1.1 	A bill for an act
1.2 	relating to property taxation; making permanent the
1.3 	limited market value law; amending Minnesota Statutes
1.4 	2004, section 273.11, subdivision 1a.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 273.11,
1.7 	subdivision 1a, is amended to read:
1.8 		Subd. 1a.Limited market value.  In the case of all
1.9 	property classified as agricultural homestead or nonhomestead,
1.10 	residential homestead or nonhomestead, timber, or noncommercial
1.11 	seasonal residential recreational, the assessor shall compare
1.12 	the value with the taxable portion of the value determined in
1.13 	the preceding assessment.
1.14 	For assessment year 2002 2005 and thereafter, the amount of
1.15 	the increase shall not exceed the greater of (1) ten percent of
1.16 	the value in the preceding assessment, or (2) 15 percent of the
1.17 	difference between the current assessment and the preceding
1.18 	assessment.
1.19 	For assessment year 2003, the amount of the increase shall
1.20 	not exceed the greater of (1) 12 percent of the value in the
1.21 	preceding assessment, or (2) 20 percent of the difference
1.22 	between the current assessment and the preceding assessment.
1.23 	For assessment year 2004, the amount of the increase shall
1.24 	not exceed the greater of (1) 15 percent of the value in the
1.25 	preceding assessment, or (2) 25 percent of the difference
2.1 	between the current assessment and the preceding assessment.
2.2 	For assessment year 2005, the amount of the increase shall
2.3 	not exceed the greater of (1) 15 percent of the value in the
2.4 	preceding assessment, or (2) 33 percent of the difference
2.5 	between the current assessment and the preceding assessment.
2.6 	For assessment year 2006, the amount of the increase shall
2.7 	not exceed the greater of (1) 15 percent of the value in the
2.8 	preceding assessment, or (2) 50 percent of the difference
2.9 	between the current assessment and the preceding assessment.
2.10 	This limitation shall not apply to increases in value due
2.11 	to improvements.  For purposes of this subdivision, the term
2.12 	"assessment" means the value prior to any exclusion under
2.13 	subdivision 16.
2.14 	The provisions of this subdivision shall be in effect
2.15 	through assessment year 2006 as provided in this subdivision.
2.16 	For purposes of the assessment/sales ratio study conducted
2.17 	under section 127A.48, and the computation of state aids paid
2.18 	under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and
2.19 	477A, market values and net tax capacities determined under this
2.20 	subdivision and subdivision 16, shall be used.
2.21 	
EFFECTIVE DATE. This section is effective the day
2.22 	following final enactment for assessment year 2005, and
2.23 	thereafter.