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1992 Minnesota Session Laws

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                         Laws of Minnesota 1992 

                        CHAPTER 511-H.F.No. 2940 
           An act relating to the financing and operation of 
          government in Minnesota; revising the operation of the 
          local government trust fund; modifying the 
          administration, computation, collection, and 
          enforcement of taxes; imposing taxes; changing tax 
          rates, bases, credits, exemptions, withholding, and 
          payments; modifying aids to local governments; 
          authorizing and modifying provisions relating to 
          property tax classifications and levies; reducing the 
          amount in the budget and cash flow reserve account; 
          authorizing imposition of local taxes; updating 
          references to the Internal Revenue Code; modifying 
          provisions relating to political campaign contribution 
          refunds; changing certain bonding and local government 
          finance provisions; changing definitions; making 
          technical corrections and clarifications; enacting 
          provisions relating to certain cities, counties, 
          school districts, special taxing districts, and 
          watershed districts; appropriating money; amending 
          Minnesota Statutes 1990, sections 60A.15, subdivision 
          1; 60A.19, subdivision 6; 103B.241; 103B.255, by 
          adding a subdivision; 103B.335; 103F.221, subdivision 
          3; 124.2131, subdivision 1; 174.27; 216C.06, by adding 
          a subdivision; 256E.06, by adding a subdivision; 
          270.07, subdivision 3; 270.075, subdivision 1; 270.69, 
          by adding a subdivision; 270A.05; 270A.07, 
          subdivisions 1 and 2; 270A.11; 270B.01, subdivision 8; 
          270B.12, by adding a subdivision; 271.06, subdivision 
          7; 272.115; 273.11, by adding subdivisions; 273.1104, 
          subdivision 1; 273.135, subdivision 2; 273.1391, 
          subdivision 2; 274.19, subdivision 8; 274.20, 
          subdivisions 1, 2, and 4; 275.065, subdivisions 1a and 
          4; 275.125, subdivision 10; 278.02; 279.37, 
          subdivision 1; 281.23, subdivision 8; 282.01, 
          subdivision 7; 282.012; 282.016; 282.09, subdivision 
          1; 282.241; 282.36; 289A.11, subdivision 3; 289A.25, 
          by adding a subdivision; 289A.26, subdivisions 3, 4, 
          7, and 9; 289A.50, subdivision 5; 290.05, subdivision 
          4; 290.091, subdivision 6; 290.0922, subdivision 2; 
          290.9201, subdivision 11; 290.923, by adding a 
          subdivision; 290A.03, subdivision 8; 290A.19; 290A.23; 
          297A.07; 297A.14, subdivision 1; 297A.15, subdivisions 
          5 and 6; 297A.25, subdivisions 7, 11, 24, 34, 45, and 
          by adding subdivisions; 297B.01, subdivision 8; 
          298.24, subdivision 1; 298.28, by adding a 
          subdivision; 299F.21, subdivision 1; 327C.01, by 
          adding a subdivision; 327C.12; 373.40, subdivision 7; 
          381.12, subdivision 2; 383.06; 383B.152; 398A.06, 
          subdivision 2; 401.02, subdivision 3; 401.05; 462A.22, 
          subdivision 1; 469.004, subdivisions 1 and 1a; 
          469.034; 469.107, subdivision 2; 469.153, subdivision 
          2; 469.177, subdivision 1a; 471.571, subdivision 2; 
          473.388, subdivision 4; 473.446, subdivision 1; 
          473.711, subdivision 2; 473.714; 473H.10, subdivision 
          3; 477A.013, subdivision 5; 488A.20, subdivision 4; 
          541.07; 641.24; Minnesota Statutes 1991 Supplement, 
          sections 4A.02; 16A.15, subdivision 6; 16A.711, 
          subdivisions 3, 4, and by adding a subdivision; 
          47.209; 69.021, subdivisions 5 and 6; 124A.23, 
          subdivision 1; 256.025, subdivisions 3 and 4; 256E.05, 
          subdivision 3; 256E.09, subdivision 6; 270A.04, 
          subdivision 2; 270A.08, subdivision 2; 271.21, 
          subdivision 6; 272.02, subdivision 1; 273.124, 
          subdivisions 1, 6, 9, and 13; 273.13, subdivisions 22, 
          25, and 33; 273.1398, subdivisions 5, 6, and 7; 
          273.1398, 273.1399; 275.065, subdivisions 1, 3, 5a, 
          and 6; 275.125, subdivisions 5 and 6j; 275.61; 277.01, 
          subdivision 1; 277.17; 278.01, subdivision 1; 278.05, 
          subdivision 6; 279.01, subdivision 1; 279.03, 
          subdivision 1a; 281.17; 289A.18, subdivision 4; 
          289A.20, subdivisions 1 and 4; 289A.26, subdivisions 1 
          and 6; 289A.37, subdivision 1; 290.01, subdivision 19; 
          290.05, subdivision 3; 290.06, subdivision 23; 
          290.0671, subdivision 1; 290.091, subdivision 2; 
          290.0921, subdivision 8; 290.0922, subdivision 1; 
          290A.04, subdivision 2h; 297A.135, subdivision 1, and 
          by adding a subdivision; 297A.21, subdivision 4; 
          297A.25, subdivision 12; 375.192, subdivision 2; 
          423A.02, subdivision 1a; 477A.011, subdivisions 27 and 
          29; 477A.012, subdivision 6; 477A.013, subdivisions 1 
          and 3; 477A.03, subdivision 1; 508.25; 508A.25; Laws 
          1953, chapter 560, section 2, subdivision 3; Laws 
          1971, chapter 773, section 1, subdivision 2, as 
          amended; and section 2, as amended; Laws 1991, chapter 
          291, article 1, section 65; and article 7, section 27; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 13; 16A; 60A; 207A; 273; 275; 289A; 290; 
          290A; 297A; 298; 473F; 477A; repealing Minnesota 
          Statutes 1990, sections 60A.15, subdivision 6; 
          134.342, subdivisions 2 and 4; 275.065, subdivision 
          1b; 278.01, subdivision 2; 289A.12, subdivision 1; 
          290.48, subdivision 7; 297.32, subdivision 7; 
          Minnesota Statutes 1991 Supplement, sections 271.04, 
          subdivision 2; 273.124, subdivision 15; 295.367; Laws 
          1991, chapter 291, article 2, section 3; and article 
          15, section 9. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                        AIDS TO LOCAL GOVERNMENTS
    Section 1.  Minnesota Statutes 1991 Supplement, section 
16A.711, subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL FUND ADVANCES.] If the money in the 
trust fund is insufficient to make payments on the dates 
provided by law, but the commissioner estimates receipts for the 
fiscal year biennium will be sufficient, the commissioner shall 
advance money from the general fund to the trust fund necessary 
to make the payments.  On or before the close of the biennium 
the trust shall repay the advances with interest, calculated at 
the rate of earnings on invested treasurer's cash, to the 
general fund. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
16A.711, is amended by adding a subdivision to read: 
    Subd. 5.  [ADJUSTMENTS FOR LOCAL GOVERNMENT TRUST FUND 
REVENUES.] For the second fiscal year of each biennium, the 
commissioner of revenue shall make adjustments in aid amounts so 
that the anticipated total obligations of the local government 
trust fund are equal to anticipated total revenues. 
    In the event that anticipated total obligations of the 
trust fund exceed anticipated total revenues, each 
jurisdiction's aid will be reduced as provided under section 
477A.0132.  For fiscal year 1993 only, if reductions are 
necessary in an amount greater than $6,700,000, the additional 
reduction for the shortfall beyond $6,700,000 will be applied 
only to aids under section 477A.013. 
    In the event that anticipated total obligations of the 
trust fund are less than anticipated total revenues, aid amounts 
for the following programs will be proportionately increased to 
bring anticipated total expenditures into conformance with 
anticipated total revenues: 
    (1) local government aid and equalization aid under section 
477A.013; 
    (2) community social services aid under section 256E.06; 
and 
    (3) county criminal justice aid under section 477A.0121. 
    If the commissioner estimates further aid adjustments are 
necessary after aid amounts have already been certified, but 
before all aid amounts have been paid, all remaining aid 
payments will be increased or decreased proportionately. 
    Sec. 3.  [16A.712] [LOCAL GOVERNMENT TRUST; APPROPRIATIONS 
IN FISCAL YEAR 1993 AND SUBSEQUENT YEARS.] 
    (a) The amounts necessary to make the following payments in 
fiscal year 1993 and subsequent years are appropriated from the 
local government trust fund to the commissioner of revenue 
unless otherwise specified: 
    (1) attached machinery aid to counties under section 
273.138; 
    (2) in fiscal year 1993 only, supplemental homestead credit 
under section 273.1391.  The school district's supplemental 
homestead credit shall be appropriated to the commissioner of 
education; 
    (3) $560,000 in fiscal year 1993 and $300,000 annually in 
fiscal years 1994 and 1995 for tax administration; 
    (4) $105,000 annually to the commissioner of finance in 
fiscal years 1993, 1994, and 1995 to administer the trust fund; 
    (5) $25,000 annually to the advisory commission on 
intergovernmental relations in fiscal years 1993, 1994, and 1995 
to pay nonlegislative members' per diem expenses and such other 
expenses as the commission deems appropriate; 
    (6) $350,000 in fiscal year 1993 and $1,200,000 annually in 
fiscal years 1994 and 1995 to the intergovernmental information 
systems advisory council to develop a local government financial 
reporting system, with the participation and ongoing oversight 
of the legislative commission on planning and fiscal policy; and 
    (7) in fiscal year 1993 only, the transition credit under 
section 273.1398, subdivision 5, and the disparity reduction 
credit under section 273.1398, subdivision 4, for school 
districts.  The school districts' transition credit and 
disparity reduction credit shall be appropriated to the 
commissioner of education. 
    (b) In addition, the legislature shall appropriate the rest 
of the trust fund receipts for fiscal year 1993 and subsequent 
years to finance intergovernmental aid formulas or programs 
prescribed by law. 
    Sec. 4.  [207A.10] [REIMBURSEMENT OF ELECTION EXPENSES.] 
    Subdivision 1.  [DUTIES OF SECRETARY OF STATE.] The 
secretary of state shall reimburse the counties and 
municipalities for expenses incurred in the administration of 
the presidential primary from the funds appropriated by the 
legislature for this purpose, as provided in this section.  Up 
to $7,500 of the appropriation for reimbursement of election 
expenses may be retained by the secretary of state to administer 
the reimbursement program. 
    Subd. 2.  [REIMBURSABLE EXPENSES.] The following expenses 
are eligible for reimbursement:  salaries of election judges; 
postage for absentee ballots; preparation of polling places, in 
an amount not to exceed $25 per polling place; preparation of 
electronic voting systems or lever voting machines, in an amount 
not to exceed $50 per precinct; compensation of county 
canvassing board members; and compensation for temporary staff 
or overtime payments. 
     Subd. 3.  [CERTIFICATION OF COSTS.] The county auditor 
shall certify to the secretary of state the costs incurred by 
the county for the presidential primary.  The municipal clerk 
shall certify to the secretary of state the costs incurred by 
the municipality for the presidential primary.  If the total 
amount certified by all units for temporary staff and overtime 
payments exceeds $480,000, the secretary of state shall reduce 
those amounts so that they do not exceed $480,000.  The 
secretary of state shall provide each county and municipality 
with the appropriate forms for this certification.  The 
secretary of state may require that the county auditor or 
municipal clerk provide documentation of actual expenditures 
made for the presidential primary.  The certification of costs 
must be submitted to the secretary of state no later than 60 
days after the presidential primary.  No reimbursement of 
expenses must be made unless the certification of costs has been 
submitted as provided in this subdivision. 
    Subd. 4.  [APPORTIONMENT OF REIMBURSEMENTS.] If the total 
amount of requests for reimbursement of expenses exceeds the 
total amount appropriated to the secretary of state for this 
purpose, the secretary of state shall proportionately reduce the 
reimbursements so that they do not exceed the amount 
appropriated. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
256.025, subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENT METHODS.] (a) Beginning July 1, 1991, 
the state will reimburse counties for the county share of county 
agency expenditures for benefits and services distributed under 
subdivision 2 and funded by the human services account 
established under section 273.1392, except as follows: 
    (1) beginning July 1, 1992, the county shall pay 25 percent 
of the costs of the growth in emergency general assistance 
payments which exceed expenditures during the base year of 
calendar year 1990; 
    (2) beginning July 1, 1992, the county shall pay 25 percent 
of the costs of the growth in eligible general assistance 
negotiated rate payments which exceed expenditures during the 
base year of calendar year 1990; 
    (3) beginning July 1, 1992, the county shall pay 15 percent 
of the costs of the growth in Minnesota supplemental aid 
negotiated rate payments made which exceed expenditures during 
the base year of calendar year 1990; 
    (4) beginning July 1, 1992, the county shall pay 50 percent 
of the nonfederal portion of the growth in emergency assistance 
payments made which exceed expenditures during the base year of 
calendar year 1990. 
    (b) Payments under subdivision 4 are only for client 
benefits and services distributed under subdivision 2 and do not 
include reimbursement for county administrative expenses. 
    (c) The state and the county agencies shall pay for 
assistance programs as follows: 
    (1) Where the state issues payments for the programs, the 
county shall monthly advance to the state, as required by the 
department of human services, the portion of program costs not 
met by federal and state funds.  The advance shall be an 
estimate that is based on actual expenditures from the prior 
period and that is sufficient to compensate for the county share 
of disbursements as well as state and federal shares of 
recoveries; 
     (2) Where the county agencies issue payments for the 
programs, the state shall monthly advance to counties all 
federal funds available for those programs together with an 
amount of state funds equal to the state share of expenditures; 
and 
     (3) Payments made under this paragraph are subject to 
section 256.017.  Adjustment of any overestimate or 
underestimate in advances shall be made by the state agency in 
any succeeding month. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
256.025, subdivision 4, is amended to read: 
    Subd. 4.  [PAYMENT SCHEDULE.] Except as provided for in 
subdivision 3, beginning July 1, 1991, the state will reimburse 
counties, according to the following payment schedule, for the 
county share of county agency expenditures for the programs 
specified in subdivision 2. 
    (a) Beginning July 1, 1991, the state will reimburse or pay 
the county share of county agency expenditures according to the 
reporting cycle as established by the commissioner, for the 
programs identified in subdivision 2.  Payments for the period 
of January 1 through July 31, for calendar years 1991, 1992, and 
1993 shall be made on or before July 10 in each of those years.  
Payments for the period August through December for calendar 
years 1991, 1992, and 1993 shall be made on or before the third 
of each month thereafter through December 31 in each of those 
years. 
    (b) Payment for 1/24 of the base amount and the January 
1994 county share of county agency expenditures growth amount 
for the programs identified in subdivision 2 shall be made on or 
before January 3, 1994.  For the period of February 1, 1994, 
through July 31, 1994, payment of the base amount shall be made 
on or before July 10, 1994, and payment of the growth amount 
over the base amount shall be made on or before the third of 
each month July 10, 1994.  Payments for the period August 1994 
through December 1994 shall be made on or before the third of 
each month thereafter through December 31, 1994. 
    (c) Payment for the county share of county agency 
expenditures during January 1995 shall be made on or before 
January 3, 1995.  Payment for 1/24 of the base amount and the 
February 1995 county share of county agency expenditures growth 
amount for the programs identified in subdivision 2 shall be 
made on or before February 3, 1995.  For the period of March 1, 
1995, through July 31, 1995, payment of the base amount shall be 
made on or before July 10, 1995, and payment of the growth 
amount over the base amount shall be made on or before the third 
of each month July 10, 1995.  Payments for the period August 
1995 through December 1995 shall be made on or before the third 
of each month thereafter through December 31, 1995. 
    (d) Monthly payments for the county share of county agency 
expenditures from January 1996 through February 1996 shall be 
made on or before the third of each month through February 
1996.  Payment for 1/24 of the base amount and the March 1996 
county share of county agency expenditures growth amount for the 
programs identified in subdivision 2 shall be made on or before 
March 1996.  For the period of April 1, 1996, through July 31, 
1996, payment of the base amount shall be made on or before July 
10, 1996, and payment of the growth amount over the base amount 
shall be made on or before the third of each month July 10, 
1996.  Payments for the period August 1996 through December 1996 
shall be made on or before the third of each month thereafter 
through December 31, 1996. 
    (e) Monthly payments for the county share of county agency 
expenditures from January 1997 through March 1997 shall be made 
on or before the third of each month through March 1997.  
Payment for 1/24 of the base amount and the April 1997 county 
share of county agency expenditures growth amount for the 
programs identified in subdivision 2 shall be made on or before 
April 3, 1997.  For the period of May 1, 1997, through July 31, 
1997, payment of the base amount shall be made on or before July 
10, 1997, and payment of the growth amount over the base amount 
shall be made on or before the third of each month July 10, 
1997.  Payments for the period August 1997 through December 1997 
shall be made on or before the third of each month thereafter 
through December 31, 1997. 
    (f) Monthly payments for the county share of county agency 
expenditures from January 1998 through April 1998 shall be made 
on or before the third of each month through April 1998.  
Payment for 1/24 of the base amount and the May 1998 county 
share of county agency expenditures growth amount for the 
programs identified in subdivision 2 shall be made on or before 
May 3, 1998.  For the period of June 1, 1998, through July 31, 
1998, payment of the base amount shall be made on or before July 
10, 1998, and payment of the growth amount over the base amount 
shall be made on or before the third of each month July 10, 
1998.  Payments for the period August 1998 through December 1998 
shall be made on or before the third of each month thereafter 
through December 31, 1998. 
    (g) Monthly payments for the county share of county agency 
expenditures from January 1999 through May 1999 shall be made on 
or before the third of each month through May 1999.  Payment for 
1/24 of the base amount and the June 1999 county share of county 
agency expenditures growth amount for the programs identified in 
subdivision 2 shall be made on or before June 3, 1999.  For the 
period of June 1, 1999, through July 31, 1999, payment shall be 
made on or before July 10, 1999.  Payments for the period August 
July 1999 through December 1999 shall be made on or before the 
third of each month thereafter through December 31, 1999. 
    (h) Effective January 1, 2000, monthly payments for the 
county share of county agency expenditures shall be made 
subsequent to the first of each month. 
    Payments under this subdivision are subject to the 
provisions of section 256.017.  
    Sec. 7.  Minnesota Statutes 1990, section 256E.06, is 
amended by adding a subdivision to read: 
    Subd. 12.  [APPROPRIATION.] $51,566,000 is appropriated 
from the local government trust fund in fiscal year 1993 and 
$53,113,000 annually in fiscal years 1994 and thereafter to the 
commissioner of human services for payment of aid under this 
section.  Notwithstanding subdivisions 1 and 2, the increased 
appropriation available in fiscal year 1994 and thereafter shall 
be used to increase each county's aid proportionately over the 
aid received in calendar year 1992.  For calendar year 1993 
only, each county's aid will be adjusted appropriately to 
reflect the increase that is dictated to occur in the second 
half of the calendar year. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
273.1398, subdivision 5, is amended to read: 
    Subd. 5.  [ADDITIONAL HOMESTEAD AND AGRICULTURAL TRANSITION 
CREDIT GUARANTEE.] Beginning with taxes payable in 1990, each 
unique taxing jurisdiction may receive additional homestead and 
agricultural transition credit guarantee payments.  
    Each year, the commissioner shall determine the total 
education aids paid under chapters 124 and 124A, homestead and 
agricultural credit aid and disparity reduction aid paid under 
this section, local government aid to cities, counties, and 
towns paid under chapter 477A, and human services aids, 
including, for aids paid in 1991 and thereafter, the amount paid 
under subdivision 5b, paid to counties for each taxing 
jurisdiction.  The commissioner shall apportion each 
governmental unit's aids to each school district portion of each 
city and town based upon the proportion that each school 
district portion of each city and town's tax capacity bears to 
the total tax capacity of the local governmental unit.  For 
purposes of this subdivision, "governmental unit" includes 
counties, cities, towns, and school districts, and excludes 
special taxing districts. 
    If the amount determined is less than the amount of 
homestead credit and agricultural credit received by all 
properties for taxes payable in 1989 in the school district 
portion of each city or town, the difference will be additional 
homestead and agricultural transition credit guarantee payments 
for that school district portion of the city or town in the 
following taxes payable year.  The additional credit amount 
shall proportionately reduce the local tax rates of all 
governmental units levying taxes within that school district 
portion of the city or town in the following year.  The 
commissioner shall certify the amounts of additional credits 
determined under this subdivision to the county auditor at the 
time provided in subdivision 6.  For aid payable in 1992 and 
subsequent years, the aid payable under this subdivision shall 
be reduced by any reductions required in the current year and 
permanent reductions required in previous years under section 
477A.0132. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
273.1398, subdivision 7, is amended to read: 
    Subd. 7.  [APPROPRIATION.] (a) An amount sufficient to pay 
the aids and credits provided under this section for school 
districts, intermediate school districts, or any group of school 
districts levying as a single taxing entity, except aid provided 
under subdivisions 4 and 5 for fiscal year 1993 only, is 
annually appropriated from the general fund to the commissioner 
of revenue education.  An amount sufficient to pay the aids and 
credits provided under this section for counties, cities, towns, 
and special taxing districts, except as provided under paragraph 
(b), is annually appropriated from the local government trust 
fund to the commissioner of revenue.  A jurisdiction's aid 
amount may be increased or decreased based on any prior year 
adjustments for homestead credit or other property tax credit or 
aid programs. 
    (b) An amount sufficient to pay the aid provided under 
subdivision 5a is appropriated four percent from the local 
government trust fund and 96 percent from the general fund in 
fiscal year 1993 and entirely from the general fund in fiscal 
year 1994 and thereafter. 
    Sec. 10.  Minnesota Statutes 1990, section 274.20, 
subdivision 4, is amended to read: 
    Subd. 4.  [APPROPRIATION.] There is annually appropriated 
from the general fund to the commissioner of revenue education a 
sum sufficient to pay the aids provided under this section for 
school districts, intermediate school districts, or any group of 
school districts levying as a single taxing entity.  There is 
annually appropriated from the local government trust fund to 
the commissioner of revenue a sum sufficient to pay the aids 
provided under this section to counties, cities, towns, and 
special taxing districts. 
    Sec. 11.  Minnesota Statutes 1990, section 290A.23, is 
amended to read: 
    290A.23 [APPROPRIATION.] 
    Subdivision 1.  [RENTERS CREDIT AND TARGETING.] There is 
appropriated from the general fund in the state treasury to the 
commissioner of revenue the amount necessary to make the 
payments required by this chapter under section 290A.04, 
subdivisions 2a and 2h. 
    Subd. 2.  [HOMEOWNERS PROPERTY TAX REFUND.] There is 
appropriated from the local government trust fund to the 
commissioner of revenue the amount necessary to make the 
payments required under section 290A.04, subdivision 2. 
    Sec. 12.  Minnesota Statutes 1990, section 299C.18, is 
amended to read: 
    299C.18 [REPORTS.] 
    Biennially, on or before November 15, in each even-numbered 
year the superintendent shall submit to the governor and the 
legislature a detailed report of the operations of the bureau, 
of information about crime and the handling of crimes and 
criminals by state and local officials collected by the bureau, 
and the superintendent's interpretations of the information, 
with comments and recommendations.  The data contained in the 
report on Part I offenses cleared by arrest, as defined by the 
United States Department of Justice, shall be collected and 
tabulated geographically at least on a county-by-county basis.  
In such reports the superintendent shall, from time to time, 
include recommendations to the legislature for dealing with 
crime and criminals and information as to conditions and methods 
in other states in reference thereto, and shall furnish a copy 
of such report to each member of the legislature.  
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
477A.012, subdivision 6, is amended to read: 
    Subd. 6.  [AID OFFSET FOR 1992 COURT AND PUBLIC DEFENDER 
COSTS.] (a) There shall be deducted from the payment to a county 
under this section an amount equal to the cost of jury fees and, 
in the case of a county located in the third or sixth judicial 
district, of public defense services in juvenile and misdemeanor 
cases, to the extent those costs are assumed by the state for 
the fiscal year beginning on July 1, 1992.  The amount of the 
deduction is computed as provided in this subdivision. 
    (b) By June 30, 1991, the supreme court shall determine and 
certify to the department of revenue for each county, except 
counties located in the eighth judicial district, the cost for 
each county of jury fees during the fiscal year beginning on 
July 1, 1992. 
    (c) By June 30, 1991, the board of public defense shall 
determine and certify to the department of revenue the pro rata 
share for each county in the third or sixth judicial district of 
the cost of the state-financed public defense services in 
juvenile and misdemeanor cases in the third or sixth judicial 
district during the fiscal year beginning on July 1, 1992. 
    (d) One-half of the amount computed under paragraphs (b) 
and (c) for each county shall be deducted from each local 
government aid payment to the county under section 477A.015 in 
1992 and each subsequent year.  If the amount computed under 
paragraph (b) exceeds the amount payable to a county under 
subdivision 1, the excess shall be deducted from the aid payable 
to the county under section 273.1398, subdivision 2, and then, 
if necessary, from the disparity reduction aid under section 
273.1398, subdivision 3.  No payments shall be made from the 
local government trust fund to the general fund for county aid 
reductions under subdivisions 3, 4, and 6.  
    Sec. 14.  [477A.0121] [COUNTY CRIMINAL JUSTICE AID.] 
    Subdivision 1.  [PURPOSE.] County criminal justice aid is 
intended to reduce the reliance of county criminal justice and 
corrections programs and associated costs on local property 
taxes. 
    County criminal justice aids must be used to pay expenses 
associated with criminal justice activities including law 
enforcement, criminal adjudication, and corrections. 
    Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
the following definitions apply: 
    (1) "population" means the population according to the most 
recent federal census, or according to the state demographer's 
most recent estimate if it has been issued subsequent to the 
most recent federal census; and 
    (2) "Part I crimes" means the total number of Part I crimes 
reported for each county by the department of public safety for 
the most recent year available.  By July 1 of each year the 
commissioner of public safety shall certify to the commissioner 
of revenue the number of Part I crimes reported for each county. 
    Subd. 3.  [FORMULA.] Each calendar year, the commissioner 
of revenue shall distribute county criminal justice aid to each 
county in an amount determined according to the following 
formula: 
    (1) one-half shall be distributed to each county in the 
same proportion that the county's population is to the 
population of all counties in the state; and 
    (2) one-half shall be distributed to each county in the 
same proportion that the county's Part I crimes are to the total 
Part I crimes for all counties in the state. 
    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 county 
criminal justice aid in the following year.  
    Subd. 5.  [PAYMENT DATES.] The aid amounts for each 
calendar year shall be paid as provided in section 477A.015. 
    Subd. 6.  [REPORT.] By March 15 of each year following the 
year in which criminal justice aids are received, each county 
must file a report with the commissioner of revenue describing 
how criminal justice aids were spent, and demonstrating that 
they were used for criminal justice purposes. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
477A.013, subdivision 1, is amended to read: 
    Subdivision 1.  [TOWNS.] In calendar year 1990, each town 
that had levied for taxes payable in the prior year a local tax 
rate of at least .008 shall receive a distribution equal to 106 
percent of the amount received in 1989 under this subdivision.  
In calendar year years 1991 and subsequent years 1992, each town 
that had levied for taxes payable in the prior year a local tax 
rate of at least .008 shall receive a distribution equal to the 
amount it received in the previous year under this subdivision 
less any permanent reductions made under section 477A.0132.  In 
1993 and thereafter, each town that had levied for taxes payable 
in the prior year a local tax rate of at least .008 shall 
receive a distribution equal to the amount it received in 1992 
before any nonpermanent reductions made under section 477A.0132 
plus $1 per capita based on the town's population. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
477A.013, subdivision 3, is amended to read: 
    Subd. 3.  [CITY AID DISTRIBUTION.] In 1989, a city whose 
initial aid is greater than $0 will receive the following aid 
increases in addition to an amount equal to the local government 
aid it received in 1988 under Minnesota Statutes 1987 
Supplement, section 477A.013: 
    (1) for a city whose expenditure/unlimited aid ratio is at 
least 1.5, two percent of city revenue; 
    (2) for a city whose expenditure/unlimited aid ratio is at 
least 1.4 but less than 1.5, 2.5 percent of city revenue; 
    (3) for a city whose expenditure/unlimited aid ratio is at 
least 1.3 but less than 1.4, three percent of city revenue; 
    (4) for a city whose expenditure/unlimited aid ratio is at 
least 1.2 but less than 1.3, four percent of city revenue; 
    (5) for a city whose expenditure/unlimited aid ratio is at 
least 1.1 but less than 1.2, five percent of city revenue; 
    (6) for a city whose expenditure/unlimited aid ratio is at 
least 1.05 but less than 1.1, six percent of city revenue; 
    (7) for a city whose expenditure/unlimited aid ratio is at 
least 1.0 but less than 1.05, seven percent of city revenue; 
    (8) for a city whose expenditure/unlimited aid ratio is at 
least .95 but less than 1.0, 7.5 percent of city revenue; 
    (9) for a city whose expenditure/unlimited aid ratio is at 
least .75 but less than .95, 8.5 percent of city revenue; and 
    (10) for a city whose expenditure/unlimited aid ratio is 
less than .75, nine percent of city revenue.  
    In 1990, a city whose initial aid is greater than $0 will 
receive an amount equal to the aid it received under this 
section in the year prior to that for which aids are being 
calculated plus an aid increase equal to 50 percent of the rates 
listed in clauses (1) to (10) multiplied by city revenue. 
    In 1991 and subsequent years 1992, a city will receive an 
amount equal to the local government aid it received under this 
section in the previous year, less any permanent reductions made 
under section 477A.0132. 
    In 1993 and thereafter, a city will receive an amount equal 
to 103 percent of the local government aid it received under 
this section in 1992 before any nonpermanent reductions made 
under section 477A.0132.  
    For aids payable in 1990, a city's aid increase under this 
subdivision is limited to the lesser of (1) 20 percent of its 
levy for taxes payable in the year prior to that for which aids 
are being calculated, or (2) its initial aid amount, or (3) 15 
percent of the total local government aid amount received under 
this section in the previous year, provided that no city will 
receive an increase that is less than two percent of its 1989 
local government aid for aids payable in 1990. 
    A city whose initial aid is $0 will receive in 1990 an 
amount equal to 102 percent of the local government aid it 
received in 1989 under Minnesota Statutes 1988, section 477A.013.
For purposes of this subdivision, the term "local government 
aid" does not include equalization aid amounts under subdivision 
5. 
    Sec. 17.  Minnesota Statutes 1990, section 477A.013, 
subdivision 5, is amended to read: 
    Subd. 5.  [EQUALIZATION AID.] A city is eligible for 
equalization aid equal to the aid amount received under this 
subdivision in 1990 after the adjustments, if any, under 
subdivisions 6 and 7, plus an equalization aid increase equal to 
the product of (i) a city's average levy for the three 
immediately preceding years less the disparity reduction aids 
allocated to the city pursuant to section 273.1398, subdivision 
3, for the year prior to the aid distribution, and less the 
equalization aid it received under this section in the year 
prior to that for which the aid is being calculated, (ii) .30, 
and (iii) one minus the ratio of the net tax capacity per capita 
to 900.  The equalization aid increase under this section is 
limited to 12 percent of the total aid the city received under 
this section in the prior year.  The aid under this section 
cannot be less than zero.  For the purposes of this subdivision, 
"levy" includes a city's levy on fiscal disparities distribution 
under section 473F.08, subdivision 3, paragraph (a). 
    If the amount allocated under section 477A.03, subdivision 
1, appropriated is insufficient to pay the aid amounts 
calculated under this subdivision, the commissioner of revenue 
shall first proportionately reduce the equalization aid increase 
for each city so that the sum of the equalization aid amounts 
paid under this subdivision equals the amount allocated in 
section 477A.03, subdivision 1 appropriated.  If the 
equalization aid increase is reduced to zero and the 
amount allocated under section 477A.03, subdivision 
1, appropriated is still insufficient to pay the aid amounts 
under this subdivision, the remaining amount of equalization aid 
for each city will be reduced proportionately so that the sum of 
the aid paid under this subdivision equals the amount allocated 
in section 477A.03, subdivision 1 appropriated. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
477A.0132, is amended to read: 
    477A.0132 [AID REDUCTIONS TO LOCAL GOVERNMENTS.] 
    Subdivision 1.  [AFFECTED LOCAL GOVERNMENTS.] The following 
permanent and nonpermanent reductions shall be made in aids paid 
to the following local units of government: 
    (a) For aids payable in 1990, there shall be a permanent 
reduction in aids to counties and cities of $28,000,000. 
    (b) For aids payable on July 20, 1991, there shall be a 
nonpermanent reduction in aid payments to counties, cities, 
towns, and special taxing districts of $50,000,000. 
    (c) For aids payable on December 15, 1991, there shall be a 
nonpermanent reduction in aids to counties, cities, towns, and 
special taxing districts of $35,000,000.  For purposes of this 
reduction, hospital districts are not considered special taxing 
districts. 
    (d) For aids payable in 1992, there shall be a permanent 
reduction in aids to counties, cities, and special taxing 
districts of $86,000,000.  For purposes of this reduction, 
hospital districts are not considered special taxing districts. 
    (e) For (b) Aid reductions required under section 477A.014, 
subdivision 1a 16A.711, subdivision 5, there shall be a 
nonpermanent reduction reductions in aids to counties, cities, 
towns, and special taxing districts equal to the difference 
between the aid amounts certified to be paid and the 
amount appropriated under Laws 1991, chapter 291, article 2, 
section 3, of the appropriation to pay the aids.  
    Subd. 2.  [CALCULATION OF AID REDUCTION.] The aid reduction 
to each local government as provided under subdivision 1 will be 
equal to the product of the reduction percentage and its 
reduction base.  The reduction base is defined as the following: 
    (a) For subdivision 1, clause (a), the reduction base is 
equal to the adjusted revenue base for 1991 1992. 
    (b) For subdivision 1, clause (b), the reduction base is 
equal to the revenue base for 1992. 
    (c) For subdivision 1, clause (c) (b), the reduction base 
is equal to the adjusted revenue base for 1992. 
    (d) For subdivision 1, clause (d), the reduction base is 
equal to the adjusted revenue base for 1992. 
    (e) For subdivision 1, clause (e), the reduction base is 
equal to the adjusted revenue base for the year in which the aid 
payment is to be made.  
    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 homestead and agricultural transition 
credit guarantee 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 20 
and December 15 aid payments unless specified otherwise in 
subdivision 1.  
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
477A.03, subdivision 1, is amended to read: 
    Subdivision 1.  [ANNUAL APPROPRIATION.] A sum sufficient to 
discharge the duties imposed by sections 477A.011 to 477A.014 is 
annually appropriated from the local government trust fund to 
the commissioner of revenue.  For aids payable in 1991 1993 and 
thereafter, the total amount of equalization aid paid under 
section 477A.013, subdivision 5, is limited to 
$19,485,684 $20,011,000.  
    In 1993 and subsequent years, $8,400,000 per year is 
appropriated from the local government trust fund to make 
payments under section 477A.0121. 
    Sec. 20.  [CITY OF ALDEN; LOCAL GOVERNMENT AID.] 
    For aid payments in 1993 and thereafter, local government 
aid to the city of Alden, Freeborn county, as determined under 
Minnesota Statutes, sections 477A.013 and 477A.0132, is 
increased by $838.  These amounts reimburse the city for state 
aid decreases attributable to an error in the city's 1990 levy, 
payable in 1991.  
    If local government aid provisions are enacted in 1992 or 
thereafter which do not use the city's 1990 levy as a base year 
to determine local government aids, this section does not apply 
to those aids. 
    The commissioner of revenue shall pay the local government 
aid under this section from the amounts appropriated to the 
commissioner by law from the local government trust fund for 
payment of local government aid.  For purposes of any 
proportional increases or decreases in local government aid 
under Minnesota Statutes, section 16A.711, due to the amount of 
funds in the local government trust fund, payments under this 
section must be included in local government aid payable to the 
city of Alden. 
    Sec. 21.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
    Section 20 is effective the day following compliance with 
Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of Alden. 
    Sec. 22.  [AID ADJUSTMENT.] 
    The amount by which any county's homestead and agricultural 
credit aid offset exceeded its actual public defender levy for 
1991 shall be permanently added back to the county's homestead 
and agricultural credit aid base for aids paid in 1993.  
Counties may apply for an aid adjustment on a form prescribed by 
the commissioner of revenue by July 1, 1992.  The aggregate 
amount of all adjustments shall not exceed $500,000.  If the sum 
of all counties aid adjustments exceeds this amount, the 
commissioner shall proportionately reduce all adjustment amounts 
so that the total is $500,000. 
    Sec. 23.  [APPROPRIATION CANCELLATION.] 
    Any fiscal year 1993 appropriation from the general fund 
enacted prior to enactment of this act to pay community social 
services aids under Minnesota Statutes, section 256E.06, is 
canceled.  
    Sec. 24.  [APPROPRIATION.] 
    (a) The sum of $978,000 is appropriated from the general 
fund to the commissioner of human services in fiscal year 1993 
for the state takeover of the growth of the income maintenance 
aids under section 5. 
    (b) The sum of $2,483,375 is appropriated from the general 
fund to the secretary of state in fiscal year 1992 for the 
purposes authorized in section 4.  If any amount certified under 
section 4 remain unpaid on July 1, 1992, a sum sufficient to pay 
the remaining aids is carried forward to fiscal year 1993 
provided the total appropriation does not exceed $2,483,375. 
    Sec. 25.  [INSTRUCTION TO REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall change references to the homestead and 
agricultural credit guarantee to transition credit wherever the 
terms appear in Minnesota Statutes. 
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1991 Supplement, section 16A.711, 
subdivision 3; and Laws 1991, chapter 291, article 2, section 3, 
is repealed. 
    Sec. 27.  [EFFECTIVE DATE.] 
    Sections 4 and 24, paragraph (b), are effective the day 
following final enactment.  Sections 1, 11, and 13 are effective 
July 1, 1993.  Section 10 is effective July 1, 1994.  Section 14 
is effective for aids payable in 1993 and thereafter. 

