1.1    .................... moves to amend H. F. No. 3 as follows:
1.2Delete everything after the enacting clause and insert:


1.6    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
1.7read:
1.8    Subdivision 1. Residential homestead market value credit. (a) Each county
1.9auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead
1.10property within the county equal to 0.4 percent of the first $76,000 of market value
1.11of the property minus .09 percent of the market value in excess of $76,000. The credit
1.12amount may not be less than zero. In the case of an agricultural or resort homestead, only
1.13the market value of the house, garage, and immediately surrounding one acre of land is
1.14eligible in determining the property's homestead credit. In the case of a property that
1.15is classified as part homestead and part nonhomestead, (i) the credit shall apply only
1.16to the homestead portion of the property, but (ii) if a portion of a property is classified
1.17as nonhomestead solely because not all the owners occupy the property, not all the
1.18owners have qualifying relatives occupying the property, or solely because not all the
1.19spouses of owners occupy the property, the credit amount shall be initially computed as
1.20if that nonhomestead portion were also in the homestead class and then prorated to the
1.21owner-occupant's percentage of ownership. For the purpose of this section, when an
1.22owner-occupant's spouse does not occupy the property, the percentage of ownership for
1.23the owner-occupant spouse is one-half of the couple's ownership percentage.
1.24    (b) For property taxes payable in 2008 through 2011, the county auditor shall
1.25determine the amount of the homestead credit under paragraph (a) and this paragraph.
1.26The county auditor shall report the amount of the credit to the taxpayer on the property
1.27tax statement or in another manner, as authorized by the commissioner of revenue. The
2.1amount of the credit allowed for the property taxes payable year is to be computed as the
2.2following percentage of the credit amount under paragraph (a):
2.3    (1) for property taxes payable in 2008, 100 percent;
2.4    (2) for property taxes payable in 2009, 60 percent;
2.5    (3) for property taxes payable in 2010, 30 percent; and
2.6    (4) for property taxes payable in 2011 or thereafter, no credit is allowed.
2.7EFFECTIVE DATE.This section is effective beginning for property taxes payable
2.8in 2008.

2.9    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:
2.10    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
2.11printing of the tax statements. The commissioner of revenue shall prescribe the form
2.12of the property tax statement and its contents. The statement must contain a tabulated
2.13statement of the dollar amount due to each taxing authority and the amount of the state
2.14tax from the parcel of real property for which a particular tax statement is prepared. The
2.15dollar amounts attributable to the county, the state tax, the voter approved school tax, the
2.16other local school tax, the township or municipality, and the total of the metropolitan
2.17special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
2.18be separately stated. The amounts due all other special taxing districts, if any, may be
2.19aggregated except that any levies made by the regional rail authorities in the county of
2.20Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
2.21shall be listed on a separate line directly under the appropriate county's levy. If the county
2.22levy under this paragraph includes an amount for a lake improvement district as defined
2.23under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
2.24separately stated from the remaining county levy amount. In the case of Ramsey County,
2.25if the county levy under this paragraph includes an amount for public library service
2.26under section 134.07, the amount attributable for that purpose may be separated from the
2.27remaining county levy amount. The amount of the tax on homesteads qualifying under the
2.28senior citizens' property tax deferral program under chapter 290B is the total amount of
2.29property tax before subtraction of the deferred property tax amount. The amount of the
2.30tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
2.31be separately stated. The dollar amounts, including the dollar amount of any special
2.32assessments, may be rounded to the nearest even whole dollar. For purposes of this section
2.33whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
2.34The amount of market value excluded under section 273.11, subdivision 16, if any, must
2.35also be listed on the tax statement.
3.1    (b) The property tax statements for manufactured homes and sectional structures
3.2taxed as personal property shall contain the same information that is required on the
3.3tax statements for real property.
3.4    (c) Real and personal property tax statements must contain the following information
3.5in the order given in this paragraph. The information must contain the current year tax
3.6information in the right column with the corresponding information for the previous year
3.7in a column on the left:
3.8    (1) the property's estimated market value under section 273.11, subdivision 1;
3.9    (2) the property's taxable market value after reductions under section 273.11,
3.10subdivisions 1a and 16 ;
3.11    (3) the property's gross tax, calculated by adding the property's total property tax to
3.12the sum of the aids enumerated in clause (4); any items required by the commissioner of
3.13revenue under section 273.1384, subdivision 1, paragraph (b); and
3.14    (4) a total of the following aids:
3.15    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
3.16and 127A;
3.17    (ii) local government aids for cities, towns, and counties under sections 477A.011 to
3.18477A.04; and
3.19    (iii) disparity reduction aid under section 273.1398;
3.20    (5) for homestead residential and agricultural properties, the credits under section
3.21273.1384;
3.22    (6) any credits received under sections 273.119; 273.123; 273.135; 273.1391;
3.23273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received
3.24under section 273.135 must be separately stated and identified as "taconite tax relief"; and
3.25    (7) (4) the net tax payable in the manner required in paragraph (a).
3.26    (d) If the county uses envelopes for mailing property tax statements and if the county
3.27agrees, a taxing district may include a notice with the property tax statement notifying
3.28taxpayers when the taxing district will begin its budget deliberations for the current
3.29year, and encouraging taxpayers to attend the hearings. If the county allows notices to
3.30be included in the envelope containing the property tax statement, and if more than
3.31one taxing district relative to a given property decides to include a notice with the tax
3.32statement, the county treasurer or auditor must coordinate the process and may combine
3.33the information on a single announcement.
3.34    The commissioner of revenue shall certify to the county auditor the actual or
3.35estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
4.1in the following year. The commissioner must certify this amount by January 1 of each
4.2year.
4.3EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
4.4thereafter.

4.5    Sec. 3. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:
4.6    Subd. 13. Property taxes payable. "Property taxes payable" means the property
4.7tax exclusive of special assessments, penalties, and interest payable on a claimant's
4.8homestead after deductions made under sections 273.135, 273.1384, 273.1391, 273.42,
4.9subdivision 2 , and any other state paid property tax credits in any calendar year, and
4.10after any refund claimed and allowable under section 290A.04, subdivision 2h, that is
4.11first payable in the year that the property tax is payable. Beginning for property taxes
4.12payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must
4.13not be deducted in computing property taxes payable. In the case of a claimant who
4.14makes ground lease payments, "property taxes payable" includes the amount of the
4.15payments directly attributable to the property taxes assessed against the parcel on which
4.16the house is located. No apportionment or reduction of the "property taxes payable" shall
4.17be required for the use of a portion of the claimant's homestead for a business purpose if
4.18the claimant does not deduct any business depreciation expenses for the use of a portion
4.19of the homestead in the determination of federal adjusted gross income. For homesteads
4.20which are manufactured homes as defined in section 273.125, subdivision 8, and for
4.21homesteads which are park trailers taxed as manufactured homes under section 168.012,
4.22subdivision 9 , "property taxes payable" shall also include 19 percent of the gross rent paid
4.23in the preceding year for the site on which the homestead is located. When a homestead
4.24is owned by two or more persons as joint tenants or tenants in common, such tenants
4.25shall determine between them which tenant may claim the property taxes payable on the
4.26homestead. If they are unable to agree, the matter shall be referred to the commissioner of
4.27revenue whose decision shall be final. Property taxes are considered payable in the year
4.28prescribed by law for payment of the taxes.
4.29    In the case of a claim relating to "property taxes payable," the claimant must have
4.30owned and occupied the homestead on January 2 of the year in which the tax is payable
4.31and (i) the property must have been classified as homestead property pursuant to section
4.32273.124 , on or before December 15 of the assessment year to which the "property taxes
4.33payable" relate; or (ii) the claimant must provide documentation from the local assessor
4.34that application for homestead classification has been made on or before December 15
5.1of the year in which the "property taxes payable" were payable and that the assessor has
5.2approved the application.
5.3EFFECTIVE DATE.This section is effective beginning for refund claims based on
5.4property taxes payable in 2008.

5.5    Sec. 4. Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:
5.6    Subd. 2a. Renters. (a) A claimant whose rent constituting property taxes exceeds
5.7the percentage of the household income stated below must pay an amount equal to the
5.8percent of income shown for the appropriate household income level along with the
5.9percent to be paid by the claimant of the remaining amount of rent constituting property
5.10taxes. The state refund equals the amount of rent constituting property taxes that remain,
5.11up to the maximum state refund amount shown below.

5.12 5.13	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
5.14	$0 to 3,589	1.0 percent	5 percent	$1,190
5.15	$0 to 4,579			$1,500
5.16	3,590 to 4,779	1.0 percent	10 percent	$1,190
5.17	4,580 to 6,099			$1,500
5.18	4,780 to 5,969	1.1 percent	10 percent	$1,190
5.19	6,100 to 7,619			$1,500
5.20	5,970 to 8,369	1.2 percent	10 percent	$1,190
5.21	7,620 to 10,669			$1,500
5.22	8,370 to 10,759	1.3 percent	15 percent	$1,190
5.23	10,670 to 13,729			$1,500
5.24	10,760 to 11,949	1.4 percent	15 percent	$1,190
5.25	13,730 to 15,239			$1,500
5.26	11,950 to 13,139	1.4 percent	20 percent	$1,190
5.27	15,240 to 16,769			$1,500
5.28	13,140 to 15,539	1.5 percent	20 percent	$1,190
5.29	16,770 to 19,829			$1,500
5.30	15,540 to 16,729	1.6 percent	20 percent	$1,190
5.31	19,830 to 21,349			$1,500
5.32	16,730 to 17,919	1.7 percent	25 percent	$1,190
5.33	21,350 to 22,859			$1,500
5.34	17,920 to 20,319	1.8 percent	25 percent	$1,190
5.35	22,860 to 25,929			$1,500
5.36	20,320 to 21,509	1.9 percent	30 percent	$1,190
5.37	25,930 to 27,439			$1,500
5.38	21,510 to 22,699	2.0 percent	30 percent	$1,190
5.39	27,440 to 28,959			$1,500
5.40	22,700 to 23,899	2.2 percent	30 percent	$1,190
6.1	28,960 to 30,499			$1,500
6.2	23,900 to 25,089	2.4 percent	30 percent	$1,190
6.3	30,500 to 32,009			$1,500
6.4	25,090 to 26,289	2.6 percent	35 percent	$1,190
6.5	32,010 to 33,539			$1,500
6.6	26,290 to 27,489	2.7 percent	35 percent	$1,190
6.7	33,540 to 35,079			$1,500
6.8	27,490 to 28,679	2.8 percent	35 percent	$1,190
6.9	35,080 to 36,589			$1,500
6.10	28,680 to 29,869	2.9 percent	40 percent	$1,190
6.11	36,590 to 38,109			$1,500
6.12	29,870 to 31,079	3.0 percent	40 percent	$1,190
6.13	38,110 to 39,649			$1,500
6.14	31,080 to 32,269	3.1 percent	40 percent	$1,190
6.15	39,650 to 41,169			$1,500
6.16	32,270 to 33,459	3.2 percent	40 percent	$1,190
6.17	41,170 to 42,689			$1,500
6.18	33,460 to 34,649	3.3 percent	45 percent	$1,080
6.19	42,690 to 49,729			$1,370
6.20	34,650 to 35,849	3.4 percent	45 percent	$ 960
6.21	49,730 to 51,459			$1,220
6.22	35,850 to 37,049	3.5 percent	45 percent	$ 830
6.23	51,460 to 53,189			$1,050
6.24	37,050 to 38,239	3.5 percent	50 percent	$ 720
6.25	53,190 to 54,899			$910
6.26	38,240 to 39,439	3.5 percent	50 percent	$ 600
6.27	54,900 to 56,609			$760
6.28	38,440 to 40,629	3.5 percent	50 percent	$ 360
6.29	56,610 to 58,319			$450
6.30	40,630 to 41,819	3.5 percent	50 percent	$ 120
6.31	58,320 to 60,000			$150

6.32    (b) The payment made to a claimant is the amount of the state refund calculated
6.33under this subdivision. No payment is allowed if the claimant's household income is
6.34$41,820 $60,000 or more.
6.35EFFECTIVE DATE.This section is effective beginning for claims filed for rent
6.36paid after December 31, 2006.

6.37    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:
6.38    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a
6.39homestead increase more than 12 percent over the property taxes payable in the prior year
6.40on the same property that is owned and occupied by the same owner on January 2 of both
7.1years, and the amount of that increase is $100 or more, a claimant who is a homeowner
7.2shall be allowed an additional refund equal to 60 percent of the amount of the increase
7.3over the greater of 12 percent of the prior year's property taxes payable or $100. This
7.4subdivision shall not apply to any increase in the gross property taxes payable attributable
7.5to improvements made to the homestead after the assessment date for the prior year's
7.6taxes. This subdivision shall not apply to any increase in the gross property taxes payable
7.7attributable to the termination of valuation exclusions under section 273.11, subdivision
7.816 , or to the reduction in and elimination of the homestead market value credit under
7.9section 273.1284, subdivision 1, paragraph (b).
7.10    The maximum refund allowed under this subdivision is $1,000.
7.11    (b) For purposes of this subdivision "gross property taxes payable" means property
7.12taxes payable determined without regard to the refund allowed under this subdivision.
7.13    (c) In addition to the other proofs required by this chapter, each claimant under
7.14this subdivision shall file with the property tax refund return a copy of the property tax
7.15statement for taxes payable in the preceding year or other documents required by the
7.16commissioner.
7.17    (d) Upon request, the appropriate county official shall make available the names and
7.18addresses of the property taxpayers who may be eligible for the additional property tax
7.19refund under this section. The information shall be provided on a magnetic computer
7.20disk. The county may recover its costs by charging the person requesting the information
7.21the reasonable cost for preparing the data. The information may not be used for any
7.22purpose other than for notifying the homeowner of potential eligibility and assisting the
7.23homeowner, without charge, in preparing a refund claim.
7.24EFFECTIVE DATE.This section is effective for refund claims based on property
7.25taxes payable in 2008.

7.26    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision
7.27to read:
7.28    Subd. 2k. Homestead credit state refund. (a) A claimant who is a homeowner
7.29is entitled to a state refund of the amount the property taxes payable in excess of two
7.30percent of the claimant's household income, based on the percentage and maximum for the
7.31appropriate household income level shown below. The refund amount determined from the
7.32table must be reduced further by the amount of the homestead market value credit under
7.33section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.

