1.1 	A bill for an act
1.2 	relating to education finance; reducing school district property taxes; eliminating 
1.3 	the operating capital levy, reducing the equity levy; amending Minnesota Statutes 
1.4 	2004, section 126C.10, subdivisions 13b, 29; repealing Minnesota Statutes 2005 
1.5 	Supplement, section 126C.10, subdivision 13a.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 126C.10, subdivision 13b, is amended to 
1.8 	read:
1.9 		Subd. 13b.Operating capital aid. A district's operating capital aid equals its 
1.10 	operating capital revenue ~~minus its operating capital levy times the ratio of the actual~~ 
1.11 	~~amount levied to the permitted levy~~.

1.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

1.13 	Sec. 2. Minnesota Statutes 2004, section 126C.10, subdivision 29, is amended to read:
1.14 		Subd. 29.Equity levy. To obtain equity revenue ~~for fiscal year 2005 and later,~~
1.15 	a district may levy an amount not more than the product of its equity revenue under 
1.16 	subdivision 24, excluding the revenue computed under paragraphs (f) and (g) of that 
1.17 	subdivision for the fiscal year times the lesser of one or the ratio of its referendum market 
1.18 	value per resident marginal cost pupil unit to $476,000.

1.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

1.20 	Sec. 3.  REPEALER.
 1.21 	Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 13a, is repealed.