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

                            CHAPTER 416-S.F.No. 2073 
                  An act relating to taxation; making technical 
                  corrections and administrative changes; amending 
                  Minnesota Statutes 1992, sections 103B.245, 
                  subdivision 1; 103D.911, subdivision 2; 103D.915, 
                  subdivision 1; 115A.923, subdivision 1; 256.879, 
                  subdivisions 1 and 2; 270.12, subdivision 2; 272.025, 
                  subdivision 3; 273.111, subdivision 6; 273.13, 
                  subdivision 22; 273.134; 273.1399, subdivision 3; 
                  275.065, subdivision 1; 278.05, subdivision 5; 279.37, 
                  subdivision 8; 282.01, subdivision 1; 282.014; 282.04, 
                  subdivision 2; 282.301; 289A.08, subdivision 7; 
                  289A.25, subdivision 5; 290.17, subdivision 2; 
                  290.371, subdivision 2; 297.01, subdivision 14; 
                  297.11, subdivision 5; 297A.021, subdivision 4; 
                  297B.11; 297C.01, subdivision 5; 357.18, subdivision 
                  2; 398.16; 398A.04, subdivision 8; 447.34, subdivision 
                  2; 462.396, subdivision 2; 469.060, subdivision 6; 
                  469.102, subdivision 5; 469.177, subdivision 9; 
                  473.167, subdivision 3; 473.249, subdivision 1; 
                  473.446, subdivision 1; 473.661, subdivision 2; 
                  473.711, subdivision 2; 477A.011, subdivision 1b; 
                  477A.0121, subdivision 4; 477A.0132, subdivision 3; 
                  477A.014, subdivision 1; and 477A.15; Minnesota 
                  Statutes 1993 Supplement, sections 124.2131, 
                  subdivision 1; 270.96, subdivision 3; 272.02, 
                  subdivision 1; 272.12; 273.11, subdivision 13; 
                  273.124, subdivisions 1, 9, and 13; 273.13, 
                  subdivision 25; 273.1398, subdivisions 1 and 3; 
                  273.166, subdivision 3; 275.065, subdivisions 3 and 6; 
                  276.04, subdivision 2; 277.15; 278.04; 278.08; 
                  290A.03, subdivision 13; 290.091, subdivision 2; 
                  297A.01, subdivision 3; 297A.07, subdivision 1; 
                  298.28, subdivision 9a; 469.033, subdivision 6; 
                  473.13, subdivision 1; and 477A.013, subdivision 8; 
                  Laws 1989, chapter 211, section 4, subdivision 2; Laws 
                  1992, chapter 511, article 4, section 29; Laws 1993, 
                  chapter 375, article 2, section 37; proposing coding 
                  for new law in Minnesota Statutes, chapters 273 and 
                  275; repealing Minnesota Statutes 1992, sections 
                  16A.70; 16A.71; 115A.923, subdivision 6; and 273.22; 
                  Minnesota Statutes 1993 Supplement, section 273.1398, 
                  subdivision 2a; Laws 1993, First Special Session 
                  chapter 1, article 2, section 6. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                                 PROPERTY TAXES
           Section 1.  Minnesota Statutes 1992, section 103B.245, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WATERSHED MANAGEMENT TAX DISTRICT.] (a) 
        Any local government unit planning for water management under 
        sections 103B.231 and 103B.235 may establish a watershed 
        management tax district in the territory within the watershed, 
        for the purpose of paying the costs of the planning required 
        under sections 103B.231 and 103B.235.  
           (b) Any local government unit which has part of its 
        territory within a watershed for which a plan has been adopted 
        in accordance with section 103B.231 and which has a local water 
        management plan adopted in accordance with section 103B.235 may 
        establish a watershed management tax district in the territory 
        within the watershed or a subwatershed unit in the watershed, 
        for the purpose of paying capital costs of the water management 
        facilities described in the capital improvement program of the 
        plans and for the purpose of paying for normal and routine 
        maintenance of the facilities.  
           (c) A county or counties required by section 103B.231, 
        subdivision 3, to prepare, adopt, and implement a watershed plan 
        shall apportion the costs of planning, capital improvements, and 
        maintenance proportionate to benefits.  The county may apportion 
        the costs among the subwatershed units in the watershed, or 
        among the statutory and home rule charter cities and towns 
        having territory in the watershed, and for this purpose may 
        establish more than one watershed management tax district in the 
        watershed.  
           (d) Notification of new watershed management districts 
        established under this subdivision must be made to the county 
        auditor by July 1 in order to be effective for taxes payable in 
        the following year. 
           Sec. 2.  Minnesota Statutes 1992, section 103D.911, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADOPTION.] On or before October 1 September 15 
        of each year, the managers shall adopt a budget for the next 
        year and decide on the total amount necessary to be raised from 
        ad valorem tax levies to meet the watershed district's budget.  
           Sec. 3.  Minnesota Statutes 1992, section 103D.915, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CERTIFICATION TO AUDITOR.] After adoption 
        of the budget and no later than October 1 September 15, the 
        secretary of the watershed district shall certify to the auditor 
        of each county within the watershed district the county's share 
        of the tax, which shall be an amount bearing the same proportion 
        to the total levy as the net tax capacity of the area of the 
        county within the watershed bears to the net tax capacity of the 
        entire watershed district.  The maximum amount of a levy may not 
        exceed the amount provided in section 103D.905.  
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        124.2131, subdivision 1, is amended to read: 
           Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
        [COMPUTATION.] The department of revenue shall annually conduct 
        an assessment/sales ratio study of the taxable property in each 
        school district in accordance with the procedures in paragraphs 
        (b) and (c).  Based upon the results of this assessment/sales 
        ratio study, the department of revenue shall determine an 
        aggregate equalized net tax capacity for the various classes of 
        taxable property in each school district, which tax capacity 
        shall be designated as the adjusted net tax capacity.  The 
        adjusted net tax capacities shall be determined using the net 
        tax capacity percentages in effect for the assessment year 
        following the assessment year of the study.  The department of 
        revenue shall make whatever estimates are necessary to account 
        for changes in the classification system.  The department of 
        revenue may incur the expense necessary to make the 
        determinations.  The commissioner of revenue may reimburse any 
        county or governmental official for requested services performed 
        in ascertaining the adjusted net tax capacity.  On or before 
        March 15 annually, the department of revenue shall file with the 
        chair of the tax committee of the house of representatives and 
        the chair of the committee on taxes and tax laws of the senate a 
        report of adjusted net tax capacities.  On or before June 15 
        annually, the department of revenue shall file its final report 
        on the adjusted net tax capacities established by the previous 
        year's assessments and the current year's net tax capacity 
        percentages with the commissioner of education and each county 
        auditor for those school districts for which the auditor has the 
        responsibility for determination of local tax rates.  A copy of 
        the report so filed shall be mailed to the clerk of each 
        district involved and to the county assessor or supervisor of 
        assessments of the county or counties in which each district is 
        located. 
           (b) [METHODOLOGY.] In making its annual assessment/sales 
        ratio studies, the department of revenue shall use a methodology 
        consistent with the most recent Standard on Assessment Ratio 
        Studies published by the assessment standards committee of the 
        International Association of Assessing Officers.  The 
        commissioner of revenue shall supplement this general 
        methodology with specific procedures necessary for execution of 
        the study in accordance with other Minnesota laws impacting the 
        assessment/sales ratio study.  The commissioner shall document 
        these specific procedures in writing and shall publish the 
        procedures in the State Register, but these procedures will not 
        be considered "rules" pursuant to the Minnesota administrative 
        procedure act.  For purposes of this section, sections 270.12, 
        subdivision 2, clause (8), and 278.05, subdivision 4, the 
        commissioner of revenue shall exclude from the assessment/sales 
        ratio study the sale of any nonagricultural property which does 
        not contain an improvement, if (1) the statutory basis on which 
        the property's taxable value as most recently assessed is less 
        than market value as defined in section 273.11, or (2) the 
        property has undergone significant physical change or a change 
        of use since the most recent assessment.  
           (c) [AGRICULTURAL LANDS.] For purposes of determining the 
        adjusted net tax capacity of agricultural lands for the 
        calculation of adjusted net tax capacities, the market value of 
        agricultural lands shall be the price for which the property 
        would sell in an arms length transaction. 
           (d) [FORCED SALES.] The commissioner may include forced 
        sales in the assessment/sales ratio studies if it is determined 
        by the commissioner that these forced sales indicate true market 
        value. 
           (e) [STIPULATED VALUES AND ABATEMENTS.] The estimated 
        market value to be used in calculating sales ratios shall be the 
        value established by the assessor before any stipulations 
        resulting from appeals by property owners and before any 
        abatement unless the abatement was granted for the purpose of 
        correcting mere clerical errors. 
           (f) [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
        shall be calculated for commercial property and for industrial 
        property.  These two classes shall be combined only in 
        jurisdictions in which there is not an adequate sample of sales 
        in each class. 
           Sec. 5.  Minnesota Statutes 1992, section 256.879, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The commissioner of human services may, 
        with the approval of the federal department of health, education 
        and welfare, provide an annual supplemental housing allowance 
        for recipients of the aid to families with dependent children 
        program who would otherwise qualify for the credit set forth 
        refund provided in sections 290A.01 to 290A.22. 
           Sec. 6.  Minnesota Statutes 1992, section 256.879, 
        subdivision 2, is amended to read: 
           Subd. 2.  The amount of the supplemental housing allowance, 
        if any, shall be calculated in the same manner as the income 
        adjusted homestead credit set forth at property tax refund 
        provided in sections 290A.01 to 290A.22.  Recipients may apply 
        for this supplement in the same manner as claims submitted to 
        the department of revenue under sections 290A.01 to 290A.22.  
        The supplemental allowance shall be paid by local welfare 
        agencies. 
           Sec. 7.  Minnesota Statutes 1992, section 270.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEETING DATES; DUTIES.] The board shall meet 
        annually between April 15 and June 30 at the office of the 
        commissioner of revenue and examine and compare the returns of 
        the assessment of the property in the several counties, and 
        equalize the same so that all the taxable property in the state 
        shall be assessed at its market value, subject to the following 
        rules: 
           (1) The board shall add to the aggregate valuation of the 
        real property of every county, which the board believes to be 
        valued below its market value in money, such percent as will 
        bring the same to its market value in money; 
           (2) The board shall deduct from the aggregate valuation of 
        the real property of every county, which the board believes to 
        be valued above its market value in money, such percent as will 
        reduce the same to its market value in money; 
           (3) If the board believes the valuation for a part of a 
        class determined by a range of market value under clause (8) or 
        otherwise, a class, or classes of the real property of any town 
        or district in any county, or the valuation for a part of a 
        class, a class, or classes of the real property of any county 
        not in towns or cities, should be raised or reduced, without 
        raising or reducing the other real property of such county, or 
        without raising or reducing it in the same ratio, the board may 
        add to, or take from, the valuation of a part of a class, a 
        class, or classes in any one or more of such towns or cities, or 
        of the property not in towns or cities, such percent as the 
        board believes will raise or reduce the same to its market value 
        in money; 
           (4) The board shall add to the aggregate valuation of 
        any part of a class, a class, or classes of personal property of 
        any county, town, or city, which the board believes to be valued 
        below the market value thereof, such percent as will raise the 
        same to its market value in money; 
           (5) The board shall take from the aggregate valuation of 
        any part of a class, a class, or classes of personal property in 
        any county, town or city, which the board believes to be valued 
        above the market value thereof, such percent as will reduce the 
        same to its market value in money; 
           (6) The board shall not reduce the aggregate valuation of 
        all the property of the state, as returned by the several county 
        auditors, more than one percent on the whole valuation thereof; 
           (7) When it would be of assistance in equalizing values the 
        board may require any county auditor to furnish statements 
        showing assessments of real and personal property of any 
        individuals, firms, or corporations within the county.  The 
        board shall consider and equalize such assessments and may 
        increase the assessment of individuals, firms, or corporations 
        above the amount returned by the county board of equalization 
        when it shall appear to be undervalued, first giving notice to 
        such persons of the intention of the board so to do, which 
        notice shall fix a time and place of hearing.  The board shall 
        not decrease any such assessment below the valuation placed by 
        the county board of equalization; 
           (8) In equalizing values pursuant to this section, the 
        board shall utilize a 12-month assessment/sales ratio study 
        conducted by the department of revenue containing only sales 
        that are filed in the county auditor's office under section 
        272.115, by November 1 of the previous year and that occurred 
        between October 1 of the year immediately preceding the previous 
        year and September 30 of the previous year.  
           The assessment/sales ratio study may separate the values of 
        residential property into market value categories.  The board 
        may adjust the market value categories and the number of 
        categories as necessary to create an adequate sample size for 
        each market value category.  The board may determine the 
        adequate sample size.  To the extent practicable, the 
        methodology used in preparing the assessment/sales ratio study 
        must be consistent with the most recent Standard on Assessment 
        Sales Ratio Studies published by the assessment standards 
        committee of the International Association of Assessing 
        Officers.  The board may determine the geographic area used in 
        preparing the study to accurately equalize values.  A sales 
        ratio study separating residential property into market value 
        categories may not be used as the basis for a petition under 
        chapter 278. 
           The sales prices used in the study must be discounted for 
        terms of financing.  The board shall use the median ratio as the 
        statistical measure of the level of assessment for any 
        particular category of property; and 
           (9) The board shall receive from each county the estimated 
        market values on the assessment date falling within the study 
        period for all parcels by magnetic tape or other medium as 
        prescribed by the commissioner of revenue. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        270.96, subdivision 3, is amended to read: 
           Subd. 3.  [TREASURER.] (a) The county treasurer shall pay 
        the proceeds of the tax imposed under section 270.91, 
        subdivision 4, less the amount retained by the county for the 
        cost of administration under section 270.98, to the commissioner 
        at the same times provided for the ad valorem property tax 
        settlements distributions. 
           (b) The county treasurer shall pay the proceeds of the tax 
        imposed under section 270.91, subdivisions 2 and 3, to the local 
        taxing jurisdictions in the same manner provided for the 
        distribution of ad valorem property taxes. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        272.02, subdivision 1, is amended to read: 
           Subdivision 1.  All property described in this section to 
        the extent herein limited shall be exempt from taxation: 
           (1) all public burying grounds; 
           (2) all public schoolhouses; 
           (3) all public hospitals; 
           (4) all academies, colleges, and universities, and all 
        seminaries of learning; 
           (5) all churches, church property, and houses of worship; 
           (6) institutions of purely public charity except parcels of 
        property containing structures and the structures described in 
        section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
        and (3), or paragraph (d), other than those that qualify for 
        exemption under clause (25); 
           (7) all public property exclusively used for any public 
        purpose; 
           (8) except for the taxable personal property enumerated 
        below, all personal property and the property described in 
        section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
        exempt.  
           The following personal property shall be taxable:  
           (a) personal property which is part of an electric 
        generating, transmission, or distribution system or a pipeline 
        system transporting or distributing water, gas, crude oil, or 
        petroleum products or mains and pipes used in the distribution 
        of steam or hot or chilled water for heating or cooling 
        buildings and structures; 
           (b) railroad docks and wharves which are part of the 
        operating property of a railroad company as defined in section 
        270.80; 
           (c) personal property defined in section 272.03, 
        subdivision 2, clause (3); 
           (d) leasehold or other personal property interests which 
        are taxed pursuant to section 272.01, subdivision 2; 273.124, 
        subdivision 7; or 273.19, subdivision 1; or any other law 
        providing the property is taxable as if the lessee or user were 
        the fee owner; 
           (e) manufactured homes and sectional structures, including 
        storage sheds, decks, and similar removable improvements 
        constructed on the site of a manufactured home, sectional 
        structure, park trailer or travel trailer as provided in section 
        273.125, subdivision 8, paragraph (f); and 
           (f) flight property as defined in section 270.071.  
           (9) Personal property used primarily for the abatement and 
        control of air, water, or land pollution to the extent that it 
        is so used, and real property which is used primarily for 
        abatement and control of air, water, or land pollution as part 
        of an agricultural operation, as a part of a centralized 
        treatment and recovery facility operating under a permit issued 
        by the Minnesota pollution control agency pursuant to chapters 
        115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
        and 7045.0020 to 7045.1260, as a wastewater treatment facility 
        and for the treatment, recovery, and stabilization of metals, 
        oils, chemicals, water, sludges, or inorganic materials from 
        hazardous industrial wastes, or as part of an electric 
        generation system.  For purposes of this clause, personal 
        property includes ponderous machinery and equipment used in a 
        business or production activity that at common law is considered 
        real property. 
           Any taxpayer requesting exemption of all or a portion of 
        any real property or any equipment or device, or part thereof, 
        operated primarily for the control or abatement of air or water 
        pollution shall file an application with the commissioner of 
        revenue.  The equipment or device shall meet standards, rules, 
        or criteria prescribed by the Minnesota pollution control 
        agency, and must be installed or operated in accordance with a 
        permit or order issued by that agency.  The Minnesota pollution 
        control agency shall upon request of the commissioner furnish 
        information or advice to the commissioner.  On determining that 
        property qualifies for exemption, the commissioner shall issue 
        an order exempting the property from taxation.  The equipment or 
        device shall continue to be exempt from taxation as long as the 
        permit issued by the Minnesota pollution control agency remains 
        in effect. 
           (10) Wetlands.  For purposes of this subdivision, 
        "wetlands" means:  (i) land described in section 103G.005, 
        subdivision 18; (ii) land which is mostly under water, produces 
        little if any income, and has no use except for wildlife or 
        water conservation purposes, provided it is preserved in its 
        natural condition and drainage of it would be legal, feasible, 
        and economically practical for the production of livestock, 
        dairy animals, poultry, fruit, vegetables, forage and grains, 
        except wild rice; or (iii) land in a wetland preservation area 
        under sections 103F.612 to 103F.616.  "Wetlands" under items (i) 
        and (ii) include adjacent land which is not suitable for 
        agricultural purposes due to the presence of the wetlands, but 
        do not include woody swamps containing shrubs or trees, wet 
        meadows, meandered water, streams, rivers, and floodplains or 
        river bottoms.  Exemption of wetlands from taxation pursuant to 
        this section shall not grant the public any additional or 
        greater right of access to the wetlands or diminish any right of 
        ownership to the wetlands. 
           (11) Native prairie.  The commissioner of the department of 
        natural resources shall determine lands in the state which are 
        native prairie and shall notify the county assessor of each 
        county in which the lands are located.  Pasture land used for 
        livestock grazing purposes shall not be considered native 
        prairie for the purposes of this clause.  Upon receipt of an 
        application for the exemption provided in this clause for lands 
        for which the assessor has no determination from the 
        commissioner of natural resources, the assessor shall refer the 
        application to the commissioner of natural resources who shall 
        determine within 30 days whether the land is native prairie and 
        notify the county assessor of the decision.  Exemption of native 
        prairie pursuant to this clause shall not grant the public any 
        additional or greater right of access to the native prairie or 
        diminish any right of ownership to it. 
           (12) Property used in a continuous program to provide 
        emergency shelter for victims of domestic abuse, provided the 
        organization that owns and sponsors the shelter is exempt from 
        federal income taxation pursuant to section 501(c)(3) of the 
        Internal Revenue Code of 1986, as amended through December 31, 
        1986, notwithstanding the fact that the sponsoring organization 
        receives funding under section 8 of the United States Housing 
        Act of 1937, as amended. 
           (13) If approved by the governing body of the municipality 
        in which the property is located, property not exceeding one 
        acre which is owned and operated by any senior citizen group or 
        association of groups that in general limits membership to 
        persons age 55 or older and is organized and operated 
        exclusively for pleasure, recreation, and other nonprofit 
        purposes, no part of the net earnings of which inures to the 
        benefit of any private shareholders; provided the property is 
        used primarily as a clubhouse, meeting facility, or recreational 
        facility by the group or association and the property is not 
        used for residential purposes on either a temporary or permanent 
        basis. 
           (14) To the extent provided by section 295.44, real and 
        personal property used or to be used primarily for the 
        production of hydroelectric or hydromechanical power on a site 
        owned by the state or a local governmental unit which is 
        developed and operated pursuant to the provisions of section 
        103G.535. 
           (15) If approved by the governing body of the municipality 
        in which the property is located, and if construction is 
        commenced after June 30, 1983:  
           (a) a "direct satellite broadcasting facility" operated by 
        a corporation licensed by the federal communications commission 
        to provide direct satellite broadcasting services using direct 
        broadcast satellites operating in the 12-ghz. band; and 
           (b) a "fixed satellite regional or national program service 
        facility" operated by a corporation licensed by the federal 
        communications commission to provide fixed satellite-transmitted 
        regularly scheduled broadcasting services using satellites 
        operating in the 6-ghz. band. 
        An exemption provided by clause (15) shall apply for a period 
        not to exceed five years.  When the facility no longer qualifies 
        for exemption, it shall be placed on the assessment rolls as 
        provided in subdivision 4.  Before approving a tax exemption 
        pursuant to this paragraph, the governing body of the 
        municipality shall provide an opportunity to the members of the 
        county board of commissioners of the county in which the 
        facility is proposed to be located and the members of the school 
        board of the school district in which the facility is proposed 
        to be located to meet with the governing body.  The governing 
        body shall present to the members of those boards its estimate 
        of the fiscal impact of the proposed property tax exemption.  
        The tax exemption shall not be approved by the governing body 
        until the county board of commissioners has presented its 
        written comment on the proposal to the governing body or 30 days 
        have passed from the date of the transmittal by the governing 
        body to the board of the information on the fiscal impact, 
        whichever occurs first. 
           (16) Real and personal property owned and operated by a 
        private, nonprofit corporation exempt from federal income 
        taxation pursuant to United States Code, title 26, section 
        501(c)(3), primarily used in the generation and distribution of 
        hot water for heating buildings and structures.  
           (17) Notwithstanding section 273.19, state lands that are 
        leased from the department of natural resources under section 
        92.46. 
           (18) Electric power distribution lines and their 
        attachments and appurtenances, that are used primarily for 
        supplying electricity to farmers at retail.  
