1.1 	A bill for an act
1.2 	relating to taxation; minerals; adding six unorganized territories to certain 
1.3 	distributions of the production tax on taconite;amending Minnesota Statutes 2016, 
1.4 	section 298.28, subdivision 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:
1.7 		Subd. 3.Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under 
1.8 	subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account 
1.9 	to be distributed as provided in section 298.282.
1.10 	(b) An amount must be allocated to towns or cities that is annually certified by the county 
1.11 	auditor of a county containing a taconite tax relief area as defined in section 273.134, 
1.12 	paragraph (b), within which there is (1) an organized township if, as of January 2, 1982, 
1.13 	more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a 
1.14 	city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city 
1.15 	consists of iron ore.
1.16 	(c) The amount allocated under paragraph (b) will be the portion of a township's or city's 
1.17 	certified levy equal to the proportion of (1) the difference between 50 percent of January 
1.18 	2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, 
1.19 	assessed value in the case of a city and its current assessed value to (2) the sum of its current 
1.20 	assessed value plus the difference determined in (1), provided that the amount distributed 
1.21 	shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a 
1.22 	city. For purposes of this limitation, population will be determined according to the 1980 
1.23 	decennial census conducted by the United States Bureau of the Census. If the current assessed 
2.1 	value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, 
2.2 	or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, 
2.3 	assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed 
2.4 	value," when used in reference to years other than 1980 or 1982, means the appropriate net 
2.5 	tax capacities multiplied by 10.2.
2.6 	(d) In addition to other distributions under this subdivision~~,~~:
2.7 	(1)~~three~~ 3.25 cents per taxable ton for distributions in ~~2009~~ 2017 must be allocated for 
2.8 	distribution to towns that are entirely located within the taconite tax relief area defined in 
2.9 	section 273.134, paragraph (b). ~~For distribution in 2010 through 2014 and for distribution~~ 
2.10 	~~in 2018 and subsequent years, the three-cent amount must be annually increased in the same~~ 
2.11 	~~proportion as the increase in the implicit price deflator as provided in section 298.24,~~ 
2.12 	~~subdivision 1.~~; and
2.13 	(2) for distributions in 2018 and subsequent years, the 3.25-cent amount in clause (1) 
2.14 	must be annually increased in the same proportion as the increase in the implicit price 
2.15 	deflator as provided in section 298.24, subdivision 1, and must be allocated for distribution 
2.16 	to:
2.17 	(i) towns that are entirely located within the taconite tax relief area defined in section 
2.18 	273.134, paragraph (b); and
2.19 	(ii) the following unorganized territories in St. Louis County and Itasca County: 56-17; 
2.20 	58-22; 59-16; 59-21; 60-18; and 60-19.
2.21 	The amount available under this paragraph ~~will~~ must be distributed to eligible towns
2.22 	and unorganized territories on a per capita basis, provided that no town or unorganized 
2.23 	territory may receive more than $50,000 in any year under this paragraph. Any amount of 
2.24 	the distribution that exceeds the $50,000 limitation for a town or unorganized territory under 
2.25 	this paragraph must be redistributed on a per capita basis among the other eligible towns
2.26 	and unorganized territories, to whose distributions do not exceed $50,000. The amount 
2.27 	available to unorganized territories in St. Louis County and Itasca County may be held by 
2.28 	the county and combined for public infrastructure projects for the specified unorganized 
2.29 	territories.

2.30 	EFFECTIVE DATE. This section is effective for distributions beginning in 2017 and 
2.31 	thereafter.