1.1 	A bill for an act
1.2 	relating to taxation; property; limiting valuation increases for certain properties 
1.3 	along the central corridor light rail line;amending Minnesota Statutes 2010, 
1.4 	section 273.11, subdivision 1a.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 273.11, subdivision 1a, is amended to read:
1.7 		Subd. 1a.Limited market value. In the case determining the taxable market value 
1.8 	before application of any valuation reduction under section 273.13, subdivision 35,  of all 
1.9 	property classified as agricultural homestead or nonhomestead, residential homestead or 
1.10 	nonhomestead, timber, or noncommercial seasonal residential recreational located within 
1.11 	one-half mile of the central corridor light rail line within an area bounded by Snelling 
1.12 	Avenue on the west and Rice Street on the east, the assessor shall compare the value with 
1.13 	the taxable portion of the value before application of any valuation reduction under section 
1.14 	273.13, subdivision 35, determined in the preceding assessment.
1.15 	For assessment years 2004, 2005, and 2006 2012 through 2016, the amount of the 
1.16 	increase shall not exceed the greater of (1) 15 ten percent of the value in the preceding 
1.17 	assessment, or (2) 25 20 percent of the difference between the current assessment and 
1.18 	the preceding assessment.
1.19 	For assessment year 2007 2017, the amount of the increase shall not exceed the 
1.20 	greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the 
1.21 	difference between the current assessment and the preceding assessment.
1.22 	For assessment year 2008 2018, the amount of the increase shall not exceed the 
1.23 	greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the 
1.24 	difference between the current assessment and the preceding assessment.
2.1 	This limitation shall not apply to increases in value due to improvements. For 
2.2 	purposes of this subdivision, the term "assessment" means the value prior to any exclusion 
2.3 	under subdivision 16.
2.4 	The provisions of this subdivision shall be in effect through assessment year 2008
2.5 	2018 as provided in this subdivision.
2.6 	For purposes of the assessment/sales ratio study conducted under section 127A.48, 
2.7 	and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 
2.8 	126C, 127A, and 477A, market values and net tax capacities determined under this 
2.9 	subdivision and subdivision 16, shall be used.
2.10 	The provisions of this subdivision shall not apply to any property undergoing a 
2.11 	change in ownership after March 1, 2012.
2.12 	The provisions of this subdivision shall not apply to any property described in 
2.13 	section 273.13, subdivision 24, paragraph (a), clauses (2) and (3).

2.14 	EFFECTIVE DATE. This section is effective for assessment year 2012 and 
2.15 	thereafter.