7.34	Household Income	Refund Percentage	Maximum State Refund
7.35	0 to $5,399	90%	$2,500
8.1	5,400 to 18,899	85%	2,500
8.2	18,900 to 26,999	80%	2,500
8.3	27,000 to 32,399	75%	2,500
8.4	32,400 to 37,799	70%	2,500
8.5	37,800 to 45,899	65%	2,500
8.6	45,900 to 64,699	60%	2,500
8.7	64,700 to 80,899	55%	2,300
8.8	80,900 to 94,399	50%	2,100
8.9	94,400 to 99,299	45%	1,900
8.10	99,300 to 104,099	40%	1,700
8.11	104,100 to 115,599	30%	1,500
8.12	115,600 to 127,199	30%	1,250
8.13	127,200 to 134,099	25%	1,000
8.14	134,100 to 138,799	25%	750
8.15	138,800 to 144,399	25%	500
8.16	144,400 to 150,000	25%	250

8.17    (b) No payment is allowed under paragraph (a), if the claimant's household income
8.18is more than $150,000.
8.19EFFECTIVE DATE.This section is effective beginning for claims based on
8.20property taxes payable in 2008.

8.21    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:
8.22    Subd. 4. Inflation adjustment. Beginning for property tax refunds payable in
8.23calendar year 2002 2009, the commissioner shall annually adjust the dollar amounts of
8.24the income thresholds and the maximum refunds under subdivisions 2 and 2a 2k for
8.25inflation. The commissioner shall make the inflation adjustments in accordance with
8.26section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the
8.27percentage increase shall be determined from the year ending on June 30, 2000 2007, to
8.28the year ending on June 30 of the year preceding that in which the refund is payable. The
8.29commissioner shall use the appropriate percentage increase to annually adjust the income
8.30thresholds and maximum refunds under subdivisions 2 and 2a 2k for inflation without
8.31regard to whether or not the income tax brackets are adjusted for inflation in that year.
8.32The commissioner shall round the thresholds and the maximum amounts, as adjusted to
8.33the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up
8.34to the next $10 amount.
8.35    The commissioner shall annually announce the adjusted refund schedule at the same
8.36time provided under section 290.06. The determination of the commissioner under this
8.37subdivision is not a rule under the Administrative Procedure Act.
9.1EFFECTIVE DATE.This section is effective beginning for claims based on
9.2property taxes payable in 2009.

9.3    Sec. 8. REPEALER.
9.4Minnesota Statutes 2006, section 290A.04, subdivision 2, is repealed.
9.5EFFECTIVE DATE.This section is effective for claims based on property taxes
9.6payable in 2008 and later


9.9    Section 1. Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:
9.10    Subd. 4. Debt service equalization revenue. (a) The debt service equalization
9.11revenue of a district equals the sum of the first tier debt service equalization revenue and
9.12the second tier debt service equalization revenue.
9.13    (b) The first tier debt service equalization revenue of a district equals the greater of
9.14zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent
9.15times the adjusted debt service net tax capacity of the district minus the second tier debt
9.16service equalization revenue of the district.
9.17    (c) The second tier debt service equalization revenue of a district equals the greater
9.18of zero or the eligible debt service revenue, excluding alternative facilities levies under
9.19section 123B.59, subdivision 5, minus the amount raised by a levy of 25 percent times the
9.20adjusted net tax capacity of the district.
9.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

9.22    Sec. 2. Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:
9.23    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
9.24district equals the sum of the first tier equalized debt service levy and the second tier
9.25equalized debt service levy.
9.26    (b) A district's first tier equalized debt service levy equals the district's first tier debt
9.27service equalization revenue times the lesser of one or the ratio of:
9.28    (1) the quotient derived by dividing the adjusted debt service net tax capacity of the
9.29district for the year before the year the levy is certified by the adjusted pupil units in the
9.30district for the school year ending in the year prior to the year the levy is certified; to
9.31    (2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.
9.32    (c) A district's second tier equalized debt service levy equals the district's second tier
9.33debt service equalization revenue times the lesser of one or the ratio of:
10.1    (1) the quotient derived by dividing the adjusted net tax capacity of the district for
10.2the year before the year the levy is certified by the adjusted pupil units in the district for
10.3the school year ending in the year prior to the year the levy is certified; to
10.4    (2) $8,000.
10.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

10.6    Sec. 3. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
10.7    Subdivision 1. Eligibility. All class 2 property under section 273.13, subdivision 23,
10.8except for (1) property consisting of the house, garage, and immediately surrounding one
10.9acre of land of an agricultural homestead, and (2) landing areas or public access areas of
10.10privately owned public use airports, is eligible to receive the credit under this section.
10.11    Subd. 2. Credit amount. For each qualifying property, the school bond agricultural
10.12credit is equal to 20 percent of the property's eligible net tax capacity multiplied by the
10.13school debt tax rate determined under section 275.08, subdivision 1b.
10.14    Subd. 3. Credit reimbursements. The county auditor shall determine the tax
10.15reductions allowed under this section within the county for each taxes payable year and
10.16shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
10.17lists submitted under section 275.29. Any prior year adjustments shall also be certified on
10.18the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
10.19and may make such changes as are deemed necessary, or return the certification to the
10.20county auditor for correction. The credit under this section must be used to reduce the
10.21school district net tax capacity-based property tax as provided in section 273.1393 .
10.22    Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
10.23reductions granted under this section for each taxes payable year within each school
10.24district to the commissioner of education, who shall pay the reimbursement amounts to
10.25each school district as provided in section 273.1392 .
10.26    Subd. 5. Appropriation. An amount sufficient to make the payments required
10.27by this section is annually appropriated from the general fund to the commissioner of
10.28education.
10.29EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
10.30thereafter.

10.31    Sec. 4. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
10.32to read:
10.33    Subd. 26. Statewide adjusted net tax capacity equalizing factor. The statewide
10.34adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total
11.1adjusted debt service net tax capacity of all school districts in the state for the year before
11.2the year the levy is certified by the total number of adjusted cost pupil units in the state
11.3for the fiscal year preceding the year the levy is certified.
11.4EFFECTIVE DATE.This section is effective for taxes payable in 2008.

11.5    Sec. 5. Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
11.6to read:
11.7    Subd. 3a. Referendum market value equalizing factor. The referendum market
11.8value equalizing factor equals the quotient derived by dividing the total referendum market
11.9value of all school districts in the state for the year before the year the levy is certified by
11.10the total number of resident marginal cost pupil units in the state for the current school year.
11.11EFFECTIVE DATE.This section is effective for taxes payable in 2008.

11.12    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:
11.13    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
11.14year 2007 and later, a district may levy an amount not more than the product of its
11.15operating capital revenue for the fiscal year times the lesser of one or the ratio of its
11.16adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
11.17equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year
11.182006, and $10,700 for fiscal year 2007 and 2008, and $25,000 for fiscal year 2009 and later.
11.19EFFECTIVE DATE.This section is effective for taxes payable in 2008.

11.20    Sec. 7. Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:
11.21    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
11.22A district's referendum equalization levy equals the sum of the first tier referendum
11.23equalization levy and the second tier referendum equalization levy.
11.24    (b) A district's first tier referendum equalization levy equals the district's first tier
11.25referendum equalization revenue times the lesser of one or the ratio of the district's
11.26referendum market value per resident marginal cost pupil unit to $476,000 120 percent of
11.27the referendum market value equalizing factor.
11.28    (c) A district's second tier referendum equalization levy equals the district's second
11.29tier referendum equalization revenue times the lesser of one or the ratio of the district's
11.30referendum market value per resident marginal cost pupil unit to $270,000 60 percent of
11.31the referendum market value equalizing factor.
11.32EFFECTIVE DATE.This section is effective for taxes payable in 2008.

12.1    Sec. 8. Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision
12.2to read:
12.3    Subd. 17. Adjusted debt service net tax capacity. To calculate each district's
12.4adjusted debt service net tax capacity, the commissioner of revenue must recompute each
12.5district's adjusted net tax capacity using an alternative sales ratio comparing the sales price
12.6to the estimated market value of the property.
12.7EFFECTIVE DATE.This section is effective the day following final enactment for
12.8computing taxes payable in 2008.

12.9    Sec. 9. Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:
12.10    Subd. 1a. Limited market value. In the case of all property classified as
12.11agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber,
12.12or noncommercial seasonal residential recreational, the assessor shall compare the value
12.13with the taxable portion of the value determined in the preceding assessment.
12.14    For assessment years 2004, 2005, and 2006, the amount of the increase shall not
12.15exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
12.16percent of the difference between the current assessment and the preceding assessment.
12.17    For assessment year 2007, the amount of the increase shall not exceed the greater of
12.18(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
12.19between the current assessment and the preceding assessment.
12.20    For assessment year 2008, the amount of the increase shall not exceed the greater of
12.21(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
12.22between the current assessment and the preceding assessment.
12.23    This limitation shall not apply to increases in value due to improvements. For
12.24purposes of this subdivision, the term "assessment" means the value prior to any exclusion
12.25under subdivision 16.
12.26    The provisions of this subdivision shall be in effect through assessment year 2008
12.27as provided in this subdivision.
12.28    For purposes of the assessment/sales ratio study conducted under section 127A.48,
12.29and the computation of state aids paid under chapters 122A, 123A, 123B, excluding
12.30section 123B.53, 124D, 125A, 126C, 127A, and 477A, market values and net tax
12.31capacities determined under this subdivision and subdivision 16, shall be used.
12.32EFFECTIVE DATE.This section is effective the day following final enactment for
12.33computing taxes payable in 2008.

12.34    Sec. 10. Minnesota Statutes 2006, section 273.1393, is amended to read:
12.35273.1393 COMPUTATION OF NET PROPERTY TAXES.
13.1    Notwithstanding any other provisions to the contrary, "net" property taxes are
13.2determined by subtracting the credits in the order listed from the gross tax:
13.3    (1) disaster credit as provided in section 273.123;
13.4    (2) powerline credit as provided in section 273.42;
13.5    (3) agricultural preserves credit as provided in section 473H.10;
13.6    (4) enterprise zone credit as provided in section 469.171;
13.7    (5) disparity reduction credit;
13.8    (6) conservation tax credit as provided in section 273.119;
13.9    (7) homestead and agricultural credits as provided in section 273.1384;
13.10    (8) school bond agricultural credit as provided in section 123B.555;
13.11    (8) (9) taconite homestead credit as provided in section 273.135; and
13.12    (9) (10) supplemental homestead credit as provided in section 273.1391.
13.13    The combination of all property tax credits must not exceed the gross tax amount.
13.14EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
13.15thereafter.

13.16    Sec. 11. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:
13.17    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
13.18and the county treasurer shall deliver after November 10 and on or before November 24
13.19each year, by first class mail to each taxpayer at the address listed on the county's current
13.20year's assessment roll, a notice of proposed property taxes.
13.21    (b) The commissioner of revenue shall prescribe the form of the notice.
13.22    (c) The notice must inform taxpayers that it contains the amount of property taxes
13.23each taxing authority proposes to collect for taxes payable the following year. In the case
13.24of a town, or in the case of the state general tax, the final tax amount will be its proposed
13.25tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
13.26the notice must clearly state that each taxing authority, including regional library districts
13.27established under section 134.201, and including the metropolitan taxing districts as
13.28defined in paragraph (i), but excluding all other special taxing districts and towns, will
13.29hold a public meeting to receive public testimony on the proposed budget and proposed or
13.30final property tax levy, or, in case of a school district, on the current budget and proposed
13.31property tax levy. It must clearly state the time and place of each taxing authority's
13.32meeting, a telephone number for the taxing authority that taxpayers may call if they have
13.33questions related to the notice, and an address where comments will be received by mail.
13.34    (d) The notice must state for each parcel:
14.1    (1) the market value of the property as determined under section 273.11, and used
14.2for computing property taxes payable in the following year and for taxes payable in the
14.3current year as each appears in the records of the county assessor on November 1 of the
14.4current year; and, in the case of residential property, whether the property is classified as
14.5homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
14.6which the market values apply and that the values are final values;
14.7    (2) the items listed below, shown separately by county, city or town, and state
14.8general tax, net of the residential and agricultural homestead credit under section 273.1384
14.9and the school bond agricultural credit under section 123B.555, voter approved school
14.10levy, other local school levy, and the sum of the special taxing districts, and as a total
14.11of all taxing authorities:
14.12    (i) the actual tax for taxes payable in the current year; and
14.13    (ii) the proposed tax amount.
14.14    If the county levy under clause (2) includes an amount for a lake improvement
14.15district as defined under sections 103B.501 to 103B.581, the amount attributable for that
14.16purpose must be separately stated from the remaining county levy amount.
14.17    In the case of a town or the state general tax, the final tax shall also be its proposed
14.18tax unless the town changes its levy at a special town meeting under section 365.52. If a
14.19school district has certified under section 126C.17, subdivision 9, that a referendum will
14.20be held in the school district at the November general election, the county auditor must
14.21note next to the school district's proposed amount that a referendum is pending and that,
14.22if approved by the voters, the tax amount may be higher than shown on the notice. In
14.23the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
14.24levy for Minneapolis Park and Recreation shall be listed separately from the remaining
14.25amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
14.26Library Agency must be listed separately from the remaining amount of the city's levy.
14.27In the case of Ramsey County, any amount levied under section 134.07 may be listed
14.28separately from the remaining amount of the county's levy. In the case of a parcel where
14.29tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
14.30the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
14.31subject to the areawide tax must each be stated separately and not included in the sum of
14.32the special taxing districts; and
14.33    (3) the increase or decrease between the total taxes payable in the current year and
14.34the total proposed taxes, expressed as a percentage.
15.1    For purposes of this section, the amount of the tax on homesteads qualifying under
15.2the senior citizens' property tax deferral program under chapter 290B is the total amount
15.3of property tax before subtraction of the deferred property tax amount.
15.4    (e) The notice must clearly state that the proposed or final taxes do not include
15.5the following:
15.6    (1) special assessments;
15.7    (2) levies approved by the voters after the date the proposed taxes are certified,
15.8including bond referenda and school district levy referenda;
15.9    (3) a levy limit increase approved by the voters by the first Tuesday after the first
15.10Monday in November of the levy year as provided under section 275.73;
15.11    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
15.12occurring after the date the proposed taxes are certified;
15.13    (5) amounts necessary to pay tort judgments against the taxing authority that become
15.14final after the date the proposed taxes are certified; and
15.15    (6) the contamination tax imposed on properties which received market value
15.16reductions for contamination.
15.17    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
15.18the county treasurer to deliver the notice as required in this section does not invalidate the
15.19proposed or final tax levy or the taxes payable pursuant to the tax levy.
15.20    (g) If the notice the taxpayer receives under this section lists the property as
15.21nonhomestead, and satisfactory documentation is provided to the county assessor by the
15.22applicable deadline, and the property qualifies for the homestead classification in that
15.23assessment year, the assessor shall reclassify the property to homestead for taxes payable
15.24in the following year.
15.25    (h) In the case of class 4 residential property used as a residence for lease or rental
15.26periods of 30 days or more, the taxpayer must either:
15.27    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
15.28renter, or lessee; or
15.29    (2) post a copy of the notice in a conspicuous place on the premises of the property.
15.30    The notice must be mailed or posted by the taxpayer by November 27 or within
15.31three days of receipt of the notice, whichever is later. A taxpayer may notify the county
15.32treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
15.33which the notice must be mailed in order to fulfill the requirements of this paragraph.
15.34    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
15.35taxing districts" means the following taxing districts in the seven-county metropolitan area
15.36that levy a property tax for any of the specified purposes listed below:
16.1    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
16.2473.446 , 473.521, 473.547, or 473.834;
16.3    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
16.4and
16.5    (3) Metropolitan Mosquito Control Commission under section 473.711.
16.6    For purposes of this section, any levies made by the regional rail authorities in the
16.7county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
16.8398A shall be included with the appropriate county's levy and shall be discussed at that
16.9county's public hearing.
16.10    (j) The governing body of a county, city, or school district may, with the consent
16.11of the county board, include supplemental information with the statement of proposed
16.12property taxes about the impact of state aid increases or decreases on property tax
16.13increases or decreases and on the level of services provided in the affected jurisdiction.
16.14This supplemental information may include information for the following year, the current
16.15year, and for as many consecutive preceding years as deemed appropriate by the governing
16.16body of the county, city, or school district. It may include only information regarding:
16.17    (1) the impact of inflation as measured by the implicit price deflator for state and
16.18local government purchases;
16.19    (2) population growth and decline;
16.20    (3) state or federal government action; and
16.21    (4) other financial factors that affect the level of property taxation and local services
16.22that the governing body of the county, city, or school district may deem appropriate to
16.23include.
16.24    The information may be presented using tables, written narrative, and graphic
16.25representations and may contain instruction toward further sources of information or
16.26opportunity for comment.
16.27EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
16.28thereafter.