           (19) Transitional housing facilities.  "Transitional 
        housing facility" means a facility that meets the following 
        requirements.  (i) It provides temporary housing to individuals, 
        couples, or families.  (ii) It has the purpose of reuniting 
        families and enabling parents or individuals to obtain 
        self-sufficiency, advance their education, get job training, or 
        become employed in jobs that provide a living wage.  (iii) It 
        provides support services such as child care, work readiness 
        training, and career development counseling; and a 
        self-sufficiency program with periodic monitoring of each 
        resident's progress in completing the program's goals.  (iv) It 
        provides services to a resident of the facility for at least 
        three months but no longer than three years, except residents 
        enrolled in an educational or vocational institution or job 
        training program.  These residents may receive services during 
        the time they are enrolled but in no event longer than four 
        years.  (v) It is owned and operated or under lease from a unit 
        of government or governmental agency under a property 
        disposition program and operated by one or more organizations 
        exempt from federal income tax under section 501(c)(3) of the 
        Internal Revenue Code of 1986, as amended through December 31, 
        1987.  This exemption applies notwithstanding the fact that the 
        sponsoring organization receives financing by a direct federal 
        loan or federally insured loan or a loan made by the Minnesota 
        housing finance agency under the provisions of either Title II 
        of the National Housing Act or the Minnesota housing finance 
        agency law of 1971 or rules promulgated by the agency pursuant 
        to it, and notwithstanding the fact that the sponsoring 
        organization receives funding under Section 8 of the United 
        States Housing Act of 1937, as amended. 
           (20) Real and personal property, including leasehold or 
        other personal property interests, owned and operated by a 
        corporation if more than 50 percent of the total voting power of 
        the stock of the corporation is owned collectively by:  (i) the 
        board of regents of the University of Minnesota, (ii) the 
        University of Minnesota Foundation, an organization exempt from 
        federal income taxation under section 501(c)(3) of the Internal 
        Revenue Code of 1986, as amended through December 31, 1990, and 
        (iii) a corporation organized under chapter 317A, which by its 
        articles of incorporation is prohibited from providing pecuniary 
        gain to any person or entity other than the regents of the 
        University of Minnesota; which property is used primarily to 
        manage or provide goods, services, or facilities utilizing or 
        relating to large-scale advanced scientific computing resources 
        to the regents of the University of Minnesota and others. 
           (21) Wind energy conversion systems, as defined in section 
        216C.06, subdivision 12, installed after January 1, 1991, and 
        used as an electric power source. 
           (22) Containment tanks, cache basins, and that portion of 
        the structure needed for the containment facility used to 
        confine agricultural chemicals as defined in section 18D.01, 
        subdivision 3, as required by the commissioner of agriculture 
        under chapter 18B or 18C. 
           (23) Photovoltaic devices, as defined in section 216C.06, 
        subdivision 13, installed after January 1, 1992, and used to 
        produce or store electric power. 
           (24) Real and personal property owned and operated by a 
        private, nonprofit corporation exempt from federal income 
        taxation pursuant to United States Code, title 26, section 
        501(c)(3), primarily used for an ice arena or ice rink, and used 
        primarily for youth and high school programs. 
           (25) A structure that is situated on real property that is 
        used for: 
           (i) housing for the elderly or for low- and moderate-income 
        families as defined in Title II of the National Housing Act, as 
        amended through December 31, 1990, and funded by a direct 
        federal loan or federally insured loan made pursuant to Title II 
        of the act; or 
           (ii) housing lower income families or elderly or 
        handicapped persons, as defined in section 8 of the United 
        States Housing Act of 1937, as amended; and which meets each of 
        the following criteria:. 
           In order for a structure to be exempt under (i) or (ii) of 
        this clause, it must also meet each of the following criteria: 
           (A) is owned by an entity which is operated as a nonprofit 
        corporation organized under chapter 317A; 
           (B) is owned by an entity which has not entered into a 
        housing assistance payments contract under section 8 of the 
        United States Housing Act of 1937, or, if the entity which owns 
        the structure has entered into a housing assistance payments 
        contract under section 8 of the United States Housing Act of 
        1937, the contract provides assistance for less than 90 percent 
        of the dwelling units in the structure, excluding dwelling units 
        intended for management or maintenance personnel; 
           (C) operates an on-site congregate dining program in which 
        participation by residents is mandatory, and provides assisted 
        living or similar social and physical support services for 
        residents; and 
           (D) was not assessed and did not pay tax under chapter 273 
        prior to the 1991 levy, while meeting the other conditions of 
        this clause. 
           An exemption under this clause remains in effect for taxes 
        levied in each year or partial year of the term of its permanent 
        financing. 
           (26) Real and personal property that is located in the 
        Superior National Forest, and owned or leased and operated by a 
        nonprofit organization that is exempt from federal income 
        taxation under section 501(c)(3) of the Internal Revenue Code of 
        1986, as amended through December 31, 1992, and primarily used 
        to provide recreational opportunities for disabled veterans and 
        their families. 
           (27) Manure pits and appurtenances, which may include 
        slatted floors and pipes, installed or operated in accordance 
        with a permit, order, or certificate of compliance issued by the 
        Minnesota pollution control agency.  The exemption shall 
        continue for as long as the permit, order, or certificate issued 
        by the Minnesota pollution control agency remains in effect. 
           Sec. 10.  Minnesota Statutes 1992, section 272.025, 
        subdivision 3, is amended to read: 
           Subd. 3.  The statement required by subdivision 1, 
        paragraph (a), must be filed with the assessor by February 1 of 
        the assessment year, however, any taxpayer who has filed the 
        statement required by subdivision 1 more than 12 months prior to 
        February 1, 1983, or February 1 of each third year after 1983, 
        shall file a statement by February 1, 1983, and by February 1 of 
        each third year thereafter.  
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        272.12, is amended to read: 
           272.12 [CONVEYANCES, TAXES PAID BEFORE RECORDING.] 
           When: 
           (a) a deed or other instrument conveying land, or 
           (b) a plat of any town site or addition thereto, or 
           (c) a survey required pursuant to section 508.47, 
           (d) a condominium plat subject to chapter 515 or 515A or a 
        declaration that contains such a plat, or 
           (e) a common interest community plat subject to chapter 
        515B or a declaration that contains such a plat, 
        is presented to the county auditor for transfer, the auditor 
        shall ascertain from the records if there be taxes delinquent 
        upon the land described therein, or if it has been sold for 
        taxes.  An assignment of a sheriff's or referee's certificate of 
        sale, when the certificate of sale describes real estate, and 
        certificates of redemption from mortgage or lien foreclosure 
        sales, when the certificate of redemption encompasses real 
        estate and is issued to a junior creditor, are considered 
        instruments conveying land for the purposes of this section and 
        section 272.121.  If there are taxes delinquent, the auditor 
        shall certify to the same; and upon payment of such taxes, or in 
        case no taxes are delinquent, shall transfer the land upon the 
        books of the auditor's office, and note upon the instrument, 
        over official signature, the words, "no delinquent taxes and 
        transfer entered," or, if the land described has been sold or 
        assigned to an actual purchaser for taxes, the words "paid by 
        sale of land described within;" and, unless such statement is 
        made upon such instrument, the county recorder or the registrar 
        of titles shall refuse to receive or record the same; provided, 
        that sheriff's or referees' certificates of sale on execution or 
        foreclosure of a lien or mortgage, certificates of redemption 
        from mortgage or lien foreclosure sales issued to the redeeming 
        mortgagor or lienee, deeds of distribution made by a personal 
        representative in probate proceedings, decrees and judgments, 
        receivers receipts, patents, and copies of town or statutory 
        city plats, in case the original plat filed in the office of the 
        county recorder has been lost or destroyed, and the instruments 
        releasing, removing and discharging reversionary and forfeiture 
        provisions affecting title to land and instruments releasing, 
        removing or discharging easement rights in land or building or 
        other restrictions, may be recorded without such certificate; 
        and, provided that instruments conveying land and, as 
        appurtenant thereto an easement over adjacent tract or tracts of 
        land, may be recorded without such certificate as to the land 
        covered by such easement; and provided further, that any 
        instrument granting an easement made in favor of any public 
        utility or pipe line for conveying gas, liquids or solids in 
        suspension, in the nature of a right of way over, along, across 
        or under a tract of land may be recorded without such 
        certificate as to the land covered by such easement.  Any 
        instrument amending or restating the declarations, 
        bylaws, plats, or other enabling documents governing homeowners 
        associations of condominiums, townhouses, common interest 
        ownership communities, and other planned unit developments may 
        be recorded without the auditor's certificate. 
           A deed of distribution made by a personal representative in 
        a probate proceeding, a decree, or a judgment that conveys land 
        shall be presented to the county auditor, who shall transfer the 
        land upon the books of the auditor's office and note upon the 
        instrument, over official signature, the words, "transfer 
        entered", and the instrument may then be recorded.  A decree or 
        judgment that affects title to land but does not convey land may 
        be recorded without presentation to the auditor. 
           A violation of this section by the county recorder or the 
        registrar of titles shall be a gross misdemeanor, and, in 
        addition to the punishment therefor, the recorder or registrar 
        shall be liable to the grantee of any instrument so recorded for 
        the amount of any damages sustained. 
           When, as a condition to permitting the recording of deed or 
        other instrument affecting the title to real estate previously 
        forfeited to the state under the provisions of sections 281.16 
        to 281.27, county officials, after such real estate has been 
        purchased or repurchased, have required the payment of taxes 
        erroneously assumed to have accrued against such real estate 
        after forfeiture and before the date of purchase or repurchase, 
        the sum required to be so paid shall be refunded to the persons 
        entitled thereto out of moneys in the funds in which the sum so 
        paid was placed.  Delinquent taxes are those taxes deemed 
        delinquent under section 279.02. 
           Sec. 12.  [273.032] [MARKET VALUE DEFINITION.] 
           For the purpose of determining any property tax levy 
        limitation based on market value, any net debt limit based on 
        market value, any limit on the issuance of bonds, certificates 
        of indebtedness, or capital notes based on market value, any 
        qualification to receive state aid based on market value, or any 
        state aid amount based on market value, the terms "market 
        value," "taxable market value," and "market valuation," whether 
        equalized or unequalized, mean the total taxable market value of 
        property within the local unit of government before any 
        adjustments for tax increment, fiscal disparity, or powerline 
        credit values, but after the limited market adjustments under 
        section 273.11, subdivision 1a, and after the market value 
        exclusions of certain improvements to homestead property under 
        section 273.11, subdivision 16.  Unless otherwise provided, 
        "market value," "taxable market value," and "market valuation" 
        refer to the taxable market value for the previous assessment 
        year. 
           Sec. 13.  Minnesota Statutes 1993 Supplement, section 
        273.11, subdivision 13, is amended to read: 
           Subd. 13.  [VALUATION OF INCOME-PRODUCING PROPERTY.] 
        Beginning with the 1995 assessment, only accredited assessors or 
        senior accredited assessors or other licensed assessors who have 
        successfully completed at least two income-producing property 
        appraisal courses may value income-producing property for ad 
        valorem tax purposes.  "Income-producing property" as used in 
        this subdivision means the taxable property in class 3a and 3b 
        in section 273.13, subdivision 24; class 4a and 4c, except for 
        seasonal recreational property not used for commercial purposes, 
        and class 4d in section 273.13, subdivision 25; and class 5 in 
        section 273.13, subdivision 31.  "Income-producing property" 
        includes any property in class 4e in section 273.13, subdivision 
        25, that would be income-producing property under the definition 
        in this subdivision if it were not substandard.  
        "Income-producing property appraisal course" as used in this 
        subdivision means a course of study of approximately 30 
        instructional hours, with a final comprehensive test.  An 
        assessor must successfully complete the final examination for 
        each of the two required courses.  The course must be approved 
        by the board of assessors. 
           Sec. 14.  Minnesota Statutes 1992, section 273.111, 
        subdivision 6, is amended to read: 
           Subd. 6.  Real property shall be considered to be in 
        agricultural use provided that annually: 
           (1) at least 33-1/3 percent of the total family income of 
        the owner is derived therefrom, or the total production income 
        including rental from the property is $300 plus $10 per tillable 
        acre; and 
           (2) it is devoted to the production for sale of 
        agricultural products as defined in section 273.13, subdivision 
        23, paragraph (e). 
           Slough, wasteland, and woodland contiguous to or surrounded 
        by land that is entitled to valuation and tax deferment under 
        this section is considered to be in agricultural use if under 
        the same ownership and management. 
           Sec. 15.  Minnesota Statutes 1993 Supplement, section 
        273.124, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
        that is occupied and used for the purposes of a homestead by its 
        owner, who must be a Minnesota resident, is a residential 
        homestead.  
           Agricultural land, as defined in section 273.13, 
        subdivision 23, that is occupied and used as a homestead by its 
        owner, who must be a Minnesota resident, is an agricultural 
        homestead. 
           Dates for establishment of a homestead and homestead 
        treatment provided to particular types of property are as 
        provided in this section.  
           The assessor shall require proof, as provided in 
        subdivision 13, of the facts upon which classification as a 
        homestead may be determined.  Notwithstanding any other law, the 
        assessor may at any time require a homestead application to be 
        filed in order to verify that any property classified as a 
        homestead continues to be eligible for homestead status. 
           When there is a name change or a transfer of homestead 
        property, the assessor may reclassify the property in the next 
        assessment unless a homestead application is filed to verify 
        that the property continues to qualify for homestead 
        classification. 
           (b) For purposes of this section, homestead property shall 
        include property which is used for purposes of the homestead but 
        is separated from the homestead by a road, street, lot, 
        waterway, or other similar intervening property.  The term "used 
        for purposes of the homestead" shall include but not be limited 
        to uses for gardens, garages, or other outbuildings commonly 
        associated with a homestead, but shall not include vacant land 
        held primarily for future development.  In order to receive 
        homestead treatment for the noncontiguous property, the owner 
        shall apply for it to the assessor by July 1 of the year when 
        the treatment is initially sought.  After initial qualification 
        for the homestead treatment, additional applications for 
        subsequent years are not required. 
           (c) Residential real estate that is occupied and used for 
        purposes of a homestead by a relative of the owner is a 
        homestead but only to the extent of the homestead treatment that 
        would be provided if the related owner occupied the property.  
        For purposes of this paragraph, "relative" means a parent, 
        stepparent, child, stepchild, spouse, grandparent, grandchild, 
        brother, sister, uncle, or aunt.  This relationship may be by 
        blood or marriage.  Property that was classified as seasonal 
        recreational residential property at the time when treatment 
        under this paragraph would first apply shall continue to be 
        classified as seasonal recreational residential property for the 
        first four assessment years beginning after the date when the 
        relative of the owner occupies the property as a homestead; this 
        delay also applies to property that, in the absence of this 
        paragraph, would have been classified as seasonal recreational 
        residential property at the time when the residence was 
        constructed.  Neither the related occupant nor the owner of the 
        property may claim a property tax refund under chapter 290A for 
        a homestead occupied by a relative.  In the case of a residence 
        located on agricultural land, only the house, garage, and 
        immediately surrounding one acre of land shall be classified as 
        a homestead under this paragraph, except as provided in 
        paragraph (d). 
           (d) Agricultural property that is occupied and used for 
        purposes of a homestead by a relative of the owner, is a 
        homestead, only to the extent of the homestead treatment that 
        would be provided if the related owner occupied the property, 
        and only if all of the following criteria are met: 
           (1) the relative who is occupying the agricultural property 
        is a son or daughter of the owner of the agricultural property, 
           (2) the owner of the agricultural property must be a 
        Minnesota resident, 
           (3) the owner of the agricultural property is must not 
        eligible to receive homestead treatment on any other 
        agricultural property in Minnesota, and 
           (4) the owner of the agricultural property is limited to 
        only one agricultural homestead per family under this paragraph. 
           Neither the related occupant nor the owner of the property 
        may claim a property tax refund under chapter 290A for a 
        homestead occupied by a relative qualifying under this 
        paragraph.  For purposes of this paragraph, "agricultural 
        property" means the house, garage, other farm buildings and 
        structures, and agricultural land. 
           Application must be made to the assessor by the owner of 
        the agricultural property to receive homestead benefits under 
        this paragraph.  The assessor may require the necessary proof 
        that the requirements under this paragraph have been met. 
           Sec. 16.  Minnesota Statutes 1993 Supplement, section 
        273.124, subdivision 9, is amended to read: 
           Subd. 9.  [HOMESTEAD ESTABLISHED AFTER ASSESSMENT DATE.] 
        Any property that was not used for the purpose of a homestead on 
        the assessment date, but which was used for the purpose of a 
        homestead by on December 1 of a year, constitutes class 1 or 
        class 2a. 
           Any taxpayer meeting the requirements of this subdivision 
        must notify the county assessor, or the assessor who has the 
        powers of the county assessor under section 273.063, in writing, 
        by December 15 of the year of occupancy in order to qualify 
        under this subdivision.  The assessor must not deny full 
        homestead treatment to a property that is partially homesteaded 
        on January 2 but occupied for the purpose of a full homestead by 
        on December 1 of a year.  
           The county assessor and the county auditor may make the 
        necessary changes on their assessment and tax records to provide 
        for proper homestead classification as provided in this 
        subdivision. 
           If homestead classification has not been requested as of 
        December 15, the assessor will classify the property as 
        nonhomestead for the current assessment year for taxes payable 
        in the following year, provided that the owner of any property 
        qualifying under this subdivision, which has not been accorded 
        the benefits of this subdivision, may be entitled to receive 
        homestead classification by proper application as provided in 
        section 375.192.  
           The county assessor may publish in a newspaper of general 
        circulation within the county a notice requesting the public to 
        file an application for homestead as soon as practicable after 
        acquisition of a homestead, but no later than December 15. 
           The county assessor shall publish in a newspaper of general 
        circulation within the county no later than December 1 of each 
        year a notice informing the public of the requirement to file an 
        application for homestead by December 15. 
           In the case of manufactured homes assessed as personal 
        property, the homestead must be established, and a homestead 
        classification requested, by May 29 of the assessment year.  The 
        assessor may include information on these deadlines for 
        manufactured homes assessed as personal property in the 
        published notice or notices. 
           Sec. 17.  Minnesota Statutes 1993 Supplement, section 
        273.124, subdivision 13, is amended to read: 
           Subd. 13.  [HOMESTEAD APPLICATION.] (a) A person who meets 
        the homestead requirements under subdivision 1 must file a 
        homestead application with the county assessor to initially 
        obtain homestead classification. 
           (b) On or before January 2, 1993, each county assessor 
        shall mail a homestead application to the owner of each parcel 
        of property within the county which was classified as homestead 
        for the 1992 assessment year.  The format and contents of a 
        uniform homestead application shall be prescribed by the 
        commissioner of revenue.  The commissioner shall consult with 
        the chairs of the house and senate tax committees on the 
        contents of the homestead application form.  The application 
        must clearly inform the taxpayer that this application must be 
        signed by all owners who occupy the property or by the 
        qualifying relative and returned to the county assessor in order 
        for the property to continue receiving homestead treatment.  The 
        envelope containing the homestead application shall clearly 
        identify its contents and alert the taxpayer of its necessary 
        immediate response. 
           (c) Every property owner applying for homestead 
        classification must furnish to the county assessor the social 
        security number of each occupant who is listed as an owner of 
        the property on the homestead application, and the name and 
        address of each owner who does not occupy the property.  If the 
        social security number is not provided, the county assessor 
        shall classify the property as nonhomestead.  The social 
        security numbers of the property owners are private data on 
        individuals as defined by section 13.02, subdivision 12, but, 
        notwithstanding that section, the private data may be disclosed 
        to the commissioner of revenue. 
           (d) If residential real estate is occupied and used for 
        purposes of a homestead by a relative of the owner and qualifies 
        for a homestead under subdivision 1, paragraph (c), in order for 
        the property to receive homestead status, a homestead 
        application must be filed with the assessor.  The social 
        security number of each relative occupying the property and the 
        social security number of each owner who is related to an 
        occupant of the property shall be required on the homestead 
        application filed under this subdivision.  If a different 
        relative of the owner subsequently occupies the property, the 
        owner of the property must notify the assessor within 30 days of 
        the change in occupancy.  The social security number of a 
        relative occupying the property is private data on individuals 
        as defined by section 13.02, subdivision 12, but may be 
        disclosed to the commissioner of revenue.  
           (e) The homestead application shall also notify the 
        property owners that the application filed under this section 
        will not be mailed annually and that if the property is granted 
        homestead status for the 1993 assessment, or any assessment year 
        thereafter, that same property shall remain classified as 
        homestead until the property is sold or transferred to another 
        person, or the owners or the relatives no longer use the 
        property as their homestead.  Upon the sale or transfer of the 
        homestead property, a certificate of value must be timely filed 
        with the county auditor as provided under section 272.115.  
        Failure to notify the assessor within 30 days that the property 
        has been sold, transferred, or that the owner or the relative is 
        no longer occupying the property as a homestead, shall result in 
        the penalty provided under this subdivision and the property 
        will lose its current homestead status. 
           (f) If the homestead application is not returned within 30 
        days, the county will send a second application to the present 
        owners of record.  The notice of proposed property taxes 
        prepared under section 275.065, subdivision 3, shall reflect the 
        property's classification.  Beginning with assessment year 1993 
        for all properties, if a homestead application has not been 
        filed with the county by December 15, the assessor shall 
        classify the property as nonhomestead for the current assessment 
        year for taxes payable in the following year, provided that the 
        owner may be entitled to receive the homestead classification by 
        proper application under section 375.192. 
           (g) At the request of the commissioner, each county must 
        give the commissioner a list that includes the name and social 
        security number of each property owner, or relative of a 
        property owner, applying for homestead classification under this 
        subdivision.  The commissioner shall use the information 
        provided on the lists as appropriate under the law, including 
        for the detection of improper claims by owners, or relatives of 
        owners, under chapter 290A.  
           (h) If, in comparing the lists supplied by the counties, 
        the commissioner finds that a property owner is claiming more 
        than one homestead, the commissioner shall notify the 
        appropriate counties.  Within 90 days of the notification, the 
        county assessor shall investigate to determine if the homestead 
        classification was properly claimed.  If the property owner does 
        not qualify, the county assessor shall notify the county auditor 
        who will determine the amount of homestead benefits that had 
        been improperly allowed.  For the purpose of this section, 
        "homestead benefits" means the tax reduction resulting from the 
        classification as a homestead under section 273.13, the taconite 
        homestead credit under section 273.135, and the supplemental 
        homestead credit under section 273.1391. 
           The county auditor shall send a notice to the owners of the 
        affected property, demanding reimbursement of the homestead 
        benefits plus a penalty equal to 100 percent of the homestead 
        benefits.  The property owners may appeal the county's 
        determination by filing a notice of appeal with the Minnesota 
        tax court within 60 days of the date of the notice from the 
        county.  If the amount of homestead benefits and penalty is not 
        paid within 60 days, and if no appeal has been filed, the county 
        auditor shall certify the amount of taxes and penalty to the 
        succeeding year's tax list to be collected as part of the 
        property taxes.  In the case of a manufactured home, the amount 
        shall be certified to the current year's tax list for collection.