                                ARTICLE 2

                             PROPERTY TAXES 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
47.209, is amended to read: 
    47.209 [MANUFACTURED HOME FINANCING; PROPERTY TAX ESCROW 
COLLECTION REQUIREMENT.] 
    Subdivision 1.  [APPLICABILITY.] This section applies to 
any agreement entered into after December 31, 1991 1992, for the 
financing or refinancing of a purchase of a manufactured home 
shall require that the lender maintain an escrow account for 
deposit of payments for property taxes payable on the 
manufactured home, and that the borrower make the required 
payments.  As used in this section and section 277.17, "lender" 
includes a state bank and trust company, national banking 
association, state or federally chartered savings and loan 
association, mortgage bank, mutual savings bank, insurance 
company, credit union, or a dealer as defined in section 
327B.01, subdivision 7, who that enters into an agreement for 
financing or refinancing a purchase of a manufactured home.  
    Subd. 2.  [CONDITION OF FINANCING AGREEMENT.] Each 
agreement must contain a statement that it is a condition of the 
agreement that the borrower must agree to pay all taxes on the 
manufactured home when due. 
    Subd. 3.  [COLLECTION OF DELINQUENT TAXES.] Within 30 days 
of receipt of a notice of delinquency from a county under 
section 277.17, the lender must notify the mortgagor that the 
tax must be paid in full no later than 60 days from the date of 
issuance of the notice.  The notice must inform the mortgagor 
that if the tax is not paid by that date, the lender may pay the 
delinquent tax, together with any penalty and interest then due, 
in full to the county.  The notice may inform the mortgagor of 
the lender's option to begin foreclosure proceedings.  The 
county may only request payment and collection of taxes that 
have been delinquent for no longer than one year under this 
section.  The county must notify the lender if the owner of the 
manufactured home pays the delinquent taxes at any time during 
the 60 days after the notice has been issued. 
    Sec. 2.  Minnesota Statutes 1990, section 103B.241, is 
amended to read: 
    103B.241 [LEVY LEVIES.] 
    Subdivision 1.  [WATERSHED PLANS.] A levy to pay the 
increased costs to a local government unit or watershed 
management organization of implementing sections 103B.231 and 
103B.235 or to pay costs of improvements and maintenance of 
improvements identified in an approved and adopted plan shall be 
in addition to any other taxes authorized by law.  
Notwithstanding any provision to the contrary in chapter 103D, a 
watershed district may levy a tax sufficient to pay the 
increased costs to the district of implementing sections 
103B.231 and 103B.235.  The proceeds of any tax levied under 
this section shall be deposited in a separate fund and expended 
only for the purposes authorized by this section.  Watershed 
management organizations and local government units may 
accumulate the proceeds of levies as an alternative to issuing 
bonds to finance improvements.  The amount authorized under this 
section and levied by a governmental subdivision is not exempt 
from sections 275.50 to 275.56. 
    Subd. 2.  [PRIORITY PROGRAMS; SOIL AND WATER CONSERVATION 
DISTRICTS.] A county may levy amounts necessary to pay the 
reasonable increased costs to soil and water conservation 
districts of administering and implementing priority programs 
identified in an approved and adopted plan. 
    Sec. 3.  Minnesota Statutes 1990, section 103B.255, is 
amended by adding a subdivision to read: 
    Subd. 13.  [PROPERTY TAX LEVIES.] A metropolitan county may 
levy amounts necessary to administer and implement an approved 
and adopted groundwater plan.  A county may levy amounts 
necessary to pay the reasonable increased costs to soil and 
water conservation districts and watershed management 
organizations of administering and implementing priority 
programs identified in the county's groundwater plan. 
    Sec. 4.  Minnesota Statutes 1990, section 103B.335, is 
amended to read: 
    103B.335 [TAX; EXEMPTION FROM PER CAPITA LEVY LIMIT.] 
    Subdivision 1.  [LOCAL WATER PLANNING AND MANAGEMENT.] The 
governing body of any county, municipality, or township may levy 
a tax in an amount required to implement sections 103B.301 to 
103B.355.  The amount of the levy up to 0.01813 percent of 
taxable market value is exempt from the per capita levy limit 
under section 275.11.  
    Subd. 2.  [PRIORITY PROGRAMS; CONSERVATION AND WATERSHED 
DISTRICTS.] A county may levy amounts necessary to pay the 
reasonable increased costs to soil and water conservation 
districts and watershed districts of administering and 
implementing priority programs identified in an approved and 
adopted plan. 
    Sec. 5.  Minnesota Statutes 1990, section 124.2131, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ADJUSTED GROSS TAX CAPACITY.] (a) [ 
COMPUTATION.] The department of revenue shall annually conduct 
an assessment/sales ratio study of the taxable property in each 
school district in accordance with the procedures in paragraphs 
(b) and (c).  Based upon the results of this assessment/sales 
ratio study, the department of revenue shall determine an 
aggregate equalized gross tax capacity and an aggregate 
equalized net tax capacity for the various classes of taxable 
property in each school district, which tax capacity shall be 
designated as the adjusted gross tax capacity and the adjusted 
net tax capacity, respectively.  The department of revenue may 
incur the expense necessary to make the determinations.  The 
commissioner of revenue may reimburse any county or governmental 
official for requested services performed in ascertaining the 
adjusted gross tax capacity and the adjusted net tax capacity.  
On or before March 15 annually, the department of revenue shall 
file with the chair of the tax committee of the house of 
representatives and the chair of the committee on taxes and tax 
laws of the senate a report of adjusted gross tax capacities and 
adjusted net tax capacities.  On or before April 15 annually, 
the department of revenue shall file its final report on the 
adjusted gross tax capacities and adjusted net tax capacities 
established by the previous year's assessment with the 
commissioner of education and each county auditor for those 
school districts for which the auditor has the responsibility 
for determination of 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.  
    (c) [AGRICULTURAL LANDS.] For purposes of determining the 
adjusted gross tax capacity and adjusted net tax capacity of 
agricultural lands for the calculation of adjusted gross tax 
capacities and adjusted net tax capacities, the market value of 
agricultural lands shall be the price for which the property 
would sell in an arms length transaction. 
    (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. 
    Sec. 6.  Minnesota Statutes 1990, section 270B.12, is 
amended by adding a subdivision to read: 
    Subd. 8.  [COUNTY ASSESSORS.] The commissioner may disclose 
names and social security numbers of individuals who have 
applied for both homestead classification under section 273.13 
and a property tax refund as a renter under chapter 290A for the 
purpose of and to the extent necessary to administer section 
290A.25. 
    Sec. 7.  Minnesota Statutes 1990, section 271.06, 
subdivision 7, is amended to read: 
    Subd. 7.  [RULES.] (a) The rules of evidence and civil 
procedure for the district court of Minnesota shall govern the 
procedures in the tax court, where practicable.  The tax court 
may adopt rules under chapter 14.  The rules in effect on 
January 1, 1989, apply until superseded.  
    (b) Notwithstanding paragraph (a), information, including 
income and expense figures, verified net rentable areas, and 
anticipated income and expenses, for income-producing property 
which is not provided to the county assessor at least 45 days 
before any hearing under this chapter, is not admissible except 
if necessary to prevent undue hardship or when the failure to 
provide it was due to the unavailability of the evidence at that 
time. 
    (c) Notwithstanding paragraph (a) and provided that the 
information as contained in paragraph (b) is timely submitted to 
the county assessor, the county assessor shall furnish the 
petitioner at least five days before the hearing under this 
chapter with the property's appraisal, if any, which will be 
presented to the court at the hearing.  The petitioner shall 
furnish to the county assessor at least five days before the 
hearing under this chapter with the property's appraisal, if 
any, which will be presented to the court at the hearing.  An 
appraisal of the petitioner's property done by or for the county 
or by or for the petitioner shall not be admissible as evidence 
if the provisions within this paragraph are not met. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
271.21, subdivision 6, is amended to read: 
    Subd. 6.  (a) The hearing in the small claims division 
shall be informal and without a jury.  The judge may hear any 
testimony and receive any evidence the judge deems necessary or 
desirable for a just determination of the case except as 
provided in paragraph (b).  Sales ratio studies published by the 
department of revenue may be admissible as a public record 
without foundation.  All testimony shall be given under oath.  A 
party may appear personally or may be represented or accompanied 
by an attorney.  No transcript of the proceedings shall be kept. 
    (b) Information, including income and expense figures, 
verified net rentable areas, and anticipated income and 
expenses, for income-producing property which is not provided to 
the county assessor at least 30 days before any hearing under 
this chapter, is not admissible except if necessary to prevent 
undue hardship or when the failure to provide it was due to the 
unavailability of the evidence at that time. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
272.02, subdivision 1, is amended to read: 
    Subdivision 1.  All property described in this section to 
the extent herein limited shall be exempt from taxation: 
    (1) all public burying grounds; 
    (2) all public schoolhouses; 
    (3) all public hospitals; 
    (4) all academies, colleges, and universities, and all 
seminaries of learning; 
    (5) all churches, church property, and houses of worship; 
    (6) institutions of purely public charity except parcels of 
property containing structures and the structures described in 
section 273.13, subdivision 25, paragraph (c), clauses (1), (2), 
and (3), or paragraph (d); 
    (7) all public property exclusively used for any public 
purpose; 
    (8) except for the taxable personal property enumerated 
below, all personal property and the property described in 
section 272.03, subdivision 1, paragraphs (c) and (d), shall be 
exempt.  
    The following personal property shall be taxable:  
    (a) personal property which is part of an electric 
generating, transmission, or distribution system or a pipeline 
system transporting or distributing water, gas, crude oil, or 
petroleum products or mains and pipes used in the distribution 
of steam or hot or chilled water for heating or cooling 
buildings and structures; 
    (b) railroad docks and wharves which are part of the 
operating property of a railroad company as defined in section 
270.80; 
    (c) personal property defined in section 272.03, 
subdivision 2, clause (3); 
    (d) leasehold or other personal property interests which 
are taxed pursuant to section 272.01, subdivision 2; 273.124, 
subdivision 7; or 273.19, subdivision 1; or any other law 
providing the property is taxable as if the lessee or user were 
the fee owner; 
    (e) manufactured homes and sectional structures, including 
storage sheds, decks, and similar removable improvements 
constructed on the site of a manufactured home, sectional 
structure, park trailer or travel trailer as provided in section 
274.19, subdivision 8, paragraph (f); and 
    (f) flight property as defined in section 270.071.  
    (9) Personal property used primarily for the abatement and 
control of air, water, or land pollution to the extent that it 
is so used, and real property which is used primarily for 
abatement and control of air, water, or land pollution as part 
of an agricultural operation, as a part of a centralized 
treatment and recovery facility operating under a permit issued 
by the Minnesota pollution control agency pursuant to chapters 
115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, 
and 7045.0020 to 7045.1260, as a wastewater treatment facility 
and for the treatment, recovery, and stabilization of metals, 
oils, chemicals, water, sludges, or inorganic materials from 
hazardous industrial wastes, or as part of an electric 
generation system.  For purposes of this clause, personal 
property includes ponderous machinery and equipment used in a 
business or production activity that at common law is considered 
real property. 
       Any taxpayer requesting exemption of all or a portion of 
any real property or any equipment or device, or part thereof, 
operated primarily for the control or abatement of air or water 
pollution shall file an application with the commissioner of 
revenue.  The equipment or device shall meet standards, rules, 
or criteria prescribed by the Minnesota pollution control 
agency, and must be installed or operated in accordance with a 
permit or order issued by that agency.  The Minnesota pollution 
control agency shall upon request of the commissioner furnish 
information or advice to the commissioner.  On determining that 
property qualifies for exemption, the commissioner shall issue 
an order exempting the property from taxation.  The equipment or 
device shall continue to be exempt from taxation as long as the 
permit issued by the Minnesota pollution control agency remains 
in effect. 
     (10) Wetlands.  For purposes of this subdivision, 
"wetlands" means:  (i) land described in section 103G.005, 
subdivision 18; (ii) land which is mostly under water, produces 
little if any income, and has no use except for wildlife or 
water conservation purposes, provided it is preserved in its 
natural condition and drainage of it would be legal, feasible, 
and economically practical for the production of livestock, 
dairy animals, poultry, fruit, vegetables, forage and grains, 
except wild rice; or (iii) land in a wetland preservation area 
under sections 103F.612 to 103F.616.  "Wetlands" under items (i) 
and (ii) include adjacent land which is not suitable for 
agricultural purposes due to the presence of the wetlands, but 
do not include woody swamps containing shrubs or trees, wet 
meadows, meandered water, streams, rivers, and floodplains or 
river bottoms.  Exemption of wetlands from taxation pursuant to 
this section shall not grant the public any additional or 
greater right of access to the wetlands or diminish any right of 
ownership to the wetlands. 
         (11) Native prairie.  The commissioner of the department of 
natural resources shall determine lands in the state which are 
native prairie and shall notify the county assessor of each 
county in which the lands are located.  Pasture land used for 
livestock grazing purposes shall not be considered native 
prairie for the purposes of this clause.  Upon receipt of an 
application for the exemption provided in this clause for lands 
for which the assessor has no determination from the 
commissioner of natural resources, the assessor shall refer the 
application to the commissioner of natural resources who shall 
determine within 30 days whether the land is native prairie and 
notify the county assessor of the decision.  Exemption of native 
prairie pursuant to this clause shall not grant the public any 
additional or greater right of access to the native prairie or 
diminish any right of ownership to it. 
        (12) Property used in a continuous program to provide 
emergency shelter for victims of domestic abuse, provided the 
organization that owns and sponsors the shelter is exempt from 
federal income taxation pursuant to section 501(c)(3) of the 
Internal Revenue Code of 1986, as amended through December 31, 
1986, notwithstanding the fact that the sponsoring organization 
receives funding under section 8 of the United States Housing 
Act of 1937, as amended. 
      (13) If approved by the governing body of the municipality 
in which the property is located, property not exceeding one 
acre which is owned and operated by any senior citizen group or 
association of groups that in general limits membership to 
persons age 55 or older and is organized and operated 
exclusively for pleasure, recreation, and other nonprofit 
purposes, no part of the net earnings of which inures to the 
benefit of any private shareholders; provided the property is 
used primarily as a clubhouse, meeting facility, or recreational 
facility by the group or association and the property is not 
used for residential purposes on either a temporary or permanent 
basis. 
      (14) To the extent provided by section 295.44, real and 
personal property used or to be used primarily for the 
production of hydroelectric or hydromechanical power on a site 
owned by the state or a local governmental unit which is 
developed and operated pursuant to the provisions of section 
103G.535. 
      (15) If approved by the governing body of the municipality 
in which the property is located, and if construction is 
commenced after June 30, 1983:  
      (a) a "direct satellite broadcasting facility" operated by 
a corporation licensed by the federal communications commission 
to provide direct satellite broadcasting services using direct 
broadcast satellites operating in the 12-ghz. band; and 
      (b) a "fixed satellite regional or national program service 
facility" operated by a corporation licensed by the federal 
communications commission to provide fixed satellite-transmitted 
regularly scheduled broadcasting services using satellites 
operating in the 6-ghz. band. 
An exemption provided by clause (15) shall apply for a period 
not to exceed five years.  When the facility no longer qualifies 
for exemption, it shall be placed on the assessment rolls as 
provided in subdivision 4.  Before approving a tax exemption 
pursuant to this paragraph, the governing body of the 
municipality shall provide an opportunity to the members of the 
county board of commissioners of the county in which the 
facility is proposed to be located and the members of the school 
board of the school district in which the facility is proposed 
to be located to meet with the governing body.  The governing 
body shall present to the members of those boards its estimate 
of the fiscal impact of the proposed property tax exemption.  
The tax exemption shall not be approved by the governing body 
until the county board of commissioners has presented its 
written comment on the proposal to the governing body or 30 days 
has passed from the date of the transmittal by the governing 
body to the board of the information on the fiscal impact, 
whichever occurs first. 
      (16) Real and personal property owned and operated by a 
private, nonprofit corporation exempt from federal income 
taxation pursuant to United States Code, title 26, section 
501(c)(3), primarily used in the generation and distribution of 
hot water for heating buildings and structures.  
         (17) Notwithstanding section 273.19, state lands that are 
leased from the department of natural resources under section 
92.46. 
         (18) Electric power distribution lines and their 
attachments and appurtenances, that are used primarily for 
supplying electricity to farmers at retail.  
        (19) Transitional housing facilities.  "Transitional 
housing facility" means a facility that meets the following 
requirements.  (i) It provides temporary housing to parents and 
children who are receiving AFDC or parents of children who are 
temporarily in foster care 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 six 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 sponsored by an 
organization that has received a grant under either section 
256.7365 for the biennium ending June 30, 1989, or section 
462A.07, subdivision 15, for the biennium ending June 30, 1991, 
for the purposes of providing the services in items (i) to 
(iv).  (vi) It is sponsored owned and operated or under lease 
from a unit of government or governmental agency under a 
property disposition program and operated by an organization 
that is 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 article 8, section 
1, 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. 
    Sec. 10.  Minnesota Statutes 1990, section 272.115, is 
amended to read: 
    272.115 [CERTIFICATE OF VALUE; FILING.] 
    Subdivision 1.  Except as provided in subdivision 1a, 
whenever any real estate is sold on or after January 1, 1978, 
for a consideration in excess of $1,000, whether by warranty 
deed, quitclaim deed, contract for deed or any other method of 
sale, the grantor, grantee or the legal agent of either shall 
file a certificate of value with the county auditor in the 
county in which the property is located within 30 days of the 
sale.  Value shall, in the case of any deed not a gift, be the 
amount of the full actual consideration thereof, paid or to be 
paid, including the amount of any lien or liens assumed.  The 
certificate of value shall include the classification to which 
the property belongs for the purpose of determining the fair 
market value of the property.  The certificate shall include 
financing terms and conditions of the sale which are necessary 
to determine the actual, present value of the sale price for 
purposes of the sales ratio study.  The commissioner of revenue 
shall promulgate administrative rules specifying the financing 
terms and conditions which must be included on the certificate. 
    Subd. 1a.  Whenever any real estate, a portion or all of 
which is classified as homestead under chapter 273 is sold or 
transferred on or after January 1, 1993, whether by warranty 
deed, quitclaim deed, contract for deed, or any other method of 
sale or transfer, the grantor, grantee, or the legal agent of 
either shall file a certificate of value with the county auditor 
in the county in which the property is located within 30 days of 
the sale or transfer. 
    Subd. 2.  The certificate of value shall require such facts 
and information as may be determined by the commissioner to be 
reasonably necessary in the administration of the state 
education aid formulas.  The form of the certificate of value 
shall be prescribed by the department of revenue which shall 
provide an adequate supply of forms to each county auditor. 
    Subd. 3.  The county auditor shall transmit two true copies 
of the certificate of value to the assessor who shall insert the 
most recent market value and when available, the year of 
original construction of each parcel of property on both copies 
and shall transmit one copy to the department of revenue.  Upon 
the request of a city council located within the county, a copy 
of each certificate of value for property located in that city 
shall be made available to the governing body of the city.  The 
assessor shall remove the homestead classification for the 
following assessment year from a property which is sold or 
transferred, unless the grantee or the person to whom the 
property is transferred completes a homestead application under 
section 273.124, subdivision 13, and qualifies for homestead 
status. 
    Subd. 4.  No real estate sold or transferred on or after 
January 1, 1978, for which a certificate of value is required 
pursuant to 1993, under subdivision 1 1a shall be classified as 
a homestead, unless a certificate of value has been filed with 
the county auditor in accordance with this section. 
    This subdivision shall apply to any real estate taxes that 
are payable the year or years following the sale or transfer of 
the property. 
    Sec. 11.  Minnesota Statutes 1990, section 273.11, is 
amended by adding a subdivision to read: 
    Subd. 12.  [NEIGHBORHOOD LAND TRUSTS.] (a) A neighborhood 
land trust, as defined under chapter 462A, is (i) a 
community-based nonprofit corporation organized under chapter 
317A, which qualifies for tax exempt status under 501(c)(3), or 
(ii) a "city" as defined in section 462C.02, subdivision 6, 
which has received funding from the Minnesota housing finance 
agency for purposes of the neighborhood land trust program.  The 
Minnesota housing finance agency shall set the criteria for 
neighborhood land trusts. 
    (b) All occupants of a neighborhood land trust building 
must have a family income of less than 80 percent of the greater 
of (1) the state median income, or (2) the area or county median 
income, as most recently determined by the department of housing 
and urban development.  Before the neighborhood land trust can 
rent or sell a unit to an applicant, the neighborhood land trust 
shall verify to the satisfaction of the administering agency or 
the city that the family incomes of each person or family 
applying for a unit in the neighborhood land trust building is 
within the income criteria provided in this paragraph.  The 
administering agency or the city shall verify to the 
satisfaction of the county assessor that the occupant meets the 
income criteria under this paragraph.  The property tax benefits 
under paragraph (c) shall be granted only to property owned or 
rented by persons or families within the qualifying income 
limits.  The family income criteria and verification is only 
necessary at the time of initial occupancy in the property. 
    (c) A unit which is owned by the occupant and used as a 
homestead by the occupant qualifies for homestead treatment as 
class 1a under section 273.13, subdivision 22.  A unit which is 
rented by the occupant and used as a homestead by the occupant 
shall be class 4a or 4b property, under section 273.13, 
subdivision 25, whichever is applicable.  Any remaining portion 
of the property not used for residential purposes shall be 
classified by the assessor in the appropriate class based upon 
the use of that portion of the property owned by the 
neighborhood land trust.  The land upon which the building is 
located shall be assessed at the same class rate as the units 
within the building, provided that if the building contains some 
units assessed as class 1a and some units assessed as class 4a 
or 4b, the market value of the land will be assessed in the same 
proportions as the value of the building. 
    Sec. 12.  Minnesota Statutes 1990, section 273.11, is 
amended by adding a subdivision to read: 
    Subd. 13.  [VALUATION OF INCOME-PRODUCING 
PROPERTY.] Beginning with the 1995 assessment, only accredited 
assessors or senior accredited assessors 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. 
    Sec. 13.  Minnesota Statutes 1991 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, by affidavit or otherwise 
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. 
    (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) In the case of property owned by a married couple in 
joint tenancy or tenancy in common, the assessor must not deny 
homestead treatment in whole or in part if only one of the 
spouses is occupying the property and the other spouse is absent 
due to divorce or separation, or is a resident of a nursing home 
or a boarding care facility.  
    (d) If an individual is purchasing property with the intent 
of claiming it as a homestead, and is required by the terms of 
the financing agreement to have a relative shown on the deed as 
a coowner, the assessor shall allow a full homestead 
classification.  Residential real estate that is occupied and 
used for purposes of a homestead by a relative of the owner is a 
homestead but only to the extent of the homestead treatment that 
would be provided if the related owner occupied the property.  
For purposes of this paragraph, "relative" means a parent, 
stepparent, child, stepchild, spouse, grandparent, grandchild, 
brother, sister, uncle, or aunt.  This relationship may be by 
blood or marriage.  Property that was classified as seasonal 
recreational residential property at the time when treatment 
under this paragraph would first apply shall continue to be 
classified as seasonal recreational residential property for the 
first two 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. 
    (e) In the case of property owned and formerly occupied by 
two or more persons in joint tenancy or tenancy in common, when 
those persons are related to each other as parents and children 
or as stepparents and stepchildren, and when one or more of the 
owners ceases to occupy the property, the assessor shall 
continue to allow a full homestead classification as long as at 
least one of the owners continues to occupy the property for 
purposes of a homestead.  This paragraph applies only to single 
family residential property. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
273.124, subdivision 6, is amended to read: 
    Subd. 6.  [LEASEHOLD COOPERATIVES.] When one or more 
dwellings or one or more buildings which each contain several 
dwelling units is owned by a nonprofit corporation subject to 
the provisions of chapter 317A and qualifying under section 
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as 
amended through December 31, 1990, or a limited partnership 
which corporation or partnership operates the property in 
conjunction with a cooperative association, and has received 
public financing, homestead treatment may be claimed by the 
cooperative association on behalf of the members of the 
cooperative for each dwelling unit occupied by a member of the 
cooperative.  The cooperative association must provide the 
assessor with the social security numbers of those members.  To 
qualify for the treatment provided by this subdivision, the 
following conditions must be met:  
    (a) the cooperative association must be organized under 
chapter 308A and all voting members of the board of directors 
must be resident tenants of the cooperative and must be elected 
by the resident tenants of the cooperative; 
    (b) the cooperative association must have a lease for 
occupancy of the property for a term of at least 20 years, which 
permits the cooperative association, while not in default on the 
lease, to participate materially in the management of the 
property, including material participation in establishing 
budgets, setting rent levels, and hiring and supervising a 
management agent; 
    (c) to the extent permitted under state or federal law, the 
cooperative association must have a right under a written 
agreement with the owner to purchase the property if the owner 
proposes to sell it; if the cooperative association does not 
purchase the property it is offered for sale, the owner may not 
subsequently sell the property to another purchaser at a price 
lower than the price at which it was offered for sale to the 
cooperative association unless the cooperative association 
approves the sale; 
    (d) the cooperative must meet one of the following criteria 
with respect to the income of its members:  (1) a minimum of 75 
percent of members must have incomes at or less than 80 percent 
of area median income, (2) a minimum of 40 percent of the 
cooperative association's members must have incomes at or less 
than 60 percent of area median gross income, or (3) a minimum of 
20 percent of members must have incomes at or less than 50 
percent of area median income as determined by the United States 
Secretary of Housing and Urban Development under section 
142(d)(2)(B) of the Internal Revenue Code of 1986, as amended 
through December 31, 1991.  For purposes of this clause, "member 
income" means the income of a member existing at the time the 
member acquires cooperative membership, and "median income" 
means the St. Paul-Minneapolis metropolitan area median income 
as determined by the United States Department of Housing and 
Urban Development; 
    (e) if a limited partnership owns the property, it must 
include as the managing general partner a nonprofit organization 
operating under the provisions of chapter 317A and qualifying 
under section 501(c)(3) or 501(c)(4) of the Internal Revenue 
Code of 1986, as amended through December 31, 1990, and the 
limited partnership agreement must provide that the managing 
general partner have sufficient powers so that it materially 
participates in the management and control of the limited 
partnership; 
    (f) prior to becoming a member of a leasehold cooperative 
described in this subdivision, a person must have received 
notice that (1) describes leasehold cooperative property in 
plain language, including but not limited to the effects of 
classification under this subdivision on rents, property taxes 
and tax credits or refunds, and operating expenses, and (2) 
states that copies of the articles of incorporation and bylaws 
of the cooperative association, the lease between the owner and 
the cooperative association, a sample sublease between the 
cooperative association and a tenant, and, if the owner is a 
partnership, a copy of the limited partnership agreement, can be 
obtained upon written request at no charge from the owner, and 
the owner must send or deliver the materials within seven days 
after receiving any request; 
      (g) if a dwelling unit of a building was occupied on the 
60th day prior to the date on which the unit became leasehold 
cooperative property described in this subdivision, the notice 
described in paragraph (f) must have been sent by first class 
mail to the occupant of the unit at least 60 days prior to the 
date on which the unit became leasehold cooperative property.  
For purposes of the notice under this paragraph, the copies of 
the documents referred to in paragraph (f) may be in proposed 
version, provided that any subsequent material alteration of 
those documents made after the occupant has requested a copy 
shall be disclosed to any occupant who has requested a copy of 
the document.  Copies of the articles of incorporation and 
certificate of limited partnership shall be filed with the 
secretary of state after the expiration of the 60-day period 
unless the change to leasehold cooperative status does not 
proceed; and 
    (h) the county attorney of the county in which the property 
is located must certify to the assessor that the property meets 
the requirements of this subdivision.; 
    (i) the public financing received must be from at least one 
of the following sources: 
    (1) tax increment financing proceeds used for the 
acquisition or rehabilitation of the building or interest rate 
writedowns relating to the acquisition of the building; 
    (2) government issued bonds exempt from taxes under section 
103 of the Internal Revenue Code of 1986, as amended through 
December 31, 1991, the proceeds of which are used for the 
acquisition or rehabilitation of the building; 
    (3) programs under section 221(d)(3), 202, or 236, of Title 
II of the National Housing Act; 
    (4) 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; 
    (5) low-income housing credit under section 42 of the 
Internal Revenue Code of 1986, as amended through December 31, 
1991; 
    (6) public financing provided by a local government used 
for the acquisition or rehabilitation of the building, including 
grants or loans from (i) federal community development block 
grants; (ii) HOME block grants; or (iii) residential rental 
bonds issued under chapter 474A; or 
    (7) other rental housing program funds provided by the 
Minnesota housing finance agency for the acquisition or 
rehabilitation of the building; 
    (j) at the time of the initial request for homestead 
classification or of any transfer of ownership of the property, 
the governing body of the municipality in which the property is 
located must hold a public hearing and make the following 
findings: 
    (1) that the granting of the homestead treatment of the 
apartment's units will facilitate safe, clean, affordable 
housing for the cooperative members that would otherwise not be 
available absent the homestead designation; 
    (2) that the owner has presented information satisfactory 
to the governing body showing that the savings garnered from the 
homestead designation of the units will be used to reduce 
tenant's rents or provide a level of furnishing or maintenance 
not possible absent the designation; and 
    (3) that the requirements of paragraphs (b), (d), and (i) 
have been met. 
    Homestead treatment must be afforded to units occupied by 
members of the cooperative association and the units must be 
assessed as provided in subdivision 3, provided that any unit 
not so occupied shall be classified and assessed pursuant to the 
appropriate class.  No more than three acres of land may, for 
assessment purposes, be included with each dwelling unit that 
qualifies for homestead treatment under this subdivision. 
     Sec. 15.  Minnesota Statutes 1991 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 June 1 of a year, constitutes class 1 or class 2a. 
    Any taxpayer meeting the requirements of this subdivision 
must notify the county assessor, or the assessor who has the 
powers of the county assessor pursuant to under section 273.063, 
in writing, prior to June 15 of the year of occupancy in order 
to qualify under this subdivision.  The assessor must not deny 
full homestead treatment to a property that is partially 
homesteaded on January 2 but occupied for the purpose of a full 
homestead by June 1 of a year.  
    The county assessor and the county auditor may make the 
necessary changes on their assessment and tax records to provide 
for proper homestead classification as provided in this 
subdivision. 
    If homestead classification has not been requested as of 
December 15, the assessor will classify the property as 
nonhomestead for the current assessment year for taxes payable 
in the following year, provided that the owner of any property 
qualifying under this subdivision, which has not been accorded 
the benefits of this subdivision, regardless of whether or not 
the notification has been timely filed, may be entitled to 
receive homestead classification by proper application as 
provided in section 270.07 or 375.192.  
    The county assessor shall publish in a newspaper of general 
circulation within the county no later than June 1 of each year 
a notice informing the public of the requirement to file an 
application for homestead prior to June 15. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
273.124, subdivision 13, is amended to read: 
    Subd. 13.  [SOCIAL SECURITY NUMBER REQUIRED FOR HOMESTEAD 
APPLICATION.] On or before January 2, 1993, each county assessor 
shall mail a homestead application to the owner of each parcel 
of property within the county which was classified as homestead 
for the 1992 assessment year.  The format and contents of a 
uniform homestead application shall be prescribed by the 
commissioner of revenue.  The commissioner shall consult with 
the chairs of the house and senate tax committees on the 
contents of the homestead application form.  The application 
must clearly inform the taxpayer that this application must be 
signed by all owners of the property and returned to the county 
assessor in order for the property to continue receiving 
homestead treatment.  The envelope containing the homestead 
application shall clearly identify its contents and alert the 
taxpayer of its necessary immediate response. 
    Every four years after the initial homestead application 
has been filed under this subdivision, a county shall mail a 
homestead application to the owner of each parcel of property to 
verify the continued eligibility for homestead status for all 
properties classified as homestead within the county in the 
prior year's assessment.  The homestead application and 
procedures shall be done in the same manner as contained in this 
subdivision for the 1993 homestead application. 
    On the homestead application each owner shall disclose the 
location of any other residential property in the state in which 
the owner holds full or partial ownership and for which 
homestead status has been granted or has been applied for at the 
time of the application.  Each owner must also disclose the name 
and social security number of any relative occupying a property 
qualifying as a homestead under section 273.124, subdivision 1, 
paragraph (c).  Failure to disclose the information required 
under this paragraph may result in the imposition of the penalty 
provided under this subdivision. 
    Every property owner applying for homestead classification 
must furnish to the county assessor that owner's the social 
security number of each person who is listed as an owner of the 
property listed on the homestead application.  If the social 
security number is not provided, the county assessor shall 
classify the property as nonhomestead.  The social security 
numbers of the property owners are private data on individuals 
as defined by section 13.02, subdivision 12, but, 
notwithstanding that section, the private data may be disclosed 
to the commissioner of revenue. 
    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 section 273.124, subdivision 1, paragraph 
(c), in order for the property to receive homestead status, a 
homestead application must be filed with the assessor.  The 
social security number of each relative occupying the property 
and the social security number of each owner of the property 
shall be required on the homestead application filed under this 
subdivision.  If a different relative of the owner subsequently 
occupies the property, the owner of the property must notify the 
assessor within 30 days of the change in occupancy.  
    The homestead application shall also notify the property 
owners that the application filed under this section will not be 
mailed annually and that if the property is granted homestead 
status for the 1993 assessment, that same property shall remain 
classified as homestead until the property is sold or 
transferred to another person, or the owners or the relatives no 
longer use the property as their homestead.  Upon the sale or 
transfer of the homestead property, a certificate of value must 
be timely filed with the county auditor as provided under 
section 272.115.  Failure to notify the county within 30 days 
that the property has been sold, transferred, or that the owner 
or the relative is no longer occupying the property as a 
homestead, shall result in the penalty provided under this 
subdivision and the property will lose its current homestead 
status. 
    If the initial homestead application is not returned within 
30 days, the county will send a second application to the 
present owners of record.  The notice of proposed property taxes 
prepared under section 275.065, subdivision 3, shall reflect the 
property's classification.  If a homestead application has not 
been filed with the county by December 15, the assessor shall 
classify the property as nonhomestead for the current assessment 
year for taxes payable in the following year, provided that the 
owner may be entitled to receive the homestead classification by 
proper application under section 375.192. 
    At the request of the commissioner, each county must give 
the commissioner a list that includes the name and social 
security number of each property owner applying for homestead 
classification under this subdivision.  
    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 50 100 percent of the homestead benefits.  The property 
owners may appeal the county's determination by filing a notice 
of appeal with the Minnesota tax court within 60 days of the 
date of the notice from the county. 
    If the amount of homestead benefits and penalty is not paid 
within 60 days, and if no appeal has been filed, the county 
auditor shall certify the amount of taxes and penalty to the 
succeeding year's tax list to be collected as part of the 
property taxes. 
    Any amount of homestead benefits recovered by the county 
from the property owner must be transmitted to the commissioner 
by the end of each calendar quarter 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. 
    The commissioner will provide suggested homestead 
applications to each county.  If a property owner has applied 
for more than one homestead and the county assessors cannot 
determine which property should be classified as homestead, the 
county assessors will refer the information to the commissioner. 
The commissioner shall make the determination and notify the 
counties within 60 days. 
    In addition to lists of homestead properties, the 
commissioner may ask the counties to furnish lists of all 
properties and the record owners. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
273.13, subdivision 22, is amended to read: 
    Subd. 22.  [CLASS 1.] (a) Except as provided in subdivision 
23, real estate which is residential and used for homestead 
purposes is class 1.  The market value of class 1a property must 
be determined based upon the value of the house, garage, and 
land.  
    The first $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 real estate or manufactured 
homes used for the purposes of a homestead by 
    (1) any blind person, if the blind person is the owner 
thereof or if the blind person and the blind person's spouse are 
the sole owners thereof; or 
     (2) any person, hereinafter referred to as "veteran," who: 
     (i) served in the active military or naval service of the 
United States; and 
     (ii) is entitled to compensation under the laws and 
regulations of the United States for permanent and total 
service-connected disability due to the loss, or loss of use, by 
reason of amputation, ankylosis, progressive muscular 
dystrophies, or paralysis, of both lower extremities, such as to 
preclude motion without the aid of braces, crutches, canes, or a 
wheelchair; and 
     (iii) 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, that the property owner 
satisfies the disability requirements of this subdivision. 
     Property is classified and assessed pursuant to clause (1) 
only if the commissioner of jobs and training certifies to the 
assessor that the owner of the property satisfies the 
requirements of this subdivision.  
     Permanently and totally disabled for the purpose of this 
subdivision means a condition which is permanent in nature and 
totally incapacitates the person from working at an occupation 
which brings the person an income.  The first $32,000 market 
value of class 1b property has a net 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 225 250 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 or available for use for 
residential occupancy and a fee is charged for residential 
occupancy.  Class 1c property has a class rate of .8 percent of 
the first $32,000 of market value and one percent of market 
value in excess of $32,000 for taxes payable in 1992, and one 
percent of total market value for taxes payable in 1993 and 
thereafter with the following limitation:  the area of the 
property must not exceed 100 feet of lakeshore footage for each 
cabin or campsite located on the property up to a total of 800 
feet and 500 feet in depth, measured away from the lakeshore.  
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
273.13, subdivision 25, as amended by Laws 1992, chapter 363, 
article 1, section 12, subdivision 1, 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 or rules promulgated by the agency and financed by a 
direct federal loan or federally insured loan made pursuant to 
Title II of the Act; or 
    (ii) situated on real property that is used for housing the 
elderly or for low- and moderate-income families as defined by 
the Minnesota housing finance agency law of 1971, as amended, or 
rules adopted by the agency pursuant thereto and financed by a 
loan made by the Minnesota housing finance agency pursuant to 
the provisions of the act.  
    This clause applies only to property of a nonprofit or 
limited dividend entity.  Property is classified as class 4c 
under this clause for 15 years from the date of the completion 
of the original construction or substantial rehabilitation, or 
for the original term of the loan.  
    (2) a structure that is: 
    (i) situated upon real property that is used for housing 
lower income families or elderly or handicapped persons, as 
defined in section 8 of the United States Housing Act of 1937, 
as amended; and 
    (ii) owned by an entity which has entered into a housing 
assistance payments contract under section 8 which provides 
assistance for 100 percent of the dwelling units in the 
structure, other than dwelling units intended for management or 
maintenance personnel.  Property is classified as class 4c under 
this clause for the term of the housing assistance payments 
contract, including all renewals, or for the term of its 
permanent financing, whichever is shorter; and 
     (3) a qualified low-income building as defined in section 
42(c)(2) of the Internal Revenue Code of 1986, as amended 
through December 31, 1990, that (i) receives a low-income 
housing credit under section 42 of the Internal Revenue Code of 
1986, as amended through December 31, 1990; or (ii) meets the 
requirements of that section and receives public financing, 
except financing provided under sections 469.174 to 469.179, 
which contains terms restricting the rents; or (iii) meets the 
requirements of section 273.1317.  Classification pursuant to 
this clause is limited to a term of 15 years. 
     For all properties described in clauses (1), (2), and (3) 
and in paragraph (d), the market value determined by the 
assessor must be based on the normal approach to value using 
normal unrestricted rents unless the owner of the property 
elects to have the property assessed under Laws 1991, chapter 
291, article 1, section 55.  If the owner of the property elects 
to have the market value determined on the basis of the actual 
restricted rents, as provided in Laws 1991, chapter 291, article 
1, section 55, the property will be assessed at the rate 
provided for class 4a or class 4b property, as appropriate.  
Properties described in clauses (1)(ii), (3), and (4) may apply 
to the assessor for valuation under Laws 1991, chapter 291, 
article 1, section 55.  The land on which these structures are 
situated has the class rate given in paragraph (b) if the 
structure contains fewer than four units, and the class rate 
given in paragraph (a) if the structure contains four or more 
units.  This clause applies only to the property of a nonprofit 
or limited dividend entity.  
     (4) a parcel of land, not to exceed one acre, and its 
improvements or a parcel of unimproved land, not to exceed one 
acre, if it is owned by a neighborhood real estate trust and at 
least 60 percent of the dwelling units, if any, on all land 
owned by the trust are leased to or occupied by lower income 
families or individuals.  This clause does not apply to any 
portion of the land or improvements used for nonresidential 
purposes.  For purposes of this clause, a lower income family is 
a family with an income that does not exceed 65 percent of the 
median family income for the area, and a lower income individual 
is an individual whose income does not exceed 65 percent of the 
median individual income for the area, as determined by the 
United States Secretary of Housing and Urban Development.  For 
purposes of this clause, "neighborhood real estate trust" means 
an entity which is certified by the governing body of the 
municipality in which it is located to have the following 
characteristics: 
      (a) it is a nonprofit corporation organized under chapter 
317A; 
      (b) it has as its principal purpose providing housing for 
lower income families in a specific geographic community 
designated in its articles or bylaws; 
    (c) it limits membership with voting rights to residents of 
the designated community; and 
    (d) it has a board of directors consisting of at least 
seven directors, 60 percent of whom are members with voting 
rights and, to the extent feasible, 25 percent of whom are 
elected by resident members of buildings owned by the trust; and 
    (5) except as provided in subdivision 22, paragraph (c), 
real property devoted to temporary and seasonal residential 
occupancy for recreation purposes, including real property 
devoted to temporary and seasonal residential occupancy for 
recreation purposes and not devoted to commercial purposes for 
more than 250 days in the year preceding the year of 
assessment.  For purposes of this clause, property is devoted to 
a commercial purpose on a specific day if any portion of the 
property is used, or available for use for residential 
occupancy, and a fee is charged for residential occupancy.  
Class 4c also includes commercial use real property used 
exclusively for recreational purposes in conjunction with class 
4c property devoted to temporary and seasonal residential 
occupancy for recreational purposes, up to a total of two acres, 
provided the property is not devoted to commercial recreational 
use for more than 250 days in the year preceding the year of 
assessment and is located within two miles of the class 4c 
property with which it is used.  Class 4c property classified in 
this clause also includes the remainder of class 1c resorts. 
Owners of real property devoted to temporary and seasonal 
residential occupancy for recreation purposes and all or a 
portion of which was devoted to commercial purposes for not more 
than 250 days in the year preceding the year of assessment 
desiring classification as class 1c or 4c, must submit a 
declaration to the assessor designating the cabins or units 
occupied for 250 days or less in the year preceding the year of 
assessment by January 15 of the assessment year.  Those cabins 
or units and a proportionate share of the land on which they are 
located will be designated class 1c or 4c as otherwise 
provided.  The remainder of the cabins or units and a 
proportionate share of the land on which they are located will 
be designated as class 3a.  The first $100,000 of the market 
value of the remainder of the cabins or units and a 
proportionate share of the land on which they are located shall 
have a class rate of three percent.  The owner of property 
desiring designation as class 1c or 4c property must provide 
guest registers or other records demonstrating that the units 
for which class 1c or 4c designation is sought were not occupied 
for more than 250 days in the second year preceding the 
assessment if so requested.  The portion of a property operated 
as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
nonresidential facility operated on a commercial basis not 
directly related to temporary and seasonal residential occupancy 
for recreation purposes shall not qualify for class 1c or 4c; 
    (6) real property up to a maximum of one acre of land owned 
by a nonprofit community service oriented organization; provided 
that the property is not used for a revenue-producing activity 
for more than six days in the calendar year preceding the year 
of assessment and the property is not used for residential 
purposes on either a temporary or permanent basis.  For purposes 
of this clause, a "nonprofit community service oriented 
organization" means any corporation, society, association, 
foundation, or institution organized and operated exclusively 
for charitable, religious, fraternal, civic, or educational 
purposes, and which is exempt from federal income taxation 
pursuant to section 501(c)(3), (10), or (19) of the Internal 
Revenue Code of 1986, as amended through December 31, 1990.  For 
purposes of this clause, "revenue-producing activities" shall 
include but not be limited to property or that portion of the 
property that is used as an on-sale intoxicating liquor or 
nonintoxicating malt liquor establishment licensed under chapter 
340A, a restaurant open to the public, bowling alley, a retail 
store, gambling conducted by organizations licensed under 
chapter 349, an insurance business, or office or other space 
leased or rented to a lessee who conducts a for-profit 
enterprise on the premises.  Any portion of the property which 
is used for revenue-producing activities for more than six days 
in the calendar year preceding the year of assessment shall be 
assessed as class 3a.  The use of the property for social events 
open exclusively to members and their guests for periods of less 
than 24 hours, when an admission is not charged nor any revenues 
are received by the organization shall not be considered a 
revenue-producing activity; 
    (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) 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 has a class rate of two percent and the 
market value that exceeds $72,000 has a class rate of 2.5 
percent, and (ii) manufactured home parks assessed under clause 
(8) have a class rate of two percent for taxes payable in 1993 
only.  
    (d) Class 4d property includes: 
    (1) a structure that is: 
    (i) situated on real property that is used for housing for 
the elderly or for low and moderate income families as defined 
by the Farmers Home Administration; 
    (ii) located in a municipality of less than 10,000 
population; and 
    (iii) financed by a direct loan or insured loan from the 
Farmers Home Administration.  Property is classified under this 
clause for 15 years from the date of the completion of the 
original construction or for the original term of the loan.  
    The class rates in paragraph (c), clauses (1), (2), and (3) 
and this clause apply to the properties described in them, only 
in proportion to occupancy of the structure by elderly or 
handicapped persons or low and moderate income families as 
defined in the applicable laws unless construction of the 
structure had been commenced prior to January 1, 1984; or the 
project had been approved by the governing body of the 
municipality in which it is located prior to June 30, 1983; or 
financing of the project had been approved by a federal or state 
agency prior to June 30, 1983.  For property for which 
application is made for 4c or 4d classification for taxes 
payable in 1994 and thereafter, and which was not classified 4c 
or 4d for taxes payable in 1993, 4c or 4d classification is 
available only for those units meeting the requirements of 
section 273.1318. 
    Classification under this clause is only available to 
property of a nonprofit or limited dividend entity. 
    (2) For taxes payable in 1992, 1993 and 1994, only, 
buildings and appurtenances, together with the land upon which 
they are located, leased by the occupant under the community 
lending model lease-purchase mortgage loan program administered 
by the Federal National Mortgage Association, provided the 
occupant's income is no greater than 60 percent of the county or 
area median income, adjusted for family size and the building 
consists of existing single family or duplex housing.  The lease 
agreement must provide for a portion of the lease payment to be 
escrowed as a nonrefundable down payment on the housing.  To 
qualify under this clause, the taxpayer must apply to the county 
assessor by May 30 of each year.  The application must be 
accompanied by an affidavit or other proof required by the 
assessor to determine qualification under this clause. 
    (3) For taxes payable in 1992, 1993 and 1994, only, 
federally acquired buildings under four units and appurtenances, 
together with the land upon which they are located that is 
leased to a nonprofit corporation organized under chapter 317A 
that qualifies for tax exempt status under United States Code, 
title 26, section 501(c), or a housing and redevelopment 
authority authorized under sections 469.001 to 469.047; the 
purpose of the lease must be to allow the nonprofit corporation 
to provide transitional housing for homeless persons under the 
program established in Code of Federal Regulations, title 55, 
section 49489.  As used in this clause, "transitional housing" 
has the meaning given in section 268.38, subdivision 1, except 
that the two-year restriction does not apply.  If the property 
is purchased from the federal government by the nonprofit 
corporation for the purpose of continuing to provide 
transitional housing after the expiration of the lease, the 
property shall continue to be eligible for this classification.  
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 
county assessor to determine qualification under this clause.  
Property qualifying under this clause in 1992, 1993, or 1994 
continues to receive a two percent class rate until the 
five-year lease has expired provided that the property continues 
to be used for the purposes as described in this clause. 
Qualifying buildings and appurtenances, together with the land 
upon which they are located, leased for a period of up to five 
years by the occupant under a lease-purchase program 
administered by the Minnesota housing finance agency or a 
housing and redevelopment authority authorized under sections 
469.001 to 469.047, provided the occupant's income is no greater 
than 80 percent of the county or area median income, adjusted 
for family size and the building consists of two or less 
dwelling units.  The lease agreement must provide for a portion 
of the lease payment to be escrowed as a nonrefundable down 
payment on the housing.  The administering agency shall verify 
the occupants income eligibility and certify to the county 
assessor that the occupant meets the income criteria under this 
paragraph.  To qualify under this clause, the taxpayer must 
apply to the county assessor by May 30 of each year.  For 
purposes of this section, "qualifying buildings and 
appurtenances" shall be defined as one or two unit residential 
buildings which are unoccupied and have been abandoned and 
boarded for at least six months. 
    Class 4d property has a class rate of two percent of market 
value. 
    (e) Residential rental property that would otherwise be 
assessed as class 4 property under paragraph (a); paragraph (b), 
clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
(4), is assessed at the class rate applicable to it under 
Minnesota Statutes 1988, section 273.13, if it is found to be a 
substandard building under section 273.1316.  Residential rental 
property that would otherwise be assessed as class 4 property 
under paragraph (d) is assessed at 2.3 percent of market value 
if it is found to be a substandard building under section 
273.1316. 
    Sec. 19.  [273.1318] [CLASS 4C LOW-INCOME HOUSING; ELIGIBLE 
UNITS.] 
    Subdivision 1.  [INCOME LIMITATION.] (a) Subject to the 
exception in paragraph (b), for a building for which application 
is made for class 4c for taxes payable in 1994 and thereafter, 
and which was not class 4c for taxes payable in 1993, only those 
units occupied by a household whose income is 100 percent or 
less of the county or area median income adjusted for family 
size as determined by the department of housing and urban 
development are eligible for class 4c. 
    (b) For a building for which application is made for class 
4c for taxes payable in 1994 and thereafter, and which was not 
class 4c for taxes payable in 1993, but for which a formal 
application was received by a local, state, or federal agency 
for financing, refinancing, or insurance before July 1, 1992, 
the income limit is 100 percent or less of county or area median 
income not adjusted for family size as determined by the 
department of housing and urban development. 
    Subd. 2.  [ANNUAL DETERMINATION.] With regard to buildings, 
the construction of which had been commenced after December 31, 
1982; or the project of which the building was a part was 
approved by the governing body of the municipality in which it 
is located subsequent to June 29, 1983; or financing of the 
project had been approved by a federal or state agency 
subsequent to June 29, 1983, a governmental agency providing 
financing or mortgage insurance for a building qualifying for 
class 4c or 4d or other entity must annually review income 
records maintained by the owner of the property to determine the 
units that qualify for a class 4c or 4d rate under this 
section.  The income records must reflect household income at 
the commencement of the tenancy, and thereafter, when household 
composition changes.  If the entity is not a governmental 
agency, the entity must be approved by the department of 
revenue.  The agency or other entity shall report to the 
assessor responsible for assessing the property at the time and 
in the manner required by the assessor.  The income records must 
be made available to the assessor.  The assessor shall determine 
the units that qualify for a class 4c or 4d rate. 
    Sec. 20.  Minnesota Statutes 1990, section 274.19, 
subdivision 8, is amended to read: 
    Subd. 8.  [MANUFACTURED HOMES; SECTIONAL STRUCTURES.] (a) 
In this section, "manufactured home" means a structure 
transportable in one or more sections, which is built on a 
permanent chassis, and designed to be used as a dwelling with or 
without a permanent foundation when connected to the required 
utilities, and contains the plumbing, heating, air conditioning, 
and electrical systems in it.  "Manufactured home" includes any 
accessory structure that is an addition or supplement to the 
manufactured home and, when installed, becomes a part of the 
manufactured home.  
     (b) A manufactured home that meets each of the following 
criteria must be valued and assessed as an improvement to real 
property, the appropriate real property classification applies, 
and the valuation is subject to review and the taxes payable in 
the manner provided for real property:  
     (1) the owner of the unit holds title to the land on which 
it is situated; 
     (2) the unit is affixed to the land by a permanent 
foundation or is installed at its location in accordance with 
the manufactured home building code in sections 327.31 to 
327.34, and rules adopted under those sections, or is affixed to 
the land like other real property in the taxing district; and 
     (3) the unit is connected to public utilities, has a well 
and septic tank system, or is serviced by water and sewer 
facilities comparable to other real property in the taxing 
district.  
     (c) A manufactured home that meets each of the following 
criteria must be assessed at the rate provided by the 
appropriate real property classification but must be treated as 
personal property, and the valuation is subject to review and 
the taxes payable in the manner provided in this section: 
     (1) the owner of the unit is a lessee of the land under the 
terms of a lease; 
     (2) the unit is affixed to the land by a permanent 
foundation or is installed at its location in accordance with 
the manufactured homes building code contained in sections 
327.31 to 327.34, and the rules adopted under those sections, or 
is affixed to the land like other real property in the taxing 
district; and 
     (3) the unit is connected to public utilities, has a well 
and septic tank system, or is serviced by water and sewer 
facilities comparable to other real property in the taxing 
district.  
    (d) Sectional structures must be valued and assessed as an 
improvement to real property if the owner of the structure holds 
title to the land on which it is located or is a qualifying 
lessee of the land under section 273.19.  In this paragraph 
"sectional structure" means a building or structural unit that 
has been in whole or substantial part manufactured or 
constructed at an off-site location to be wholly or partially 
assembled on-site alone or with other units and attached to a 
permanent foundation.  
    (e) The commissioner of revenue may adopt rules under the 
administrative procedure act to establish additional criteria 
for the classification of manufactured homes and sectional 
structures under this subdivision. 
    (f) A storage shed, deck, or similar improvement 
constructed on property that is leased or rented as a site for a 
manufactured home, sectional structure, park trailer, or travel 
trailer is taxable as provided in this section.  The property is 
taxable as personal property to the lessee of the site if it is 
not owned by the owner of the site.  The property is taxable as 
real estate if it is owned by the owner of the site.  As a 
condition of permitting the owner of the manufactured home, 
sectional structure, park trailer, or travel trailer to 
construct improvements on the leased or rented site, the owner 
of the site must obtain the permanent home address of the lessee 
or user of the site.  The site owner must provide the name and 
address to the assessor upon request. 
    Sec. 21.  Minnesota Statutes 1991 Supplement, section 
275.125, subdivision 6j, is amended to read: 
    Subd. 6j.  [LEVY FOR CRIME RELATED COSTS.] For taxes levied 
in 1991 and subsequent years, payable in 1992 only and 
subsequent years, each school district may make a levy on all 
taxable property located within the school district for the 
purposes specified in this subdivision.  The maximum amount 
which may be levied for all costs under this subdivision shall 
be equal to $1 multiplied by the population of the school 
district.  For purposes of this subdivision, "population" of the 
school district means the same as contained in section 275.14.  
The proceeds of the levy must be used for reimbursing the cities 
and counties who contract with the school district for the 
following purposes:  (1) to pay the costs incurred for the 
salaries, benefits, and transportation costs of peace officers 
and sheriffs for liaison services in the district's middle and 
secondary schools, and (2) to teach drug abuse resistance 
education curricula pay the costs for a drug abuse prevention 
program as defined in Minnesota Statutes 1991 Supplement, 
section 609.101, subdivision 3, paragraph (f) in the elementary 
schools, and (3) to pay the costs incurred for the salaries and 
benefits of peace officers and sheriffs whose primary 
responsibilities are to investigate controlled substance crimes 
under chapter 152.  The school district must initially attempt 
to contract for these services with the police department of 
each city or the sheriff's department of the county within the 
school district containing the school receiving the services.  
If a local police department or a county sheriff's department 
does not wish to provide the necessary services, the district 
may contract for these services with any other police or 
sheriff's department located entirely or partially within the 
school district's boundaries.  The levy authorized under this 
subdivision is not included in determining the school district's 
levy limitations and must be disregarded in computing any 
overall levy limitations under sections 275.50 to 275.56 of the 
participating cities or counties. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
275.61, is amended to read: 
    275.61 [REFERENDUM LEVY; MARKET VALUE.] 
    For local governmental subdivisions other than school 
districts, any levy, including the issuance of debt obligations 
payable in whole or in part from property taxes, required to be 
approved and approved by the voters at a general or special 
election for taxes payable in 1993 and thereafter, shall be 
levied against the market value of all taxable property within 
the governmental subdivision.  Any levy amount subject to the 
requirements of this section shall be certified separately to 
the county auditor under section 275.07. 
    The ballot shall state the maximum amount of the increased 
levy as a percentage of market value and the amount that will be 
raised by the new referendum tax rate in the first year it is to 
be levied. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
277.17, is amended to read: 
    277.17 [ESCROW REQUIREMENT FOR DELINQUENCIES ON 
MANUFACTURED HOMES.] 
    Subdivision 1.  [CERTIFICATION TO MANUFACTURED HOME OWNER.] 
On or before October 15 of each year, the county auditor shall 
send a letter to each owner of a manufactured home for which the 
personal property taxes due on August 31 are delinquent as of 
September 30.  On or before December 31 of each year, the county 
auditor shall send a letter to each owner of a manufactured home 
for which the taxes due on August 31 were not delinquent but the 
personal property taxes due on November 15 are delinquent as of 
December 15.  The letter must inform the owner that due to the 
delinquency, if the delinquent taxes are not paid in full within 
90 days of the date of issuance of the notice one of the 
following may occur: 
    (1) the owner will may be required under state law to begin 
making monthly payments of delinquent property taxes, and that 
the property taxes will also be escrowed for payment of property 
taxes the following year; or 
    (2) the county will notify the lender of the tax 
delinquency and request the lender to initiate the process 
provided under section 47.209.  The form and content of the 
notice to the owner shall be specified by the commissioner of 
revenue.  
    Subd. 2.  [ESTABLISHMENT OF TAX ESCROW ACCOUNTS.] The 
county auditor must may establish a tax escrow account for 
delinquent property taxes for each an owner receiving a letter 
who receives a notice under subdivision 1 if the county does not 
initiate the process provided under section 47.209.  If an 
escrow account is established for an owner who receives a notice 
regarding taxes due August 31, the owner must pay an additional 
amount each month equal to ten percent of the delinquent 
personal property taxes, penalties, and interest due, plus ten 
percent of the tax payable in the following calendar year.  If 
the owner fails to pay the tax due on November 15, the 
additional amount of tax due but unpaid will be added to the 
delinquent property taxes payable by installment under this 
section.  If an escrow account is established for an owner who 
receives a notice regarding taxes due November 15, the owner 
must pay an additional amount each month equal to 15 percent of 
the delinquent taxes, penalties, and interest due, plus 12 
percent of the tax payable in the following calendar year.  
    Subd. 3.  [COUNTY ESCROW.] Within 30 days of receipt of a 
letter notice from the county auditor under subdivision 1 2, the 
owner must make the first monthly payment under subdivision 2 to 
the county auditor.  The commissioner of revenue shall prescribe 
the procedures to be used for monthly collections of the 
delinquent and current tax payments.  If an owner is making the 
payments at the time required under this section, no action may 
be taken under section 277.20 with respect to the manufactured 
home for which the property taxes are being paid into the escrow 
account. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
278.05, subdivision 6, is amended to read: 
    Subd. 6.  [EXCLUSION OF CERTAIN EVIDENCE.] (a) Information, 
including income and expense figures, verified net rentable 
areas, and anticipated income and expenses, for income-producing 
property which is not provided to the county assessor at least 
30 45 days before any hearing under this chapter, is not 
admissible except if necessary to prevent undue hardship or when 
the failure to provide it was due to the unavailability of the 
evidence at that time.  
    (b) Provided that the information as contained in paragraph 
(a) is timely submitted to the county assessor, the county 
assessor shall furnish the petitioner at least five days before 
the hearing under this chapter with the property's appraisal, if 
any, which will be presented to the court at the hearing.  The 
petitioner shall furnish to the county assessor at least five 
days before the hearing under this chapter with the property's 
appraisal, if any, which will be presented to the court at the 
hearing.  An appraisal of the petitioner's property done by or 
for the county or by or for the petitioner shall not be 
admissible as evidence if the provisions within this paragraph 
are not met. 
    Sec. 25.  Minnesota Statutes 1991 Supplement, section 
279.01, subdivision 1, is amended to read: 
    Subdivision 1.  Except as provided in subdivision 3, on May 
16 or 21 days after the postmark date on the envelope containing 
the property tax statement, whichever is later, a penalty shall 
accrue and thereafter be charged upon all unpaid taxes on real 
estate on the current lists in the hands of the county 
treasurer.  The penalty shall be at a rate of three two percent 
on homestead property and seven percent until May 31 and four 
percent on June 1.  The penalty on nonhomestead property shall 
be at a rate of four percent until May 31 and eight percent on 
June 1.  This penalty shall not accrue until June 1 of each 
year, or 21 days after the postmark date on the envelope 
containing the property tax statements, whichever is later, on 
commercial use real property used for seasonal residential 
recreational purposes and classified as class 1c or 4c, and on 
other commercial use real property classified as class 3a, 
provided that over 60 percent of the gross income earned by the 
enterprise on the class 3a property is earned during the months 
of May, June, July, and August.  Any property owner of such 
class 3a property who pays the first half of the tax due on the 
property after May 15 and before June 1, or 21 days after the 
postmark date on the envelope containing the property tax 
statement, whichever is later, shall attach an affidavit to the 
payment attesting to compliance with the income provision of 
this subdivision.  Thereafter, for both homestead and 
nonhomestead property, on the first day of each month beginning 
July 1, up to and including October 1 following, an additional 
penalty of one percent for each month shall accrue and be 
charged on all such unpaid taxes provided that if the due date 
was extended beyond May 15 as the result of any delay in mailing 
property tax statements no additional penalty shall accrue if 
the tax is paid by the extended due date.  If the tax is not 
paid by the extended due date, then all penalties that would 
have accrued if the due date had been May 15 shall be charged.  
When the taxes against any tract or lot exceed $50, one-half 
thereof may be paid prior to May 16 or 21 days after the 
postmark date on the envelope containing the property tax 
statement, whichever is later; and, if so paid, no penalty shall 
attach; the remaining one-half shall be paid at any time prior 
to October 16 following, without penalty; but, if not so paid, 
then a penalty of four two percent shall accrue thereon for 
homestead property and a penalty of four percent on nonhomestead 
property.  Thereafter, for homestead property, on the first day 
of November an additional penalty of four percent shall accrue 
and on the first day of December following, an additional 
penalty of two percent for each month shall accrue and be 
charged on all such unpaid taxes.  Thereafter, for nonhomestead 
property, on the first day of November and December following, 
an additional penalty of four percent for each month shall 
accrue and be charged on all such unpaid taxes.  If one-half of 
such taxes shall not be paid prior to May 16 or 21 days after 
the postmark date on the envelope containing the property tax 
statement, whichever is later, the same may be paid at any time 
prior to October 16, with accrued penalties to the date of 
payment added, and thereupon no penalty shall attach to the 
remaining one-half until October 16 following.  
    This section applies to payment of personal property taxes 
assessed against improvements to leased property, except as 
provided by section 277.01, subdivision 3. 
    A county may provide by resolution that in the case of a 
property owner that has multiple tracts or parcels with 
aggregate taxes exceeding $50, payments may be made in 
installments as provided in this subdivision. 
    The county treasurer may accept payments of more or less 
than the exact amount of a tax installment due.  If the accepted 
payment is less than the amount due, payments must be applied 
first to the penalty accrued for the year the payment is made.  
Acceptance of partial payment of tax does not constitute a 
waiver of the minimum payment required as a condition for filing 
an appeal under section 278.03 or any other law, nor does it 
affect the order of payment of delinquent taxes under section 
280.39. 
     Sec. 26.  Minnesota Statutes 1991 Supplement, section 
281.17, is amended to read: 
    281.17 [PERIOD FOR REDEMPTION.] 
    The period of redemption for all lands sold to the state at 
a tax judgment sale shall be three years from the date of sale 
to the state of Minnesota if the land is within an incorporated 
area unless it is:  (a) nonagricultural homesteaded land as 
defined in section 273.13, subdivision 22; (b) homesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (a); or (c) seasonal recreational land as defined in 
section 273.13, subdivision 22, paragraph (c), 23, paragraph 
(c), or 25, paragraph (c), clause (5), for which the period of 
redemption is five years from the date of sale to the state of 
Minnesota. 
    The period of redemption for homesteaded lands as defined 
in section 273.13, subdivision 22, located in a targeted 
neighborhood as defined in Laws 1987, chapter 386, article 6, 
section 4, and sold to the state at a tax judgment sale is three 
years from the date of sale.  The period of redemption for all 
lands located in a targeted neighborhood as defined in Laws 
1987, chapter 386, article 6, section 4, except (1) homesteaded 
lands as defined in section 273.13, subdivision 22, and (2) for 
periods of redemption beginning after June 30, 1991, but before 
July 1, 1996, lands located in the Loring Park targeted 
neighborhood on which a notice of lis pendens has been served, 
and sold to the state at a tax judgment sale is one year from 
the date of sale. 
    The period of redemption for all other lands sold to the 
state at a tax judgment sale shall be five years from the date 
of sale, except that the period of redemption for nonhomesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (b), shall be two years from the date of sale if at 
that time that property is owned by a person who owns one or 
more parcels of property on which taxes are delinquent, and (1) 
the aggregate tax capacity of that property exceeds five percent 
of the total tax capacity of the school district in which the 
property is located, or (2) the delinquent taxes are more than 
25 percent of the prior year's school district levy. 
    Sec. 27.  Minnesota Statutes 1990, section 282.01, 
subdivision 7, is amended to read: 
    Subd. 7.  [SALES, WHEN COMMENCED, HOW LAND OFFERED FOR 
SALE.] The sale herein provided for shall commence at such time 
as the county board of the county wherein such parcels lie, 
shall direct.  The county auditor shall offer the parcels of 
land in order in which they appear in the notice of sale, and 
shall sell them to the highest bidder, but not for a less sum 
than the appraised value, until all of the parcels of land shall 
have been offered, and thereafter shall sell any remaining 
parcels to anyone offering to pay the appraised value thereof, 
except that if the person could have repurchased a parcel of 
property under section 282.012 or 282.241, that person shall not 
be allowed to purchase that same parcel of property at the sale 
under this subdivision unless approved by the county board.  
Said sale shall continue until all such parcels are sold or 
until the county board shall order a reappraisal or shall 
withdraw any or all such parcels from sale.  Such list of lands 
may be added to and the added lands may be sold at any time by 
publishing the descriptions and appraised values of such parcels 
of land as shall have become forfeited and classified as 
nonconservation since the commencement of any prior sale or such 
parcels as shall have been reappraised, or such parcels as shall 
have been reclassified as nonconservation or such other parcels 
as are subject to sale but were omitted from the existing list 
for any reason in the same manner as hereinafter provided for 
the publication of the original list, provided that any parcels 
added to such list shall first be offered for sale to the 
highest bidder before they are sold at appraised value.  All 
parcels of land not offered for immediate sale, as well as 
parcels of such lands as are offered and not immediately sold 
shall continue to be held in trust by the state for the taxing 
districts interested in each of said parcels, under the 
supervision of the county board, and such parcels may be used 
for public purposes until sold, as the county board may direct. 
    Sec. 28.  Minnesota Statutes 1990, section 282.012, is 
amended to read: 
    282.012 [PRIOR OWNER MAY PURCHASE; CONDITIONS.] 
    At any time not less than least one week prior to before 
the date of such sale, the person who was the owner of any 
included parcel at the time when it forfeited to the state for 
nonpayment of taxes, or the person's heirs, successors or 
assigns or any person to whom the right to pay taxes on such 
lands was given by statute, mortgage, or other agreement, may 
purchase such the parcel at.  The purchase price is the greater 
of (1) the appraised value thereof, of the parcel, or (2) the 
sum of all delinquent taxes and assessments, computed under 
section 282.251, together with penalties, interest, and costs, 
that accrued or would have accrued if the parcel had not 
forfeited to the state.  The purchaser's title and right to 
be is conditioned upon the primary use as designated by the 
resolution of the county board.  The right of such the purchaser 
to purchase shall be evidenced by the purchaser's duly verified 
written application showing the qualifications as hereinabove 
prescribed required by this section and filed with the county 
auditor.  
    Sec. 29.  Minnesota Statutes 1990, section 282.241, is 
amended to read: 
    282.241 [REPURCHASE AFTER FORFEITURE FOR TAXES.] 
    The owner at the time of forfeiture, or the owner's heirs, 
devisees, or representatives, or any person to whom the right to 
pay taxes was given by statute, mortgage, or other agreement, 
may repurchase any parcel of land claimed by the state to be 
forfeited to the state for taxes unless prior to before the time 
repurchase is made such the parcel shall have been is sold under 
installment payments, or otherwise, by the state as provided by 
law, or is under mineral prospecting permit or lease, or 
proceedings have been commenced by the state or any of its 
political subdivisions or by the United States to condemn such 
parcel of land.  Said The parcel of land may be repurchased for 
a sum equal to the aggregate.  The repurchase price is the 
greater of (1) the appraised value of the parcel, or (2) the sum 
of all delinquent taxes and assessments computed as provided by 
under section 282.251, together with penalties, interest, and 
costs, which did that accrued or would have accrued if such the 
parcel of land had not forfeited to the state.  Except for 
property which was homesteaded on the date of forfeiture, such 
repurchase shall be permitted during one year only from the date 
of forfeiture, and in any case only after the adoption of a 
resolution by the board of county commissioners determining that 
thereby undue hardship or injustice resulting from the 
forfeiture will be corrected, or that permitting such repurchase 
will promote the use of such lands that will best serve the 
public interest.  If the county board has good cause to believe 
that a repurchase installment payment plan for a particular 
parcel is unnecessary and not in the public interest, the county 
board may require as a condition of repurchase that the entire 
repurchase price be paid at the time of repurchase.  A 
repurchase shall be subject to any easement, lease, or other 
encumbrance granted by the state prior thereto, and if said land 
is located within a restricted area established by any county 
under Laws 1939, chapter 340, such repurchase shall not be 
permitted unless said resolution with respect thereto is adopted 
by the unanimous vote of the board of county commissioners. 
    Sec. 30.  Minnesota Statutes 1991 Supplement, section 
290A.04, subdivision 2h, is amended to read: 
    Subd. 2h.  (a) If the gross property taxes payable on a 
homestead increase more than ten 12 percent over the net 
property taxes payable in the prior year on the same property 
that is owned by the same owner in both years, and the amount of 
that increase is $40 or more for taxes payable in 1990 and 1991, 
$60 or more for taxes payable in 1992, $80 or more for taxes 
payable in 1993, and $100 or more for taxes payable in 1994, a 
claimant who is a homeowner shall be allowed an additional 
refund equal to the sum of (1) 75 percent of the first $250 of 
the amount of the increase over ten percent for taxes payable in 
1990 and 1991, 75 percent of the first $275 of the amount of the 
increase over ten percent for taxes payable in 1992, 75 percent 
of the first $300 of the amount of the increase over ten the 
greater of 12 percent of the prior year's net property taxes 
payable or $80 for taxes payable in 1993, and 75 percent of the 
first $325 of the amount of the increase over ten percent the 
greater of 12 percent of the prior year's net property taxes 
payable or $100 for taxes payable in 1994, and (2) 90 percent of 
the amount of the increase over ten percent plus $250 for taxes 
payable in 1990 and 1991, 90 percent of the amount of the 
increase over ten percent plus $275 for taxes payable in 1992, 
90 percent of the amount of the increase over ten percent plus 
$300 for taxes payable in 1993, and 90 percent of the amount of 
the increase over ten percent plus $325 for taxes payable in 
1994.  This subdivision shall not apply to any increase in the 
gross property taxes payable attributable to improvements made 
to the homestead after the assessment date for the prior year's 
taxes. 
    In the case of refunds for property taxes payable in 1993 
and thereafter, the maximum refund allowed under this 
subdivision is $1,500. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given: 
    (1) "Net property taxes payable" means property taxes 
payable after reductions made under sections 273.13, 
subdivisions 22 and 23; 273.135; 273.1391; and 273.42, 
subdivision 2, and any other state paid property tax credits and 
after the deduction of tax refund amounts for which the claimant 
qualifies pursuant to subdivision 2 and this subdivision.  
    (2) "Gross property taxes" means net property taxes payable 
determined without regard to the refund allowed under this 
subdivision. 
    (c) In addition to the other proofs required by this 
chapter, each claimant under this subdivision shall file with 
the property tax refund return a copy of the property tax 
statement for taxes payable in the preceding year or other 
documents required by the commissioner. 
    On or before December 1, 1990, and December 1 of each of 
the following three years 1993, the commissioner shall estimate 
the cost of making the payments provided by this subdivision for 
taxes payable in the following year.  Notwithstanding the open 
appropriation provision of section 290A.23, if the estimated 
total refund claims for taxes payable in 1991, 1993, or 1994 
exceed the following amounts for the taxes payable year 
designated $5,500,000, the commissioner shall increase the 
dollar $100 amount of tax increase which must occur before a 
taxpayer qualifies for a refund, and increase by an equal amount 
the $100 threshold used in determining the amount of the refund, 
so that the estimated total refund claims do not exceed the 
appropriation limit $5,500,000. 
     Taxes payable in:         Appropriation limit
       1991                     $13,000,000
       1993                      $6,000,000
       1994                      $5,500,000
    The determinations of the revised thresholds by the 
commissioner are not rules subject to chapter 14. 
    Sec. 31.  [290A.25] [VERIFICATION OF SOCIAL SECURITY 
NUMBERS.] 
    Annually, the commissioner of revenue shall furnish a list 
to the county assessor containing the names and social security 
numbers of persons who have applied for both homestead 
classification under section 273.13 and a property tax refund as 
a renter under this chapter.  
    Within 90 days of the notification, the county assessor 
shall investigate to determine if the homestead classification 
was improperly 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 has 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, and the 
taconite homestead credit under section 273.1391.  The county 
auditor shall send a notice to the owners of the property, 
demanding reimbursement of the homestead benefits plus a penalty 
equal to 100 percent of the homestead benefits.  The property 
owners may appeal the county's determination by filing a notice 
of appeal with the Minnesota tax court within 60 days of the 
date of the notice from the county. 
    If the amount of homestead benefits and penalty is not paid 
within 60 days, and if no appeal has been filed, the county 
auditor shall certify the amount of taxes and penalty to the 
succeeding year's tax list to be collected as part of the 
property taxes. 
    Any amount of homestead benefits recovered by the county 
from the property owner shall be distributed to the county, city 
or town, and school district where the property is located in 
the same proportion that each taxing district's levy was to the 
total of the three taxing districts' levy for the current year.  
Any amount recovered attributable to taconite homestead credit 
shall be transmitted to the St. Louis county auditor to be 
deposited in the taconite property tax relief account.  The 
total amount of penalty collected must be deposited in the 
county general fund. 
    Sec. 32.  Minnesota Statutes 1990, section 327C.01, is 
amended by adding a subdivision to read: 
    Subd. 9a.  [RESIDENT ASSOCIATION.] "Resident association" 
means an organization that has the written permission of the 
owners of at least 51 percent of the manufactured homes in the 
park to represent them, and which is organized for the purpose 
of resolving matters relating to living conditions in the 
manufactured home park. 
     Sec. 33.  Minnesota Statutes 1990, section 327C.12, is 
amended to read: 
    327C.12 [RETALIATORY CONDUCT PROHIBITED.] 
    A park owner may not increase rent, decrease services, 
alter an existing rental agreement or seek to recover possession 
or threaten such action in whole or in part as a penalty for a 
resident's:  
    (a) good faith complaint to the park owner or to a 
government agency or official; or 
    (b) good faith attempt to exercise rights or remedies 
pursuant to state or federal law.  In any proceeding in which 
retaliatory conduct is alleged, the burden of proving otherwise 
shall be on the park owner if the owner's challenged action 
began within 90 days after the resident engaged in any of the 
activities protected by this section.  If the challenged action 
began more than 90 days after the resident engaged in the 
protected activity, the party claiming retaliation must make a 
prima facie case.  The park owner must then prove otherwise; or 
    (c) joining and participating in the activities of a 
resident association as defined under section 327C.01, 
subdivision 9a. 
    Sec. 34.  Minnesota Statutes 1991 Supplement, section 
375.192, subdivision 2, is amended to read: 
    Subd. 2.  Upon written application by the owner of the 
property, the county board may grant the reduction or abatement 
of estimated market valuation or taxes and of any costs, 
penalties, or interest on them as the board deems just and 
equitable and order the refund in whole or part of any taxes, 
costs, penalties, or interest which have been erroneously or 
unjustly paid.  The county board may also grant the abatement of 
penalties for taxes paid within 30 days of the due date, 
regardless of the classification of the property.  The 
application must include the social security number of the 
applicant.  The social security number is private data on 
individuals as defined by section 13.02, subdivision 12.  The 
application must be approved by the county assessor, or, if the 
property is located in a city of the first or second class 
having a city assessor, by the city assessor, and by the county 
auditor before consideration by the county board.  If the 
application is for abatement of penalty or interest, the 
application must be approved by the county treasurer and county 
auditor.  No reduction, abatement, or refund of any special 
assessments made or levied by any municipality for local 
improvements shall be made unless it is also approved by the 
board of review or similar taxing authority of the 
municipality.  Before taking action on any reduction or 
abatement where the reduction of taxes, costs, penalties, and 
interest exceed $10,000, the county board shall give 20 days' 
notice to the school board and the municipality in which the 
property is located.  The notice must describe the property 
involved, the actual amount of the reduction being sought, and 
the reason for the reduction.  If the school board or the 
municipality object to the granting of the reduction or 
abatement, the county board must refer the abatement or 
reduction to the commissioner of revenue with its 
recommendation.  The commissioner shall consider the abatement 
or reduction under section 270.07, subdivision 1.  
    An appeal may not be taken to the tax court from any order 
of the county board made in the exercise of the discretionary 
authority granted in this section.  
    The county auditor shall notify the commissioner of revenue 
of all abatements resulting from the erroneous classification of 
real property, for tax purposes, as nonhomestead property.  For 
the abatements relating to the current year's tax processed 
through June 30, the auditor shall notify the commissioner on or 
before July 31 of that same year of all abatement applications 
granted.  For the abatements relating to the current year's tax 
processed after June 30 through the balance of the year, the 
auditor shall notify the commissioner on or before the following 
January 31 of all applications granted.  The county auditor 
shall submit a form containing the social security number of the 
applicant and such other information the commissioner prescribes.
    Sec. 35.  Minnesota Statutes 1990, section 381.12, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXPENSE, TAX LEVY.] For the purpose of defraying 
the expense incurred, or to be incurred in the preservation and 
restoration of monuments under this section, The county board of 
any county may levy a tax upon all the taxable property in the 
county for the purpose of defraying the expense incurred, or to 
be incurred for:  
    (1) the preservation and restoration of monuments under 
this section; 
    (2) the preservation or establishment of control monuments 
for mapping activities; 
    (3) the modernization of county land records through the 
use of parcel-based land management systems; or 
    (4) the establishment of geographic (GIS), land (LIS), 
management (MIS) information systems. 
    Sec. 36.  Minnesota Statutes 1990, section 473.388, 
subdivision 4, is amended to read: 
    Subd. 4.  [FINANCIAL ASSISTANCE.] The board may grant the 
requested financial assistance if it determines that the 
proposed service is consistent with the approved implementation 
plan and is intended to replace the service to the applying city 
or town or combination thereof by the transit commission and 
that the proposed service will meet the needs of the applicant 
at least as efficiently and effectively as the existing service. 
    The amount of assistance which the board may provide under 
this section may not exceed the sum of:  
    (a) the portion of the available local transit funds which 
the applicant proposes to use to subsidize the proposed service; 
and 
    (b) an amount of financial assistance bearing an identical 
proportional relationship to the amount under clause (a) as the 
total amount of financial assistance to the transit commission 
bears to the total amount of taxes collected by the board under 
section 473.446.  The board shall pay the amount to be provided 
to the recipient from the assistance the board would otherwise 
pay to the transit commission.  
    For purposes of this section "available local transit funds"
means 90 percent of the tax revenues which would accrue to the 
board from the tax it levies under section 473.446 in the 
applicant city or town or combination thereof.  
    For purposes of this section, "tax revenues" in the city or 
town means the sum of the following: 
    (1) the nondebt spread levy, which is the total of the 
taxes extended by application of the local tax rate for nondebt 
purposes on the taxable net tax capacity; 
    (2) the portion of the fiscal disparity distribution levy 
under section 473F.08, subdivision 3, attributable to nondebt 
purposes; and 
    (3) the portion of the homestead credit and agricultural 
credit aid and disparity reduction aid amounts under section 
273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
    Tax revenues do not include the state feathering 
reimbursement under section 473.446. 
    Sec. 37.  Minnesota Statutes 1990, 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 
and shall be disregarded in the calculation of limits on taxes 
imposed by chapter 275. 
    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; 
and 
    (c) for taxes payable in 1990, 1991, and subsequent 
years 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 year divided by the total market valuation of all 
taxable property located within the district for the previous 
assessment 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. 38.  Minnesota Statutes 1990, section 473.714, is 
amended to read: 
    473.714 [COMPENSATION OF COMMISSIONERS.] 
    Subdivision 1.  [COMPENSATION.] Except as provided in 
subdivision 2, each commissioner, including the officers of the 
commission shall be reimbursed for actual and necessary expenses 
incurred in the performance of duties.  The chair shall be paid 
a per diem for attending meetings, monthly, executive, and 
special, and each commissioner shall be paid a per diem for 
attending meetings, monthly, executive, and special, which per 
diem shall be established by the commission, such expense 
reimbursement and per diem notwithstanding any other funds which 
such commissioners may receive from any other public body.  A 
commissioner who receives a per diem from the commissioner's 
county shall not be paid a per diem for the same day by the 
commission for attending meetings of the commission.  The annual 
budget of the commission shall provide as a separate account 
anticipated expenditures for per diem, travel and associated 
expenses for the chair and members, and compensation or 
reimbursement shall be made to the chair or members only when 
budgeted. 
    Subd. 2.  [CERTAIN COMMISSIONERS.] A commissioner whose 
annual public salary is $25,000 or more shall only be reimbursed 
for expenses related to travel. 
    Sec. 39.  [473F.001] [CITATION.] 
    This chapter shall be cited as the "Charles R. Weaver 
metropolitan revenue distribution act." 
    Sec. 40.  Minnesota Statutes 1990, section 473H.10, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMPUTATION OF TAX; STATE REIMBURSEMENT.] (a) 
After having determined the market value of all land valued 
according to subdivision 2, the assessor shall compute the gross 
net tax capacity of those properties by applying the appropriate 
class rates.  When computing the rate of tax pursuant to section 
275.08, the county auditor shall include the gross net tax 
capacity of land as provided in this clause.  
    (b) The county auditor shall compute the tax on lands 
valued according to subdivision 2 and nonresidential buildings 
by multiplying the gross net tax capacity times the total local 
tax rate for all purposes as provided in clause (a).  
    (c) The county auditor shall then compute the tax on lands 
valued according to subdivision 2 and nonresidential buildings 
by multiplying the net tax capacity times the total local tax 
rate for all purposes as provided in clause (a), subtracting 
$1.50 per acre of land in the preserve.  
    (d) The county auditor shall then compute the maximum ad 
valorem property tax on lands valued according to subdivision 2 
and nonresidential buildings by multiplying the gross net tax 
capacity times 105 percent of the previous year's statewide 
average local tax rate levied on property located within 
townships for all purposes.  
    (d) (e) The tax due and payable by the owner of preserve 
land valued according to subdivision 2 and nonresidential 
buildings will be the amount determined in clause (b) or (c) or 
(d), whichever is less.  If the gross tax in clause (c) is less 
than the gross tax in clause (b), The state shall reimburse the 
taxing jurisdictions for the amount of the difference between 
the net tax determined under this clause and the gross tax in 
clause (b).  Residential buildings shall continue to be valued 
and classified according to the provisions of sections 273.11 
and 273.13, as they would be in the absence of this section, and 
the tax on those buildings shall not be subject to the 
limitation contained in this clause.  
    The county may transfer money from the county conservation 
account created in section 40A.152 to the county revenue fund to 
reimburse the fund for the tax lost as a result of this 
subdivision or to pay taxing jurisdictions within the county for 
the tax lost.  The county auditor shall certify to the 
commissioner of revenue on or before June 1 the total amount of 
tax lost to the county and taxing jurisdictions located within 
the county as a result of this subdivision and the extent that 
the tax lost exceeds funds available in the county conservation 
account.  Payment shall be made by the state on December 15 to 
each of the affected taxing jurisdictions, other than school 
districts, in the same proportion that the ad valorem tax is 
distributed if the county conservation account is insufficient 
to make the reimbursement.  There is annually appropriated from 
the Minnesota conservation fund under section 40A.151 to the 
commissioner of revenue an amount sufficient to make the 
reimbursement provided in this subdivision.  If the amount 
available in the Minnesota conservation fund is insufficient, 
the balance that is needed is appropriated from the general fund.
    Sec. 41.  Minnesota Statutes 1990, section 488A.20, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISPOSITION OF FINES, FEES AND OTHER MONEYS; 
ACCOUNTS.] (a) Except as otherwise provided herein and except as 
otherwise provided by law, the administrator shall pay to the 
Ramsey county treasurer all fines and penalties collected by the 
administrator, all fees collected for administrator's services, 
all sums forfeited to the court as hereinafter provided, and all 
other moneys received by the administrator. 
     (b) The administrator of court shall for each fine or 
penalty, provide the county treasurer with the name of the 
municipality or other subdivision of government where the 
offense was committed and the total amount of the fines or 
penalties collected for each such municipality or other 
subdivision of government. 
     (c) The state of Minnesota and any governmental subdivision 
within the jurisdictional area of the municipal court herein 
established may present cases for hearing before said municipal 
court.  In the event the court takes jurisdiction of a 
prosecution for the violation of a statute or ordinance by the 
state or a governmental subdivision other than a city or town in 
Ramsey county, all fines, penalties and forfeitures collected 
shall be paid over to the county treasurer except where a 
different disposition is provided by law, and the following fees 
shall be taxed to the state or governmental subdivision other 
than a city or town within Ramsey county which would be entitled 
to payment of the fines, forfeitures or penalties in any case, 
and shall be paid to the administrator of the court for 
disposing of the matter.  The administrator shall deduct the 
fees from any fine collected for the state of Minnesota or a 
governmental subdivision other than a city or town within Ramsey 
County and transmit the balance in accordance with the law, and 
the deduction of the total of the fees each month from the total 
of all the fines collected is hereby expressly made an 
appropriation of funds for payment of the fees:  
    (1) In all cases where the defendant is brought into court 
and pleads guilty and is sentenced, or the matter is otherwise 
disposed of without a trial.....$5 
    (2) In arraignments where the defendant waives a 
preliminary examination.....$10 
    (3) In all other cases where the defendant stands trial or 
has a preliminary examination by the court.....$15 
    (4) The court shall have the authority to waive the 
collection of fees in any particular case.  
    (d) At the beginning of the first day of any month, the 
amount in the hands of the administrator which is owing to any 
municipality or county shall not exceed $5,000. 
    (e) On or before the last day of each month, the county 
treasurer shall pay over to the treasurer of the city of St. 
Paul two-thirds and to the treasurer of each other municipality 
or subdivision of government in Ramsey county one-half of all 
fines or penalties collected during the previous month from 
those imposed for offenses committed within such the treasurer's 
municipality or subdivision of government in violation of a 
statute, an ordinance, charter provision, rule or regulation of 
a city.  All other fines and forfeitures and all fees and costs 
collected by the county municipal court shall be paid to the 
treasurer of Ramsey county who shall dispense the same as 
provided by law. 
     (f) Amounts represented by checks issued by the 
administrator or received by the administrator which have not 
cleared by the end of the month may be shown on the monthly 
account as having been paid or received, subject to adjustment 
on later monthly accounts. 
     (g) The administrator may receive negotiable instruments in 
payment of fines, penalties, fees, or other obligations as 
conditional payments, and is not held accountable therefor but 
if collection in cash is made and then only to the extent of the 
net collection after deduction of the necessary expense of 
collection. 
    Sec. 42.  [REPAYMENT.] 
    The city of St. Paul shall repay to Ramsey county an amount 
equal to the difference between the payments it receives under 
section 488A.20, subdivision 4, from July 1, 1992, to December 
31, 1992.  That amount, plus interest, must be paid over 12 
equal monthly installments beginning January 31, 1993.  Interest 
will be accrued at the average rate of return for Ramsey 
county's portfolio of general investments as determined by the 
manager of the revenue division of the Ramsey county department 
of taxation and records administration, using the county's 
normal method of calculating investment earnings on monthly 
balances. 
     Sec. 43.  Laws 1991, chapter 291, article 1, section 65, is 
amended to read: 
    Sec. 65.  [EFFECTIVE DATE.] 
    Sections 1, 4, 35, 36, 57, 58, and 62 are effective the day 
following final enactment. 
    Sections 2, 3, 11, 15 to 22, 24, 26 to 28, 30, 37 to 49, 
and 63 are effective for taxes levied in 1991, payable in 1992, 
and thereafter.  
    Sections 5 and 6 are effective for referenda held after 
November 1, 1992, for taxes payable in 1993 and thereafter.  
    Sections 7 and 52 are effective July 1, 1991. 
    Sections 8, 9 and 31 are effective for appeals filed after 
July 31, 1991.  
    Section 10 is effective only for taxes payable in 1992, 
1993, 1994, and 1995 and thereafter. 
    Sections 12 and 14 are effective for taxes payable in 1993 
and thereafter, except the deletion of the language "or any 
single contiguous lot fronting on the same street" in sections 
12 and 14 shall be effective for taxes payable in 1992 and 
thereafter. 
    Section 13 is effective the day following final enactment 
and applies to real property acquired after December 31, 1990. 
    Sections 23 and 25 are effective for taxes payable in 1993 
and thereafter.  
    Section 29 is effective for referenda for taxes payable in 
1993 and thereafter.  
    Sections 32 and 33 are effective for taxes deemed 
delinquent after December 31, 1991.  
    Sections 50 and 51 are effective for aids payable in 1991 
and thereafter. 
    Section 53 is effective the day after the governing body of 
the city of Minneapolis complies with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Section 54 is effective for the 1991 and 1992 assessment 
year. 
    Section 59 is effective the day after the governing body of 
independent school district No. 325, Lakefield, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Section 60 is effective the day after the governing body of 
independent school district No. 77, Mankato, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Section 61 is effective the day after the governing body of 
independent school district No. 284, Wayzata, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 44.  [SPECIAL SERVICE DISTRICT; CITY OF HUTCHINSON.] 
    Subdivision 1.  [SPECIAL SERVICES DEFINED.] For purposes of 
this section, "special services" means all services rendered or 
contracted for by the city of Hutchinson, including, but not 
limited to: 
    (1) the repair, maintenance, operation, and construction of 
any improvement authorized by Minnesota Statutes, section 
429.021; 
    (2) parking services rendered or contracted for by the 
city; 
    (3) development and promotional services rendered or 
contracted for by the city; and 
    (4) any other service or improvement provided by the city 
or development authority that is authorized by law or charter. 
    Subd. 2.  [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.] The 
governing body of the city of Hutchinson may adopt an ordinance 
establishing a special service district to be operated by the 
city of Hutchinson.  Minnesota Statutes, chapter 428A, governs 
the establishment and operation of special service districts in 
the city. 
    Sec. 45.  [DULUTH; TECHNICAL COLLEGE STUDENT HOUSING; 
PROPERTY TAX EXEMPTION.] 
    Subdivision 1.  [EXEMPTION.] As provided in this section, 
qualified student housing at the Duluth technical college is 
exempt from ad valorem property taxation.  In order to qualify 
for the exemption, the requirements in subdivisions 2 to 6 must 
be met. 
    Subd. 2.  [FINDING OF NEED.] Before authorizing a project 
qualifying under this section, the state board of technical 
colleges must find (1) that an adequate supply of appropriate 
housing is not available to students of the technical college, 
(2) that there is significant demand for housing by students of 
the technical college, and (3) that the private market is unable 
to satisfy this demand either at affordable prices or in a 
reasonable time. 
    Subd. 3.  [LOCATED ON LEASED PUBLIC LAND.] The student 
housing must be located on land owned by the technical college, 
the school district, or the state board of technical colleges 
that is leased to a private or nonprofit entity.  The lease must 
provide for nominal rent. 
    Subd. 4.  [NEW OR REHABILITATED UNITS ONLY.] The qualified 
student housing must consist of dwelling units that either were 
constructed or substantially rehabilitated after the project is 
approved by the state board. 
    Subd. 5.  [CONTRACT WITH DEVELOPER.] The state board must 
enter into a contract with the developer or landlord of the 
qualified student housing project.  This contract must provide 
that the reduced costs of the development resulting from the 
property tax exemption and leased land at a nominal rent will be 
reflected in lower rents for student tenants.  The contract must 
also provide a reasonable system of giving priority to students 
in renting the dwelling units.  The contract may include any 
other provisions that the board determines to be reasonable and 
appropriate, including provisions to monitor or ensure that 
priority is given to students in renting, that the student rents 
reflect the lower costs, or that special services are available 
to student tenants. 
    Subd. 6.  [MINIMUM STUDENT OCCUPANCY REQUIRED.] A student 
housing project qualifies for exemption under this section only 
if more than 50 percent of the units are occupied during the 
year by students of the technical college or other 
post-secondary institutions.  For purposes of this section, a 
student must be enrolled in a certificate or degree program to 
qualify. 
    Subd. 7.  [EXPIRATION.] This section applies to student 
housing approved by the state board before January 1, 1997.  The 
property tax exemption for a student housing development is 
limited to 20 years from the date of first occupancy.  This 
section expires January 1, 2018. 
    Subd. 8.  [EFFECTIVE DATE.] This section is effective the 
day after the governing body of the city of Duluth complies with 
Minnesota Statutes, section 645.021, subdivision 3, and applies 
beginning for property taxes assessed in 1993, and payable in 
1994. 
    Sec. 46.  [THIEF RIVER FALLS; TECHNICAL COLLEGE STUDENT 
HOUSING; PROPERTY TAX EXEMPTION.] 
    Subdivision 1.  [EXEMPTION.] As provided in this section, 
qualified student housing at the Thief River Falls technical 
college is exempt from ad valorem property taxation.  In order 
to qualify for the exemption, the requirements in subdivisions 2 
to 6 must be met. 
    Subd. 2.  [FINDING OF NEED.] Before authorizing a project 
qualifying under this section, the state board of technical 
colleges must find (1) that an adequate supply of appropriate 
housing is not available to students of the technical college, 
(2) that there is significant demand for housing by students of 
the technical college, and (3) that the private market is unable 
to satisfy this demand either at affordable prices or in a 
reasonable time. 
    Subd. 3.  [LOCATED ON LEASED PUBLIC LAND.] The student 
housing must be located on land owned by the technical college, 
the school district, or the state board of technical colleges 
that is leased to a private or nonprofit entity.  The lease must 
provide for nominal rent. 
    Subd. 4.  [NEW OR REHABILITATED UNITS ONLY.] The qualified 
student housing must consist of dwelling units that either were 
constructed or substantially rehabilitated after the project is 
approved by the state board. 
    Subd. 5.  [CONTRACT WITH DEVELOPER.] The state board must 
enter into a contract with the developer or landlord of the 
qualified student housing project.  This contract must provide 
that the reduced costs of the development resulting from the 
property tax exemption and leased land at a nominal rent will be 
reflected in lower rents for student tenants.  The contract must 
also provide a reasonable system of giving priority to students 
in renting the dwelling units.  The contract may include any 
other provisions that the board determines to be reasonable and 
appropriate, including provisions to monitor or ensure that 
priority is given to students in renting, that the student rents 
reflect the lower costs, or that special services are available 
to student tenants. 
    Subd. 6.  [MINIMUM STUDENT OCCUPANCY REQUIRED.] A student 
housing project qualifies for exemption under this section only 
if more than 50 percent of the units are occupied during the 
year by students of the technical college or other 
post-secondary institutions.  For purposes of this section, a 
student must be enrolled in a certificate or degree program to 
qualify. 
    Subd. 7.  [EXPIRATION.] This section applies to student 
housing approved by the state board before January 1, 1997.  The 
property tax exemption for a student housing development is 
limited to 20 years from the date of first occupancy.  This 
section expires January 1, 2018. 
    Subd. 8.  [EFFECTIVE DATE.] This section is effective the 
day after the governing body of the city of Thief River Falls 
complies with Minnesota Statutes, section 645.021, subdivision 
3, and applies beginning for property taxes assessed in 1993, 
and payable in 1994. 
    Sec. 47.  [PROPERTY ACQUIRED FROM ELECTRIC COOPERATIVE.] 
    Subdivision 1.  [PROPERTY EXEMPTION.] Property owned by a 
cooperative association, as defined in Minnesota Statutes, 
section 273.40, that is purchased by a public utility, as 
defined in Minnesota Statutes, section 216B.02, remains exempt 
from property taxes, if the property: 
    (1) was exempt under Minnesota Statutes, section 272.02, 
subdivision 1, clause (18), or section 273.41 when it was owned 
by the cooperative association; and 
    (2) is located in St. Louis, Koochiching, Itasca, and Lake 
counties. 
    This exemption applies for three assessment years from the 
date of purchase.  The tax under Minnesota Statutes, section 
273.41, continues to apply during the three-year exemption 
period.  The rates charged by the public utility must reflect 
the property tax exemption provided under this section. 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective in 
St. Louis, Koochiching, Itasca, and Lake counties the day after 
the governing body of the county complies with Minnesota 
Statutes, section 645.021, subdivision 3. 
    Sec. 48.  [HENNEPIN COUNTY; PROPERTY TAX EXEMPTION.] 
    Subdivision 1.  [EXEMPTION.] Notwithstanding the time 
requirements of Minnesota Statutes, section 272.02, subdivision 
4, paragraph (b), for taxes levied in 1991, payable in 1992, the 
governing body of Hennepin county may grant a property tax 
exemption for property that (1) meets the requirements of exempt 
property under Minnesota Statutes, section 272.02, subdivision 
4, paragraph (b), except for the July 1 date; (2) was an 
athletic facility classified as class 3 commercial and 
industrial property on January 2, 1991; and (3) was acquired 
during 1991 by a church. 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day following compliance with Minnesota Statutes, section 
645.021, subdivision 3, by the governing body of Hennepin county.
    Sec. 49.  [TRANSFERRING CLOSED ARMORIES.] 
    Notwithstanding Minnesota Statutes 1990, section 193.36, an 
armory that is mustered out of the service of the state and is 
closed by the adjutant general between the effective date of 
this act and July 1, 1994, must be disposed of as provided in 
this act.  
    An armory subject to this section must be offered for sale 
to the municipality or county within which it is located for the 
price of $1.  In the event that both the municipality and the 
county desire to purchase the armory, the municipality must be 
given first priority to purchase the armory.  If the 
municipality or county does not agree to purchase the armory 
after a reasonable opportunity, the adjutant general shall 
dispose of the property as provided in Minnesota Statutes 1990, 
section 193.36.  The adjutant general shall dispose of any 
receipts from the sale of the property as provided in Minnesota 
Statutes 1990, section 193.36, subdivision 2. 
    Sec. 50.  [PLANNING AND REMODELING GRANTS.] 
    $25,000 for each armory sold or disposed of under this 
section is appropriated from the general fund to the department 
of military affairs for fiscal year 1993 for the purpose of 
providing grants to municipalities or counties that purchase 
closed armories under section 49.  A grant of up to $25,000 must 
be provided to each municipality or county purchasing an 
armory.  These grants must be used by the municipality or county 
for preparing this property for any purpose deemed acceptable by 
the acquiring municipality or county.  The commissioner of 
military affairs shall consult with representatives of the 
acquiring municipalities and counties in adopting rules for the 
distribution of the grants.  
    Sec. 51.  [LIMITATION; LIABILITY.] 
    A municipality or county does not become responsible for 
responding to the presence of a hazardous substance or pollutant 
or contaminant in or on property associated with an armory under 
Minnesota Statutes, chapter 115B, solely because it takes 
ownership of an armory under sections 49 to 51. 
    Sec. 52.  [WATERSHED DISTRICT LEVIES.] 
    (a) The Nine Mile Creek watershed district, the 
Riley-Purgatory Bluff Creek watershed district, the Minnehaha 
Creek watershed district, the Coon Creek watershed district, and 
the Lower Minnesota River watershed district may levy in 1992 
and thereafter a tax not to exceed $200,000 on property within 
the district for the administrative fund.  The levy authorized 
under this section is in lieu of section 103D.905, subdivision 
3.  The administrative fund shall be used for the purposes 
contained in Minnesota Statutes, section 103D.905, subdivision 
3.  The board of managers shall make the levy for the 
administrative fund in accordance with Minnesota Statutes, 
section 103D.915. 
    (b) The Wild Rice watershed district may levy, for taxes 
payable in 1993, 1994, 1995, 1996, and 1997, an ad valorem tax 
not to exceed $200,000 on property within the district for the 
administrative fund.  The additional $75,000 above the amount 
authorized in Minnesota Statutes, section 103D.905, subdivision 
3, must be used for costs incurred in connection with 
cost-sharing projects with the United States Army Corps of 
Engineers.  The board of managers shall make the levy for the 
administrative fund in accordance with Minnesota Statutes, 
section 103D.915. 
    Sec. 53.  [CITY OF OTSEGO; EXCESS LEVY PENALTY ABATEMENT.] 
    The excess levy amount of $63,707, levied in 1990, for 
taxes payable in 1991, by the city of Otsego, Wright county, is 
exempt from the penalties imposed under Minnesota Statutes, 
sections 275.51, subdivision 4, and 275.55. 
    This section is effective the day after approval by the 
Otsego city council and compliance with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Sec. 54.  [STUDY OF SINGLE-USE PROPERTY.] 
    For the purposes of providing information to the 
legislature, the commissioner of revenue shall survey selected 
county assessors to obtain information on the number and types 
of single-use industrial real estate properties in the state.  
For purposes of the survey, the commissioner of revenue shall 
develop a definition of single-use industrial real estate 
property in consultation with the chairs of the house and senate 
tax committees and county assessors.  The commissioner shall 
make a report on the findings of the survey to the chairs of the 
house and senate tax committees prior to the 1993 legislative 
session. 
    Sec. 55.  [STUDY OF HOMESTEAD CLAIMS.] 
    The commissioner of revenue shall study alternative methods 
for identifying improper claims for homestead classification and 
the extent to which improper claims have been made.  The 
commissioner shall report the findings to the chairs of the 
house and senate tax committees by January 1993. 
    Sec. 56.  [STUDY ON ECONOMICS ON RENTAL HOUSING.] 
    The Minnesota housing finance agency, in cooperation with 
the department of revenue, shall study the effect of property 
tax policy on the economics of the long-term affordability of 
rental housing, maintenance of current rental housing stock, and 
the changing demographics of renters.  The agency shall convene 
a task force of representatives of interested groups to advise 
the agency on the study.  The agency and the department shall 
use appropriate research resources, including the University of 
Minnesota.  The agency shall report to the governor and the 
legislature by February 15, 1993. 
    Sec. 57.  [STUDY OF VALUATION OF MANUFACTURED HOME PARKS.] 
    The department of revenue in consultation with the 
assessors and the house and senate tax staff shall study the 
valuation of manufactured home parks and shall make 
recommendations concerning the most equitable and efficient 
methods of valuation to the chairs of the house and senate tax 
committees by January 15, 1993. 
    Sec. 58.  [REGIONAL TRANSIT BOARD AID.] 
    Notwithstanding Minnesota Statutes, section 473.446, 
subdivision 1, clause (3), for aids relating to taxes payable in 
1992, no aid shall be paid to the regional transit board in 1992 
for aid that was not used to reduce the levy extended against 
individual parcels as the result of a county auditor's error in 
taxes payable in 1992. 
    Aids payable to the regional transit board in 1993 under 
section 473.446 shall be adjusted to include the actual amount 
of aids not paid in 1992 under this section provided that the 
county auditor reduces property taxes payable in 1993 by this 
amount. 
    Sec. 59.  Laws 1991, chapter 291, article 1, section 65, is 
amended to read: 
    Sec. 65.  [EFFECTIVE DATE.] 
    Sections 1, 4, 28, 35, 36, 57, 58, and 62 are effective the 
day following final enactment. 
    Sections 2, 3, 11, 15 to 22, 24, 26 to 28, 27, 30, 37 to 
49, and 63 are effective for taxes levied in 1991, payable in 
1992, and thereafter.  
    Sections 5 and 6 are effective for referenda held after 
November 1, 1992, for taxes payable in 1993 and thereafter. 
    Sections 7 and 52 are effective July 1, 1991. 
    Sections 8, 9 and 31 are effective for appeals filed after 
July 31, 1991.  
    Section 10 is effective only for taxes payable in 1992, 
1993, 1994, and 1995. 
    Sections 12 and 14 are effective for taxes payable in 1993 
and thereafter, except the deletion of the language "or any 
single contiguous lot fronting on the same street" in sections 
12 and 14 shall be effective for taxes payable in 1992 and 
thereafter. 
    Section 13 is effective the day following final enactment 
and applies to real property acquired after December 31, 1990. 
    Sections 23 and 25 are effective for taxes payable in 1993 
and thereafter.  
    Section 29 is effective for referenda for taxes payable in 
1993 and thereafter, except that any city or county that 
conducted a referendum prior to May 1, 1992, and had publicly 
advertised to its property owners using levy amounts that, if 
adopted, reflect net tax capacity, is exempt from this provision 
with regards to that referendum.  If the city or county intends 
to levy the tax on net tax capacity under section 29, it must 
certify to the commissioner of revenue the information necessary 
for the commissioner to determine that the requirements of this 
exception have been met.  
    Sections 32 and 33 are effective for taxes deemed 
delinquent after December 31, 1991.  
    Sections 50 and 51 are effective for aids payable in 1991 
and thereafter. 
    Section 53 is effective the day after the governing body of 
the city of Minneapolis complies with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Section 54 is effective for the 1991 and 1992 assessment 
year. 
    Section 59 is effective the day after the governing body of 
independent school district No. 325, Lakefield, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Section 60 is effective the day after the governing body of 
independent school district No. 77, Mankato, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Section 61 is effective the day after the governing body of 
independent school district No. 284, Wayzata, complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 60.  [REPEALER.] 
    (a) Minnesota Statutes 1991 Supplement, section 273.124, 
subdivision 15, is repealed. 
    (b) Minnesota Statutes 1991 Supplement, section 271.04, 
subdivision 2, is repealed. 
    (c) Laws 1991, chapter 291, article 15, section 9, is 
repealed. 
    Sec. 61.  [EFFECTIVE DATES.] 
    Sections 2 to 4, 9, 13, 17, 18, 20, 25, 35, 36, 40, and 60, 
paragraph (a), are effective for property taxes levied in 1992, 
payable in 1993, and thereafter. 
    Section 5 is effective beginning with the 1992 sales ratio 
study. 
    Sections 6, 10, 11, 15, 16, 31, 45, and 46 are effective 
for property taxes levied in 1993, payable in 1994, and 
thereafter. 
    Sections 7, 8, 24 and 60, paragraph (b), are effective for 
hearings scheduled by the court after January 1, 1993. 
    Section 14 is effective the day following final enactment 
and applies to property taxes payable in 1993 and thereafter by 
property for which leasehold cooperative status had been claimed 
before or after the effective date. 
    Section 18 is effective for assessment year 1992 and 
thereafter, for taxes payable in 1993 and thereafter, provided 
that for the assessment year 1992, for taxes payable in 1993, 
the January 15, 1992, certification date in section 18 is 
extended to June 15, 1992. 
    Section 22 is effective for referenda for taxes payable in 
1993 and thereafter. 
    Sections 27 to 29, 39, 43, 49 to 51, 54 to 58 and 60, 
paragraph (c), are effective the day following final enactment. 
    Section 34 is effective for abatements granted in 1992 and 
thereafter. 
    Sections 41 and 42 are effective for collections made July 
1, 1992, and thereafter. 
    Section 59 is effective the day following final enactment 
and applies as provided in that section. 