16.29    Sec. 12. Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read:
16.30    Subd. 2. School district in more than one county levies; special requirements. (a)
16.31In school districts lying in more than one county, the clerk shall certify the tax levied to the
16.32auditor of the county in which the administrative offices of the school district are located.
16.33    (b) The clerk shall identify the portion of the school district levy that is levied for the
16.34purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time
16.35that the levy is certified under this section.
17.1EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
17.2thereafter.

17.3    Sec. 13. Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read:
17.4    Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against
17.5net tax capacity under section 275.07 by an individual local government unit shall be
17.6divided by the total net tax capacity of all taxable properties within the local government
17.7unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
17.8multiplied by each property's net tax capacity shall be each property's net tax capacity tax
17.9for that local government unit before reduction by any credits.
17.10    (b) The auditor shall also determine the school debt tax rate for each school district
17.11equal to the school debt levy certified under section 275.07 divided by the total net tax
17.12capacity of all taxable property within the district.
17.13    (c) Any amount certified to the county auditor to be levied against market value shall
17.14be divided by the total referendum market value of all taxable properties within the taxing
17.15district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
17.16each property's referendum market value shall be each property's new referendum tax
17.17before reduction by any credits. For the purposes of this subdivision, "referendum market
17.18value" means the market value as defined in section 126C.01, subdivision 3.
17.19EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
17.20thereafter.

17.21    Sec. 14. Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:
17.22    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
17.23printing of the tax statements. The commissioner of revenue shall prescribe the form
17.24of the property tax statement and its contents. The statement must contain a tabulated
17.25statement of the dollar amount due to each taxing authority and the amount of the state
17.26tax from the parcel of real property for which a particular tax statement is prepared. The
17.27dollar amounts attributable to the county, the state tax, the voter approved school tax, the
17.28other local school tax, the township or municipality, and the total of the metropolitan
17.29special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
17.30be separately stated. The amounts due all other special taxing districts, if any, may be
17.31aggregated except that any levies made by the regional rail authorities in the county of
17.32Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
17.33shall be listed on a separate line directly under the appropriate county's levy. If the county
17.34levy under this paragraph includes an amount for a lake improvement district as defined
17.35under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
18.1separately stated from the remaining county levy amount. In the case of Ramsey County,
18.2if the county levy under this paragraph includes an amount for public library service
18.3under section 134.07, the amount attributable for that purpose may be separated from the
18.4remaining county levy amount. The amount of the tax on homesteads qualifying under the
18.5senior citizens' property tax deferral program under chapter 290B is the total amount of
18.6property tax before subtraction of the deferred property tax amount. The amount of the
18.7tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
18.8be separately stated. The dollar amounts, including the dollar amount of any special
18.9assessments, may be rounded to the nearest even whole dollar. For purposes of this section
18.10whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
18.11The amount of market value excluded under section 273.11, subdivision 16, if any, must
18.12also be listed on the tax statement.
18.13    (b) The property tax statements for manufactured homes and sectional structures
18.14taxed as personal property shall contain the same information that is required on the
18.15tax statements for real property.
18.16    (c) Real and personal property tax statements must contain the following information
18.17in the order given in this paragraph. The information must contain the current year tax
18.18information in the right column with the corresponding information for the previous year
18.19in a column on the left:
18.20    (1) the property's estimated market value under section 273.11, subdivision 1;
18.21    (2) the property's taxable market value after reductions under section 273.11,
18.22subdivisions 1a and 16 ;
18.23    (3) the property's gross tax, calculated by adding the property's total property tax to
18.24the sum of the aids enumerated in clause (4);
18.25    (4) a total of the following aids:
18.26    (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
18.27and 127A;
18.28    (ii) local government aids for cities, towns, and counties under sections 477A.011 to
18.29477A.04 ; and
18.30    (iii) disparity reduction aid under section 273.1398;
18.31    (5) for homestead residential and agricultural properties, the credits under section
18.32sections 273.1384 and 123B.555;
18.33    (6) any credits received under sections 273.119; 273.123; 273.135; 273.1391;
18.34273.1398, subdivision 4 ; 469.171; and 473H.10, except that the amount of credit received
18.35under section 273.135 must be separately stated and identified as "taconite tax relief"; and
18.36    (7) the net tax payable in the manner required in paragraph (a).
19.1    (d) If the county uses envelopes for mailing property tax statements and if the county
19.2agrees, a taxing district may include a notice with the property tax statement notifying
19.3taxpayers when the taxing district will begin its budget deliberations for the current
19.4year, and encouraging taxpayers to attend the hearings. If the county allows notices to
19.5be included in the envelope containing the property tax statement, and if more than
19.6one taxing district relative to a given property decides to include a notice with the tax
19.7statement, the county treasurer or auditor must coordinate the process and may combine
19.8the information on a single announcement.
19.9    The commissioner of revenue shall certify to the county auditor the actual or
19.10estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
19.11in the following year. The commissioner must certify this amount by January 1 of each
19.12year.
19.13EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
19.14thereafter.


19.17    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to
19.18read:
19.19    Subd. 34. City revenue need. (a) For a city with a population equal to or greater
19.20than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing
19.21percentage; plus (2) 19.141678 times the population decline percentage; plus (3)
19.222504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan
19.23area factor; minus (6) 49.10638 times the household size.
19.24    (b) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
19.252.387 times the pre-1940 housing percentage 300; plus (2) 2.67591 times the commercial
19.26industrial percentage; plus (3) 3.16042 times the population decline percentage; plus
19.27(4) 1.206 times the transformed population; minus (5) 62.772. 0.31 multiplied by the
19.28difference between the city's population and 100. The city revenue need for a city with a
19.29population less than 2,500 may not exceed 500.
19.30    (c) For a city with a population of 2,500 or more and a population in one of the most
19.31recently available five years that was less than 2,500, "city revenue need" is the sum of (1)
19.32its city revenue need calculated under paragraph (a) multiplied by its transition factor;
19.33plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied
19.34by the difference between one and its transition factor. For purposes of this paragraph, a
19.35city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's
19.36population estimate has been 2,500 or more. This provision only applies for aids payable
20.1in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It
20.2applies to any city for aids payable in 2009 and thereafter.
20.3    (d) The city revenue need cannot be less than zero.
20.4    (e) For calendar year 2005 2008 and subsequent years, the city revenue need for
20.5a city, as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual
20.6implicit price deflator for government consumption expenditures and gross investment for
20.7state and local governments as prepared by the United States Department of Commerce,
20.8for the most recently available year to the 2003 2000 implicit price deflator for state
20.9and local government purchases.
20.10EFFECTIVE DATE.This section is effective for aids payable in 2008.

20.11    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, is amended to read:
20.12    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision,
20.13"city aid base" is zero.
20.14    (b) The city aid base for any city with a population less than 500 is increased by
20.15$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
20.16of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
20.17increased by $40,000 for aids payable in calendar year 1995 only, provided that:
20.18    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
20.19    (ii) the city portion of the tax capacity rate exceeds 100 percent; and
20.20    (iii) its city aid base is less than $60 per capita.
20.21    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
20.22the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
20.23paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
20.24    (i) the city has a population in 1994 of 2,500 or more;
20.25    (ii) the city is located in a county, outside of the metropolitan area, which contains a
20.26city of the first class;
20.27    (iii) the city's net tax capacity used in calculating its 1996 aid under section
20.28477A.013 is less than $400 per capita; and
20.29    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
20.30property located in the city is classified as railroad property.
20.31    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
20.32the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
20.33paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
20.34    (i) the city was incorporated as a statutory city after December 1, 1993;
20.35    (ii) its city aid base does not exceed $5,600; and
21.1    (iii) the city had a population in 1996 of 5,000 or more.
21.2    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the
21.3maximum amount of total aid it may receive under section 477A.013, subdivision 9,
21.4paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:
21.5    (i) the city had a population in 1996 of at least 50,000;
21.6    (ii) its population had increased by at least 40 percent in the ten-year period ending
21.7in 1996; and
21.8    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.
21.9    (f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
21.10thereafter, and the maximum amount of total aid it may receive under section 477A.013,
21.11subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year 2000 only,
21.12provided that:
21.13    (1) the city has a population that is greater than 1,000 and less than 2,500;
21.14    (2) its commercial and industrial percentage for aids payable in 1999 is greater
21.15than 45 percent; and
21.16    (3) the total market value of all commercial and industrial property in the city
21.17for assessment year 1999 is at least 15 percent less than the total market value of all
21.18commercial and industrial property in the city for assessment year 1998.
21.19    (g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and
21.20the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
21.21paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
21.22    (1) the city had a population in 1997 of 2,500 or more;
21.23    (2) the net tax capacity of the city used in calculating its 1999 aid under section
21.24477A.013 is less than $650 per capita;
21.25    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
21.26section 477A.013 is greater than 12 percent;
21.27    (4) the 1999 local government aid of the city under section 477A.013 is less than
21.2820 percent of the amount that the formula aid of the city would have been if the need
21.29increase percentage was 100 percent; and
21.30    (5) the city aid base of the city used in calculating aid under section 477A.013
21.31is less than $7 per capita.
21.32    (h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and
21.33the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
21.34paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
21.35    (1) the city has a population in 1997 of 2,000 or more;
22.1    (2) the net tax capacity of the city used in calculating its 1999 aid under section
22.2477A.013 is less than $455 per capita;
22.3    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
22.4greater than $195 per capita; and
22.5    (4) the 1999 local government aid of the city under section 477A.013 is less than
22.638 percent of the amount that the formula aid of the city would have been if the need
22.7increase percentage was 100 percent.
22.8    (i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
22.9the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
22.10paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
22.11    (1) the city has a population in 1998 that is greater than 200 but less than 500;
22.12    (2) the city's revenue need used in calculating aids payable in 2000 was greater
22.13than $200 per capita;
22.14    (3) the city net tax capacity for the city used in calculating aids available in 2000
22.15was equal to or less than $200 per capita;
22.16    (4) the city aid base of the city used in calculating aid under section 477A.013
22.17is less than $65 per capita; and
22.18    (5) the city's formula aid for aids payable in 2000 was greater than zero.
22.19    (j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
22.20the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
22.21paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
22.22    (1) the city had a population in 1998 that is greater than 200 but less than 500;
22.23    (2) the city's commercial industrial percentage used in calculating aids payable in
22.242000 was less than ten percent;
22.25    (3) more than 25 percent of the city's population was 60 years old or older according
22.26to the 1990 census;
22.27    (4) the city aid base of the city used in calculating aid under section 477A.013
22.28is less than $15 per capita; and
22.29    (5) the city's formula aid for aids payable in 2000 was greater than zero.
22.30    (k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and
22.31by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
22.32total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
22.33increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
22.34only, provided that:
22.35    (1) the net tax capacity of the city used in calculating its 2000 aid under section
22.36477A.013 is less than $810 per capita;
23.1    (2) the population of the city declined more than two percent between 1988 and 1998;
23.2    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
23.3greater than $240 per capita; and
23.4    (4) the city received less than $36 per capita in aid under section 477A.013,
23.5subdivision 9 , for aids payable in 2000.
23.6    (l) The city aid base for a city with a population of 10,000 or more which is located
23.7outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the
23.8maximum amount of total aid it may receive under section 477A.013, subdivision 9,
23.9paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
23.10the lesser of:
23.11    (1)(i) the total population of the city, as determined by the United States Bureau of
23.12the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
23.13    (2) $2,500,000.
23.14    (m) The city aid base is increased by $50,000 in 2002 and thereafter, and the
23.15maximum amount of total aid it may receive under section 477A.013, subdivision 9,
23.16paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:
23.17    (1) the city is located in the seven-county metropolitan area;
23.18    (2) its population in 2000 is between 10,000 and 20,000; and
23.19    (3) its commercial industrial percentage, as calculated for city aid payable in 2001,
23.20was greater than 25 percent.
23.21    (n) The city aid base for a city is increased by $150,000 in calendar years 2002 to
23.222011 and by an additional $75,000 in calendar years 2008 to 2013 and the maximum
23.23amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
23.24also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year
23.252008 only, provided that:
23.26    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
23.27    (2) its home county is located within the seven-county metropolitan area;
23.28    (3) its pre-1940 housing percentage is less than 15 percent; and
23.29    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
23.30per capita.
23.31    (o) The city aid base for a city is increased by $200,000 beginning in calendar
23.32year 2003 and the maximum amount of total aid it may receive under section 477A.013,
23.33subdivision 9 , paragraph (c), is also increased by $200,000 in calendar year 2003 only,
23.34provided that the city qualified for an increase in homestead and agricultural credit aid
23.35under Laws 1995, chapter 264, article 8, section 18.
24.1    (p) The city aid base for a city is increased by $200,000 in 2004 only and the
24.2maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
24.3also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
24.4dry cask storage facility.
24.5    (q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
24.6maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
24.7by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster
24.8designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by
24.9more than 40 percent between 1990 and 2000.
24.10    (r) The city aid base for a city is increased by $25,000 $30,000 in 2006 2008 only
24.11and the maximum total aid it may receive under section 477A.013, subdivision 9, is also
24.12increased by $25,000 $30,000 in calendar year 2006 2008 only if the city had a population
24.13in 2003 of at least 1,000 and has a state park for which the city provides rescue services
24.14and which comprised at least 14 percent of the total geographic area included within the
24.15city boundaries in 2000.
24.16    (s) The city aid base for a city with a population less than 5,000 is increased in
24.172006 and thereafter and the minimum and maximum amount of total aid it may receive
24.18under this section is also increased in calendar year 2006 only by an amount equal to
24.19$6 multiplied by its population.
24.20    (t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum
24.21and maximum amount of total aid it may receive under section 477A.013, subdivision 9,
24.22is also increased by $80,000 in calendar year 2007 only, if:
24.23    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
24.24to be placed in trust status as tax-exempt Indian land;
24.25    (2) the placement of the land is being challenged administratively or in court; and
24.26    (3) due to the challenge, the land proposed to be placed in trust is still on the tax
24.27rolls as of May 1, 2006.
24.28    (u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and
24.29the minimum and maximum total amount of aid it may receive under this section is also
24.30increased in calendar year 2007 only, provided that:
24.31    (1) the city has a 2004 estimated population greater than 200 but less than 2,000;
24.32    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
24.33    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
24.34payable in 2006 was greater than 110 percent; and
24.35    (4) it is located in a county where at least 15,000 acres of land are classified as
24.36tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.
25.1    (v) The city aid base for a city is increased by $140,000 in 2008 and thereafter, and
25.2the maximum total aid it may receive under section 477A.013, subdivision 9, is also
25.3increased by $140,000 in calendar year 2008 only if the city had a population in 2005 of
25.4less than 3,000 and the city's boundaries as of 2007 were formed by the consolidation
25.5of two cities and one township in 2002.
25.6    (w) The city aid base for a city is increased by $100,000 in 2008 and thereafter, and
25.7the maximum total aid it may receive under section 477A.013, subdivision 9, is also
25.8increased by $100,000 in calendar year 2008 only if the city had a city net tax capacity for
25.9aids payable in 2007 of less than $150 per capita and the city experienced flooding on
25.10March 14, 2007, that resulted in evacuation of at least 40 homes.
25.11EFFECTIVE DATE.This section is effective for sales and purchases made after
25.12June 30, 2007.

