1.1 	A bill for an act
1.2 	relating to taxation; abolishing levy limits;amending Minnesota Statutes 2010, 
1.3 	sections 275.065, subdivision 3; 275.16; 275.62, subdivision 1; 473.167, 
1.4 	subdivision 3; 473.249, subdivision 1; 473.253, subdivision 1; repealing 
1.5 	Minnesota Statutes 2010, sections 275.70; 275.71, subdivisions 1, 2, 4, 5, 6; 
1.6 	275.72; 275.73; 275.74; 275.75.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
1.9 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
1.10 	and the county treasurer shall deliver after November 10 and on or before November 24 
1.11 	each year, by first class mail to each taxpayer at the address listed on the county's current 
1.12 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
1.13 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
1.14 	instead of on paper or by ordinary mail.
1.15 	(b) The commissioner of revenue shall prescribe the form of the notice.
1.16 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
1.17 	each taxing authority proposes to collect for taxes payable the following year. In the 
1.18 	case of a town, or in the case of the state general tax, the final tax amount will be its 
1.19 	proposed tax. The notice must clearly state for each city that has a population over 500, 
1.20 	county, school district, regional library authority established under section 134.201, and 
1.21 	metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting 
1.22 	for each taxing authority in which the budget and levy will be discussed and public 
1.23 	input allowed, prior to the final budget and levy determination. The taxing authorities 
1.24 	must provide the county auditor with the information to be included in the notice on or 
1.25 	before the time it certifies its proposed levy under subdivision 1. The public must be 
2.1 	allowed to speak at that meeting, which must occur after November 24 and must not be 
2.2 	held before 6:00 p.m. It must provide a telephone number for the taxing authority that 
2.3 	taxpayers may call if they have questions related to the notice and an address where 
2.4 	comments will be received by mail, except that no notice required under this section 
2.5 	shall be interpreted as requiring the printing of a personal telephone number or address 
2.6 	as the contact information for a taxing authority. If a taxing authority does not maintain 
2.7 	public offices where telephone calls can be received by the authority, the authority may 
2.8 	inform the county of the lack of a public telephone number and the county shall not list a 
2.9 	telephone number for that taxing authority.
2.10 	(d) The notice must state for each parcel:
2.11 	(1) the market value of the property as determined under section 273.11, and used 
2.12 	for computing property taxes payable in the following year and for taxes payable in the 
2.13 	current year as each appears in the records of the county assessor on November 1 of the 
2.14 	current year; and, in the case of residential property, whether the property is classified as 
2.15 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
2.16 	which the market values apply and that the values are final values;
2.17 	(2) the items listed below, shown separately by county, city or town, and state general 
2.18 	tax, net of the residential and agricultural homestead credit under section 273.1384, voter 
2.19 	approved school levy, other local school levy, and the sum of the special taxing districts, 
2.20 	and as a total of all taxing authorities:
2.21 	(i) the actual tax for taxes payable in the current year; and
2.22 	(ii) the proposed tax amount.
2.23 	If the county levy under clause (2) includes an amount for a lake improvement 
2.24 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
2.25 	purpose must be separately stated from the remaining county levy amount.
2.26 	In the case of a town or the state general tax, the final tax shall also be its proposed 
2.27 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
2.28 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
2.29 	be held in the school district at the November general election, the county auditor must 
2.30 	note next to the school district's proposed amount that a referendum is pending and that, if 
2.31 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
2.32 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
2.33 	listed separately from the remaining amount of the city's levy. In the case of the city of 
2.34 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
2.35 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
2.36 	under section 134.07 may be listed separately from the remaining amount of the county's 
