1.1 	A bill for an act
1.2 	relating to taxation; property; reducing PERA aids and payments in lieu 
1.3 	of property taxes;amending Minnesota Statutes 2010, sections 97A.061, 
1.4 	subdivisions 1, 3; 127A.50, subdivision 3; 273.1385, by adding a subdivision; 
1.5 	477A.11, subdivision 1; 477A.12, subdivision 1; 477A.14, subdivision 1; 
1.6 	477A.17; repealing Minnesota Statutes 2010, section 477A.145.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to 
1.9 	read:
1.10 		Subdivision 1.Applicability; amount. (a) The commissioner shall annually make a 
1.11 	payment to each county having public hunting areas and game refuges. Money to make 
1.12 	the payments is annually appropriated for that purpose from the general fund. Except as 
1.13 	provided in paragraph (b), this section does not apply to state trust fund land and other 
1.14 	state land not purchased for game refuge or public hunting purposes. Except as provided 
1.15 	in paragraph (b), the payment shall be the greatest of:
1.16 	(1) ~~35~~ 29.75 percent of the gross receipts from all special use permits and leases of 
1.17 	land acquired for public hunting and game refuges;
1.18 	(2) ~~50~~ 42.5 cents per acre on land purchased actually used for public hunting or 
1.19 	game refuges; or
1.20 	(3) ~~three-fourths of one~~.6375percent of the appraised value of purchased land 
1.21 	actually used for public hunting and game refuges.
1.22 	(b) The payment shall be 50 percent of the dollar amount ~~adjusted for inflation~~ as 
1.23 	determined under section 477A.12, subdivision 1, paragraph (a), clause (1), multiplied 
1.24 	by the number of acres of land in the county that are owned by another state agency for 
1.25 	military purposes and designated as a game refuge under section 97A.085.
2.1 	(c) The payment must be reduced by the amount paid under subdivision 3 for 
2.2 	croplands managed for wild geese.
2.3 	(d) The appraised value is the purchase price for five years after acquisition. 
2.4 	The appraised value shall be determined by the county assessor every five years after 
2.5 	acquisition.

2.6 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
2.7 	2011 and thereafter.

2.8 	Sec. 2. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:
2.9 		Subd. 3.Goose management croplands. (a) The commissioner shall make a 
2.10 	payment on July 1 of each year to each county where the state owns more than 1,000 acres 
2.11 	of crop land, for wild goose management purposes. The payment shall be equal to 85 
2.12 	percent of the taxes assessed on comparable, privately owned, adjacent land. Money to 
2.13 	make the payments is annually appropriated for that purpose from the general fund. The 
2.14 	county treasurer shall allocate and distribute the payment as provided in subdivision 2.
2.15 	(b) The land used for goose management under this subdivision is exempt from 
2.16 	taxation as provided in sections 272.01 and 273.19.

2.17 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
2.18 	2011 and thereafter.

2.19 	Sec. 3. Minnesota Statutes 2010, section 127A.50, subdivision 3, is amended to read:
2.20 		Subd. 3.Limits on adjustments and potential reductions. (a) Increases to any 
2.21 	school districts under subdivision 1, clause (2), and decreases under subdivision 1, clauses 
2.22 	(1) and (3), are limited to the fiscal year 1999 amounts. The commissioner of education 
2.23 	may permanently reduce the adjustments to school districts under subdivision 1, clauses 
2.24 	(1) and (2), in the same manner as prescribed for nonschool jurisdictions under section 
2.25 	273.1385, subdivision 2. The commissioner may, from time to time, require that the 
2.26 	most recent fiscal year payroll information be certified by the executive director of the 
2.27 	Teachers Retirement Association. For any school district where the newly certified 
2.28 	Teachers Retirement Association payroll is significantly lower than the fiscal 1997 
2.29 	amount as determined by the commissioner, the commissioner shall recalculate the lower 
2.30 	reduction under subdivision 1, clause (3), and shall permanently reduce the adjustment 
2.31 	amount in subsequent years.
2.32 	(b) For fiscal year 2012 and thereafter, the aid paid under subdivision 1, clause (2), 
2.33 	after any adjustment under paragraph (a) is reduced by 50 percent.

3.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.2 	Sec. 4. Minnesota Statutes 2010, section 273.1385, is amended by adding a subdivision 
3.3 	to read:
3.4 		Subd. 3a.Aid reduction. Beginning with fiscal year 2012 and thereafter, the 
3.5 	amount of aid paid to any jurisdiction under subdivisions 1 to 3 is reduced by 50 percent.

3.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.7 	Sec. 5. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:
3.8 		Subdivision 1.Terms. For the purpose of sections 477A.11 to ~~477A.145~~ 477A.14, 
3.9 	the terms defined in this section have the meanings given them. 

3.10 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
3.11 	2011 and thereafter.

3.12 	Sec. 6. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:
3.13 		Subdivision 1.Types of land; payments. (a) As an offset for expenses incurred 
3.14 	by counties and towns in support of natural resources lands, the following amounts are 
3.15 	annually appropriated to the commissioner of natural resources from the general fund for 
3.16 	transfer to the commissioner of revenue. The commissioner of revenue shall pay the 
3.17 	transferred funds to counties as required by sections 477A.11 to ~~477A.145~~ 477A.14. 
3.18 	The amounts are:
3.19 	(1) for acquired natural resources land, ~~$3, as adjusted for inflation under section~~ 
3.20 	~~477A.145,~~ $4.363 multiplied by the total number of acres of acquired natural resources 
3.21 	land or, at the county's option ~~three-fourths of one~~ 0.6375 percent of the appraised value of 
3.22 	all acquired natural resources land in the county, whichever is greater;
3.23 	(2) ~~75 cents, as adjusted for inflation under section 477A.145,~~ $1.091 multiplied by 
3.24 	the number of acres of county-administered other natural resources land;
3.25 	(3) ~~75 cents, as adjusted for inflation under section 477A.145,~~ $1.091 multiplied by 
3.26 	the total number of acres of land utilization project land; and
3.27 	(4) ~~37.5 cents, as adjusted for inflation under section 477A.145,~~ 54.5 cents multiplied 
3.28 	by the number of acres of commissioner-administered other natural resources land located 
3.29 	in each county as of July 1 of each year prior to the payment year.
3.30 	(b) The amount determined under paragraph (a), clause (1), is payable for land 
3.31 	that is acquired from a private owner and owned by the Department of Transportation 
3.32 	for the purpose of replacing wetland losses caused by transportation projects, but only 
4.1 	if the county contains more than 500 acres of such land at the time the certification is 
4.2 	made under subdivision 2.

4.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
4.4 	2011 and thereafter.

4.5 	Sec. 7. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:
4.6 		Subdivision 1.General distribution. Except as provided in subdivision 2 or in 
4.7 	section 97A.061, subdivision 5, 40 percent of the total payment to the county shall be 
4.8 	deposited in the county general revenue fund to be used to provide property tax levy 
4.9 	reduction. The remainder shall be distributed by the county in the following priority:
4.10 	(a) ~~37.5 cents, as adjusted for inflation under section 477A.145,~~ 54.5 cents for 
4.11 	each acre of county-administered other natural resources land shall be deposited in a 
4.12 	resource development fund to be created within the county treasury for use in resource 
4.13 	development, forest management, game and fish habitat improvement, and recreational 
4.14 	development and maintenance of county-administered other natural resources land. Any 
4.15 	county receiving less than $5,000 annually for the resource development fund may elect to 
4.16 	deposit that amount in the county general revenue fund;
4.17 	(b) From the funds remaining, within 30 days of receipt of the payment to the 
4.18 	county, the county treasurer shall pay each organized township ~~30 cents, as adjusted for~~ 
4.19 	~~inflation under section 477A.145,~~ 43.6 cents for each acre of acquired natural resources 
4.20 	land and each acre of land described in section 477A.12, subdivision 1, paragraph (b), and 
4.21 	~~7.5 cents, as adjusted for inflation under section 477A.145,~~ 10.9 cents for each acre of 
4.22 	other natural resources land and each acre of land utilization project land located within its 
4.23 	boundaries. Payments for natural resources lands not located in an organized township 
4.24 	shall be deposited in the county general revenue fund. Payments to counties and townships 
4.25 	pursuant to this paragraph shall be used to provide property tax levy reduction, except 
4.26 	that of the payments for natural resources lands not located in an organized township, the 
4.27 	county may allocate the amount determined to be necessary for maintenance of roads in 
4.28 	unorganized townships. Provided that, if the total payment to the county pursuant to 
4.29 	section 477A.12 is not sufficient to fully fund the distribution provided for in this clause, 
4.30 	the amount available shall be distributed to each township and the county general revenue 
4.31 	fund on a pro rata basis; and
4.32 	(c) Any remaining funds shall be deposited in the county general revenue fund. 
4.33 	Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 
4.34 	excess shall be used to provide property tax levy reduction.

5.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
5.2 	2011 and thereafter.

5.3 	Sec. 8. Minnesota Statutes 2010, section 477A.17, is amended to read:
5.4 	477A.17 LAKE VERMILION STATE PARK AND SOUDAN 
5.5 	UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.
5.6 	(a) Beginning in fiscal year 2012, in lieu of the payment amount provided under 
5.7 	section 477A.12, subdivision 1, clause (1), the county shall receive an annual payment for 
5.8 	land acquired for Lake Vermilion State Park, established in section 85.012, subdivision 
5.9 	38a, and land within the boundary of Soudan Underground Mine State Park, established 
5.10 	in section 85.012, subdivision 53a, equal to ~~1.5~~ 1.275 percent of the appraised value of 
5.11 	the land.
5.12 	(b) For the purposes of this section, the appraised value of the land acquired for 
5.13 	Lake Vermilion State Park for the first five years after acquisition shall be the purchase 
5.14 	price of the land, plus the value of any portion of the land that is acquired by donation. 
5.15 	The appraised value must be redetermined by the county assessor every five years after 
5.16 	the land is acquired.
5.17 	(c) The annual payments under this section shall be distributed to the taxing 
5.18 	jurisdictions containing the property as follows: one-third to the school districts; one-third 
5.19 	to the town; and one-third to the county. The payment to school districts is not a county 
5.20 	apportionment under section 127A.34 and is not subject to aid recapture. Each of those 
5.21 	taxing jurisdictions may use the payments for their general purposes.
5.22 	(d) Except as provided in this section, the payments shall be made as provided 
5.23 	in sections 477A.11 to 477A.13.

5.24 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
5.25 	2011 and thereafter.

5.26 	Sec. 9.  REPEALER.
 5.27 	Minnesota Statutes 2010, section 477A.145, is repealed.

5.28 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
5.29 	2011 and thereafter.