           (i) Any amount of homestead benefits recovered by the 
        county from the property owner shall be distributed to the 
        county, city or town, and school district where the property is 
        located in the same proportion that each taxing district's levy 
        was to the total of the three taxing districts' levy for the 
        current year.  Any amount recovered attributable to taconite 
        homestead credit shall be transmitted to the St. Louis county 
        auditor to be deposited in the taconite property tax relief 
        account.  The total amount of penalty collected must be 
        deposited in the county general fund. 
           (j) If a property owner has applied for more than one 
        homestead and the county assessors cannot determine which 
        property should be classified as homestead, the county assessors 
        will refer the information to the commissioner.  The 
        commissioner shall make the determination and notify the 
        counties within 60 days. 
           (k) In addition to lists of homestead properties, the 
        commissioner may ask the counties to furnish lists of all 
        properties and the record owners. 
           Sec. 18.  Minnesota Statutes 1992, section 273.13, 
        subdivision 22, is amended to read: 
           Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
        23, real estate which is residential and used for homestead 
        purposes is class 1.  The market value of class 1a property must 
        be determined based upon the value of the house, garage, and 
        land.  
           The first $72,000 of market value of class 1a property has 
        a net class rate of one percent of its market value and a gross 
        class rate of 2.17 percent of its market value.  For taxes 
        payable in 1992, the market value of class 1a property that 
        exceeds $72,000 but does not exceed $115,000 has a class rate of 
        two percent of its market value; and the market value of class 
        1a property that exceeds $115,000 has a class rate of 2.5 
        percent of its market value.  For taxes payable in 1993 and 
        thereafter, the market value of class 1a property that exceeds 
        $72,000 has a class rate of two percent. 
           (b) Class 1b property includes homestead real estate or 
        homestead manufactured homes used for the purposes of a 
        homestead by 
           (1) any blind person, if the blind person is the owner 
        thereof or if the blind person and the blind person's spouse are 
        the sole owners thereof; or 
           (2) any person, hereinafter referred to as "veteran," who: 
           (i) served in the active military or naval service of the 
        United States; and 
           (ii) is entitled to compensation under the laws and 
        regulations of the United States for permanent and total 
        service-connected disability due to the loss, or loss of use, by 
        reason of amputation, ankylosis, progressive muscular 
        dystrophies, or paralysis, of both lower extremities, such as to 
        preclude motion without the aid of braces, crutches, canes, or a 
        wheelchair; and 
           (iii) has acquired a special housing unit with special 
        fixtures or movable facilities made necessary by the nature of 
        the veteran's disability, or the surviving spouse of the 
        deceased veteran for as long as the surviving spouse retains the 
        special housing unit as a homestead; or 
           (3) any person who: 
           (i) is permanently and totally disabled and 
           (ii) receives 90 percent or more of total income from 
           (A) aid from any state as a result of that disability; or 
           (B) supplemental security income for the disabled; or 
           (C) workers' compensation based on a finding of total and 
        permanent disability; or 
           (D) social security disability, including the amount of a 
        disability insurance benefit which is converted to an old age 
        insurance benefit and any subsequent cost of living increases; 
        or 
           (E) aid under the Federal Railroad Retirement Act of 1937, 
        United States Code Annotated, title 45, section 228b(a)5; or 
           (F) a pension from any local government retirement fund 
        located in the state of Minnesota as a result of that 
        disability; or 
           (4) any person who is permanently and totally disabled and 
        whose household income as defined in section 290A.03, 
        subdivision 5, is 150 percent or less of the federal poverty 
        level. 
           Property is classified and assessed under clause (4) only 
        if the government agency or income-providing source certifies, 
        upon the request of the property owner homestead occupant, that 
        the property owner homestead occupant satisfies the disability 
        requirements of this subdivision paragraph. 
           Property is classified and assessed pursuant to clause (1) 
        only if the commissioner of jobs and training certifies to the 
        assessor that the owner of the property homestead occupant 
        satisfies the requirements of this subdivision paragraph.  
           Permanently and totally disabled for the purpose of this 
        subdivision means a condition which is permanent in nature and 
        totally incapacitates the person from working at an occupation 
        which brings the person an income.  The first $32,000 market 
        value of class 1b property has a net class rate of .45 percent 
        of its market value and a gross class rate of .87 percent of its 
        market value.  The remaining market value of class 1b property 
        has a gross or net class rate using the rates for class 1 or 
        class 2a property, whichever is appropriate, of similar market 
        value.  
           (c) Class 1c property is commercial use real property that 
        abuts a lakeshore line and is devoted to temporary and seasonal 
        residential occupancy for recreational purposes but not devoted 
        to commercial purposes for more than 250 days in the year 
        preceding the year of assessment, and that includes a portion 
        used as a homestead by the owner, which includes a dwelling 
        occupied as a homestead by a shareholder of a corporation that 
        owns the resort or a partner in a partnership that owns the 
        resort, even if the title to the homestead is held by the 
        corporation or partnership.  For purposes of this clause, 
        property is devoted to a commercial purpose on a specific day if 
        any portion of the property, excluding the portion used 
        exclusively as a homestead, is used for residential occupancy 
        and a fee is charged for residential occupancy.  Class 1c 
        property has a class rate of one percent of total market value 
        for taxes payable in 1993 and thereafter with the following 
        limitation:  the area of the property must not exceed 100 feet 
        of lakeshore footage for each cabin or campsite located on the 
        property up to a total of 800 feet and 500 feet in depth, 
        measured away from the lakeshore.  
           Sec. 19.  Minnesota Statutes 1993 Supplement, section 
        273.13, subdivision 25, is amended to read: 
           Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
        estate containing four or more units and used or held for use by 
        the owner or by the tenants or lessees of the owner as a 
        residence for rental periods of 30 days or more.  Class 4a also 
        includes hospitals licensed under sections 144.50 to 144.56, 
        other than hospitals exempt under section 272.02, and contiguous 
        property used for hospital purposes, without regard to whether 
        the property has been platted or subdivided.  Class 4a property 
        has a class rate of 3.5 percent of market value for taxes 
        payable in 1992, and 3.4 percent of market value for taxes 
        payable in 1993 and thereafter. 
           (b) Class 4b includes: 
           (1) residential real estate containing less than four 
        units, other than seasonal residential, and recreational; 
           (2) manufactured homes not classified under any other 
        provision; 
           (3) a dwelling, garage, and surrounding one acre of 
        property on a nonhomestead farm classified under subdivision 23, 
        paragraph (b).  
           Class 4b property has a class rate of 2.8 percent of market 
        value for taxes payable in 1992, 2.5 percent of market value for 
        taxes payable in 1993, and 2.3 percent of market value for taxes 
        payable in 1994 and thereafter. 
           (c) Class 4c property includes: 
           (1) a structure that is:  
           (i) situated on real property that is used for housing for 
        the elderly or for low- and moderate-income families as defined 
        in Title II, as amended through December 31, 1990, of the 
        National Housing Act or the Minnesota housing finance agency law 
        of 1971, as amended, or rules promulgated by the agency and 
        financed by a direct federal loan or federally insured loan made 
        pursuant to Title II of the Act; or 
           (ii) situated on real property that is used for housing the 
        elderly or for low- and moderate-income families as defined by 
        the Minnesota housing finance agency law of 1971, as amended, or 
        rules adopted by the agency pursuant thereto and financed by a 
        loan made by the Minnesota housing finance agency pursuant to 
        the provisions of the act.  
           This clause applies only to property of a nonprofit or 
        limited dividend entity.  Property is classified as class 4c 
        under this clause for 15 years from the date of the completion 
        of the original construction or substantial rehabilitation, or 
        for the original term of the loan.  
           (2) a structure that is: 
           (i) situated upon real property that is used for housing 
        lower income families or elderly or handicapped persons, as 
        defined in section 8 of the United States Housing Act of 1937, 
        as amended; and 
           (ii) owned by an entity which has entered into a housing 
        assistance payments contract under section 8 which provides 
        assistance for 100 percent of the dwelling units in the 
        structure, other than dwelling units intended for management or 
        maintenance personnel.  Property is classified as class 4c under 
        this clause for the term of the housing assistance payments 
        contract, including all renewals, or for the term of its 
        permanent financing, whichever is shorter; and 
           (3) a qualified low-income building as defined in section 
        42(c)(2) of the Internal Revenue Code of 1986, as amended 
        through December 31, 1990, that (i) receives a low-income 
        housing credit under section 42 of the Internal Revenue Code of 
        1986, as amended through December 31, 1990; or (ii) meets the 
        requirements of that section and receives public financing, 
        except financing provided under sections 469.174 to 469.179, 
        which contains terms restricting the rents; or (iii) meets the 
        requirements of section 273.1317.  Classification pursuant to 
        this clause is limited to a term of 15 years.  The public 
        financing received must be from at least one of the following 
        sources:  government issued bonds exempt from taxes under 
        section 103 of the Internal Revenue Code of 1986, as amended 
        through December 31, 1993, the proceeds of which are used for 
        the acquisition or rehabilitation of the building; programs 
        under section 221(d)(3), 202, or 236, of Title II of the 
        National Housing Act; rental housing program funds under Section 
        8 of the United States Housing Act of 1937 or the market rate 
        family graduated payment mortgage program funds administered by 
        the Minnesota housing finance agency that are used for the 
        acquisition or rehabilitation of the building; public financing 
        provided by a local government used for the acquisition or 
        rehabilitation of the building, including grants or loans from 
        federal community development block grants, HOME block grants, 
        or residential rental bonds issued under chapter 474A; or other 
        rental housing program funds provided by the Minnesota housing 
        finance agency for the acquisition or rehabilitation of the 
        building. 
           For all properties described in clauses (1), (2), and (3) 
        and in paragraph (d), the market value determined by the 
        assessor must be based on the normal approach to value using 
        normal unrestricted rents unless the owner of the property 
        elects to have the property assessed under Laws 1991, chapter 
        291, article 1, section 55.  If the owner of the property elects 
        to have the market value determined on the basis of the actual 
        restricted rents, as provided in Laws 1991, chapter 291, article 
        1, section 55, the property will be assessed at the rate 
        provided for class 4a or class 4b property, as appropriate.  
        Properties described in clauses (1)(ii), (3), and (4) may apply 
        to the assessor for valuation under Laws 1991, chapter 291, 
        article 1, section 55.  The land on which these structures are 
        situated has the class rate given in paragraph (b) if the 
        structure contains fewer than four units, and the class rate 
        given in paragraph (a) if the structure contains four or more 
        units.  This clause applies only to the property of a nonprofit 
        or limited dividend entity.  
           (4) a parcel of land, not to exceed one acre, and its 
        improvements or a parcel of unimproved land, not to exceed one 
        acre, if it is owned by a neighborhood real estate trust and at 
        least 60 percent of the dwelling units, if any, on all land 
        owned by the trust are leased to or occupied by lower income 
        families or individuals.  This clause does not apply to any 
        portion of the land or improvements used for nonresidential 
        purposes.  For purposes of this clause, a lower income family is 
        a family with an income that does not exceed 65 percent of the 
        median family income for the area, and a lower income individual 
        is an individual whose income does not exceed 65 percent of the 
        median individual income for the area, as determined by the 
        United States Secretary of Housing and Urban Development.  For 
        purposes of this clause, "neighborhood real estate trust" means 
        an entity which is certified by the governing body of the 
        municipality in which it is located to have the following 
        characteristics: 
           (a) it is a nonprofit corporation organized under chapter 
        317A; 
           (b) it has as its principal purpose providing housing for 
        lower income families in a specific geographic community 
        designated in its articles or bylaws; 
           (c) it limits membership with voting rights to residents of 
        the designated community; and 
           (d) it has a board of directors consisting of at least 
        seven directors, 60 percent of whom are members with voting 
        rights and, to the extent feasible, 25 percent of whom are 
        elected by resident members of buildings owned by the trust; and 
           (5) except as provided in subdivision 22, paragraph (c), 
        real property devoted to temporary and seasonal residential 
        occupancy for recreation purposes, including real property 
        devoted to temporary and seasonal residential occupancy for 
        recreation purposes and not devoted to commercial purposes for 
        more than 250 days in the year preceding the year of 
        assessment.  For purposes of this clause, property is devoted to 
        a commercial purpose on a specific day if any portion of the 
        property is used for residential occupancy, and a fee is charged 
        for residential occupancy.  Class 4c also includes commercial 
        use real property used exclusively for recreational purposes in 
        conjunction with class 4c property devoted to temporary and 
        seasonal residential occupancy for recreational purposes, up to 
        a total of two acres, provided the property is not devoted to 
        commercial recreational use for more than 250 days in the year 
        preceding the year of assessment and is located within two miles 
        of the class 4c property with which it is used.  Class 4c 
        property classified in this clause also includes the remainder 
        of class 1c resorts.  Owners of real property devoted to 
        temporary and seasonal residential occupancy for recreation 
        purposes and all or a portion of which was devoted to commercial 
        purposes for not more than 250 days in the year preceding the 
        year of assessment desiring classification as class 1c or 4c, 
        must submit a declaration to the assessor designating the cabins 
        or units occupied for 250 days or less in the year preceding the 
        year of assessment by January 15 of the assessment year.  Those 
        cabins or units and a proportionate share of the land on which 
        they are located will be designated class 1c or 4c as otherwise 
        provided.  The remainder of the cabins or units and a 
        proportionate share of the land on which they are located will 
        be designated as class 3a.  The first $100,000 of the market 
        value of the remainder of the cabins or units and a 
        proportionate share of the land on which they are located shall 
        have a class rate of three percent.  The owner of property 
        desiring designation as class 1c or 4c property must provide 
        guest registers or other records demonstrating that the units 
        for which class 1c or 4c designation is sought were not occupied 
        for more than 250 days in the year preceding the assessment if 
        so requested.  The portion of a property operated as a (1) 
        restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 
        facility operated on a commercial basis not directly related to 
        temporary and seasonal residential occupancy for recreation 
        purposes shall not qualify for class 1c or 4c; 
           (6) real property up to a maximum of one acre of land owned 
        by a nonprofit community service oriented organization; provided 
        that the property is not used for a revenue-producing activity 
        for more than six days in the calendar year preceding the year 
        of assessment and the property is not used for residential 
        purposes on either a temporary or permanent basis.  For purposes 
        of this clause, a "nonprofit community service oriented 
        organization" means any corporation, society, association, 
        foundation, or institution organized and operated exclusively 
        for charitable, religious, fraternal, civic, or educational 
        purposes, and which is exempt from federal income taxation 
        pursuant to section 501(c)(3), (10), or (19) of the Internal 
        Revenue Code of 1986, as amended through December 31, 1990.  For 
        purposes of this clause, "revenue-producing activities" shall 
        include but not be limited to property or that portion of the 
        property that is used as an on-sale intoxicating liquor or 3.2 
        percent malt liquor establishment licensed under chapter 340A, a 
        restaurant open to the public, bowling alley, a retail store, 
        gambling conducted by organizations licensed under chapter 349, 
        an insurance business, or office or other space leased or rented 
        to a lessee who conducts a for-profit enterprise on the 
        premises.  Any portion of the property which is used for 
        revenue-producing activities for more than six days in the 
        calendar year preceding the year of assessment shall be assessed 
        as class 3a.  The use of the property for social events open 
        exclusively to members and their guests for periods of less than 
        24 hours, when an admission is not charged nor any revenues are 
        received by the organization shall not be considered a 
        revenue-producing activity; 
           (7) post-secondary student housing of not more than one 
        acre of land that is owned by a nonprofit corporation organized 
        under chapter 317A and is used exclusively by a student 
        cooperative, sorority, or fraternity for on-campus housing or 
        housing located within two miles of the border of a college 
        campus; and 
           (8) manufactured home parks as defined in section 327.14, 
        subdivision 3. 
           Class 4c property has a class rate of 2.3 percent of market 
        value, except that (i) each parcel of seasonal residential 
        recreational property not used for commercial purposes under 
        clause (5) has a class rate of 2.2 percent of market value for 
        taxes payable in 1992, and for taxes payable in 1993 and 
        thereafter, the first $72,000 of market value on each parcel has 
        a class rate of two percent and the market value of each parcel 
        that exceeds $72,000 has a class rate of 2.5 percent, and (ii) 
        manufactured home parks assessed under clause (8) have a class 
        rate of two percent for taxes payable in 1993, 1994, and 1995 
        only.  
           (d) Class 4d property includes: 
           (1) a structure that is: 
           (i) situated on real property that is used for housing for 
        the elderly or for low and moderate income families as defined 
        by the Farmers Home Administration; 
           (ii) located in a municipality of less than 10,000 
        population; and 
           (iii) financed by a direct loan or insured loan from the 
        Farmers Home Administration.  Property is classified under this 
        clause for 15 years from the date of the completion of the 
        original construction or for the original term of the loan.  
           The class rates in paragraph (c), clauses (1), (2), and (3) 
        and this clause apply to the properties described in them, only 
        in proportion to occupancy of the structure by elderly or 
        handicapped persons or low and moderate income families as 
        defined in the applicable laws unless construction of the 
        structure had been commenced prior to January 1, 1984; or the 
        project had been approved by the governing body of the 
        municipality in which it is located prior to June 30, 1983; or 
        financing of the project had been approved by a federal or state 
        agency prior to June 30, 1983.  For those properties, 4c or 4d 
        classification is available only for those units meeting the 
        requirements of section 273.1318. 
           Classification under this clause is only available to 
        property of a nonprofit or limited dividend entity. 
           In the case of a structure financed or refinanced under any 
        federal or state mortgage insurance or direct loan program 
        exclusively for housing for the elderly or for housing for the 
        handicapped, a unit shall be considered occupied so long as it 
        is actually occupied by an elderly or handicapped person or, if 
        vacant, is held for rental to an elderly or handicapped person. 
           (2) For taxes payable in 1992, 1993 and 1994, only, 
        buildings and appurtenances, together with the land upon which 
        they are located, leased by the occupant under the community 
        lending model lease-purchase mortgage loan program administered 
        by the Federal National Mortgage Association, provided the 
        occupant's income is no greater than 60 percent of the county or 
        area median income, adjusted for family size and the building 
        consists of existing single family or duplex housing.  The lease 
        agreement must provide for a portion of the lease payment to be 
        escrowed as a nonrefundable down payment on the housing.  To 
        qualify under this clause, the taxpayer must apply to the county 
        assessor by May 30 of each year.  The application must be 
        accompanied by an affidavit or other proof required by the 
        assessor to determine qualification under this clause. 
           (3) Qualifying buildings and appurtenances, together with 
        the land upon which they are located, leased for a period of up 
        to five years by the occupant under a lease-purchase program 
        administered by the Minnesota housing finance agency or a 
        housing and redevelopment authority authorized under sections 
        469.001 to 469.047, provided the occupant's income is no greater 
        than 80 percent of the county or area median income, adjusted 
        for family size, and the building consists of two or less 
        dwelling units.  The lease agreement must provide for a portion 
        of the lease payment to be escrowed as a nonrefundable down 
        payment on the housing.  The administering agency shall verify 
        the occupants income eligibility and certify to the county 
        assessor that the occupant meets the income criteria under this 
        paragraph.  To qualify under this clause, the taxpayer must 
        apply to the county assessor by May 30 of each year.  For 
        purposes of this section, "qualifying buildings and 
        appurtenances" shall be defined as one or two unit residential 
        buildings which are unoccupied and have been abandoned and 
        boarded for at least six months. 
           Class 4d property has a class rate of two percent of market 
        value except that property classified under clause (3), shall 
        have the same class rate as class 1a property. 
           (e) Residential rental property that would otherwise be 
        assessed as class 4 property under paragraph (a); paragraph (b), 
        clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
        (4), is assessed at the class rate applicable to it under 
        Minnesota Statutes 1988, section 273.13, if it is found to be a 
        substandard building under section 273.1316.  Residential rental 
        property that would otherwise be assessed as class 4 property 
        under paragraph (d) is assessed at 2.3 percent of market value 
        if it is found to be a substandard building under section 
        273.1316. 
           Sec. 20.  Minnesota Statutes 1992, section 273.134, is 
        amended to read: 
           273.134 [TACONITE AND IRON ORE AREAS; TAX RELIEF AREA; 
        DEFINITIONS.] 
           For purposes of this section and section 273.135, 
        "municipality" means any city, however organized, or town, and 
        the applicable assessment date is the date as of which property 
        is listed and assessed for the tax in question. 
           For the purposes of section 273.135 "tax relief area" means 
        the geographic area contained, within the boundaries of a school 
        district which contains a municipality which meets the following 
        qualifications: 
           (1) it is a municipality in which the assessed valuation of 
        unmined iron ore on May 1, 1941, was not less than 40 percent of 
        the assessed valuation of all real property and in which, as of 
        the applicable assessment date, the assessed valuation of 
        unmined iron ore is not more than 60 percent of the assessed 
        valuation of all real property; or 
           (2) it is a municipality in which, on January 1, 1977 or 
        the applicable assessment date, there is a taconite 
        concentrating plant or where taconite is mined or quarried or 
        where there is located an electric generating plant which 
        qualifies as a taconite facility. 
           Sec. 21.  Minnesota Statutes 1993 Supplement, section 
        273.1398, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
        terms defined in this subdivision have the meanings given them. 
           (b) "Unique taxing jurisdiction" means the geographic area 
        subject to the same set of local tax rates. 
           (c) "Net tax capacity" means the product of (i) the 
        appropriate net class rates for the year in which the aid is 
        payable, except that for aid payable in 1993 the class rate 
        applicable to class 4a shall be 3.5 percent; and the class rate 
        applicable to class 4b shall be 2.65 percent; and for aid 
        payable in 1994 the class rate applicable to class 4b shall be 
        2.4 percent and the class rate applicable to class 2a property 
        over $115,000 market value and less than 320 acres is 1.15 
        percent, and (ii) estimated market values for the assessment two 
        years prior to that in which aid is payable.  The exclusion of 
        the value of the house, garage, and one acre from the first tier 
        of agricultural homestead property must not be considered in 
        determining net tax capacity for purposes of this paragraph for 
        aids payable in 1994.  "Total net tax capacity" means the net 
        tax capacities for all property within the unique taxing 
        jurisdiction.  The total net tax capacity used shall be reduced 
        by the sum of (1) the unique taxing jurisdiction's net tax 
        capacity of commercial industrial property as defined in section 
        473F.02, subdivision 3, multiplied by the ratio determined 
        pursuant to section 473F.08, subdivision 6, for the 
        municipality, as defined in section 473F.02, subdivision 8, in 
        which the unique taxing jurisdiction is located, (2) the net tax 
        capacity of the captured value of tax increment financing 
        districts as defined in section 469.177, subdivision 2, and (3) 
        the net tax capacity of transmission lines deducted from a local 
        government's total net tax capacity under section 273.425.  For 
        purposes of determining the net tax capacity of property 
        referred to in clauses (1) and, (2), and (3), the net tax 
        capacity shall be multiplied by the ratio of the highest class 
        rate for class 3a property for taxes payable in the year in 
        which the aid is payable to the highest class rate for class 3a 
        property in the prior year.  Net tax capacity cannot be less 
        than zero. 
