan has been
completed, or the asbestos management plan is being implemented,
and any other evidence or information the assessor requests.
Sec. 6. Minnesota Statutes 1993 Supplement, section
289A.60, subdivision 21, is amended to read:
Subd. 21. [PENALTY FOR FAILURE TO MAKE PAYMENT BY
ELECTRONIC FUNDS TRANSFER.] (a) In addition to other applicable
penalties imposed by this section, after notification from the
commissioner to the taxpayer that payments are required to be
made by means of electronic funds transfer under section
289A.20, subdivision 2, paragraph (e), or 4, paragraph (d), or
289A.26, subdivision 2a, and the payments are remitted by some
other means, there is a penalty in the amount of five percent of
each payment that should have been remitted electronically. The
penalty can be abated under the abatement procedures prescribed
in section 270.07, subdivision 6, if the failure to remit the
payment electronically is due to reasonable cause.
(b) The penalty under paragraph (a) does not apply if the
taxpayer pays by other means the amount due at least three
business days before the date the payment is due. This
paragraph does not apply after December 31, 1997.
Sec. 7. Minnesota Statutes 1993 Supplement, section
296.02, subdivision 1a, is amended to read:
Subd. 1a. [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.]
The provisions of subdivision 1 do not apply to (1) gasoline
purchased by a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384 or (2) sales of compressed
natural gas or propane for use in vehicles displaying a valid
annual alternate fuel permit.
Sec. 8. Minnesota Statutes 1993 Supplement, section
296.025, subdivision 1a, is amended to read:
Subd. 1a. [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.]
The provisions of subdivision 1 do not apply to (1) special fuel
purchased by a transit system or transit provider receiving
financial assistance or reimbursement under section 174.24,
256B.0625, subdivision 17, or 473.384 or (2) sales of compressed
natural gas or propane for use in vehicles displaying a valid
annual alternate fuel permit.
Sec. 9. [296.0261] [PERMIT FOR ALTERNATE FUEL VEHICLE.]
Subdivision 1. [ANNUAL ALTERNATE FUEL PERMIT.] A person
owning a motor vehicle propelled by compressed natural gas,
propane, or any other manner except gasoline or special fuel,
shall obtain an annual permit for that vehicle in accordance
with subdivision 2 or 3. The period for which the alternate
fuel permit is valid must coincide with the motor vehicle
registration period of the vehicle. A person shall obtain all
required permits within 30 days of becoming a user of compressed
natural gas, propane, or any other method of propulsion except
gasoline or special fuel.
Subd. 2. [PERMIT FEES FOR ALTERNATE FUEL VEHICLES.] The
fees for annual alternate fuel permits are based on the
vehicle's gross weight as follows:
(1) under 6,001 pounds, $175;
(2) 6,001-12,000 pounds, $350;
(3) 12,001-26,000 pounds, $390; and
(4) over 26,000 pounds, $540.
Subd. 3. [PERMIT FEES FOR DUAL FUEL VEHICLES.] The owner
of a motor vehicle capable of being propelled by gasoline as
well as compressed natural gas or propane shall pay a permit fee
equal to one-half the fee determined under subdivision 2.
Subd. 4. [PRO RATA FEE CALCULATION.] The fee for a permit
required by this section must be calculated based on the number
of unexpired months remaining in the registration year of the
vehicle as measured from the date of the occurrence of the event
requiring the permit.
Subd. 5. [PERMIT APPLICATION; CONTENT.] A person shall
apply for an annual alternate fuel permit for each motor vehicle
specified in this section each time the vehicle is registered.
The commissioner of public safety shall prescribe the form of
the application. The form must require the applicant to provide
the following information:
(1) the name and address of the owner or person licensing
the vehicle;
(2) a description of the vehicle, including the make, model
and year, vehicle identification number, and the type of fuel
used; and
(3) other information the commissioner determines necessary
for the proper implementation of this section.
A completed application must be submitted to the department
of public safety. The department of public safety shall issue
an alternate fuel permit and collect the fee provided in this
section.
