1.1 	A bill for an act
1.2 	relating to taxation; property; levy limits; modifying the adjustment for inflation;
1.3 	amending 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, but the percentage shall not be less than zero or exceed 3.9 percent;
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 
1.14 	taxable market value of the jurisdiction due to new construction of class 3 property, as 
1.15 	defined in section 273.13, subdivision 4, except for state-assessed utility and railroad 
1.16 	property, for the most recent year for which data is available.

1.17 	EFFECTIVE DATE. This section is effective for taxes levied in 2010 and thereafter.