           (d) "Previous net tax capacity" means the product of the 
        appropriate net class rates for the year previous to the year in 
        which the aid is payable, and estimated market values for the 
        assessment two years prior to that in which aid is payable.  
        "Total previous net tax capacity" means the previous net tax 
        capacities for all property within the unique taxing 
        jurisdiction.  The total previous net tax capacity shall be 
        reduced by the sum of (1) the unique taxing jurisdiction's 
        previous net tax capacity of commercial-industrial property as 
        defined in section 473F.02, subdivision 3, multiplied by the 
        ratio determined pursuant to section 473F.08, subdivision 6, for 
        the municipality, as defined in section 473F.02, subdivision 8, 
        in which the unique taxing jurisdiction is located, (2) the 
        previous net tax capacity of the captured value of tax increment 
        financing districts as defined in section 469.177, subdivision 
        2, and (3) the previous net tax capacity of transmission lines 
        deducted from a local government's total net tax capacity under 
        section 273.425.  Previous net tax capacity cannot be less than 
        zero. 
           (e) "Equalized market values" are market values that have 
        been equalized by dividing the assessor's estimated market value 
        for the second year prior to that in which the aid is payable by 
        the assessment sales ratios determined by class in the 
        assessment sales ratio study conducted by the department of 
        revenue pursuant to section 124.2131 in the second year prior to 
        that in which the aid is payable.  The equalized market values 
        shall equal the unequalized market values divided by the 
        assessment sales ratio. 
           (f) "Equalized school levies" means the amounts levied for: 
           (1) general education under section 124A.23, subdivision 2; 
           (2) supplemental revenue under section 124A.22, subdivision 
        8a; 
           (3) capital expenditure facilities revenue under section 
        124.243, subdivision 3; 
           (4) capital expenditure equipment revenue under section 
        124.244, subdivision 2; 
           (5) basic transportation under section 124.226, subdivision 
        1; and 
           (6) referendum revenue under section 124A.03. 
           (g) "Current local tax rate" means the quotient derived by 
        dividing the taxes levied within a unique taxing jurisdiction 
        for taxes payable in the year prior to that for which aids are 
        being calculated by the total previous net tax capacity of the 
        unique taxing jurisdiction.  
           (h) For purposes of calculating and allocating homestead 
        and agricultural credit aid authorized pursuant to subdivision 2 
        and the disparity reduction aid authorized in subdivision 3, 
        "gross taxes levied on all properties," "gross taxes," or "taxes 
        levied" means the total net tax capacity based taxes levied on 
        all properties except that levied on the captured value of tax 
        increment districts as defined in section 469.177, subdivision 
        2, and that levied on the portion of commercial industrial 
        properties' assessed value or gross tax capacity, as defined in 
        section 473F.02, subdivision 3, subject to the areawide tax as 
        provided in section 473F.08, subdivision 6, in a unique taxing 
        jurisdiction. "Gross taxes" are before any reduction for 
        disparity reduction aid but "taxes levied" are after any 
        reduction for disparity reduction aid.  Gross taxes levied or 
        taxes levied cannot be less than zero.  
           "Taxes levied" excludes equalized school levies. 
           (i) "Human services aids" means: 
           (1) aid to families with dependent children under sections 
        256.82, subdivision 1, and 256.935, subdivision 1; 
           (2) medical assistance under sections 256B.041, subdivision 
        5, and 256B.19, subdivision 1; 
           (3) general assistance medical care under section 256D.03, 
        subdivision 6; 
           (4) general assistance under section 256D.03, subdivision 
        2; 
           (5) work readiness under section 256D.03, subdivision 2; 
           (6) emergency assistance under section 256.871, subdivision 
        6; 
           (7) Minnesota supplemental aid under section 256D.36, 
        subdivision 1; 
           (8) preadmission screening and alternative care grants; 
           (9) work readiness services under section 256D.051; 
           (10) case management services under section 256.736, 
        subdivision 13; 
           (11) general assistance claims processing, medical 
        transportation and related costs; and 
           (12) medical assistance, medical transportation and related 
        costs. 
           (j) "Household adjustment factor" means the number of 
        households for the second most recent year preceding that in 
        which the aids are payable divided by the number of households 
        for the third most recent year.  The household adjustment factor 
        cannot be less than one.  
           (k) "Growth adjustment factor" means the household 
        adjustment factor in the case of counties.  In the case of 
        cities, towns, school districts, and special taxing districts, 
        the growth adjustment factor equals one.  The growth adjustment 
        factor cannot be less than one.  
           (l) For aid payable in 1992 and subsequent years, 
        "homestead and agricultural credit base" means the previous 
        year's certified homestead and agricultural credit aid 
        determined under subdivision 2 less any permanent aid reduction 
        in the previous year to homestead and agricultural credit aid 
        under section 477A.0132, plus, for aid payable in 1992, fiscal 
        disparity homestead and agricultural credit aid under 
        subdivision 2b.  
           (m) "Net tax capacity adjustment" means (1) the total 
        previous net tax capacity minus the total net tax capacity, 
        multiplied by (2) the unique taxing jurisdiction's current local 
        tax rate.  The net tax capacity adjustment cannot be less than 
        zero. 
           (n) "Fiscal disparity adjustment" means the difference 
        between (1) a taxing jurisdiction's fiscal disparity 
        distribution levy under section 473F.08, subdivision 3, clause 
        (a), for taxes payable in the year prior to that for which aids 
        are being calculated, and (2) the same distribution levy 
        multiplied by the ratio of the highest class rate for class 3 
        property for taxes payable in the year prior to that for which 
        aids are being calculated to the highest class rate for class 3 
        property for taxes payable in the second prior year to that for 
        which aids are being calculated.  In the case of school 
        districts, the fiscal disparity distribution levy shall exclude 
        that part of the levy attributable to equalized school levies. 
           Sec. 22.  Minnesota Statutes 1993 Supplement, section 
        273.1398, subdivision 3, is amended to read: 
           Subd. 3.  [DISPARITY REDUCTION AID.] (a) For taxes payable 
        in 1990 1995, and subsequent years, the amount of disparity aid 
        certified for each taxing district within each unique taxing 
        jurisdiction for taxes payable in the prior year shall be 
        multiplied by the ratio of (1) the jurisdiction's tax capacity 
        using the class rates for taxes payable in the year for which 
        aid is being computed, to (2) its tax capacity using the class 
        rates for taxes payable in the year prior to that for which aid 
        is being computed, both based upon market values for taxes 
        payable in the year prior to that for which aid is being 
        computed.  For the purposes of this aid determination, disparity 
        reduction aid certified for taxes payable in the prior year for 
        a taxing entity other than a town or school district is deemed 
        to be county government disparity reduction aid.  For taxes 
        payable in 1992 and subsequent years, the amount of disparity 
        aid certified to each taxing jurisdiction shall be reduced by 
        any reductions required in the current year or permanent 
        reductions required in previous years under section 477A.0132. 
           (b) The disparity reduction aid is allocated to each local 
        government levying taxes in the unique taxing jurisdiction in 
        the proportion that the local government's payable gross taxes 
        bears to the total payable gross taxes levied within the unique 
        taxing jurisdiction. 
           Sec. 23.  Minnesota Statutes 1992, section 273.1399, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CALCULATION OF EDUCATION AIDS.] For each school 
        district containing qualifying captured net tax capacity, the 
        commissioner of education shall compute a hypothetical state aid 
        amount that would be paid to the school district if the 
        qualifying captured net tax capacity were divided by the sales 
        ratio and included in the school district's adjusted tax 
        capacity for purposes of calculating equalized levies as defined 
        in section 273.1398, subdivision 2a 1, and associated state aids.
        The commissioner of education shall notify the commissioner of 
        revenue of the difference between the actual aid paid and the 
        hypothetical aid amounts calculated for each school district, 
        broken down by the municipality that approved the tax increment 
        financing district containing the qualifying captured net tax 
        capacity.  The resulting amount is the reduction in state tax 
        increment financing aid. 
           Sec. 24.  Minnesota Statutes 1993 Supplement, section 
        273.166, subdivision 3, is amended to read: 
           Subd. 3.  [AID CALCULATION.] The commissioner of revenue 
        shall make the calculation required in subdivision 2 and 
        annually pay manufactured home homestead and agricultural credit 
        aid to the local governments at the times provided in section 
        477A.015 473H.10 for local governments other than school 
        districts.  Aid payments to the school districts must be 
        certified to the commissioner of education and paid under 
        section 273.1392. 
           Sec. 25.  Minnesota Statutes 1992, section 275.065, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROPOSED LEVY.] Notwithstanding any law or 
        charter to the contrary, on or before September 15, each taxing 
        authority, other than a school district, shall adopt a proposed 
        budget and each taxing authority shall certify to the county 
        auditor the proposed or, in the case of a town, the final 
        property tax levy for taxes payable in the following year.  If 
        the board of estimate and taxation or any similar board that 
        establishes maximum tax levies for taxing jurisdictions within a 
        first class city certifies the maximum property tax levies for 
        funds under its jurisdiction by charter to the county auditor by 
        September 15, the city shall be deemed to have certified its 
        levies for those taxing jurisdictions.  For purposes of this 
        section, "taxing authority" includes all home rule and statutory 
        cities, towns, counties, school districts, and special taxing 
        districts as defined in section 275.066.  The commissioner of 
        revenue shall determine what constitutes a special taxing 
        district for purposes of this section.  Intermediate school 
        districts that levy a tax under chapter 124 or 136D, joint 
        powers boards established under sections 124.491 to 124.495, and 
        common school districts No. 323, Franconia, and No. 815, 
        Prinsburg, are also special taxing districts for purposes of 
        this section.  
           Sec. 26.  Minnesota Statutes 1993 Supplement, section 
        275.065, subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
        county auditor shall prepare and the county treasurer shall 
        deliver after November 10 and on or before November 24 each 
        year, by first class mail to each taxpayer at the address listed 
        on the county's current year's assessment roll, a notice of 
        proposed property taxes and, in the case of a town, final 
        property taxes.  
           (b) The commissioner of revenue shall prescribe the form of 
        the notice. 
           (c) The notice must inform taxpayers that it contains the 
        amount of property taxes each taxing authority other than a town 
        proposes to collect for taxes payable the following year and, 
        for a town, the amount of its final levy.  It must clearly state 
        that each taxing authority, including regional library districts 
        established under section 134.201, and including the 
        metropolitan taxing districts as defined in paragraph (i), but 
        excluding all other special taxing districts and towns, will 
        hold a public meeting to receive public testimony on the 
        proposed budget and proposed or final property tax levy, or, in 
        case of a school district, on the current budget and proposed 
        property tax levy.  It must clearly state the time and place of 
        each taxing authority's meeting and an address where comments 
        will be received by mail.  For 1993, the notice must clearly 
        state that each taxing authority holding a public meeting will 
        describe the increases or decreases of the total budget, 
        including employee and independent contractor compensation in 
        the prior year, current year, and the proposed budget year.  
           (d) The notice must state for each parcel: 
           (1) the market value of the property as determined under 
        section 273.11, and used for computing property taxes payable in 
        the following year and for taxes payable in the current year; 
        and, in the case of residential property, whether the property 
        is classified as homestead or nonhomestead.  The notice must 
        clearly inform taxpayers of the years to which the market values 
        apply and that the values are final values; 
           (2) by county, city or town, school district excess 
        referenda levy, remaining school district levy, regional library 
        district, if in existence, the total of the metropolitan special 
        taxing districts as defined in paragraph (i) and the sum of the 
        remaining special taxing districts, and as a total of the taxing 
        authorities, including all special taxing districts, the 
        proposed or, for a town, final net tax on the property for taxes 
        payable the following year and the actual tax for taxes payable 
        the current year.  For the purposes of this subdivision, "school 
        district excess referenda levy" means school district taxes for 
        operating purposes approved at referendums, including those 
        taxes based on net tax capacity as well as those based on market 
        value.  "School district excess referenda levy" does not include 
        school district taxes for capital expenditures approved at 
        referendums or school district taxes to pay for the debt service 
        on bonds approved at referenda.  In the case of the city of 
        Minneapolis, the levy for the Minneapolis library board and the 
        levy for Minneapolis park and recreation shall be listed 
        separately from the remaining amount of the city's levy.  In the 
        case of a parcel where tax increment or the fiscal disparities 
        areawide tax applies, the proposed tax levy on the captured 
        value or the proposed tax levy on the tax capacity subject to 
        the areawide tax must each be stated separately and not included 
        in the sum of the special taxing districts; and 
           (3) the increase or decrease in the amounts in clause (2) 
        from taxes payable in the current year to proposed or, for a 
        town, final taxes payable the following year, expressed as a 
        dollar amount and as a percentage. 
           (e) The notice must clearly state that the proposed or 
        final taxes do not include the following: 
           (1) special assessments; 
           (2) levies approved by the voters after the date the 
        proposed taxes are certified, including bond referenda, school 
        district levy referenda, and levy limit increase referenda; 
           (3) amounts necessary to pay cleanup or other costs due to 
        a natural disaster occurring after the date the proposed taxes 
        are certified; 
           (4) amounts necessary to pay tort judgments against the 
        taxing authority that become final after the date the proposed 
        taxes are certified; 
           (5) any additional amount levied in lieu of a local sales 
        and use tax, unless this amount is included in the proposed or 
        final taxes; and 
           (6) the contamination tax imposed on properties which 
        received market value reductions for contamination. 
           (f) Except as provided in subdivision 7, failure of the 
        county auditor to prepare or the county treasurer to deliver the 
        notice as required in this section does not invalidate the 
        proposed or final tax levy or the taxes payable pursuant to the 
        tax levy. 
           (g) If the notice the taxpayer receives under this section 
        lists the property as nonhomestead and the homeowner provides 
        satisfactory documentation to the county assessor that the 
        property is owned and has been used as the owner's homestead 
        prior to June 1 of that year, the assessor shall reclassify the 
        property to homestead for taxes payable in the following year. 
           (h) In the case of class 4 residential property used as a 
        residence for lease or rental periods of 30 days or more, the 
        taxpayer must either: 
           (1) mail or deliver a copy of the notice of proposed 
        property taxes to each tenant, renter, or lessee; or 
           (2) post a copy of the notice in a conspicuous place on the 
        premises of the property.  
           (i) For purposes of this subdivision, subdivisions 5a and 
        6, "metropolitan special taxing districts" means the following 
        taxing districts in the seven-county metropolitan area that levy 
        a property tax for any of the specified purposes listed below: 
           (1) metropolitan council under section 473.132, 473.167, 
        473.249, 473.325, 473.521, 473.547, or 473.834; 
           (2) metropolitan airports commission under section 473.667, 
        473.671, or 473.672; 
           (3) regional transit board under section 473.446; and 
           (4) metropolitan mosquito control commission under section 
        473.711. 
           For purposes of this section, any levies made by the 
        regional rail authorities in the county of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
        398A shall be included with the appropriate county's levy and 
        shall be discussed at that county's public hearing. 
           The notice must be mailed or posted by the taxpayer by 
        November 27 or within three days of receipt of the notice, 
        whichever is later.  A taxpayer may notify the county treasurer 
        of the address of the taxpayer, agent, caretaker, or manager of 
        the premises to which the notice must be mailed in order to 
        fulfill the requirements of this paragraph. 
           Sec. 27.  Minnesota Statutes 1993 Supplement, section 
        275.065, subdivision 6, is amended to read: 
           Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
        Between November 29 and December 20, the governing bodies of the 
        city, county, metropolitan special taxing districts as defined 
        in subdivision 3, paragraph (i), and regional library districts 
        shall each hold a public hearing to discuss and seek public 
        comment on its final budget and property tax levy for taxes 
        payable in the following year, and the governing body of the 
        school district shall hold a public hearing to review its 
        current budget and proposed property tax levy for taxes payable 
        in the following year.  The metropolitan special taxing 
        districts shall be required to hold only a single joint public 
        hearing, the location of which will be determined by the 
        affected metropolitan agencies. 
           At a subsequent hearing, the taxing authority, other than a 
        school district, may amend the proposed budget and property tax 
        levy and must adopt a final budget and property tax levy, and 
        the school district may amend the proposed property tax levy and 
        must adopt a final property tax levy.  
           The property tax levy certified under section 275.07 by a 
        city, county, metropolitan special taxing district, regional 
        library district, or school district must not exceed the 
        proposed levy determined under subdivision 1, except by an 
        amount up to the sum of the following amounts: 
           (1) the amount of a school district levy whose voters 
        approved a referendum to increase taxes under section 124.82, 
        subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
        or 136C.411, after the proposed levy was certified; 
           (2) the amount of a city or county levy approved by the 
        voters after the proposed levy was certified; 
           (3) the amount of a levy to pay principal and interest on 
        bonds issued or approved by the voters under section 475.58 
        after the proposed levy was certified; 
           (4) the amount of a levy to pay costs due to a natural 
        disaster occurring after the proposed levy was certified, if 
        that amount is approved by the commissioner of revenue under 
        subdivision 6a; 
           (5) the amount of a levy to pay tort judgments against a 
        taxing authority that become final after the proposed levy was 
        certified, if the amount is approved by the commissioner of 
        revenue under subdivision 6a; 
           (6) the amount of an increase in levy limits certified to 
        the taxing authority by the commissioner of education after the 
        proposed levy was certified; and 
           (7) the amount required under section 124.755. 
           At the hearing under this subdivision, the percentage 
        increase in property taxes proposed by the taxing authority, if 
        any, and the specific purposes for which property tax revenues 
        are being increased must be discussed.  At the hearing held in 
        1993 only, specific information for previous year, current year, 
        and proposed budget year must be presented on: 
           (i) percent of total proposed budget representing total 
        compensation cost; 
           (ii) numbers of employees by general classification, and 
        whether full or part time; 
           (iii) number and budgeted expenditures for independent 
        contractors; and 
           (iv) the effect of budget increases or decreases on the 
        proposed property tax levy. 
           During the discussion, the governing body shall hear 
        comments regarding a proposed increase and explain the reasons 
        for the proposed increase.  The public shall be allowed to speak 
        and to ask questions.  At a subsequent hearing, the governing 
        body, other than the governing body of a school district, shall 
        adopt its final property tax levy prior to adopting its final 
        budget. 
           If the hearing is not completed on its scheduled date, the 
        taxing authority must announce, prior to adjournment of the 
        hearing, the date, time, and place for the continuation of the 
        hearing.  The continued hearing must be held at least five 
        business days but no more than 14 business days after the 
        original hearing. 
           The hearing must be held after 5:00 p.m. if scheduled on a 
        day other than Saturday.  No hearing may be held on a Sunday.  
        The governing body of a county shall hold a hearing on the 
        second Tuesday in December each year, and may hold additional 
        hearings on other dates before December 20 if necessary for the 
        convenience of county residents.  If the county needs a 
        continuation of its hearing, the continued hearing shall be held 
        on the third Tuesday in December.  If the third Tuesday in 
        December falls on December 21, the county's continuation hearing 
        shall be held on Monday, December 20.  The county auditor shall 
        provide for the coordination of hearing dates for all cities and 
        school districts within the county. 
           By August 10, each school board and the board of the 
        regional library district shall certify to the county auditors 
        of the counties in which the school district or regional library 
        district is located the dates on which it elects to hold its 
        hearings and any continuations.  If a school board or regional 
        library district does not certify the dates by August 10, the 
        auditor will assign the hearing date.  The dates elected or 
        assigned must not conflict with the county hearing dates.  The 
        Ramsey county auditor shall coordinate with the metropolitan 
        special taxing districts as defined in subdivision 3, paragraph 
        (i), a date on which the metropolitan special taxing districts 
        will hold their joint public hearing and any continuation.  The 
        metropolitan special taxing districts shall decide on mutually 
        agreeable dates for their joint public hearing and for any 
        continuation of that hearing and certify these dates to the 
        Ramsey county auditor on or before July 25.  By August 20, the 
        county auditor shall notify the clerks of the cities within the 
        county of the dates on which school districts, metropolitan 
        special taxing districts, and regional library districts have 
        elected to hold their hearings.  At the time a city certifies 
        its proposed levy under subdivision 1 it shall certify the dates 
        on which it elects to hold its hearings and any continuations.  
        The city must not select dates that conflict with the county 
        hearing dates, metropolitan special taxing district dates, or 
        with those elected by or assigned to the school districts or 
        regional library district in which the city is located. 
           The county hearing dates and the city, metropolitan special 
        taxing district, regional library district, and school district 
        hearing dates must be designated on the notices required under 
        subdivision 3.  The continuation dates need not be stated on the 
        notices.  
           This subdivision does not apply to towns and special taxing 
        districts other than regional library districts and metropolitan 
        special taxing districts. 
           Notwithstanding the requirements of this section, the 
        employer is required to meet and negotiate over employee 
        compensation as provided for in chapter 179A.  
           Sec. 28.  [275.066] [SPECIAL TAXING DISTRICTS; DEFINITION.] 
           For the purposes of property taxation and property tax 
        state aids, the term "special taxing districts" includes the 
        following entities: 
           (1) watershed districts under chapter 103D; 
           (2) sanitary districts under sections 115.18 to 115.37; 
           (3) regional sanitary sewer districts under sections 115.61 
        to 115.67; 
           (4) regional public library districts under section 
        134.201; 
           (5) park districts under chapter 398; 
           (6) regional railroad authorities under chapter 398A; 
           (7) hospital districts under sections 447.31 to 447.38; 
           (8) St. Cloud metropolitan transit commission under 
        sections 458A.01 to 458A.15; 
           (9) Duluth transit authority under sections 458A.21 to 
        458A.37; 
           (10) regional development commissions under sections 
        462.381 to 462.398; 
           (11) housing and redevelopment authorities under sections 
        469.001 to 469.047; 
           (12) port authorities under sections 469.048 to 469.068; 
           (13) economic development authorities under sections 
        469.090 to 469.1081; 
           (14) metropolitan council under sections 473.122 to 
        473.249; 
           (15) regional transit board under sections 473.371 to 
        473.449; 
           (16) metropolitan airports commission under sections 
        473.601 to 473.680; 
           (17) metropolitan mosquito control commission under 
        sections 473.701 to 473.716; 
           (18) Morrison county rural development financing authority 
        under Laws 1982, chapter 437, section 1; 
           (19) Croft Historical Park District under Laws 1984, 
        chapter 502, article 13, section 6; 
           (20) East Lake county medical clinic district under Laws 
        1989, chapter 211, sections 1 to 6; 
           (21) Floodwood area ambulance district under Laws 1993, 
        chapter 375, article 5, section 39; and 
           (22) any other political subdivision of the state of 
        Minnesota, excluding counties, school districts, cities, and 
        towns, that has the power to adopt and certify a property tax 
        levy to the county auditor, as determined by the commissioner of 
        revenue. 