Subd. 6. [PERMIT STICKERS.] The alternate fuel permit
required by this section must be a gummed sticker prepared by
the department of public safety. The permit must be attached to
the lower left corner of the windshield of the motor vehicle for
which it was issued. The permit must provide a space to enter
the license number of the motor vehicle for which the permit is
issued. The permit must show the year for which it is issued
and the date of expiration of the permit.
Subd. 7. [PERMIT NOT TRANSFERABLE.] An alternate fuel
permit is not transferable, either to a new vehicle or to a new
owner. Upon the transfer of ownership of a motor vehicle with a
permit, the department of public safety shall credit the
transferor with the number of unexpired months remaining in the
registration period, except that when the vehicle is transferred
within the same month in which acquired, no credit for the month
is allowed. If a transferor acquires another motor vehicle for
which an alternate fuel permit is required at the time of
transfer, the credit provided by this section must be applied
toward payment of the alternate fuel permit fee then due;
otherwise the transferor may file a claim for the amount of the
credit with the commissioner on a form prescribed by the
commissioner. The department shall pay the claim from the
undistributed alternate fuel permit fees.
Subd. 8. [MOTOR VEHICLE CONVERSION REPORT.] A person who
installs equipment in a motor vehicle to permit it to be powered
by compressed natural gas or propane shall report the
installation to the department of public safety within 30 days.
The report must include the name and address of the owner of the
vehicle; the make, model, and identification number of the
vehicle; the type of fuel that the vehicle was equipped to use
before the installation; and, if the vehicle is registered, the
license plate number of the vehicle.
Subd. 9. [FEES DEPOSITED IN HIGHWAY USER FUND.] The permit
fees collected under subdivision 2 are in lieu of the gasoline
and special fuels excise taxes imposed by sections 296.02 and
296.025. Compressed natural gas or propane sold as fuel for
motor vehicles displaying valid annual alternate fuel permit
stickers is not subject to any additional tax at the time of
sale. All alternate fuel permit fees collected by the
department of public safety must be deposited in the state
treasury and credited to the highway user tax distribution fund.
Sec. 10. Minnesota Statutes 1992, section 296.16,
subdivision 1, is amended to read:
Subdivision 1. [INTENT; GASOLINE USE.] All gasoline
received in this state and all gasoline produced in or brought
into this state except aviation gasoline and marine gasoline
shall be determined to be intended for use in motor vehicles in
this state.
Approximately 1-1/2 percent of all gasoline received in
this state and 1-1/2 percent of all gasoline produced or brought
into this state, except gasoline used for aviation purposes, is
being used as fuel for the operation of motorboats on the waters
of this state and of the total revenue derived from the
imposition of the gasoline fuel tax for uses other than for
aviation purposes, 1-1/2 percent of such revenues is the amount
of tax on fuel used in motorboats operated on the waters of this
state.
Approximately three-fourths of one percent of all gasoline
received in and produced or brought into this state, except
gasoline used for aviation purposes, is being used as fuel for
the operation of snowmobiles in this state, and of the total
revenue derived from the imposition of the gasoline fuel tax for
uses other than for aviation purposes, three-fourths of one
percent of such revenues is the amount of tax on fuel used in
snowmobiles operated in this state.
Approximately 0.15 of one percent of all gasoline received
in or produced or brought into this state, except gasoline used
for aviation purposes, is being used for the operation of
all-terrain vehicles in this state, and of the total revenue
derived from the imposition of the gasoline fuel tax, 0.15 of
one percent is the amount of tax on fuel used in all-terrain
vehicles operated in this state.
Approximately 0.046 of one percent of all gasoline received
or produced in or brought into this state, except gasoline used
for aviation purposes, is being used for the operation of
off-highway motorcycles in this state, and of the total revenue
derived from the imposition of the gasoline fuel tax for uses
other than for aviation purposes, 0.046 of one percent is the
amount of tax on fuel used in off-highway motorcycles operated
in this state.
Approximately .164 of one percent of all gasoline received
or produced in or brought into this state, except gasoline used
for aviation purposes, is being used for the off-road operation
of off-road vehicles, as defined in section 84.797, in this
state, and of the total revenue derived from the imposition of
the gasoline fuel tax for uses other than aviation purposes,
.164 of one percent is the amount of tax on fuel used for
off-road operation of off-road vehicles in this state.
