1.1 	A bill for an act
1.2 	relating to taxation; payment in lieu of taxes; allowing a town that incorporates 
1.3 	into a city to continue receiving certain payments;amending Minnesota Statutes 
1.4 	2006, section 97A.061, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 97A.061, subdivision 2, is amended to 
1.7 	read:
1.8 		Subd. 2.Allocation. (a) Except as provided in subdivision 3, the county treasurer 
1.9 	shall allocate the payment among the county, towns, and school districts on the same basis 
1.10 	as if the payments were taxes on the land received in the year. Payment of a town's or a 
1.11 	school district's allocation must be made by the county treasurer to the town or school 
1.12 	district within 30 days of receipt of the payment to the county. The county's share of the 
1.13 	payment shall be deposited in the county general revenue fund.
1.14 	(b) The county treasurer of a county with a population over 39,000 but less than 
1.15 	42,000 in the 1950 federal census shall allocate the payment only among the towns and 
1.16 	school districts on the same basis as if the payments were taxes on the lands received 
1.17 	in the current year.
1.18 	(c) If a town received a payment in calendar year 2006 or thereafter under this 
1.19 	subdivision, and subsequently incorporated as a city, the city will continue to receive any 
1.20 	future year's allocations that would have been made to the town had it not incorporated.

1.21 	EFFECTIVE DATE. This section is effective for aid payments made in 2007 
1.22 	and thereafter.