           Sec. 29.  [275.067] [SPECIAL TAXING DISTRICTS; ORGANIZATION 
        DATE; CERTIFICATION OF LEVY OR SPECIAL ASSESSMENTS.] 
           Special taxing districts as defined in section 275.066 
        organized on or before July 1 in a calendar year may certify a 
        levy to the county auditor in that same year for property taxes 
        or special assessments to be payable in the following calendar 
        year to the extent that the special taxing district is 
        authorized by statute or special act to levy taxes or special 
        assessments.  Special taxing districts organized after July 1 in 
        a calendar year may not certify a levy of property taxes or 
        special assessments to the county auditor under the powers 
        granted to them by statute or special act until the following 
        calendar year. 
           Sec. 30.  Minnesota Statutes 1993 Supplement, section 
        276.04, subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 
        shall provide for the printing of the tax statements.  The 
        commissioner of revenue shall prescribe the form of the property 
        tax statement and its contents.  The statement must contain a 
        tabulated statement of the dollar amount due to each taxing 
        authority from the parcel of real property for which a 
        particular tax statement is prepared.  The dollar amounts due 
        the county, township or municipality, the total of the 
        metropolitan special taxing districts as defined in section 
        275.065, subdivision 3, paragraph (i), school district excess 
        referenda levy, remaining school district levy, and the total of 
        other voter approved referenda levies based on market value 
        under section 275.61 must be separately stated.  The amounts due 
        all other special taxing districts, if any, may be aggregated.  
        For the purposes of this subdivision, "school district excess 
        referenda levy" means school district taxes for operating 
        purposes approved at referenda, including those taxes based on 
        market value.  "School district excess referenda levy" does not 
        include school district taxes for capital expenditures approved 
        at referendums or school district taxes to pay for the debt 
        service on bonds approved at referenda.  The amount of the tax 
        on contamination value imposed under sections 270.91 to 270.98, 
        if any, must also be separately stated.  The dollar amounts, 
        including the dollar amount of any special assessments, may be 
        rounded to the nearest even whole dollar.  For purposes of this 
        section whole odd-numbered dollars may be adjusted to the next 
        higher even-numbered dollar.  The statement shall include the 
        following sentence, printed in upper case letters in boldface 
        print:  "THE STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY 
        TAX REVENUES.  THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX 
        BY PAYING CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF 
        GOVERNMENT."  
           (b) The property tax statements for manufactured homes and 
        sectional structures taxed as personal property shall contain 
        the same information that is required on the tax statements for 
        real property.  
           (c) Real and personal property tax statements must contain 
        the following information in the order given in this paragraph.  
        The information must contain the current year tax information in 
        the right column with the corresponding information for the 
        previous year in a column on the left: 
           (1) the property's estimated market value under section 
        273.11, subdivision 1; 
           (2) the property's taxable market value after reductions 
        under sections 273.11, subdivisions 1a and 16; 
           (3) the property's gross tax, calculated by multiplying the 
        property's gross tax capacity times the total local tax rate and 
        adding to the result the sum of the aids enumerated in clause 
        (3); 
           (4) a total of the following aids: 
           (i) education aids payable under chapters 124 and 124A; 
           (ii) local government aids for cities, towns, and counties 
        under chapter 477A; and 
           (iii) disparity reduction aid under section 273.1398; 
           (5) for homestead residential and agricultural properties, 
        the homestead and agricultural credit aid apportioned to the 
        property.  This amount is obtained by multiplying the total 
        local tax rate by the difference between the property's gross 
        and net tax capacities under section 273.13.  This amount must 
        be separately stated and identified as "homestead and 
        agricultural credit."  For purposes of comparison with the 
        previous year's amount for the statement for taxes payable in 
        1990, the statement must show the homestead credit for taxes 
        payable in 1989 under section 273.13, and the agricultural 
        credit under section 273.132 for taxes payable in 1989; 
           (6) any credits received under sections 273.119; 273.123; 
        273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 
        473H.10, except that the amount of credit received under section 
        273.135 must be separately stated and identified as "taconite 
        tax relief"; and 
           (7) the net tax payable in the manner required in paragraph 
        (a).  
           The commissioner of revenue shall certify to the county 
        auditor the actual or estimated aids enumerated in clauses (3) 
        and (4) that local governments will receive in the following 
        year.  In the case of a county containing a city of the first 
        class, for taxes levied in 1991, and for all counties for taxes 
        levied in 1992 and thereafter, the commissioner must certify 
        this amount by September 1.  
           Sec. 31.  Minnesota Statutes 1993 Supplement, section 
        277.15, is amended to read: 
           277.15 [INTEREST.] 
           When a judgment has heretofore been entered and docketed, 
        or shall hereafter be entered and docketed, for the recovery of 
        taxes, except in the case of real estate tax judgments provided 
        for in section 279.19, the same shall bear interest until paid 
        at the rate of six percent per annum until January 1, 1981, and 
        at the rate determined under section 549.09 until January 1, 
        1991.  Thereafter interest will be payable at the rate provided 
        in section 279.03, subdivision 1a. 
           Beginning with the taxes payable year 1992, All personal 
        property tax amounts not paid as of July 1, 1993, or January 1 
        of the year following the year in which they were due, whichever 
        is later, shall, together with associated penalties and costs, 
        until paid, bear interest at the rate as provided in section 
        279.03, regardless of whether or not a judgment for those taxes 
        is obtained and entered except that the provisions of section 
        278.08 shall govern in regard to interest for the years included 
        in the judgment for a suit initiated under chapter 278. 
           Sec. 32.  Minnesota Statutes 1993 Supplement, section 
        278.04, is amended to read: 
           278.04 [TREASURER MUST STAMP TAX LISTS.] 
           Upon the filing of such petition, the county treasurer 
        shall write or stamp opposite the description of such items of 
        personal property or parcel on the tax list the notation, 
        "Petition for review filed," and such parcel or item of personal 
        property shall not be included in the delinquent tax list for 
        such year.  
           Sec. 33.  Minnesota Statutes 1992, section 278.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  Any time after the filing of the petition and 
        before the trial of the issues raised thereby, when the defense 
        or claim presented is that the property has been partially, 
        unfairly, or unequally assessed, or that the parcel property has 
        been assessed at a valuation greater than its real or actual 
        value, or that a parcel which is classified as homestead under 
        the provisions of section 273.13, subdivision 22 or 23, has been 
        assessed at a valuation which exceeds by ten percent or more the 
        valuation which the parcel would have if it were valued at the 
        average assessment/sales ratio for real property in the same 
        class in that portion of the county in which the parcel is 
        located, for which the commissioner is able to establish and 
        publish a sales ratio study, the attorney representing the 
        state, county, city or town in the proceedings may serve on the 
        petitioner, or the petitioner's attorney, and file with the 
        court administrator of the district court, an offer to reduce 
        the valuation of any tract or tracts the property or a portion 
        of the property to a valuation set forth in the offer.  If, 
        within ten days thereafter, the petitioner, or the attorney, 
        gives notice in writing to the county attorney, or the attorney 
        for the city or town, that the offer is accepted, the official 
        notified may file the offer with proof of notice, and the court 
        administrator shall enter judgment accordingly.  Otherwise, the 
        offer shall be deemed withdrawn and evidence thereof shall not 
        be given; and, unless a lower valuation than specified in the 
        offer is found by the court, no costs or disbursements shall be 
        allowed to the petitioner, but the costs and disbursements of 
        the state, county, city or town, including interest at six 
        percent on the tax based on the amount of the offer from and 
        after the 16th day of October, or, in the case of class 1b 
        agricultural homestead, class 2a agricultural homestead, and 
        class 2b(2) agricultural nonhomestead property, and manufactured 
        homes treated as personal property, the 16th day of November, of 
        the year the taxes are payable, shall be taxed in its favor and 
        included in the judgment and when collected shall be credited to 
        the county revenue fund, unless the taxes were paid in full 
        before the 16th day of October, or, in the case of class 1b 
        agricultural homestead, class 2a agricultural homestead, and 
        class 2b(2) agricultural nonhomestead property, and manufactured 
        homes treated as personal property, the 16th day of November, of 
        the year in which the taxes were payable, in which event 
        interest shall not be taxable. 
           Sec. 34.  Minnesota Statutes 1993 Supplement, section 
        278.08, is amended to read: 
           278.08 [INTEREST.] 
           Subdivision 1.  [INTEREST; PENALTY.] In the case of real or 
        personal property, the judgment must include the following 
        interest: 
           (1) if the tax is sustained in full, interest on the unpaid 
        part of the tax computed under section 279.03; 
           (2) if the tax is increased, interest on the unpaid part of 
        the tax as originally assessed computed under section 279.03; 
           (3) if the tax is reduced, interest on the difference 
        between the tax as recomputed and the amount previously paid 
        computed under section 279.03.  
           If the tax is sustained or increased, penalty on the unpaid 
        part of the tax as originally assessed computed under section 
        279.01 must be included in the judgment.  
           Subd. 2.  [REFUND.] In the case of real or personal 
        property, if the petitioner has overpaid the tax determined or 
        stipulated to be due, the county auditor shall compute interest 
        on the overpayment from the date of the filing of the petition 
        for review or from the date of payment of the tax, whichever is 
        later, until the date of issuance of the refund warrant.  
        Interest shall be calculated on the overpayment at the rate 
        provided in section 279.03 for delinquent property taxes 
        originally due and payable in the same year as the tax which was 
        overpaid.  For the purposes of computing interest due under this 
        subdivision, an overpayment occurs on the date when the 
        cumulative total of the payments made by the taxpayer for the 
        payable year exceed the final total tax amount determined for 
        that payable year.  In determining whether an overpayment has 
        occurred, taxpayer payments are allocated first to any penalty 
        imposed due to late payment of installments, then to the tax due.
           Sec. 35.  Minnesota Statutes 1992, section 279.37, 
        subdivision 8, is amended to read: 
           Subd. 8.  The party or parties making such confession of 
        judgment shall pay the county auditor a fee as set by the county 
        board to defray the costs of processing the confession of 
        judgment and making the annual billings required.  Fees as set 
        by the county board shall be paid to the court administrator of 
        the court for entry of judgment and for the entry of each full 
        or partial release thereof.  The fees paid to the court 
        administrator under this section are in lieu of the fees 
        provided for in section 357.021.  Fees collected under this 
        section shall be credited to the general revenue fund of the 
        county.  
           Sec. 36.  Minnesota Statutes 1992, section 282.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CLASSIFICATION AS CONSERVATION OR 
        NONCONSERVATION.] It is the general policy of this state to 
        encourage the best use of tax-forfeited lands, recognizing that 
        some lands in public ownership should be retained and managed 
        for public benefits while other lands should be returned to 
        private ownership.  Parcels of land becoming the property of the 
        state in trust under law declaring the forfeiture of lands to 
        the state for taxes shall be classified by the county board of 
        the county in which the parcels lie as conservation or 
        nonconservation.  In making the classification the board shall 
        consider the present use of adjacent lands, the productivity of 
        the soil, the character of forest or other growth, accessibility 
        of lands to established roads, schools, and other public 
        services, their peculiar suitability or desirability for 
        particular uses and the suitability of the forest resources on 
        the land for multiple use, sustained yield management.  The 
        classification, furthermore, must encourage and foster a mode of 
        land utilization that will facilitate the economical and 
        adequate provision of transportation, roads, water supply, 
        drainage, sanitation, education, and recreation; facilitate 
        reduction of governmental expenditures; conserve and develop the 
        natural resources; and foster and develop agriculture and other 
        industries in the districts and places best suited to them. 
           In making the classification the county board may use 
        information made available by any office or department of the 
        federal, state, or local governments, or by any other person or 
        agency possessing pertinent information at the time the 
        classification is made.  The lands may be reclassified from time 
        to time as the county board may consider necessary or desirable, 
        except for conservation lands held by the state free from any 
        trust in favor of any taxing district.  
           If the lands are located within the boundaries of an 
        organized town, with taxable valuation in excess of $20,000, or 
        incorporated municipality, the classification or 
        reclassification and sale must first be approved by the town 
        board of the town or the governing body of the municipality in 
        which the lands are located.  The town board of the town or the 
        governing body of the municipality is considered to have 
        approved the classification or reclassification and sale if the 
        county board is not notified of the disapproval of the 
        classification or reclassification and sale within 90 days of 
        the date the request for approval was transmitted to the town 
        board of the town or governing body of the municipality.  If the 
        town board or governing body desires to acquire any parcel lying 
        in the town or municipality by procedures authorized in this 
        subdivision section, it must file a written application with the 
        county board to withhold the parcel from public sale.  The 
        application must be filed within 90 days of the request for 
        classification or reclassification and sale.  The county board 
        shall then withhold the parcel from public sale for one year.  A 
        clerical error made by county officials does not serve to 
        eliminate the request of the town board or governing body if the 
        board or governing body has forwarded the application to the 
        county auditor. 
           Sec. 37.  Minnesota Statutes 1992, section 282.014, is 
        amended to read: 
           282.014 [COMPLETION OF SALE, FEE, CONVEYANCE RECORDED.] 
           Upon compliance by the purchaser with the provisions of 
        this chapter and with the terms and conditions of the sale, and 
        upon full payment for the land, plus a $25 fee in addition to 
        the sale price, the sale shall be complete and a conveyance of 
        the land shall be issued to the purchaser as provided by the 
        appropriate statutes according to the status of the land upon 
        forfeiture. 
           The conveyance must be forwarded to the county recorder 
        auditor who shall record have the conveyance recorded before 
        the auditor issues issuing it to the purchaser. 
           Sec. 38.  Minnesota Statutes 1992, section 282.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RIGHTS BEFORE SALE; IMPROVEMENTS, INSURANCE, 
        DEMOLITION.] Until after the sale of a parcel of forfeited land 
        the county auditor may, with the approval of the county board of 
        commissioners, provide for the repair and improvement of any 
        building or structure located upon such parcel, if it is 
        determined by the county board that such repairs or improvements 
        are necessary for the operation, use, preservation and safety 
        thereof; and, if so authorized by the county board, the county 
        auditor may insure any such building or structure against loss 
        or damage resulting from fire or windstorm, may purchase 
        workers' compensation insurance to insure the county against 
        claims for injury to the persons therein employed by the county, 
        and may insure the county, its officers and employees against 
        claims for injuries to persons or property because of the 
        management, use or operation of such building or structure.  
        Such county auditor may, with the approval of the county board, 
        provide for the demolition of any such building or structure, 
        which has been determined by the county board to be within the 
        purview of section 299F.10, and for the sale of salvaged 
        materials therefrom.  Such county auditor, with the approval of 
        the county board, may provide for the sale of abandoned personal 
        property under either chapter 345 or 566, as appropriate.  The 
        net proceeds from any sale of such personal property, salvaged 
        materials, of timber or other products or leases made under this 
        law shall be deposited in the forfeited tax sale fund and shall 
        be distributed in the same manner as if the parcel had been sold.
           Such county auditor, with the approval of the county board, 
        may provide for the demolition of any structure or structures on 
        tax-forfeited lands, if in the opinion of the county board, the 
        county auditor, and the land commissioner, if there be one, the 
        sale of such land with such structure or structures thereon, or 
        the continued existence of such structure or structures by 
        reason of age, dilapidated condition or excessive size as 
        compared with nearby structures, will result in a material 
        lessening of net tax capacities of real estate in the vicinity 
        of such tax-forfeited lands, or if the demolition of such 
        structure or structures will aid in disposing of such 
        tax-forfeited property. 
           Before the sale of a parcel of forfeited land located in an 
        urban area, the county auditor may with the approval of the 
        county board provide for the grading thereof by filling or the 
        removal of any surplus material therefrom, and where the 
        physical condition of forfeited lands is such that a reasonable 
        grading thereof is necessary for the protection and preservation 
        of the property of any adjoining owner, such adjoining property 
        owner or owners may make application to the county board to have 
        such grading done. If, after considering said application, the 
        county board believes that such grading will enhance the value 
        of such forfeited lands commensurate with the cost involved, it 
        may approve the same and any such work shall be performed under 
        the supervision of the county or city engineer, as the case may 
        be, and the expense thereof paid from the forfeited tax sale 
        fund. 
           Sec. 39.  Minnesota Statutes 1992, section 282.301, is 
        amended to read: 
           282.301 [RECEIPTS FOR PAYMENTS.] 
           The purchaser shall receive from the county auditor at the 
        time of repurchase a receipt, in such form as may be prescribed 
        by the attorney general.  When the purchase price of a parcel of 
        land shall be paid in full, the following facts shall be 
        certified by the county auditor to the commissioner of revenue 
        of the state of Minnesota:  the description of land, the date of 
        sale, the name of the purchaser or the purchaser's assignee, and 
        the date when the final installment of the purchase price was 
        paid.  Upon payment in full of the purchase price, the purchaser 
        or the assignee shall receive a quitclaim deed from the state, 
        to be executed by the commissioner of revenue.  The deed must be 
        sent to the county recorder for recording auditor who shall have 
        it recorded before it is forwarded to the purchaser.  Failure to 
        make any payment herein required shall constitute default and 
        upon such default and cancellation in accord with section 
        282.40, the right, title and interest of the purchaser or the 
        purchaser's heirs, representatives, or assigns in such parcel 
        shall terminate.  
           Sec. 40.  Minnesota Statutes 1993 Supplement, section 
        290A.03, subdivision 13, is amended to read: 
           Subd. 13.  [PROPERTY TAXES PAYABLE.] "Property taxes 
        payable" means the property tax exclusive of special 
        assessments, penalties, and interest payable on a claimant's 
        homestead before reductions made under section 273.13 but after 
        deductions made under sections 273.135, 273.1391, 273.42, 
        subdivision 2, and any other state paid property tax credits in 
        any calendar year.  In the case of a claimant who makes ground 
        lease payments, "property taxes payable" includes the amount of 
        the payments directly attributable to the property taxes 
        assessed against the parcel on which the house is located.  No 
        apportionment or reduction of the "property taxes payable" shall 
        be required for the use of a portion of the claimant's homestead 
        for a business purpose if the claimant does not deduct any 
        business depreciation expenses for the use of a portion of the 
        homestead in the determination of federal adjusted gross 
        income.  For homesteads which are manufactured homes as defined 
        in section 274.19, subdivision 8, "property taxes payable" shall 
        also include the amount of the gross rent paid in the preceding 
        year for the site on which the homestead is located, which is 
        attributable to the net tax paid on the site.  The amount 
        attributable to property taxes shall be determined by 
        multiplying the net tax on the parcel by a fraction, the 
        numerator of which is the gross rent paid for the calendar year 
        for the site and the denominator of which is the gross rent paid 
        for the calendar year for the parcel.  When a homestead is owned 
        by two or more persons as joint tenants or tenants in common, 
        such tenants shall determine between them which tenant may claim 
        the property taxes payable on the homestead.  If they are unable 
        to agree, the matter shall be referred to the commissioner of 
        revenue whose decision shall be final.  Property taxes are 
        considered payable in the year prescribed by law for payment of 
        the taxes. 
           In the case of a claim relating to "property taxes 
        payable," the claimant must have owned and occupied the 
        homestead on January 2 of the year in which the tax is payable 
        and (i) the property must have been classified as homestead 
        property pursuant to section 273.13, subdivision 22 or 23, on or 
        before June 1 December 15 of the assessment year in to which 
        the "property taxes payable" were levied relate; or (ii) the 
        claimant must provide documentation from the local assessor that 
        application for homestead classification has been made prior to 
        October 1 on or before December 15 of the year in which the 
        "property taxes payable" were payable and that the assessor has 
        approved the application. 
           Sec. 41.  Minnesota Statutes 1993 Supplement, section 
        298.28, subdivision 9a, is amended to read: 
           Subd. 9a.  [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 10.4 
        cents per ton for distributions in 1993 and 15.4 cents per ton 
        for distributions in 1994 shall be paid to the taconite economic 
        development fund.  No distribution shall be made under this 
        paragraph in any year in which total industry production falls 
        below 30 million tons. 
           (b) An amount equal to 50 percent of the tax under section 
        298.24 for concentrate sold in the form of pellet chips and 
        fines not exceeding 1/4 5/16 inch in size and not including 
        crushed pellets shall be paid to the taconite economic 
        development fund.  The amount paid shall not exceed $700,000 
        annually for all companies.  If the initial amount to be paid to 
        the fund exceeds this amount, each company's payment shall be 
        prorated so the total does not exceed $700,000. 
           Sec. 42.  Minnesota Statutes 1992, section 357.18, 
        subdivision 2, is amended to read: 
           Subd. 2.  Notwithstanding the provisions of any general or 
        special law to the contrary, the fees prescribed by this section 
        shall govern the filing or recording of all instruments in the 
        office of the county recorder other than uniform commercial code 
        documents, and documents filed or recorded pursuant to sections 
        270.69, subdivision 2, paragraph (c), 272.481 to 
        272.488, 277.20, and 386.77. 
           Sec. 43.  Minnesota Statutes 1992, section 398.16, is 
        amended to read: 
           398.16 [TAX LEVY, BUDGET.] 
           The park district board, as soon after organization as 
        practicable and on or before the first day of July of each year 
        thereafter, shall prepare a detailed budget of its proposed 
        expenditures during the next fiscal year, other than those to be 
        met by bond issues or by revenues described in section 398.17 
        and section 398.09, paragraph (d), which budgets shall in no 
        year exceed 18 cents per person in the district as determined by 
        the last federal decennial census.  But no such assessment shall 
        be made upon the people or property of a city of the first class.
           As soon after organization as practicable, and on the first 
        day of July each year thereafter, the park district board shall 
        certify to the governing body of each township, town or city 
        included in the district, the budget adopted pursuant to this 
        section, together with a statement of the proportion of the 
        budget to be provided by such governmental subdivision.  The 
        budget shall be apportioned among such subdivisions within the 
        district in the same proportion as their respective populations 
        bear to the total population of the district, population figures 
        to be based on the last federal decennial census.  