25.13    Sec. 3. Minnesota Statutes 2006, section 477A.0124, subdivision 4, is amended to read:
25.14    Subd. 4. County tax-base equalization aid. (a) For 2006 and subsequent years,
25.15the money appropriated to county tax-base equalization aid each calendar year, after the
25.16payment under paragraph (f), shall be apportioned among the counties according to each
25.17county's tax-base equalization aid factor.
25.18    (b) A county's tax-base equalization aid factor is equal to the amount by which (i)
25.19$185, as adjusted for inflation in paragraph (g), times the county's population, exceeds (ii)
25.209.45 percent of the county's net tax capacity.
25.21    (c) In the case of a county with a population less than 10,000, the factor determined
25.22in paragraph (b) shall be multiplied by a factor of three.
25.23    (d) In the case of a county with a population greater than or equal to 10,000, but less
25.24than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
25.25    (e) In the case of a county with a population greater than 500,000, the factor
25.26determined in paragraph (b) shall be multiplied by a factor of 0.25.
25.27    (f) Before the money appropriated to county base equalization aid is apportioned
25.28among the counties as provided in paragraph (a), an amount up to $73,259 is allocated
25.29annually to Anoka County and up to $59,664 is annually allocated to Washington County
25.30for the county to pay postretirement costs of health insurance premiums for court
25.31employees. The allocation under this paragraph is in addition to the allocations under
25.32paragraphs (a) to (e).
25.33    (g) For calendar year 2008 and subsequent years, the $185 in paragraph (b)
25.34is multiplied by the ratio of the implicit price deflator for government consumption
25.35expenditures and gross investment for state and local governments as prepared by the
26.1United States Department of Commerce for the most recently available year to the 2003
26.2implicit price deflator for state and local government purchases.
26.3EFFECTIVE DATE.This section is effective for aids payable in calendar year
26.42008 and thereafter.

26.5    Sec. 4. Minnesota Statutes 2006, section 477A.013, subdivision 8, is amended to read:
26.6    Subd. 8. City formula aid. In calendar year 2004 and subsequent years, the
26.7formula aid for a city is equal to the need increase percentage multiplied by the difference
26.8between (1) the city's revenue need multiplied by its population, and (2) the sum of the
26.9city's net tax capacity multiplied by the tax effort rate; the taconite aids under sections
26.10298.28 and 298.282 to any city except a city directly impacted by a taconite mine or plant,
26.11multiplied by the following percentages:
26.12    (i) zero percent for aids payable in 2004;
26.13    (ii) 25 percent for aids payable in 2005;
26.14    (iii) 50 percent for aids payable in 2006;
26.15    (iv) 75 percent for aids payable in 2007; and
26.16    (v) 100 percent for aids payable in 2008 and thereafter.
26.17    For purposes of this subdivision, "a city directly impacted by a taconite mine or
26.18plant" means: (1) Babbit, (2) Eveleth, (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6)
26.19Silver Bay, or (7) Virginia.
26.20No city may have a formula aid amount less than zero. The need increase percentage
26.21must be the same for all cities.
26.22    The applicable need increase percentage must be calculated by the Department of
26.23Revenue so that the total of the aid under subdivision 9 equals the total amount available
26.24for aid under section 477A.03 after the subtraction under section 477A.014, subdivisions
26.254 and 5 .
26.26EFFECTIVE DATE.This section is effective beginning with aids payable in 2008.

26.27    Sec. 5. Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read:
26.28    Subd. 9. City aid distribution. (a) In calendar year 2002 and thereafter 2008, each
26.29city shall receive an aid distribution equal to the sum of (1) the city formula aid under
26.30subdivision 8, and (2) its city aid base, and (3) one-half of the difference between its total
26.31aid in the previous year under this section and its city aid base in the previous year. For aids
26.32payable in 2009 and thereafter, each city shall receive an aid distribution equal to the sum
26.33of (1) the city formula aid under subdivision 8, (2) its city aid base, and (3) its formula aid
26.34under subdivision 8 in the previous year, prior to any adjustments under this subdivision.
27.1    (b) For aids payable in 2008, the total aid for any city shall not exceed the sum of (1)
27.225 percent of its net levy for the year prior to the aid distribution plus (2) its total aid in the
27.3previous year. For aids payable in 2005 2009 and thereafter, the total aid for any city shall
27.4not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid
27.5distribution plus (2) its total aid in the previous year. For aids payable in 2005 2008 and
27.6thereafter, the total aid for any city with a population of 2,500 or more may not decrease
27.7from be less than its total aid under this section in the previous year by an amount greater
27.8than minus the lesser of (1) $15 multiplied by its population, or (2) ten percent of its net
27.9levy in the year prior to the aid distribution.
27.10    (c) For aids payable in 2004 only, the total aid for a city with a population less than
27.112,500 may not be less than the amount it was certified to receive in 2003 minus the greater
27.12of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special Session
27.13chapter 21, article 5, or (2) five percent of its 2003 aid amount. For aids payable in 2008
27.14only, the total aid for a city with a population less than 2,500 must not be less than the
27.15amount it would otherwise be certified to receive in 2008 if this act was not enacted. For
27.16aids payable in 2005 2008 and thereafter, the total aid for a city with a population less
27.17than 2,500 must not be less than the amount it was certified to receive in the previous year
27.18minus the lesser of (1) $15 multiplied by its population, or (2) five percent of its 2003
27.19certified aid amount.
27.20    (d) If a city's net tax capacity used in calculating aid under this section has decreased
27.21in any year by more than 25 percent from its net tax capacity in the previous year due to
27.22property becoming tax-exempt Indian land, the city's maximum allowed aid increase
27.23under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
27.24year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
27.25resulting from the property becoming tax exempt.
27.26EFFECTIVE DATE.This section is effective for aids payable in 2008 and
27.27thereafter.

27.28    Sec. 6. Minnesota Statutes 2006, section 477A.013, is amended by adding a
27.29subdivision to read:
27.30    Subd. 11. Towns. In 2008 and subsequent years, each town that levied a property
27.31tax in the previous year shall receive a distribution equal to $3 multiplied by its population.
27.32EFFECTIVE DATE.This section is effective for aids payable in calendar year
27.332008 and thereafter.

27.34    Sec. 7. Minnesota Statutes 2006, section 477A.03, is amended to read:
27.35477A.03 APPROPRIATION.
28.1    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed
28.2by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
28.3commissioner of revenue.
28.4    Subd. 2a. Cities. For aids payable in 2004, the total aids paid under section
28.5477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the
28.6total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000. For
28.7aids payable in 2006 and thereafter 2008, the total aids paid under section 477A.013,
28.8subdivision 9 , is limited to $485,052,000 $545,052,000. For aids payable in 2009 and
28.9thereafter, the total aids paid under section 477A.013, subdivision 9, are the amounts
28.10certified to be paid in the previous year, adjusted for inflation as provided under
28.11subdivision 5.
28.12    Subd. 2b. Counties. (a) For aids payable in calendar year 2005 and thereafter
28.132008, the total aids paid to counties under section 477A.0124, subdivision 3, are limited
28.14to $100,500,000 $108,000,000. For aids payable in 2008 and thereafter, the total aids
28.15paid under section 477A.0124, subdivision 3, are the amounts certified to be paid in the
28.16previous year, adjusted for inflation as provided under subdivision 5. Each calendar year,
28.17$500,000 shall be retained by the commissioner of revenue to make reimbursements
28.18to the commissioner of finance for payments made under section 611.27. For calendar
28.19year 2004, the amount shall be in addition to the payments authorized under section
28.20477A.0124, subdivision 1. For calendar year 2005 and subsequent years, The amount shall
28.21be deducted from the appropriation under this paragraph. The reimbursements shall be to
28.22defray the additional costs associated with court-ordered counsel under section 611.27.
28.23Any retained amounts not used for reimbursement in a year shall be included in the next
28.24distribution of county need aid that is certified to the county auditors for the purpose of
28.25property tax reduction for the next taxes payable year.
28.26    (b) For aids payable in 2005, the total aids under section 477A.0124, subdivision
28.274 , are limited to $105,000,000. For aids payable in 2006 and thereafter 2008, the total
28.28aid under section 477A.0124, subdivision 4, is limited to $105,132,923 $112,632,923.
28.29For aids payable in 2008 and thereafter, the total aids paid under section 477A.0124,
28.30subdivision 4, are the amounts certified to be paid in the previous year, adjusted for
28.31inflation as provided under subdivision 5. The commissioner of finance shall bill the
28.32commissioner of revenue for the cost of preparation of local impact notes as required by
28.33section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner
28.34of education shall bill the commissioner of revenue for the cost of preparation of local
28.35impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal
28.36year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed
29.1under this paragraph from the appropriation under this paragraph. The amounts deducted
29.2are appropriated to the commissioner of finance and the commissioner of education for the
29.3preparation of local impact notes.
29.4    Subd. 5. Inflation adjustment. (a) In 2009 and thereafter, the amount paid under
29.5subdivision 2a shall each be increased by an amount as provided in paragraphs (b) and (c).
29.6    (b) Unless the requirements of paragraph (c) are met, the increase shall be one
29.7percent above the amount certified to be paid under those subdivisions in the previous year.
29.8    (c) If the legislature adopts a new formula proposed by the study in section 11
29.9that all city organizations representing at least 40 cities in the state support, the increase
29.10shall be equal to:
29.11    (1) the amount certified to be paid under that subdivision in the previous year,
29.12multiplied by
29.13    (2) one plus the percentage increase in the implicit price deflator for state and
29.14local government purchases of goods and services prepared by the Bureau of Economic
29.15Analysis of the United States Department of Commerce for the 12-month period ending
29.16March 31 of the previous year.
29.17    The increase under this provision in any year may not be less than 2.5 percent or
29.18greater than 5.0 percent.
29.19    (d) In 2009 and thereafter, the amounts paid under subdivision 2b, paragraphs (a) and
29.20(b), shall be increased by one percent each year over the amount paid in the previous year.
29.21EFFECTIVE DATE.This section is effective for aids payable in calendar year
29.222008 and thereafter.

29.23    Sec. 8. UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR
29.24CALCULATION OF SCHOOL DISTRICT AIDS AND LEVIES.
29.25    For purposes of calculating school levies and aids for fiscal years 2009, 2010, and
29.262011 only, the commissioner of revenue shall compute the adjusted net tax capacity and
29.27referendum market value as if the tax base changes resulting from the amendments to
29.28Minnesota Rules, chapter 8100, including the phase-in provisions of Minnesota Rules,
29.29part 8100.0800, were effective one year earlier.
29.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009,
29.312010 and 2011.