Sec. 11. Minnesota Statutes 1992, section 297C.03,
subdivision 6, is amended to read:
Subd. 6. [INFORMATIONAL RETURNS REPORTS.] The following
persons shall file with the commissioner a monthly informational
report in the manner and on the form prescribed by the
commissioner:
(a) manufacturers, wholesalers, and importers licensed to
ship distilled spirits or wine into Minnesota shall file with
the commissioner a monthly informational report on a form
prescribed by the commissioner.;
(b) persons who manufacture distilled spirits or wine
within the state;
(c) all other persons who import distilled spirits or wine
into Minnesota;
(d) those who possess, receive, store, or warehouse
distilled spirits or wine in Minnesota, upon which the tax
imposed by section 297C.02, subdivision 1, has not been paid;
and
(e) those who possess, receive, store, or warehouse
distilled spirits or wine in Minnesota, which are required to
give bond pursuant to Internal Revenue Code, subtitle E, chapter
51.
No payment of any tax is required to be remitted with this
report. The report must be filed on or before the tenth day
following the end of each calendar month, regardless of whether
or not any shipments were made the person shipped, manufactured,
possessed, received, stored, or warehoused any distilled spirits
or wine into or within Minnesota during the previous month,
unless the commissioner determines that a longer filing period
is appropriate for a particular manufacturer, wholesaler, or
importer person. A person failing to file this report is
subject to the provisions of section 297C.14, subdivision
8. This subdivision does not apply to the lawful importation of
wine and distilled spirits pursuant to section 297C.09, nor to
any lawful manufacture of wine or distilled spirits within the
state for personal consumption.
Sec. 12. [469.301] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 469.301 to
469.308, the terms defined in this section have the meanings
given them, unless the context indicates a different meaning.
Subd. 2. [COMMISSIONER.] "Commissioner" means the
commissioner of jobs and training.
Subd. 3. [ENTERPRISE ZONE.] "Enterprise zone" means an
area in the state designated as such by the commissioner.
Subd. 4. [CITY.] "City" means any city that contains an
area that meets the criteria for designation as a federal
empowerment zone or enterprise community and meets the
eligibility criteria in section 469.303, or a city of the second
class that is designated as an economically depressed area by
the United States Department of Commerce.
Subd. 5. [GOVERNING BODY.] "Governing body" means the city
council or other body designated by its charter.
Subd. 6. [RESIDENT.] "Resident" means an individual
residing within the enterprise zone that meets the income
guidelines in Public Law Number 103-66.
Subd. 7. [BUSINESS.] "Business" means any for-profit
business entity.
Subd. 8. [MINIMUM WAGE.] "Minimum wage" means the minimum
wage that is required by federal law.
Sec. 13. [469.302] [DESIGNATIONS OF ENTERPRISE ZONES.]
Subdivision 1. [PROCESS.] The commissioner shall designate
an area as an enterprise zone if:
(1) the application is made by the governing body of the
city as prescribed by section 469.304;
(2) the area is determined by the commissioner to be
eligible for designation under section 469.303.
Subd. 2. [DURATION.] The designation of an area as an
enterprise zone is effective for ten years after the date of
designation.
Subd. 3. [DATE OF DESIGNATION.] Designation is effective
immediately following approval of the enterprise zone
application by the commissioner.
Sec. 14. [469.303] [ELIGIBILITY REQUIREMENTS.]
An area within the city is eligible for designation as an
enterprise zone if the area is (1) designated as a proposed
federal empowerment zone or enterprise community by the city in
an application to the United States Department of Housing and
Urban Development under Public Law Number 103-66, provided the
city can demonstrate that it can meet the maximum zone
population standard under the federal empowerment zone program
for cities with a population under 500,000 or (2) an area within
a city of the second class that is designated as an economically
depressed area by the United States Department of Commerce.
Sec. 15. [469.304] [APPLICATION FOR ENTERPRISE ZONE
DESIGNATION.]
Subdivision 1. [SUBMISSION OF APPLICATIONS.] An applicant
may seek enterprise zone designation by submitting an
application to the commissioner. The commissioner shall
establish procedures and forms for the submission of
applications for enterprise zone designation. The commissioner
may promulgate rules for the administration of the program. The
commissioner of revenue shall establish a schedule to determine
the tax credits in section 469.305.