                                ARTICLE 3
PROPOSED AND FINAL TAX NOTICES
    Section 1.  Minnesota Statutes 1991 Supplement, section 
273.1398, subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENT.] The commissioner shall certify the 
aids provided in subdivisions 2, 2b, 3, and 5 before 
December September 1, 1989, and October 1 thereafter of the year 
preceding the distribution year to the county auditor of the 
affected local government.  The aids provided in subdivisions 2, 
2b, 3, and 5 must be paid to local governments other than school 
districts at the times provided in section 477A.015 for payment 
of local government aid to taxing jurisdictions, except that the 
first one-half payment of disparity reduction aid provided in 
subdivision 3 must be paid on or before August 31.  The 
disparity reduction credit provided in subdivision 4 must be 
paid to taxing jurisdictions other than school districts at the 
time provided in section 473H.10, subdivision 3.  Aids and 
credit reimbursements to school districts must be certified to 
the commissioner of education and paid under section 273.1392.  
Except for education districts and secondary cooperatives that 
receive revenue according to section 124.2721 or 124.575, 
payment shall not be made to any taxing jurisdiction that has 
ceased to levy a property tax.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, 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 1 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 1 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.  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 136D, joint powers boards established under sections 
124.491 to 124.495, and common school districts No. 323, 
Franconia, and No. 815, Prinsburg, are special taxing districts 
for purposes of this section.  
    Sec. 3.  Minnesota Statutes 1990, section 275.065, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [OVERLAPPING JURISDICTIONS.] In the case of a 
taxing authority lying in two or more counties, the home county 
auditor shall certify the proposed levy and the proposed local 
tax rate to the other county auditor by September 20 for taxes 
levied in 1990, and thereafter, and the proposed local tax rate 
by September 5 for taxes levied in 1991, and thereafter, for 
counties containing a city of the first class.  The home county 
auditor must estimate the levy or rate in preparing the notices 
required in subdivision 3, if the other county has not certified 
the appropriate information.  If requested by the home county 
auditor, the other county auditor must furnish an estimate to 
the home county auditor. 
    Sec. 4.  Minnesota Statutes 1991 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 on or before 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 as 
required in paragraph (d) or (e) and, for a town, the amount of 
its final levy.  It must clearly state that each taxing 
authority, other than a town or special taxing district, will 
hold a public meeting to receive public testimony on the 
proposed budget and proposed or final property tax levy, or, in 
case of a school district, on the current budget and proposed 
property tax levy.  It must clearly state the time and place of 
each taxing authority's meeting and an address where comments 
will be received by mail.  
    (d) Except as provided in paragraph (e), for taxes levied 
in 1990 and 1991, the notice must state by county, city or town, 
and school district:  
    (1) the total proposed or, for a town, final property tax 
levy for taxes payable the following year after reduction for 
state aid; 
    (2) the percentage increase or decrease from the actual 
property tax levy for taxes payable in the current year; and 
    (3) for counties, cities, and towns, the increase or 
decrease in population from the second previous calendar year to 
the immediately prior calendar year, and for school districts, 
the increase or decrease in the number of pupils in average 
daily membership from the current school year to the immediately 
following school year as determined by the commissioner of 
education.  The data used to determine the increase or decrease 
in population under this clause must be the data used for 
purposes of the population adjustment to the levy limit base of 
the county, city, or town under section 275.51, subdivision 6. 
    For notices which are not parcel-specific, the notice must 
also state a total percentage increase or decrease in the 
proposed levy, relative to the actual property tax levy for 
taxes payable in the current year for the county, city or town, 
and school district.  The county auditor shall compute the total 
percentage increase or decrease as an average percentage change 
weighted in proportion to each taxing jurisdiction's proportion 
of the total levy. 
    For purposes of this paragraph, "proposed property taxes 
after reduction for state aid" means the taxing authority's levy 
certified under section 275.07, subdivision 1.  
    (e) In the case of a county containing a city of the first 
class, or taxing authority lying wholly within a county or 
counties containing a city of the first class, for taxes levied 
in 1991, and thereafter, and for all counties for taxes levied 
in 1992 and thereafter, The notice must state for each parcel: 
    (1) the market value of the property as defined under 
section 272.03, subdivision 8, for property taxes payable in the 
following year and for taxes payable the current year; and, in 
the case of residential property, whether the property is 
classified as homestead or nonhomestead.  The notice must 
clearly inform taxpayers of the years to which the market values 
apply and that the values are final values; 
    (2) by county, city or town, school district, the sum of 
the special taxing districts, and as a total of the taxing 
authorities, including special taxing districts, the proposed 
or, for a town, final net tax on the property for taxes payable 
the following year and the actual tax for taxes payable the 
current year.  In the case of a parcel where tax increment or 
the fiscal disparities areawide tax applies, the proposed tax 
levy on the captured value or the proposed tax levy on the tax 
capacity subject to the areawide tax must each be stated 
separately and not included in the sum of the special taxing 
districts; and 
    (3) the increase or decrease in the amounts in clause (2) 
from taxes payable in the current year to proposed or, for a 
town, final taxes payable the following year, expressed as a 
dollar amount and as a percentage. 
    (f) (e) The notice must clearly state that the proposed or 
final taxes do not include the following: 
    (1) special assessments; 
    (2) levies approved by the voters after the date the 
proposed taxes are certified, including bond referenda, school 
district levy referenda, and levy limit increase referenda; 
    (3) amounts necessary to pay cleanup or other costs due to 
a natural disaster occurring after the date the proposed taxes 
are certified; 
    (4) amounts necessary to pay tort judgments against the 
taxing authority that become final after the date the proposed 
taxes are certified; and 
    (5) any additional amount levied in lieu of a local sales 
and use tax, unless this amount is included in the proposed or 
final taxes. 
    (g) (f) Except as provided in subdivision 7, failure of the 
county auditor to prepare or the county treasurer to deliver the 
notice as required in this section does not invalidate the 
proposed or final tax levy or the taxes payable pursuant to the 
tax levy. 
     (g) If the notice the taxpayer receives under this section 
lists the property as nonhomestead and the homeowner provides 
satisfactory documentation to the county assessor that the 
property is owned and has been used as the owner's homestead 
prior to June 1 of that year, the assessor shall reclassify the 
property to homestead for taxes payable in the following year. 
    (h) In the case of class 4 residential property used as a 
residence for lease or rental periods of 30 days or more, the 
taxpayer must either: 
    (1) mail or deliver a copy of the notice of proposed 
property taxes to each tenant, renter, or lessee; or 
    (2) post a copy of the notice in a conspicuous place on the 
premises of the property.  
    The notice must be mailed or posted by the taxpayer by 
November 13 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. 5.  Minnesota Statutes 1990, section 275.065, 
subdivision 4, is amended to read: 
    Subd. 4.  [COSTS.] If the reasonable cost of the county 
auditor's services and the cost of preparing and mailing the 
notice required in this section exceed the amount distributed to 
the county by the commissioner of revenue to administer this 
section, the taxing authority must reimburse the county for the 
excess cost.  The excess cost must be apportioned between taxing 
jurisdictions as follows:  
    (1) one-third is allocated to the county; 
    (2) one-third is allocated to cities and towns within the 
county; and 
    (3) one-third is allocated to school districts within the 
county.  
    The amounts in clause (2) must be further apportioned among 
the cities and towns in the proportion that the population 
number of parcels in the city and town bears to the population 
number of parcels in all the cities and towns within the 
county.  The amount in clause (3) must be further apportioned 
among the school districts in the proportion that the number 
of pupils parcels in the school district bears to the number 
of pupils parcels in all school districts within the county. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
275.065, subdivision 5a, is amended to read: 
    Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
population of more than 1,000, county, or school district shall 
advertise in a newspaper a notice of its intent to adopt a 
budget and property tax levy or, in the case of a school 
district, to review its current budget and proposed property 
taxes payable in the following year, at a public hearing.  The 
notice must be published not less than two business days nor 
more than six business days before the hearing. 
    For a city that has a population of more than 1,000 but 
less than 2,500 the advertisement must be at least one-eighth 
page in size of a standard-size or a tabloid-size newspaper, and.
The headlines first headline in the advertisement stating the 
notice of proposed property taxes and the notice of public 
hearing must be in a type no smaller than 14-point, and the 
second headline must be in a type no smaller than 12-point.  The 
text of the advertisement must be no smaller than 12-point 
10-point, except that the property tax amounts and percentages 
may be in 10-point 9-point type. 
    For a city that has a population of 2,500 or more, a county 
or a school district, the advertisement must be at least 
one-quarter page in size of a standard-size or a tabloid-size 
newspaper, and the headlines first headline in the advertisement 
stating the notice of proposed property taxes and the notice of 
public hearing must be in a type no smaller than 30-point, and 
the second headline must be in a type no smaller than 22-point.  
The text of the advertisement must be no smaller than 22-point 
14-point, except that the property tax amounts and percentages 
may be in 14-point 12-point type. 
    The advertisement must not be placed in the part of the 
newspaper where legal notices and classified advertisements 
appear.  The advertisement must be published in an official 
newspaper of general circulation in the taxing authority.  The 
newspaper selected must be one of general interest and 
readership in the community, and not one of limited subject 
matter.  The advertisement must appear in a newspaper that is 
published at least once per week.  
    (b) The advertisement must be in the following form, except 
that the notice for a school district may include references to 
the current budget in regard to proposed property taxes. 

