1.1                          A bill for an act 
  1.2             relating to taxation; requiring earlier delivery of 
  1.3             notices of proposed property taxes; amending Minnesota 
  1.4             Statutes 2002, sections 275.025, subdivision 4; 
  1.5             275.065, subdivision 3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 275.025, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [APPORTIONMENT AND LEVY OF STATE GENERAL TAX.] 
  1.10  The state general tax must be distributed among the counties by 
  1.11  applying a uniform rate to each county's commercial-industrial 
  1.12  tax capacity and its seasonal recreational tax capacity.  Within 
  1.13  each county, the tax must be levied by applying a uniform rate 
  1.14  against commercial-industrial tax capacity and seasonal 
  1.15  recreational tax capacity.  By ~~November 1~~ October 10 each year, 
  1.16  the commissioner of revenue shall certify the state general levy 
  1.17  rate to each county auditor. 
  1.18     Sec. 2.  Minnesota Statutes 2002, section 275.065, 
  1.19  subdivision 3, is amended to read: 
  1.20     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  1.21  county auditor shall prepare and the county treasurer shall 
  1.22  deliver after ~~November 10~~ October 17 and on or before ~~November~~ 
  1.23  ~~24~~ October 31 each year, by first class mail to each taxpayer at 
  1.24  the address listed on the county's current year's assessment 
  1.25  roll, a notice of proposed property taxes.  
  2.1      (b) The commissioner of revenue shall prescribe the form of 
  2.2   the notice. 
  2.3      (c) The notice must inform taxpayers that it contains the 
  2.4   amount of property taxes each taxing authority proposes to 
  2.5   collect for taxes payable the following year.  In the case of a 
  2.6   town, or in the case of the state general tax, the final tax 
  2.7   amount will be its proposed tax.  In the case of taxing 
  2.8   authorities required to hold a public meeting under subdivision 
  2.9   6, the notice must clearly state that each taxing authority, 
  2.10  including regional library districts established under section 
  2.11  134.201, and including the metropolitan taxing districts as 
  2.12  defined in paragraph (i), but excluding all other special taxing 
  2.13  districts and towns, will hold a public meeting to receive 
  2.14  public testimony on the proposed budget and proposed or final 
  2.15  property tax levy, or, in case of a school district, on the 
  2.16  current budget and proposed property tax levy.  It must clearly 
  2.17  state the time and place of each taxing authority's meeting, a 
  2.18  telephone number for the taxing authority that taxpayers may 
  2.19  call if they have questions related to the notice, and an 
  2.20  address where comments will be received by mail.  
  2.21     (d) The notice must state for each parcel: 
  2.22     (1) the market value of the property as determined under 
  2.23  section 273.11, and used for computing property taxes payable in 
  2.24  the following year and for taxes payable in the current year as 
  2.25  each appears in the records of the county assessor on ~~November 1~~ 
  2.26  October 10 of the current year; and, in the case of residential 
  2.27  property, whether the property is classified as homestead or 
  2.28  nonhomestead.  The notice must clearly inform taxpayers of the 
  2.29  years to which the market values apply and that the values are 
  2.30  final values; 
  2.31     (2) the items listed below, shown separately by county, 
  2.32  city or town, and state general tax, net of the residential and 
  2.33  agricultural homestead credit under section 273.1384, voter 
  2.34  approved school levy, other local school levy, and the sum of 
  2.35  the special taxing districts, and as a total of all taxing 
  2.36  authorities:  
  3.1      (i) the actual tax for taxes payable in the current year; 
  3.2      (ii) the tax change due to spending factors, defined as the 
  3.3   proposed tax minus the constant spending tax amount; 
  3.4      (iii) the tax change due to other factors, defined as the 
  3.5   constant spending tax amount minus the actual current year tax; 
  3.6   and 
  3.7      (iv) the proposed tax amount. 
  3.8      If the county levy under clause (2) includes an amount for 
  3.9   a lake improvement district as defined under sections 103B.501 
  3.10  to 103B.581, the amount attributable for that purpose must be 
  3.11  separately stated from the remaining county levy amount.  