Subd. 2. [APPLICATIONS; CONTENTS.] The application for
designation as an enterprise zone must contain, at a minimum:
(1) verification that the area is eligible for designation
pursuant to section 469.303;
(2) identification of the agency or unit of government that
will implement the program;
(3) any additional information required by the
commissioner; and
(4) any additional information that the municipality
considers relevant to the designation of the area as an
enterprise zone.
Subd. 3. [CERTIFICATION.] The governing body must certify
to the commissioner that activity within the municipality's
enterprise zone will not transfer existing employment from other
municipalities within the state.
Sec. 16. [469.305] [ENTERPRISE ZONE CREDITS.]
Subdivision 1. [INCOME OR FRANCHISE TAX CREDIT.] An income
or corporate franchise tax credit is available to businesses
located in an enterprise zone that meet the conditions of this
section. Each city designated as an enterprise zone is
allocated $3,000,000 to be used to provide credits under this
section for the duration of the program. Each city of the
second class designated as an economically depressed area by the
United States Department of Commerce is allocated $300,000 to be
used to provide credits under this section for the duration of
the program. For fiscal year 1998 and subsequent years, the
proration in section 21 shall continue to apply until the amount
designated in this subdivision is expended.
The credit is in an amount equal to 20 percent of the wages
paid to an employee, not to exceed $5,000 per employee per
taxable year. The credit is available to an employer for a zone
resident employed in the zone at full-time wage levels of not
less than 170 percent of minimum wage. The credit is not
available to workers employed in construction or employees of
financial institutions, gambling enterprises, public utilities,
sports, fitness, and health facilities, or racetracks. The
employee must be employed at that rate at the time the business
applies for a tax credit, and must have been employed for at
least one year at the business. The credit applies to new jobs;
for purposes of this section, a "new job" is a job that did not
exist in Minnesota before the effective date of this section.
The credit is applicable to the five taxable years after the
application has been approved to the extent the allocation to
the city remains available to fund the credit, and provided that
the city certifies to the commissioner on an annual basis that
the business is in compliance with the plan to recruit, hire,
train, and retain zone residents.
Subd. 2. [REFUNDABLE CREDITS.] To the extent the credit
provided under subdivision 1 exceeds the business' tax liability
under chapter 290, the credit is refundable.
Subd. 3. [REVIEW AND ANALYSIS.] The city must submit the
proposed tax credit proposal to the commissioner for approval.
The proposal shall include a plan to recruit, hire, train, and
retain zone residents. The tax credit proposal shall be
approved unless the commissioner finds that the proposal is not
in conformity with the provisions of sections 469.301 to 469.308.
If the city submits the tax credit proposal to the
commissioner before the expiration of the zone designation under
section 469.302, subdivision 2, the authority of the
commissioner to approve the tax credit proposal continues until
the commissioner acts on the proposal.
Sec. 17. [469.306] [REVOCATION.]
The commissioner may revoke a business' tax credit if the
applicant has not proceeded in good faith with its operations in
a manner which is consistent with the purpose of sections
469.301 to 469.308 and is possible under circumstances
reasonably within the control of the applicant.
The commissioner may reconsider the revocation of the tax
credit if the business provides evidence that circumstances of
its failure to proceed were beyond its control or that it did
not act in bad faith.
Sec. 18. [469.307] [RECAPTURE.]
Subdivision 1. [TERMINATION OF OPERATIONS; OTHER
VIOLATIONS.] Any business that receives a tax credit authorized
by section 469.305 and ceases to operate or otherwise violates
the criteria for obtaining the credit for its facility located
within the enterprise zone within seven years after the first
receipt of a credit by the business shall repay the portion of
the tax credit received as provided in the following schedule:
Termination of Operations Repayment of Portion
or Other Violations
Less than two years 100 percent
Between two years and four years 75 percent
Between four years and seven years 50 percent
More than seven years 0 percent
Subd. 2. [REPAYMENT.] The repayment must be paid to the
state. The amount repaid must be credited to the amount
certified as available for tax credits in the zone under section
469.305.
