1.1 	A bill for an act
1.2 	relating to housing; increasing the deed tax to
1.3 	provide rental housing assistance; amending Minnesota
1.4 	Statutes 2004, sections 287.21, subdivision 1;
1.5 	462A.201, by adding a subdivision; 462A.33, by adding
1.6 	a subdivision.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 287.21,
1.9 	subdivision 1, is amended to read:
1.10 		Subdivision 1.Determination of tax.  (a) A tax is
1.11 	imposed on each deed or instrument by which any real property in
1.12 	this state is granted, assigned, transferred, or otherwise
1.13 	conveyed.  The tax applies against the net consideration.
1.14 	(b) The tax is determined in the following manner:  (1)
1.15 	when transfers are made by instruments pursuant to mergers,
1.16 	consolidations, sales, or transfers of substantially all of the
1.17 	assets of the entities as defined in section 287.20, subdivision
1.18 	9, pursuant to plans of reorganization, the tax is $1.65; (2)
1.19 	when there is no consideration or when the consideration,
1.20 	exclusive of the value of any lien or encumbrance remaining
1.21 	thereon at the time of sale, is $500 or less, the tax is $1.65;
1.22 	or (3) when the consideration, exclusive of the value of any
1.23 	lien or encumbrance remaining at the time of sale, exceeds $500,
1.24 	the tax is~~.0033~~ .00358 of the net consideration.
1.25 	(c) The tax is due at the time a taxable deed or instrument
1.26 	is presented for recording.

2.1 	Sec. 2. Minnesota Statutes 2004, section 462A.201, is
2.2 	amended by adding a subdivision to read:
2.3 		Subd. 8.Appropriation. An amount equal to the proceeds
2.4 	of the deed tax under section 287.21, subdivision 1, paragraph
2.5 	(b), clause (3), on .00014 of the net consideration is
2.6 	appropriated from the general fund to the commissioner of
2.7 	finance for transfer to the housing development fund and credit
2.8 	to the housing trust fund account to be used for rental
2.9 	assistance.

2.10 	Sec. 3. Minnesota Statutes 2004, section 462A.33, is
2.11 	amended by adding a subdivision to read:
2.12 		Subd. 9.Appropriation. An amount equal to the proceeds
2.13 	of the deed tax under section 287.21, subdivision 1, paragraph
2.14 	(b), clause (3), on .00014 of the net consideration is
2.15 	appropriated from the general fund to the commissioner of
2.16 	finance for transfer to the housing development fund to be used
2.17 	for the economic development and housing challenge program.