3.1 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
3.2 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
3.3 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
3.4 	separately and not included in the sum of the special taxing districts; and
3.5 	(3) the increase or decrease between the total taxes payable in the current year and 
3.6 	the total proposed taxes, expressed as a percentage.
3.7 	For purposes of this section, the amount of the tax on homesteads qualifying under 
3.8 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
3.9 	of property tax before subtraction of the deferred property tax amount.
3.10 	(e) The notice must clearly state that the proposed or final taxes do not include 
3.11 	the following:
3.12 	(1) special assessments;
3.13 	(2) levies approved by the voters after the date the proposed taxes are certified, 
3.14 	including bond referenda and school district levy referenda;
3.15 	(3) ~~a levy limit increase approved by the voters by the first Tuesday after the first~~ 
3.16 	~~Monday in November of the levy year as provided under section 275.73;~~
3.17 	~~(4)~~ amounts necessary to pay cleanup or other costs due to a natural disaster 
3.18 	occurring after the date the proposed taxes are certified;
3.19 	~~(5)~~ (4) amounts necessary to pay tort judgments against the taxing authority that 
3.20 	become final after the date the proposed taxes are certified; and
3.21 	~~(6)~~ (5) the contamination tax imposed on properties which received market value 
3.22 	reductions for contamination.
3.23 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
3.24 	the county treasurer to deliver the notice as required in this section does not invalidate the 
3.25 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
3.26 	(g) If the notice the taxpayer receives under this section lists the property as 
3.27 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
3.28 	applicable deadline, and the property qualifies for the homestead classification in that 
3.29 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
3.30 	in the following year.
3.31 	(h) In the case of class 4 residential property used as a residence for lease or rental 
3.32 	periods of 30 days or more, the taxpayer must either:
3.33 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
3.34 	renter, or lessee; or
3.35 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
4.1 	The notice must be mailed or posted by the taxpayer by November 27 or within 
4.2 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
4.3 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
4.4 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
4.5 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
4.6 	districts" means the following taxing districts in the seven-county metropolitan area that 
4.7 	levy a property tax for any of the specified purposes listed below:
4.8 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
4.9 	473.446, 473.521, 473.547, or 473.834;
4.10 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
4.11 	and
4.12 	(3) Metropolitan Mosquito Control Commission under section 473.711.
4.13 	For purposes of this section, any levies made by the regional rail authorities in the 
4.14 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
4.15 	398A shall be included with the appropriate county's levy.
4.16 	(j) The governing body of a county, city, or school district may, with the consent 
4.17 	of the county board, include supplemental information with the statement of proposed 
4.18 	property taxes about the impact of state aid increases or decreases on property tax 
4.19 	increases or decreases and on the level of services provided in the affected jurisdiction. 
4.20 	This supplemental information may include information for the following year, the current 
4.21 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
4.22 	body of the county, city, or school district. It may include only information regarding:
4.23 	(1) the impact of inflation as measured by the implicit price deflator for state and 
4.24 	local government purchases;
4.25 	(2) population growth and decline;
4.26 	(3) state or federal government action; and
4.27 	(4) other financial factors that affect the level of property taxation and local services 
4.28 	that the governing body of the county, city, or school district may deem appropriate to 
4.29 	include.
4.30 	The information may be presented using tables, written narrative, and graphic 
4.31 	representations and may contain instruction toward further sources of information or 
4.32 	opportunity for comment.

