1.1 	A bill for an act
1.2 	relating to taxation; property; modifying adjusted levy limit base;amending 
1.3 	Minnesota Statutes 2008, section 275.71, subdivision 4.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:
1.6 		Subd. 4.Adjusted levy limit base.  For taxes levied in 2008 through 2010, the 
1.7 	adjusted levy limit base is equal to the levy limit base computed under subdivision 2 
1.8 	or section 275.72, multiplied by:
1.9 	(1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price 
1.10 	deflator;
1.11 	(2) one plus a percentage equal to 50 percent of the percentage increase in the number 
1.12 	of households, if any, for the most recent 12-month period for which data is available; and
1.13 	(3) one plus a percentage equal to 50 percent of the percentage increase in the taxable 
1.14 	market value of the jurisdiction due to new construction of class 3 property, as defined in 
1.15 	section 273.13, subdivision 4, except for state-assessed utility and railroad property, for 
1.16 	the most recent year for which data is available. the ratio of the total tax capacity of the 
1.17 	current taxing year divided by the total taxing capacity of the previous year, plus:
1.18 	(1) 100 percent of the difference between the local government aid certified in 
1.19 	2009 and the actual aid paid; and
1.20 	(2) 100 percent of the difference between the market value homestead credits 
1.21 	certified in 2009 and the actual amount of the market value homestead credits paid.

1.22 	EFFECTIVE DATE. The section is effective for levies certified in 2009 and 
1.23 	thereafter, for taxes payable in 2010 and thereafter.