                               "NOTICE OF

                         PROPOSED PROPERTY TAXES

               (City/County/School District) of .........
The governing body of ........ will soon hold budget hearings 
and vote on the property taxes for (city/county services that 
will be provided in 199_/school district services that will be 
provided in 199_ and 199_). 
The property tax amounts below compare current 
(city/county/school district) property taxes and the property 
taxes that would be collected in 199_ if the budget now being 
considered is approved. 
199_                Proposed 199_       199_ Increase
Property Taxes      Property Taxes      or Decrease

$........           $........              .....%


                        NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing 
and express their opinions on the proposed (city/county/school 
district) budget and property taxes, or in the case of a school 
district, its current budget and proposed property taxes, 
payable in the following year.  The hearing will be held on 
(Month/Day/Year) at (Time) at (Location, Address). 
A continuation of the hearing, if necessary, will be held on 
(Month/Day/Year) at (Time) at (Location, Address). 
Written comments may be directed to (Address)." 
    (c) A city with a population of 1,000 or less must 
advertise by posted notice as defined in section 645.12, 
subdivision 1.  The advertisement must be posted at the time 
provided in paragraph (a).  It must be in the form required in 
paragraph (b). 
    (d) For purposes of this subdivision, the population of a 
city is the most recent population as determined by the state 
demographer under section 116K.04, subdivision 4 4A.02. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
275.065, subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 15 29 and December 20, the governing bodies of 
the city and county shall each hold a public hearing to adopt 
its final budget and property tax levy for taxes payable in the 
following year, and the governing body of the school district 
shall hold a public hearing to review its current budget and 
adopt its property tax levy for taxes payable in the following 
year.  
    At the hearing, the taxing authority, other than a school 
district, may amend the proposed budget and property tax levy 
and must adopt a final budget and property tax levy, and the 
school district may amend the proposed property tax levy and 
must adopt a final property tax levy.  
    The property tax levy certified under section 275.07 by a 
city, county, 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, or 124B.03, subdivision 
2, after the proposed levy was certified; 
    (2) the amount of a city or county levy approved by the 
voters under section 275.58 after the proposed levy was 
certified; 
    (3) the amount of a levy to pay principal and interest on 
bonds issued or approved by the voters under section 475.58 
after the proposed levy was certified; 
     (4) the amount of a levy to pay costs due to a natural 
disaster occurring after the proposed levy was certified, if 
that amount is approved by the commissioner of revenue under 
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 revenue or the 
commissioner of education after the proposed levy was certified; 
and 
    (7) if not included in the certified levy, any additional 
amount levied pursuant to section 275.51, subdivision 7, 
paragraph (b). 
    At the hearing the percentage increase in property taxes 
proposed by the taxing authority, if any, and the specific 
purposes for which property tax revenues are being increased 
must be discussed.  During the discussion, the governing body 
shall hear comments regarding a proposed increase and explain 
the reasons for the proposed increase.  The public shall be 
allowed to speak and to ask questions prior to adoption of any 
measures by the governing body.  The governing body, other than 
the governing body of a school district, shall adopt its final 
property tax levy prior to adopting its final budget. 
    If the hearing is not completed on its scheduled date, the 
taxing authority must announce, prior to adjournment of the 
hearing, the date, time, and place for the continuation of the 
hearing.  The continued hearing must be held at least five 
business days but no more than 14 business days after the 
original hearing. 
    The hearing must be held after 5:00 p.m. if scheduled on a 
day other than Saturday.  No hearing may be held on a Sunday.  
The governing body of a county shall hold its hearing on the 
first Tuesday in December each year.  The county auditor shall 
provide for the coordination of hearing dates for all taxing 
authorities cities and school districts within the county. 
    By August 1, the county auditor shall notify the clerk of 
each school district within the county of the dates that the 
county board has designated for its hearing and any continuation 
under subdivision 3.  By August 15, each school board shall 
certify to the county auditors of the counties in which the 
school district is located the dates on which it elects to hold 
its hearings and any continuations under subdivision 3.  If a 
school board does not certify the dates by August 15, the 
auditor will assign the hearing date.  The dates elected or 
assigned must not conflict with the county hearing dates.  By 
August 20, the county auditor shall notify the clerks of the 
cities within the county of the dates on which the county and 
school 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 under subdivision 3.  The city must not 
select dates that conflict with the county hearing dates or with 
those elected by or assigned to the counties and school 
districts in which the city is located.  
    The county hearing dates so elected or assigned and the 
city 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.  
    Sec. 8.  Minnesota Statutes 1990, section 275.125, 
subdivision 10, is amended to read: 
    Subd. 10.  [CERTIFICATION OF LEVY LIMITATIONS.] By August 
15 September 1, the commissioner shall notify the school 
districts of their levy limits.  The commissioner shall certify 
to the county auditors the levy limits for all school districts 
headquartered in the respective counties together with 
adjustments for errors in levies not penalized pursuant to 
subdivision 15 as well as adjustments to final pupil unit counts.
    A school district may require the commissioner to review 
the certification and to present evidence in support of 
modification of the certification. 
    The county auditor shall reduce levies for any excess of 
levies over levy limitations pursuant to section 275.16.  Such 
reduction in excess levies may, at the discretion of the school 
district, be spread over two calendar years. 
    Sec. 9.  [REPEALER.] 
    Minnesota Statutes 1990, section 275.065, subdivision 1b, 
is repealed. 
    Sec. 10.  [EFFECTIVE DATE.] 
    Sections 2 to 9 are effective for taxes levied in 1992, 
payable in 1993, and thereafter.  Section 1 is effective for 
aids paid in 1993 and thereafter. 

                               ARTICLE 4 
PROPERTY TAXES:  ADMINISTRATIVE AND TECHNICAL 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
124A.23, subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
commissioner of revenue shall establish the general education 
tax rate and certify it to the commissioner of education by July 
1 of each year for levies payable in the following year.  The 
general education tax capacity rate shall be a rate, rounded up 
to the nearest tenth of a percent, that, when applied to the 
adjusted net tax capacity for all districts, raises the amount 
specified in this subdivision.  The general education tax rate 
shall be the rate that raises $916,000,000 for fiscal year 1993 
and $961,800,000 for fiscal year 1994 and later fiscal years.  
The general education tax rate certified by the commissioner of 
revenue may not be changed due to changes or corrections made to 
a district's adjusted net tax capacity after the tax rate has 
been certified established.  
    Sec. 2.  Minnesota Statutes 1990, section 270.075, 
subdivision 1, is amended to read: 
    Subdivision 1.  The commissioner shall determine the rate 
of tax to be levied and collected against the net tax capacity 
as determined pursuant to section 270.074, subdivision 2, to 
generate revenues of $7,500,000 from taxes levied in assessment 
year 1987 and payable in 1988 and revenues of $7,900,000 from 
taxes levied in 1988 and payable in 1989.  Thereafter the 
legislature shall annually establish the amount of revenue to be 
generated from a tax on sufficient to fund the airflight 
property tax portion of each year's state airport fund 
appropriation, as certified to the commissioner by the 
commissioner of transportation.  The property tax portion of the 
state airport fund appropriation is the difference between the 
total fund appropriation and the estimated total fund revenues 
from other sources for the state fiscal year in which the tax is 
payable.  If a levy amount has not been certified by September 1 
of a levy year, the commissioner shall use the last previous 
certified amount to determine the rate of tax. 
    Sec. 3.  Minnesota Statutes 1990, section 273.1104, 
subdivision 1, is amended to read: 
    Subdivision 1.  The term value as applied to iron ore in 
sections 273.165, subdivision 2, and 273.13, subdivision 31, 
shall be deemed to be three times the present value of future 
income or the minimum value as established by the commissioner 
notwithstanding the provisions of section 273.11.  The present 
value of future income shall be determined by the commissioner 
of revenue in accordance with professionally recognized mineral 
valuation practice and procedure.  Nothing contained herein 
shall be construed as requiring any change in the method of 
determining present value of iron ore utilized by the 
commissioner prior to the enactment hereof or as limiting any 
remedy presently available to the taxpayer in connection with 
the commissioner's determination of present value, or precluding 
the commissioner from making subsequent changes in the present 
worth formula. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
273.13, subdivision 25, as amended by Laws 1992, chapter 363, 
article 1, section 12, subdivision 1, is amended to read: 
    Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
estate containing four or more units and used or held for use by 
the owner or by the tenants or lessees of the owner as a 
residence for rental periods of 30 days or more.  Class 4a also 
includes hospitals licensed under sections 144.50 to 144.56, 
other than hospitals exempt under section 272.02, and contiguous 
property used for hospital purposes, without regard to whether 
the property has been platted or subdivided.  Class 4a property 
has a class rate of 3.5 percent of market value for taxes 
payable in 1992, and 3.4 percent of market value for taxes 
payable in 1993 and thereafter. 
    (b) Class 4b includes: 
    (1) residential real estate containing less than four 
units, other than seasonal residential, and recreational; 
    (2) manufactured homes not classified under any other 
provision; 
    (3) a dwelling, garage, and surrounding one acre of 
property on a nonhomestead farm classified under subdivision 23, 
paragraph (b).  
     Class 4b property has a class rate of 2.8 percent of market 
value for taxes payable in 1992, 2.5 percent of market value for 
taxes payable in 1993, and 2.3 percent of market value for taxes 
payable in 1994 and thereafter. 
     (c) Class 4c property includes: 
     (1) a structure that is:  
    (i) situated on real property that is used for housing for 
the elderly or for low- and moderate-income families as defined 
in Title II, as amended through December 31, 1990, of the 
National Housing Act or the Minnesota housing finance agency law 
of 1971, as amended, or rules promulgated by the agency and 
financed by a direct federal loan or federally insured loan made 
pursuant to Title II of the act; or 
    (ii) situated on real property that is used for housing the 
elderly or for low- and moderate-income families as defined by 
the Minnesota housing finance agency law of 1971, as amended, or 
rules adopted by the agency pursuant thereto and financed by a 
loan made by the Minnesota housing finance agency pursuant to 
the provisions of the act.  
    This clause applies only to property of a nonprofit or 
limited dividend entity.  Property is classified as class 4c 
under this clause for 15 years from the date of the completion 
of the original construction or substantial rehabilitation, or 
for the original term of the loan.  
    (2) a structure that is: 
    (i) situated upon real property that is used for housing 
lower income families or elderly or handicapped persons, as 
defined in section 8 of the United States Housing Act of 1937, 
as amended; and 
    (ii) owned by an entity which has entered into a housing 
assistance payments contract under section 8 which provides 
assistance for 100 percent of the dwelling units in the 
structure, other than dwelling units intended for management or 
maintenance personnel.  Property is classified as class 4c under 
this clause for the term of the housing assistance payments 
contract, including all renewals, or for the term of its 
permanent financing, whichever is shorter; and 
     (3) a qualified low-income building as defined in section 
42(c)(2) of the Internal Revenue Code of 1986, as amended 
through December 31, 1990, that (i) receives a low-income 
housing credit under section 42 of the Internal Revenue Code of 
1986, as amended through December 31, 1990; or (ii) meets the 
requirements of that section and receives public financing, 
except financing provided under sections 469.174 to 469.179, 
which contains terms restricting the rents; or (iii) meets the 
requirements of section 273.1317.  Classification pursuant to 
this clause is limited to a term of 15 years. 
     For all properties described in clauses (1), (2), and (3) 
and in paragraph (d), the market value determined by the 
assessor must be based on the normal approach to value using 
normal unrestricted rents unless the owner of the property 
elects to have the property assessed under Laws 1991, chapter 
291, article 1, section 55.  If the owner of the property elects 
to have the market value determined on the basis of the actual 
restricted rents, as provided in Laws 1991, chapter 291, article 
1, section 55, the property will be assessed at the rate 
provided for class 4a or class 4b property, as appropriate.  
Properties described in clauses (1)(ii), (3), and (4) may apply 
to the assessor for valuation under Laws 1991, chapter 291, 
article 1, section 55.  The land on which these structures are 
situated has the class rate given in paragraph (b) if the 
structure contains fewer than four units, and the class rate 
given in paragraph (a) if the structure contains four or more 
units.  This clause applies only to the property of a nonprofit 
or limited dividend entity.  
     (4) a parcel of land, not to exceed one acre, and its 
improvements or a parcel of unimproved land, not to exceed one 
acre, if it is owned by a neighborhood real estate trust and at 
least 60 percent of the dwelling units, if any, on all land 
owned by the trust are leased to or occupied by lower income 
families or individuals.  This clause does not apply to any 
portion of the land or improvements used for nonresidential 
purposes.  For purposes of this clause, a lower income family is 
a family with an income that does not exceed 65 percent of the 
median family income for the area, and a lower income individual 
is an individual whose income does not exceed 65 percent of the 
median individual income for the area, as determined by the 
United States Secretary of Housing and Urban Development.  For 
purposes of this clause, "neighborhood real estate trust" means 
an entity which is certified by the governing body of the 
municipality in which it is located to have the following 
characteristics: 
      (a) it is a nonprofit corporation organized under chapter 
317A; 
      (b) it has as its principal purpose providing housing for 
lower income families in a specific geographic community 
designated in its articles or bylaws; 
      (c) it limits membership with voting rights to residents of 
the designated community; and 
      (d) it has a board of directors consisting of at least 
seven directors, 60 percent of whom are members with voting 
rights and, to the extent feasible, 25 percent of whom are 
elected by resident members of buildings owned by the trust; and 
      (5) except as provided in subdivision 22, paragraph (c), 
real property devoted to temporary and seasonal residential 
occupancy for recreation purposes, including real property 
devoted to temporary and seasonal residential occupancy for 
recreation purposes and not devoted to commercial purposes for 
more than 250 days in the year preceding the year of 
assessment.  For purposes of this clause, property is devoted to 
a commercial purpose on a specific day if any portion of the 
property is used, or available for use 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; 
     (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 
nonintoxicating malt liquor establishment licensed under chapter 
340A, a restaurant open to the public, bowling alley, a retail 
store, gambling conducted by organizations licensed under 
chapter 349, an insurance business, or office or other space 
leased or rented to a lessee who conducts a for-profit 
enterprise on the premises.  Any portion of the property which 
is used for revenue-producing activities for more than six days 
in the calendar year preceding the year of assessment shall be 
assessed as class 3a.  The use of the property for social events 
open exclusively to members and their guests for periods of less 
than 24 hours, when an admission is not charged nor any revenues 
are received by the organization shall not be considered a 
revenue-producing activity; 
    (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 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.  
    (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.  Classification under this clause 
is only available to property of a nonprofit or limited dividend 
entity. 
     (2) For taxes payable in 1992, 1993 and 1994, only, 
buildings and appurtenances, together with the land upon which 
they are located, leased by the occupant under the community 
lending model lease-purchase mortgage loan program administered 
by the Federal National Mortgage Association, provided the 
occupant's income is no greater than 60 percent of the county or 
area median income, adjusted for family size and the building 
consists of existing single family or duplex housing.  The lease 
agreement must provide for a portion of the lease payment to be 
escrowed as a nonrefundable down payment on the housing.  To 
qualify under this clause, the taxpayer must apply to the county 
assessor by May 30 of each year.  The application must be 
accompanied by an affidavit or other proof required by the 
assessor to determine qualification under this clause. 
     (3) For taxes payable in 1992, 1993 and 1994, only, 
federally acquired buildings under four units and appurtenances, 
together with the land upon which they are located that is 
leased to a nonprofit corporation organized under chapter 317A 
that qualifies for tax exempt status under United States Code, 
title 26, section 501(c), or a housing and redevelopment 
authority authorized under sections 469.001 to 469.047; the 
purpose of the lease must be to allow the nonprofit corporation 
to provide transitional housing for homeless persons under the 
program established in Code of Federal Regulations, title 55, 
section 55 Federal Register 49489.  As used in this clause, 
"transitional housing" has the meaning given in section 268.38, 
subdivision 1, except that the two-year restriction does not 
apply.  If the property is purchased from the federal government 
by the nonprofit corporation for the purpose of continuing to 
provide transitional housing after the expiration of the lease, 
the property shall continue to be eligible for this 
classification.  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 county assessor to determine qualification under 
this clause.  Property qualifying under this clause in 1992, 
1993, or 1994 continues to receive a two percent class rate 
until the five-year lease has expired provided that the property 
continues to be used for the purposes as described in this 
clause. 
    Class 4d property has a class rate of two percent of market 
value. 
    (e) Residential rental property that would otherwise be 
assessed as class 4 property under paragraph (a); paragraph (b), 
clauses (1) and (3); paragraph (c), clause (1), (2), (3), or 
(4), is assessed at the class rate applicable to it under 
Minnesota Statutes 1988, section 273.13, if it is found to be a 
substandard building under section 273.1316.  Residential rental 
property that would otherwise be assessed as class 4 property 
under paragraph (d) is assessed at 2.3 percent of market value 
if it is found to be a substandard building under section 
273.1316. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
273.13, subdivision 33, is amended to read: 
    Subd. 33.  [CLASSIFICATION OF UNIMPROVED PROPERTY.] (a) 
Except as provided in paragraph (b), real property that is not 
improved with a structure and that is not used as part of a 
commercial or industrial activity must be classified and 
assessed according to its highest and best use permitted under 
the local zoning ordinance.  If the ordinance permits more than 
one use, the land must be classified and assessed according to 
the highest and best use permitted under the ordinance.  If no 
such ordinance exists, the assessor shall consider the most 
likely potential use of the vacant unimproved land based upon 
the use made of surrounding land or land in proximity to 
the vacant unimproved land. 
    (b) Real property that is not improved with a structure and 
is in commercial, industrial, or agricultural use under section 
273.13, must be classified according to its actual use. 
    Sec. 6.  Minnesota Statutes 1990, section 273.135, 
subdivision 2, is amended to read: 
    Subd. 2.  For taxes payable in 1990 and subsequent years, 
The amount of the reduction authorized by subdivision 1 shall be:
    (a) In the case of property located within the boundaries 
of a municipality which meets the qualifications prescribed in 
section 273.134, 66 percent of the tax, provided that the 
reduction shall not exceed the maximum amounts specified in 
clause (c), and shall not exceed an amount sufficient to reduce 
the effective tax rate on each parcel of property to the product 
of 95 percent of the base year effective tax rate multiplied by 
the ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction for each homestead 
resulting from this credit be less than $10.  
     (b) In the case of property located within the boundaries 
of a school district which qualifies as a tax relief area but 
which is outside the boundaries of a municipality which meets 
the qualifications prescribed in section 273.134, 57 percent of 
the tax, provided that the reduction shall not exceed the 
maximum amounts specified in clause (c), and shall not exceed an 
amount sufficient to reduce the effective tax rate on each 
parcel of property to the product of 95 percent of the base year 
effective tax rate multiplied by the ratio of the current year's 
tax rate to the payable 1989 tax rate.  In no case will the 
reduction for each homestead resulting from this credit be less 
than $10.  
     (c) The maximum reduction of the tax is $225.40 on property 
described in clause (a) and $200.10 on property described in 
clause (b), for taxes payable in 1985.  These maximum amounts 
shall increase by $15 times the quantity one minus the homestead 
credit equivalency percentage per year for taxes payable in 1986 
and subsequent years.  
    For the purposes of this subdivision, "homestead credit 
equivalency percentage" means one minus the ratio of the net 
class rate to the gross class rate applicable to the first 
$68,000 $72,000 of the market value of residential homesteads, 
"effective tax rate" means tax divided by the market value of a 
property, and the "base year effective tax rate" means the 
payable 1988 tax on a property with an identical market value to 
that of the property receiving the credit in the current year 
after the application of the credits payable under Minnesota 
Statutes 1988, section 273.13, subdivisions 22 and 23, and this 
section, divided by the market value of the property.  
    Sec. 7.  Minnesota Statutes 1990, section 273.1391, 
subdivision 2, is amended to read: 
    Subd. 2.  For taxes payable in 1990 and subsequent years, 
The amount of the reduction authorized by subdivision 1 shall be:
    (a) In the case of property located within a school 
district which does not meet the qualifications of section 
273.134 as a tax relief area, but which is located in a county 
with a population of less than 100,000 in which taconite is 
mined or quarried and wherein a school district is located which 
does meet the qualifications of a tax relief area, and provided 
that at least 90 percent of the area of the school district 
which does not meet the qualifications of section 273.134 lies 
within such county, 57 percent of the tax on qualified property 
located in the school district that does not meet the 
qualifications of section 273.134, provided that the amount of 
said reduction shall not exceed the maximum amounts specified in 
clause (c), and shall not exceed an amount sufficient to reduce 
the effective tax rate on each parcel of property to the product 
of 95 percent of the base year effective tax rate multiplied by 
the ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction for each homestead 
resulting from this credit be less than $10.  The reduction 
provided by this clause shall only be applicable to property 
located within the boundaries of the county described therein.  
    (b) In the case of property located within a school 
district which does not meet the qualifications of section 
273.134 as a tax relief area, but which is located in a school 
district in a county containing a city of the first class and a 
qualifying municipality, but not in a school district containing 
a city of the first class or adjacent to a school district 
containing a city of the first class unless the school district 
so adjacent contains a qualifying municipality, 57 percent of 
the tax, but not to exceed the maximums specified in clause (c), 
and shall not exceed an amount sufficient to reduce the 
effective tax rate on each parcel of property to the product of 
95 percent of the base year effective tax rate multiplied by the 
ratio of the current year's tax rate to the payable 1989 tax 
rate.  In no case will the reduction for each homestead 
resulting from this credit be less than $10. 
    (c) The maximum reduction of the tax is $200.10 for taxes 
payable in 1985.  This maximum amount shall increase by $15 
multiplied by the quantity one minus the homestead credit 
equivalency percentage per year for taxes payable in 1986 and 
subsequent years.  
    For the purposes of this subdivision, "homestead credit 
equivalency percentage" means one minus the ratio of the net 
class rate to the gross class rate applicable to the first 
$68,000 $72,000 of the market value of residential homesteads, 
and "effective tax rate" means tax divided by the market value 
of a property, and the "base year effective tax rate" means the 
payable 1988 tax on a property with an identical market value to 
that of the property receiving the credit in the current year 
after application of the credits payable under Minnesota 
Statutes 1988, section 273.13, subdivisions 22 and 23, and this 
section, divided by the market value of the property. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
273.1398, subdivision 7, is amended to read: 
    Subd. 7.  [APPROPRIATION.] An amount sufficient to pay the 
aids and credits provided under this section for school 
districts, intermediate school districts, or any group of school 
districts levying as a single taxing entity is annually 
appropriated from the general fund to the commissioner of 
revenue education. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
273.1399, is amended to read: 
    273.1399 [REDUCTION IN STATE TAX INCREMENT FINANCING AID.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the following terms have the meanings given. 
    (a) "Qualifying captured net tax capacity" means the 
following amounts:  
    (1) the captured net tax capacity of a new or the expanded 
part of an existing economic development or soils condition tax 
increment financing district, other than a qualified 
manufacturing district, for which certification was requested 
after April 30, 1990; 
    (2) the captured net tax capacity of a qualified 
manufacturing district, multiplied by the following percentage 
based on the number of years that have elapsed since 
the district was first certified (measured from January 2 
immediately preceding certification assessment year of the 
original net tax capacity).  In no case may the final amounts be 
less than zero or greater than the total captured net tax 
capacity of the district: 
        Number of Years        Percentage
               1                    0
               2                   20
               3                   40
               4                   60
               5                   80
               6 or more          100;
    (3) the captured net tax capacity of a new or the expanded 
part of an existing tax increment financing district, other than 
an economic development or soils condition district, for which 
certification was requested after April 30, 1990, multiplied by 
the following percentage based on the number of years that have 
elapsed since the district was first certified (measured from 
January 2 immediately preceding certification assessment year of 
the original net tax capacity).  In no case may the final 
amounts be less than zero or greater than the total captured net 
tax capacity of the district.  
         Number of     Renewal and     All other 
         years         Renovation      Districts
                       Districts
         0 to 5           0                0 
            6            12.5              6.25
            7            25               12.5 
            8            37.5             18.75 
            9            50               25 
           10            62.5             31.25 
           11            75               37.5 
           12            87.5             43.75 
           13            100              50 
           14            100              56.25 
           15            100              62.5 
           16            100              68.75 
           17            100              75 
           18            100              81.25 
           19            100              87.5 
           20            100              93.75 
           21 or more    100              100 
    In the case of a hazardous substance subdistrict, the 
number of years must be measured from the date of certification 
of the subdistrict for purposes of the additional captured net 
tax capacity resulting from the reduction in the subdistrict's 
or site's original net tax capacity.  
    (b) The terms defined in section 469.174 have the meanings 
given in that section. 
    (c) "Qualified manufacturing district" means an economic 
development district that qualifies under section 469.176, 
subdivision 4c, paragraph (a), without regard to clauses (2) and 
(4), for which certification was requested after June 30, 1991, 
located in a home rule charter or statutory city that (1) has a 
population under 10,000 according to the last federal census and 
(2) is wholly located outside of a metropolitan statistical area 
as determined by the United States Office of Management and 
Budget. 
    Subd. 2.  [REPORTING.] The county auditor shall calculate 
the qualifying captured net tax capacity amount for each 
municipal part of each school district in the county and report 
the amounts to the commissioner of revenue at the time and in 
the manner prescribed by the commissioner. 
    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, 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. 
    Subd. 4.  [EQUALIZATION FACTOR.] The amount of the 
reduction in state tax increment financing aid equals the amount 
determined under subdivision 3 less 
    (1) 75 percent of the excess, if any, of the amount 
determined under subdivision 3, over 
    (2) .05 times the municipality's net tax capacity, divided 
by the sales ratio.  
    Subd. 5.  [LOCAL GOVERNMENT AIDS; HOMESTEAD AND 
AGRICULTURAL AID CALCULATIONS.] (a) The reduction in state tax 
increment financing aid for a municipality must be deducted 
first from the local government aids to be paid to the 
municipality.  If the deduction exceeds the amount of the local 
government aid, the rest must be deducted from the homestead and 
agricultural credit aid to be paid to the municipality. 
    (b) The amount of qualifying captured net tax capacity must 
be included in adjusted net tax capacity for purposes of 
computing the local government aid of the municipality that 
approved the tax increment financing district. 
    Sec. 10.  Minnesota Statutes 1990, section 274.20, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] (a) The term "total gross 
taxes" means the total gross taxes levied on manufactured homes 
assessed pursuant to section 274.19 in a unique taxing 
jurisdiction as defined in section 273.1398 before reduction by 
any credits for taxes in 1989.  For aid payable in 1991 and 
subsequent years total gross taxes for 1989 shall be multiplied 
by the cost of living adjustment factor as defined in section 
273.1398. 
    (b) "Local tax rate" means the total local tax rate for 
taxes payable in 1989 within a unique taxing jurisdiction. 
    (c) "Total net tax capacity" means the net tax capacities 
as defined in section 273.1398 of all manufactured homes 
assessed pursuant to section 274.19 except the market value used 
shall be for the assessment one year prior to that in which aid 
is payable. 
    (d) "Subtraction factor" means the product of (i) a unique 
taxing jurisdiction's local tax rate; (ii) its total net tax 
capacity; and (iii) 0.9767.  "Current local tax rate" has the 
meaning given in section 273.1398, subdivision 1.  
    (b) "Growth adjustment factor" means the growth adjustment 
factor used in the calculation of homestead and agricultural 
credit aid for the payable year in which the manufactured home 
homestead and agricultural credit aid is payable.  
    (c) "Net tax capacity" means the product of (1) the 
appropriate net class rates for the year in which the aid is 
payable, except that for aids payable in 1993 the class rate 
applicable to class 4a shall be 3.5 percent; and the class rate 
applicable to class 4b shall be 3.5 percent; and for aid payable 
in 1994 the class rate applicable to class 4b shall be 2.4 
percent, and (2) estimated market values of manufactured homes 
assessed under section 274.19 for the assessment one year prior 
to that in which the aid is payable.  "Total net tax capacity" 
means the net tax capacities for all manufactured homes within 
the taxing district assessed under section 274.19.  Net tax 
capacity cannot be less than zero.  
    (d) "Net tax capacity adjustment" means (1) the total 
previous net tax capacity minus the total net tax capacity, 
multiplied by (2) the taxing district's current local tax rate.  
The net tax capacity adjustment cannot be less than zero.  
    (e) "Previous net tax capacity" means the product of the 
appropriate net class rates for the year previous to the year in 
which the aid is payable, and estimated market values of 
manufactured homes assessed under section 274.19 for the 
assessment one year prior to that in which the aid is payable.  
"Total previous net tax capacity" means the previous net tax 
capacities for all manufactured homes within the taxing district 
assessed under section 274.19.  Previous net tax capacity cannot 
be less than zero.  
    Sec. 11.  Minnesota Statutes 1990, section 274.20, 
subdivision 2, is amended to read: 
    Subd. 2.  [MANUFACTURED HOME HOMESTEAD AND AGRICULTURAL 
CREDIT AID.] For each calendar year, the manufactured home 
homestead and agricultural credit aid for each unique taxing 
jurisdiction equals total gross taxes minus the unique taxing 
jurisdiction's subtraction factor manufactured home homestead 
and agricultural credit aid determined under this subdivision 
for the preceding aid payable year times the growth adjustment 
factor for the jurisdiction plus the net tax capacity adjustment 
for the jurisdiction.  The aid shall be allocated to each local 
government levying taxes in the unique taxing jurisdiction in 
the proportion that the local government's gross taxes bear to 
the total gross taxes.  Except for education districts and 
secondary cooperatives that receive revenue according to section 
124.2721 or 124.575, payment will not be made to any taxing 
jurisdiction that has ceased to levy a property tax. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
275.125, subdivision 5, is amended to read: 
    Subd. 5.  [BASIC TRANSPORTATION LEVY.] Each year, a school 
district may levy for school transportation services an amount 
not to exceed the amount raised by the basic transportation tax 
rate times the adjusted net tax capacity of the district for the 
preceding year.  The commissioner of revenue education shall 
establish the basic transportation tax rate and certify it to 
the commissioner of education by July 1 of each year for levies 
payable in the following year.  The basic transportation tax 
rate shall be a rate, rounded up to the nearest hundredth of a 
percent, that, when applied to the adjusted net tax capacity of 
taxable property for all districts, raises the amount specified 
in this subdivision.  The basic transportation tax rate for 
transportation shall be the rate that raises $64,300,000 for 
fiscal year 1993 and $68,000,000 for fiscal year 1994 and 
subsequent fiscal years.  The basic transportation tax rate 
certified by the commissioner of revenue education must not be 
changed due to changes or corrections made to a district's 
adjusted net tax capacity after the tax rate has been certified. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
277.01, subdivision 1, is amended to read: 
    Subdivision 1.  [DUE DATES; PENALTY.] Except as provided in 
this subdivision and subdivision 3, all unpaid personal property 
taxes shall be deemed delinquent on May 16 next after they 
become due or 21 days after the postmark date on the envelope 
containing the property tax statement, whichever is later, and 
thereupon a penalty of eight percent shall attach and be charged 
upon all such taxes.  In the case of unpaid personal property 
taxes due and owing under section 272.01, subdivision 2, or 
273.19, the first half shall become delinquent if not paid 
before May 16 or 21 days after the postmark date on the envelope 
containing the property tax statement, whichever is later, and 
thereupon a penalty of eight percent shall attach on the unpaid 
first half; and the second half shall become delinquent if not 
paid before October 16, and thereupon a penalty of eight percent 
shall attach on the unpaid second half; penalties for unpaid tax 
on such property are imposed under section 279.01, subdivision 
1.  This section shall not apply to property taxed under section 
274.19, subdivision 8, paragraph (c). 
    A county may provide by resolution that in the case of a 
property owner that has multiple personal property tax 
statements with the aggregate taxes exceeding $50, payments may 
be made in installments as provided in this subdivision. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
278.01, subdivision 1, is amended to read: 
    Subdivision 1.  [DETERMINATION OF VALIDITY.] Any person 
having any estate, right, title, or interest in or lien upon any 
parcel of land, who claims that such property has been 
partially, unfairly, or unequally assessed in comparison with 
other property in the (1) city, or (2) county, or (3) in the 
case of a county containing a city of the first class, the 
portion of the county excluding the first class city, or that 
the parcel has been assessed at a valuation greater than its 
real or actual value, or that the tax levied against the same is 
illegal, in whole or in part, or has been paid, or that the 
property is exempt from the tax so levied, may have the validity 
of the claim, defense, or objection determined by the district 
court of the county in which the tax is levied or by the tax 
court by serving one copy of a petition for such determination 
upon the county auditor, one copy on the county attorney, one 
copy on the county treasurer, and three copies on the county 
assessor.  In counties where the office of county treasurer has 
been combined with the office of county auditor, the petitioner 
must serve the number of copies required by the county.  The 
petitioner must file the copies with proof of service, in the 
office of the court administrator of the district court before 
the 16th day of May of the year in which the tax becomes 
payable.  The county assessor shall immediately forward one copy 
of the petition to the appropriate governmental authority in a 
home rule charter or statutory city or town in which the 
property is located if that city or town employs its own 
certified assessor.  A copy of the petition shall also be 
forwarded by the assessor to the school board of the school 
district in which the property is located. 
    In counties where the office of county treasurer has been 
combined with the office of county auditor, the county may elect 
to require the petitioner to serve the number of copies as 
determined by the county.  The county assessor shall immediately 
forward one copy of the petition to the appropriate governmental 
authority in a home rule charter or statutory city or town in 
which the property is located if that city or town employs its 
own certified assessor.  A list of petitioned properties, 
including the name of the petitioner, the identification number 
of the property, and the estimated market value, shall be sent 
on or before the first day of July by the county 
auditor/treasurer to the school board of the school district in 
which the property is located. 
    For all counties, the petitioner must file the copies with 
proof of service, in the office of the court administrator of 
the district court before the 16th day of May of the year in 
which the tax becomes payable.  A petition for determination 
under this section may be transferred by the district court to 
the tax court.  An appeal may also be taken to the tax court 
under chapter 271 at any time following receipt of the valuation 
notice required by section 273.121 but prior to May 16 of the 
year in which the taxes are payable. 
    Sec. 15.  Minnesota Statutes 1990, section 278.02, is 
amended to read: 
    278.02 [PETITION MAY INCLUDE SEVERAL PARCELS.] 
    Such petition need not be in any particular form, but shall 
clearly identify the land involved, the assessment date, and 
shall set forth in concise language the claim, defense, or 
objection asserted.  No petition shall include more than one 
assessment date.  Several parcels of land in or upon which the 
petitioner has an estate, right, title, interest, or lien may be 
included in the same petition, but only if they are in the same 
city or town, except that contiguous property overlapping city 
or town boundaries may be included in one petition.  
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
279.03, subdivision 1a, is amended to read: 
    Subd. 1a.  [RATE AFTER DECEMBER 31, 1990.] (a) Except as 
provided in paragraph (b) or (c), interest on delinquent 
property taxes, penalties, and costs unpaid on or after January 
1, 1991, shall be payable at the per annum rate determined in 
section 270.75, subdivision 5.  If the rate so determined is 
less than ten percent, the rate of interest shall be ten 
percent.  The maximum per annum rate shall be 14 percent if the 
rate specified under section 270.75, subdivision 5, exceeds 14 
percent.  The rate shall be subject to change on January 1 of 
each year.  
    (b) If a person is the owner of one or more parcels of 
property on which taxes are delinquent, and the aggregate tax 
capacity of that property exceeds five percent of the total tax 
capacity of the school district in which the property is 
located, interest on the delinquent property taxes, penalties, 
and costs unpaid after January 1, 1992, shall be payable at 
twice the rate determined under paragraph (a) for the year. 
    (c) If a person is the owner of one or more parcels of 
property on which taxes are delinquent, and the delinquent taxes 
are more than 25 percent of the prior year's school district 
levy, interest on the delinquent property taxes, penalties, and 
costs unpaid after January 1, 1992, shall be payable at twice 
the rate determined under paragraph (a) for the year. 
    Sec. 17.  Minnesota Statutes 1990, section 279.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMPOSITION INTO ONE ITEM.] Delinquent 
taxes upon any parcel of real estate may be composed into one 
item or amount by confession of judgment at any time prior to 
the forfeiture of the parcel of land to the state for taxes, for 
the aggregate amount of all the taxes, costs, penalties, and 
interest accrued against the parcel, as hereinafter provided.  
Taxes upon property which, for the previous year's assessment, 
was classified as vacant land, mineral property, employment 
property, or commercial or industrial property shall not only be 
eligible to be composed into any confession of judgment pursuant 
to under this section except as provided in subdivision 
1a.  Delinquent taxes on unimproved land are eligible to be 
composed into a confession of judgment only if the land is 
classified as homestead, agricultural, or timberland in the 
previous year or is eligible for installment payment under 
subdivision 1a.  The entire parcel is eligible for the ten-year 
installment plan as provided in subdivision 2 if 25 percent or 
more of the market value of the parcel is eligible for 
confession of judgment under this subdivision. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
281.17, is amended to read: 
    281.17 [PERIOD FOR REDEMPTION.] 
    The period of redemption for all lands sold to the state at 
a tax judgment sale shall be three years from the date of sale 
to the state of Minnesota if the land is within an incorporated 
area unless it is:  (a) nonagricultural homesteaded land as 
defined in section 273.13, subdivision 22; (b) homesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (a); or (c) seasonal recreational land as defined in 
section 273.13, subdivision 22, paragraph (c), 23, paragraph 
(c), or 25, paragraph (c), clause (5), for which the period of 
redemption is five years from the date of sale to the state of 
Minnesota. 
    The period of redemption for homesteaded lands as defined 
in section 273.13, subdivision 22, located in a targeted 
neighborhood as defined in Laws 1987, chapter 386, article 6, 
section 4, and sold to the state at a tax judgment sale is three 
years from the date of sale.  The period of redemption for all 
lands located in a targeted neighborhood as defined in Laws 
1987, chapter 386, article 6, section 4, except homesteaded 
lands as defined in section 273.13, subdivision 22, and sold to 
the state at a tax judgment sale is one year from the date of 
sale. 
    The period of redemption for all other lands sold to the 
state at a tax judgment sale shall be five years from the date 
of sale, except that the period of redemption for nonhomesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (b), shall be two years from the date of sale if at 
that time that property is owned by a person who owns one or 
more parcels of property on which taxes are delinquent, and (1) 
the aggregate tax capacity of that property exceeds five percent 
of the total tax capacity of the school district in which the 
property is located, or (2) the delinquent taxes are more than 
25 percent of the prior year's school district levy. 
    Sec. 19.  Minnesota Statutes 1990, section 281.23, 
subdivision 8, is amended to read: 
    Subd. 8.  [COST.] The cost of giving notice, as provided by 
subdivisions 2, 3, 5, and 6, shall be paid by the county.  The 
county may recover costs incurred for posting, publishing, 
mailing, and serving the notice from the owner of the parcel 
that is the subject of the notice. 
    Sec. 20.  Minnesota Statutes 1990, section 282.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MONEY PLACED IN FUND.] The county auditor 
and county treasurer shall place all money received through the 
operation of sections 282.01 to 282.13 in a fund to be known as 
the forfeited tax sale fund and all disbursements and costs 
shall be charged against that fund, when allowed by the county 
board.  Members of the county board may be paid a per diem 
pursuant to section 375.055, subdivision 1, and reimbursed for 
their necessary expenses, and may receive mileage as fixed by 
law.  Compensation of a land commissioner and assistants, if a 
land commissioner is appointed, shall be in the amount 
determined by the county board.  The county auditor shall 
receive 50 cents for each certificate of sale, each contract for 
deed and each lease executed by the auditor, and, in counties 
where no land commissioner is appointed, additional annual 
compensation, not exceeding $300, as fixed by the county board.  
Compensation of any other clerical help that may be needed by 
the county auditor or land commissioner shall be in the amount 
determined by the county board.  All compensation provided for 
herein shall be in addition to other compensation allowed by 
law.  Fees so charged in addition to the fee imposed in section 
282.014 shall be included in the annual settlement by the county 
auditor as hereinafter provided.  On or before February 1 each 
year, the commissioner of revenue shall certify to the 
commissioner of finance, by counties, the total number of state 
deeds issued and reissued during the preceding calendar year for 
which such fees are charged and the total amount thereof.  On or 
before March 1 each year, each county shall remit to the 
commissioner of revenue, from the forfeited tax sale fund, the 
aggregate amount of the fees imposed by section 282.014 in the 
preceding calendar year.  The commissioner of revenue shall 
deposit the amounts received in the state treasury to the credit 
of the general fund.  When disbursements are made from the fund 
for repairs, refunds, expenses of actions to quiet title, or any 
other purpose which particularly affects specific parcels of 
forfeited lands, the amount of such disbursements shall be 
charged to the account of the taxing districts interested in 
such parcels.  The county auditor shall make an annual 
settlement of the net proceeds received from sales and rentals 
by the operation of sections 282.01 to 282.13, on the settlement 
day determined in section 276.09, for the preceding calendar 
year. 
    Sec. 21.  Minnesota Statutes 1990, section 282.36, is 
amended to read: 
    282.36 [FEES PAYABLE TO BY REPURCHASER.] 
    Any person repurchasing land after forfeiture to the state 
for nonpayment of taxes under the provisions of a repurchase law 
shall at the time the certificate of repurchase is issued and 
recorded by the county auditor or before receiving quitclaim 
deed pursuant thereto, pay to the county treasurer a fee of $3 
in an amount equal to the fee provided in section 282.014.  Fees 
so collected during any calendar year shall be credited to a 
special fund and, upon a warrant issued by the county auditor on 
or before March 1 of the year following, shall be remitted to 
the state treasurer commissioner of revenue and credited to the 
general fund.  The commissioner of revenue shall, on or before 
February 1 in each year, certify to the state treasurer 
commissioner of finance the number of deeds issued during the 
preceding calendar year to which these fees apply, showing by 
counties the number of deeds so issued and the total fees due 
therefor.  This section shall not apply to repurchases made 
under any law enacted prior to January 1, 1945. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
375.192, subdivision 2, is amended to read: 
    Subd. 2.  Upon written application by the owner of the any 
property, the county board may grant the reduction or abatement 
of estimated market valuation or taxes and of any costs, 
penalties, or interest on them as the board deems just and 
equitable and order the refund in whole or part of any taxes, 
costs, penalties, or interest which have been erroneously or 
unjustly paid.  The county board may also grant the abatement of 
penalties for taxes paid within 30 days of the due date, 
regardless of the classification of the property.  The 
application must include the social security number of the 
applicant.  The social security number is private data on 
individuals as defined by section 13.02, subdivision 12.  The 
application All applications must be approved by the county 
assessor, or, if the property is located in a city of the first 
or second class having a city assessor, by the city assessor, 
and by the county auditor before consideration by the county 
board.  If, except that the part of the application which is for 
the abatement of penalty or interest, the application must be 
approved by the county treasurer and county auditor.  Approval 
by the county or city assessor is not required for abatements of 
penalty or interest.  No reduction, abatement, or refund of any 
special assessments made or levied by any municipality for local 
improvements shall be made unless it is also approved by the 
board of review or similar taxing authority of the 
municipality.  Before taking action on any reduction or 
abatement where the reduction of taxes, costs, penalties, and 
interest exceed $10,000, the county board shall give 20 days' 
notice to the school board and the municipality in which the 
property is located.  The notice must describe the property 
involved, the actual amount of the reduction being sought, and 
the reason for the reduction.  If the school board or the 
municipality object to the granting of the reduction or 
abatement, the county board must refer the abatement or 
reduction to the commissioner of revenue with its 
recommendation.  The commissioner shall consider the abatement 
or reduction under section 270.07, subdivision 1.  
    An appeal may not be taken to the tax court from any order 
of the county board made in the exercise of the discretionary 
authority granted in this section.  
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
423A.02, subdivision 1a, is amended to read: 
    Subd. 1a.  [SUPPLEMENTARY AMORTIZATION STATE AID.] In 
addition to the amortization state aid under subdivision 1, 
there is a distribution of supplementary amortization state aid 
among those local police and salaried firefighters relief 
associations municipalities that receive amortization state aid 
under subdivision 1.  The amount of the distribution is that 
proportion of the appropriation that the unfunded actuarial 
accrued liability of each relief association bears to the total 
unfunded actuarial accrued liabilities of all relief 
associations as reported in the most recent December 31, 1983, 
actuarial valuations of the relief associations receiving 
amortization state aid under subdivision 1.  Money under this 
subdivision must be distributed to the relief associations at 
the same time that fire and police state aid is distributed 
under section 69.021. 
    Sec. 24.  Minnesota Statutes 1990, section 469.177, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [ORIGINAL LOCAL TAX RATE.] At the time of the 
initial certification of the original net tax capacity for a tax 
increment financing district, the county auditor shall certify 
the original local tax rate that applies to the district.  The 
original local tax rate is the sum of all the local tax rates 
that apply to a property in the district.  The local tax rate to 
be certified is the rate in effect for the same taxes payable 
year applicable to the tax capacity values certified as the 
district's original tax capacity.  If the total local tax rate 
applicable to properties in the tax increment financing district 
varies, the local tax rate must be computed by determining the 
average total local tax rate in the district, weighted on the 
basis of net tax capacity.  The resulting tax capacity rate is 
the original local tax rate for the life of the district.  
    Sec. 25.  Minnesota Statutes 1990, 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 year divided by the total 
market valuation of all taxable property located within the 
metropolitan transit taxing district for the previous assessment 
year. 
    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 0.01209 0.510 percent of 
market value 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 0.01813 0.765 percent of market value 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.  
    Sec. 26.  [1989 POPULATION AND NUMBER OF HOUSEHOLDS DATA 
USED IN 1992 AID CALCULATIONS.] 
    Notwithstanding any law to the contrary, for the 
calculation of payable 1992 homestead and agricultural credit 
aid under Minnesota Statutes, section 273.1398, the 1989 
population and number of households figure for governmental 
subdivisions not having annual estimates prepared by the 
metropolitan council is equal to the local unit's 1988 
population or number of households figure as prepared by the 
state demographer, plus one-half the increase or minus one-half 
the decrease when compared to the corresponding figures 
according to the 1990 federal census.  
    Sec. 27.  [INSTRUCTION TO REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall delete the first note after section 273.1398.  
The amendment to Minnesota Statutes, section 273.1398, 
subdivision 1, paragraph (j), made by Laws 1990, chapter 480, 
article 7, section 9, is of no effect. 
    Sec. 28.  [REPEALER.] 
    Minnesota Statutes 1990, section 278.01, subdivision 2, is 
repealed. 
    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 18 are effective for 
taxes becoming delinquent after December 31, 1991.  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. 

