1.1 	A bill for an act
1.2 	relating to property taxation; requiring
1.3 	municipalities to use fiscal disparities proceeds on
1.4 	expenditures which benefit the entire metropolitan
1.5 	area; amending Minnesota Statutes 2004, section
1.6 	473F.01, subdivision 2; repealing Minnesota Statutes
1.7 	2004, section 473F.01, subdivision 1.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 473F.01,
1.10 	subdivision 2, is amended to read:
1.11 		Subd. 2.Use of proceeds. (a) Except as provided in
1.12 	section 473F.08, subdivision 3a, the proceeds from the areawide
1.13 	tax imposed under this chapter must be used by a municipality
1.14 	for expenditures which benefit the area as a whole, including
1.15 	but not limited to:
1.16 	(1) construction, development, and maintenance of (i)
1.17 	transportation resources such as airports, highways, streets,
1.18 	and roads, or (ii) cultural or recreational resources such as
1.19 	museums and parks; and 
1.20 	(2) public safety expenditures related to transportation
1.21 	resources, cultural or recreational resources, or commercial
1.22 	facilities serving a regional clientele.
1.23 	(b) In order to demonstrate compliance with paragraph (a),
1.24 	the municipality must annually file a report with the
1.25 	commissioner of revenue showing that its expenditures in the
1.26 	previous year benefiting the area as a whole were equal to or
2.1 	greater than the areawide portion of the levy determined under
2.2 	section 473F.08, subdivision 3, clause (a).  The reports must be
2.3 	filed on a form and in a manner prescribed by the commissioner.
2.4 	If a municipality fails to file a report by the time specified
2.5 	by the commissioner, or if the report shows that the
2.6 	municipality did not comply with the requirements of this
2.7 	subdivision, the municipality shall not be entitled to its
2.8 	distribution under section 473F.08, subdivision 3, clause (a),
2.9 	for the following year.
2.10 	(c) The proceeds from the areawide tax imposed under this
2.11 	chapter must be used by a local governmental unit other than a
2.12 	municipality in the same manner and for the same purposes as the
2.13 	proceeds from other ad valorem taxes levied by the local
2.14 	governmental unit.
2.15 	
EFFECTIVE DATE. This section is effective for taxes
2.16 	payable in 2006 and thereafter.

2.17 	Sec. 2. REPEALER.
 2.18 	Minnesota Statutes 2004, section 473F.01, subdivision 1, is
2.19 	repealed.

2.20 	EFFECTIVE DATE. This section is effective the day
2.21 	following final enactment.