29.32    Sec. 9. UTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR
29.33CALCULATION OF COUNTY AND CITY AIDS.
30.1    For purposes of calculating aid for cities under section 477A.013, and for counties
30.2under section 477A.0124, for payment in 2008, 2009, and 2010 only, the commissioner
30.3of revenue shall calculate the adjusted net tax capacity of cities and counties, as defined
30.4in sections 477A.011 and 477A.0124, as if the tax base changes resulting from the
30.5amendments to Minnesota Rules, chapter 8100, including the phase-in provisions of
30.6Minnesota Rules, part 8100.0800, were effective one year earlier.
30.7EFFECTIVE DATE.This section is effective for aids payable in 2008, 2009,
30.8and 2010 .

30.9    Sec. 10. MAHNOMEN COUNTY; COUNTY PROPERTY TAX
30.10REIMBURSEMENT, CITY AND SCHOOL DISTRICT TAX BASE
30.11ADJUSTMENTS.
30.12    Subdivision 1. Aid appropriation. $250,000 is appropriated in fiscal year 2009
30.13from the general fund to the commissioner of revenue to make a payment in calendar year
30.142008 to the county of Mahnomen to compensate for the loss of property tax revenue due
30.15to the pending placement of property, located in the city of Mahnomen, into trust status by
30.16the United States Department of the Interior, Bureau of Indian Affairs.
30.17    Subd. 2. School district and city tax base adjustments. (a) The commissioner
30.18of revenue must reduce the referendum market value and adjusted net tax capacity used
30.19to calculate school levies beginning with taxes payable in 2008 and subsequent years
30.20for Independent School District No.432, Mahnomen, by the amounts attributable to the
30.21property that is pending placement into trust status by the United States Department of the
30.22Interior, Bureau of Indian Affairs, . This adjustment shall be made each year until one
30.23year after the removal of the property from the tax rolls
30.24    (b) The commissioner of revenue must reduce the city net tax capacity used to
30.25calculate city aid under sections 477A.011 to 477A.03, beginning with aids payable in
30.262008 for the city of Mahnomen, by the amounts attributable to property that is pending
30.27placement into trust status by the United States Department of the Interior, Bureau of
30.28Indian Affairs. This adjustment shall be made each year until one year after the removal of
30.29the property from the tax rolls.
30.30EFFECTIVE DATE.This section is effective for aids and levies payable in 2008
30.31and thereafter.

30.32    Sec. 11. STUDY OF CITY LOCAL GOVERNMENT AID PROGRAM.
30.33    The commissioner of revenue shall work with representatives of all major city
30.34organizations, representing at least 40 cities on this issue, to study the current local
31.1government aid formula for cities, along with alternatives proposed by the various
31.2interest groups, and provide a written report with recommendations to the legislature, in
31.3compliance with Minnesota Statutes, sections 3.195 and 3.197, by February 1, 2008.
31.4The study must list the alternatives considered and any the recommended changes for
31.5which consensus has been reached. If there is no consensus on proposed changes, the
31.6commissioner shall report this. The commissioner will allocate minimal staff time to the
31.7study but will provide staff to organize and chair any meetings of the study group, and
31.8provide modelling assistance for the final proposed changes.
31.9EFFECTIVE DATE.This section is effective the day following final enactment.


31.12    Section 1. Minnesota Statutes 2006, section 97A.061, subdivision 2, is amended to
31.13read:
31.14    Subd. 2. Allocation. (a) Except as provided in subdivision 3, the county treasurer
31.15shall allocate the payment among the county, towns, and school districts on the same basis
31.16as if the payments were taxes on the land received in the year. Payment of a town's or a
31.17school district's allocation must be made by the county treasurer to the town or school
31.18district within 30 days of receipt of the payment to the county. The county's share of the
31.19payment shall be deposited in the county general revenue fund.
31.20    (b) The county treasurer of a county with a population over 39,000 but less than
31.2142,000 in the 1950 federal census shall allocate the payment only among the towns and
31.22school districts on the same basis as if the payments were taxes on the lands received
31.23in the current year.
31.24    (c) If a town received a payment in calendar year 2006 or thereafter under this
31.25subdivision, and subsequently incorporated as a city, the city will continue to receive any
31.26future year's allocations that would have been made to the town had it not incorporated,
31.27provided the city does not pass ordinances prohibiting hunting.
31.28EFFECTIVE DATE.This section is effective for aid payments made in 2007
31.29and thereafter.

31.30    Sec. 2. Minnesota Statutes 2006, section 127A.48, subdivision 3, is amended to read:
31.31    Subd. 3. Agricultural lands. For purposes of determining the adjusted net tax
31.32capacity of agricultural lands for the calculation of adjusted net tax capacities, the market
31.33value of agricultural lands must be the price for which the property would sell in an
31.34arm's-length transaction. When agricultural land is sold, the property is enrolled under
31.35section 273.111, and the purchaser changes its use in a manner that would result in
32.1a change of classification of the property, the assessment/sales ratio study under this
32.2subdivision must take into account that changed classification as soon as practicable. A
32.3change in status from homestead to nonhomestead or from nonhomestead to homestead is
32.4not a change in classification under this subdivision.
32.5EFFECTIVE DATE.This section is effective for the first study prepared following
32.6the day following final enactment.

32.7    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
32.8to read:
32.9    Subd. 85. Modular homes used as models by dealers. (a) A modular home
32.10is exempt if it:
32.11    (1) is owned by a modular home dealer and is located on land owned or leased
32.12by that dealer;
32.13    (2) is a single-family model home;
32.14    (3) is not available for sale and is used exclusively as a model;
32.15    (4) is not permanently connected to any utilities except electricity; and
32.16    (5) is situated on a temporary foundation.
32.17    (b) The exemption under this subdivision is allowable for up to five assessment
32.18years after the date it becomes located on the property, provided that the modular home
32.19continues to meet all of the criteria under this subdivision each year. The owner of a
32.20modular model home must notify the county assessor within 60 days that it has been
32.21constructed or located on the property and must again notify the assessor if the modular
32.22home ceases to meet any of the criteria. If more than one modular home is constructed or
32.23situated on a property, the owner must notify the assessor within 60 days for each of the
32.24models placed on the property.
32.25    (c) For purposes of this subdivision, a "modular home" means a building or
32.26structural unit that has been in whole or substantial part manufactured or constructed
32.27at an off-site location to be wholly or partially assembled on-site as a single family
32.28dwelling. Construction of the modular home must comply with applicable standards
32.29adapted in Minnesota State Rules authorized under Minnesota Statutes, chapter 16B. A
32.30modular home does not include a structure subject to the requirements of the National
32.31Manufactured Home Construction and Safety Standards Act of 1974 or prefabricated
32.32buildings, as defined in Minnesota Statutes, section 327.31, subdivision 6.
32.33EFFECTIVE DATE.This section is effective for assessment year 2007 and
32.34thereafter, for taxes payable in 2008 and thereafter. The five-year assessment time period
32.35begins with the 2007 assessment for a modular model home currently situated provided
33.1it meets all of the criteria and the county assessor is notified within 90 days of the day
33.2following final enactment.

33.3    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
33.4to read:
33.5    Subd. 86. Electric generation facility; personal property. (a) Notwithstanding
33.6subdivision 9, clause (a), attached machinery and other personal property which is part of
33.7a simple-cycle combustion-turbine electric generation facility that exceeds 150 megawatts
33.8of installed capacity and that meets the requirements of this subdivision is exempt. At
33.9the time of construction, the facility must:
33.10    (1) utilize natural gas as a primary fuel;
33.11    (2) be owned by an electric generation and transmission cooperative;
33.12    (3) be located within one mile of an existing 16-inch natural gas pipeline and a
33.1369-kilovolt and a 230-kilovolt high-voltage electric transmission line;
33.14    (4) be designed to provide peaking, emergency backup, or contingency services;
33.15    (5) have received a certificate of need under section 216B.243 demonstrating
33.16demand for its capacity; and
33.17    (6) have received by resolution the approval from the governing bodies of the county
33.18and the city in which the proposed facility is to be located for the exemption of personal
33.19property under this subdivision.
33.20    (b) Construction of the facility must be commenced after January 1, 2008, and
33.21before January 1, 2012. Property eligible for this exemption does not include electric
33.22transmission lines and interconnections or gas pipelines and interconnections appurtenant
33.23to the property or the facility.
33.24EFFECTIVE DATE.This section is effective the day following final enactment.

33.25    Sec. 5. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
33.26to read:
33.27    Subd. 88. Apprenticeship training facilities. Property used exclusively for a
33.28state-approved apprenticeship program through the Department of Labor and Industry,
33.29and that is owned by a 501(c)(3) nonprofit corporation is exempt, provided the program
33.30participants receive no compensation.
33.31EFFECTIVE DATE.This section is effective for assessment year 2007 and
33.32thereafter, for taxes payable in 2008 and thereafter.

33.33    Sec. 6. Minnesota Statutes 2006, section 272.115, subdivision 1, is amended to read:
34.1    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5,
34.2whenever any real estate is sold for a consideration in excess of $1,000, whether by
34.3warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
34.4grantee or the legal agent of either shall file a certificate of value with the county auditor
34.5in the county in which the property is located when the deed or other document is
34.6presented for recording. Contract for deeds are subject to recording under section 507.235,
34.7subdivision 1 . Value shall, in the case of any deed not a gift, be the amount of the full
34.8actual consideration thereof, paid or to be paid, including the amount of any lien or liens
34.9assumed. The items and value of personal property transferred with the real property
34.10must be listed and deducted from the sale price. The certificate of value shall include the
34.11classification to which the property belongs for the purpose of determining the fair market
34.12value of the property, and shall include any proposed change in use of the property known
34.13to the person filing the certificate that could change the classification of the property. The
34.14certificate shall include financing terms and conditions of the sale which are necessary
34.15to determine the actual, present value of the sale price for purposes of the sales ratio
34.16study. The commissioner of revenue shall promulgate administrative rules specifying the
34.17financing terms and conditions which must be included on the certificate. Pursuant to the
34.18authority of the commissioner of revenue in section 270C.306, the certificate of value
34.19must include the Social Security number or the federal employer identification number
34.20of the grantors and grantees. The identification numbers of the grantors and grantees are
34.21private data on individuals or nonpublic data as defined in section 13.02, subdivisions 9
34.22and 12 , but, notwithstanding that section, the private or nonpublic data may be disclosed to
34.23the commissioner of revenue for purposes of tax administration. The information required
34.24to be shown on the certificate of value is limited to the information required as of the date
34.25of the acknowledgment on the deed or other document to be recorded.

34.26    Sec. 7. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to
34.27read:
34.28    Subd. 16a. Valuation exclusion for certain improvements. Improvements to
34.29homestead property made after January 2, 2008, shall be excluded from the value of the
34.30property for assessment purposes provided that (1) the house is at least 50 years old at the
34.31time of the improvement and (2) the assessor's estimated market value of the property on
34.32January 2 of the current year does not exceed $400,000.
34.33    The age of a residence is the number of years since the original year of its
34.34construction. In the case of an owner-occupied duplex or triplex, the improvement is
34.35eligible regardless of which portion of the property was improved.
35.1    If the property lies in a jurisdiction that is subject to a building permit process, a
35.2building permit must have been issued prior to commencement of the improvement.
35.3The improvements for a single project or in any one year must add at least $15,000
35.4market value to the property to be eligible for exclusion under this subdivision. Only
35.5improvements to the structure which is the residence of the qualifying homesteader, or
35.6construction of or improvements to no more than one two-car garage per residence,
35.7qualify for the provisions of this subdivision. Whenever a building permit is issued for
35.8property currently classified as homestead, the issuing jurisdiction shall notify the property
35.9owner of the possibility of valuation exclusion under this subdivision. The assessor shall
35.10require an application, including documentation of the age of the house from the owner,
35.11if unknown by the assessor. The application may be filed subsequent to the date of the
35.12building permit provided that the application must be filed within two years of the date the
35.13building permit was issued for the improvement. If the property lies in a jurisdiction that
35.14is not subject to a building permit process, the application must be filed within two years
35.15of the date the improvement was made. The assessor may require proof from the taxpayer
35.16of the date the improvement was made. Applications must be received prior to July 1 of
35.17any year in order to be effective for taxes payable in the following year.
35.18     In the case of a residence that is relocated, the relocation must be from a location
35.19within the state and the only improvements eligible for exclusion under this subdivision
35.20are (1) those for which building permits were issued to the homeowner after the residence
35.21was relocated to its present site, and (2) those undertaken during or after the year the
35.22residence is initially occupied by the homeowner, excluding any market value increase
35.23relating to basic improvements that are necessary to install the residence on its foundation
35.24and connect it to utilities at its present site.
35.25    No exclusion for an improvement may be granted by a local board of review or
35.26county board of equalization, and no abatement of the taxes for qualifying improvements
35.27may be granted by the county board unless (1) a building permit was issued prior to the
35.28commencement of the improvement if the jurisdiction requires a building permit, and
35.29(2) an application was completed.
35.30    The assessor shall note the qualifying value of each improvement on the property's
35.31record, and the sum of those amounts must be subtracted from the value of the property in
35.32each year for ten years after the improvement has been made. After ten years, the amount
35.33of the qualifying value shall be added back as follows:
35.34    (1) 50 percent in the two subsequent assessment years if the qualifying value is equal
35.35to or less than $20,000 market value; or
36.1    (2) 33-1/3 percent in the three subsequent assessment years if the qualifying value is
36.2greater than $20,000 market value.
36.3    If an application is filed after the first assessment date at which an improvement
36.4could have been subject to the valuation exclusion under this subdivision, the ten-year
36.5period during which the value is subject to exclusion is reduced by the number of years
36.6that have elapsed since the property would have qualified initially. The valuation
36.7exclusion terminates whenever (1) the property is sold, or (2) the property is reclassified to
36.8a class that does not qualify for treatment under this subdivision. Improvements made by
36.9an occupant who is the purchaser of the property under a conditional purchase contract
36.10do not qualify under this subdivision unless the seller of the property is a governmental
36.11entity. The qualifying value of the property must be computed based upon the increase
36.12from that structure's market value as of January 2 preceding the acquisition of the property
36.13by the governmental entity.
36.14    The total qualifying value for a homestead may not exceed $75,000. The term
36.15"qualifying value" means the increase in estimated market value resulting from the
36.16improvement. The maximum qualifying value under this subdivision may result from no
36.17more than two separate improvements to the homestead.
36.18    If 50 percent or more of the square footage of a structure is voluntarily razed or
36.19removed, the valuation increase attributable to any subsequent improvements to the
36.20remaining structure does not qualify for the exclusion under this subdivision. If a structure
36.21is unintentionally or accidentally destroyed by a natural disaster, the property is eligible
36.22for an exclusion under this subdivision provided that the structure was not completely
36.23destroyed. The qualifying value on property destroyed by a natural disaster shall be
36.24computed based upon the increase from that structure's market value as determined on
36.25January 2 of the year in which the disaster occurred. A property receiving benefits under
36.26the homestead disaster provisions under section 273.123 is not disqualified from receiving
36.27an exclusion under this subdivision. If any combination of improvements made to a
36.28structure after January 2, 2008, increase the size of the structure by 100 percent or more,
36.29the valuation increase attributable to the portion of the improvement that causes the
36.30structure's size to exceed 100 percent does not qualify for exclusion under this subdivision.
36.31EFFECTIVE DATE.This section is effective for improvements made after January
36.322, 2008.