Subd. 3. [LIEN.] If an event occurs that creates an
obligation under subdivision 1 to repay all or part of the tax
credit, the repayment obligation immediately becomes a lien
against the business's real and personal property located in
Minnesota, including the property of subsidiaries, parents, and
related corporations. A lien against real property under this
subdivision has the same legal effect and must be collected in
the same manner as unpaid real property taxes.
Sec. 19. [469.308] [ADMINISTRATION.]
Subdivision 1. [TECHNICAL ASSISTANCE.] The commissioner
shall provide technical assistance to the city seeking an
enterprise zone designation.
Subd. 2. [ADMINISTRATIVE PROCEDURE ACT.] Chapter 14 does
not apply to the designation of enterprise zones.
Subd. 3. [REPORTING.] The commissioner shall require
cities receiving enterprise zone designations to report to the
state regarding the economic activity that has occurred in the
zone following the designation.
Subd. 4. [REPORT TO THE LEGISLATURE.] The commissioner of
jobs and training, in consultation with the commissioner of
revenue and any cities receiving the designation, shall evaluate
the enterprise zone program and assess options for expansion of
the enterprise zone program to businesses throughout the
metropolitan area that hire zone residents. The commissioner of
jobs and training shall submit its findings in a report to the
1996 session of the legislature.
Sec. 20. [469.309] [RURAL JOB CREATION CREDIT.]
Subdivision 1. [CREDIT FOR JOB CREATION.] The commissioner
of trade and economic development may approve a credit against
the tax due under chapter 290 for an eligible business beginning
with the first taxable year after December 31, 1994. The
maximum credit available is $5,000 per eligible employee. The
actual credit is based on the following schedule:
$2,000 for each eligible employee with wages greater than
or equal to 170 percent and less than 200 percent of the minimum
wage;
$3,000 for each eligible employee with wages greater than
or equal to 200 percent and less than 250 percent of the minimum
wage;
$4,000 for each eligible employee with wages greater than
or equal to 250 percent and less than 300 percent of the minimum
wage; and
$5,000 for each eligible employee with wages greater than
or equal to 300 percent of the minimum wage.
The total credit for an employer is equal to the actual
credit multiplied by the number of employees eligible for that
credit. For purposes of this section "minimum wage" means the
minimum wage that is required by federal law. An eligible
business may apply for a rural job creation credit only once for
each new job. The credit is refundable.
Subd. 2. [ELIGIBLE BUSINESS.] An employer eligible for a
job credit under this section must (1) be located outside the
metropolitan area as defined under section 473.121 (2) create at
least ten qualifying new jobs in a two-year period, and (3)
consist of a for-profit business. For the purposes of this
section, a "qualifying new job" is a job that did not exist in
Minnesota before the effective date of this section.
Subd. 3. [ELIGIBLE EMPLOYEE.] To be eligible for a credit,
the employee must be employed full-time by an eligible business
at a wage level of not less than 170 percent of the minimum wage
at the time the eligible business applies for the credit and
must have been employed there at that wage level for a minimum
of 12 months. The credit applies only to new jobs created at
the eligible business after the effective date of this section.
Subd. 4. [RESTRICTIONS.] The tax credits provided by this
section do not apply to racetracks, financial institutions,
gambling enterprises, public utilities, or sports, fitness, and
health facilities. An employer is not eligible for a tax credit
if the commissioner determines that the position held by the
employee for which the business is seeking a credit was
transferred from an enterprise conducted by substantially the
same business enterprise at another site in the state.
Sec. 21. [469.31] [LIMIT ON TAX CREDITS.]
The maximum amount of tax credits allowable under Minnesota
Statutes, sections 469.305 and 469.309 is $900,000 for fiscal
year 1997. Of that amount, one-third must be allocated to the
city of Minneapolis, one-third to the city of St. Paul, and
one-third to the remaining cities. Of the amounts allocated to
the cities of Minneapolis and St. Paul, $25,000 must be
subtracted from each city's allocation and is appropriated to
the commissioner of jobs and training for administration of this
program, provided that $25,000 of the appropriation is for
fiscal year 1996 and $25,000 is for fiscal year 1997. Of the
amount allocated to the remaining cities, a minimum of $60,000
must be allocated to the city of South St. Paul. No tax credits
are allowable before fiscal year 1997. If the commissioner of
revenue estimates by March 1, 1996, that tax credits for fiscal
year 1997 will exceed $900,000, the commissioner shall
proportionately reduce each city's allocation to remain within
the limit.