                                ARTICLE 5

                           LEVY LIMIT REPEAL 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
4A.02, is amended to read: 
    4A.02 [STATE DEMOGRAPHER.] 
    The director shall appoint a state demographer.  The 
demographer must be professionally competent in demography and 
must possess demonstrated ability based upon past performance.  
The demographer shall: 
    (1) continuously gather and develop demographic data 
relevant to the state; 
    (2) design and test methods of research and data 
collection; 
    (3) periodically prepare population projections for the 
state and designated regions and periodically prepare 
projections for each county or other political subdivision of 
the state as necessary to carry out the purposes of this 
section; 
    (4) review, comment on, and prepare analysis of population 
estimates and projections made by state agencies, political 
subdivisions, other states, federal agencies, or nongovernmental 
persons, institutions, or commissions; 
    (5) serve as the state liaison with the federal Bureau of 
the Census, coordinate state and federal demographic activities 
to the fullest extent possible, and aid the legislature in 
preparing a census data plan and form for each decennial census; 
    (6) compile an annual study of population estimates on the 
basis of county, regional, or other political or geographical 
subdivisions as necessary to carry out the purposes of this 
section and section 4A.03; 
    (7) by January 1 of each year, issue a report to the 
legislature containing an analysis of the demographic 
implications of the annual population study and population 
projections; 
    (8) prepare maps for all counties in the state, all 
municipalities with a population of 10,000 or more, and other 
municipalities as needed for census purposes, according to scale 
and detail recommended by the federal Bureau of the Census, with 
the maps of cities showing precinct boundaries; and 
    (9) prepare an estimate of population and of the number of 
households for each governmental subdivision for which the 
metropolitan council does not prepare an annual estimate, and 
convey the estimates to the governing body of each political 
subdivision by May 1 of each year; and. 
    (10) prepare an estimate of population and number of 
households for an area annexed by a governmental subdivision 
subject to levy limits under sections 275.50 to 275.56 if a 
municipal board order under section 414.01, subdivision 14, 
exists for the annexation and if the population of the annexed 
area is equal to at least 50 people or at least ten percent of 
the population of a governmental subdivision or unorganized 
territory that is losing area by the annexation. 
An estimate under clause (10) must be an estimate of the 
population as of the date, within 12 months after the annexation 
occurs, for which a population estimate for the governmental 
subdivision is made either by the state demographer under clause 
(9) or by the metropolitan council. 
    Sec. 2.  Minnesota Statutes 1990, section 103B.241, is 
amended to read: 
    103B.241 [LEVY.] 
    A levy to pay the increased costs to a local government 
unit or watershed management organization of implementing 
sections 103B.231 and 103B.235 or to pay costs of improvements 
and maintenance of improvements identified in an approved and 
adopted plan shall be in addition to any other taxes authorized 
by law.  Notwithstanding any provision to the contrary in 
chapter 103D, a watershed district may levy a tax sufficient to 
pay the increased costs to the district of implementing sections 
103B.231 and 103B.235.  The proceeds of any tax levied under 
this section shall be deposited in a separate fund and expended 
only for the purposes authorized by this section.  Watershed 
management organizations and local government units may 
accumulate the proceeds of levies as an alternative to issuing 
bonds to finance improvements.  The amount authorized under this 
section and levied by a governmental subdivision is not exempt 
from sections 275.50 to 275.56. 
    Sec. 3.  Minnesota Statutes 1990, section 103B.335, is 
amended to read: 
    103B.335 [TAX; EXEMPTION FROM PER CAPITA LEVY LIMIT LEVY 
AUTHORITY.] 
    The governing body of any county, municipality, or township 
may levy a tax in an amount required to implement sections 
103B.301 to 103B.355.  The amount of the levy up to 0.01813 
percent of taxable market value is exempt from the per capita 
levy limit under section 275.11.  
    Sec. 4.  Minnesota Statutes 1990, section 103F.221, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMMISSIONER'S COST OF ADOPTING ORDINANCES.] The 
costs incurred by the commissioner in adopting the ordinances or 
rules for the municipality must be paid by the municipality and 
collected from the municipality in the same manner as costs are 
paid by a county and collected from a county under section 
103F.215, subdivision 4.  The tax levied to pay the costs may be 
levied in excess of the per capita levy limitation imposed under 
section 275.11.  
    Sec. 5.  Minnesota Statutes 1990, section 174.27, is 
amended to read: 
    174.27 [PUBLIC EMPLOYER COMMUTER VAN PROGRAMS.] 
    Any statutory or home rule charter city, county, school 
district, independent board or agency may acquire or lease 
commuter vans, enter into contracts with another public or 
private employer to acquire or lease such vans, or purchase such 
a service for the use of its employees.  The governing body of 
any such city, county, or school district may by resolution 
establish a commuter van revolving fund to be used to acquire or 
lease commuter vans for the use of its employees.  Any payments 
out of the fund shall be repaid to the fund out of revenues 
derived from the use by the employees of the city, county, or 
school district, of the vans so purchased or leased.  For the 
purpose of establishing the fund any city, county, or school 
district is authorized to make a one time levy not to exceed 
0.00242 percent of taxable market value in excess of all taxing 
limitations except the limitations imposed under sections 275.50 
to 275.56, without affecting the amount or rate of taxes which 
may be levied by the city, county, or school district for other 
purposes or by any local governments in the area.  Any city, 
county, or school district which establishes a commuter van 
acquisition program or contracts for this service is authorized 
to levy a tax not to exceed 0.00024 percent of taxable market 
value for the purpose of paying the administrative and 
promotional costs of the program which levy shall be in excess 
of all taxing limitations except the limitations imposed under 
sections 275.50 to 275.56.  The governing body of any city, 
county, or school district may by resolution terminate the 
commuter van revolving fund and use the funds for other purposes 
authorized by law. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
256E.05, subdivision 3, is amended to read: 
    Subd. 3.  [ADDITIONAL DUTIES.] The commissioner shall also: 
     (a) Provide necessary forms and instructions to the 
counties for plan format and information; 
     (b) To the extent possible, coordinate other categorical 
social services grant applications and plans required of 
counties so that the applications and plans are included in and 
are consistent with the timetable and other requirements for the 
community social services plan in subdivision 2 and section 
256E.09; 
     (c) Provide to the chair of each county board, in addition 
to notice required pursuant to sections 14.05 to 14.36, timely 
advance notice and a written summary of the fiscal impact of any 
proposed new rule or changes in existing rule which will have 
the effect of increasing county costs for community social 
services; 
     (d) Provide training, technical assistance, and other 
support services to county boards to assist in needs assessment, 
planning, implementing, and monitoring social services programs 
in the counties; 
     (e) Design and implement a method of monitoring and 
evaluating social services, including site visits that utilize 
quality control audits to assure county compliance with 
applicable standards, guidelines, and the county and state 
social services plans; 
    (f) Design and implement a system that uses corrective 
action procedures as established in subdivision 5 and a schedule 
of fines to ensure county compliance with statutes, rules, 
federal laws, and federal regulations governing community social 
services.  In determining the amount of the fine, the 
commissioner may consider the number of community social 
services clients or applicants affected by the county's failure 
to comply with the law or rule, the severity of the 
noncompliance, the duration of the noncompliance, the resources 
allocated for the provision of the service in the community 
social services plan approved under section 256E.09, and the 
amount the county is levying for social services and income 
maintenance programs as reported under section 275.50 275.62, 
subdivision 5 1, clause (2).  Fines levied against a county 
under this subdivision must not exceed ten percent of the 
county's community social services allocation for the year in 
which the fines are levied; 
    (g) Design and implement an incentive program for the 
benefit of counties that perform at a level that consistently 
meets or exceeds the minimum standards in law and rule.  Fines 
collected under paragraph (e) may be placed in an incentive fund 
and used for the benefit of counties that meet and exceed the 
minimum standards; 
    (h) Specify requirements for reports, including fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17), to account for aids distributed under section 256E.06, 
funds from Title XX of the Social Security Act distributed under 
Minnesota Statutes, section 256E.07, claims under Title IV-E of 
the Social Security Act, mental health funding, and other social 
services expenditures and activities; and 
     (i) Request waivers from federal programs as necessary to 
implement sections 256E.01 to 256E.12. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
256E.09, subdivision 6, is amended to read: 
    Subd. 6.  [PLAN AMENDMENT.] After providing opportunity for 
public comment, the county may amend its plan.  After approval 
of the amendment by the county board, the county shall submit to 
the commissioner its amendment and a statement signed by the 
county board or its designee that the county is in compliance 
with specified Minnesota Statutes.  When certifying the 
amendment according to section 256E.05, subdivision 2, the 
commissioner shall consider:  (1) the effect of the proposed 
amendment on efforts to prevent inappropriate or facilitate 
appropriate residential placements; and 
    (2) the resources allocated for the provision of services 
in the community social services plan approved under section 
256E.09, and the amount the county is levying for social 
services and income maintenance programs as reported under 
section 275.50 275.62, subdivision 5 1, clause (2). 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
275.065, subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 15 and December 20, the governing bodies of the 
city and county shall each hold a public hearing to adopt its 
final budget and property tax levy for taxes payable in the 
following year, and the governing body of the school district 
shall hold a public hearing to review its current budget and 
adopt its property tax levy for taxes payable in the following 
year.  
    At the hearing, the taxing authority, other than a school 
district, may amend the proposed budget and property tax levy 
and must adopt a final budget and property tax levy, and the 
school district may amend the proposed property tax levy and 
must adopt a final property tax levy.  
    The property tax levy certified under section 275.07 by a 
city, county, 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, or 124B.03, subdivision 
2, after the proposed levy was certified; 
    (2) the amount of a city or county levy approved by the 
voters under section 275.58 after the proposed levy was 
certified; 
    (3) the amount of a levy to pay principal and interest on 
bonds issued or approved by the voters under section 475.58 
after the proposed levy was certified; 
    (4) the amount of a levy to pay costs due to a natural 
disaster occurring after the proposed levy was certified, if 
that amount is approved by the commissioner of revenue under 
subdivision 6a; 
    (5) the amount of a levy to pay tort judgments against a 
taxing authority that become final after the proposed levy was 
certified, if the amount is approved by the commissioner of 
revenue under subdivision 6a; and 
    (6) the amount of an increase in levy limits certified to 
the taxing authority by the commissioner of revenue or the 
commissioner of education after the proposed levy was certified; 
and 
    (7) if not included in the certified levy, any additional 
amount levied pursuant to section 275.51, subdivision 7, 
paragraph (b). 
    At the hearing the percentage increase in property taxes 
proposed by the taxing authority, if any, and the specific 
purposes for which property tax revenues are being increased 
must be discussed.  During the discussion, the governing body 
shall hear comments regarding a proposed increase and explain 
the reasons for the proposed increase.  The public shall be 
allowed to speak and to ask questions prior to adoption of any 
measures by the governing body.  The governing body, other than 
the governing body 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 county auditor shall provide for the coordination of hearing 
dates for all taxing authorities within the county. 
     By August 1, the county auditor shall notify the clerk of 
each school district within the county of the dates that the 
county board has designated for its hearing and any continuation 
under subdivision 3.  By August 15, each school board shall 
certify to the county auditors of the counties in which the 
school district is located the dates on which it elects to hold 
its hearings and any continuations under subdivision 3.  If a 
school board does not certify the dates by August 15, the 
auditor will assign the hearing date.  The dates elected or 
assigned must not conflict with the county hearing dates.  By 
August 20, the county auditor shall notify the clerks of the 
cities within the county of the dates on which the county and 
school 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 under subdivision 3.  The city must not 
select dates that conflict with those elected by or assigned to 
the counties and school districts in which the city is located.  
      The hearing dates so elected or assigned must be designated 
on the notices required under subdivision 3.  
      This subdivision does not apply to towns and special taxing 
districts.  
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
275.125, subdivision 6j, is amended to read: 
    Subd. 6j.  [LEVY FOR CRIME RELATED COSTS.] For taxes levied 
in 1991, payable in 1992 only, each school district may make a 
levy on all taxable property located within the school district 
for the purposes specified in this subdivision.  The maximum 
amount which may be levied for all costs under this subdivision 
shall be equal to $1 multiplied by the population of the school 
district.  For purposes of this subdivision, "population" of the 
school district means the same as contained in section 275.14.  
The proceeds of the levy must be used for reimbursing the cities 
and counties who contract with the school district for the 
following purposes:  (1) to pay the costs incurred for the 
salaries, benefits, and transportation costs of peace officers 
and sheriffs for liaison services in the district's middle and 
secondary schools, (2) to teach drug abuse resistance education 
curricula in the elementary schools, and (3) to pay the costs 
incurred for the salaries and benefits of peace officers and 
sheriffs whose primary responsibilities are to investigate 
controlled substance crimes under chapter 152.  The school 
district must initially attempt to contract for these services 
with the police department of each city or the sheriff's 
department of the county within the school district containing 
the school receiving the services.  If a local police department 
or a county sheriff's department does not wish to provide the 
necessary services, the district may contract for these services 
with any other police or sheriff's department located entirely 
or partially within the school district's boundaries.  The levy 
authorized under this subdivision is not included in determining 
the school district's levy limitations and must be disregarded 
in computing any overall levy limitations under sections 275.50 
to 275.56 of the participating cities or counties. 
    Sec. 10.  [275.62] [TAX LEVIES; REPORT TO THE COMMISSIONER 
OF REVENUE.] 
    Subdivision 1.  [REPORT ON TAXES LEVIED.] The commissioner 
of revenue shall establish procedures for the annual reporting 
of local government levies.  Each local governmental unit shall 
submit a report to the commissioner by December 30 of the year 
in which the tax is levied.  The report shall include, but is 
not limited to, information on the amount of the tax levied by 
the governmental unit for the following purposes: 
    (1) debt, which includes taxes levied for the purposes 
defined in Minnesota Statutes 1991 Supplement, section 275.50, 
subdivision 5, clauses (b), (c), (d), and (e); 
    (2) social services and related programs, which include 
taxes levied for the purposes defined in Minnesota Statutes 1991 
Supplement, section 275.50, subdivision 5, clauses (a), (j), and 
(v); 
    (3) libraries, which include taxes levied for the purposes 
defined in Minnesota Statutes 1991 Supplement, section 275.50, 
subdivision 5, clause (n); and 
    (4) other levies, which include the taxes levied for all 
purposes not included in clause (1), (2), or (3). 
    Subd. 2.  [LOCAL GOVERNMENTS REQUIRED TO REPORT.] For 
purposes of this section, "local governmental unit" means a 
county, home rule charter or statutory city with a population 
greater than 2,500, a town with a population greater than 5,000, 
or a home rule charter or statutory city or town that receives a 
distribution from the taconite municipal aid account in the levy 
year. 
     Subd. 3.  [POPULATION ESTIMATE.] For the purposes of this 
section, the population of a local governmental unit shall be 
that established by the last federal census, by a census taken 
under section 275.14, or by an estimate made by the metropolitan 
council or by the state demographer made under section 116K.04, 
subdivision 4, whichever is the most recent as to the stated 
date of count or estimate for the calendar year preceding the 
current levy year. 
     Subd. 4.  [PENALTY FOR LATE REPORTING.] If a local 
government unit fails to submit the report required in 
subdivision 1 by January 30 of the year after the year in which 
the tax was levied, aid payments to the local governmental unit 
in the year after the year in which the tax was levied shall be 
reduced as follows: 
     (1) for a county, the aid amount under section 256E.06 
shall be reduced by five percent; and 
     (2) for other local governmental units, the aid certified 
to be received under sections 477A.011 to 477A.014 shall be 
reduced by five percent. 
    Sec. 11.  Minnesota Statutes 1990, section 383B.152, is 
amended to read: 
    383B.152 [BUILDING AND MAINTENANCE FUND.] 
    The county board may by resolution levy a tax to provide 
money which shall be kept in a fund known as the county reserve 
building and maintenance fund.  Money in the fund shall be used 
solely for the construction, maintenance, and equipping of 
county buildings that are constructed or maintained by the 
board.  The levy shall not be subject to any limit fixed by any 
other law except the limitations imposed in sections 275.50 to 
275.56 or by any board of tax levy or other corresponding body, 
but shall not exceed 0.02215 percent of taxable market value, 
less the amount required by chapter 475 to be levied in the year 
for the payment of the principal of and interest on all bonds 
issued pursuant to Extra Session Laws 1967, chapter 47, section 
1. 
    Sec. 12.  Minnesota Statutes 1990, section 398A.06, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOANS AND DONATIONS.] The municipality may lend 
or donate money to the authority and may levy taxes, appropriate 
money, and issue bonds for that purpose in the manner and within 
the limitations prescribed by law, including but not limited 
to chapters 275 and chapter 475.  
    Sec. 13.  Minnesota Statutes 1990, section 469.107, 
subdivision 2, is amended to read: 
    Subd. 2.  [REVERSE REFERENDUM.] A city may increase its 
levy for economic development authority purposes under 
subdivision 1 in the following way.  Its city council must first 
pass a resolution stating the proposed amount of levy increase.  
The city must then publish the resolution together with a notice 
of public hearing on the resolution for two successive weeks in 
its official newspaper or if none exists in a newspaper of 
general circulation in the city.  The hearing must be held two 
to four weeks after the first publication.  After the hearing, 
the city council may decide to take no action or may adopt a 
resolution authorizing the proposed increase or a lesser 
increase.  A resolution authorizing an increase must be 
published in the city's official newspaper or if none exists in 
a newspaper of general circulation in the city.  The resolution 
is not effective if a petition requesting a referendum on the 
resolution is filed with the city clerk within 30 days of 
publication of the resolution.  The petition must be signed by 
voters equaling five percent of the votes cast in the city in 
the last general election.  The election must be held pursuant 
to the procedure specified in section 275.58 at a general or 
special election.  Notice of the election must be given in the 
manner required by law.  The notice must state the purpose and 
amount of the levy. 
    Sec. 14.  Minnesota Statutes 1990, section 471.571, 
subdivision 2, is amended to read: 
    Subd. 2.  [CREATION OF FUND, TAX LEVY.] The governing body 
of the city may create a permanent improvement and replacement 
fund to be maintained by an annual tax levy.  The governing body 
may levy a tax in excess of any charter limitation and in excess 
of the per capita limitation imposed under section 275.11 for 
the support of the permanent improvement and replacement fund, 
but not exceeding the following: 
    (a) In cities having a population of not more than 500 
inhabitants, the lesser of $20 per capita or 0.08059 percent of 
taxable market value; 
    (b) In cities having a population of more than 500 and less 
than 2500, the greater of $12.50 per capita or $10,000 but not 
exceeding 0.08059 percent of taxable market value; 
    (c) In cities having a population of more than 2500 
inhabitants, the greater of $10 per capita or $31,500 but not 
exceeding 0.08059 percent of taxable market value.  
    Sec. 15.  Minnesota Statutes 1990, 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 
and shall be disregarded in the calculation of limits on taxes 
imposed by chapter 275. 
    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; 
and 
    (c) for taxes payable in 1990 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. 16.  Minnesota Statutes 1991 Supplement, section 
477A.011, subdivision 27, is amended to read: 
    Subd. 27.  [REVENUE BASE.] "Revenue base" means the amount 
levied for taxes payable in the previous year, including the 
levy on the fiscal disparity distribution under section 473F.08, 
subdivision 3, paragraph (a), and before reduction for the 
homestead and agricultural credit aid under section 273.1398, 
subdivision 2, equalization aid under section 477A.013, 
subdivision 5, and disparity reduction aid under section 
273.1398, subdivision 3; plus the originally certified local 
government aid in the previous year under sections 477A.011, 
477A.012, and 477A.013, except for 477A.013, subdivision 5; and 
the estimated taconite aids used to determine levy limits for 
taxes payable received in the previous year under section 
275.51, subdivision 3i sections 298.28 and 298.282. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
477A.011, subdivision 29, is amended to read: 
    Subd. 29.  [ADJUSTED REVENUE BASE.] "Adjusted revenue base" 
means revenue base as defined in subdivision 27 less the special 
levy reported under section 275.50 275.62, subdivision 5 1, 
clause (a) (2). 
    Sec. 18.  [REPEALER.] 
    Minnesota Statutes 1990, section 134.342, subdivisions 2 
and 4, are repealed. 
     Sec. 19.  [EFFECTIVE DATE.] 
     Sections 1 to 18 are effective for taxes levied in 1992, 
payable in 1993, and thereafter. 

                                ARTICLE 6

                 INCOME, FRANCHISE, GROSS PREMIUMS TAXES
    Section 1.  Minnesota Statutes 1990, section 60A.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
before April 15 1, June 15 1, and December 15 1 of each 
year, every domestic and foreign company, including town and 
farmers' mutual insurance companies and, domestic mutual 
insurance companies, and marine insurance companies, shall pay 
to the commissioner of revenue installments equal to one-third 
of the insurer's total estimated tax for the current year.  
Except as provided in paragraph (b), installments must be based 
on a sum equal to two percent of the premiums described in 
paragraph (c). 
    (b) For town and farmers' mutual insurance companies and 
mutual property and casualty insurance companies other than 
those (i) writing life insurance, or (ii) whose total assets on 
December 31, 1989, exceeded $1,600,000,000, the installments 
must be based on an amount equal to the following percentages of 
the premiums described in paragraph (c): 
    (1) for premiums paid after December 31, 1988, and before 
January 1, 1992, one percent; and 
    (2) for premiums paid after December 31, 1991, one-half of 
one percent. 
    (c) Installments under paragraph (a) or (b) are percentages 
of gross premiums less return premiums on all direct business 
received by the insurer in this state, or by its agents for it, 
in cash or otherwise, during such year, excepting premiums 
written for marine insurance as specified in subdivision 6.  
    (d) Failure of a company to make payments of at least 
one-third of either (1) the total tax paid during the previous 
calendar year or (2) 80 percent of the actual tax for the 
current calendar year shall subject the company to the penalty 
and interest provided in this section, unless the total tax for 
the current tax year is $500 or less. 
    Sec. 2.  [60A.152] [INSURANCE PREMIUM TAX EQUIVALENT 
PAYMENT BY AUTOMOBILE RISK SELF-INSURERS.] 
    Subdivision 1.  [DEFINITIONS.] (a) [APPLICATION.] For 
purposes of this section, the definitions in paragraphs (b) to 
(f) apply. 
    (b) [AUTOMOBILE RISKS.] "Automobile risks" means the risk 
of providing no-fault insurance under sections 65B.41 to 65B.71. 
    (c) [MOTOR VEHICLE.] "Motor vehicle" has the meaning given 
in section 65B.43, subdivision 2. 
    (d) [PERSON.] "Person" means an owner, as defined in 
section 65B.43, subdivision 4, but does not include the state or 
a political subdivision as defined in section 65B.43, 
subdivision 20. 
    (e) [SELF-INSURANCE.] "Self-insurance" means the condition 
of qualifying as a self-insurer by complying with section 
65B.48, subdivisions 3 and 3a. 
    (f) [SELF-INSURER.] "Self-insurer" means a person who has 
arranged self-insurance for the automobile risks associated with 
the person's motor vehicle. 
     Subd. 2.  [PREMIUM TAX AMOUNT.] Every self-insurer who 
owns, leases, or operates a motor vehicle required to be 
registered or licensed in this state or principally garaged in 
this state for at least two months in the applicable calendar 
year shall pay an annual amount for each vehicle of: 
    (1) $15 for a private passenger vehicle as defined in 
section 65B.001, subdivision 3, or a utility vehicle as defined 
in section 65B.001, subdivision 4, not including a taxi; or 
    (2) $25 for a taxi or any other self-insured vehicle not 
covered by clause (1). 
    The amount required under this subdivision is payable no 
later than July 1, annually, to the commissioner of revenue.  A 
late payment penalty of $10 a vehicle is assessed if the amount 
is not paid on or before July 1, and an additional amount equal 
to the original payment amount if the total amount is not paid 
until after December 1 of the same year.  A self-insurer who is 
more than six months delinquent in paying the amount due must be 
referred to the commissioner of commerce for action, which may 
include revocation of the self-insured's self-insurer status. 
    Subd. 3.  [DEPOSIT OF PAYMENT AMOUNT.] The amounts paid 
under subdivision 2 must be deposited in the general fund to the 
credit of the account from which the police state aid provided 
for in sections 69.011 to 69.051 is payable. 
    Subd. 4.  [RULES AUTHORIZED.] The commissioner of revenue 
and the commissioner of commerce are authorized to make rules to 
permit the administration of this section. 
    Sec. 3.  Minnesota Statutes 1990, section 289A.25, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [MODIFICATION TO INDIVIDUAL ESTIMATED TAX 
REQUIREMENTS.] (a) If an individual meets the requirements of 
section 6654(d)(1)(C) to (F), of the Internal Revenue Code, the 
amount of the required installments under subdivision 5 must be 
computed as provided in this subdivision.  In determining the 
amount of the required installment, the following requirement is 
substituted for subdivision 5, clauses (2) and (3):  "(2) the 
greater of (i) 100 percent of the tax shown on the return of the 
individual for the preceding taxable year, or (ii) 90 percent of 
the tax shown on the return for the current year, determined by 
taking into account the adjustments under section 6654(d)(1)(D) 
of the Internal Revenue Code." 
    (b) Paragraph (a) does not apply for purposes of 
determining the amount of the first required installment in any 
taxable year under subdivision 3, paragraph (b).  A reduction in 
an installment under this paragraph must be recaptured by 
increasing the amount of the first succeeding required 
installment by the amount of the reduction, unless the 
individual meets the requirements of paragraph (c). 
    (c) This subdivision does not apply to any required 
installment if the individual qualifies for an annualization 
exception as computed under section 6654(d)(1)(C)(iv) of the 
Internal Revenue Code.  A reduction in an installment under this 
paragraph must be recaptured by increasing the amount of the 
first succeeding required installment (with respect to which the 
requirements of section 6654(d)(1)(C)(iv) are not met) by the 
amount of the reduction. 
    (d) All references to the Internal Revenue Code in this 
section are to the Internal Revenue Code of 1986, as amended 
through December 31, 1991.  For purposes of meeting the 
requirements of or making adjustments under section 6654 of the 
Internal Revenue Code in this subdivision: 
    (1) for an individual who is not a Minnesota resident for 
the entire year, the terms "adjusted gross income" and "modified 
adjusted gross income" mean the Minnesota share of that income 
apportioned to Minnesota under section 290.06, subdivision 2c, 
paragraph (e); and 
    (2) "tax" means the sum of the taxes imposed by chapter 290 
for a taxable year. 
    (e) This subdivision does not apply to individuals who 
compute and pay estimated taxes under subdivision 10. 
    (f) This subdivision does not apply to any taxable year 
beginning after December 31, 1996. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
289A.26, subdivision 1, is amended to read: 
    Subdivision 1.  [MINIMUM LIABILITY.] A corporation, 
partnership, or trust subject to taxation under chapter 290 
(excluding section 290.92) or an entity subject to taxation 
under section 290.05, subdivision 3, must make payment of 
estimated tax for the taxable year if its tax liability so 
computed can reasonably be expected to exceed $500, or in 
accordance with rules prescribed by the commissioner for an 
affiliated group of corporations electing to file one return as 
permitted under section 289A.08, subdivision 3. 
    Sec. 5.  Minnesota Statutes 1990, section 289A.26, 
subdivision 3, is amended to read: 
    Subd. 3.  [SHORT TAXABLE YEAR.] (a) A corporation An entity 
with a short taxable year of less than 12 months, but at least 
four months, must pay estimated tax in equal installments on or 
before the 15th day of the third, sixth, ninth, and final month 
of the short taxable year, to the extent applicable based on the 
number of months in the short taxable year.  
    (b) A corporation An entity is not required to make 
estimated tax payments for a short taxable year unless its tax 
liability before the first day of the last month of the taxable 
year can reasonably be expected to exceed $500.  
    (c) No payment is required for a short taxable year of less 
than four months. 
    Sec. 6.  Minnesota Statutes 1990, section 289A.26, 
subdivision 4, is amended to read: 
    Subd. 4.  [UNDERPAYMENT OF ESTIMATED TAX.] If there is an 
underpayment of estimated tax by a corporation, partnership, or 
trust, there shall be added to the tax for the taxable year an 
amount determined at the rate in section 270.75 on the amount of 
the underpayment, determined under subdivision 5, for the period 
of the underpayment determined under subdivision 6.  This 
subdivision does not apply in the first taxable year that a 
corporation is subject to the tax imposed under section 290.02. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
289A.26, subdivision 6, is amended to read: 
    Subd. 6.  [PERIOD OF UNDERPAYMENT.] The period of the 
underpayment runs from the date the installment was required to 
be paid to the earlier of the following dates: 
    (1) the 15th day of the third month following the close of 
the taxable year for corporations, the 15th day of the fourth 
month following the close of the taxable year for partnerships 
or trusts, and the 15th day of the fifth month following the 
close of the taxable year for entities subject to tax under 
section 290.05, subdivision 3; or 
    (2) with respect to any part of the underpayment, the date 
on which that part is paid.  For purposes of this clause, a 
payment of estimated tax shall be credited against unpaid 
required installments in the order in which those installments 
are required to be paid. 
    Sec. 8.  Minnesota Statutes 1990, section 289A.26, 
subdivision 7, is amended to read: 
    Subd. 7.  [REQUIRED INSTALLMENTS.] (a) Except as otherwise 
provided in this subdivision, the amount of a required 
installment is 25 percent of the required annual payment. 
    (b) Except as otherwise provided in this subdivision, the 
term "required annual payment" means the lesser of: 
    (1) 90 (i) for tax years beginning in calendar year 1992, 
93 percent of the tax shown on the return for the taxable year, 
or if no return is filed, 90 93 percent of the tax for that 
year; or 
    (ii) for tax years beginning after December 31, 1992, 95 
percent of the tax shown on the return for the taxable year, or 
if no return is filed 95 percent of the tax for that year; or 
    (2) 100 percent of the tax shown on the return of the 
corporation entity for the preceding taxable year provided the 
return was for a full 12-month period, showed a liability, and 
was filed by the corporation entity. 
    (c) Except for determining the first required installment 
for any taxable year, paragraph (b), clause (2), does not apply 
in the case of a large corporation.  The term "large 
corporation" means a corporation or any predecessor corporation 
that had taxable net income of $1,000,000 or more for any 
taxable year during the testing period.  The term "testing 
period" means the three taxable years immediately preceding the 
taxable year involved.  A reduction allowed to a large 
corporation for the first installment that is allowed by 
applying paragraph (b), clause (2), must be recaptured by 
increasing the next required installment by the amount of the 
reduction. 
    (d) In the case of a required installment, if the 
corporation establishes that the annualized income installment 
is less than the amount determined in paragraph (a), the amount 
of the required installment is the annualized income installment 
and the recapture of previous quarters' reductions allowed by 
this paragraph must be recovered by increasing later required 
installments to the extent the reductions have not previously 
been recovered. 
     (e) The "annualized income installment" is the excess, if 
any, of: 
     (1) an amount equal to the applicable percentage of the tax 
for the taxable year computed by placing on an annualized basis 
the taxable income: 
    (i) for the first two months of the taxable year, in the 
case of the first required installment; 
    (ii) for the first two months or for the first five months 
of the taxable year, in the case of the second required 
installment; 
    (iii) for the first six months or for the first eight 
months of the taxable year, in the case of the third required 
installment; and 
    (iv) for the first nine months or for the first 11 months 
of the taxable year, in the case of the fourth required 
installment, over 
    (2) the aggregate amount of any prior required installments 
for the taxable year.  
    (3) For the purpose of this paragraph, the annualized 
income shall be computed by placing on an annualized basis the 
taxable income for the year up to the end of the month preceding 
the due date for the quarterly payment multiplied by 12 and 
dividing the resulting amount by the number of months in the 
taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred 
to in clause (1). 
    (4) The "applicable percentage" used in clause (1) is: 
For the following                 The applicable
required installments:            percentage is:
                         for tax years       for tax years
                         beginning in        beginning after
                         1992                December 31, 1992
        1st                22.5 23.25              23.75
        2nd                45   46.5               47.5
        3rd                67.5 69.75              71.25
        4th                90   93                 95
    (f)(1) If this paragraph applies, the amount determined for 
any installment must be determined in the following manner: 
    (i) take the taxable income for the months during the 
taxable year preceding the filing month; 
    (ii) divide that amount by the base period percentage for 
the months during the taxable year preceding the filing month; 
    (iii) determine the tax on the amount determined under item 
(ii); and 
    (iv) multiply the tax computed under item (iii) by the base 
period percentage for the filing month and the months during the 
taxable year preceding the filing month.  
    (2) For purposes of this paragraph: 
    (i) the "base period percentage" for a period of months is 
the average percent that the taxable income for the 
corresponding months in each of the three preceding taxable 
years bears to the taxable income for the three preceding 
taxable years; 
    (ii) the term "filing month" means the month in which the 
installment is required to be paid; 
    (iii) this paragraph only applies if the base period 
percentage for any six consecutive months of the taxable year 
equals or exceeds 70 percent; and 
    (iv) the commissioner may provide by rule for the 
determination of the base period percentage in the case of 
reorganizations, new corporations, and other similar 
circumstances.  
    (3) In the case of a required installment determined under 
this paragraph, if the corporation entity determines that the 
installment is less than the amount determined in paragraph (a), 
the amount of the required installment is the amount determined 
under this paragraph and the recapture of previous quarters' 
reductions allowed by this paragraph must be recovered by 
increasing later required installments to the extent the 
reductions have not previously been recovered.  
    Sec. 9.  Minnesota Statutes 1990, section 289A.26, 
subdivision 9, is amended to read: 
    Subd. 9.  [FAILURE TO FILE AN ESTIMATE.] In the case of a 
corporation an entity that fails to file an estimated tax for a 
taxable year when one is required, the period of the 
underpayment runs from the four installment dates in subdivision 
2 or 3, whichever applies, to the earlier of the periods in 
subdivision 6, clauses (1) and (2).  
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
289A.37, subdivision 1, is amended to read: 
    Subdivision 1.  [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO 
TAXPAYER.] (a) When a return has been filed and the commissioner 
determines that the tax disclosed by the return is different 
than the tax determined by the examination, the commissioner 
shall send an order of assessment to the taxpayer.  When no 
return has been filed, the commissioner may make a return for 
the taxpayer under section 289A.35 or may send an order of 
assessment under this subdivision.  The order must explain the 
basis for the assessment and must explain the taxpayer's appeal 
rights.  An order of assessment is final when made but may be 
reconsidered by the commissioner under section 289A.65. 
    (b) An The penalty under section 289A.60, subdivision 1, is 
not imposed if the amount of unpaid tax shown on the order must 
be is paid to the commissioner:  (1) within 60 days after notice 
of the amount and demand for its payment have been mailed to the 
taxpayer by the commissioner; or (2) if an administrative appeal 
is filed under section 289A.65 or a tax court appeal is filed 
under chapter 271, within 60 days following the final 
determination of the appeal. 
    Sec. 11.  Minnesota Statutes 1991 Supplement, section 
290.01, subdivision 19, is amended to read: 
    Subd. 19.  [NET INCOME.] The term "net income" means the 
federal taxable income, as defined in section 63 of the Internal 
Revenue Code of 1986, as amended through the date named in this 
subdivision, incorporating any elections made by the taxpayer in 
accordance with the Internal Revenue Code in determining federal 
taxable income for federal income tax purposes, and with the 
modifications provided in subdivisions 19a to 19f. 
    In the case of a regulated investment company or a fund 
thereof, as defined in section 851(a) or 851(h) of the Internal 
Revenue Code, federal taxable income means investment company 
taxable income as defined in section 852(b)(2) of the Internal 
Revenue Code, except that:  
    (1) the exclusion of net capital gain provided in section 
852(b)(2)(A) of the Internal Revenue Code does not apply; and 
    (2) the deduction for dividends paid under section 
852(b)(2)(D) of the Internal Revenue Code must be applied by 
allowing a deduction for capital gain dividends and 
exempt-interest dividends as defined in sections 852(b)(3)(C) 
and 852(b)(5) of the Internal Revenue Code.  
    The net income of a real estate investment trust as defined 
and limited by section 856(a), (b), and (c) of the Internal 
Revenue Code means the real estate investment trust taxable 
income as defined in section 857(b)(2) of the Internal Revenue 
Code.  
     The Internal Revenue Code of 1986, as amended through 
December 31, 1986, shall be in effect for taxable years 
beginning after December 31, 1986.  The provisions of sections 
10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 
10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 
Omnibus Budget Reconciliation Act of 1987, Public Law Number 
100-203, the provisions of sections 1001, 1002, 1003, 1004, 
1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 
1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 
6277, and 6282 of the Technical and Miscellaneous Revenue Act of 
1988, Public Law Number 100-647, and the provisions of sections 
7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 
1989, Public Law Number 101-239, shall be effective at the time 
they become effective for federal income tax purposes.  
     The Internal Revenue Code of 1986, as amended through 
December 31, 1987, shall be in effect for taxable years 
beginning after December 31, 1987.  The provisions of sections 
4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 
6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 
6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 
Act of 1988, Public Law Number 100-647, the provisions of 
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 
of 1989, Public Law Number 101-239, and the provisions of 
section 11702 of the Revenue Reconciliation Act of 1990, Public 
Law Number 101-508, shall become effective at the time they 
become effective for federal tax purposes.  
     The Internal Revenue Code of 1986, as amended through 
December 31, 1988, shall be in effect for taxable years 
beginning after December 31, 1988.  The provisions of sections 
7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 
7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 
7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 
Reconciliation Act of 1989, Public Law Number 101-239, the 
provision of section 1401 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 
and the provisions of sections 11701 and 11703 of the Revenue 
Reconciliation Act of 1990, Public Law Number 101-508, shall 
become effective at the time they become effective for federal 
tax purposes.  
     The Internal Revenue Code of 1986, as amended through 
December 31, 1989, shall be in effect for taxable years 
beginning after December 31, 1989.  The provisions of sections 
11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 
the Revenue Reconciliation Act of 1990, Public Law Number 
101-508, shall become effective at the time they become 
effective for federal purposes.  
    The Internal Revenue Code of 1986, as amended through 
December 31, 1990, shall be in effect for taxable years 
beginning after December 31, 1990.  
    The Internal Revenue Code of 1986, as amended through 
December 31, 1991, shall be in effect for taxable years 
beginning after December 31, 1991.  
    Except as otherwise provided, references to the Internal 
Revenue Code in subdivisions 19a to 19g mean the code in effect 
for purposes of determining net income for the applicable year. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
290.05, subdivision 3, is amended to read: 
    Subd. 3.  (a) An organization exempt from taxation under 
subdivision 2 shall, nevertheless, be subject to tax under this 
chapter to the extent provided in the following provisions of 
the Internal Revenue Code:  
    (i) section 527 (dealing with political organizations); 
    (ii) section 528 (dealing with certain homeowners 
associations); 
    (iii) sections 511 to 515 (dealing with unrelated business 
income); and 
    (iv) section 521 (dealing with farmers' cooperatives); but 
    notwithstanding this subdivision, shall be considered an 
organization exempt from income tax for the purposes of any law 
which refers to organizations exempt from income taxes.  
    (b) The tax shall be imposed on the taxable income of 
political organizations or homeowner associations or the 
unrelated business taxable income, as defined in section 512 of 
the Internal Revenue Code, of organizations defined in section 
511 of the Internal Revenue Code, provided that the tax is not 
imposed on:  
     (1) advertising revenues from a newspaper published by an 
organization described in section 501(c)(4) of the Internal 
Revenue Code; or 
    (2) revenues from lawful gambling authorized under chapter 
349 that are expended for purposes that qualify for the 
deduction for charitable contributions under section 170 of the 
Internal Revenue Code of 1986, as amended through December 31, 
1991, disregarding the limitation under section 170(b)(2), but 
only to the extent the contributions are not deductible in 
computing federal taxable income. 
    The tax shall be at the corporate rates.  The tax shall 
only be imposed on income and deductions assignable to this 
state under sections 290.17 to 290.20.  To the extent deducted 
in computing federal taxable income, the deductions contained in 
section 290.21 shall not be allowed in computing Minnesota 
taxable net income. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
290.06, subdivision 23, is amended to read: 
    Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
amount of the taxpayer's contributions made in the calendar year 
to candidates and to any political party.  The maximum refund 
for an individual must not exceed $50 and, for a married couple 
filing jointly, must not exceed $100.  A refund of a 
contribution is allowed only if the taxpayer files a form 
required by the commissioner and attaches to the form a copy of 
an official refund receipt form issued by the candidate or party 
and signed by the candidate, the treasurer of the candidate's 
principal campaign committee, or the party chair.  A claim must 
be filed with the commissioner not sooner than September January 
1 of the calendar year in which the contribution is made and no 
later than April 15 of the calendar year following the calendar 
year in which the contribution is made.  A taxpayer may file 
only one claim per calendar year.  Amounts paid by the 
commissioner after June 15 of the calendar year following the 
calendar year in which the contribution is made must include 
interest at the rate specified in section 270.76. 
    (b) No refund is allowed under this subdivision for a 
contribution to any candidate unless the candidate: 
     (1) has signed an agreement to limit campaign expenditures 
as provided in section 10A.322 or 10A.43; 
     (2) is seeking an office for which voluntary spending 
limits are specified in section 10A.25 or 10A.43; and 
    (3) has designated a principal campaign committee.  
    This subdivision does not limit the campaign expenditure of 
a candidate who does not sign an agreement but accepts a 
contribution for which the contributor improperly claims a 
refund.  
    (c) For purposes of this subdivision, "political party" 
means a major political party as defined in section 200.02, 
subdivision 7, or a minor political party qualifying for 
inclusion on the income tax or property tax refund form under 
section 10A.31, subdivision 3a.  
    A "major or minor party" includes the aggregate of the 
party organization within each house of the legislature, the 
state party organization, and the party organization within 
congressional districts, counties, legislative districts, 
municipalities, and precincts.  
    "Candidate" means a congressional candidate as defined in 
section 10A.41, subdivision 4, or a candidate as defined in 
section 10A.01, subdivision 5, except a candidate for judicial 
office.  
    "Contribution" means a gift of money. 
    (d) The commissioner shall make copies of the form 
available to the public and candidates upon request. 
    (e) The following data collected or maintained by the 
commissioner under this subdivision are private:  the identities 
of individuals claiming a refund, the identities of candidates 
to whom those individuals have made contributions, and the 
amount of each contribution. 
    (f) The amount necessary to pay claims for the refund 
provided in this section is appropriated from the general fund 
to the commissioner of revenue. 
    Sec. 14.  Minnesota Statutes 1990, section 290.0922, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXEMPTIONS.] The following entities are exempt 
from the tax imposed by this section: 
    (1) corporations exempt from tax under section 290.05 other 
than insurance companies exempt under subdivision 1, paragraph 
(d); 
    (2) real estate investment trusts; 
    (3) regulated investment companies or a fund thereof; and 
    (4) entities having a valid election in effect under 
section 860D(b) of the Internal Revenue Code of 1986, as amended 
through December 31, 1989; and 
    (5) town and farmers' mutual insurance companies; and 
    (6) cooperatives organized under chapter 308A that provide 
housing exclusively to persons age 55 and over and are 
classified as homesteads under section 273.124, subdivision 3. 
    Entities not specifically exempted by this subdivision are 
subject to tax under this section, notwithstanding section 
290.05.  
    Sec. 15.  Minnesota Statutes 1990, section 290.9201, 
subdivision 11, is amended to read: 
    Subd. 11.  [EXCEPTION FROM WITHHOLDING FOR PUBLIC 
SPEAKERS.] The provisions of subdivisions 7 and 8 shall not be 
effective for compensation paid to nonresident public speakers 
before January 1, 1992, if the compensation paid to the speaker 
is less than $2,000 or is only a payment of the speaker's 
expenses. 
    Sec. 16.  Minnesota Statutes 1990, section 290.923, is 
amended by adding a subdivision to read: 
    Subd. 11.  [EXEMPTION FROM DEDUCTION AND WITHHOLDING.] A 
person or entity whose shares or certificates of beneficial 
interest are traded on the New York Stock Exchange or publicly 
traded on any recognized stock exchange and which issues 1099 or 
K1 forms to its shareholders or certificate holders and provides 
the 1099 or K1 information to the department of revenue, is 
exempt from deduction and withholding under this section. 
    Sec. 17.  Minnesota Statutes 1990, section 299F.21, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTIMATED INSTALLMENT PAYMENTS.] On or 
before April 15 1, June 15 1, and December 15 1 of each 
year, every licensed insurance company, including reciprocals or 
interinsurance exchanges, doing business in the state, excepting 
farmers' mutual fire insurance companies and township mutual 
fire insurance companies, shall pay to the commissioner of 
revenue installments equal to one-third of, a tax upon its fire 
premiums or assessments or both, based on a sum equal to 
one-half of one percent of the estimated fire premiums and 
assessments, less return premiums and dividends, on all direct 
business received by it in this state, or by its agents for it, 
in cash or otherwise, during the year, including premiums on 
policies covering fire risks only on automobiles, whether 
written under floater form or otherwise.  In the case of a 
mutual company or reciprocal exchange the dividends or savings 
paid or credited to members in this state shall be construed to 
be return premiums.  The money so received into the state 
treasury shall be credited to the general fund.  A company that 
fails to make payments of at least one-third of either (1) the 
total tax paid during the previous calendar year or (2) 80 
percent of the actual tax for the current calendar year is 
subject to the penalty and interest provided in this chapter, 
unless the total tax for the current tax year is $500 or less.  
    Sec. 18.  [TRANSITION RELIEF FOR CHANGE IN CORPORATE 
ESTIMATED TAX.] 
    For the purposes of computing the amount of underpayment of 
corporate estimated tax on installment payments due before June 
1, 1992, 90 percent shall be substituted for 93 percent in 
Minnesota Statutes, section 289A.26, subdivision 7, paragraph 
(b), clause (1), and 22.5 percent shall be substituted for 23.25 
percent in paragraph (e), clause (4), if there is not an 
underpayment of estimated tax for the second installment due in 
calendar year 1992. 
    Sec. 19.  [INSTRUCTION TO REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall substitute the phrase "Internal Revenue Code of 
1986, as amended through December 31, 1991" for the words 
"Internal Revenue Code of 1986, as amended through December 31, 
1990" or "Internal Revenue Code of 1986, as amended through 
January 30, 1991" where either phrase occurs in chapters 289A, 
290, 290A, and 291, except for section 290.01, subdivision 19.  
     Sec. 20.  [REPEALER.] 
     Minnesota Statutes 1990, section 60A.15, subdivision 6, is 
repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
     Sections 1 and 20 are effective for taxable years beginning 
after December 31, 1992, except that the date changes in section 
1 are effective for payments due on or after December 1, 1992.  
     Section 2 is effective January 1, 1992. 
     Section 3 is effective for taxable years beginning after 
December 31, 1992. 
    Sections 4 to 7, and 9 are effective for taxable years 
beginning after June 1, 1992.  
    Sections 8 and 18 are effective for estimated tax payments 
for tax years beginning after December 31, 1991, except that the 
amendments changing the words "corporation" to "entity" are 
effective for taxable years beginning after June 1, 1992.  
    Sections 10 and 15 are effective the day following final 
enactment. 
    Sections 12 and 14 are effective for taxable years 
beginning after December 31, 1991.  
    Section 13 is effective for contributions made after the 
day of final enactment.  
    Section 16 is effective for taxable years beginning after 
December 31, 1989. 
    Section 17 is effective for payments due on or after 
December 31, 1992. 