36.33    Sec. 8. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision
36.34to read:
37.1    Subd. 16. Applications; denied by county. For applications filed for the 2007 and
37.22008 assessment years, all applications for deferment of taxes and assessment under this
37.3section that have been denied by the county shall be forwarded to the commissioner of
37.4revenue by the county assessor within 30 days of denial. The assessor shall also provide
37.5the commissioner with a list of any property owners that requested an application and
37.6were denied, including names and addresses, and the reason for the denial. For the
37.7purpose of monitoring compliance with this section, the commissioner shall compile a
37.8report identifying all denied applications and requests for applications that were denied,
37.9the reason for the denial, and any commissioner action or recommendation. A report will
37.10be submitted to the chairs of the house and senate tax committees on or before February
37.111, 2008, and February 1, 2009, in compliance with Minnesota Statutes, sections 3.195
37.12and 3.197.
37.13EFFECTIVE DATE.This section is effective the day following final enactment.

37.14    Sec. 9. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:
37.15    Subdivision 1. General rule. (a) Residential real estate that is occupied and used
37.16for the purposes of a homestead by its owner, who must be a Minnesota resident, is
37.17a residential homestead.
37.18    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and
37.19used as a homestead by its owner, who must be a Minnesota resident, is an agricultural
37.20homestead.
37.21    Dates for establishment of a homestead and homestead treatment provided to
37.22particular types of property are as provided in this section.
37.23    Property held by a trustee under a trust is eligible for homestead classification if the
37.24requirements under this chapter are satisfied.
37.25    The assessor shall require proof, as provided in subdivision 13, of the facts upon
37.26which classification as a homestead may be determined. Notwithstanding any other law,
37.27the assessor may at any time require a homestead application to be filed in order to verify
37.28that any property classified as a homestead continues to be eligible for homestead status.
37.29Notwithstanding any other law to the contrary, the Department of Revenue may, upon
37.30request from an assessor, verify whether an individual who is requesting or receiving
37.31homestead classification has filed a Minnesota income tax return as a resident for the most
37.32recent taxable year for which the information is available.
37.33    When there is a name change or a transfer of homestead property, the assessor may
37.34reclassify the property in the next assessment unless a homestead application is filed to
37.35verify that the property continues to qualify for homestead classification.
38.1    (b) For purposes of this section, homestead property shall include property which
38.2is used for purposes of the homestead but is separated from the homestead by a road,
38.3street, lot, waterway, or other similar intervening property. The term "used for purposes
38.4of the homestead" shall include but not be limited to uses for gardens, garages, or other
38.5outbuildings commonly associated with a homestead, but shall not include vacant land
38.6held primarily for future development. In order to receive homestead treatment for
38.7the noncontiguous property, the owner must use the property for the purposes of the
38.8homestead, and must apply to the assessor, both by the deadlines given in subdivision
38.99. After initial qualification for the homestead treatment, additional applications for
38.10subsequent years are not required.
38.11    (c) Residential real estate that is occupied and used for purposes of a homestead by a
38.12relative of the owner is a homestead but only to the extent of the homestead treatment
38.13that would be provided if the related owner occupied the property. For purposes of this
38.14paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild,
38.15grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship
38.16may be by blood or marriage. Property that has been classified as seasonal residential
38.17recreational property at any time during which it has been owned by the current owner or
38.18spouse of the current owner will not be reclassified as a homestead unless it is occupied as
38.19a homestead by the owner; this prohibition also applies to property that, in the absence of
38.20this paragraph, would have been classified as seasonal residential recreational property at
38.21the time when the residence was constructed. Neither the related occupant nor the owner of
38.22the property may claim a property tax refund under chapter 290A for a homestead occupied
38.23by a relative. In the case of a residence located on agricultural land, only the house,
38.24garage, and immediately surrounding one acre of land shall be classified as a homestead
38.25under this paragraph, except as provided in paragraph (d). In the case of non-agricultural
38.26property, this paragraph only applies to applications approved before July 1, 2007.
38.27    (d) Agricultural property that is occupied and used for purposes of a homestead by
38.28a relative of the owner, is a homestead, only to the extent of the homestead treatment
38.29that would be provided if the related owner occupied the property, and only if all of the
38.30following criteria are met:
38.31    (1) the relative who is occupying the agricultural property is a son, daughter,
38.32grandson, granddaughter, father, or mother of the owner of the agricultural property or a
38.33son, daughter, grandson, or granddaughter of the spouse of the owner of the agricultural
38.34property;
38.35    (2) the owner of the agricultural property must be a Minnesota resident;
39.1    (3) the owner of the agricultural property must not receive homestead treatment on
39.2any other agricultural property in Minnesota; and
39.3    (4) the owner of the agricultural property is limited to only one agricultural
39.4homestead per family under this paragraph.
39.5    Neither the related occupant nor the owner of the property may claim a property
39.6tax refund under chapter 290A for a homestead occupied by a relative qualifying under
39.7this paragraph. For purposes of this paragraph, "agricultural property" means the house,
39.8garage, other farm buildings and structures, and agricultural land.
39.9    Application must be made to the assessor by the owner of the agricultural property to
39.10receive homestead benefits under this paragraph. The assessor may require the necessary
39.11proof that the requirements under this paragraph have been met.
39.12    (e) In the case of property owned by a property owner who is married, the assessor
39.13must not deny homestead treatment in whole or in part if only one of the spouses occupies
39.14the property and the other spouse is absent due to: (1) marriage dissolution proceedings,
39.15(2) legal separation, (3) employment or self-employment in another location, or (4) other
39.16personal circumstances causing the spouses to live separately, not including an intent to
39.17obtain two homestead classifications for property tax purposes. To qualify under clause
39.18(3), the spouse's place of employment or self-employment must be at least 50 miles distant
39.19from the other spouse's place of employment, and the homesteads must be at least 50 miles
39.20distant from each other. Homestead treatment, in whole or in part, shall not be denied to
39.21the owner's spouse who previously occupied the residence with the owner if the absence
39.22of the owner is due to one of the exceptions provided in this paragraph.
39.23    (f) The assessor must not deny homestead treatment in whole or in part if:
39.24    (1) in the case of a property owner who is not married, the owner is absent due to
39.25residence in a nursing home, boarding care facility, or an elderly assisted living facility
39.26property as defined in section 273.13, subdivision 25a, and the property is not otherwise
39.27occupied; or
39.28    (2) in the case of a property owner who is married, the owner or the owner's spouse
39.29or both are absent due to residence in a nursing home, boarding care facility, or an elderly
39.30assisted living facility property as defined in section 273.13, subdivision 25a, and the
39.31property is not occupied or is occupied only by the owner's spouse.
39.32    (g) If an individual is purchasing property with the intent of claiming it as a
39.33homestead and is required by the terms of the financing agreement to have a relative
39.34shown on the deed as a co-owner, the assessor shall allow a full homestead classification.
39.35This provision only applies to first-time purchasers, whether married or single, or to a
39.36person who had previously been married and is purchasing as a single individual for the
40.1first time. The application for homestead benefits must be on a form prescribed by the
40.2commissioner and must contain the data necessary for the assessor to determine if full
40.3homestead benefits are warranted.
40.4    (h) If residential or agricultural real estate is occupied and used for purposes of a
40.5homestead by a child of a deceased owner and the property is subject to jurisdiction of
40.6probate court, the child shall receive relative homestead classification under paragraph (c)
40.7or (d) to the same extent they would be entitled to it if the owner was still living, until
40.8the probate is completed. For purposes of this paragraph, "child" includes a relationship
40.9by blood or by marriage.
40.10    (i) If a single-family home, duplex, or triplex classified as either residential
40.11homestead or agricultural homestead is also used to provide licensed child care, the
40.12portion of the property used for licensed child care must be classified as a part of the
40.13homestead property.
40.14EFFECTIVE DATE.This section is effective the day following final enactment.

40.15    Sec. 10. Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:
40.16    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than
40.17ten acres that is the homestead of its owner must be classified as class 2a under section
40.18273.13, subdivision 23 , paragraph (a), if:
40.19    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
40.20agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
40.21Service, or (iii) land administered by the Department of Natural Resources on which in
40.22lieu taxes are paid under sections 477A.11 to 477A.14;
40.23    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
40.2420 acres;
40.25    (3) the noncontiguous land is located not farther than four townships or cities, or a
40.26combination of townships or cities from the homestead; and
40.27    (4) the agricultural use value of the noncontiguous land and farm buildings is equal
40.28to at least 50 percent of the market value of the house, garage, and one acre of land.
40.29    Homesteads initially classified as class 2a under the provisions of this paragraph shall
40.30remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
40.31properties, as long as the homestead remains under the same ownership, the owner owns a
40.32noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
40.33value qualifies under clause (4). Homestead classification under this paragraph is limited
40.34to property that qualified under this paragraph for the 1998 assessment.
41.1    (b)(i) Agricultural property consisting of at least 40 acres, incorporating government
41.2lots and correctional 40's, shall be classified as the owner's homestead, to the same extent
41.3as other agricultural homestead property, if all of the following criteria are met:
41.4    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's
41.5spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively
41.6farming the agricultural property, either on the person's own behalf as an individual or
41.7on behalf of a partnership operating a family farm, family farm corporation, joint family
41.8farm venture, or limited liability company of which the person is a partner, shareholder, or
41.9member;
41.10    (2) both the owner of the agricultural property and the person who is actively
41.11farming the agricultural property under clause (1), are Minnesota residents;
41.12    (3) neither the owner nor the spouse of the owner claims another agricultural
41.13homestead in Minnesota; and
41.14    (4) neither the owner nor and the person actively farming the property lives farther
41.15than four townships or cities, or a combination of four townships or cities, from the
41.16agricultural property must live either in the county where the agricultural property is
41.17located or in a county contiguous to the county where the agricultural property is located,
41.18except that if the owner or the owner's spouse is required to live in employer-provided
41.19housing, the owner or owner's spouse, whichever is actively farming the agricultural
41.20property, may live more than four townships or cities, or combination of four townships
41.21or cities further from the agricultural property than in the county or county contiguous
41.22to the property.
41.23    The relationship under this paragraph may be either by blood or marriage.
41.24    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead
41.25classification under this paragraph if the qualifications in clause (i) are met, except that
41.26"owner" means the grantor of the trust.
41.27    (iii) Property containing the residence of an owner who owns qualified property
41.28under clause (i) shall be classified as part of the owner's agricultural homestead, if that
41.29property is also used for noncommercial storage or drying of agricultural crops.
41.30    (c) Noncontiguous land shall be included as part of a homestead under section
41.31273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a
41.32and the detached land is located in the same township or city, or not farther than four
41.33townships or cities or combination thereof from county or in a county contiguous to the
41.34homestead. Any taxpayer of these noncontiguous lands must notify the county assessor
41.35that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is
41.36located in another county, the taxpayer must also notify the assessor of the other county.
42.1    (d) Agricultural land used for purposes of a homestead and actively farmed by a
42.2person holding a vested remainder interest in it must be classified as a homestead under
42.3section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
42.4any other dwellings on the land used for purposes of a homestead by persons holding
42.5vested remainder interests who are actively engaged in farming the property, and up to
42.6one acre of the land surrounding each homestead and reasonably necessary for the use of
42.7the dwelling as a home, must also be assessed class 2a.
42.8    (e) Agricultural land and buildings that were class 2a homestead property under
42.9section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
42.10classified as agricultural homesteads for subsequent assessments if:
42.11    (1) the property owner abandoned the homestead dwelling located on the agricultural
42.12homestead as a result of the April 1997 floods;
42.13    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
42.14or Wilkin;
42.15    (3) the agricultural land and buildings remain under the same ownership for the
42.16current assessment year as existed for the 1997 assessment year and continue to be used
42.17for agricultural purposes;
42.18    (4) the dwelling occupied by the owner is located in Minnesota and is within 30
42.19miles of one of the parcels of agricultural land that is owned by the taxpayer; and
42.20    (5) the owner notifies the county assessor that the relocation was due to the 1997
42.21floods, and the owner furnishes the assessor any information deemed necessary by the
42.22assessor in verifying the change in dwelling. Further notifications to the assessor are not
42.23required if the property continues to meet all the requirements in this paragraph and any
42.24dwellings on the agricultural land remain uninhabited.
42.25    (f) Agricultural land and buildings that were class 2a homestead property under
42.26section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
42.27classified agricultural homesteads for subsequent assessments if:
42.28    (1) the property owner abandoned the homestead dwelling located on the agricultural
42.29homestead as a result of damage caused by a March 29, 1998, tornado;
42.30    (2) the property is located in the county of Blue Earth, Brown, Cottonwood,
42.31LeSueur, Nicollet, Nobles, or Rice;
42.32    (3) the agricultural land and buildings remain under the same ownership for the
42.33current assessment year as existed for the 1998 assessment year;
42.34    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
42.35of one of the parcels of agricultural land that is owned by the taxpayer; and
43.1    (5) the owner notifies the county assessor that the relocation was due to a March 29,
43.21998, tornado, and the owner furnishes the assessor any information deemed necessary by
43.3the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
43.4owner must notify the assessor by December 1, 1998. Further notifications to the assessor
43.5are not required if the property continues to meet all the requirements in this paragraph
43.6and any dwellings on the agricultural land remain uninhabited.
43.7    (g) Agricultural property consisting of at least 40 acres, incorporating government
43.8lots and correctional 40's, of a family farm corporation, joint family farm venture, family
43.9farm limited liability company, or partnership operating a family farm as described under
43.10subdivision 8 shall be classified homestead, to the same extent as other agricultural
43.11homestead property, if all of the following criteria are met:
43.12    (1) a shareholder, member, or partner of that entity is actively farming the
43.13agricultural property;
43.14    (2) that shareholder, member, or partner who is actively farming the agricultural
43.15property is a Minnesota resident;
43.16    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder,
43.17member, or partner claims another agricultural homestead in Minnesota; and
43.18    (4) that shareholder, member, or partner does not live farther than four townships
43.19or cities, or a combination of four townships or cities, from the agricultural property
43.20lives in the county where the agricultural property is located or in a county contiguous to
43.21the county where the property is located.
43.22    Homestead treatment applies under this paragraph for property leased to a family
43.23farm corporation, joint farm venture, limited liability company, or partnership operating a
43.24family farm if legal title to the property is in the name of an individual who is a member,
43.25shareholder, or partner in the entity.
43.26    (h) To be eligible for the special agricultural homestead under this subdivision, an
43.27initial full application must be submitted to the county assessor where the property is
43.28located. Owners and the persons who are actively farming the property shall be required
43.29to complete only a one-page abbreviated version of the application in each subsequent
43.30year provided that none of the following items have changed since the initial application:
43.31    (1) the day-to-day operation, administration, and financial risks remain the same;
43.32    (2) the owners and the persons actively farming the property continue to live within
43.33the four townships or city criteria the county or a contiguous county and are Minnesota
43.34residents;
43.35    (3) the same operator of the agricultural property is listed with the Farm Service
43.36Agency;
44.1    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
44.2    (5) the property's acreage is unchanged; and
44.3    (6) none of the property's acres have been enrolled in a federal or state farm program
44.4since the initial application.
44.5    The owners and any persons who are actively farming the property must include
44.6the appropriate Social Security numbers, and sign and date the application. If any of the
44.7specified information has changed since the full application was filed, the owner must
44.8notify the assessor, and must complete a new application to determine if the property
44.9continues to qualify for the special agricultural homestead. The commissioner of revenue
44.10shall prepare a standard reapplication form for use by the assessors.
44.11EFFECTIVE DATE.The portion of this section relating to the 40 acres requirement
44.12is effective for assessment year 2007, taxes payable in 2008 and thereafter. The remaining
44.13portion relating to contiguous counties is effective for assessment year 2008 and thereafter,
44.14taxes payable in 2009 and thereafter.