           For the purpose of this section the governing body of any 
        city means that board, council, commission or officer authorized 
        by law or charter to levy taxes for park and recreation purposes 
        and the governing body of each unorganized township means the 
        county board.  It shall be the duty of each such governing body 
        in the district to provide the funds necessary to meet its 
        proportionate share of such budget, such funds to be raised by 
        tax levies or other means within the authority of said governing 
        bodies, and to pay the same over to the treasurer of the 
        district in such amounts and at such times as may fairly be 
        required by the park district board.  
           Any such governing body is hereby authorized to levy 
        annually upon all taxable property within its boundaries a tax 
        at the rate necessary to raise, at 98 percent collection, its 
        proportionate share of the park district's budget, which tax, 
        except in the case of cities of the first class, may be levied 
        in excess of and over and above all other tax limitations.  
           All moneys received from said levies shall be turned over 
        by the county treasurer collecting the same to the treasurer of 
        the park district.  All moneys received by the park district 
        shall be used to carry out the powers and duties imposed on the 
        park district board by this chapter and shall not be subject to 
        review or reduction by other boards, commissions or councils.  
           If the governing body of any subdivision fails before 
        October 1 September 15 of any year to pay its proportionate 
        share of the park district budget for the next fiscal year or to 
        certify to the county auditor a tax levy specifically designated 
        for said purpose, the park district board shall, on or before 
        September 15, certify to the county auditor of each county in 
        which such governmental subdivision is located such amount of 
        taxes as is deemed necessary to raise such subdivision's 
        proportionate share of the budget, for collection with and as a 
        part of other taxes on taxable property within such subdivision, 
        which tax, may be levied in excess of and over and above all 
        other tax limitations.  
           The park district board may by resolution, submit to the 
        electors of the park district at a general or primary state 
        election the question of raising the limit on the park 
        district's budget from 18 cents to not to exceed 35 cents per 
        person in the district.  Any resolution providing for an 
        election on raising the budgetary limit shall specify the 
        proposed additional amount per person in the district to be 
        authorized and the number of consecutive years such increase in 
        the limit shall be effective.  The resolution shall be certified 
        to the county auditor of each county wherein lies any part of 
        the territory of the district, and the county auditor or 
        auditors shall cause the same to be submitted to the electors 
        residing within such territory at the next ensuing general or 
        primary election on a ballot setting forth the proposed 
        additional amount per person and the number of years such 
        increase shall be effective as provided in the resolution, and 
        shall forward the official returns of the judges of election in 
        the precincts voting on such ballot to the park district board 
        for canvass, and the increase shall be authorized if approved by 
        a majority of the electors of the district voting on such ballot.
           The board may borrow money in anticipation of the 
        collection of all taxes levied in its behalf and issue the 
        negotiable notes of the district in an amount not in excess of 
        90 percent of the amount so levied which has not been received 
        by the district at the time of the borrowing.  Such notes shall 
        mature not later than March 1 of the year following the year in 
        which the tax levies are to be collected and shall be payable 
        primarily from the proceeds of the levies anticipated thereby, 
        but the full faith and credit of the district shall be pledged 
        to the payment of the notes, and if such levies are not 
        sufficient to pay all principal due and interest accrued thereon 
        the park district board shall levy for the repayment of the 
        principal and interest on such notes and ad valorem tax in the 
        next ensuing year and for so long thereafter as may be necessary 
        upon all of the taxable property within its corporate limits, 
        which levy may be made without limitation as to rate or amount 
        and shall not be included in applying statutory limitations to 
        other tax levies.  
           Sec. 44.  Minnesota Statutes 1992, section 398A.04, 
        subdivision 8, is amended to read: 
           Subd. 8.  [TAXATION.] Before deciding to exercise the power 
        to tax, the authority shall give six weeks published notice in 
        all municipalities in the region.  If a number of voters in the 
        region equal to five percent of those who voted for candidates 
        for governor at the last gubernatorial election present a 
        petition within nine weeks of the first published notice to the 
        secretary of state requesting that the matter be submitted to 
        popular vote, it shall be submitted at the next general 
        election.  The question prepared shall be:  
           "Shall the regional rail authority have the power to impose 
        a property tax?  
                                           Yes .......
                                           No ........"
           If a majority of those voting on the question approve or if 
        no petition is presented within the prescribed time the 
        authority may levy a tax at any annual rate not exceeding 
        0.04835 percent of market value of all taxable property situated 
        within the municipality or municipalities named in its 
        organization resolution.  Its recording officer shall file, on 
        or before September 15, in the office of the county auditor of 
        each county in which territory under the jurisdiction of the 
        authority is located a certified copy of the board of 
        commissioners' resolution levying the tax, and each county 
        auditor shall assess and extend upon the tax rolls of each 
        municipality named in the organization resolution the portion of 
        the tax that bears the same ratio to the whole amount that the 
        net tax capacity of taxable property in that municipality bears 
        to the net tax capacity of taxable property in all 
        municipalities named in the organization resolution.  
        Collections of the tax shall be remitted by each county 
        treasurer to the treasurer of the authority.  For taxes levied 
        in 1991, the amount levied for light rail transit purposes under 
        this subdivision shall not exceed 75 percent of the amount 
        levied in 1990 for light rail transit purposes under this 
        subdivision. 
           Sec. 45.  Minnesota Statutes 1992, section 447.34, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DECIDING AND CERTIFYING TAX AMOUNT.] On or 
        before October 10 September 15 of each year the hospital board 
        shall decide the amount necessary to be raised from ad valorem 
        tax levies to meet its expenses.  No later than October 10 
        September 15 the secretary of the hospital board shall certify 
        that amount to the county auditor of each county containing 
        territory in the hospital district.  Each county auditor shall 
        assess and extend upon the tax rolls for the year that portion 
        of the certified amount that bears the same ratio to the whole 
        amount as the net tax capacity of taxable property in that part 
        of the hospital district located in the auditor's county bears 
        to the net tax capacity of all taxable property in the hospital 
        district.  
           Sec. 46.  Minnesota Statutes 1992, section 462.396, 
        subdivision 2, is amended to read: 
           Subd. 2.  On or before August 20 each year, the commission 
        shall submit its proposed budget for the ensuing calendar year 
        showing anticipated receipts, disbursements and ad valorem tax 
        levy with a written notice of the time and place of the public 
        hearing on the proposed budget to each county auditor and 
        municipal clerk within the region and those town clerks who in 
        advance have requested a copy of the budget and notice of public 
        hearing.  On or before October 1 September 15 each year, the 
        commission shall adopt, after a public hearing held not later 
        than September 20 15, a budget covering its anticipated receipts 
        and disbursements for the ensuing year and shall decide upon the 
        total amount necessary to be raised from ad valorem tax levies 
        to meet its budget.  After adoption of the budget and no later 
        than October 1 September 15, the secretary of the commission 
        shall certify to the auditor of each county within the region 
        the county share of the tax, which shall be an amount bearing 
        the same proportion to the total levy agreed on by the 
        commission as the net tax capacity of the county bears to the 
        net tax capacity of the region.  For taxes levied in 1990 and 
        thereafter, the maximum amounts of levies made for the purposes 
        of sections 462.381 to 462.398 are the following amounts, less 
        the sum of regional planning grants from the commissioner to 
        that region:  for Region 1, $180,337; for Region 2, $150,000; 
        for Region 3, $353,110; for Region 5, $195,865; for Region 6E, 
        $197,177; for Region 6W, $150,000; for Region 7E, $158,653; for 
        Region 8, $206,107; for Region 9, $343,572.  The auditor of each 
        county in the region shall add the amount of any levy made by 
        the commission within the limits imposed by this subdivision to 
        other tax levies of the county for collection by the county 
        treasurer with other taxes.  When collected the county treasurer 
        shall make settlement of the taxes with the commission in the 
        same manner as other taxes are distributed to political 
        subdivisions. 
           Sec. 47.  Minnesota Statutes 1993 Supplement, section 
        469.033, subdivision 6, is amended to read: 
           Subd. 6.  [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.] 
        All of the territory included within the area of operation of 
        any authority shall constitute a taxing district for the purpose 
        of levying and collecting special benefit taxes as provided in 
        this subdivision.  All of the taxable property, both real and 
        personal, within that taxing district shall be deemed to be 
        benefited by projects to the extent of the special taxes levied 
        under this subdivision.  Subject to the consent by resolution of 
        the governing body of the city in and for which it was created, 
        an authority may levy each year a tax upon all taxable property 
        within that taxing district.  The authority shall certify the 
        tax to the auditor of the county in which the taxing district is 
        located on or before five working days after December 
        20 September 15 in each year.  The tax shall be extended, 
        spread, and included with and as a part of the general taxes for 
        state, county, and municipal purposes by the county auditor, to 
        be collected and enforced therewith, together with the penalty, 
        interest, and costs.  As the tax, including any penalties, 
        interest, and costs, is collected by the county treasurer it 
        shall be accumulated and kept in a separate fund to be known as 
        the "housing and redevelopment project fund."  The money in the 
        fund shall be turned over to the authority at the same time and 
        in the same manner that the tax collections for the city are 
        turned over to the city, and shall be expended only for the 
        purposes of sections 469.001 to 469.047.  It shall be paid out 
        upon vouchers signed by the chair of the authority or an 
        authorized representative.  The amount of the levy shall be an 
        amount approved by the governing body of the city, but shall not 
        exceed 0.0131 percent of taxable market value.  The authority 
        may levy an additional levy, not to exceed 0.0013 percent of 
        taxable market value, to be used to defray costs of providing 
        informational service and relocation assistance as set forth in 
        section 469.012, subdivision 1.  The authority shall each year 
        formulate and file a budget in accordance with the budget 
        procedure of the city in the same manner as required of 
        executive departments of the city or, if no budgets are required 
        to be filed, by August 1.  The amount of the tax levy for the 
        following year shall be based on that budget and shall be 
        approved by the governing body. 
           Sec. 48.  Minnesota Statutes 1992, section 469.060, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TAX LEVY.] A port authority that issues bonds 
        under this section, shall, before issuing them, levy a tax for 
        each year on the taxable property in the authority's city.  The 
        tax must be for at least five percent more than the amount 
        required to pay the principal and interest on the bonds as the 
        principal and interest mature.  The tax must be levied annually 
        until the principal and interest are paid in full.  After the 
        bonds have been delivered to the purchasers, the tax may not be 
        repealed until the debt is paid.  After the bonds are issued, 
        the port authority need not take any more action to authorize 
        extending, assessing, and collecting the tax.  The authority's 
        secretary shall immediately send a certified copy of the levy to 
        the county auditor, together with full information on the bonds 
        for which the tax is levied.  The county auditor shall extend 
        and assess the levied tax annually until the principal and 
        interest are paid in full.  The port authority shall transfer 
        the surplus from the excess levy in this section to a sinking 
        fund after the principal and interest for which the tax was 
        levied and collected is paid.  The port authority may direct its 
        secretary to send a certificate to the county auditor before 
        October September 15 in a year.  The certificate must state how 
        much available income, including the amount in the sinking fund, 
        the authority will use to pay principal or interest or both on 
        each specified issue of the authority's bonds.  The auditor 
        shall then reduce the bond levy for that year by that amount.  
        The port authority shall then set aside the certified amount and 
        may not use it for any purpose except to pay the principal and 
        interest on the bonds.  The taxes in this section shall be 
        collected and sent to the port authority by the county treasurer 
        as provided in chapter 276.  The taxes must be used only to pay 
        the bonds when due.  
           Sec. 49.  Minnesota Statutes 1992, section 469.102, 
        subdivision 5, is amended to read: 
           Subd. 5.  [TAX LEVY.] An authority that issues bonds under 
        this section, shall, before issuing them, levy a tax for each 
        year on the taxable property in the authority's city.  The tax 
        must be for at least five percent more than the amount required 
        to pay the principal and interest on the bonds as the principal 
        and interest mature.  The tax must be levied annually until the 
        principal and interest are paid in full.  After the bonds have 
        been delivered to the purchasers, the tax must not be repealed 
        until the debt is paid.  After the bonds are issued, the 
        authority need not take any more action to authorize extending, 
        assessing, and collecting the tax.  On or before September 15, 
        the authority's secretary shall immediately send a certified 
        copy of the levy to the county auditor, together with full 
        information on the bonds for which the tax is levied.  The 
        county auditor shall extend and assess the levied tax annually 
        until the principal and interest are paid in full.  The 
        authority shall transfer the surplus from the excess levy in 
        this section to a sinking fund after the principal and interest 
        for which the tax was levied and collected is paid.  The 
        authority may direct its secretary to send a certificate to the 
        county auditor before October September 15 in a year.  The 
        certificate must state how much available income, including the 
        amount in the sinking fund, the authority will use to pay 
        principal or interest or both on each specified issue of the 
        authority's bonds.  The auditor shall then reduce the bond levy 
        for that year by that amount.  The authority shall then set 
        aside the certified amount and may not use it for any purpose 
        except to pay the principal and interest on the bonds.  The 
        taxes in this section shall be collected and sent to the 
        authority by the county treasurer as provided in chapter 276.  
        The taxes must be used only to pay the bonds when due.  
           Sec. 50.  Minnesota Statutes 1992, section 469.177, 
        subdivision 9, is amended to read: 
           Subd. 9.  [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET 
        TAX CAPACITY.] (a) If the amount of tax paid on captured net tax 
        capacity exceeds the amount of tax increment, the county auditor 
        shall distribute the excess to the municipality, county, and 
        school district as follows:  each governmental unit's share of 
        the excess equals 
           (1) the total amount of the excess for the tax increment 
        financing district, multiplied by 
           (2) a fraction, the numerator of which is the current local 
        tax rate of the governmental unit less the governmental unit's 
        local tax rate for the year the original local tax rate for the 
        district was certified (in no case may this amount be less than 
        zero) and the denominator of which is the sum of the numerators 
        for the municipality, county, and school district. 
        If the entire increase in the local tax rate is attributable to 
        a taxing district, other than the municipality, county, or 
        school district, then the excess must be distributed to the 
        municipality, county, and school district in proportion to their 
        respective local tax rates. 
           The school district's tax rate must be divided into the 
        portion of the tax rate attributable (1) to state equalized 
        levies, and (2) unequalized levies.  Equalized levies mean the 
        levies identified in section 273.1398, subdivision 2a 1, and 
        unequalized levies mean the rest of the school district's 
        levies.  The calculations under clause (2) must determine the 
        amount of excess taxes attributable to each portion of the 
        school district's tax rate.  If one of the portions of the 
        change in the school district tax rate is less than zero and the 
        combined change is greater than zero, the combined rate must be 
        used and all the school district's share of excess taxes 
        allocated to that portion of the tax rate. 
           (b) The amounts distributed shall be deducted in computing 
        the levy limits of the taxing district for the succeeding 
        taxable year.  In the case of a school district, only the 
        proportion of the excess taxes attributable to unequalized 
        levies that are subject to a fixed dollar amount levy limit 
        shall be deducted from the levy limit. 
           (c) In the case of distributions to a school district that 
        are attributable to state equalized levies, the county auditor 
        shall report amounts distributed to the commissioner of 
        education in the same manner as provided for excess increments 
        under section 469.176, subdivision 2, and the distribution shall 
        be deducted from the school district's state aid payments. 
           Sec. 51.  Minnesota Statutes 1993 Supplement, section 
        473.13, subdivision 1, is amended to read: 
           Subdivision 1.  [BUDGET.] On or before December 20 
        September 15 of each year the council, after before the public 
        hearing required in section 275.065, shall adopt a final 
        proposed budget covering its anticipated receipts and 
        disbursements for the ensuing year and shall decide upon the 
        total amount necessary to be raised from ad valorem tax levies 
        to meet its budget.  The budget shall state in detail the 
        expenditures for each program to be undertaken, including the 
        expenses for salaries, consultant services, overhead, travel, 
        printing, and other items.  The budget shall state in detail the 
        capital expenditures of the council for the budget year, based 
        on a five-year capital program adopted by the council and 
        transmitted to the legislature.  After adoption of the proposed 
        budget, an increase of over $10,000 in the council's budget, a 
        program or department budget, or a budget item, must be approved 
        by the council before the increase is allowed or the funds 
        obligated.  After adoption of the a final budget for the ensuing 
        year and no later than five working days after December 20, the 
        council shall certify to the auditor of each metropolitan county 
        the share of the tax to be levied within that county, which must 
        be an amount bearing the same proportion to the total levy 
        agreed on by the council as the net tax capacity of the county 
        bears to the net tax capacity of the metropolitan area.  The 
        maximum amount of any levy made for the purpose of this chapter 
        may not exceed the limits set by sections 473.167 and 473.249. 
           Sec. 52.  Minnesota Statutes 1992, section 473.167, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TAX.] The council may levy a tax on all taxable 
        property in the metropolitan area, as defined in section 
        473.121, to provide funds for loans made pursuant to 
        subdivisions 2 and 2a.  This tax for the right-of-way 
        acquisition loan fund shall be certified by the council, levied, 
        and collected in the manner provided by section 473.13.  The tax 
        shall be in addition to that authorized by section 473.249 and 
        any other law and shall not affect the amount or rate of taxes 
        which may be levied by the council or any metropolitan agency or 
        local governmental unit.  The amount of the levy shall be as 
        determined and certified by the council, except as otherwise 
        provided in this subdivision.  
           The property tax levied by the metropolitan council for the 
        right-of-way acquisition loan fund shall not exceed the 
        following amount for the years specified: 
           (a) for taxes payable in 1988, the product of 5/100 of one 
        mill multiplied by the total assessed valuation of all taxable 
        property located within the metropolitan area as adjusted by the 
        provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
        subdivision 7a; and 275.49; 
           (b) for taxes payable in 1989, except as provided in 
        section 473.249, subdivision 3, the product of (1) the 
        metropolitan council's property tax levy limitation for the 
        right-of-way acquisition loan fund for the taxes payable year 
        1988 determined under clause (a) multiplied by (2) an index for 
        market valuation changes equal to the assessment year 1988 total 
        market valuation of all taxable property located within the 
        metropolitan area divided by the assessment year 1987 total 
        market valuation of all taxable property located within the 
        metropolitan area; 
           (c) for taxes payable in 1990, an amount not to exceed 
        $2,700,000; and 
           (d) for taxes payable in 1991 and subsequent years, the 
        product of (1) the metropolitan council's property tax levy 
        limitation for the right-of-way acquisition loan fund for the 
        taxes payable in 1988 determined under clause (a) multiplied by 
        (2) an index for market valuation changes equal to the total 
        market valuation of all taxable property located within the 
        metropolitan area for the current assessment taxes payable year 
        divided by the total market valuation of all taxable property 
        located within the metropolitan area for the 1987 assessment 
        year taxes payable in 1988. 
           For the purpose of determining the metropolitan council's 
        property tax levy limitation for the right-of-way acquisition 
        loan fund for the taxes payable year 1988 and subsequent years 
        under this subdivision, "total market valuation" means the total 
        market valuation of all taxable property within the metropolitan 
        area without valuation adjustments for fiscal disparities 
        (chapter 473F), tax increment financing (sections 469.174 to 
        469.179), and high voltage transmission lines (section 273.425). 
           The property tax levied under this subdivision for taxes 
        payable in 1988 and subsequent years shall not be levied at a 
        rate higher than that determined by the metropolitan council to 
        be sufficient, considering the other anticipated revenues of and 
        disbursements from the right-of-way acquisition loan fund, to 
        produce a balance in the loan fund at the end of the next 
        calendar year equal to twice the amount of the property tax levy 
        limitation for taxes payable in the next calendar year 
        determined under this section. 
           Sec. 53.  Minnesota Statutes 1992, section 473.249, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The metropolitan council may levy a tax on 
        all taxable property in the metropolitan area defined in section 
        473.121 to provide funds for the purposes of sections 473.121 to 
        473.249 and for the purpose of carrying out other 
        responsibilities of the council as provided by law.  This tax 
        for general purposes shall be levied and collected in the manner 
        provided by section 473.13. 
           The property tax levied by the metropolitan council for 
        general purposes shall not exceed the following amount for the 
        years specified: 
           (a) for taxes payable in 1988, the product of 8/30 of one 
        mill multiplied by the total assessed valuation of all taxable 
        property located within the metropolitan area as adjusted by the 
        provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
        subdivision 7a; and 275.49; 
           (b) for taxes payable in 1989, the product of (1) the 
        metropolitan council's property tax levy limitation for general 
        purposes for the taxes payable year 1988 determined under clause 
        (a) multiplied by (2) an index for market valuation changes 
        equal to the assessment year 1988 total market valuation of all 
        taxable property located within the metropolitan area divided by 
        the assessment year 1987 total market valuation of all taxable 
        property located within the metropolitan area; and 
           (c) for taxes payable in 1990 and subsequent years, the 
        product of (1) the metropolitan council's property tax levy 
        limitation for general purposes for the previous year determined 
        under this subdivision multiplied by (2) the lesser of 
           (i) an index for market valuation changes equal to the 
        total market valuation of all taxable property located within 
        the metropolitan area for the current assessment taxes payable 
        year divided by the total market valuation of all taxable 
        property located within the metropolitan area for the 
        previous assessment taxes payable year; 
           (ii) an index equal to the implicit price deflator for 
        state and local government purchases of goods and services for 
        the most recent month for which data are available divided by 
        the implicit price deflator for state and local government 
        purchases of goods and services for the same month of the 
        previous year; or 
           (iii) 103 percent. 
           For the purpose of determining the metropolitan council's 
        property tax levy limitation for general purposes for the taxes 
        payable year 1988 and subsequent years under this subdivision, 
        "total market valuation" means the total market valuation of all 
        taxable property within the metropolitan area without valuation 
        adjustments for fiscal disparities (chapter 473F), tax increment 
        financing (sections 469.174 to 469.179), and high voltage 
        transmission lines (section 273.425). 
           Sec. 54.  Minnesota Statutes 1992, section 473.446, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
        For the purposes of sections 473.404 to 473.449 and the 
        metropolitan transit system, except as otherwise provided in 
        this subdivision, the regional transit board shall levy each 
        year upon all taxable property within the metropolitan transit 
        taxing district, defined in subdivision 2, a transit tax 
        consisting of: 
           (a) an amount which shall be used for payment of the 
        expenses of operating transit and paratransit service and to 
        provide for payment of obligations issued by the commission 
        under section 473.436, subdivision 6; 
           (b) an additional amount, if any, the board determines to 
        be necessary to provide for the full and timely payment of its 
        certificates of indebtedness and other obligations outstanding 
        on July 1, 1985, to which property taxes under this section have 
        been pledged; and 
           (c) an additional amount necessary to provide full and 
        timely payment of certificates of indebtedness, bonds, including 
        refunding bonds or other obligations issued or to be issued 
        under section 473.39 by the council for purposes of acquisition 
        and betterment of property and other improvements of a capital 
        nature and to which the council or board has specifically 
        pledged tax levies under this clause. 