                                ARTICLE 7

               STATE TAXES:  ADMINISTRATIVE AND TECHNICAL
    Section 1.  [13.701] [TAX DATA; CLASSIFICATION AND 
DISCLOSURE.] 
    Classification and disclosure of tax data created, 
collected, or maintained under chapters 290, 290A, 291, and 297A 
by the department of revenue is governed by chapter 270B. 
    Sec. 2.  Minnesota Statutes 1990, section 60A.19, 
subdivision 6, is amended to read: 
    Subd. 6.  [RETALIATORY PROVISIONS.] (1) When by the laws of 
any other state or country any taxes, fines, deposits, 
penalties, licenses, or fees, other than assessments made by an 
insurance guaranty association or similar organization, in 
addition to or in excess of those imposed by the laws of this 
state upon foreign insurance companies and their agents doing 
business in this state, other than assessments made pursuant to 
section 60C.06 by an insurance guaranty association or similar 
organization organized under the laws of this state, are imposed 
on insurance companies of this state and their agents doing 
business in that state or country, or when any conditions 
precedent to the right to do business in that state are imposed 
by the laws thereof, beyond those imposed upon these foreign 
companies by the laws of this state, the same taxes, fines, 
deposits, penalties, licenses, fees, and conditions precedent 
shall be imposed upon every similar insurance company of that 
state or country and their agents doing or applying to do 
business in this state so long as these foreign laws remain in 
force.  Special purpose obligations or assessments, or 
assessments imposed in connection with particular kinds of 
insurance, are not taxes, licenses, or fees as these terms are 
used in this section. 
    (2) In the event that a domestic insurance company, after 
complying with all reasonable laws and rulings of any other 
state or country, is refused permission by that state or country 
to transact business therein after the commissioner of commerce 
of Minnesota has determined that that company is solvent and 
properly managed and after the commissioner has so certified to 
the proper authority of that other state or country, then, and 
in every such case, the commissioner may forthwith suspend or 
cancel the certificate of authority of every insurance company 
organized under the laws of that other state or country to the 
extent that it insures, or seeks to insure, in this state 
against any of the risks or hazards which that domestic company 
seeks to insure against in that other state or country.  Without 
limiting the application of the foregoing provision, it is 
hereby determined that any law or ruling of any other state or 
country which prescribes to a Minnesota domestic insurance 
company the premium rate or rates for life insurance issued or 
to be issued outside that other state or country shall not be 
reasonable. 
     (3) This section does not apply to insurance companies 
organized or domiciled in a state or country, the laws of which 
do not impose retaliatory taxes, fines, deposits, penalties, 
licenses, or fees or which grant, on a reciprocal basis, 
exemptions from retaliatory taxes, fines, deposits, penalties, 
licenses, or fees to insurance companies domiciled in this state.
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
270A.04, subdivision 2, is amended to read: 
    Subd. 2.  Any debt owed to a claimant agency shall must not 
be submitted by the agency for collection under the procedure 
established by sections 270A.01 to 270A.12 unless if (a) an 
alternative means of collection is pending and the debtor is 
complying with the terms of alternative means of collection, 
except that this limitation does not apply to debts owed 
resulting from a default in payment of child support or 
maintenance there is a written payment agreement between the 
debtor and the claimant agency in which revenue recapture is 
prohibited and the debtor is complying with the agreement, (b) 
the collection attempt would result in a loss of federal funds, 
or (c) the agency is unable to supply the department with the 
necessary identifying information required by subdivision 3 or 
rules promulgated by the commissioner, or (d) the debt is barred 
by section 541.05. 
    Sec. 4.  Minnesota Statutes 1990, section 270A.05, is 
amended to read: 
    270A.05 [MINIMUM SUM COLLECTIBLE.] 
    The minimum sum which a claimant agency may collect through 
use of the setoff procedure is $25 $15.  
    Sec. 5.  Minnesota Statutes 1990, section 270A.07, 
subdivision 1, is amended to read: 
    Subdivision 1.  [NOTIFICATION REQUIREMENT.] Any claimant 
agency, seeking collection of a debt through setoff against a 
refund due, shall submit to the commissioner information 
indicating the amount of each debt and information identifying 
the debtor, as required by section 270A.04, subdivision 
3.  Where the notification is received before July 1, the 
notification shall be effective only to initiate set-off for 
claims against refunds that would be made in the same calendar 
year.  Where the notification is received on or after July 1, 
the notification is effective only to begin setoff for claims 
against refunds that would be made in the next calendar year.  
    The claimant agency shall submit to the commissioner the 
amount of $3 per certification.  The payment must accompany the 
certification.  The claimant agency shall increase the amount of 
each debt certified by $3 and this total amount is subject to 
recapture.  If the total debt is not recaptured by the 
commissioner, the $3 addition to the debt may be collected by 
the claimant agency from the debtor and must be considered an 
obligation of the debtor.  The $3 will not be refunded if the 
recapture is not accomplished. 
    For each setoff of a debt against a refund due, the 
commissioner shall charge a fee of $10.  The claimant agency may 
add the fee to the amount of the debt.  
     The claimant agency shall notify the commissioner when a 
debt has been satisfied or reduced by at least $200 within 30 
days after satisfaction or reduction. 
    Sec. 6.  Minnesota Statutes 1990, section 270A.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [SETOFF PROCEDURES.] (a) The commissioner, upon 
receipt of notification, shall initiate procedures to detect any 
refunds otherwise payable to the debtor.  When the commissioner 
determines that a refund is due to a debtor whose debt was 
submitted by a claimant agency, the commissioner shall first 
deduct the fee in subdivision 1 and then remit the refund or the 
amount claimed, whichever is less, to the agency.  In 
transferring or remitting moneys to the claimant agency, the 
commissioner shall provide information indicating the amount 
applied against each debtor's obligation and the debtor's 
address listed on the tax return.  
    (b) The commissioner shall remit to the debtor the amount 
of any refund due in excess of the debt submitted for setoff by 
the claimant agency.  Notice of the amount setoff and address of 
the claimant agency shall accompany any disbursement to the 
debtor of the balance of a refund.  
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
270A.08, subdivision 2, is amended to read: 
    Subd. 2.  (a) This written notice shall clearly and with 
specificity set forth the basis for the claim to the refund 
including the name of the benefit program involved if the debt 
arises from a public assistance grant and the dates on which the 
debt was incurred and, further, shall advise the debtor of the 
claimant agency's intention to request setoff of the refund 
against the debt.  
    (b) The notice will also advise the debtor that any the 
debt incurred more than six years from the date of the notice to 
the commissioner under section 270A.07, except for debts owed 
resulting from a default in payment of child support or 
maintenance, must not can be setoff against a refund unless the 
time period allowed by law for collecting the debt has expired, 
and will advise the debtor of the right to contest the validity 
of the claim at a hearing.  The debtor must assert this right by 
written request to the claimant agency, which request the agency 
must receive within 45 days of the mailing date of the original 
notice or of the corrected notice, as required by subdivision 
1.  If the debtor has not received the notice, the 45 days shall 
not commence until the debtor has received actual notice.  The 
debtor shall have the burden of showing no notice and shall be 
entitled to a hearing on the issue of notice as well as on the 
merits. 
    Sec. 8.  Minnesota Statutes 1990, section 270A.11, is 
amended to read: 
    270A.11 [DATA PRIVACY.] 
    Private and confidential data on individuals may be 
exchanged among the department, the claimant agency, and the 
debtor as necessary to accomplish and effectuate the intent of 
sections 270A.01 to 270A.12, as provided by section 13.05, 
subdivision 4, clause (b).  The department may disclose to the 
claimant agency only the debtor's name, address, social security 
number and the amount of the refund, and in the case of a joint 
return, the name of the debtor's spouse.  Any person employed 
by, or formerly employed by, a claimant agency who discloses any 
such information for any other purpose, shall be subject to the 
civil and criminal penalties of section 270B.18. 
    Sec. 9.  Minnesota Statutes 1990, section 270B.01, 
subdivision 8, is amended to read: 
    Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
chapter only, "Minnesota tax laws" means the taxes administered 
by or paid to the commissioner under chapters 289A, 290, 290A, 
291, and 297A, and includes any laws for the assessment, 
collection, and enforcement of those taxes.  
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
289A.20, subdivision 1, is amended to read: 
    Subdivision 1.  [INDIVIDUAL INCOME, FIDUCIARY INCOME, 
MINING COMPANY, CORPORATE FRANCHISE, AND ENTERTAINMENT TAXES.] 
(a) Individual income, fiduciary, mining company, and corporate 
franchise taxes must be paid to the commissioner on or before 
the date the return must be filed under section 289A.18, 
subdivision 1, or the extended due date as provided in section 
289A.19, unless an earlier date for payment is provided.  
    Notwithstanding any other law, a taxpayer whose unpaid 
liability for income or corporate franchise taxes, as reflected 
upon the return, is $1 or less need not pay the tax.  
    A corporation required to make estimated tax payments by 
means of an electronic funds transfer must also make the payment 
with the return in accordance with section 289A.26, subdivision 
2a. 
    (b) Entertainment taxes must be paid on or before the date 
the return must be filed under section 289A.18, subdivision 1. 
    Sec. 11.  [289A.43] [PROHIBITION OF SUITS TO RESTRAIN 
ASSESSMENT OR COLLECTION.] 
    Except for the express procedures in this chapter, chapters 
270 and 271, and any other tax statutes for contesting the 
assessment or collection of taxes, penalties, or interest 
administered by the commissioner of revenue, no suit to restrain 
assessment or collection, including a declaratory judgment 
action, can be maintained in any court by any person.  
    Sec. 12.  Minnesota Statutes 1990, section 289A.50, 
subdivision 5, is amended to read: 
    Subd. 5.  [WITHHOLDING OF REFUNDS FROM CHILD SUPPORT 
DEBTORS.] (a) If a court of this state finds that a person 
obligated to pay child support is delinquent in making payments, 
the amount of child support unpaid and owing, including attorney 
fees and costs incurred in ascertaining or collecting child 
support, must be withheld from a refund due the person under 
chapter 290.  The public agency responsible for child support 
enforcement or the parent or guardian of a child for whom the 
support, attorney fees, and costs are owed may petition the 
district or county court for an order providing for the 
withholding of the amount of child support, attorney fees, and 
costs unpaid and owing as determined by court order.  The person 
from whom the refund may be withheld must be notified of the 
petition under the rules of civil procedure before the issuance 
of an order under this subdivision.  The order may be granted on 
a showing to the court that required support payments, attorney 
fees, and costs have not been paid when they were due. 
    (b) On order of the court and on payment of $3 to the 
commissioner, the commissioner shall withhold the money from the 
refund due to the person obligated to pay the child support.  
The amount withheld shall be remitted to the public agency 
responsible for child support enforcement or to the parent or 
guardian petitioning on behalf of the child, after any 
delinquent tax obligations of the taxpayer owed to the revenue 
department have been satisfied and after deduction of the fee 
prescribed in section 270A.07, subdivision 1.  An amount 
received by the responsible public agency or the petitioning 
parent or guardian in excess of the amount of public assistance 
spent for the benefit of the child to be supported, or the 
amount of any support, attorney fees, and costs that had been 
the subject of the claim under this subdivision that has been 
paid by the taxpayer before the diversion of the refund, must be 
paid to the person entitled to the money.  If the refund is 
based on a joint return, the part of the refund that must be 
paid to the petitioner is the proportion of the total refund 
that equals the proportion of the total federal adjusted gross 
income of the spouses that is the federal adjusted gross income 
of the spouse who is delinquent in making the child support 
payments. 
     (c) A petition filed under this subdivision remains in 
effect with respect to any refunds due under this section until 
the support money, attorney fees, and costs have been paid in 
full or the court orders the commissioner to discontinue 
withholding the money from the refund due the person obligated 
to pay the support, attorney fees, and costs.  If a petition is 
filed under this subdivision and a claim is made under chapter 
270A with respect to the individual's refund and notices of both 
are received before the time when payment of the refund is made 
on either claim, the claim relating to the liability that 
accrued first in time must be paid first.  The amount of the 
refund remaining must then be applied to the other claim.  
    Sec. 13.  Minnesota Statutes 1990, section 290.05, 
subdivision 4, is amended to read: 
    Subd. 4.  (a) Corporations, individuals, estates, trusts or 
organizations claiming exemption under subdivision 2 shall 
furnish information concerning their exempt status under the 
Internal Revenue Code.  
    (b) Corporations, individuals, estates, trusts, and 
organizations shall file with the commissioner of revenue a copy 
of an annual report that is required to be filed with the 
Internal Revenue Service, no later than ten days after filing it 
with the Internal Revenue Service.  An annual report required of 
a pension plan under sections 6057 to 6059 of the Internal 
Revenue Code of 1954, does not need to be filed with the 
commissioner.  
    (c) If the Internal Revenue Service revokes, cancels or 
suspends, in whole or part, the exempt status of any 
corporation, individual, estate, trust or organization referred 
to in paragraph (a), or if the amount of gross income, 
deductions, credits, items of tax preference or taxable income 
is changed or corrected by either the taxpayer or the Internal 
Revenue Service, or if the taxpayer consents to any extension of 
time for assessment of federal income taxes, the corporation, 
individual, estate, trust or organization shall notify the 
commissioner in writing of the action within 90 days after that 
date. 
    (d) (b) The periods of limitations contained in section 
289A.42, subdivision 2, apply when there has been any action 
referred to in paragraph (c) (a), notwithstanding any period of 
limitations to the contrary.  
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
290.0671, subdivision 1, is amended to read: 
    Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
a credit against the tax imposed by this chapter equal to ten 
percent of the credit for which the individual is eligible under 
section 32 of the Internal Revenue Code of 1986, as amended 
through December 31, 1990. 
    For a nonresident, or part-year resident, or person who has 
earned income not subject to tax under this chapter, the credit 
determined under section 32 of the Internal Revenue Code of 
1986, as amended through December 31, 1990, must be allocated 
based on the percentage of the total earned income of the 
claimant and the claimant's spouse that is derived from 
Minnesota sources calculated under section 290.06, subdivision 
2c, paragraph (e). 
    For a person who was a resident for the entire tax year and 
has earned income not subject to tax under this chapter, the 
credit must be allocated based on the ratio of federal adjusted 
gross income reduced by the earned income not subject to tax 
under this chapter over federal adjusted gross income. 
    Sec. 15.  Minnesota Statutes 1991 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) to the extent not included in federal alternative 
minimum taxable income, the amount of interest income as 
provided by section 290.01, subdivision 19a, clause (1); less 
the sum of 
      (i) interest income as defined in section 290.01, 
subdivision 19b, clause (1); 
      (ii) an overpayment of state income tax as provided by 
section 290.01, subdivision 19b, clause (2); and 
      (iii) the amount of investment interest paid or accrued 
within the taxable year on indebtedness to the extent that the 
amount does not exceed net investment income, as defined in 
section 163(d)(4) of the Internal Revenue Code.  Interest does 
not include amounts deducted in computing federal adjusted gross 
income. 
    In the case of an estate or trust, alternative minimum 
taxable income must be computed as provided in section 59(c) of 
the Internal Revenue Code. 
    (b) "Internal Revenue Code" means the Internal Revenue Code 
of 1986, as amended through December 31, 1989. 
    (c) "Investment interest" means investment interest as 
defined in section 163(d)(3) of the Internal Revenue Code. 
    (d) "Tentative minimum tax" equals six 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. 16.  Minnesota Statutes 1990, section 290.091, 
subdivision 6, is amended to read: 
    Subd. 6.  [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit 
is allowed against the tax imposed by this chapter on 
individuals, trusts, and estates equal to the minimum tax credit 
for the taxable year.  The minimum tax credit equals the 
adjusted net minimum tax for taxable years beginning after 
December 31, 1988, reduced by the minimum tax credits allowed in 
a prior taxable year.  The credit may not exceed the excess (if 
any) for the taxable year of 
    (1) the regular tax, over 
    (2) the greater of (i) the tentative alternative minimum 
tax, or (ii) zero. 
    (b) The adjusted net minimum tax for a taxable year equals 
the lesser of the net minimum tax or the excess (if any) of 
    (1) the tentative minimum tax, over 
    (2) six seven percent of the sum of 
    (i) adjusted gross income as defined in section 62 of the 
Internal Revenue Code, 
    (ii) interest income as defined in section 290.01, 
subdivision 19a, clause (1), 
    (iii) interest on specified private activity bonds, as 
defined in section 57(a)(5) of the Internal Revenue Code, to the 
extent not included under clause (ii), 
    (iv) depletion as defined in section 57(a)(1) of the 
Internal Revenue Code, less 
    (v) the deductions provided in clauses (3)(i), (3)(ii), and 
(3)(iii) of subdivision 2, paragraph (a), and 
     (vi) the exemption amount determined under subdivision 3. 
     In the case of an individual who is not a Minnesota 
resident for the entire year, adjusted net minimum tax must be 
multiplied by the fraction defined in section 290.06, 
subdivision 2c, paragraph (e).  In the case of a trust or 
estate, adjusted net minimum tax must be multiplied by the 
fraction defined under subdivision 4, paragraph (b). 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
290.0921, subdivision 8, is amended to read: 
    Subd. 8.  [CARRYOVER CREDIT.] (a) A corporation is allowed 
a credit against qualified regular tax for qualified alternative 
minimum tax previously paid.  The credit is allowable only if 
the corporation has no tax liability under this section for the 
taxable year and if the corporation has an alternative minimum 
tax credit carryover from a previous year.  The credit allowable 
in a taxable year equals the lesser of 
    (1) the excess of the qualified regular tax for the taxable 
year over the amount computed under subdivision 1, paragraph 
(a), clause (1), for the taxable year or 
    (2) the carryover credit to the taxable year. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Qualified alternative minimum tax" equals the amount 
determined under subdivision 1 for the taxable year.  
    (2) "Qualified regular tax" means the tax imposed under 
section 290.06, subdivision 1. 
    (c) The qualified alternative minimum tax for a taxable 
year is an alternative minimum tax credit carryover to each of 
the taxable years succeeding the taxable year.  The entire 
amount of the credit must be carried to the earliest taxable 
year to which the amount may be carried.  Any unused portion of 
the credit must be carried to the following taxable year.  No 
credit may be carried to a taxable year in which alternative 
minimum tax was paid. 
     (d) An acquiring corporation may carry over this credit 
from a transferor or distributor corporation in a corporate 
acquisition.  The provisions of section 381 of the Internal 
Revenue Code apply in determining the amount of the carryover, 
if any. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
290.0922, subdivision 1, is amended to read: 
    Subdivision 1.  [IMPOSITION.] (a) In addition to the tax 
imposed by this chapter without regard to this section, the 
franchise tax imposed on a corporation required to file under 
section 290.37 289A.08, subdivision 3, other than a corporation 
having a valid election in effect under section 1362 of the 
Internal Revenue Code of 1986, as amended through December 31, 
1989, for the taxable year includes a tax equal to the following 
amounts: 
     If the sum of the corporation's
Minnesota property, payrolls, and sales
or receipts is:                            the tax equals:
           less than $500,000                    $0
   $   500,000 to $   999,999                  $100
   $ 1,000,000 to $ 4,999,999                  $300
   $ 5,000,000 to $ 9,999,999                $1,000 
   $10,000,000 to $19,999,999                $2,000 
   $20,000,000 or more                       $5,000 
    (b) A tax is imposed annually beginning in 1990 on a 
corporation required to file a return under section 290.41, 
subdivision 1 289A.12, subdivision 3, that has a valid election 
in effect for the taxable year under section 1362 of the 
Internal Revenue Code of 1986, as amended through December 31, 
1989, and on a partnership required to file a return under 
section 290.41, subdivision 1 289A.12, subdivision 3, other than 
a partnership that derives over 80 percent of its income from 
farming.  The tax imposed under this paragraph is due on or 
before the due date of the return for the taxpayer due under 
section 290.41, subdivision 1, for the calendar year following 
the calendar year in which the tax is imposed 289A.18, 
subdivision 1.  The commissioner shall prescribe the return to 
be used for payment of this tax. The tax under this paragraph is 
equal to the following amounts:  
     If the sum of the S corporation's or partnership's 
Minnesota property, payrolls, and sales
or receipts is:                        the tax equals:
             less than $500,000                $0 
     $   500,000 to $   999,999              $100 
     $ 1,000,000 to $ 4,999,999              $300 
     $ 5,000,000 to $ 9,999,999            $1,000 
     $10,000,000 to $19,999,999            $2,000 
     $20,000,000 or more                   $5,000 
    Sec. 19.  Minnesota Statutes 1990, section 290A.03, 
subdivision 8, is amended to read: 
    Subd. 8.  [CLAIMANT.] (a) "Claimant" means a person, other 
than a dependent, who filed a claim authorized by this chapter 
and who was a resident of this state as provided in chapter 290 
during the calendar year for which the claim for relief was 
filed. 
    (b) In the case of a claim relating to rent constituting 
property taxes, the claimant shall have resided in a rented or 
leased unit on which ad valorem taxes or payments made in lieu 
of ad valorem taxes, including payments of special assessments 
imposed in lieu of ad valorem taxes, are payable at some time 
during the calendar year covered by the claim.  
    (c) "Claimant" shall not include a resident of a nursing 
home, intermediate care facility, or long-term residential 
facility whose rent constituting property taxes is paid pursuant 
to the supplemental security income program under title XVI of 
the Social Security Act, the Minnesota supplemental aid program 
under sections 256D.35 to 256D.41, the medical assistance 
program pursuant to title XIX of the Social Security Act, or the 
general assistance medical care program pursuant to section 
256D.03, subdivision 3.  If only a portion of the rent 
constituting property taxes is paid by these programs, the 
resident shall be a claimant for purposes of this chapter, but 
the refund calculated pursuant to section 290A.04 shall be 
multiplied by a fraction, the numerator of which is income as 
defined in subdivision 3, paragraphs (1) and (2), reduced by the 
total amount of income from the above sources other than vendor 
payments under the medical assistance program or the general 
assistance medical care program and the denominator of which is 
income as defined in subdivision 3, paragraphs (1) and (2), plus 
vendor payments under the medical assistance program or the 
general assistance medical care program, to determine the 
allowable refund pursuant to this chapter.  
    (d) Notwithstanding paragraph (c), if the claimant was a 
resident of the nursing home, intermediate care facility or 
long-term residential facility for only a portion of the 
calendar year covered by the claim, the claimant may compute 
rent constituting property taxes by disregarding the rent 
constituting property taxes from the nursing home, intermediate 
care facility, or long-term residential facility and use only 
that amount of rent constituting property taxes or property 
taxes payable relating to that portion of the year when the 
claimant was not in the facility.  The claimant's household 
income is the income for the entire calendar year covered by the 
claim.  
    (e) In the case of a claim for rent constituting property 
taxes of a part-year Minnesota resident, the income and rental 
reflected in this computation shall be for the period of 
Minnesota residency only.  Any rental expenses paid which may be 
reflected in arriving at federal adjusted gross income cannot be 
utilized for this computation.  When two individuals of a 
household are able to meet the qualifications for a claimant, 
they may determine among them as to who the claimant shall be. 
If they are unable to agree, the matter shall be referred to the 
commissioner of revenue whose decision shall be final.  If a 
homestead property owner was a part-year Minnesota resident, the 
income reflected in the computation made pursuant to section 
290A.04 shall be for the entire calendar year, including income 
not assignable to Minnesota. 
     (f) If a homestead is occupied by two or more renters, who 
are not husband and wife, the rent shall be deemed to be paid 
equally by each, and separate claims shall be filed by each.  
The income of each shall be each renter's household income for 
purposes of computing the amount of credit to be allowed. 
    Sec. 20.  Minnesota Statutes 1990, section 290A.19, is 
amended to read: 
     290A.19 [OWNER OR MANAGING AGENT TO FURNISH RENT 
CERTIFICATE.] 
     (a) The owner or managing agent of any property for which 
rent is paid for occupancy as a homestead must furnish a 
certificate of rent constituting property tax to a person who is 
a renter on December 31, in the form prescribed by the 
commissioner.  If the renter moves before December 31, the owner 
or managing agent may give the certificate to the renter at the 
time of moving, or mail the certificate to the forwarding 
address if an address has been provided by the renter.  The 
certificate must be made available to the renter before February 
1 of the year following the year in which the rent was paid.  
The owner or managing agent must retain a duplicate of each 
certificate or an equivalent record showing the same information 
for a period of three years.  The duplicate or other record must 
be made available to the commissioner upon request. 
     (b) The certificate of rent constituting property taxes 
must include the address of the property, including the county, 
and the property tax parcel identification number and any 
additional information that the commissioner determines is 
appropriate. 
     (c) If the owner or managing agent fails to provide the 
renter with a certificate of rent constituting property taxes, 
the commissioner shall allocate the net tax on the building to 
the unit on a square footage basis or other appropriate basis as 
the commissioner determines.  The renter shall supply the 
commissioner with a statement from the county treasurer that 
gives the amount of property tax on the parcel, the address and 
property tax parcel identification number of the property, and 
the number of units in the building. 
    (d) By June 30, for taxes payable in 1990 and May 30 for 
taxes payable in 1991 and thereafter January 31 of the year 
following the year in which the rent was collected, each owner 
or managing agent shall report to the commissioner on a form 
prescribed by the commissioner the net tax pertaining to the 
rental residential part of the property, the total scheduled 
rent, and the fraction computed under section 290A.03, 
subdivision 11.  A copy of the property tax statement for taxes 
payable in that year must be attached. 
    Sec. 21.  Minnesota Statutes 1990, section 297A.15, 
subdivision 5, is amended to read: 
    Subd. 5.  [REFUND; APPROPRIATION.] Notwithstanding the 
provisions of sections 297A.25, subdivision 42, and 297A.257 the 
tax on sales of capital equipment, and construction materials 
and supplies under section 297A.257, shall be imposed and 
collected as if the rate rates under section sections 297A.02, 
subdivision 1, and 297A.021 applied.  Upon application by the 
purchaser, on forms prescribed by the commissioner, a refund 
equal to the reduction in the tax due as a result of the 
application of the exemption under section 297A.25, subdivision 
42, or 297A.257 shall be paid to the purchaser.  In the case of 
building materials qualifying under section 297A.257 where the 
tax was paid by a contractor, application must be made by the 
owner for the sales tax paid by all the contractors, 
subcontractors, and builders for the project.  The application 
must include sufficient information to permit the commissioner 
to verify the sales tax paid for the project.  The application 
shall include information necessary for the commissioner 
initially to verify that the purchases qualified as capital 
equipment under section 297A.25, subdivision 42, or capital 
equipment or construction materials and supplies under section 
297A.257.  No more than two applications for refunds may be 
filed under this subdivision in a calendar year.  Unless 
otherwise specifically provided by this subdivision, the 
provisions of section 289A.40 apply to the refunds payable under 
this subdivision.  There is annually appropriated to the 
commissioner of revenue the amount required to make the refunds. 
     The amount to be refunded shall bear interest at the rate 
in section 270.76 from the date the refund claim is filed with 
the commissioner. 
    Sec. 22.  Minnesota Statutes 1990, section 297A.15, 
subdivision 6, is amended to read: 
    Subd. 6.  [REFUND; APPROPRIATION.] The tax on the gross 
receipts from the sale of items exempt under section 297A.25, 
subdivision 43, must be imposed and collected as if the sale 
were taxable and the rate rates under section sections 297A.02, 
subdivision 1, and 297A.021 applied. 
    Upon application by the owner of the homestead property on 
forms prescribed by the commissioner, a refund equal to the tax 
paid on the gross receipts of the building materials and 
equipment must be paid to the homeowner.  In the case of 
building materials in which the tax was paid by a contractor, 
application must be made by the homeowner for the sales tax paid 
by the contractor.  The application must include sufficient 
information to permit the commissioner to verify the sales tax 
paid for the project.  The contractor must furnish to the 
homeowner a statement of the cost of building materials and the 
sales taxes paid on the materials.  The amount required to make 
the refunds is annually appropriated to the commissioner.  
Interest must be paid on the refund at the rate in section 
270.76 from 60 days after the date the refund claim is filed 
with the commissioner. 
    Sec. 23.  Minnesota Statutes 1990, section 541.07, is 
amended to read: 
     541.07 [TWO- OR THREE-YEAR LIMITATIONS.] 
     Except where the Uniform Commercial Code, this section, 
section 148A.06, or section 541.073 otherwise prescribes, the 
following actions shall be commenced within two years: 
     (1) For libel, slander, assault, battery, false 
imprisonment, or other tort, resulting in personal injury, and 
all actions against physicians, surgeons, dentists, other health 
care professionals as defined in section 145.61, and 
veterinarians as defined in chapter 156, hospitals, sanitariums, 
for malpractice, error, mistake or failure to cure, whether 
based on contract or tort; provided a counterclaim may be 
pleaded as a defense to any action for services brought by a 
physician, surgeon, dentist, or other health care professional 
or veterinarian, hospital or sanitarium, after the limitations 
herein described notwithstanding it is barred by the provisions 
of this chapter, if it was the property of the party pleading it 
at the time it became barred and was not barred at the time the 
claim sued on originated, but no judgment thereof except for 
costs can be rendered in favor of the party so pleading it; 
     (2) Upon a statute for a penalty or forfeiture, except as 
provided in sections 541.074 and 541.075; 
     (3) For damages caused by a dam, other than a dam used for 
commercial purposes; but as against one holding under the 
preemption or homestead laws, the limitations shall not begin to 
run until a patent has been issued for the land so damaged; 
    (4) Against a master for breach of an indenture of 
apprenticeship; the limitation runs from the expiration of the 
term of service; 
    (5) For the recovery of wages or overtime or damages, fees 
or penalties accruing under any federal or state law respecting 
the payment of wages or overtime or damages, fees or penalties 
except, that if the employer fails to submit payroll records by 
a specified date upon request of the department of labor and 
industry or if the nonpayment is willful and not the result of 
mistake or inadvertence, the limitation is three years.  (The 
term "wages" means all remuneration for services or employment, 
including commissions and bonuses and the cash value of all 
remuneration in any medium other than cash, where the 
relationship of master and servant exists and the term "damages" 
means single, double, or treble damages, accorded by any 
statutory cause of action whatsoever and whether or not the 
relationship of master and servant exists); 
    (6) For damages caused by the establishment of a street or 
highway grade or a change in the originally established grade; 
    (7) For sales or use taxes imposed by the laws of any other 
state; 
    (8) Against the person who applies the pesticide for injury 
or damage to property resulting from the application, but not 
the manufacture or sale, of a pesticide. 
    Sec. 24.  Laws 1991, chapter 291, article 7, section 27, is 
amended to read:  
    Sec. 27.  [EFFECTIVE DATE.] 
    Sections 2, 4, 9, 15 to 19, 21 to 24, and 26 are effective 
for taxable years beginning after December 31, 1990, provided 
that the carryover for the credit provided under Minnesota 
Statutes, section 290.068, subdivision 6, that is repealed by 
section 26, remains in effect for taxable years beginning before 
2003.  Sections 10 and 14 are effective the day following final 
enactment.  Sections 1, 3, 11, 12, 13, 20, and 25 are effective 
for taxable years beginning after December 31, 1989. 
    Sec. 25.  [INSTRUCTION TO REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall delete the note after section 290A.19.  Effective 
August 1, 1990, the amendment to Minnesota Statutes, section 
290A.19, made by Laws 1990, chapter 480, article 1, section 38, 
paragraph (c), is of no effect.  
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1990, sections 289A.12, subdivision 1; 
290.48, subdivision 7; and 297.32, subdivision 7, are repealed.  
Minnesota Rules, parts 8130.6100 and 8130.6800, are repealed.  
    Sec. 27.  [EFFECTIVE DATES.] 
    Sections 2, 3, 7 to 9, 11, 17, 18, 24, and 26 are effective 
the day following final enactment.  
    Sections 4, 5, 6, and 12 are effective for refund offsets 
made on or after July 1, 1992.  
    Section 10 is effective for payments with corporate 
franchise tax returns due on or after January 1, 1992.  
    Section 13 is effective for returns that would have been 
due after the date of final enactment.  
    Section 14 is effective for tax years beginning after 
December 31, 1991.  
    Sections 15 and 16 are effective for tax years beginning 
after December 31, 1990.  
    Section 19 is effective beginning for claims based on rent 
paid in 1992.  
    Section 20 is effective beginning with returns based on 
rent collected in 1992.  
    Sections 21 and 22 are effective retroactively for all 
purchases made after December 31, 1991.  
    Section 23 is effective for causes of action arising on or 
after the day following final enactment, and for causes of 
action arising before that date that have not expired as of the 
day following final enactment. 

