1.1                          A bill for an act 
  1.2             relating to taxation; property; limiting increases in 
  1.3             market value; amending Minnesota Statutes 1998, 
  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 1998, section 273.11, 
  1.7   subdivision 1a, is amended to read: 
  1.8      Subd. 1a.  [LIMITED MARKET VALUE.] In the case of all 
  1.9   property classified as agricultural homestead or nonhomestead, 
  1.10  residential homestead or nonhomestead, or noncommercial seasonal 
  1.11  recreational residential, ~~the assessor shall compare the value~~ 
  1.12  ~~with that determined in the preceding assessment.  The amount of~~ 
  1.13  ~~the increase entered in the current assessment shall not exceed~~ 
  1.14  ~~the greater of (1) ten percent of the value in the preceding~~ 
  1.15  ~~assessment, or (2) one-fourth of the difference between the~~ 
  1.16  ~~current assessment and the preceding assessment~~ the market value 
  1.17  for property tax purposes shall not exceed the property's 
  1.18  estimated market value as determined by the assessor for the 
  1.19  1998 assessment year. 
  1.20     This limitation shall not apply to increases in value due 
  1.21  to improvements.  For purposes of this subdivision, the term 
  1.22  "assessment" means the value prior to any exclusion under 
  1.23  subdivision 16. 
  1.24     ~~The provisions of this subdivision shall be in effect only~~ 
  1.25  ~~for assessment years 1993 through 2001.~~ 
  2.1      For the first assessment year after the sale or conveyance 
  2.2   of property for which the assessor's estimated market value on 
  2.3   the property is greater than its market value determined under 
  2.4   this subdivision, the value of the property for property tax 
  2.5   purposes shall be increased to the assessor's current year 
  2.6   estimated market value. 
  2.7      For purposes of the assessment/sales ratio study conducted 
  2.8   under section 127A.48, and the computation of state aids paid 
  2.9   under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and 
  2.10  477A, market values and net tax capacities determined under this 
  2.11  subdivision and subdivision 16, shall be used. 
  2.12     Sec. 2.  [EFFECTIVE DATE.] 
  2.13     Section 1 is effective for the 1999 assessment, taxes 
  2.14  payable in 2000, and thereafter.