44.15    Sec. 11. Minnesota Statutes 2006, section 273.128, subdivision 1, is amended to read:
44.16    Subdivision 1. Requirement Requirements. Low-income rental property In order
44.17to be classified as class 4d low-income rental housing under section 273.13, subdivision
44.1825 , is entitled to valuation under this section if the property must meet the requirements of
44.19subdivision 4, if applicable, and at least 75 25 percent of the units in the rental housing
44.20property must meet any of the following qualifications:
44.21    (1) the units are subject to a housing assistance payments contract under Section 8
44.22of the United States Housing Act of 1937, as amended;
44.23    (2) the units are rent-restricted and income-restricted units of a qualified low-income
44.24housing project receiving tax credits under section 42(g) of the Internal Revenue Code of
44.251986, as amended;
44.26    (3) the units are financed by the Rural Housing Service of the United States
44.27Department of Agriculture and receive payments under the rental assistance program
44.28pursuant to section 521(a) of the Housing Act of 1949, as amended; or
44.29    (4) the units are subject to rent and income restrictions under the terms of financial
44.30assistance provided to the rental housing property by the federal government or the
44.31state of Minnesota, or a local unit of government, as evidenced by a document recorded
44.32against the property.
44.33    The restrictions must require assisted units to be occupied by residents whose
44.34household income at the time of initial occupancy does not exceed 60 percent of the
44.35greater of area or state median income, adjusted for family size, as determined by the
45.1United States Department of Housing and Urban Development. The restriction must also
45.2require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of
45.3area or state median income, adjusted for family size, as determined by the United States
45.4Department of Housing and Urban Development.
45.5EFFECTIVE DATE.This section is effective for property taxes levied in 2007,
45.6payable in 2008, and thereafter.

45.7    Sec. 12. Minnesota Statutes 2006, section 273.128, is amended by adding a subdivision
45.8to read:
45.9    Subd. 4. Participation in crime-free multihousing program. (a) In addition
45.10to the requirements in subdivision 1, if the property qualifies under paragraph (b), the
45.11owners or managers must complete the three phases of the city's or county's crime-free
45.12multihousing program and the qualifying property must be annually certified by the police
45.13or sheriff as participating in the program. If a qualifying property is not certified within
45.14one year after it is first determined to be a qualifying property under paragraph (b), or does
45.15not annually maintain its certification in the program, the city or county shall notify the
45.16property owner that the qualifying property must comply with the requirements of this
45.17subdivision to maintain its classification as class 4d property. If a qualifying property is
45.18not in compliance within one year after receiving the notice from the city or county, the
45.19city or county shall issue a second notice and require the owners to enter into a plan to
45.20achieve compliance within one year. If, upon expiration of the one-year time period,
45.21the qualifying property has not been certified by the police or sheriff as completing the
45.22program, the city or county shall notify the commissioner of the Housing Finance Agency
45.23and the commissioner shall remove the property from the list of class 4d properties
45.24certified to the county or city assessor under subdivision 3. Once removed from the list,
45.25the property is not eligible for class 4d classification until it complies with this subdivision
45.26and its compliance has been certified to the Housing Finance Agency by the city or county.
45.27Certification to the Housing Finance Agency must be made by May 15 to be effective for
45.28taxes payable in the following year.
45.29    (b) A property is a qualifying property for purposes of this subdivision's requirements
45.30if it satisfies each of the following requirements:
45.31    (1) the property is located in a city or county that offers a crime-free multihousing
45.32program through its city police or county sheriff;
45.33    (2) over the preceding two-year period, the number of police or sheriff calls to
45.34the property exceeded the city's or county's average number of calls for multiunit rental
45.35properties for the period by at least 25 percent, adjusted for the number of rental units;
46.1    (3) the police or sheriff department has requested, in writing, the owners or managers
46.2of the property to enroll in the crime-free multihousing program and the owners or
46.3managers refused or failed to enroll within 60 days after the request, or failed to complete
46.4phases one and three within 90 days and all three phases of the program within a one-year
46.5time period; and
46.6    (4) the governing body of the city or county, by resolution, determines the property
46.7is a qualifying property under clauses (1) to (3).
46.8    (c) Low-income qualifying rental housing property classified as class 4d property for
46.9taxes payable in 2007 must meet the requirements of this section by May 15, 2010.
46.10EFFECTIVE DATE.This section is effective for property taxes levied in 2007,
46.11payable in 2008, and thereafter.

46.12    Sec. 13. Minnesota Statutes 2006, section 273.13, subdivision 22, is amended to read:
46.13    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
46.14and (c), real estate which is residential and used for homestead purposes is class 1a. In the
46.15case of a duplex or triplex in which one of the units is used for homestead purposes, the
46.16entire property is deemed to be used for homestead purposes. The market value of class 1a
46.17property must be determined based upon the value of the house, garage, and land.
46.18    The first $500,000 of market value of class 1a property has a net class rate of
46.19one percent of its market value; and the market value of class 1a property that exceeds
46.20$500,000 has a class rate of 1.25 percent of its market value.
46.21    (b) Class 1b property includes homestead real estate or homestead manufactured
46.22homes used for the purposes of a homestead by
46.23    (1) any person who is blind as defined in section 256D.35, or the blind person and
46.24the blind person's spouse; or
46.25    (2) any person, hereinafter referred to as "veteran," who:
46.26    (i) served in the active military or naval service of the United States; and
46.27    (ii) is entitled to compensation under the laws and regulations of the United States
46.28for permanent and total service-connected disability due to the loss, or loss of use, by
46.29reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both
46.30lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or
46.31a wheelchair; and
46.32    (iii) has acquired a special housing unit with special fixtures or movable facilities
46.33made necessary by the nature of the veteran's disability, or the surviving spouse of the
46.34deceased veteran for as long as the surviving spouse retains the special housing unit
46.35as a homestead; or
47.1    (3) any person who is permanently and totally disabled.
47.2    Property is classified and assessed under clause (3) only if the government agency or
47.3income-providing source certifies, upon the request of the homestead occupant, that the
47.4homestead occupant satisfies the disability requirements of this paragraph.
47.5    Property is classified and assessed pursuant to clause (1) only if the commissioner of
47.6revenue certifies to the assessor that the homestead occupant satisfies the requirements of
47.7this paragraph.
47.8    Permanently and totally disabled for the purpose of this subdivision means a
47.9condition which is permanent in nature and totally incapacitates the person from working
47.10at an occupation which brings the person an income. The first $32,000 $50,000 market
47.11value of class 1b property has a net class rate of .45 percent of its market value. The
47.12remaining market value of class 1b property has a class rate using the rates for class 1a or
47.13class 2a property, whichever is appropriate, of similar market value.
47.14    (c) Class 1c property is commercial use real and personal property that abuts
47.15a lakeshore line public water as defined in section 103G.005, subdivision 15, and is
47.16devoted to temporary and seasonal residential occupancy for recreational purposes but
47.17not devoted to commercial purposes for more than 250 days in the year preceding the
47.18year of assessment, and that includes a portion used as a homestead by the owner, which
47.19includes a dwelling occupied as a homestead by a shareholder of a corporation that owns
47.20the resort, a partner in a partnership that owns the resort, or a member of a limited liability
47.21company that owns the resort even if the title to the homestead is held by the corporation,
47.22partnership, or limited liability company. For purposes of this clause, property is devoted
47.23to a commercial purpose on a specific day if any portion of the property, excluding the
47.24portion used exclusively as a homestead, is used for residential occupancy and a fee is
47.25charged for residential occupancy. Class 1c property must contain three or more rental
47.26units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
47.27or individual camping site equipped with water and electrical hookups for recreational
47.28vehicles. Class 1c property must provide recreational activities such as the rental of ice
47.29fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment;
47.30provide marina services, launch services, or guide services; or sell bait and fishing tackle.
47.31Any unit in which the right to use the property is transferred to an individual or entity
47.32by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even
47.33though it may remain available for rent. A camping pad offered for rent by a property
47.34that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental
47.35agreement, as long as the use of the camping pad does not exceed 250 days. The portion of
47.36the property used as a homestead is class 1a property under paragraph (a). The remainder
48.1of the property is classified as follows: the first $500,000 $600,000 of market value is tier
48.2I, the next $1,700,000 of market value is tier II, and any remaining market value is tier
48.3III. The class rates for class 1c are: tier I, 0.55 0.50 percent; tier II, 1.0 percent; and tier
48.4III, 1.25 percent. If a class 1c resort property has any market value in tier III, the entire
48.5property must meet the requirements of subdivision 25, paragraph (d), clause (1), to
48.6qualify for class 1c treatment under this paragraph. Owners of real and personal property
48.7devoted to temporary and seasonal residential occupancy for recreation purposes in which
48.8all or a portion of the property was devoted to commercial purposes for not more than 250
48.9days in the year preceding the year of assessment desiring classification as class 1c, must
48.10submit a declaration to the assessor designating the cabins or units occupied for 250 days
48.11or less in the year preceding the year of assessment by January 15 of the assessment year.
48.12Those cabins or units and a proportionate share of the land on which they are located must
48.13be designated as class 1c as otherwise provided. The remainder of the cabins or units and
48.14a proportionate share of the land on which they are located must be designated as class
48.153a commercial. The owner of property desiring designation as class 1c property must
48.16provide guest registers or other records demonstrating that the units for which class 1c
48.17designation is sought were not occupied for more than 250 days in the year preceding the
48.18assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
48.19(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
48.20operated on a commercial basis not directly related to temporary and seasonal residential
48.21occupancy for recreation purposes does not qualify for class 1c.
48.22    (d) Class 1d property includes structures that meet all of the following criteria:
48.23    (1) the structure is located on property that is classified as agricultural property under
48.24section 273.13, subdivision 23;
48.25    (2) the structure is occupied exclusively by seasonal farm workers during the time
48.26when they work on that farm, and the occupants are not charged rent for the privilege of
48.27occupying the property, provided that use of the structure for storage of farm equipment
48.28and produce does not disqualify the property from classification under this paragraph;
48.29    (3) the structure meets all applicable health and safety requirements for the
48.30appropriate season; and
48.31    (4) the structure is not salable as residential property because it does not comply
48.32with local ordinances relating to location in relation to streets or roads.
48.33    The market value of class 1d property has the same class rates as class 1a property
48.34under paragraph (a).
48.35EFFECTIVE DATE.The portion of the section increasing the market value of
48.36the first tier of class 1c resorts and striking the language relating to class 1b veterans'
49.1homesteads is effective for assessment year 2007 and thereafter, for taxes payable in 2008
49.2and thereafter. The remaining portion of the section relating to class 1c resorts is effective
49.3for the assessment year 2008, for taxes payable in 2009 and thereafter.