                                ARTICLE 8

                           SALES AND USE TAXES
    Section 1.  Minnesota Statutes 1990, section 216C.06, is 
amended by adding a subdivision to read: 
    Subd. 13.  [PHOTOVOLTAIC DEVICE.] "Photovoltaic device" 
means a system of components that generates electricity from 
incident sunlight by means of the photovoltaic effect, whether 
or not the device is able to store the energy produced for later 
use. 
    Sec. 2.  Minnesota Statutes 1990, section 289A.11, 
subdivision 3, is amended to read: 
    Subd. 3.  [WHO MUST FILE RETURN.] For purposes of the sales 
tax, a return must be filed by a retailer who is required to 
hold a permit.  For the purposes of the use tax, a return must 
be filed by a retailer required to collect the tax and by a 
person buying any items, the storage, use or other consumption 
of which is subject to the use tax, who has not paid the use tax 
to a retailer required to collect the tax.  The returns must be 
signed by the person filing the return or by the person's agent 
duly authorized in writing.  The signature requirement can be 
waived by agreement, in writing, between the commissioner and 
the person required to file the returns for a period not to 
exceed one year from the date of the agreement.  The agreement 
must contain an admission of liability by the taxpayer for the 
taxes reported on all returns filed by the taxpayer without a 
signature during the period of the waiver, to the extent such 
taxes are not timely paid. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
289A.18, subdivision 4, is amended to read: 
    Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
tax returns must be filed on or before the 20th day of the month 
following the close of the preceding reporting period, except 
that annual use tax returns provided for under section 289A.11, 
subdivision 1, must be filed by April 15 following the close of 
the calendar year.  In addition, on or before June 20 of a year, 
a retailer who has a May liability of $1,500 or more must file a 
return with the commissioner for one-half of the estimated June 
liability, in addition to filing a return for the May 
liability.  On or before August 20 of a year, the retailer must 
file a return showing the actual June liability.  
    (b) Returns filed by retailers required to remit 
liabilities by means of funds transfer under section 289A.20, 
subdivision 4, paragraph (d), are due on or before the 25th day 
of the month following the close of the preceding reporting 
period.  Returns filed under the second sentence of paragraph 
(a) by a retailer required to remit by means of funds transfer 
are due on June 25, and on or before August 25 of a year, the 
retailer must file a return showing the actual June liability. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
289A.20, subdivision 4, is amended to read: 
    Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
chapter 297A are due and payable to the commissioner monthly on 
or before the 20th day of the month following the month in which 
the taxable event occurred or following another reporting period 
as the commissioner prescribes, except that use taxes due on an 
annual use tax return as provided under section 289A.11, 
subdivision 1, are payable by April 15 following the close of 
the calendar year. 
    (b) A vendor having a liability of $1,500 or more in May of 
a year must remit the June liability in the following manner: 
    (1) On or before June 20 of the year, the vendor must remit 
the actual May liability and one-half of the estimated June 
liability to the commissioner.  
    (2) On or before August 20 of the year, the vendor must pay 
any additional amount of tax not remitted in June. 
    (3) If the vendor is required to remit by means of funds 
transfer as provided in paragraph (d), the vendor may remit the 
May liability as provided for in paragraph (e), but must remit 
one-half of the estimated June liability on or before June 14.  
The remaining amount of the June liability is due on August 14. 
    (c) When a retailer located outside of a city that imposes 
a local sales and use tax collects use tax to be remitted to 
that city, the retailer is not required to remit the tax until 
the amount collected reaches $10. 
    (d) A vendor having a liability of $240,000 or more during 
a fiscal year ending June 30 must remit all liabilities in the 
subsequent calendar year by means of a funds transfer as defined 
in section 336.4A-104, paragraph (a).  The funds transfer 
payment date, as defined in section 336.4A-401, must be on or 
before the date the tax is due the 14th day of the month 
following the month in which the taxable event occurred, except 
for the one-half of the estimated June liability, which is due 
with the May liability on June 14.  The remaining amount of the 
June liability is due on August 14.  If the date the tax is due 
is not a funds transfer business day, as defined in section 
336.4A-105, paragraph (a), clause (4), the payment date must be 
on or before the funds transfer business day next following the 
date the tax is due. 
    (e) If the vendor required to remit by electronic funds 
transfer as provided in paragraph (d) is unable due to 
reasonable cause to determine the actual sales and use tax due 
on or before the due date for payment, the vendor may remit an 
estimate of the tax owed using one of the following options: 
    (1) 100 percent of the tax reported on the previous month's 
sales and use tax return; 
    (2) 100 percent of the tax reported on the sales and use 
tax return for the same month in the previous calendar year; or 
    (3) 95 percent of the actual tax due. 
    Any additional amount of tax that is not remitted on or 
before the due date for payment, must be remitted with the 
return. A vendor must notify the commissioner of the option that 
will be used to estimate the tax due, and must obtain approval 
from the commissioner to switch to another option.  If a vendor 
fails to remit the actual liability or does not remit using one 
of the estimate options by the due date for payment, the vendor 
must remit actual liability as provided in paragraph (d) in all 
subsequent periods.  This paragraph does not apply to the June 
sales and use liability. 
    Sec. 5.  [297.031] [REFUND FOR TAX CONSTITUTING BAD DEBT.] 
    Subdivision 1.  [ADOPTION OF RULES.] The commissioner may 
adopt rules providing a refund of the tax paid under section 
297.02 if the tax paid qualifies as a bad debt under section 
166(a) of the Internal Revenue Code of 1986, as amended through 
December 31, 1991. 
    Subd. 2.  [CREDIT AGAINST TAX.] The commissioner may credit 
the amount determined under this section against taxes otherwise 
payable under this chapter by the taxpayer. 
    Subd. 3.  [CLAIMS; TIME LIMIT.] Claims for refund must be 
filed with the commissioner within one year of the filing date 
of the taxpayer's federal income tax return containing the bad 
debt deduction that is being claimed.  Claimants under this 
section are subject to the notice requirements of section 
289A.38, subdivision 7. 
    Subd. 4.  [ANNUAL APPROPRIATION.] There is appropriated 
annually from the general fund to the commissioner the amount 
necessary to make the refunds provided by this section. 
    Sec. 6.  [297.321] [REFUND FOR TAX CONSTITUTING BAD DEBT.] 
    Subdivision 1.  [ADOPTION OF RULES.] The commissioner may 
adopt rules providing a refund of the tax paid under section 
297.32 if the tax paid qualifies as a bad debt under section 
166(a) of the Internal Revenue Code of 1986, as amended through 
December 31, 1991. 
    Subd. 2.  [CREDIT AGAINST TAX.] The commissioner may credit 
the amount determined under this section against taxes otherwise 
payable under this chapter by the taxpayer. 
    Subd. 3.  [CLAIMS; TIME LIMIT.] Claims for refund must be 
filed with the commissioner within one year of the filing date 
of the taxpayer's federal income tax return containing the bad 
debt deduction that is being claimed.  Claimants under this 
section are subject to the notice requirements of section 
289A.38, subdivision 7. 
    Subd. 4.  [ANNUAL APPROPRIATION.] There is appropriated 
annually from the general fund to the commissioner the amount 
necessary to make the refunds provided by this section. 
    Sec. 7.  Minnesota Statutes 1990, section 297A.07, is 
amended to read: 
    297A.07 [REVOCATION OF PERMITS.] 
    Subdivision 1.  [HEARINGS.] Whenever If any person fails to 
comply with any provision of sections 297A.01 to 297A.44 this 
chapter or any rule of the commissioner the rules adopted under 
sections 297A.01 to 297A.44 this chapter, without reasonable 
cause, the commissioner, upon may schedule a hearing, after 
giving the person 30 days' notice in writing specifying the time 
and place of hearing and the reason for the proposed revocation 
and requiring the person to show cause why the permit or permits 
should not be revoked, may for reasonable cause, revoke or 
suspend any one or more of the permits held by such person.  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 notice of a deficiency 
an order of assessment.  
    Subd. 2.  [CONTESTING OF REVOCATION.] A person planning to 
contest the revocation of a sales tax permit must give the 
commissioner written notice of intent to do so five calendar 
days before the date of the hearing.  If the person does not 
provide the notice and has no reasonable justification for not 
doing so, or does not attend the hearing, the commissioner may 
request a finding of default and recommendation for revocation 
by the administrative law judge.  
    Subd. 3.  [NEW PERMITS AFTER REVOCATION.] The commissioner 
shall not issue a new permit or reinstate a revoked permit after 
revocation except upon application accompanied by unless the 
taxpayer applies for a permit and provides reasonable evidence 
of the intention of the applicant to comply with the 
aforementioned provisions sales and use tax laws and rules.  The 
commissioner may condition require the issuance of a new permit 
to such applicant on the supplying of such to supply security, 
in addition to that authorized by section 297A.28, as is 
reasonably necessary to insure compliance with 
the aforementioned provisions sales and use tax laws and rules. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
297A.135, subdivision 1, is amended to read: 
    Subdivision 1.  [TAX IMPOSED.] A tax of $7.50 is imposed on 
the lease or rental in this state on a daily or weekly basis for 
not more than 28 days of a passenger automobile as defined in 
section 168.011, subdivision 7, a van as defined in section 
168.011, subdivision 28, or a pickup truck as defined in section 
168.011, subdivision 29.  The tax does not apply to the lease or 
rental of a hearse or limousine used in connection with a burial 
or funeral service.  The tax does not apply if the term of the 
lease or rental is longer than 28 days.  It applies whether or 
not the vehicle is licensed in the state. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
297A.135, is amended by adding a subdivision to read: 
    Subd. 4.  [EXEMPTION.] The tax imposed by this section does 
not apply to a lease or rental if the vehicle is to be used by 
the lessee to provide a licensed taxi service. 
     Sec. 10.  [297A.136] [TAX ON 900 PAY-PER-CALL SERVICES.] 
     Subdivision 1.  [TAX IMPOSED.] A tax of $.50 is imposed for 
each call placed to a 900 service if that service originates 
from and is charged to a telephone located in this state. 
     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
"900 service" means pay-per-call 900 information services 
provided through a telephone exchange, commonly accessed by 
dialing 1-900, 1-960, 1-976, or other similar prefix. 
     Subd. 3.  [PAYMENT; ADMINISTRATION.] Liability for the tax 
imposed by this section is on the person making the call.  
Liability for collection is on the person providing access to a 
dial tone.  The tax imposed in this section must be reported and 
paid to the commissioner of revenue with the taxes imposed in 
this chapter.  It is subject to the same interest, penalty, and 
other provisions provided for sales and use taxes under chapter 
289A and this chapter.  The commissioner has the same powers to 
access and collect the tax that are given the commissioner in 
chapters 270 and 289A and this chapter to assess and collect 
sales and use tax. 
    Sec. 11.  Minnesota Statutes 1990, section 297A.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  [IMPOSITION.] For the privilege of using, 
storing or consuming in Minnesota tangible personal property or 
taxable services purchased for use, storage, or consumption in 
this state, a use tax is imposed on every person in this state 
at the rate of tax imposed under section 297A.02 on the sales 
price of sales at retail of the items, unless the tax imposed by 
section 297A.02 was paid on the sales price.  
    A use tax is imposed on every person who uses, stores, or 
consumes tangible personal property in Minnesota which has been 
manufactured, fabricated, or assembled by the person from 
materials, either within or without this state, at the rate of 
tax imposed under section 297A.02 on the sales price of sales at 
retail of the materials contained in the tangible personal 
property, unless the tax imposed by section 297A.02 was paid on 
the sales price. 
    Sec. 12.  Minnesota Statutes 1990, section 297A.15, 
subdivision 5, is amended to read: 
    Subd. 5.  [REFUND; APPROPRIATION.] Notwithstanding the 
provisions of sections section 297A.25, subdivision subdivisions 
42 and 297A.257 and 50, the tax on sales of capital equipment, 
and construction materials and supplies under section 297A.257 
297A.25, subdivision 50, shall be imposed and collected as if 
the rate under section 297A.02, subdivision 1, applied.  Upon 
application by the purchaser, on forms prescribed by the 
commissioner, a refund equal to the reduction in the tax due as 
a result of the application of the exemption under section 
297A.25, subdivision 42 or 50, or 297A.257 shall be paid to the 
purchaser.  In the case of building materials qualifying under 
section 297A.257 297A.25, subdivision 50, where the tax was paid 
by a contractor, application must be made by the owner for the 
sales tax paid by all the contractors, subcontractors, and 
builders for the project.  The application must include 
sufficient information to permit the commissioner to verify the 
sales tax paid for the project.  The application shall include 
information necessary for the commissioner initially to verify 
that the purchases qualified as capital equipment under section 
297A.25, subdivision 42, or capital equipment or construction 
materials and supplies under section 297A.257 297A.25, 
subdivision 50.  No more than two applications for refunds may 
be filed under this subdivision in a calendar year.  No owner 
may apply for a refund based on the exemption under section 
297A.25, subdivision 50, before July 1, 1993.  Unless otherwise 
specifically provided by this subdivision, the provisions of 
section 289A.40 apply to the refunds payable under this 
subdivision.  There is annually appropriated to the commissioner 
of revenue the amount required to make the refunds. 
     The amount to be refunded shall bear interest at the rate 
in section 270.76 from the date the refund claim is filed with 
the commissioner. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
297A.21, subdivision 4, is amended to read: 
    Subd. 4.  [REQUIRED REGISTRATION BY OUT-OF-STATE RETAILER 
NOT MAINTAINING PLACE OF BUSINESS IN MINNESOTA.] (a) A retailer 
making retail sales from outside this state to a destination 
within this state and not maintaining a place of business in 
this state shall file an application for a permit pursuant to 
section 297A.04 and shall collect and remit the use tax as 
provided in section 297A.16 if the retailer engages in the 
regular or systematic soliciting of sales from potential 
customers in this state by: 
     (1) the distribution, by mail or otherwise, without regard 
to the state from which such distribution originated or in which 
the materials were prepared, of catalogs, periodicals, 
advertising flyers, or other written solicitations of business 
to customers in this state; 
     (2) display of advertisements on billboards or other 
outdoor advertising in this state; 
     (3) advertisements in newspapers published in this state; 
     (4) advertisements in trade journals or other periodicals 
the circulation of which is primarily within this state; 
     (5) advertisements in a Minnesota edition of a national or 
regional publication or a limited regional edition in which this 
state is included of a broader regional or national publication 
which are not placed in other geographically defined editions of 
the same issue of the same publication; 
     (6) advertisements in regional or national publications in 
an edition which is not by its contents geographically targeted 
to Minnesota but which is sold over the counter in Minnesota or 
by subscription to Minnesota residents; 
     (7) advertisements broadcast on a radio or television 
station located in Minnesota; or 
     (8) any other solicitation by telegraphy, telephone, 
computer data base, cable, optic, microwave, or other 
communication system. 
     (b) The location within or without this state of vendors 
independent of the retailer which provide products or services 
to the retailer in connection with its solicitation of customers 
within this state, including such products and services as 
creation of copy, printing, distribution, and recording, is not 
to be taken into account in the determination of whether the 
retailer is required to collect use tax.  Paragraph (a) shall be 
construed without regard to the state from which distribution of 
the materials originated or in which they were prepared.  
     (c) A retailer not maintaining a place of business in this 
state shall be presumed, subject to rebuttal, to be engaged in 
regular solicitation within this state if it engages in any of 
the activities in paragraph (a) and (1) makes 100 or more retail 
sales from outside this state to destinations within this state 
during a period of 12 consecutive months, or (2) makes ten or 
more retail sales totaling more than $100,000 from outside this 
state to destinations within this state during a period of 12 
consecutive months. 
    (d) A retailer not maintaining a place of business in this 
state shall not be required to collect use tax imposed by any 
local governmental unit or subdivision of this state and this 
section does not subject such a retailer to any regulation of 
any local unit of government or subdivision of this state.  This 
paragraph does not apply to the tax imposed under section 
297A.021. 
    Sec. 14.  Minnesota Statutes 1990, section 297A.25, 
subdivision 7, is amended to read: 
    Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
sale of and storage, use or consumption of the following 
petroleum products are exempt:  
    (1) products upon which a tax has been imposed and paid 
under the provisions of chapter 296, and no refund has been or 
will be allowed because the buyer used the fuel for nonhighway 
use, or 
    (2) products which are used in the improvement of 
agricultural land by constructing, maintaining, and repairing 
drainage ditches, tile drainage systems, grass waterways, water 
impoundment, and other erosion control structures; or 
    (3) products purchased by a transit system receiving 
financial assistance under section 174.24 or 473.384.  
    Sec. 15.  Minnesota Statutes 1990, section 297A.25, 
subdivision 11, is amended to read: 
    Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
all sales, including sales in which title is retained by a 
seller or a vendor or is assigned to a third party under an 
installment sale or lease purchase agreement under section 
465.71, of tangible personal property to, and all storage, use 
or consumption of such property by, the United States and its 
agencies and instrumentalities, the University of Minnesota, 
state universities, community colleges, technical colleges, 
state academies, the Minnesota center for arts education, and 
political subdivisions of the state school districts are exempt. 
As used in this subdivision, "school districts" means public 
school entities and districts of every kind and nature organized 
under the laws of the state of Minnesota, including, without 
limitation, school districts, intermediate school districts, 
education districts, educational cooperative service units, 
secondary vocational cooperative centers, special education 
cooperatives, joint purchasing cooperatives, telecommunication 
cooperatives, regional management information centers, technical 
colleges, joint vocational technical districts, and any 
instrumentality of a school district, as defined in section 
471.59.  Sales exempted by this subdivision include sales under 
section 297A.01, subdivision 3, paragraph (f), but do not 
include sales under section 297A.01, subdivision 3, paragraph 
(j), clause (vii).  Sales to hospitals and nursing homes owned 
and operated by political subdivisions of the state are exempt 
under this subdivision.  The sales to and exclusively for the 
use of libraries, as defined in section 134.001, of books, 
periodicals, audio-visual materials and equipment, photocopiers 
for use by the public, and all cataloging and circulation 
equipment, and cataloging and circulation software for library 
use are exempt under this subdivision.  Sales of supplies and 
equipment used in the operation of an ambulance service owned 
and operated by a political subdivision of the state are exempt 
under this subdivision provided that the supplies and equipment 
are used in the course of providing medical care; motor vehicle 
parts are not exempt under this provision.  This exemption shall 
not apply to building, construction or reconstruction materials 
purchased by a contractor or a subcontractor as a part of a 
lump-sum contract or similar type of contract with a guaranteed 
maximum price covering both labor and materials for use in the 
construction, alteration, or repair of a building or facility.  
This exemption does not apply to construction materials 
purchased by tax exempt entities or their contractors to be used 
in constructing buildings or facilities which will not be used 
principally by the tax exempt entities.  This exemption does not 
apply to the leasing of a motor vehicle as defined in section 
297B.01, subdivision 5, except for leases entered into by the 
United States or its agencies or instrumentalities.  The tax 
imposed on sales to political subdivisions of the state under 
this section applies to all political subdivisions other than 
those explicitly exempted under this subdivision, 
notwithstanding sections 115A.69, subdivision 6, 116A.25, 
360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
to the contrary enacted before 1992. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
297A.25, subdivision 12, as amended by Laws 1992, chapter 363, 
article 1, section 19, subdivision 1, is amended to read: 
    Subd. 12.  [OCCASIONAL SALES.] (a) The gross receipts from 
the isolated or occasional sale of tangible personal property in 
Minnesota not made in the normal course of business of selling 
that kind of property, and the storage, use, or consumption of 
property acquired as a result of such a sale are exempt.  
    (b) This exemption does not apply to sales of tangible 
personal property primarily used in a trade or business unless 
(1) the sale occurs in a transaction subject to or described in 
section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 
1031, or 1033 of the Internal Revenue Code of 1986, as amended 
through December 31, 1990; (2) the sale is between members of an 
affiliated a controlled group as defined in section 
1504(a) 1563(a) of the Internal Revenue Code of 1986, as amended 
through December 31, 1990; (3) the sale is a sale of farm 
machinery; (4) the sale is a farm auction sale; or (5) the sale 
is a sale of substantially all of the assets of a trade or 
business conducted by an individual or by a partnership all of 
the partners of which are individuals; or (6) the total amount 
of gross receipts from the sale of trade or business property 
made during the calendar month of the sale and the preceding 11 
calendar months does not exceed $1,000. 
    (c) For purposes of this subdivision, the following terms 
have the meanings given.  
     (1) A "farm auction" is a public auction conducted by a 
licensed auctioneer if substantially all of the property sold 
consists of property used in the trade or business of farming 
and property not used primarily in a trade or business. 
    (2) "Trade or business" includes the assets of a separate 
division, branch, or identifiable segment of a trade or business 
if, before the sale, the income and expenses attributable to the 
separate division, branch, or identifiable segment could be 
separately ascertained from the books of account or record (the 
lease or rental of an identifiable segment does not qualify for 
the exemption). 
    (3) A "sale of substantially all of the assets of a trade 
or business" must occur as a single transaction or a series of 
related transactions occurring within the 12-month period 
beginning on the date of the first sale of assets intended to 
qualify for the exemption provided in paragraph (b), clause (5). 
    Sec. 17.  Minnesota Statutes 1990, section 297A.25, 
subdivision 24, is amended to read: 
    Subd. 24.  [NONPROFIT TICKETS OR ADMISSIONS.] The gross 
receipts from the sale or use of tickets or admissions to the 
premises of or events sponsored by an association, corporation 
or other group of persons which provides an opportunity for 
citizens of the state to participate in the creation, 
performance or appreciation of the arts and which either (1) 
qualifies as a tax-exempt organization within the meaning of 
Minnesota Statutes 1980, section 290.05, subdivision 1, clause 
(i), or (2) is a municipal board that promotes cultural and arts 
activities are exempt.  The exemption provided with respect to a 
municipal board applies only to tickets and admissions to events 
sponsored by the board.  
    Sec. 18.  Minnesota Statutes 1990, section 297A.25, 
subdivision 34, is amended to read: 
    Subd. 34.  [MOTOR VEHICLES.] The gross receipts from the 
sale or use of any motor vehicle taxable under the provisions of 
the motor vehicle excise tax laws of Minnesota shall be exempt 
from taxation under this chapter.  Notwithstanding section 
297A.25, subdivision 11, the exemption provided under this 
subdivision remains in effect for motor vehicles purchased by 
political subdivisions of the state if the vehicles are not 
subject to taxation under chapter 297B. 
    Sec. 19.  Minnesota Statutes 1990, section 297A.25, 
subdivision 45, is amended to read: 
    Subd. 45.  [SHIPS USED IN INTERSTATE COMMERCE.] The gross 
receipts from sales of, and use, storage, or consumption of: 
    (1) repair, replacement, and rebuilding parts and 
materials, and lubricants, for ships or vessels used or to be 
used principally in interstate or foreign commerce; and 
    (2) vessels with a gross registered tonnage of at least 
3,000 tons are exempt. 
    Sec. 20.  Minnesota Statutes 1990, section 297A.25, is 
amended by adding a subdivision to read: 
    Subd. 47.  [PHOTOVOLTAIC DEVICES.] The gross receipts from 
the sale of photovoltaic devices, as defined in section 216C.06, 
subdivision 13, and the materials used to install, construct, 
repair, or replace them are exempt if the devices are used as an 
electric power source. 
    Sec. 21.  Minnesota Statutes 1990, section 297A.25, is 
amended by adding a subdivision to read: 
    Subd. 48.  [WIND ENERGY CONVERSION SYSTEMS.] The gross 
receipts from the sale of wind energy conversion systems, as 
defined in section 216C.06, subdivision 12, and the materials 
used to manufacture, install, construct, repair, or replace them 
are exempt if the systems are used as an electric power source. 
    Sec. 22.  Minnesota Statutes 1990, section 297A.25, is 
amended by adding a subdivision to read: 
    Subd. 49.  [AIR COOLING EQUIPMENT.] The gross receipts from 
the sale of equipment used for air cooling are exempt, if the 
equipment is purchased for conversion or replacement of an 
existing groundwater based once-through cooling system as 
required under section 103G.271, subdivision 5. 
    Sec. 23.  Minnesota Statutes 1990, section 297A.25, is 
amended by adding a subdivision to read: 
    Subd. 50.  [CONSTRUCTION MATERIALS FOR RECYCLING 
FACILITIES.] Construction materials and supplies are exempt from 
the tax imposed under this chapter, regardless of whether 
purchased by the owner or a contractor, subcontractor, or 
builder, if: 
    (1) the materials and supplies are used or consumed in 
constructing a new facility which reduces the flow of solid 
waste by creating a market for recycled office waste; 
    (2) the recycling process produces pulp or paper from 
high-grade office waste; and 
    (3) the total capital investment made within a four-year 
period for construction of the facility exceeds $50,000,000. 
    Sec. 24.  [297A.46] [LOCAL GOVERNMENTS EXEMPT FROM LOCAL 
SALES TAXES.] 
    Notwithstanding any other law, ordinance, or charter 
provision, no political subdivision of the state shall be 
required to pay any general sales tax imposed by a political 
subdivision of the state.  This provision does not apply to the 
local option tax under section 297A.021. 
    Sec. 25.  [297A.47] [REPORTING OF SALES TAX ON MINNESOTA 
GOVERNMENTS.] 
    The commissioner shall estimate the amount of revenues 
derived from imposing the tax under this chapter and chapter 
297B on state agencies and political subdivisions for each 
fiscal year and shall report this amount to the commissioner of 
finance before the time for filing reports for the fiscal year 
with the United States Department of Commerce.  The commissioner 
of finance in reporting the sales and motor vehicle excise tax 
collections to the United States Department of Commerce shall 
exclude this amount from the sales and motor vehicle 
collections.  Sales and motor vehicle excise tax revenues 
received from political subdivisions must be reported as 
intergovernmental grants or similar intergovernmental revenue.  
The amount of the sales and motor vehicle excise tax paid by 
state agencies must be reported as reduced state expenditures. 
    Sec. 26.  Minnesota Statutes 1990, section 297B.01, 
subdivision 8, is amended to read: 
    Subd. 8.  "Purchase price" means the total consideration 
valued in money for a sale, whether paid in money or otherwise, 
provided however, that when a motor vehicle is taken in trade as 
a credit or as part payment on a motor vehicle taxable under 
Laws 1971, chapter 853, the credit or trade-in value allowed by 
the person selling the motor vehicle shall be deducted from the 
total selling price to establish the purchase price of the 
vehicle being sold and the trade-in allowance allowed by the 
seller shall constitute the purchase price of the motor vehicle 
accepted as a trade-in.  The purchase price in those instances 
where the motor vehicle is acquired by gift or by any other 
transfer for a nominal or no monetary consideration shall also 
include the average value of similar motor vehicles, established 
by standards and guides as determined by the motor vehicle 
registrar.  The purchase price in those instances where a motor 
vehicle is manufactured by a person who registers it under the 
laws of this state shall mean the manufactured cost of such 
motor vehicle and manufactured cost shall mean the amount 
expended for materials, labor and other properly allocable costs 
of manufacture, except that in the absence of actual 
expenditures for the manufacture of a part or all of the motor 
vehicle, manufactured costs shall mean the reasonable value of 
the completed motor vehicle.  
    The term "purchase price" shall not include the portion of 
the value of a motor vehicle due solely to modifications 
necessary to make the motor vehicle handicapped accessible.  The 
term "purchase price" shall not include the transfer of a motor 
vehicle by way of gift between a husband and wife or parent and 
child, nor shall it include the transfer of a motor vehicle by a 
guardian to a ward when there is no monetary consideration and 
the title to such vehicle was registered in the name of the 
guardian, as guardian, only because the ward was a minor.  There 
shall not be included in "purchase price" the amount of any tax 
imposed by the United States upon or with respect to retail 
sales whether imposed upon the retailer or the consumer.  
    Sec. 27.  [ROSEVILLE LODGING TAX.] 
    Subdivision 1.  [TAX AUTHORIZED; USE OF REVENUES.] 
Notwithstanding Minnesota Statutes, section 477A.016, or other 
law, in addition to a tax authorized in Minnesota Statutes, 
section 469.190, the governing body of the city of Roseville may 
impose a tax of up to two percent on the gross receipts from the 
furnishing for consideration of lodging at a hotel, motel, 
rooming house, tourist court, or resort, other than the renting 
or leasing of it for a continuous period of 30 days or more, 
located in the city.  The city may agree with the commissioner 
of revenue that a tax imposed under this section shall be 
collected by the commissioner together with the tax imposed by 
Minnesota Statutes, chapter 297A, and subject to the same 
interest, penalties, and other rules and that its proceeds, less 
the cost of collection, shall be remitted to the city.  The 
proceeds of the tax shall be dedicated to and used to pay the 
costs of the construction, debt service, operation, and 
maintenance of a public multiuse speed skating/bandy facility 
within the city to the extent the costs exceed any revenues 
derived from the lease, rental, or operation of the facility.  
    Subd. 2.  [REFERENDUM.] If the city intends to impose the 
tax authorized by this section, it shall conduct a referendum on 
the issue.  The question of imposing the tax must be submitted 
to the voters at a general election.  The tax may not be imposed 
unless a majority of votes cast on the question of imposing the 
tax are in the affirmative.  The commissioner of revenue shall 
prepare a suggested form of question to be presented at the 
election.  The referendum must be held at a general election 
before December 1, 1992.  This subdivision applies 
notwithstanding any city charter provision to the contrary. 
    Sec. 28.  [OCCASIONAL SALES; RETROACTIVE DATE; REFUNDS.] 
    No refunds of tax may be paid due to the retroactive 
effective date of section 16 except as provided in this section. 
A purchaser must file a claim for refund containing the 
information required in Minnesota Statutes, section 289A.50 and 
any other information required by the commissioner, including 
receipts or other proof of payment.  A purchaser is considered a 
taxpayer for purposes of section 289A.50.  Notwithstanding 
section 289A.50, subdivision 2, a vendor who has collected a tax 
from the purchaser may not claim a refund under this section. 
    Sec. 29.  [COMMISSIONER OF REVENUE; TEMPORARY POWERS.] 
    Subdivision 1.  [APPLICABILITY.] This section gives the 
commissioner of revenue certain temporary powers.  These powers 
apply only to taxes imposed under Minnesota Statutes, chapter 
297A, and local taxes administered by the commissioner under 
Minnesota Statutes, chapters 289A and 297A. 
    Subd. 2.  [PAYMENT OF TAXES.] The commissioner may 
establish additional due dates, applicable to certain groups of 
taxpayers, for the payment of taxes.  Unless the commissioner 
has the written consent of the taxpayer, the additional payment 
dates must not require the taxpayer to pay the tax earlier than 
the payment dates now provided by statute or rule.  The 
commissioner may accept various forms of payment, including, but 
not limited to, financial transaction cards and electronic funds 
transfer.  
    Subd. 3.  [FILING OF RETURN.] The commissioner may 
establish additional dates, applicable to certain groups of 
taxpayers, for the filing of tax returns.  Unless the 
commissioner has the written consent of the taxpayer, the return 
due date must not be earlier than the due date now provided by 
statute or rule.  In conducting pilot studies, the commissioner 
may use tax return forms with varying formats, accept electronic 
filed returns, and waive the taxpayer signature requirements.  
    Subd. 4.  [AGREEMENTS.] The commissioner may enter written 
agreements with taxpayers that provide for the payment of taxes 
or the filing of returns at dates earlier than now provided by 
statute or rule.  The commissioner and the taxpayer may also 
agree in writing to other changes from the statutory or rule 
requirements related to the administration of these taxes.  If 
the taxpayer agrees to pay taxes at a date earlier than provided 
by statute, the commissioner may negotiate payments to the 
taxpayer to compensate in part or in full for the loss incurred 
as a result of the accelerated payment.  Included under this 
authority, the commissioner may agree to let the taxpayer keep a 
percentage of the taxes collected. 
    Subd. 5.  [PERMITS; APPLICATION; REVOCATION.] The 
commissioner may establish procedures for the issuance, renewal, 
revocation, and cancellation of sales tax permits.  These 
procedures may change the permit application process, establish 
permit renewal procedures and timeframes, and alter the sales 
and use tax permit revocation process.  These procedures must 
not impair the statutory due process rights of the taxpayer, 
except with the taxpayer's consent. 
    Subd. 6.  [PROCEDURE; APPROVAL.] Pilot studies proposed 
under these authorities must be presented to the chairs of the 
house of representatives tax committee and the senate committee 
on taxes and tax laws.  No study may be undertaken without the 
approval of both chairs.  If either chair fails to respond 
within 15 days after the proposal is presented, that chair is 
considered to have approved the study.  If the study is 
approved, the commissioner will initially seek participation on 
a voluntary basis from within the targeted taxpayer group. 
    Subd. 7.  [ADMINISTRATIVE PROCEDURES ACT.] The powers 
granted under this section are not subject to the provisions of 
Minnesota Statutes, chapter 14. 
    Subd. 8.  [EXPIRATION DATE.] This section expires June 30, 
1994.  Within 90 days following the expiration date, the 
commissioner will prepare a report on this study for 
presentation to the chairs of the house of representatives tax 
committee and the senate committee on taxes and tax laws. 
    Sec. 30.  [BROOKLYN CENTER; LOCAL LIQUOR AND RESTAURANT 
TAX.] 
    Subdivision 1.  [AUTHORIZATION.] Notwithstanding Minnesota 
Statutes, section 477A.016, or any other law, the city of 
Brooklyn Center may by ordinance, impose a tax of one percent on 
the gross receipts on (1) retail on-sales of intoxicating liquor 
and fermented malt beverages when sold at licensed on-sale 
liquor establishments and municipal liquor stores within the 
city, and (2) all sales of food primarily for consumption on or 
off the premises by restaurants and places of refreshment within 
the city. 
    Subd. 2.  [USE OF REVENUES.] Revenues received from taxes 
authorized under subdivision 1 must be used by the city to pay 
the cost of collecting the tax and to fund approved housing 
projects.  Residents of at least 75 percent of any rental units 
and 100 percent of any homeownership units constructed or 
rehabilitated with revenues received under this section, must 
have incomes that are at or below 80 percent of the area median 
family income, adjusted for family size, as determined by the 
department of housing and urban development.  Resident income 
shall be determined at the time of occupancy.  For the purposes 
of this section "housing project" shall have the meaning defined 
in Minnesota Statutes, section 469.002. 
     Subd. 3.  [REFERENDUM.] If the Brooklyn Center city council 
intends to impose the liquor and restaurant tax authorized by 
this section, it shall conduct a referendum on the issue.  The 
question of imposing the tax must be submitted to the voters at 
a general election.  The tax may not be imposed unless a 
majority of votes cast on the question of imposing the tax are 
in the affirmative.  The commissioner of revenue shall prepare a 
suggested form of question to be presented at the election.  The 
referendum must be held at a general election before December 1, 
1992.  This subdivision applies notwithstanding any city charter 
provision to the contrary. 
    Subd. 4.  [COLLECTION.] The city may agree with the 
commissioner of revenue that a tax imposed pursuant to this 
section shall be collected by the commissioner together with the 
tax imposed by Minnesota Statutes, chapter 297A, and subject to 
the same interest, penalties, and other rules and that its 
proceeds, less the cost of collection, shall be remitted to the 
city.  By July 1, 1992, the commissioner of revenue shall 
provide to the city council an estimate of the cost of 
collection. 
    Subd. 5.  [LOCAL APPROVAL.] This section is effective upon 
compliance by the governing body of the city of Brooklyn Center 
with Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 31.  [CITY OF ELY; SALES TAX.] 
    Subdivision 1.  [SALES TAX AUTHORIZED.] Notwithstanding 
Minnesota Statutes, section 477A.016, or any other contrary 
provision of law, ordinance, or city charter, the city of Ely 
may, by ordinance, impose an additional sales tax of up to one 
percent on sales transactions taxable pursuant to Minnesota 
Statutes, chapter 297A, that occur within the city. 
    Subd. 2.  [EXCISE TAX.] Notwithstanding Minnesota Statutes, 
section 477A.016, or any other contrary provision of law, 
ordinance, or city charter, the city of Ely may by ordinance 
impose an excise tax of up to $20 per motor vehicle, as defined 
by ordinance, purchased or acquired from any person engaged 
within the city in the business of selling motor vehicles at 
retail. 
    Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
authorized by subdivisions 1 and 2 must be used by the city to 
pay the cost of collecting the tax and to pay all or a portion 
of the expenses of constructing, operating, promoting, and 
developing of facilities as part of a community revitalization 
project in Ely known as the Ely Wilderness Gateway project.  
Authorized expenses include, but are not limited to, acquiring 
property and paying relocation expenses related to the 
development of the Wilderness Gateway project and related 
facilities, securing or paying debt service on bonds or other 
obligations issued to finance the construction of Wilderness 
Gateway and related facilities, operating expenses of facilities 
and attractions, and operations to promote and develop the 
project as described in a strategic plan approved under section 
8.  For purposes of this section, "Ely Wilderness Gateway and 
related facilities" means a convention center, amphitheater, 
interpretive center, Gateway linkage facility, exhibits and 
program components, furnishings and equipment, tourist center, 
cottage industry center, wildlife enclosures, tourist 
attractions, museum, educational facilities, and links to 
municipal campgrounds and all publicly owned real or personal 
property adjacent to the project area that the governing body of 
the city determines will be necessary to facilitate the use of 
these facilities, including but not limited to parking, skyways, 
pedestrian bridges, lighting, educational and recreational 
trails, and landscaping.  The total capital, administrative, and 
operating expenditures payable from bond proceeds and revenues 
shall not exceed $20,000,000 for Ely Wilderness Gateway and 
related facilities. 
    Subd. 4.  [EXPIRATION OF TAXING AUTHORITY AND EXPENDITURE 
LIMITATION.] The taxes imposed under subdivisions 1 and 2 shall 
terminate on the first day of the second month next succeeding a 
determination by the city council that sufficient funds have 
been received from the taxes and bond proceeds to finance 
capital, administrative, and operating costs of $20,000,000 for 
the Ely Wilderness Gateway and related facilities and to prepay 
or retire at maturity the principal, interest, and premium due 
on any bonds issued for the improvements.  Any funds remaining 
after completion of the improvements and retirement or 
redemption of the bonds may be placed in the general fund of the 
city. 
    Subd. 5.  [BONDS.] The city of Ely may issue general 
obligation bonds of the city in an amount not to exceed 
$20,000,000 for Ely Wilderness Gateway and related facilities, 
without election under Minnesota Statutes, chapter 475, on the 
question of issuance of the bonds or a property tax to pay 
them.  The debt represented by bonds issued for Ely Wilderness 
Gateway and related facilities shall not be included in 
computing any debt limitations applicable to the city of Ely, 
and the levy of taxes required by Minnesota Statutes, section 
475.61, to pay principal of and interest on the bonds shall not 
be subject to any levy limitation or be included in computing or 
applying any levy limitation applicable to the city. 
    Subd. 6.  [REFERENDUM.] If the Ely city council intends to 
impose the sales and excise taxes authorized by this section, it 
shall conduct a referendum on the issue.  The question of 
imposing the tax must be submitted to the voters at a general 
election.  The tax may not be imposed unless a majority of votes 
cast on the question of imposing the tax are in the 
affirmative.  The commissioner of revenue shall prepare a 
suggested form of question to be presented at the election.  The 
referendum must be held at a general election before December 1, 
1992.  This subdivision applies notwithstanding any city charter 
provision to the contrary. 
    Subd. 7.  [ENFORCEMENT; COLLECTION; ADMINISTRATION OF 
TAXES.] A sales tax imposed under this section must be reported 
and paid to the commissioner of revenue with the state sales 
taxes, and be subject to the same penalties, interest, and 
enforcement provisions.  The proceeds of the tax, less refunds 
and a proportionate share of the cost of collection, shall be 
remitted at least quarterly to the city.  The commissioner shall 
deduct from the proceeds remitted an amount that equals the 
indirect statewide cost as well as the direct and indirect 
department costs necessary to administer, audit, and collect the 
tax.  By July 1, 1992, the commissioner of revenue shall provide 
to the city council an estimate of these costs. 
    Subd. 8.  [APPROVAL OF PLANS.] A nine-member citizens 
committee is established.  The committee shall review and, by 
majority vote, approve or reject strategic plans relating to the 
Ely Wilderness Gateway for the city of Ely.  The committee shall 
be appointed by the Ely city council as provided under Minnesota 
Statutes, section 15.059, subdivisions 2 and 4.  The committee 
shall be composed of two members of the Ely chamber of commerce, 
two members of the Ely area tourist board, two members of the 
Ely area development council, two members of the Ely city 
council, and one representative of a joint powers agreement 
between Ely and another local government. 
    Subd. 9.  [EFFECTIVE DATE.] This section is effective the 
day after final enactment. 
    Sec. 32.  [CITY OF THIEF RIVER FALLS; SALES TAX.] 
    Subdivision 1.  [SALES TAX AUTHORIZED.] Notwithstanding 
Minnesota Statutes, section 477A.016, or any other contrary 
provision of law, ordinance, or city charter, the city of Thief 
River Falls may, by ordinance, impose an additional sales tax of 
up to one-half of one percent on sales transactions taxable 
pursuant to Minnesota Statutes, chapter 297A, that occur within 
the city except for sales of major farm equipment subject to the 
tax under subdivision 2. 
    Subd. 2.  [EXCISE TAX.] Notwithstanding Minnesota Statutes, 
section 477A.016, or any other contrary provision of law, 
ordinance, or city charter, the city of Thief River Falls may by 
ordinance impose an excise tax of up to $20 per motor vehicle, 
as defined by ordinance, purchased or acquired from any person 
engaged within the city in the business of selling motor 
vehicles at retail, and an excise tax of up to $20 per piece of 
major farm equipment, as defined by ordinance, purchased or 
acquired from any person engaged within the city in the business 
of selling major farm equipment at retail. 
    Subd. 3.  [USE OF REVENUES.] Revenues received from taxes 
authorized by subdivisions 1 and 2 must be used by the city to 
pay the cost of collecting the tax and to pay all or a portion 
of the expenses of constructing, operating, promoting, and 
developing of facilities as part of a community revitalization 
project in Thief River Falls known as the Area 
Tourism-Convention Facilities.  Authorized expenses include, but 
are not limited to, acquiring property and paying relocation 
expenses related to the development of the Area 
Tourism-Convention Facilities, securing or paying debt service 
on bonds or other obligations issued to finance the construction 
of the Area Tourism-Convention Facilities, operating expenses of 
facilities and attractions, and operations to promote and 
develop the project as described in a strategic plan approved 
under subdivision 8.  For purposes of this section, "Area 
Tourism-Convention Facilities" means convention facilities, 
rivers' beautification and reservoir management, tourist park 
expansion, River Walk facilities, and Depot acquisition and 
preservation.  The total capital, administrative, and operating 
expenditures payable from bond proceeds and revenues shall not 
exceed $15,000,000 for the Thief River Falls Area 
Tourism-Convention Facilities. 
    Subd. 4.  [EXPIRATION OF TAXING AUTHORITY AND EXPENDITURE 
LIMITATION.] The taxes imposed under subdivisions 1 and 2 shall 
terminate on the first day of the second month next succeeding a 
determination by the city council that sufficient funds have 
been received from the taxes to finance capital, administrative, 
and operating costs of $15,000,000 for the Area 
Tourism-Convention Facilities and to prepay or retire at 
maturity the principal, interest, and premium due on any bonds 
issued for the improvements.  Any funds remaining after 
completion of the improvements and retirement or redemption of 
the bonds may be placed in the general fund of the city.  The 
taxes imposed under subdivisions 1 and 2 may expire at an 
earlier time if the city, by ordinance, so determines, provided 
that sufficient funds have been received to finance obligations 
already incurred for the Area Tourism-Convention Facilities.  
    Subd. 5.  [BONDS.] The city of Thief River Falls may issue 
general obligation bonds of the city in an amount not to exceed 
$15,000,000 for the Area Tourism-Convention Facilities, without 
election under Minnesota Statutes, chapter 475, on the question 
of issuance of the bonds or a property tax to pay them.  The 
debt represented by bonds issued for the Area Tourism-Convention 
Facilities shall not be included in computing any debt 
limitations applicable to the city of Thief River Falls, and the 
levy of taxes required by Minnesota Statutes, section 475.61, to 
pay principal of and interest on the bonds shall not be subject 
to any levy limitation or be included in computing or applying 
any levy limitation applicable to the city. 
    Subd. 6.  [REFERENDUM.] If the Thief River Falls city 
council intends to impose the sales and excise taxes authorized 
by this section, it shall conduct a referendum on the issue.  
The question of imposing the tax must be submitted to the voters 
at a general election.  The tax may not be imposed unless a 
majority of votes cast on the question of imposing the tax are 
in the affirmative.  The commissioner of revenue shall prepare a 
suggested form of question to be presented at the election.  The 
referendum must be held at a general election before December 1, 
1992.  This subdivision applies notwithstanding any city charter 
provision to the contrary. 
    Subd. 7.  [ENFORCEMENT; COLLECTION; ADMINISTRATION OF 
TAXES.] A sales tax imposed under this section must be reported 
and paid to the commissioner of revenue with the state sales 
taxes, and be subject to the same penalties, interest, and 
enforcement provisions.  The proceeds of the tax, less refunds 
and a proportionate share of the cost of collection, shall be 
remitted at least quarterly to the city.  The commissioner shall 
deduct from the proceeds remitted an amount that equals the 
indirect statewide cost as well as the direct and indirect 
department costs necessary to administer, audit, and collect the 
tax.  By July 1, 1992, the commissioner of revenue shall provide 
to the city council an estimate of these costs. 
    Subd. 8.  [APPROVAL OF PLANS.] A representative, advisory 
citizens committee of not less than nine members is 
established.  The committee shall review and, by majority vote, 
approve or reject strategic plans relating to the Area 
Tourism-Convention Facilities of Thief River Falls.  The 
committee shall be appointed by the Thief River Falls city 
council as provided under Minnesota Statutes, section 15.059, 
subdivisions 2 and 4.  The committee shall be composed of 
persons representative of the area. 
    Subd. 9.  [EFFECTIVE DATE.] This section is effective the 
day after final enactment. 
    Sec. 33.  [CITY OF ROCHESTER; TAXES.] 
    Subdivision 1.  [SALES AND USE TAXES AUTHORIZED.] 
Notwithstanding Minnesota Statutes, section 477A.016, or any 
other contrary provision of law, ordinance, or city charter, the 
city of Rochester may, by ordinance, impose an additional sales 
tax of up to one-half of one percent on sales transactions 
taxable under Minnesota Statutes, chapter 297A, that occur 
within the city and may also, by ordinance, impose an additional 
compensating use tax of up to one-half of one percent on uses of 
property within the city, the sale of which would be subject to 
the additional sales tax but for the fact that the property was 
sold outside the city. 
    Subd. 2.  [EXCISE TAX AUTHORIZED.] Notwithstanding 
Minnesota Statutes, section 477A.016, or any other contrary 
provision of law, ordinance, or city charter, the city of 
Rochester may, by ordinance, impose an excise tax of up to $20 
per motor vehicle, as defined by ordinance, purchased or 
acquired from any person engaged within the city in the business 
of selling motor vehicles at retail. 
    Subd. 3.  [COLLECTION.] The commissioner of revenue may 
enter into appropriate agreements with the city of Rochester to 
provide for collection by the state on behalf of the city of a 
tax imposed by the city of Rochester pursuant to subdivision 1 
or 2.  The commissioner may charge the city of Rochester from 
the proceeds of any tax a reasonable fee for its collection.  By 
July 1, 1992, the commissioner of revenue shall provide the city 
council an estimate of the fee. 
    Subd. 4.  [ALLOCATION OF REVENUES.] Revenues received from 
taxes authorized by subdivisions 1 and 2 must be used to pay the 
costs of collecting the taxes, capital and administrative costs 
of capital improvements for fire station, city hall, and public 
library facilities for which the city voters at the general 
election held on November 6, 1990, approved the issuance of 
general obligation bonds, and to pay debt service on the bonds.  
The total capital and administrative expenditures payable from 
bond proceeds and revenues received from the taxes authorized by 
subdivisions 1 and 2, excluding investment earnings thereon, 
shall not exceed $28,760,000 for the several purposes. 
    Subd. 5.  [TERMINATION OF TAXES.] The taxes imposed 
pursuant to subdivisions 1 and 2 shall terminate on the first 
day of the second month next succeeding a determination by the 
city council that sufficient funds have been received from the 
taxes to finance capital and administrative costs of $28,760,000 
for improvements for fire station, city hall, and public library 
facilities and to prepay or retire at maturity the principal, 
interest, and premium due on any bonds issued for the 
improvements.  Any funds remaining after completion of the 
improvements and retirement or redemption of the bonds may be 
placed in the general fund of the city. 
    Subd. 6.  [BONDS.] The city of Rochester, pursuant to the 
approval of the city voters at the general election held on 
November 6, 1990, may issue general obligation bonds of the city 
in an amount not to exceed $28,760,000 for fire station, city 
hall, and public library facilities.  The debt represented by 
the bonds shall not be included in computing any debt limitation 
applicable to the city, and the levy of taxes required by 
Minnesota Statutes, section 475.61, to pay the principal of and 
interest on the bonds shall not be subject to any levy 
limitation or be included in computing or applying any levy 
limitation applicable to the city.  The amount of any special 
levy for debt service for payment of principal and interest on 
the bonds shall not include the amount of estimated collection 
of revenues from the taxes imposed pursuant to subdivisions 1 
and 2 that are pledged for the payment of those obligations. 
    Subd. 7.  [EFFECTIVE DATE.] This section is effective the 
day after compliance by the governing body of the city of 
Rochester with Minnesota Statutes, section 645.021, subdivision 
3. 
    Sec. 34.  [CITY OF MINNEAPOLIS; NEIGHBORHOOD EARLY LEARNING 
CENTER.] 
    Subdivision 1.  [CENTERS.] A neighborhood early learning 
center provides programs to promote the physical, emotional, and 
social development of all children residing in the city of 
Minneapolis from birth until ready to enter first grade.  A 
center may include: 
    (1) way to grow school readiness programs as defined in 
Minnesota Statutes, section 145.926; 
    (2) Head Start and other preschool programs; 
    (3) kindergarten and related programs; and 
    (4) other family support and child development activities 
which strengthen the capacity of a family to give birth to and 
successfully nurture healthy children. 
    A center shall be located as close as possible to the 
families and children it serves and may be housed in one 
structure or in structures in close proximity to each other.  A 
center may be owned by any private or public entity other than 
the board established under subdivision 2. 
    Subd. 2.  [CREATION OF BOARD.] Special school district No. 
1 and the city of Minneapolis may establish a neighborhood early 
learning board under Minnesota Statutes, section 471.59, to 
create, manage, and operate neighborhood early learning centers 
on the terms and conditions agreed to by the district and the 
city.  The Minneapolis youth coordinating board established 
under Laws 1985, chapter 91, may serve as the neighborhood early 
learning board provided that the governing bodies of special 
school district No. 1 and the city of Minneapolis, together with 
the youth coordinating board, adopt resolutions designating the 
youth coordinating board as the neighborhood early learning 
board under the authority of this section.  If an existing board 
ceases to function, and in the absence of a new joint powers 
agreement creating a new board, an interim joint powers board 
shall govern.  The interim board shall consist of five members, 
two of whom shall be selected by resolution of the governing 
body of special school district No. 1, two of whom shall be 
selected by resolution of the city council of the city of 
Minneapolis, and one of whom shall be selected by the mayor with 
the approval of the city council.  Persons selected to serve may 
be elected officials from their respective bodies.  Any interim 
board shall elect its own officers and shall serve until a new 
joint powers agreement establishes a new board. 
    Subd. 3.  [POWERS.] The neighborhood early learning board 
is authorized to: 
    (1) manage and operate and acquire leasehold interests in 
neighborhood early learning centers, and all leasehold interests 
in centers shall be vested in the board or in another 
governmental unit as may be designated by the board; 
    (2) employ permanent or temporary employees as it may 
require, and determine their qualifications, duties, and 
compensation; 
    (3) use the services of the participating local public 
bodies and of other political subdivisions or public bodies 
whose jurisdiction includes all or a part of the area of the 
city of Minneapolis; 
    (4) sublease space or assign any of its leasehold interests 
to any public or private entity in connection with the programs 
described in subdivision 1; 
    (5) develop criteria and request proposals for the 
provision of services described in subdivision 1, clauses (2) 
and (3), by private entities which propose to provide these 
services to less than 100 children at any one location, and 
provide financial assistance to those private entities for the 
costs of managing and operating a facility and providing these 
services; 
    (6) receive funds or other assistance from both private and 
public sources; and 
    (7) take other action as it deems necessary or useful to 
carry out its responsibilities under this section. 
    The board shall not exercise any control over the content 
or curriculum of Head Start or any programs operated by special 
school district No. 1.  The board shall expend a portion of the 
operating funds received by it from the city and the school 
district on the services provided under clause (5). 
    Subd. 4.  [SUPPORT BY PARTICIPANTS AND OTHER PUBLIC 
BODIES.] The city of Minneapolis and special school district No. 
1 are authorized to appropriate money to the board, to the 
Minneapolis community development agency, or to each other, for 
use in connection with neighborhood early learning centers and 
facilities described in subdivision 3, clause (5), and to 
undertake activities in support of the purposes of the board, 
including the acquisition, construction, equipping, and 
improving of neighborhood early learning centers.  Any 
appropriations may be subject to any conditions that the 
appropriating entity may establish.  Other political 
subdivisions and public bodies whose jurisdictions include all 
or a part of the city of Minneapolis, including the Minneapolis 
community development agency, are authorized to exercise any of 
their powers for the purposes for which the board may act and to 
acquire, construct, provide facilities for, and equip 
neighborhood early learning centers on behalf of the city or 
special school district No. 1.  Any appropriations may be 
subject to the conditions that the appropriating entity may 
establish.  Notwithstanding any limitations in Laws 1986, 
chapter 396, the city of Minneapolis may appropriate the 
proceeds of sales and use taxes collected or received by the 
city under Laws 1986, chapter 396, section 4, to the board or 
otherwise expend the funds in support of the board's purposes, 
provided that the appropriation is limited to the amount of 
revenue accruing to the city as a result of the advance 
refunding of bonds issued under Laws 1986, chapter 396.  
Neighborhood early learning centers shall be an authorized use 
of the tax revenues under Laws 1986, chapter 396. 
    Sec. 35.  [MINNEAPOLIS TEACHERS RETIREMENT; COMMITTEE TO 
RECOMMEND FUNDING METHOD.] 
    Subdivision 1.  [CREATION; PURPOSE.] An advisory committee 
is created for the purpose of recommending to the legislative 
commission on pensions and retirement a method of funding the 
unfunded actuarial accrued liability of the Minneapolis teachers 
retirement fund association.  The committee shall consider: 
    (1) the feasibility of the use of the convention center 
sales taxes to reduce the unfunded liability; and 
    (2) other possible options and sources of funding. 
    Subd. 2.  [MEMBERSHIP.] The membership of the advisory 
committee shall be as follows:  the mayor of Minneapolis, one 
member of the house of representatives who represents the city 
of Minneapolis to be appointed by the speaker of the house, one 
member of the senate who represents the city of Minneapolis to 
be appointed by the subcommittee on committees of the senate 
committee on rules and administration, the chair of special 
school district No. 1 or a member of the school board designated 
by the chair, the president of the Minneapolis city council or a 
member of the city council designated by the president, the 
president of the Minneapolis federation of teachers and one 
teacher currently employed by special school district No. 1 
appointed by the president of the Minneapolis federation of 
teachers, the executive director and either one member of the 
board of directors of the Minneapolis teachers retirement fund 
association or one retiree of the fund appointed by the board, 
and the commissioner of finance or the commissioner's designee.  
The legislative members shall be co-chairs of the committee. 
    Subd. 3.  [OPERATION OF COMMITTEE.] The advisory committee 
shall make its recommendations by February 1, 1993, and shall 
terminate after the recommendations have been made.  No per diem 
or expense reimbursements shall be paid to members of the 
committee.  The actuary employed by the legislative pension 
commission shall provide information upon request of a chair of 
the committee. 
    Subd. 4.  [LOCAL APPROVAL.] This section is effective the 
day following final enactment, after compliance with Minnesota 
Statutes, section 645.021, subdivision 3, by the city council of 
the city of Minneapolis, and the board of special school 
district No. 1. 
    Sec. 36.  Laws 1953, chapter 560, section 2, subdivision 3, 
is amended to read: 
    Subd. 3.  [TAX ORDINANCE; AMENDMENT, REPEAL.] An ordinance 
adopted as heretofore provided in this act may be repealed or 
amended in the following manner:  A petition signed by not less 
than two thousand (2,000) qualified electors of the city 
demanding repeal of the ordinance shall be filed with the 
clerk.  The petition shall identify the ordinance to be repealed 
by title, date of adoption and subject matter.  The signatures 
to the petition need not all be appended to one paper, but each 
signer shall state his place of residence and street number.  
One of the signers of each such paper shall make oath that the 
statements therein made are true, as he believes, and that each 
signature to the paper appended is the genuine signature of the 
person whose signature it purports to be. 
    Within 10 days from the date of filing such petition, the 
city clerk shall ascertain from the voters' register that the 
said petition is signed by the requisite number of qualified 
voters.  The clerk shall attach to said petition his 
certificate, showing the result of said examination.  If, by the 
clerk's certificate, the petition is shown to be insufficient, 
it may be amended within 10 days from the date of said clerk's 
certificate.  The clerk shall, within 10 days after such 
amendment, make like examination of the amended petition, and if 
his certificate shall show the same to be insufficient it shall 
be returned to the person filing the same, without prejudice, 
however, to the filing of a new petition to the same effect.  If 
the petition is deemed sufficient, the clerk shall submit the 
same to the council without delay.  Within 10 days thereafter, 
the council shall provide for the submission to the electorate 
at the next general or special election held not less than 45 
days thereafter of the question of repeal of the ordinance 
described in the petition.  The question of repeal or amendment 
of said ordinance shall be submitted upon a separate ballot 
which shall summarize the substance of the ordinance proposed to 
be repealed or amended.  If the majority of the electors voting 
upon the question vote in favor of the repeal of the ordinance, 
it shall be repealed or amended thereby effective on January 1 
of the year next following.  Such repeal shall not affect any 
right accrued, any duty imposed, any penalty incurred, or any 
proceeding commenced under or by virtue of the ordinance 
repealed.  If taxes levied under this section are pledged to or 
for the benefit of any bonds issued before January 1, 1993, then 
no pledge, mortgage, covenant, or agreement securing the bonds 
may be impaired, revoked, or amended by repeal or amendment of 
the ordinance under this subdivision, except in accordance with 
the terms of the resolution or indenture under which the bonds 
are issued, until the obligations of the city with respect to 
the bonds or with respect to bonds issued to refund those bonds 
have been fully discharged.  Any action or proceeding pending to 
enforce any right under the authority of the ordinance repealed 
shall and may be proceeded with and concluded under the 
ordinance in existence when the action or proceeding was 
instituted, notwithstanding the repeal of such ordinance. 
    Sec. 37.  [SALES TAX EXEMPTION.] 
    Subdivision 1.  [EXEMPTION.] Capital equipment and building 
materials, regardless of whether it was purchased by the owner, 
contractor, subcontractor, or builder, qualifies for the 
exemption under Minnesota Statutes 1990, section 297A.257, if 
the purchase meets the other requirements of that section. 
    Subd. 2.  [REFUNDS.] The commissioner of revenue shall pay 
refunds of the tax exempted by subdivision 1 to the owner 
operator of the facility upon filing of proof that the tax was 
paid by the contractor.  An amount sufficient to pay the refunds 
is appropriated to the commissioner from the general fund. 
    Subd. 3.  [EFFECTIVE DATE.] This section is effective for 
projects begun during the time a county was designated as 
distressed under Minnesota Statutes, section 297A.257, if the 
capital equipment was placed in service after August 1, 1990. 
    Sec. 38.  [REPEALER.] 
    Minnesota Statutes 1991 Supplement, section 295.367, is 
repealed. 
    Sec. 39.  [EFFECTIVE DATE.] 
    Sections 1, 2, 7, 8, 9, 11, 12, 24, and 28 are effective 
the day after final enactment. 
    Sections 3 and 4 are effective for tax payments due for 
sales made after September 30, 1992. 
    Sections 5 and 6 are effective July 1, 1992, and apply to 
refunds filed after that date. 
    Sections 10, 13, 22, and 26 are effective for sales made 
after June 30, 1992. 
    Sections 14, 15, and 18 are effective for sales made after 
May 31, 1992. 
    Section 16 is effective retroactive for sales made after 
June 30, 1991. 
    Section 19 is effective for all open tax years. 
    Sections 20 and 21 are effective for sales made after June 
30, 1992, and before July 1, 1996. 
    Section 23 is effective for sales made on or after the date 
of enactment, but prior to April 1, 1994. 
    Section 25 is effective for fiscal year 1993 and thereafter.
    Section 36 is effective the day following final enactment, 
and upon approval by the governing body of the city of Duluth 
pursuant to Minnesota Statutes, section 645.021. 
    Section 38 is effective for sales made after December 31, 
1991. 