           The property tax levied by the regional transit board for 
        general purposes under clause (a) must not exceed the following 
        amount for the years specified: 
           (1) for taxes payable in 1988, the product of two mills 
        multiplied by the total assessed valuation of all taxable 
        property located within the metropolitan transit taxing district 
        as adjusted by the provisions of Minnesota Statutes 1986, 
        sections 272.64; 273.13, subdivision 7a; and 275.49; 
           (2) for taxes payable in 1989, the product of (i) the 
        regional transit board's property tax levy limitation for 
        general purposes for the taxes payable year 1988 determined 
        under clause (1) multiplied by (ii) an index for market 
        valuation changes equal to the assessment year 1988 total market 
        valuation of all taxable property located within the 
        metropolitan transit taxing district divided by the assessment 
        year 1987 total market valuation of all taxable property located 
        within the metropolitan transit taxing district; and 
           (3) for taxes payable in 1990 and subsequent years, the 
        product of (i) the regional transit board's property tax levy 
        limitation for general purposes for the previous year determined 
        under this subdivision multiplied by (ii) an index for market 
        valuation changes equal to the total market valuation of all 
        taxable property located within the metropolitan transit taxing 
        district for the current assessment taxes payable year divided 
        by the total market valuation of all taxable property located 
        within the metropolitan transit taxing district for the previous 
        assessment taxes payable year.  For the taxes payable year 1995, 
        the index for market valuation changes shall be multiplied by an 
        amount equal to the sum of the regional transit board's property 
        tax levy limitation for the taxes payable year 1994 and 
        $160,665.  The $160,665 increase shall be a permanent adjustment 
        to the levy limit base used in determining the regional transit 
        board's property tax levy limitation for general purposes for 
        subsequent taxes payable years. 
           For the purpose of determining the regional transit board's 
        property tax levy limitation for general purposes for the taxes 
        payable year 1988 and subsequent years under this subdivision, 
        "total market valuation" means the total market valuation of all 
        taxable property within the metropolitan transit taxing district 
        without valuation adjustments for fiscal disparities (chapter 
        473F), tax increment financing (sections 469.174 to 469.179), 
        and high voltage transmission lines (section 273.425). 
           The county auditor shall reduce the tax levied pursuant to 
        this subdivision on all property within statutory and home rule 
        charter cities and towns that receive full-peak service and 
        limited off-peak service by an amount equal to the tax levy that 
        would be produced by applying a rate of 0.510 percent of net tax 
        capacity on the property.  The county auditor shall reduce the 
        tax levied pursuant to this subdivision on all property within 
        statutory and home rule charter cities and towns that receive 
        limited peak service by an amount equal to the tax levy that 
        would be produced by applying a rate of 0.765 percent of net tax 
        capacity on the property.  The amounts so computed by the county 
        auditor shall be submitted to the commissioner of revenue as 
        part of the abstracts of tax lists required to be filed with the 
        commissioner under section 275.29.  Any prior year adjustments 
        shall also be certified in the abstracts of tax lists.  The 
        commissioner shall review the certifications to determine their 
        accuracy and may make changes in the certification as necessary 
        or return a certification to the county auditor for 
        corrections.  The commissioner shall pay to the regional transit 
        board the amounts certified by the county auditors on the dates 
        provided in section 273.1398.  There is annually appropriated 
        from the general fund in the state treasury to the department of 
        revenue the amounts necessary to make these payments.  
           For the purposes of this subdivision, "full-peak and 
        limited off-peak service" means peak period regular route 
        service, plus weekday midday regular route service at intervals 
        longer than 60 minutes on the route with the greatest frequency; 
        and "limited peak period service" means peak period regular 
        route service only.  
           The regional transit board shall annually determine which 
        cities and towns qualify for the 0.510 or 0.765 tax capacity 
        rate reduction and certify this list to the county auditor on or 
        before September 15.  No changes shall be made to the list after 
        September 15 of the same levy year. 
           Sec. 55.  Minnesota Statutes 1992, section 473.661, 
        subdivision 2, is amended to read: 
           Subd. 2.  The commissioners shall on or before October 10th 
        September 15 of each calendar year, certify to the county 
        auditor of each county in the metropolitan area the total amount 
        to be raised by the commissioners during the next calendar year 
        through taxation, and each county auditor shall extend and 
        assess against all property in the auditor's county which is 
        then taxable by the corporation for the purpose for which the 
        levy is made under the provisions of section 473.621, 
        subdivision 5, that sum which bears the same proportion to the 
        total amount as the net tax capacity of such taxable property 
        bears to the net tax capacity of all property in the 
        metropolitan area which is then taxable by the corporation for 
        the purpose for which the levy is made.  The county auditor 
        shall extend, spread, and include the same with and as a part of 
        the general taxes for state, county, and municipal purposes, to 
        be collected and enforced therewith, together with penalties and 
        interest and costs, and the county treasurer, upon collection of 
        the same, shall transfer the same to the treasurer of the 
        corporation.  
           Sec. 56.  Minnesota Statutes 1992, section 473.711, 
        subdivision 2, is amended to read: 
           Subd. 2.  The metropolitan mosquito control commission 
        shall prepare an annual budget.  The budget may provide for 
        expenditures in an amount not exceeding the property tax levy 
        limitation determined in this subdivision.  The commission may 
        levy a tax on all taxable property in the district as defined in 
        section 473.702 to provide funds for the purposes of sections 
        473.701 to 473.716.  The tax shall not exceed the property tax 
        levy limitation determined in this subdivision.  A participating 
        county may agree to levy an additional tax to be used by the 
        commission for the purposes of sections 473.701 to 473.716 but 
        the sum of the county's and commission's taxes may not exceed 
        the county's proportionate share of the property tax levy 
        limitation determined under this subdivision based on the ratio 
        of its total net tax capacity to the total net tax capacity of 
        the entire district as adjusted by section 270.12, subdivision 
        3.  The auditor of each county in the district shall add the 
        amount of the levy made by the district to other taxes of the 
        county for collection by the county treasurer with other taxes.  
        When collected, the county treasurer shall make settlement of 
        the tax with the district in the same manner as other taxes are 
        distributed to political subdivisions.  No county shall levy any 
        tax for mosquito, disease vectoring tick, and black gnat 
        (Simuliidae) control except under sections 473.701 to 473.716.  
        The levy shall be in addition to other taxes authorized by law. 
           The property tax levied by the metropolitan mosquito 
        control commission shall not exceed the following amount for the 
        years specified: 
           (a) for taxes payable in 1988, the product of six-tenths on 
        one mill multiplied by the total assessed valuation of all 
        taxable property located within the district as adjusted by the 
        provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
        subdivision 7a; and 275.49; 
           (b) for taxes payable in 1989, the product of (1) the 
        commission's property tax levy limitation for the taxes payable 
        year 1988 determined under clause (a) multiplied by (2) an index 
        for market valuation changes equal to the assessment year 1988 
        total market valuation of all taxable property located within 
        the district divided by the assessment year 1987 total market 
        valuation of all taxable property located within the district; 
           (c) for taxes payable in 1990, 1991, and 1992, the product 
        of (1) the commission's property tax levy limitation for the 
        previous year determined under this subdivision multiplied by 
        (2) an index for market valuation changes equal to the total 
        market valuation of all taxable property located within the 
        district for the current assessment year divided by the total 
        market valuation of all taxable property located within the 
        district for the previous assessment year; 
           (d) for taxes payable in 1993, the product of (1) the 
        commission's certified property tax levy for the previous year 
        determined under this subdivision multiplied by (2) an index for 
        market valuation changes equal to the total market valuation of 
        all taxable property located within the district for the current 
        assessment taxes payable year divided by the total market 
        valuation of all taxable property located within the district 
        for the previous assessment taxes payable year; and 
           (e) for taxes payable in 1994 and subsequent years, the 
        product of (1) the commission's property tax levy limitation for 
        the previous year determined under this subdivision multiplied 
        by (2) an index for market valuation changes equal to the total 
        market valuation of all taxable property located within the 
        district for the current assessment year divided by the total 
        market valuation of all taxable property located within the 
        district for the previous assessment year. 
           For the purpose of determining the commission's property 
        tax levy limitation for the taxes payable year 1988 and 
        subsequent years under this subdivision, "total market 
        valuation" means the total market valuation of all taxable 
        property within the district without valuation adjustments for 
        fiscal disparities (chapter 473F), tax increment financing 
        (sections 469.174 to 469.179), and high voltage transmission 
        lines (section 273.425). 
           Sec. 57.  Minnesota Statutes 1992, section 477A.011, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [TOWN.] "Town" means a township with a 
        population of less than 5,000. 
           Sec. 58.  Minnesota Statutes 1992, section 477A.0121, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLIC DEFENDER COSTS.] Each calendar year, four 
        percent of the total appropriation for this section shall be 
        retained by the commissioner of revenue to make reimbursements 
        to the commissioner of finance for payments made under section 
        611.27.  The reimbursements shall be to defray the additional 
        costs associated with court-ordered counsel under section 
        611.27.  Any retained amounts not used for reimbursement in a 
        year shall be carried over and distributed as additional 
        included in the next distribution of county criminal justice aid 
        in the following that is certified to the county auditors for 
        the purpose of property tax reduction for the next taxes payable 
        year.  
           Sec. 59.  Minnesota Statutes 1993 Supplement, section 
        477A.013, subdivision 8, is amended to read: 
           Subd. 8.  [CITY AID INCREASE.] (a) In calendar year 1994 
        and subsequent years, the aid increase for a city is equal to 
        the need increase percentage multiplied by the difference 
        between (1) the city's revenue need multiplied by its 
        population, and (2) the city's net tax capacity multiplied by 
        the tax effort rate.  The need increase percentage must be the 
        same for all cities and must be calculated by the department of 
        revenue so that the total of the aid under subdivision 9 equals 
        the total amount available for aid under section 477A.03, 
        subdivision 1.  
           (b) The percentage aid increase for a first class city in 
        calendar year 1994 must not exceed the percentage increase in 
        the sum of calendar year 1994 city aids under this section 
        compared to the sum of the city aid base for all cities.  The 
        aid increase for any other city in 1994 must not exceed five 
        percent of the city's net levy for taxes payable in 1993. 
           (c) The aid increase in calendar year 1995 and subsequent 
        years for any city must not exceed is limited to an amount such 
        that the total aid to the city does not exceed the sum of (1) 
        ten percent of the city's net levy for the year prior to the aid 
        distribution plus (2) its city aid base multiplied by the base 
        reduction percentage the total aid it received in the previous 
        year. 
           Sec. 60.  Minnesota Statutes 1992, section 477A.0132, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ORDER OF AID REDUCTIONS.] The aid reduction to a 
        local government as calculated under subdivisions 1 and 2, is 
        first applied to its local government aid under sections 
        477A.012 and 477A.013 excluding aid under section 477A.013, 
        subdivision 5; then, if necessary, to its equalization aid under 
        section 477A.013, subdivision 5; then if necessary, to its 
        homestead and agricultural credit aid under section 273.1398, 
        subdivision 2; and then, if necessary, to its disparity 
        reduction aid under section 273.1398, subdivision 3; and then, 
        if necessary, to its transition credit under section 273.1398, 
        subdivision 5.  No aid payment may be less than $0.  Aid 
        reductions under this section in any given year shall be divided 
        equally between the July and December aid payments unless 
        specified otherwise. 
           Sec. 61.  Minnesota Statutes 1992, section 477A.014, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CALCULATIONS AND PAYMENTS.] The 
        commissioner of revenue shall make all necessary calculations 
        and make payments pursuant to sections 477A.012, 477A.013, 
        477A.0132, and 477A.03 directly to the affected taxing 
        authorities annually.  In addition, the commissioner shall 
        notify the authorities of their aid amounts, as well as the 
        computational factors used in making the calculations for their 
        authority, and those statewide total figures that are pertinent, 
        before August 1 of the year preceding the aid distribution 
        year.  For the purposes of this subdivision, aid is determined 
        for a city or town based on its city or town status as of June 
        30 of the year preceding the aid distribution year.  If the 
        effective date for a municipal incorporation, consolidation, 
        annexation, detachment, dissolution, or township organization is 
        on or before June 30 of the year preceding the aid distribution 
        year, such change in boundaries or form of government shall be 
        recognized for aid determinations for the aid distribution 
        year.  If the effective date for a municipal incorporation, 
        consolidation, annexation, detachment, dissolution, or township 
        organization is after June 30 of the year preceding the aid 
        distribution year, such change in boundaries or form of 
        government shall not be recognized for aid determinations until 
        the following year.  
           Sec. 62.  Minnesota Statutes 1992, section 477A.15, is 
        amended to read: 
           477A.15 [TACONITE AID REIMBURSEMENT.] 
           Any school district in which is located property which had 
        been entitled to a reduction of tax pursuant to Minnesota 
        Statutes 1978, section 273.135, subdivision 2, clause (c), shall 
        receive in 1981 and subsequent years an amount equal to the 
        amount it received in 1980 pursuant to Minnesota Statutes 1978, 
        section 298.28, subdivision 1, clause (3)(b).  Payments shall be 
        made pursuant to this section by the commissioner of revenue to 
        the taxing jurisdictions on July 15 of 1981 and each year 
        thereafter the date in each calendar year when the first 
        installment is paid under section 477A.015.  
           Sec. 63.  Laws 1989, chapter 211, section 4, subdivision 2, 
        is amended to read: 
           Subd. 2.  [DETERMINING AND CERTIFYING TAX AMOUNT.] On or 
        before October 10 September 15 of each year, the medical clinic 
        board shall determine the amount necessary to be raised from 
        property tax levies to meet its expenses.  No later than October 
        10 September 15, the secretary of the board shall certify that 
        amount to the Lake county auditor. 
           Sec. 64.  Laws 1992, chapter 511, article 4, section 29, is 
        amended to read: 
           Sec. 29.  [EFFECTIVE DATES.] 
           Sections 1, 12, 14, 15, and 26 to 28 are effective the day 
        following final enactment.  Sections 2 and 25 are effective for 
        taxes levied in 1989, payable in 1990, and thereafter, and for 
        aids and credits payable in 1990 and thereafter.  Sections 3, 4 
        to 7, and 13 are effective for taxes levied in 1992, payable in 
        1993, and thereafter.  Section 8 is effective for aids payable 
        after June 30, 1992.  Section 9 is effective for school year 
        1992-1993 and for homestead and agricultural credit aid and 
        local government aids for taxes payable in 1992, and 
        thereafter.  Sections 10 and 11 are effective for aids payable 
        in 1992 and thereafter.  Sections 16 to and 18 are effective for 
        taxes becoming delinquent after December 31, 1991.  Section 17 
        is effective for taxes becoming delinquent after December 31, 
        1991, and for confessions of judgment entered into after May 31, 
        1994, when the judgment includes taxes which become delinquent 
        prior to January 1, 1992.  Section 19 is effective for costs 
        incurred after June 30, 1992.  Section 20 is effective July 1, 
        1982, and thereafter.  Section 21 is effective June 1, 1990, and 
        thereafter, provided further that no refunds of overpayments and 
        no collection of underpayments will be made for fees paid prior 
        to June 1, 1990.  Section 22 is effective for abatements granted 
        in 1992 and thereafter.  Section 23 is effective for 
        supplementary amortization state aid payable after June 30, 
        1991.  Section 24 is effective for new tax increment financing 
        districts for which the certification request is, or has been, 
        filed with the county auditor after May 1, 1988, but does not 
        apply to amendments adding geographic area to an existing 
        district. 
           Sec. 65.  [REPEALER.] 
           Minnesota Statutes 1992, sections 16A.70; 16A.71; and 
        273.22; Minnesota Statutes 1993 Supplement, section 273.1398, 
        subdivision 2a; Laws 1993, First Special Session chapter 1, 
        article 2, section 6, are repealed. 
           Sec. 66.  [EFFECTIVE DATES.] 
           Sections 5, 6, 8, 13, 36, 37, 39, 42, 58, and 65 are 
        effective the day following final enactment.  Section 64 is 
        effective June 1, 1994.  Sections 35 and 38 are effective July 
        1, 1994.  Section 4 is effective for assessment year 1992 and 
        thereafter.  Sections 9 and 14 are effective for taxes payable 
        in 1992 and thereafter.  Sections 12, 15, 23, and 50 are 
        effective for taxes payable in 1994 and thereafter.  Sections 
        21, 22, 24, 57, 61, and 62 are effective for aids payable in 
        1994 and thereafter.  Section 28 is effective for taxes and aids 
        payable in 1994 and thereafter.  Section 16 is effective for 
        assessment year 1994 and thereafter.  Sections 1 to 3, 7, 10, 18 
        to 20, 25, 27, 29 to 34, 43 to 49, 51 to 56, and 63 are 
        effective for taxes payable in 1995 and thereafter.  Section 40 
        is effective for refunds payable for rents paid in 1993 and 
        property taxes payable in 1994, and thereafter. 
                                   ARTICLE 2
                                  INCOME TAXES
           Section 1.  Minnesota Statutes 1992, section 289A.08, 
        subdivision 7, is amended to read: 
           Subd. 7.  [COMPOSITE INCOME TAX RETURNS FOR NONRESIDENT 
        PARTNERS, SHAREHOLDERS, AND BENEFICIARIES.] (a) The commissioner 
        may allow a partnership with five or more nonresident partners 
        to file a composite return and to pay the tax on behalf of 
        nonresident partners who have no other Minnesota source income.  
        This composite return must include the names, addresses, social 
        security numbers, income allocation, and tax liability for the 
        nonresident partners electing to be covered by the composite 
        return.  
           (b) The computation of a partner's tax liability must be 
        determined by multiplying the income allocated to that partner 
        by the highest rate used to determine the tax liability for 
        individuals under section 290.06, subdivision 2c.  Nonbusiness 
        deductions, standard deductions, or personal exemptions are not 
        allowed. 
           (c) The partnership must submit a request to use this 
        composite return filing method for nonresident partners.  The 
        requesting partnership must file a composite return in the form 
        prescribed by the commissioner of revenue.  The filing of a 
        composite return is considered a request to use the composite 
        return filing method. 
           (d) The electing partner must not have any Minnesota source 
        income other than the income from the partnership and other 
        electing partnerships.  If it is determined that the electing 
        partner has other Minnesota source income, the inclusion of the 
        income and tax liability for that partner under this provision 
        will not constitute a return to satisfy the requirements of 
        subdivision 1.  The tax paid for the individual as part of the 
        composite return is allowed as a payment of the tax by the 
        individual on the date on which the composite return payment was 
        made.  If the electing nonresident partner has no other 
        Minnesota source income, filing of the composite return is a 
        return for purposes of subdivision 1. 
           (e) This subdivision does not negate the requirement that 
        an individual pay estimated tax if the individual's liability 
        would exceed the requirements set forth in section 289A.25.  A 
        composite estimate may, however, be filed in a manner similar to 
        and containing the information required under paragraph (a). 
           (f) If an electing partner's share of the partnership's 
        gross income from Minnesota sources is less than the filing 
        requirements for a nonresident under this subdivision, the tax 
        liability is zero.  However, a statement showing the partner's 
        share of gross income must be included as part of the composite 
        return. 
           (g) The election provided in this subdivision is not 
        available to any partner other than a full-year nonresident 
        individual who has no other Minnesota source income. 
           (h) A corporation defined in section 290.9725 and its 
        nonresident shareholders may make an election under this 
        paragraph.  The provisions covering the partnership apply to the 
        corporation and the provisions applying to the partner apply to 
        the shareholder. 
           (i) Estates and trusts distributing current income only and 
        the nonresident individual beneficiaries of the estates or 
        trusts may make an election under this paragraph.  The 
        provisions covering the partnership apply to the estate or 
        trust.  The provisions applying to the partner apply to the 
        beneficiary.  
           Sec. 2.  Minnesota Statutes 1992, section 289A.25, 
        subdivision 5, is amended to read: 
           Subd. 5.  [AMOUNT OF REQUIRED INSTALLMENT.] The amount of 
        any installment required to be paid shall be 25 percent of the 
        required annual payment except as provided in clause (3).  The 
        term "required annual payment" means the lesser of 
           (1) 90 percent of the tax shown on the return for the 
        taxable year or 90 percent of the tax for the year if no return 
        is filed, or 
           (2) the total tax liability shown on the return of the 
        individual taxpayer for the preceding taxable year, if a return 
        showing a liability for the taxes was filed by the individual 
        taxpayer for the preceding taxable year of 12 months, or 
           (3) an amount equal to the applicable percentage of the tax 
        for the taxable year computed by placing on an annualized basis 
        the taxable income and alternative minimum taxable income for 
        the months in the taxable year ending before the month in which 
        the installment is required to be paid.  The applicable 
        percentage of the tax is 22.5 percent in the case of the first 
        installment, 45 percent for the second installment, 67.5 percent 
        for the third installment, and 90 percent for the fourth 
        installment.  For purposes of this clause, the taxable income 
        and alternative minimum taxable income shall be placed on an 
        annualized basis by 
           (i) multiplying by 12 (or in the case of a taxable year of 
        less than 12 months, the number of months in the taxable year) 
        the taxable income and alternative minimum taxable income 
        computed for the months in the taxable year ending before the 
        month in which the installment is required to be paid; and 
           (ii) dividing the resulting amount by the number of months 
        in the taxable year ending before the month in which the 
        installment date falls. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        290.091, subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For purposes of the tax imposed by 
        this section, the following terms have the meanings given: 
           (a) "Alternative minimum taxable income" means the sum of 
        the following for the taxable year: 
           (1) the taxpayer's federal alternative minimum taxable 
        income as defined in section 55(b)(2) of the Internal Revenue 
        Code; 
           (2) the taxpayer's itemized deductions allowed in computing 
        federal alternative minimum taxable income, but excluding the 
        Minnesota charitable contribution deduction and non-Minnesota 
        charitable deductions to the extent they are included in federal 
        alternative minimum taxable income under section 57(a)(6) of the 
        Internal Revenue Code, and excluding the medical expense 
        deduction; 
           (3) for depletion allowances computed under section 613A(c) 
        of the Internal Revenue Code, with respect to each property (as 
        defined in section 614 of the Internal Revenue Code), to the 
        extent not included in federal alternative minimum taxable 
        income, the excess of the deduction for depletion allowable 
        under section 611 of the Internal Revenue Code for the taxable 
        year over the adjusted basis of the property at the end of the 
        taxable year (determined without regard to the depletion 
        deduction for the taxable year); 
           (4) to the extent not included in federal alternative 
        minimum taxable income, the amount of the tax preference for 
        intangible drilling cost under section 57(a)(2) of the Internal 
        Revenue Code determined without regard to subparagraph (E); 
           (5) to the extent not included in federal alternative 
        minimum taxable income, the amount of interest income as 
        provided by section 290.01, subdivision 19a, clause (1); 
           less the sum of the amounts determined under the following 
        clauses (1) to (3) 
           (i) (1) interest income as defined in section 290.01, 
        subdivision 19b, clause (1); 
           (ii) (2) an overpayment of state income tax as provided by 
        section 290.01, subdivision 19b, clause (2), to the extent 
        included in federal alternative minimum taxable income; and 
           (iii) (3) the amount of investment interest paid or accrued 
        within the taxable year on indebtedness to the extent that the 
        amount does not exceed net investment income, as defined in 
        section 163(d)(4) of the Internal Revenue Code.  Interest does 
        not include amounts deducted in computing federal adjusted gross 
        income. 