4.33 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
4.34 	in 2012, and thereafter.

5.1 	Sec. 2. Minnesota Statutes 2010, section 275.16, is amended to read:
5.2 	275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.
5.3 	If any ~~such~~ municipality ~~shall return~~ returns to the county auditor a levy greater 
5.4 	than permitted by chapters 123A, 123B, 124D, 126C, and 136C~~,~~and sections 275.124
5.5 	to 275.16, ~~and 275.70 to 275.74, such~~ the county auditor shall extend only ~~such~~ the
5.6 	amount of taxes as the limitations ~~herein~~ prescribed ~~will~~ in this section permit; provided, 
5.7 	if ~~such~~ the levy ~~shall include~~ includes any levy for the payment of bonded indebtedness 
5.8 	or judgments, ~~such~~ the levies for bonded indebtedness or judgments shall be extended 
5.9 	in full, and the remainder of the levies shall be reduced so that the total ~~thereof~~ of the 
5.10 	levies, including levies for bonds and judgments, shall not exceed ~~such~~ the amount ~~as~~ the 
5.11 	limitations ~~herein~~ prescribed ~~will~~ in this section permit.

5.12 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
5.13 	in 2012, and thereafter.

5.14 	Sec. 3. Minnesota Statutes 2010, section 275.62, subdivision 1, is amended to read:
5.15 		Subdivision 1.Report on taxes levied. The commissioner of revenue shall establish 
5.16 	procedures for the annual reporting of local government levies. Each local governmental 
5.17 	unit shall submit a report to the commissioner by December 30 of the year in which the 
5.18 	tax is levied. The report shall include, but is not limited to, information on the amount of 
5.19 	the tax levied by the governmental unit for ~~the following purposes:~~ all purposes.
5.20 	~~(1) social services and related programs, which include taxes levied for the purposes~~ 
5.21 	~~defined in Minnesota Statutes 1991 Supplement, section 275.50, subdivision 5, clauses~~ 
5.22 	~~(a), (j), and (v);~~  
5.23 	~~(2) the amounts levied for each of the purposes listed in section 275.70, subdivision~~ 
5.24 	~~5; and~~  
5.25 	~~(3) other levies, which include the taxes levied for all purposes not included in~~ 
5.26 	~~clause (1), (2), or (3).~~

5.27 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
5.28 	in 2012, and thereafter.

5.29 	Sec. 4. Minnesota Statutes 2010, section 473.167, subdivision 3, is amended to read:
5.30 		Subd. 3.Tax. The council may levy a tax on all taxable property in the metropolitan 
5.31 	area, as defined in section 473.121, to provide funds for loans made pursuant to 
5.32 	subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified 
5.33 	by the council, levied, and collected in the manner provided by section 473.13. The tax 
6.1 	shall be in addition to that authorized by section 473.249 and any other law and shall not 
6.2 	affect the amount or rate of taxes which may be levied by the council or any metropolitan 
6.3 	agency or local governmental unit. The amount of the levy shall be as determined and 
6.4 	certified by the council, provided that the tax levied by the Metropolitan Council for the 
6.5 	right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004 
6.6 	and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in 
6.7 	2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's 
6.8 	property tax levy limitation under this subdivision for the previous year, multiplied by 
6.9 	(2) one plus a percentage equal to the growth in the implicit price deflator as defined 
6.10 	in section ~~275.70~~ 275.025, subdivision 2. 

6.11 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
6.12 	in 2012, and thereafter.

6.13 	Sec. 5. Minnesota Statutes 2010, section 473.249, subdivision 1, is amended to read:
6.14 		Subdivision 1.Indexed limit. (a) The Metropolitan Council may levy a tax on all 
6.15 	taxable property in the metropolitan area defined in section 473.121 to provide funds for 
6.16 	the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other 
6.17 	responsibilities of the council as provided by law. This tax for general purposes shall be 
6.18 	levied and collected in the manner provided by section 473.13. 
6.19 	(b) The property tax levied by the Metropolitan Council for general purposes shall 
6.20 	not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable 
6.21 	in 2005.
6.22 	(c) The property tax levy limitation for general purposes for taxes payable in 2006 
6.23 	and subsequent years shall not exceed the product of: (1) the Metropolitan Council's 
6.24 	property tax levy limitation for general purposes for the previous year determined under 
6.25 	this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit 
6.26 	price deflator as defined in section ~~275.70~~ 275.025, subdivision 2. 

6.27 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
6.28 	in 2012, and thereafter.

6.29 	Sec. 6. Minnesota Statutes 2010, section 473.253, subdivision 1, is amended to read:
6.30 		Subdivision 1.Sources of funds. The council shall credit to the livable communities 
6.31 	demonstration account the revenues provided in this subdivision. This tax shall be levied 
6.32 	and collected in the manner provided by section 473.13. The levy shall not exceed the 
6.33 	following amount for the years specified: 
7.1 	(1) for taxes payable in 2004 and 2005, $8,259,070; and
7.2 	(2) for taxes payable in 2006 and subsequent years, the product of (i) the property 
7.3 	tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a 
7.4 	percentage equal to the growth in the implicit price deflator as defined in section ~~275.70~~
7.5 	275.025, subdivision 2. 

7.6 	EFFECTIVE DATE. This section is effective for taxes levied in 2011, payable 
7.7 	in 2012, and thereafter.

7.8 	Sec. 7.  REPEALER.
 7.9 	Minnesota Statutes 2010, sections 275.70; 275.71, subdivisions 1, 2, 4, 5, and 6; 
7.10 	275.72; 275.73; 275.74; and 275.75, are repealed.

7.11 	EFFECTIVE DATE. This section is effective for taxes levied in 2011 and thereafter.