                                ARTICLE 9

                              MISCELLANEOUS
    Section 1.  Minnesota Statutes 1991 Supplement, section 
16A.15, subdivision 6, is amended to read: 
    Subd. 6.  [BUDGET AND CASH FLOW RESERVE ACCOUNT.] A budget 
and cash flow reserve account is created in the general fund in 
the state treasury.  The commissioner of finance shall, as 
authorized from time to time by law, restrict part or all of the 
budgetary balance in the general fund for use as the budget and 
cash flow reserve account.  The commissioner of finance shall 
transfer from the budget and cash flow reserve account the 
amount necessary to bring the total amount, including any 
existing balance in the account on June 30, 1991 July 1, 1992, 
to $400,000,000 $240,000,000.  The amounts restricted shall 
remain in the account until drawn down under subdivision 1 or 
increased under section 16A.1541. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
69.021, subdivision 5, is amended to read: 
    Subd. 5.  [CALCULATION OF STATE AID.] (a) The amount of 
fire state aid available for apportionment shall be two percent 
of the fire, lightning, sprinkler leakage, and extended coverage 
premiums reported to the commissioner by insurers on the 
Minnesota Firetown Premium Report and two percent of the 
premiums reported to the commissioner by insurers on the 
Minnesota Aid to Police Premium Report.  This amount shall be 
reduced by the amount required to pay the state auditor's costs 
and expenses of the audits or exams of the firefighters relief 
associations. 
   (b) The total amount for apportionment in respect to police 
peace officer state aid shall not be greater or lesser than is 
the amount of premium taxes paid to the state upon the premiums 
reported to the commissioner by insurers on the Minnesota Aid to 
Police Premium Report after subtracting, plus the payment 
amounts received under section 60A.152 since the last aid 
apportionment, and reduced by the amount required to pay the 
state auditor's costs and expenses of the audits or exams of the 
police relief associations.  The total amount for apportionment 
in respect to firefighters state aid shall not be greater or 
lesser than the amount of premium taxes paid to the state upon 
the premiums reported to the commissioner by insurers on the 
Minnesota Firetown Premium Report after subtracting the amount 
required to pay the state auditor's costs and expenses of the 
audits or exams of the firefighters relief associations.  The 
amount for apportionment in respect to police state aid shall be 
distributed to the municipalities maintaining police departments 
and to the county on the basis of the number of active peace 
officers, as certified pursuant to section 69.011, subdivision 
2, clause (b).  The commissioner shall calculate the percentage 
of increase or decrease reflected in the apportionment over or 
under the previous year's available state aid using the same 
premiums as a basis for comparison. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
69.021, subdivision 6, is amended to read: 
    Subd. 6.  [CALCULATION OF APPORTIONMENT OF STATE PEACE 
OFFICERS AID TO COUNTIES.] The peace officers state aid 
available in respect to peace officers shall not exceed the 
amount of tax collected and shall be distributed to the counties 
in proportion to the total number of active peace officers, as 
defined in section 69.011, subdivision 1, clause (g), in each 
county who are employed either by municipalities maintaining 
police departments or by the county.  Any necessary adjustments 
shall be made to subsequent apportionments. 
    Sec. 4.  Minnesota Statutes 1990, section 270.07, 
subdivision 3, is amended to read: 
    Subd. 3.  Notwithstanding any other provision of law the 
commissioner of revenue may, 
    (a) based upon the administrative costs of processing, 
determine minimum standards for the determination of additional 
tax for which an order shall be issued, and 
    (b) based upon collection costs as compared to the amount 
of tax involved, determine minimum standards of collection, and 
    (c) based upon the administrative costs of processing, 
determine the minimum amount of refunds for which an order shall 
be issued and refund made where no claim therefor has been 
filed, and 
    (d) may cancel any amounts below these minimum standards 
determined under (a) and (b) hereof., and 
    (e) based upon the inability of a taxpayer to pay a 
delinquent tax liability, abate the liability if the taxpayer 
agrees to perform uncompensated public service work for a state 
agency, a political subdivision or public corporation of this 
state, or a nonprofit educational, medical, or social service 
agency.  The department of corrections shall administer the work 
program.  No benefits under chapter 176 or 268 shall be 
available, but a claim authorized under section 3.739 may be 
made by the taxpayer.  The state may not enter into any 
agreement that has the purpose of or results in the displacement 
of public employees by a delinquent taxpayer under this 
section.  The state must certify to the appropriate bargaining 
agent or employees, as applicable, that the work performed by a 
delinquent taxpayer will not result in the displacement of 
currently employed workers or layoff from a substantially 
equivalent position, including partial displacement such as 
reduction in hours of nonovertime work, wages, or other 
employment benefits.  The program authorized under this 
paragraph terminates June 30, 1993. 
    Sec. 5.  Minnesota Statutes 1990, section 270.69, is 
amended by adding a subdivision to read: 
    Subd. 14.  [REGISTERED LAND.] When a lien is filed with a 
county recorder under subdivision 2, the county recorder shall 
search the registered land records in that county and cause the 
lien to be memorialized on every certificate of title or 
certificate of possessory title of registered land in that 
county which can be reasonably identified as owned by the 
taxpayer who is named on the lien.  The fees for memorializing 
the lien shall be paid in the manner prescribed by subdivision 
2, paragraph (c).  The county recorders, and their employees and 
agents, shall not be liable for any loss or damages arising from 
failure to identify a parcel of registered land owned by the 
taxpayer who is named on the lien. 
    Sec. 6.  Minnesota Statutes 1990, section 282.016, is 
amended to read: 
    282.016 [PROHIBITED PURCHASERS.] 
    No county auditor, county treasurer, court administrator of 
the district court, or county assessor or supervisor of 
assessments, or deputy or clerk or employee of such officer, and 
no commissioner for tax-forfeited lands or assistant to such 
commissioner may become a purchaser of the properties offered 
for sale under the provisions of this chapter, either 
personally, or as agent or attorney for any other person, except 
that such officer, deputy, court administrator, employee or 
commissioner for tax-forfeited lands or assistant to such 
commissioner may (1) purchase lands owned by that official at 
the time the state became the absolute owner thereof or (2) bid 
upon and purchase forfeited property offered for sale under the 
alternate sale procedure described in section 282.01, 
subdivision 7a. 
    Sec. 7.  [290.0691] [DESIGNATED COUNTIES JOB CREATION 
CREDIT.] 
    Subdivision 1.  [DESIGNATION OF COUNTIES.] The commissioner 
of trade and economic development shall certify counties as 
designated counties.  A county is a designated county if: 
    (1) the county has had a decline in population of ten 
percent or more from 1980 to 1990, as determined by the 1990 
federal decennial census; 
    (2) the county has adopted a county-wide economic 
development plan; 
    (3) the county has been designated a star county by the 
department of trade and economic development; and 
    (4) each statutory and home rule charter city in the county 
has established an economic development authority under sections 
469.090 to 469.108. 
    For purposes of this section, "designated county" means a 
county designated by the commissioner of trade and economic 
development as provided under this section or a city of the 
second class that is designated as an economically depressed 
area by the United States Department of Commerce. 
    Subd. 2.  [CREDIT FOR JOB CREATION.] A business with 
operations located in a designated county may take a credit 
against the tax due under chapter 290 for its first taxable year 
beginning after December 31, 1992, and before January 1, 1994.  
For purposes of this section, "business" means a business entity 
organized for profit, including a sole proprietorship, 
partnership, or corporation, and "eligible employees" are 
determined as the number of persons paid an annual wage of at 
least $15,000 and employed by the business within the designated 
county on a full-time basis on the last day of the taxable year, 
not to exceed the number of persons paid an annual wage of at 
least $15,000 and employed by the business on a full-time basis 
within the designated county on the date 90 days before the last 
day of the taxable year.  A credit is provided only for the 
number of eligible employees that exceeds the number of such 
persons so employed on the last day of the preceding taxable 
year.  A person is not an eligible employee if the commissioner 
of trade and economic development determines that the position 
held by that employee in the business was transferred from an 
enterprise conducted by substantially the same business 
enterprise at another site in the state.  The credit is equal to 
$2,000 multiplied by the number of eligible employees.  The 
credit is not refundable.  
    Subd. 3.  [LIMITATION.] Tax credits provided under this 
section may not exceed $200,000.  If by April 15, 1994, the 
commissioner of revenue determines that the estimated total 
amount of credits claimed under this section exceeds $200,000, 
the commissioner shall reduce the credit granted for each 
eligible employee proportionately. 
    Sec. 8.  [298.227] [TACONITE ECONOMIC DEVELOPMENT FUND.] 
    An amount equal to 10.4 cents per taxable ton distributed 
pursuant to each taconite producer's taxable production under 
section 298.28, subdivision 9a, for production years 1992 and 
1993 shall be held by the iron range resources and 
rehabilitation board in a separate taconite economic development 
fund for each taconite producer.  Money from the fund for each 
producer shall be released only on the written authorization of 
a joint committee consisting of an equal number of 
representatives of the salaried employees and the nonsalaried 
production and maintenance employees of that producer.  The 
district 33 director of the United States Steelworkers of 
America, on advice of each local employee president, shall 
select the employee members.  In nonorganized operations, the 
employee committee shall be elected by the nonsalaried 
production and maintenance employees.  Each producer's joint 
committee may authorize release of the funds held pursuant to 
this section only for acquisition of equipment and facilities 
for the producer or for research and development in Minnesota on 
new mining, or taconite, iron, or steel production technology.  
Funds may be released only upon a majority vote of the 
representatives of the committee.  Any portion of the fund which 
is not released by a joint committee within two years of its 
deposit in the fund shall be divided between the taconite 
environmental protection fund created in section 298.223 and the 
northeast Minnesota economic protection trust fund created in 
section 298.292 for placement in their respective special 
accounts.  Two-thirds of the unreleased funds shall be 
distributed to the taconite environmental protection fund and 
one-third to the northeast Minnesota economic protection trust 
fund.  This section is effective for taxes payable in 1993 and 
1994. 
    Sec. 9.  Minnesota Statutes 1990, section 298.24, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) For concentrate produced in 1990 1992 
and 1993 there is hereby imposed upon taconite and iron 
sulphides, and upon the mining and quarrying thereof, and upon 
the production of iron ore concentrate therefrom, and upon the 
concentrate so produced, a tax of $1.975 $2.054 per gross ton of 
merchantable iron ore concentrate produced therefrom.  
    (b) For concentrates produced in 1991 1994 and subsequent 
years, the tax rate shall be equal to the preceding year's tax 
rate plus an amount equal to the preceding year's tax rate 
multiplied by the percentage increase in the implicit price 
deflator from the fourth quarter of the second preceding year to 
the fourth quarter of the preceding year.  "Implicit price 
deflator" for the gross national product means the implicit 
price deflator prepared by the bureau of economic analysis of 
the United States Department of Commerce.  
    (c) The tax shall be imposed on the average of the 
production for the current year and the previous two years.  The 
rate of the tax imposed will be the current year's tax rate.  
This clause shall not apply in the case of the closing of a 
taconite facility if the property taxes on the facility would be 
higher if this clause and section 298.25 were not applicable.  
    (d) If the tax or any part of the tax imposed by this 
subdivision is held to be unconstitutional, a tax 
of $1.975 $2.054 per gross ton of merchantable iron ore 
concentrate produced shall be imposed.  
    (e) Consistent with the intent of this subdivision to 
impose a tax based upon the weight of merchantable iron ore 
concentrate, the commissioner of revenue may indirectly 
determine the weight of merchantable iron ore concentrate 
included in fluxed pellets by subtracting the weight of the 
limestone, dolomite, or olivine derivatives or other basic flux 
additives included in the pellets from the weight of the 
pellets.  For purposes of this paragraph, "fluxed pellets" are 
pellets produced in a process in which limestone, dolomite, 
olivine, or other basic flux additives are combined with 
merchantable iron ore concentrate.  No subtraction from the 
weight of the pellets shall be allowed for binders, mineral and 
chemical additives other than basic flux additives, or moisture. 
    Sec. 10.  Minnesota Statutes 1990, section 298.28, is 
amended by adding a subdivision to read: 
    Subd. 9a.  [TACONITE ECONOMIC DEVELOPMENT FUND.] 10.4 cents 
per ton for distributions in 1993 and 1994 shall be paid to the 
taconite economic development fund.  No distribution shall be 
made under this subdivision in any year in which total industry 
production falls below 30 million tons. 
    Sec. 11.  Minnesota Statutes 1990, section 373.40, 
subdivision 7, is amended to read: 
    Subd. 7.  [REPEALER.] This section is repealed effective 
for bonds issued after July 1, 1993 1998, but continues to apply 
to bonds issued before that date. 
    Sec. 12.  Minnesota Statutes 1990, section 383.06, is 
amended to read: 
    383.06 [PAYMENT OF WARRANTS; ACCOUNTS; HOW KEPT; 
CERTIFICATES OF INDEBTEDNESS TO RETIRE OUTSTANDING WARRANTS.] 
    Subdivision 1.  [PAYMENT OF WARRANTS.] The county treasurer 
shall pay warrants only from the fund from which they are 
legally payable.  Payments under any special contract shall be 
kept separate under the name of such contract, and under the 
general title of the fund from which such payment may be legally 
made.  The treasurer need not keep a specific appropriations 
account separately, but shall keep a general appropriations 
account.  
    Subd. 2.  [TAX ANTICIPATION CERTIFICATES.] The county board 
may, by resolution, issue and sell as many certificates of 
indebtedness as may be needed in anticipation of the collection 
of taxes levied for any fund named in the tax levy for the 
purpose of raising money for such fund, but the certificates 
outstanding for any such separate funds shall not at any time 
exceed 50 percent of the amount of taxes previously levied for 
such fund remaining uncollected, and.  No certificate shall be 
issued to become due and payable later than December 31 of the 
year succeeding the year in which the tax levy was made 15 
months after the deadline for the certification of the property 
tax levy under section 275.07, subdivision 1, and the 
certificates shall not be sold for less than par and accrued 
interest.  No such certificates shall be issued prior to the 
beginning of the fiscal year for which the taxes so anticipated 
were intended, except that when taxes shall have been levied for 
the purpose of paying a deficit in any such fund carried over 
from any previous year or years The certificates of indebtedness 
in anticipation of collection of the taxes levied for such 
deficit may be issued at any time after such the levy shall have 
has been finally made and certified to the county auditor.  Each 
certificate shall state upon its face for which fund the 
proceeds thereof shall be used, the total amount of certificates 
so issued, and the whole amount embraced in the levy for that 
particular purpose.  They shall be numbered consecutively, be in 
denominations of $100 or a multiple thereof, may have interest 
coupons attached, shall be otherwise of such form and terms, and 
may be made payable at such place, as will best aid in their 
negotiation, and the proceeds of the tax assessed and collected 
on account of the fund and the full faith and credit of the 
county shall be irrevocably pledged for the redemption and 
payment of the certificates so issued.  Such certificates shall 
be payable primarily from the moneys derived from the levy for 
the years against which such certificates were issued, but shall 
constitute unlimited general obligations of the county.  Money 
derived from the sale of such certificates shall be credited to 
the fund or funds the taxes for which are so anticipated. 
    Sec. 13.  Minnesota Statutes 1990, section 401.02, 
subdivision 3, is amended to read: 
    Subd. 3.  [ESTABLISHMENT AND REORGANIZATION OF 
ADMINISTRATIVE STRUCTURE.] Any county or group of counties which 
have qualified for participation in the community corrections 
subsidy program provided by this chapter may, after consultation 
with the judges of the district court, county court, municipal 
court, probate court and juvenile court having jurisdiction in 
the county or group of counties establish, organize, and 
reorganize an administrative structure and provide for the 
budgeting, staffing and operation of court services and 
probation, construction or improvement to juvenile detention and 
juvenile correctional facilities and adult detention and 
correctional facilities, and other activities required to 
conform to the purposes of this chapter.  No contrary general or 
special statute divests any county or group of counties of the 
authority granted by this subdivision.  This subdivision does 
not apply to Ramsey County or Hennepin County or to the counties 
in the Arrowhead region.  In Hennepin County and Ramsey County 
the county board and the judges of the district court, county 
court, municipal court, probate court and juvenile court shall 
prepare and implement a joint plan for reorganization of 
correctional services in the county providing for the 
administrative structure and providing for the budgeting, 
staffing and operation of court services and probation, juvenile 
detention and juvenile correctional facilities, and other 
activities required to conform to the purposes of this chapter.  
The joint plan shall be subject to the approval of the 
commissioner of corrections and submitted to the legislature on 
or before January 15, 1983.  
    Sec. 14.  Minnesota Statutes 1990, section 401.05, is 
amended to read: 
    401.05 [FISCAL POWERS.] 
    Subdivision 1.  [AUTHORIZATION TO USE AND ACCEPT FUNDS.] 
Any county or group of counties electing to come within the 
provisions of sections 401.01 to 401.16, may, through their 
governing bodies, use unexpended funds, accept gifts, grants and 
subsidies from any lawful source, and apply for and accept 
federal funds.  
    Subd. 2.  [CAPITAL IMPROVEMENTS; BONDS; LEASES.] (a) A 
county or group of counties which acquires facilities under 
section 401.04 or constructs the facilities may finance the 
acquisition or construction and the equipping and subsequent 
improvement of the facilities in whole or in part by: 
    (1) the issuance of general obligation bonds of the county 
or group of counties in the manner provided in chapter 475; or 
    (2) the issuance of revenue bonds, secured by a lease 
agreement as provided in subdivision 3 and sections 469.152 to 
469.165, by a city situated in any of the counties or a county 
housing and redevelopment authority established pursuant to 
chapter 469 or special law. 
Proceedings for the issuance of general obligation bonds shall 
be instituted by the board of county commissioners of the county 
or boards of the group of counties.  
    (b) If counties have combined as authorized in section 
401.02, the joint powers board created under section 471.59 
shall, with the approval of the county board of each county 
which is a party: 
    (1) fix the total amount necessary for the construction or 
acquisition and the equipping and subsequent improvement of the 
facilities; and 
    (2) apportion to each county its share of this amount or of 
the annual debt service or lease rentals required to pay this 
amount with interest, as provided in subdivision 4. 
    Subd. 3.  [LEASING.] (a) A county or joint powers board of 
a group of counties which acquires or constructs and equips or 
improves facilities under this chapter may, with the approval of 
the board of county commissioners of each county, enter into a 
lease agreement with a city situated within any of the counties, 
or a county housing and redevelopment authority established 
under chapter 469 or any special law.  Under the lease 
agreement, the city or county housing and redevelopment 
authority shall: 
    (1) construct or acquire and equip or improve a facility in 
accordance with plans prepared by or at the request of a county 
or joint powers board of the group of counties and approved by 
the commissioner of corrections; and 
    (2) finance the facility by the issuance of revenue bonds. 
    (b) The county or joint powers board of a group of counties 
may lease the facility site, improvements, and equipment for a 
term upon rental sufficient to produce revenue for the prompt 
payment of the revenue bonds and all interest accruing on them.  
Upon completion of payment, the lessee shall acquire title.  The 
real and personal property acquired for the facility constitutes 
a project and the lease agreement constitutes a revenue 
agreement as provided in sections 469.152 to 469.165.  All 
proceedings by the city or county housing and redevelopment 
authority and the county or joint powers board shall be as 
provided in sections 469.152 to 469.165, with the following 
adjustments: 
    (1) no tax may be imposed upon the property; 
    (2) the approval of the project by the commissioner of 
trade and economic development is not required; 
    (3) the department of corrections shall be furnished and 
shall record information concerning each project as it may 
prescribe, in lieu of reports required on other projects to the 
commissioner of trade and economic development or the energy and 
economic development authority; 
    (4) the rentals required to be paid under the lease 
agreement shall not exceed in any year one-tenth of one percent 
of the market value of property within the county or group of 
counties as last equalized before the execution of the lease 
agreement; 
    (5) the county or group of counties shall provide for 
payment of all rentals due during the term of the lease 
agreement in the manner required in subdivision 4; 
    (6) no mortgage on the facilities shall be granted for the 
security of the bonds, but compliance with clause (5) may be 
enforced as a nondiscretionary duty of the county or group of 
counties; and 
    (7) the county or the joint powers board of the group of 
counties may sublease any part of the facilities for purposes 
consistent with their maintenance and operation. 
    Subd. 4.  [TAX LEVIES; APPORTIONMENT OF COSTS.] The county 
or each county of the group of counties shall annually levy a 
tax in an amount necessary to defray its proportion of the net 
costs of maintenance and operation of the facilities, and shall 
levy a tax to pay the cost of construction or acquisition, 
equipping, and any subsequent improvement to the facilities or 
the retirement of any bonds or required lease payments for these 
purposes.  Each county may levy these taxes without limitation 
on the rate or amount.  This levy shall not cause the amount of 
other taxes levied or to be levied by the county, which are 
subject to any limitation, to be reduced in any amount.  A joint 
powers board of the group of counties shall apportion the costs 
of maintenance and operation, construction or acquisition, 
equipping, and subsequent improvement of the facilities to each 
of the counties according to a formula in the agreement entered 
into by the counties. 
    Subd. 5.  [CORRECTIONAL FACILITIES FUND.] All money 
received for the operation and maintenance, payment of 
indebtedness or lease payments, and construction or acquisition, 
equipping, and subsequent improvement of the facilities must be 
deposited in a correctional facilities fund maintained in the 
treasury of the county in which the facilities are located or 
any county treasury of the group of counties as designated by 
the joint powers board.  Payments from the fund shall only be 
made upon certification of the chair or board designee that the 
expenditures have been approved at a meeting of the board. 
    Sec. 15.  Minnesota Statutes 1990, section 462A.22, 
subdivision 1, is amended to read: 
    Subdivision 1.  The aggregate principal amount of bonds and 
notes which are outstanding at any time, excluding the principal 
amount of any bonds and notes refunded by the issuance of new 
bonds or notes, shall not exceed the sum of $1,990,000,000 
$2,400,000,000. 
    Sec. 16.  Minnesota Statutes 1990, section 469.004, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PRELIMINARY COUNTY FINDINGS AND 
DECLARATION.] There is created in each county in this state 
other than Ramsey and other than those counties in which a 
county housing authority has been created by special act, a 
public body, corporate and politic, to be known as the housing 
and redevelopment authority of that county, hereinafter referred 
to as "county authority." No county authority shall transact any 
business or exercise any powers until the governing body of the 
county, by resolution, finds that there is need for a county 
authority to function in the county.  The governing body shall 
consider the need for a county authority to function (1) on the 
governing body's own motion or (2) upon the filing of a petition 
signed by 25 qualified voters of the county asserting that there 
is need for a county authority to function in the county and 
requesting that the governing body so declare.  The governing 
body shall adopt a resolution declaring that there is need for a 
county authority to function in the county if it makes the 
findings required in section 469.003, subdivision 1. 
    Sec. 17.  Minnesota Statutes 1990, section 469.004, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [RAMSEY COUNTY AUTHORITY.] Ramsey county may 
exercise the powers of a housing and redevelopment authority. 
Before the commencement of a project by Ramsey county acting as 
a housing and redevelopment authority, the governing body of the 
municipality in which the project is to be located shall, by 
majority vote, approve the project as recommended by the 
authority.  The authority granted to Ramsey county under this 
subdivision and section 16 terminates June 30, 1994, providing 
that obligations incurred by the county before that date shall 
remain in effect according to their terms. 
    Sec. 18.  Minnesota Statutes 1990, section 469.034, is 
amended to read: 
    469.034 [BOND ISSUE FOR CORPORATE PURPOSES.] 
    Subdivision 1.  [AUTHORITY AND REVENUE OBLIGATIONS.] An 
authority may issue bonds for any of its corporate purposes.  
The bonds may be the type the authority determines, including 
bonds on which the principal and interest are payable 
exclusively from the income and revenues of the project financed 
with the proceeds of the bonds, or exclusively from the income 
and revenues of certain designated projects, whether or not they 
are financed in whole or in part with the proceeds of the 
bonds.  The bonds may be additionally secured by (1) a pledge of 
any grant or contributions from the federal government or other 
source, or (2) a pledge of any income or revenues of the 
authority from the project for which the proceeds of the bonds 
are to be used, or (3) a mortgage of any project or other 
property of the authority.  
    Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
authority may pledge the general obligation of the general 
jurisdiction governmental unit as additional security for bonds 
payable from income or revenues of the project or the 
authority.  The authority must find that the pledged revenues 
will equal or exceed 110 percent of the principal and interest 
due on the bonds for each year.  The proceeds of the bonds must 
be used for a qualified housing development project or 
projects.  The obligations must be issued and sold in the manner 
and following the procedures provided by chapter 475, except the 
obligations are not subject to approval by the electors.  The 
authority is the municipality for purposes of chapter 475.  
    (b) The principal amount of the issue must be approved by 
the governing body of the general jurisdiction governmental unit 
whose general obligation is pledged.  Public hearings must be 
held on issuance of the obligations by both the authority and 
the general jurisdiction governmental unit.  The hearings must 
be held at least 15 days, but not more than 120 days, before the 
sale of the obligations. 
    (c) The maximum amount of general obligation bonds that may 
be issued and outstanding under this section equals the greater 
of (1) one-half of one percent of the taxable market value of 
the general jurisdiction governmental unit whose general 
obligation which includes a tax on property is pledged, or (2) 
$3,000,000.  In the case of county or multicounty general 
obligation bonds, the outstanding general obligation bonds of 
all cities in the county or counties issued under this 
subdivision must be added in calculating the limit under clause 
(1). 
    (d) "General jurisdiction governmental unit" means the city 
in which the housing development project is located.  In the 
case of a county or multicounty authority, the county or 
counties may act as the general jurisdiction governmental unit.  
In the case of a multicounty authority, the pledge of the 
general obligation is a pledge of a tax on the taxable property 
in each of the counties. 
    (e) "Qualified housing development project" means a housing 
development project providing housing either for the elderly or 
for individuals and families with incomes not greater than 80 
percent of the median family income as estimated by the United 
States Department of Housing and Urban Development for the 
standard metropolitan statistical area or the nonmetropolitan 
county in which the project is located.  A qualified housing 
development project may admit nonelderly individuals and 
families with higher incomes if: 
    (1) three years have passed since initial occupancy; 
    (2) the authority finds the project is experiencing 
unanticipated vacancies resulting in insufficient revenues, 
because of changes in population or other unforeseen 
circumstances that occurred after the initial finding of 
adequate revenues; and 
    (3) the authority finds a tax levy or payment from general 
assets of the general jurisdiction governmental unit will be 
necessary to pay debt service on the bonds if higher income 
individuals or families are not admitted. 
    Subd. 3.  [REVENUE FROM OTHER PROJECTS.] No proceeds of 
bonds issued for or revenue authorized for or derived from any 
redevelopment project or area shall be used to pay the bonds or 
costs of, or make contributions or loans to, any public housing 
project.  The proceeds of bonds issued for or revenues 
authorized for or derived from any one public housing project 
shall not be used to pay the bonds or costs of, or make 
contributions or loans to any other public housing project until 
the bonds and costs of the public housing project for which 
those bonds were issued or from which those revenues were 
derived or for which they were authorized shall be fully paid.  
    Subd. 4.  [BOND TERMS.] Neither the commissioners of an 
authority nor any person executing the bonds shall be liable 
personally on the bonds by reason of the issuance 
thereof.  Except as provided in subdivision 2, the bonds of an 
authority shall not be a debt of the city, the state, or any 
political subdivision, and neither the city nor the state or any 
political subdivision shall be liable on them, nor shall the 
bonds be payable out of any funds or properties other than those 
of the authority; the bonds shall state this on their face.  The 
bonds shall not constitute an indebtedness within the meaning of 
any constitutional or statutory debt limitation or restriction, 
except as provided in subdivision 2.  Bonds of an authority are 
declared to be issued for an essential public and governmental 
purpose and to be public instrumentalities.  
    Subd. 5.  [TAX EXEMPTION.] The provisions of sections 
469.001 to 469.047 exempting from taxation authorities, their 
properties and income, shall be considered additional security 
for the repayment of bonds and shall constitute, by virtue of 
sections 469.001 to 469.047 and without the same being restated 
in the bonds, a contract between the (1) bondholders and each of 
them, including all transferees of the bonds, and (2) the 
respective authorities issuing the bonds and the state.  An 
authority may by covenant confer upon the holder of the bonds 
the rights and remedies it deems necessary or advisable, 
including the right in the event of default to have a receiver 
appointed to take possession of and operate the project.  When 
the obligations issued by an authority to assist in financing 
the development of a project have been retired and federal 
contributions have been discontinued, the exemptions from taxes 
and special assessments for that project shall terminate. 
    Sec. 19.  Minnesota Statutes 1990, section 469.153, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROJECT.] (a) "Project" means (1) any 
properties, real or personal, used or useful in connection with 
a revenue producing enterprise, or any combination of two or 
more such enterprises engaged or to be engaged in generating, 
transmitting, or distributing electricity, assembling, 
fabricating, manufacturing, mixing, processing, storing, 
warehousing, or distributing any products of agriculture, 
forestry, mining, or manufacture, or in research and development 
activity in this field; (2) any properties, real or personal, 
used or useful in the abatement or control of noise, air, or 
water pollution, or in the disposal of solid wastes, in 
connection with a revenue producing enterprise, or any 
combination of two or more such enterprises engaged or to be 
engaged in any business or industry; (3) any properties, real or 
personal, used or useful in connection with the business of 
telephonic communications, conducted or to be conducted by a 
telephone company, including toll lines, poles, cables, 
switching, and other electronic equipment and administrative, 
data processing, garage, and research and development 
facilities; (4) any properties, real or personal, used or useful 
in connection with a district heating system, consisting of the 
use of one or more energy conversion facilities to produce hot 
water or steam for distribution to homes and businesses, 
including cogeneration facilities, distribution lines, service 
facilities, and retrofit facilities for modifying the user's 
heating or water system to use the heat energy converted from 
the steam or hot water.  
      (b) "Project" also includes any properties, real or 
personal, used or useful in connection with a revenue producing 
enterprise, or any combination of two or more such enterprises 
engaged in any business. 
       (c) "Project" also includes any properties, real or 
personal, used or useful for the promotion of tourism in the 
state.  Properties may include hotels, motels, lodges, resorts, 
recreational facilities of the type that may be acquired under 
section 471.191, and related facilities.  
      (d) "Project" also includes any properties, real or 
personal, used or useful in connection with a revenue producing 
enterprise, whether or not operated for profit, engaged in 
providing health care services, including hospitals, nursing 
homes, and related medical facilities. 
       (e) "Project" does not include any property to be sold or 
to be affixed to or consumed in the production of property for 
sale, and does not include any housing facility to be rented or 
used as a permanent residence.  
      (f) "Project" also means the activities of any revenue 
producing enterprise involving the construction, fabrication, 
sale, or leasing of equipment or products to be used in 
gathering, processing, generating, transmitting, or distributing 
solar, wind, geothermal, biomass, agricultural or forestry 
energy crops, or other alternative energy sources for use by any 
person or any residential, commercial, industrial, or 
governmental entity in heating, cooling, or otherwise providing 
energy for a facility owned or operated by that person or entity.
    (g) "Project" also includes any properties, real or 
personal, used or useful in connection with a county jail or, 
county regional jail, community corrections facilities 
authorized by chapter 401, or other law enforcement facilities, 
the plans for which are approved by the commissioner of 
corrections; provided that the provisions of section 469.155, 
subdivisions 7 and 13, do not apply to those projects. 
    (h) "Project" also includes any real properties used or 
useful in furtherance of the purposes and policies of sections 
469.135 to 469.141.  
    (i) "Project" also includes related facilities as defined 
by section 471A.02, subdivision 11. 
    (j) "Project" also includes an undertaking to purchase the 
obligations of local governments located in whole or in part 
within the boundaries of the municipality that are issued or to 
be issued for public purposes.  
    Sec. 20.  Minnesota Statutes 1991 Supplement, section 
508.25, is amended to read: 
    508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.] 
    Every person receiving a certificate of title pursuant to a 
decree of registration and every subsequent purchaser of 
registered land who receives a certificate of title in good 
faith and for a valuable consideration shall hold it free from 
all encumbrances and adverse claims, excepting only the estates, 
mortgages, liens, charges, and interests as may be noted in the 
last certificate of title in the office of the registrar, and 
also excepting any of the following rights or encumbrances 
subsisting against it, if any: 
    (1) liens, claims, or rights arising or existing under the 
laws or the constitution of the United States, which this state 
cannot require to appear of record; 
    (2) the lien of any real property tax or special assessment 
for which the land has not been sold at the date of the 
certificate of title; 
    (3) any lease for a period not exceeding three years when 
there is actual occupation of the premises thereunder; 
    (4) all rights in public highways upon the land; 
    (5) the right of appeal, or right to appear and contest the 
application, as is allowed by this chapter; 
    (6) the rights of any person in possession under deed or 
contract for deed from the owner of the certificate of 
title; and 
    (7) any outstanding mechanics lien rights which may exist 
under sections 514.01 to 514.17; and 
    (8) any lien for state taxes. 
    No existing or future lien for state taxes arising under 
the laws of this state for the nonpayment of any amounts due 
under chapter 268 or any tax administered by the commissioner of 
revenue may encumber title to lands registered under this 
chapter unless filed under the terms of this chapter.  
    Sec. 21.  Minnesota Statutes 1991 Supplement, section 
508A.25, is amended to read: 
    508A.25 [RIGHTS OF PERSON HOLDING CPT.] 
    Every person holding a CPT issued pursuant to sections 
508A.01 to 508A.85 who has acquired title in good faith and for 
a valuable consideration shall hold the same free from all 
encumbrances and adverse claims, excepting only estates, 
mortgages, liens, charges, and interests as may be noted by 
separate memorials in the latest CPT in the office of the 
registrar, and also excepting the memorial provided in section 
508A.351 and any of the following rights or encumbrances 
subsisting against the same, if any:  
    (1) Liens, claims, or rights arising or existing under the 
laws or the constitution of the United States, which this state 
cannot require to appear of record; 
    (2) The lien of any real property tax or special assessment 
for which the land has not been sold at the date of the CPT; 
    (3) Any lease for a period not exceeding three years when 
there is actual occupation of the premises under it; 
    (4) All rights in public highways upon the land; 
    (5) The rights of any person in possession under deed or 
contract for deed from the owner of the CPT; 
    (6) Any liens, encumbrances, and other interests that may 
be contained in the examiner's supplemental directive issued 
pursuant to section 508A.22, subdivision 2; 
    (7) Any claims that may be made pursuant to section 508A.17 
within five years from the date the examiner's supplemental 
directive is filed on the CPT; and 
    (8) Any outstanding mechanics lien rights which may exist 
under sections 514.01 to 514.17; and 
    (9) any lien for state taxes.  
    No existing or future lien for state taxes arising under 
the laws of this state for the nonpayment of any amounts due 
under chapter 268 or any tax administered by the commissioner of 
revenue may encumber title to lands registered under this 
chapter unless filed under the terms of this chapter. 
    Sec. 22.  Minnesota Statutes 1990, section 641.24, is 
amended to read: 
    641.24 [LEASING.] 
    The county may, by resolution of the county board, enter 
into a lease agreement with any statutory or home rule charter 
city situated within the county, or a county housing and 
redevelopment authority established pursuant to chapter 462 469 
or any special law whereby the city or county housing and 
redevelopment authority will construct a jail or other law 
enforcement facilities for the county sheriff, deputy sheriffs, 
and other employees of the sheriff and other law enforcement 
agencies, in accordance with plans prepared by or at the request 
of the county board and, when required, approved by the 
commissioner of corrections and will finance it by the issuance 
of revenue bonds, and the county may lease the jail site and 
improvements for a term and upon rentals sufficient to produce 
revenue for the prompt payment of the bonds and all interest 
accruing thereon and, upon completion of payment, will acquire 
title thereto.  The real and personal property acquired for the 
jail shall constitute a project and the lease agreement shall 
constitute a revenue agreement as contemplated in chapter 474 
469, and all proceedings shall be taken by the city or county 
housing and redevelopment authority and the county in the manner 
and with the force and effect provided in chapter 474 469; 
provided that: 
    (1) no tax shall be imposed upon or in lieu of a tax upon 
the property; 
    (2) the approval of the project by the commissioner of 
commerce shall not be required; 
    (3) the department of corrections shall be furnished and 
shall record such information concerning each project as it may 
prescribe, in lieu of reports required on other projects to the 
commissioner of trade and economic development; 
    (4) the rentals required to be paid under the lease 
agreement shall not exceed in any year one-tenth of one percent 
of the market value of property within the county, as last 
finally equalized before the execution of the agreement; 
    (5) the county board shall provide for the payment of all 
rentals due during the term of the lease, in the manner required 
in section 641.264, subdivision 2; 
    (6) no mortgage on the jail property shall be granted for 
the security of the bonds, but compliance with clause (5) hereof 
may be enforced as a nondiscretionary duty of the county board; 
and 
    (7) the county board may sublease any part of the jail 
property for purposes consistent with the maintenance and 
operation of a county jail or other law enforcement facility. 
    Sec. 23.  Laws 1971, chapter 773, section 1, subdivision 2, 
as amended by Laws 1974, chapter 351, section 5, Laws 1976, 
chapter 234, section 7, Laws 1978, chapter 788, section 1, Laws 
1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, 
and Laws 1988, chapter 513, section 1, is amended to read: 
    Subd. 2.  For each of the years through 1993, inclusive 
1998, the city of St. Paul is authorized to issue bonds in the 
aggregate principal amount of $8,000,000 for each year; or in an 
amount equal to one-fourth of one percent of the assessors 
estimated market value of taxable property in St. Paul, 
whichever is greater, provided that no more than $8,000,000 of 
bonds is authorized to be issued in any year, unless St. Paul's 
local general obligation debt as defined in this section is less 
than six percent of market value calculated as of December 31 of 
the preceding year; but at no time shall the aggregate principal 
amount of bonds authorized exceed $11,300,000 in 1987, 
$12,000,000 in 1988, $13,300,000 in 1989, $14,000,000 in 1990, 
$14,800,000 in 1991, $15,700,000 in 1992, and $16,600,000 in 
1993, $16,600,000 in 1994, $16,600,000 in 1995, $17,500,000 in 
1996, $17,500,000 in 1997, and $18,000,000 in 1998. 
    Sec. 24.  Laws 1971, chapter 773, section 2, as amended by 
Laws 1978, chapter 788, section 2, Laws 1983, chapter 302, 
section 2, and Laws 1988, chapter 513, section 2, is amended to 
read: 
    Sec. 2.  The proceeds of all bonds issued pursuant to 
section 1 hereof shall be used exclusively for the acquisition, 
construction, and repair of capital improvements and, commencing 
in the year 1989 1992 and notwithstanding any provision in Laws 
1978, chapter 788, section 5, as amended, for redevelopment 
project activities as defined in Minnesota Statutes, section 
469.002, subdivision 14, in accordance with Minnesota Statutes, 
section 469.041, clause (6).  The amount of proceeds of bonds 
authorized by section 1 used for redevelopment project 
activities shall not exceed $530,000 in 1988, $560,000 in 1989, 
$590,000 in 1990, $620,000 in 1991, $655,000 in 1992, and 
$690,000 in 1993, $690,000 in 1994, $690,000 in 1995, $700,000 
in 1996, $700,000 in 1997, and $725,000 in 1998. 
    None of the proceeds of any bonds so issued shall be 
expended except upon projects which have been reviewed, and have 
received a priority rating, from a capital improvements 
committee consisting of 18 members, of whom a majority shall not 
hold any paid office or position under the city of St. Paul.  
The members shall be appointed by the mayor, with at least four 
members from each Minnesota senate district located entirely 
within the city and at least two members from each senate 
district located partly within the city.  Prior to making an 
appointment to a vacancy on the capital improvement budget 
committee, the mayor shall consult the legislators of the senate 
district in which the vacancy occurs.  The priorities and 
recommendations of the committee shall be purely advisory, and 
no buyer of any bonds shall be required to see to the 
application of the proceeds. 
    Sec. 25.  [JOINT TAX ADVISORY COMMITTEE.] 
    The city of St. Paul, independent school district No. 625, 
and Ramsey county may establish a St. Paul joint tax levy 
advisory committee.  The committee shall elect a chair from 
among its members and shall meet from time to time to make 
appropriate recommendations for the efficient and effective use 
of property tax dollars raised by levies by the jurisdictions 
for programs, buildings, and operations. 
    Sec. 26.  [RICHFIELD; TAX INCREMENT.] 
    Subdivision 1.  [COMPUTATION OF TAX 
INCREMENT.] Notwithstanding the provisions of Minnesota 
Statutes, section 469.177, subdivision 3, paragraph (c), the 
governing body of the city of Richfield may change its election 
of a method for computing tax increment for the tax increment 
financing district certified on December 5, 1985, and known as 
the Interstate, Lyndale, Nicollet District.  The governing body 
may change its election from the computation in Minnesota 
Statutes, section 469.177, subdivision 3, paragraph (b), to the 
computation in Minnesota Statutes, section 469.177, subdivision 
3, paragraph (a), or the alternative method described in 
subdivision 2. 
    Subd. 2.  [ALTERNATIVE CALCULATION METHOD.] Pursuant to the 
election authorized in subdivision 1, the governing body of the 
city of Richfield may elect the following method of computation: 
    (1) The original net tax capacity must be determined before 
the application of the fiscal disparity provisions of Minnesota 
Statutes, chapter 473F.  The current net tax capacity must 
exclude any fiscal disparity commercial-industrial net tax 
capacity increase between the original year and the current year 
multiplied by a ratio that is less than the fiscal disparity 
ratio determined pursuant to Minnesota Statutes, section 
473F.08, subdivision 6.  The ratio, which must be a percentage 
of the fiscal disparity ratio, must be determined by the 
governing body and must remain in effect during the term of the 
district.  Where the original net tax capacity is equal to or 
greater than the current net tax capacity, there is no captured 
net tax capacity and no tax increment determination. 
    (2) The county auditor shall exclude the retained captured 
net tax capacity of the authority from the net tax capacity of 
the local taxing districts in determining local taxing district 
tax capacity rates.  The tax capacity rates so determined must 
be extended against the retained captured net tax capacity of 
the authority as well as the net tax capacity of the local 
taxing districts.  The tax generated by the extension of the 
lesser of (i) the local taxing district tax capacity rates or 
(ii) the original tax capacity rate to the retained captured net 
tax capacity of the authority is the tax increment of the 
authority. 
    Sec. 27.  [MINNEAPOLIS; PLAZA AND PARKING BONDS.] 
    Subdivision 1.  [AUTHORIZATION.] The city of Minneapolis 
may issue and sell general obligation bonds for the acquisition 
of land for and the construction of: 
    (1) a plaza and public parking facility adjacent to a 
federal courts facility to be located in downtown Minneapolis; 
    (2) a city garage and parking facility to replace 
facilities located on property to be used for the federal courts 
facility; and 
    (3) a connecting tunnel and other appurtenant facilities. 
    Subd. 2.  [CONDITIONS.] The bonds shall be issued and sold 
under Minnesota Statutes, chapter 475, except that the bonds are 
not subject to the election requirements of chapter 475 or the 
charter of the city regardless of the amount of the bonds.  The 
bonds shall not be included in computing the net debt of the 
city under law or charter.  The powers granted by this section 
are in addition to the powers which the city may exercise under 
other law or charter. 
     Sec. 28.  [CITY OF MINNEAPOLIS; DURATION OF TAX INCREMENT 
DISTRICT.] 
    Notwithstanding Minnesota Statutes, section 469.176, 
subdivision 1, the duration of the Laurel Village tax increment 
financing district, district No. 64, located within the city of 
Minneapolis, may be extended by the authority through the year 
2015.  Any increment received for the years 2013 to 2015 may 
only be utilized to pay obligations provided for under the 
Laurel Village contract for private development, including use 
for payment of or to secure payment of, debt service on bonds 
issued in aid of the Laurel Village project or bonds issued to 
refund those bonds.  Any increment received for years 2013 to 
2015 that is not used for the purposes described in this section 
must be paid proportionately to the municipality, county, and 
school district as provided in Minnesota Statutes, section 
469.176, subdivision 2. 
    Sec. 29.  [ST. LOUIS PARK; TAX INCREMENT.] 
    Subdivision 1.  [AUTHORIZATION.] The city of St. Louis 
Park, or its redevelopment agencies, may create a hazardous 
substance subdistrict within the Excelsior Boulevard 
redevelopment project ("district"), under Minnesota Statutes, 
section 469.175, subdivision 7, and issue bonds or other 
obligations payable in whole or in part from increment derived 
from the subdistrict or district upon a finding by city 
resolution that establishment of a subdistrict will facilitate 
environmental remediation and reduce the likelihood of 
litigation.  The request for certification of the subdistrict 
must be filed with the county auditor before December 1, 1995.  
The city may defer receipt of the first increment from a 
subdistrict for up to three years following certification.  
Minnesota Statutes, sections 469.174, subdivision 7, paragraph 
(c); and 469.176, subdivisions 1, paragraph (d); 4e; 6; and 7, 
do not apply to a subdistrict.  Nothing in this section affects 
the liability of persons for costs or damages associated with 
the release of hazardous substances, the city's right to pursue 
responsible parties or reimbursement under applicable insurance 
contracts, or the city's liability under Minnesota Statutes, 
section 115B.04, subdivision 4.  The powers granted are in 
addition to other powers of the city. 
    Subd. 2.  [RESTRICTIONS; SUBDISTRICT SIZE.] The subdistrict 
created under this section must be contiguous and may not exceed 
20 acres. 
    Subd. 3.  [QUALIFICATION RULES.] Before creation of a 
subdistrict under subdivision 1, the governing body of the city 
of St. Louis Park must find that the sum of remediation costs 
related to the subdistrict and deposits to the indemnification 
fund or premiums for the purchase of private environmental 
insurance necessary to develop the site exceeds the estimated 
fair market value of the land in the subdistrict after 
completion of all necessary remediation activities and provision 
of indemnification under the plan. 
    Subd. 4.  [LIMITS ON SPENDING INCREMENTS; POOLING 
RULES.] The provisions of Minnesota Statutes 1990, section 
469.1763, do not apply to the subdistrict created under this 
section.  Revenues derived from tax increments from the 
subdistrict may be spent only on: 
    (1) remediation and associated costs related to the area 
contained in the subdistrict, including the activities outside 
of the subdistrict to the extent necessary to prevent 
contaminants moving to or from the site; 
    (2) deposits to an indemnification fund or the purchase of 
environmental insurance, relating only to liability or 
additional remediation costs for contaminated parcels located in 
the subdistrict; and 
     (3) administrative expenses and costs permitted under 
Minnesota Statutes 1990, section 469.176, subdivision 4h. 
    After sufficient revenues derived from tax increments have 
been received to pay all remediation costs, deposits to an 
indemnification fund or insurance premiums, and administrative 
and other qualifying costs the subdistrict must be decertified. 
    Subd. 5.  [STATE AID REDUCTIONS.] The state aid reductions 
under Minnesota Statutes 1990, section 273.1399, do not apply to 
the subdistrict, if the city elects to pay and pays 25 percent 
of the remediation costs and deposits to the indemnification 
fund out of its general fund, a property tax levy for that 
purpose, or other unrestricted city money (other than tax 
increments).  The city must elect this option at the time of 
certification of the district and must notify the commissioner 
of revenue of its election.  The election is irrevocable. 
     Subd. 6.  [DEFINITION.] For purposes of this section, 
"remediation" means activity constituting "removal," "remedy," 
"remedial action," or "response" as those terms are defined in 
Minnesota Statutes, section 115B.02.  Remediation costs include 
activities, including installation of public infrastructure, 
necessary to accomplish remediation. 
     Subd. 7.  [EFFECTIVE DATE.] This section is effective upon 
compliance by the city of St. Louis Park with Minnesota 
Statutes, section 645.021, subdivision 3. 
    Sec. 30.  [ST. PAUL; TAX INCREMENT.] 
    Subdivision 1.  [AUTHORIZATION.] The city of St. Paul, or 
its redevelopment agencies, may create a hazardous substance 
subdistrict in the Lower Payne Avenue study area, under 
Minnesota Statutes, section 469.175, subdivision 7, and issue 
bonds or other obligations payable in whole or in part from 
increment derived from the subdistrict or district upon a 
finding by city resolution that establishment of a subdistrict 
will facilitate environmental remediation and reduce the 
likelihood of litigation.  The request for certification of the 
subdistrict must be filed with the county auditor before 
December 1, 1995.  The city may defer receipt of the first 
increment from a subdistrict for up to three years following 
certification.  Minnesota Statutes, sections 469.174, 
subdivision 7, paragraph (c); and 469.176, subdivisions 1, 
paragraph (d); 4e; 6; and 7, do not apply to a subdistrict.  
Nothing in this section affects the liability of persons for 
costs or damages associated with the release of hazardous 
substances, the city's right to pursue responsible parties or 
reimbursement under applicable insurance contracts, or the 
city's liability under Minnesota Statutes, section 115B.04, 
subdivision 4.  The powers granted are in addition to other 
powers of the city. 
    Subd. 2.  [RESTRICTIONS; SUBDISTRICT SIZE.] The subdistrict 
created under this section must be contiguous and may not exceed 
ten acres. 
    Subd. 3.  [QUALIFICATION RULES.] Before creation of a 
subdistrict under subdivision 1, the governing body of the city 
of St. Paul must find that the sum of remediation costs related 
to the subdistrict and deposits to the indemnification fund or 
premiums for the purchase of private environmental insurance 
necessary to develop the site exceeds the estimated fair market 
value of the land in the subdistrict after completion of all 
necessary remediation activities and provision of 
indemnification under the plan. 
    Subd. 4.  [LIMITS ON SPENDING INCREMENTS; POOLING 
RULES.] The provisions of Minnesota Statutes 1990, section 
469.1763, do not apply to the subdistrict created under this 
section.  Revenues derived from tax increments from the 
subdistrict may be spent only on: 
    (1) remediation and associated costs related to the area 
contained in the subdistrict, including the activities outside 
of the subdistrict to the extent necessary to prevent 
contaminants moving to or from the site; 
    (2) deposits to an indemnification fund or the purchase of 
environmental insurance, relating only to liability or 
additional remediation costs for contaminated parcels located in 
the subdistrict; and 
    (3) administrative expenses and costs permitted under 
Minnesota Statutes 1990, section 469.176, subdivision 4h. 
    After sufficient revenues derived from tax increments have 
been received to pay all remediation costs, deposits to an 
indemnification fund or insurance premiums, and administrative 
and other qualifying costs the subdistrict must be decertified. 
    Subd. 5.  [STATE AID REDUCTIONS.] (a) The state aid 
reductions under Minnesota Statutes 1990, section 273.1399, do 
not apply to the subdistrict, if the city elects to pay and pays 
25 percent of the remediation costs and deposits to the 
indemnification fund out of its general fund, a property tax 
levy for that purpose, or other unrestricted city money (other 
than tax increments).  The city must elect this option at the 
time of certification of the district and must notify the 
commissioner of revenue of its election.  The election is 
irrevocable. 
    (b) If the city elects this option, tax capacity captured 
by the subdistrict must not be included in the calculation of 
state aid reduction for the district under Minnesota Statutes, 
section 273.1399. 
    Subd. 6.  [DEFINITION.] For purposes of this section, 
"remediation" means activity constituting "removal," "remedy," 
"remedial action," or "response" as those terms are defined in 
Minnesota Statutes, section 115B.02.  Remediation costs include 
activities, including installation of public infrastructure, 
necessary to accomplish remediation. 
    Subd. 7.  [EFFECTIVE DATE.] This section is effective upon 
compliance by the city of St. Paul with Minnesota Statutes, 
section 645.021, subdivision 3. 
    Sec. 31.  [APPROPRIATIONS; TAX SAMPLE.] 
    $75,000 is appropriated to the commissioner of revenue for 
purposes of preparing a microdata sample of individual income 
tax returns and other data for taxable year 1991.  This 
appropriation may be used in either fiscal year 1992 or 1993. 
    Sec. 32.  [APPROPRIATION.] 
    $1,000,000 is appropriated from the general fund to the 
commissioner of the Minnesota housing finance agency to be 
deposited in the housing trust fund account created under 
Minnesota Statutes, section 462A.201, and used for the purposes 
provided in that section. 
    Sec. 33.  [REPEALER.] 
    Section 7 is repealed effective for taxable years beginning 
after December 31, 1993. 
    Minnesota Statutes 1990, section 298.24, subdivision 4, is 
repealed. 
    Sec. 34.  [EFFECTIVE DATE.] 
    Sections 2 and 3 are effective July 1, 1992. 
    Sections 4, 13, 14, 15, 19, and 22 are effective the day 
following final enactment. 
    Section 5 is effective for liens filed on or after the day 
following final enactment. 
    Section 12 is effective for certificates of indebtedness 
issued after the day of final enactment. 
    Sections 20 and 21 are effective retroactively to December 
31, 1991. 
    Sections 23 and 24 are effective the day after compliance 
with Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of St. Paul. 
    Section 26 is effective the day after compliance with 
Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of Richfield.  
    Section 27 is effective the day after compliance with 
Minnesota Statutes, section 645.021, subdivision 3, by the 
governing body of the city of Minneapolis. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 24, 1992, 11:13 a.m.

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