           In the case of an estate or trust, alternative minimum 
        taxable income must be computed as provided in section 59(c) of 
        the Internal Revenue Code. 
           (b) "Internal Revenue Code" means the Internal Revenue Code 
        of 1986, as amended through December 31, 1992. 
           (c) "Investment interest" means investment interest as 
        defined in section 163(d)(3) of the Internal Revenue Code. 
           (d) "Tentative minimum tax" equals seven percent of 
        alternative minimum taxable income after subtracting the 
        exemption amount determined under subdivision 3. 
           (e) "Regular tax" means the tax that would be imposed under 
        this chapter (without regard to this section and section 
        290.032), reduced by the sum of the nonrefundable credits 
        allowed under this chapter.  
           (f) "Net minimum tax" means the minimum tax imposed by this 
        section. 
           (g) "Minnesota charitable contribution deduction" means a 
        charitable contribution deduction under section 170 of the 
        Internal Revenue Code to or for the use of an entity described 
        in section 290.21, subdivision 3, clauses (a) to (e). 
           Sec. 4.  Minnesota Statutes 1992, section 290.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INCOME NOT DERIVED FROM CONDUCT OF A TRADE OR 
        BUSINESS.] The income of a taxpayer subject to the allocation 
        rules that is not derived from the conduct of a trade or 
        business must be assigned in accordance with paragraphs (a) to 
        (f):  
           (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from 
        labor or personal or professional services is assigned to this 
        state if, and to the extent that, the labor or services are 
        performed within it; all other income from such sources is 
        treated as income from sources without this state.  
           Severance pay shall be considered income from labor or 
        personal or professional services. 
           (2) In the case of an individual who is a nonresident of 
        Minnesota and who is an athlete or entertainer, income from 
        compensation for labor or personal services performed within 
        this state shall be determined in the following manner:  
           (i) The amount of income to be assigned to Minnesota for an 
        individual who is a nonresident salaried athletic team employee 
        shall be determined by using a fraction in which the denominator 
        contains the total number of days in which the individual is 
        under a duty to perform for the employer, and the numerator is 
        the total number of those days spent in Minnesota; and 
           (ii) The amount of income to be assigned to Minnesota for 
        an individual who is a nonresident, and who is an athlete or 
        entertainer not listed in clause (i), for that person's athletic 
        or entertainment performance in Minnesota shall be determined by 
        assigning to this state all income from performances or athletic 
        contests in this state.  
           (3) For purposes of this section, amounts received by a 
        nonresident from the United States, its agencies or 
        instrumentalities, the Federal Reserve Bank, the state of 
        Minnesota or any of its political or governmental subdivisions, 
        or a Minnesota volunteer firefighters' relief association, by 
        way of payment as a pension, public employee retirement benefit, 
        or any combination of these, or as a retirement or survivor's 
        benefit made from a plan qualifying under section 401, 403, 408, 
        or 409, or as defined in section 403(b) or 457 of the Internal 
        Revenue Code of 1986, as amended through December 31, 1991, are 
        not considered income derived from carrying on a trade or 
        business or from performing personal or professional services in 
        Minnesota, and are not taxable under this chapter.  
           (b) Income or gains from tangible property located in this 
        state that is not employed in the business of the recipient of 
        the income or gains must be assigned to this state. 
           (c) Except upon the sale of a partnership interest or the 
        sale of stock of an S corporation, Income or gains from 
        intangible personal property not employed in the business of the 
        recipient of the income or gains must be assigned to this state 
        if the recipient of the income or gains is a resident of this 
        state or is a resident trust or estate.  
           Gain on the sale of a partnership interest is allocable to 
        this state in the ratio of the original cost of partnership 
        tangible property in this state to the original cost of 
        partnership tangible property everywhere, determined at the time 
        of the sale.  If more than 50 percent of the value of the 
        partnership's assets consists of intangibles, gain or loss from 
        the sale of the partnership interest is allocated to this state 
        in accordance with the sales factor of the partnership for its 
        first full tax period immediately preceding the tax period of 
        the partnership during which the partnership interest was sold. 
           Gain on the sale of goodwill or income from a covenant not 
        to compete that is connected with a business operating all or 
        partially in Minnesota is allocated to this state to the extent 
        that the income from the business in the year preceding the year 
        of sale was assignable to Minnesota under subdivision 3.  
           (d) Income from the operation of a farm shall be assigned 
        to this state if the farm is located within this state and to 
        other states only if the farm is not located in this state.  
           (e) Income from winnings on Minnesota pari-mutuel betting 
        tickets, the Minnesota state lottery, and lawful gambling as 
        defined in section 349.12, subdivision 24, conducted within the 
        boundaries of the state of Minnesota shall be assigned to this 
        state.  
           (f) All items of gross income not covered in paragraphs (a) 
        to (e) and not part of the taxpayer's income from a trade or 
        business shall be assigned to the taxpayer's domicile. 
           Sec. 5.  Minnesota Statutes 1992, section 290.371, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTIONS.] A corporation is not required to 
        file a notice of business activities report if:  
           (1) by the end of an accounting period for which it was 
        otherwise required to file a notice of business activities 
        report under this section, it had received a certificate of 
        authority to do business in this state; 
           (2) a timely return or report has been filed under section 
        290.05, subdivision 4; or 289A.08; 
           (3) the corporation is exempt from taxation under this 
        chapter pursuant to section 290.05, subdivision 1; 
           (4) the corporation's activities in Minnesota, or the 
        interests in property which it owns, consist solely of 
        activities or property exempted from jurisdiction to tax under 
        section 290.015, subdivision 3, paragraph (b); or 
           (5) the corporation has a valid election in effect under 
        section 1362 of the Internal Revenue Code of 1986, as amended 
        through December 31, 1991. 
           Sec. 6.  Laws 1993, chapter 375, article 2, section 37, is 
        amended to read: 
           Sec. 37.  [EFFECTIVE DATE.] 
           Section 1 is effective for property taxes payable in 1993 
        and thereafter.  
           Sections 2 to 8, 10, 19, 27, 32, 34, and 36 are effective 
        the day following final enactment.  
           Sections 9, 11 to 18, and 20 are effective for tax returns 
        due after December 31, 1992.  
           Section 21 is effective for tax returns due for the 
        calendar year 1993, and thereafter. 
           Sections 22 to 26 and 28 to 31 are effective for tax years 
        beginning after December 31, 1992. 
           Section 33 is effective beginning with refunds based on 
        gross property taxes payable in 1989, and thereafter. 
           Section 35 is effective for overpayments of taxes or other 
        payments first becoming due on or after August 1, 1993, and for 
        claims for refund arising before that date, the running of the 
        time in which to make a claim will commence August 1, 1993. 
           Sec. 7.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective for taxable years beginning 
        after December 31, 1993.  Section 5 is effective the day 
        following final enactment.  Section 6 is effective for property 
        taxes payable in 1994 and thereafter. 
                                   ARTICLE 3
                                  SALES TAXES
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        297A.01, subdivision 3, is amended to read: 
           Subd. 3.  A "sale" and a "purchase" includes, but is not 
        limited to, each of the following transactions: 
           (a) Any transfer of title or possession, or both, of 
        tangible personal property, whether absolutely or conditionally, 
        and the leasing of or the granting of a license to use or 
        consume tangible personal property other than manufactured homes 
        used for residential purposes for a continuous period of 30 days 
        or more, for a consideration in money or by exchange or barter; 
           (b) The production, fabrication, printing, or processing of 
        tangible personal property for a consideration for consumers who 
        furnish either directly or indirectly the materials used in the 
        production, fabrication, printing, or processing; 
           (c) The furnishing, preparing, or serving for a 
        consideration of food, meals, or drinks.  "Sale" does not 
        include: 
           (1) meals or drinks served to patients, inmates, or persons 
        residing at hospitals, sanitariums, nursing homes, senior 
        citizens homes, and correctional, detention, and detoxification 
        facilities; 
           (2) meals or drinks purchased for and served exclusively to 
        individuals who are 60 years of age or over and their spouses or 
        to the handicapped and their spouses by governmental agencies, 
        nonprofit organizations, agencies, or churches or pursuant to 
        any program funded in whole or part through 42 USCA sections 
        3001 through 3045, wherever delivered, prepared or served; or 
           (3) meals and lunches served at public and private schools, 
        universities, or colleges.  Notwithstanding section 297A.25, 
        subdivision 2, taxable food or meals include, but are not 
        limited to, the following:  
           (i) heated food or drinks; 
           (ii) sandwiches prepared by the retailer; 
           (iii) single sales of prepackaged ice cream or ice milk 
        novelties prepared by the retailer; 
           (iv) hand-prepared or dispensed ice cream or ice milk 
        products including cones, sundaes, and snow cones; 
           (v) soft drinks and other beverages prepared or served by 
        the retailer; 
           (vi) gum; 
           (vii) ice; 
           (viii) all food sold in vending machines; 
           (ix) party trays prepared by the retailers; and 
           (x) all meals and single servings of packaged snack food, 
        single cans or bottles of pop, sold in restaurants and bars; 
           (d) The granting of the privilege of admission to places of 
        amusement, recreational areas, or athletic events, except a 
        world championship football game sponsored by the national 
        football league, and the privilege of having access to and the 
        use of amusement devices, tanning facilities, reducing salons, 
        steam baths, turkish baths, health clubs, and spas or athletic 
        facilities; 
           (e) The furnishing for a consideration of lodging and 
        related services by a hotel, rooming house, tourist court, motel 
        or trailer camp and of the granting of any similar license to 
        use real property other than the renting or leasing thereof for 
        a continuous period of 30 days or more; 
           (f) The furnishing for a consideration of electricity, gas, 
        water, or steam for use or consumption within this state, or 
        local exchange telephone service, intrastate toll service, and 
        interstate toll service, if that service originates from and is 
        charged to a telephone located in this state.  Telephone service 
        includes paging services and private communication service, as 
        defined in United States Code, title 26, section 4252(d), except 
        for private communication service purchased by an agent acting 
        on behalf of the state lottery.  The furnishing for a 
        consideration of access to telephone services by a hotel to its 
        guests is a sale under this clause.  Sales by municipal 
        corporations in a proprietary capacity are included in the 
        provisions of this clause.  The furnishing of water and sewer 
        services for residential use shall not be considered a sale.  
        The sale of natural gas to be used as a fuel in vehicles 
        propelled by natural gas shall not be considered a sale for the 
        purposes of this section; 
           (g) The furnishing for a consideration of cable television 
        services, including charges for basic service, charges for 
        premium service, and any other charges for any other 
        pay-per-view, monthly, or similar television services; 
           (h) Notwithstanding section 297A.25, subdivisions 9 and 12, 
        the sales of racehorses including claiming sales and fees paid 
        for breeding racehorses or horses previously used for racing 
        shall be considered a "sale" and a "purchase."  "Racehorse" 
        means a horse that is or is intended to be used for racing and 
        whose birth has been recorded by the Jockey Club or the United 
        States Trotting Association or the American Quarter Horse 
        Association.  "Sale" does not include fees paid for breeding 
        horses that are not racehorses; 
           (i) The furnishing for a consideration of parking services, 
        whether on a contractual, hourly, or other periodic basis, 
        except for parking at a meter; 
           (j) The furnishing for a consideration of services listed 
        in this paragraph: 
           (i) laundry and dry cleaning services including cleaning, 
        pressing, repairing, altering, and storing clothes, linen 
        services and supply, cleaning and blocking hats, and carpet, 
        drapery, upholstery, and industrial cleaning.  Laundry and dry 
        cleaning services do not include services provided by coin 
        operated facilities operated by the customer; 
           (ii) motor vehicle washing, waxing, and cleaning services, 
        including services provided by coin-operated facilities operated 
        by the customer, and rustproofing, undercoating, and towing of 
        motor vehicles; 
           (iii) building and residential cleaning, maintenance, and 
        disinfecting and exterminating services; 
           (iv) services provided by detective agencies, security 
        services, burglar, fire alarm, and armored car services not 
        including services performed within the jurisdiction they serve 
        by off-duty licensed peace officers as defined in section 
        626.84, subdivision 1; 
           (v) pet grooming services; 
           (vi) lawn care, fertilizing, mowing, spraying and sprigging 
        services; garden planting and maintenance; arborist services; 
        tree, bush, and shrub pruning, bracing, spraying, and surgery; 
        tree, bush, shrub and stump removal; and tree trimming for 
        public utility lines.  Services performed under a construction 
        contract for the installation of shrubbery, plants, sod, trees, 
        bushes, and similar items are not taxable; 
           (vii) solid waste collection and disposal services as 
        described in section 297A.45; 
           (viii) massages, except when provided by a licensed health 
        care facility or professional or upon written referral from a 
        licensed health care facility or professional for treatment of 
        illness, injury, or disease; and 
           (ix) the furnishing for consideration of lodging, board and 
        care services for animals in kennels and other similar 
        arrangements, but excluding veterinary and horse boarding 
        services. 
        The services listed in this paragraph are taxable under section 
        297A.02 if the service is performed wholly within Minnesota or 
        if the service is performed partly within and partly without 
        Minnesota and the greater proportion of the service is performed 
        in Minnesota, based on the cost of performance.  In applying the 
        provisions of this chapter, the terms "tangible personal 
        property" and "sales at retail" include taxable services and the 
        provision of taxable services, unless specifically provided 
        otherwise.  Services performed by an employee for an employer 
        are not taxable under this paragraph.  Services performed by a 
        partnership or association for another partnership or 
        association are not taxable under this paragraph if one of the 
        entities owns or controls more than 80 percent of the voting 
        power of the equity interest in the other entity.  Services 
        performed between members of an affiliated group of corporations 
        are not taxable.  For purposes of this section, "affiliated 
        group of corporations" includes those entities that would be 
        classified as a member of an affiliated group under United 
        States Code, title 26, section 1504, and who are eligible to 
        file a consolidated tax return for federal income tax purposes; 
           (k) A "sale" and a "purchase" includes the transfer of 
        computer software, meaning information and directions that 
        dictate the function performed by data processing equipment.  A 
        "sale" and a "purchase" does not include the design, 
        development, writing, translation, fabrication, lease, or 
        transfer for a consideration of title or possession of a custom 
        computer program; and 
           (l) The granting of membership in a club, association, or 
        other organization if: 
           (1) the club, association, or other organization makes 
        available for the use of its members sports and athletic 
        facilities (without regard to whether a separate charge is 
        assessed for use of the facilities); and 
           (2) use of the sports and athletic facilities is not made 
        available to the general public on the same basis as it is made 
        available to members.  
        Granting of membership includes both one-time initiation fees 
        and periodic membership dues.  Sports and athletic facilities 
        include golf courses, tennis, racquetball, handball and squash 
        courts, basketball and volleyball facilities, running tracks, 
        exercise equipment, swimming pools, and other similar athletic 
        or sports facilities.  The provisions of this paragraph do not 
        apply to camps or other recreation facilities owned and operated 
        by an exempt organization under section 501(c)(3) of the 
        Internal Revenue Code of 1986, as amended through December 31, 
        1986, for educational and social activities for young people 
        primarily age 18 and under.  
           Sec. 2.  Minnesota Statutes 1992, section 297A.021, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLICATION IN STATE REGISTER.] The commissioner 
        of revenue shall publish in the State Register by November 1 of 
        each year a list of the counties imposing the local option sales 
        tax under this section, if the commissioner has received 
        notification by August 1 that a county or counties will be 
        imposing or rescinding the local option sales tax under this 
        section.  
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        297A.07, subdivision 1, is amended to read: 
           Subdivision 1.  [HEARINGS.] If any person fails to comply 
        with this chapter or the sales and use tax provisions of chapter 
        289A or the rules adopted under this chapter thereunder, without 
        reasonable cause, the commissioner may schedule a hearing 
        requiring the person to show cause why the permit should not be 
        revoked.  The commissioner must give the person 15 days' notice 
        in writing, specifying the time and place of the hearing and the 
        reason for the proposed revocation.  The notice shall also 
        advise the person of the person's right to contest the 
        revocation under this subdivision, the general procedures for a 
        contested case hearing under chapter 14, and the notice 
        requirement under subdivision 2.  The notice may be served 
        personally or by mail in the manner prescribed for service of an 
        order of assessment.  
           Sec. 4.  Minnesota Statutes 1992, section 297B.11, is 
        amended to read: 
           297B.11 [REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE; 
        POWERS.] 
           The state commissioner of revenue is charged with the 
        administration of the motor vehicle excise tax.  The 
        commissioner may prescribe all rules not inconsistent with the 
        provisions of this chapter, necessary and advisable for the 
        proper and efficient administration of the law.  The collection 
        of this motor vehicle excise tax shall be carried out by the 
        motor vehicle registrar who shall act as the agent of the 
        commissioner and who shall be subject to all rules not 
        inconsistent with the provisions of this chapter, that may be 
        prescribed by the commissioner.  
           The provisions of chapter chapters 289A and 297A relating 
        to the commissioner's authority to audit, assess, and collect 
        the tax are applicable to the motor vehicle excise tax.  The 
        commissioner may impose civil penalties as provided in chapter 
        chapters 289A and 297A, and the additional tax and penalties are 
        subject to interest at the rate provided in section 270.75.  
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective the day following final 
        enactment.  
                                   ARTICLE 4
                                 SPECIAL TAXES
           Section 1.  Minnesota Statutes 1992, section 115A.923, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNT OF FEE.] (a) The operator of a 
        mixed municipal solid waste disposal facility outside of the 
        metropolitan area shall charge a fee on solid waste accepted and 
        disposed of at the facility as follows:  
           (1) a facility that weighs the waste that it accepts must 
        charge a fee of $2 per cubic yard based on equivalent cubic 
        yards of waste accepted at the entrance of the facility; 
           (2) a facility that does not weigh the waste but that 
        measures the volume of the waste that it accepts must charge a 
        fee of $2 per cubic yard of waste accepted at the entrance of 
        the facility; and 
           (3) waste residue from recycling facilities at which 
        recyclable materials are separated or processed for the purpose 
        of recycling, or from energy and resource recovery facilities at 
        which solid waste is processed for the purpose of extracting, 
        reducing, converting to energy, or otherwise separating and 
        preparing solid waste for reuse is exempt from the fee imposed 
        by this subdivision if there is at least an 85 percent volume 
        reduction in the solid waste processed.  
           (b) To qualify for exemption under paragraph (a), clause 
        (3), waste residue must be brought to a disposal facility 
        separately.  The commissioner of revenue, with the advice and 
        assistance of the agency, shall prescribe procedures for 
        determining the amount of waste residue qualifying for exemption.
           Sec. 2.  Minnesota Statutes 1992, section 297.01, 
        subdivision 14, is amended to read: 
           Subd. 14.  "Subjobber" means any person who acquires 
        stamped cigarettes or other state's stamped cigarettes for the 
        primary purpose of resale to retailers, and any licensed 
        distributor who delivers to and sells or distributes stamped 
        cigarettes from a place of business other than that licensed in 
        the distributor's license.  The definition of subjobber does not 
        include the occasional sale of stamped cigarettes from one 
        retailer to another.  Notwithstanding the foregoing, "subjobber" 
        shall also mean any person who is a vending machine operator.  A 
        vending machine operator is any person whose principal business 
        is operating, or owning and leasing to operators, machines for 
        the vending of merchandise or service.  
           For the purpose of this section, any subjobber that sells 
        at retail must maintain a separate inventory, substantiated with 
        invoices, that reflect the cigarettes were acquired for retail 
        sale.  
           Sec. 3.  Minnesota Statutes 1992, section 297.11, 
        subdivision 5, is amended to read: 
           Subd. 5.  [TRANSPORTING UNSTAMPED PACKAGES.] No person 
        shall transport into, or receive, carry, or move from place to 
        place in this state, any packages of cigarettes not stamped in 
        accordance with the provisions of Laws 1951, this chapter 569, 
        except in the course of interstate commerce, unless the 
        cigarettes are moving from a public warehouse to a distributor 
        upon orders from the manufacturer or distributor.  This 
        subdivision shall not apply to a person carrying for personal 
        use not more than 200 cigarettes when those cigarettes have had 
        the individual packages or seals thereof broken and are intended 
        for personal use by that person and not to be sold or offered 
        for sale.  
           Common carriers and contract carriers transporting 
        cigarettes into this state shall file with the commissioner 
        reports of all such shipments other than those which are 
        delivered to public warehouses of first destination in this 
        state which are licensed under the provisions of chapter 231.  
        Such reports shall be filed monthly on or before the 10th day of 
        each month and shall show with respect to deliveries made in the 
        preceding month:  the date, point of origin, point of delivery, 
        name of consignee, the quantity of cigarettes delivered, and 
        such other information as the commissioner may require.  
           All common carriers and contract carriers transporting 
        cigarettes into Minnesota shall permit examination by the 
        commissioner of their records relating to the shipment of 
        cigarettes.  
           Any person who fails or refuses to transmit to the 
        commissioner the required reports or whoever refuses to permit 
        the examination of the records by the commissioner shall be 
        guilty of a gross misdemeanor.  
           Sec. 4.  Minnesota Statutes 1992, section 297C.01, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMMEMORATIVE BOTTLES.] "Commemorative bottles" 
        are ceramic commemorative bottles or other specially designed 
        decanters which have value as collectors items and which have 
        unbroken federal tax stamps thereon contain alcoholic beverage. 
           Sec. 5.  [REPEALER.] 
           Minnesota Statutes 1992, section 115A.923, subdivision 6, 
        is repealed. 
           Presented to the governor April 11, 1994 
           Signed by the governor April 13, 1994, 1:15 p.m.

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