Sec. 22. [473.197] [HOUSING BOND CREDIT ENHANCEMENT
PROGRAM.]
Subdivision 1. [AUTHORIZATION.] The metropolitan council
may establish a housing bond credit enhancement program as
provided in this section. The council may pledge its full faith
and credit and taxing powers to the payment of bonds issued
under section 469.034 for qualified housing development projects
in the metropolitan area, as provided in this section. A
"qualified housing development project" has the meaning given
that term in section 469.034, subdivision 2, paragraph (e),
except that the council is substituted for "general jurisdiction
governmental unit" in clause (3) and "60 percent of the median
family income" is substituted for "80 percent of the median
family income."
Subd. 2. [PROJECT SELECTION.] Before pledging its full
faith and credit, the council must establish criteria for
selecting appropriate qualified housing development projects for
the credit enhancement program. The council may award
preferences for qualified housing development projects that meet
criteria for preferences established by the council. The
council must establish the criteria in consultation with housing
providers in the metropolitan area. In developing priorities
for projects for the credit enhancement program, the council
shall give priority to projects that develop or redevelop
housing for low income households. The council shall consider
the extent to which projects for the credit enhancement program
are developed in collaboration with Minnesota Youth-Build under
sections 268.361 to 268.367; or training for housing programs
for homeless adults under Laws 1992, chapter 376, article 6; or
other employment training programs.
Subd. 3. [LIMITATION.] The aggregate principal amount of
bonds that may be secured by a pledge of the council's full
faith and credit under this section may not exceed $20,000,000.
The bonds must be payable from revenues derived from the project
or projects financed under the credit enhancement program, or
from income of the authority or authorities that participate in
the program, including earnings on any reserves established for
the program. The council must find that the pledged revenues
will equal or exceed 110 percent of the principal and interest
due on the bonds.
Subd. 4. [DEBT RESERVE; LEVY.] To provide money to pay
debt service on bonds issued under the credit enhancement
program if pledged revenues are insufficient to pay debt
service, the council must maintain a debt reserve fund in the
manner and with the effect provided by section 475.66 for public
debt service funds. To provide funds for the debt reserve fund,
the council may use up to $3,000,000 of the proceeds of solid
waste bonds issued by the council under section 473.831 before
its repeal. To provide additional funds for the debt reserve
fund, the council may levy a tax on all taxable property in the
metropolitan area and must levy the tax if sums in the debt
reserve fund are insufficient to cure any deficiency in the debt
service fund established for the bonds. The tax authorized by
this section does not affect the amount or rate of taxes that
may be levied by the council for other purposes and is not
subject to limit as to rate or amount.
Subd. 5. [AGREEMENTS.] The council and each authority that
participates in the credit enhancement program may enter into
agreements they determine to be necessary to implement the
credit enhancement program. The agreements may extend over any
period, notwithstanding any law to the contrary.
Sec. 23. [APPROPRIATION.]
$225,000 is appropriated from the general fund to the
commissioner of revenue for the costs of administering Laws
1994, chapter 383, and the provisions of this act. This amount
does not cancel and is available until July 1, 1995.
Sec. 24. [EFFECTIVE DATE.]
Section 1 is effective July 1, 1994.
Section 2 is effective July 1, 1995.
Sections 3 and 6 are effective for payments due after the
date of final enactment.
Sections 4 and 5 are effective for taxes levied in 1994,
payable in 1995, and thereafter.
Section 10 applies to gasoline received or produced in or
brought into this state (1) on or after July 1, 1994, in the
case of gasoline used in off-highway motorcycles, and (2) on or
after July 1, 1995, in the case of gasoline used for off-road
operation of off-road vehicles.
Section 11 is effective for informational reports due on or
after August 10, 1994.
Sections 12 to 21, and 23 are effective the day following
final enactment.
Section 22 is effective the day following final enactment
and applies to the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
Presented to the governor May 2, 1994
Signed by the governor May 5, 1994, 6:00 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes