1.1 	A bill for an act
1.2 	proposing an amendment to the Minnesota Constitution
1.3 	by adding a section to article X; establishing a
1.4 	property taxpayers' trust fund and dedicating the
1.5 	revenues raised from 1-1/4 cent of the general sales
1.6 	tax revenue exclusively to paying property tax relief.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. CONSTITUTIONAL AMENDMENT.
 1.9 	An amendment to the Minnesota Constitution is proposed to
1.10 	the people.  If the amendment is adopted, a section shall be
1.11 	added to article X, to read:
1.12 	Sec. 9.  A permanent property taxpayers' trust fund is
1.13 	established in the state treasury.  The fund consists of the net
1.14 	proceeds generated by a general sales and use tax imposed at a
1.15 	rate of 1-1/4 percent on all taxable sales, excluding motor
1.16 	vehicles, including penalties and interest paid with respect to
1.17 	the sales and use tax.  Funds in the property taxpayers' trust
1.18 	fund shall be appropriated in the manner prescribed by law
1.19 	solely for property tax relief for property taxpayers.
1.20 	Fifty-five percent of the funds shall be distributed to cities
1.21 	through a program designed to compensate for differences in
1.22 	revenue need and differences in property wealth among cities,
1.23 	and 45 percent of the fund shall be distributed through a
1.24 	program designed to provide property tax relief directly to
1.25 	homeowners and renters.

1.26 	Sec. 2. SUBMISSION TO VOTERS.
 2.1 	The proposed amendment shall be submitted to the people at
2.2 	the 2006 general election.  The question proposed shall be:
2.3 	"Shall the Minnesota Constitution be amended to dedicate
2.4 	revenues from 1-1/4 cent of the general sales and use tax to a
2.5 	property taxpayers' trust fund to be used for property taxpayers
2.6 	of cities and towns? 
2.7 	Yes .......
2.8 	                                   No ........"