  3.12     In the case of a town or the state general tax, the final 
  3.13  tax shall also be its proposed tax unless the town changes its 
  3.14  levy at a special town meeting under section 365.52.  If a 
  3.15  school district has certified under section 126C.17, subdivision 
  3.16  9, that a referendum will be held in the school district at the 
  3.17  November general election, the county auditor must note next to 
  3.18  the school district's proposed amount that a referendum is 
  3.19  pending and that, if approved by the voters, the tax amount may 
  3.20  be higher than shown on the notice.  In the case of the city of 
  3.21  Minneapolis, the levy for the Minneapolis library board and the 
  3.22  levy for Minneapolis park and recreation shall be listed 
  3.23  separately from the remaining amount of the city's levy.  In the 
  3.24  case of the city of St. Paul, the levy for the St. Paul library 
  3.25  agency must be listed separately from the remaining amount of 
  3.26  the city's levy.  In the case of a parcel where tax increment or 
  3.27  the fiscal disparities areawide tax under chapter 276A or 473F 
  3.28  applies, the proposed tax levy on the captured value or the 
  3.29  proposed tax levy on the tax capacity subject to the areawide 
  3.30  tax must each be stated separately and not included in the sum 
  3.31  of the special taxing districts; and 
  3.32     (3) the increase or decrease between the total taxes 
  3.33  payable in the current year and the total proposed taxes, 
  3.34  expressed as a percentage. 
  3.35     For purposes of this section, the amount of the tax on 
  3.36  homesteads qualifying under the senior citizens' property tax 
  4.1   deferral program under chapter 290B is the total amount of 
  4.2   property tax before subtraction of the deferred property tax 
  4.3   amount. 
  4.4      (e) The notice must clearly state that the proposed or 
  4.5   final taxes do not include the following: 
  4.6      (1) special assessments; 
  4.7      (2) levies approved by the voters after the date the 
  4.8   proposed taxes are certified, including bond referenda, school 
  4.9   district levy referenda, and levy limit increase referenda; 
  4.10     (3) amounts necessary to pay cleanup or other costs due to 
  4.11  a natural disaster occurring after the date the proposed taxes 
  4.12  are certified; 
  4.13     (4) amounts necessary to pay tort judgments against the 
  4.14  taxing authority that become final after the date the proposed 
  4.15  taxes are certified; and 
  4.16     (5) the contamination tax imposed on properties which 
  4.17  received market value reductions for contamination. 
  4.18     (f) Except as provided in subdivision 7, failure of the 
  4.19  county auditor to prepare or the county treasurer to deliver the 
  4.20  notice as required in this section does not invalidate the 
  4.21  proposed or final tax levy or the taxes payable pursuant to the 
  4.22  tax levy. 
  4.23     (g) If the notice the taxpayer receives under this section 
  4.24  lists the property as nonhomestead, and satisfactory 
  4.25  documentation is provided to the county assessor by the 
  4.26  applicable deadline, and the property qualifies for the 
  4.27  homestead classification in that assessment year, the assessor 
  4.28  shall reclassify the property to homestead for taxes payable in 
  4.29  the following year. 
  4.30     (h) In the case of class 4 residential property used as a 
  4.31  residence for lease or rental periods of 30 days or more, the 
  4.32  taxpayer must either: 
  4.33     (1) mail or deliver a copy of the notice of proposed 
  4.34  property taxes to each tenant, renter, or lessee; or 
  4.35     (2) post a copy of the notice in a conspicuous place on the 
  4.36  premises of the property.  
  5.1      The notice must be mailed or posted by the taxpayer by 
  5.2   November ~~27~~ 3 or within three days of receipt of the notice, 
  5.3   whichever is later.  A taxpayer may notify the county treasurer 
  5.4   of the address of the taxpayer, agent, caretaker, or manager of 
  5.5   the premises to which the notice must be mailed in order to 
  5.6   fulfill the requirements of this paragraph. 
  5.7      (i) For purposes of this subdivision, subdivisions 5a and 
  5.8   6, "metropolitan special taxing districts" means the following 
  5.9   taxing districts in the seven-county metropolitan area that levy 
  5.10  a property tax for any of the specified purposes listed below: 
  5.11     (1) metropolitan council under section 473.132, 473.167, 
  5.12  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  5.13     (2) metropolitan airports commission under section 473.667, 
  5.14  473.671, or 473.672; and 
  5.15     (3) metropolitan mosquito control commission under section 
  5.16  473.711. 
  5.17     For purposes of this section, any levies made by the 
  5.18  regional rail authorities in the county of Anoka, Carver, 
  5.19  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  5.20  398A shall be included with the appropriate county's levy and 
  5.21  shall be discussed at that county's public hearing. 
  5.22     (j) If a statutory or home rule charter city or a town has 
  5.23  exercised the local levy option provided by section 473.388, 
  5.24  subdivision 7, it may include in the notice of its proposed 
  5.25  taxes the amount of its proposed taxes attributable to its 
  5.26  exercise of the option.  In the first year of the city or town's 
  5.27  exercise of this option, the statement shall include an estimate 
  5.28  of the reduction of the metropolitan council's tax on the parcel 
  5.29  due to exercise of that option.  The metropolitan council's levy 
  5.30  shall be adjusted accordingly.