49.4    Sec. 14. Minnesota Statutes 2006, section 273.13, subdivision 23, is amended to read:
49.5    Subd. 23. Class 2. (a) Class 2a property is agricultural land including any
49.6improvements that is homesteaded. The market value of the house and garage and
49.7immediately surrounding one acre of land has the same class rates as class 1a property
49.8under subdivision 22. The value of the remaining land including improvements up to the
49.9first tier valuation limit of agricultural homestead property has a net class rate of 0.55 0.50
49.10percent of market value. The remaining property over the first tier has a class rate of one
49.11percent of market value. For purposes of this subdivision, the "first tier valuation limit of
49.12agricultural homestead property" and "first tier" means the limit certified under section
49.13273.11 , subdivision 23.
49.14    (b) Class 2b property is (1) unplatted real estate, rural in character and used
49.15exclusively for growing trees for timber, lumber, and wood and wood products; (2)
49.16real estate, that is not improved with a structure and is used exclusively for growing
49.17trees for timber, lumber, and wood and wood products, if the owner has participated or
49.18is participating in a cost-sharing program for afforestation, reforestation, or timber stand
49.19improvement on that particular property, administered or coordinated by the commissioner
49.20of natural resources; (3) and that consists of at least ten acres, including land used for
49.21growing trees for timber, lumber, and wood products, but not including land used for
49.22agricultural purposes, provided that the presence of a minor, ancillary nonresidential
49.23structure does not disqualify property from the classification under this clause; (2) real
49.24estate that is nonhomestead agricultural land; or (4) (3) a landing area or public access
49.25area of a privately owned public use airport. Class 2b property has a net class rate of one
49.26percent of market value.
49.27    (c) Agricultural land as used in this section means contiguous acreage of ten acres or
49.28more, used during the preceding year for agricultural purposes. "Agricultural purposes" as
49.29used in this section means the raising or cultivation of agricultural products. "Agricultural
49.30purposes" also includes enrollment in the Reinvest in Minnesota program under sections
49.31103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public
49.32Law 99-198 if the property was classified as agricultural (i) under this subdivision for
49.33the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage
49.34on the same parcel, or contiguous acreage on an immediately adjacent parcel under the
49.35same ownership, may also qualify as agricultural land, but only if it is pasture, timber,
49.36waste, unusable wild land, or land included in state or federal farm programs. Agricultural
50.1classification for property shall be determined excluding the house, garage, and
50.2immediately surrounding one acre of land, and shall not be based upon the market value of
50.3any residential structures on the parcel or contiguous parcels under the same ownership.
50.4    (d) Real estate, excluding the house, garage, and immediately surrounding one acre
50.5of land, of less than ten acres which is exclusively and intensively used for raising or
50.6cultivating agricultural products, shall be considered as agricultural land.
50.7    Land shall be classified as agricultural even if all or a portion of the agricultural use
50.8of that property is the leasing to, or use by another person for agricultural purposes.
50.9    Classification under this subdivision is not determinative for qualifying under
50.10section 273.111.
50.11    The property classification under this section supersedes, for property tax purposes
50.12only, any locally administered agricultural policies or land use restrictions that define
50.13minimum or maximum farm acreage.
50.14    (e) The term "agricultural products" as used in this subdivision includes production
50.15for sale of:
50.16    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
50.17animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
50.18bees, and apiary products by the owner;
50.19    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
50.20for agricultural use;
50.21    (3) the commercial boarding of horses if the boarding is done in conjunction with
50.22raising or cultivating agricultural products as defined in clause (1);
50.23    (4) property which is owned and operated by nonprofit organizations used for
50.24equestrian activities, excluding racing;
50.25    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
50.26under section 97A.115;
50.27    (6) insects primarily bred to be used as food for animals;
50.28    (7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood
50.29products; and
50.30    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
50.31Department of Agriculture under chapter 28A as a food processor.
50.32    (f) If a parcel used for agricultural purposes is also used for commercial or industrial
50.33purposes, including but not limited to:
50.34    (1) wholesale and retail sales;
50.35    (2) processing of raw agricultural products or other goods;
50.36    (3) warehousing or storage of processed goods; and
51.1    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
51.2and (3),
51.3the assessor shall classify the part of the parcel used for agricultural purposes as class
51.41b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
51.5use. The grading, sorting, and packaging of raw agricultural products for first sale is
51.6considered an agricultural purpose. A greenhouse or other building where horticultural
51.7or nursery products are grown that is also used for the conduct of retail sales must be
51.8classified as agricultural if it is primarily used for the growing of horticultural or nursery
51.9products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
51.10those products. Use of a greenhouse or building only for the display of already grown
51.11horticultural or nursery products does not qualify as an agricultural purpose.
51.12    The assessor shall determine and list separately on the records the market value of
51.13the homestead dwelling and the one acre of land on which that dwelling is located. If any
51.14farm buildings or structures are located on this homesteaded acre of land, their market
51.15value shall not be included in this separate determination.
51.16    (g) To qualify for classification under paragraph (b), clause (4) (3), a privately
51.17owned public use airport must be licensed as a public airport under section 360.018. For
51.18purposes of paragraph (b), clause (4) (3), "landing area" means that part of a privately
51.19owned public use airport properly cleared, regularly maintained, and made available to the
51.20public for use by aircraft and includes runways, taxiways, aprons, and sites upon which
51.21are situated landing or navigational aids. A landing area also includes land underlying
51.22both the primary surface and the approach surfaces that comply with all of the following:
51.23    (i) the land is properly cleared and regularly maintained for the primary purposes of
51.24the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
51.25facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
51.26    (ii) the land is part of the airport property; and
51.27    (iii) the land is not used for commercial or residential purposes.
51.28The land contained in a landing area under paragraph (b), clause (4) (3), must be described
51.29and certified by the commissioner of transportation. The certification is effective until
51.30it is modified, or until the airport or landing area no longer meets the requirements of
51.31paragraph (b), clause (4) (3). For purposes of paragraph (b), clause (4) (3), "public access
51.32area" means property used as an aircraft parking ramp, apron, or storage hangar, or an
51.33arrival and departure building in connection with the airport.
51.34EFFECTIVE DATE.This section is effective for assessment year 2007 and
51.35thereafter, for taxes payable in 2008 and thereafter.

52.1    Sec. 15. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:
52.2    Subd. 24. Class 3. (a) Commercial and industrial property and utility real and
52.3personal property is class 3a.
52.4    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility
52.5real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
52.6of the remaining market value. In the case of contiguous parcels of property owned by the
52.7same person or entity, only the value equal to the first-tier value of the contiguous parcels
52.8qualifies for the reduced class rate, except that contiguous parcels owned by the same
52.9person or entity shall be eligible for the first-tier value class rate on each separate business
52.10operated by the owner of the property, provided the business is housed in a separate
52.11structure. For the purposes of this subdivision, the first tier means the first $150,000 of
52.12market value. Real property owned in fee by a utility for transmission line right-of-way
52.13shall be classified at the class rate for the higher tier.
52.14    For purposes of this subdivision, parcels are considered to be contiguous even if
52.15they are separated from each other by a road, street, waterway, or other similar intervening
52.16type of property. Connections between parcels that consist of power lines or pipelines do
52.17not cause the parcels to be contiguous. Property owners who have contiguous parcels of
52.18property that constitute separate businesses that may qualify for the first-tier class rate shall
52.19notify the assessor by July 1, for treatment beginning in the following taxes payable year.
52.20    (2) All Personal property that is: (i) part of an electric generation, transmission, or
52.21distribution system; or (ii), including tools, implements, and machinery, has a class rate
52.22of 3.0 percent.
52.23    (3) Personal property that is either: (i) part of a pipeline system transporting
52.24or distributing water, gas, crude oil, or petroleum products; and (iii) not described in
52.25clause (3), and all, including tools, implements, and machinery, or (ii) part of an electric
52.26transmission or distribution system, including tools, implements, and machinery, has a
52.27class rate of 2.25 percent.
52.28    (4) Railroad operating property has a class rate as provided under clause (1) for
52.29the first tier of market value and the remaining market value. In the case of multiple
52.30parcels in one county that are owned by one person or entity, only one first tier amount
52.31is eligible for the reduced rate.
52.32    (3) The entire market value of personal property that is: (i) tools, implements, and
52.33machinery of an electric generation, transmission, or distribution system; (ii) tools,
52.34implements, and machinery of a pipeline system transporting or distributing water, gas,
52.35crude oil, or petroleum products; or (iii) the (5) Personal property consisting of mains
52.36and pipes used in the distribution of steam or hot or chilled water for heating or cooling
53.1buildings, has a class rate as provided under clause (1) for the remaining market value
53.2in excess of the first tier.
53.3    (b) Employment property defined in section 469.166, during the period provided
53.4in section 469.170, shall constitute class 3b. The class rates for class 3b property are
53.5determined under paragraph (a).
53.6EFFECTIVE DATE.This section is effective for taxes levied in 2007, payable
53.7in 2008, and thereafter.

53.8    Sec. 16. Minnesota Statutes 2006, section 273.13, subdivision 25, is amended to read:
53.9    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
53.10units and used or held for use by the owner or by the tenants or lessees of the owner
53.11as a residence for rental periods of 30 days or more, excluding property qualifying for
53.12class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
53.13than hospitals exempt under section 272.02, and contiguous property used for hospital
53.14purposes, without regard to whether the property has been platted or subdivided. The
53.15market value of class 4a property has a class rate of 1.25 percent.
53.16    (b) Class 4b includes:
53.17    (1) residential real estate containing less than four units that does not qualify as class
53.184bb, other than seasonal residential recreational property;
53.19    (2) manufactured homes not classified under any other provision;
53.20    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
53.21farm classified under subdivision 23, paragraph (b) containing two or three units; and
53.22    (4) unimproved property that is classified residential as determined under subdivision
53.2333.
53.24    The market value of class 4b property has a class rate of 1.25 percent.
53.25    (c) Class 4bb includes:
53.26    (1) nonhomestead residential real estate containing one unit, other than seasonal
53.27residential recreational property; and
53.28    (2) a single family dwelling, garage, and surrounding one acre of property on a
53.29nonhomestead farm classified under subdivision 23, paragraph (b).
53.30    Class 4bb property has the same class rates as class 1a property under subdivision 22.
53.31    Property that has been classified as seasonal residential recreational property at
53.32any time during which it has been owned by the current owner or spouse of the current
53.33owner does not qualify for class 4bb.
53.34    (d) Class 4c property includes:
54.1    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph
54.2(b), clause (1), real and personal property devoted to temporary and seasonal residential
54.3occupancy for recreation purposes, including real and personal property devoted to
54.4temporary and seasonal residential occupancy for recreation purposes and not devoted to
54.5commercial purposes for more than 250 days in the year preceding the year of assessment.
54.6For purposes of this clause, property is devoted to a commercial purpose on a specific
54.7day if any portion of the property is used for residential occupancy, and a fee is charged
54.8for residential occupancy. Class 4c property must contain three or more rental units. A
54.9"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
54.10camping site equipped with water and electrical hookups for recreational vehicles. Class
54.114c property must provide recreational activities such as renting ice fishing houses, boats
54.12and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
54.13services, launch services, or guide services; or sell bait and fishing tackle. A camping
54.14pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c
54.15regardless of the term of the rental agreement, as long as the use of the camping pad
54.16does not exceed 250 days. In order for a property to be classified as class 4c, seasonal
54.17residential recreational for commercial purposes, at least 40 percent of the annual gross
54.18lodging receipts related to the property must be from business conducted during 90
54.19consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests
54.20during the year must be for periods of at least two consecutive nights; or (ii) at least 20
54.21percent of the annual gross receipts must be from charges for rental of fish houses, boats
54.22and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina
54.23services, launch services, and guide services, or the sale of bait and fishing tackle. For
54.24purposes of this determination, a paid booking of five or more nights shall be counted as
54.25two bookings. Class 4c also includes commercial use real property used exclusively
54.26for recreational purposes in conjunction with class 4c property devoted to temporary
54.27and seasonal residential occupancy for recreational purposes, up to a total of two acres,
54.28provided the property is not devoted to commercial recreational use for more than 250
54.29days in the year preceding the year of assessment and is located within two miles of the
54.30class 4c property with which it is used. Owners of real and personal property devoted to
54.31temporary and seasonal residential occupancy for recreation purposes and all or a portion
54.32of which was devoted to commercial purposes for not more than 250 days in the year
54.33preceding the year of assessment desiring classification as class 1c or 4c, must submit a
54.34declaration to the assessor designating the cabins or units occupied for 250 days or less in
54.35the year preceding the year of assessment by January 15 of the assessment year. Those
54.36cabins or units and a proportionate share of the land on which they are located will must be
55.1designated class 1c or 4c as otherwise provided. The remainder of the cabins or units and
55.2a proportionate share of the land on which they are located will be designated as class 3a.
55.3The owner of property desiring designation as class 1c or 4c property must provide guest
55.4registers or other records demonstrating that the units for which class 1c or 4c designation
55.5is sought were not occupied for more than 250 days in the year preceding the assessment if
55.6so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
55.7(4) conference center or meeting room, and (4) (5) other nonresidential facility operated
55.8on a commercial basis not directly related to temporary and seasonal residential occupancy
55.9for recreation purposes shall does not qualify for class 1c or 4c;
55.10    (2) qualified property used as a golf course if:
55.11    (i) it is open to the public on a daily fee basis. It may charge membership fees or
55.12dues, but a membership fee may not be required in order to use the property for golfing,
55.13and its green fees for golfing must be comparable to green fees typically charged by
55.14municipal courses; and
55.15    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
55.16    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
55.17with the golf course is classified as class 3a property;
55.18    (3) real property up to a maximum of one acre three acres of land owned and used
55.19by a nonprofit community service oriented organization; provided that and that is not used
55.20for residential purposes on either a temporary or permanent basis, qualifies for class 4c
55.21provided that it meets either of the following:
55.22    (i) the property is not used for a revenue-producing activity for more than six days
55.23in the calendar year preceding the year of assessment and the property is not used for
55.24residential purposes on either a temporary or permanent basis; or
55.25    (ii) the organization makes annual charitable contributions and donations at least
55.26equal to the property's previous year's property taxes and the property is allowed to be
55.27used for public and community meetings or events for no charge, as appropriate to the
55.28size of the facility.
55.29    For purposes of this clause, (A) "charitable contributions and donations" has
55.30the same meaning as lawful gambling purposes under section 349.12, subdivision 25,
55.31excluding those purposes relating to the payment of taxes, assessments, fees, auditing
55.32costs, and utility payments; (B) "property taxes" excludes the state general tax; (C) a
55.33"nonprofit community service oriented organization" means any corporation, society,
55.34association, foundation, or institution organized and operated exclusively for charitable,
55.35religious, fraternal, civic, or educational purposes, and which is exempt from federal
55.36income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue Code
56.1of 1986, as amended through December 31, 1990. For purposes of this clause,; and (D)
56.2"revenue-producing activities" shall include but not be limited to property or that portion
56.3of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor
56.4establishment licensed under chapter 340A, a restaurant open to the public, bowling
56.5alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
56.6insurance business, or office or other space leased or rented to a lessee who conducts a
56.7for-profit enterprise on the premises. Any portion of the property qualifying under item (i)
56.8which is used for revenue-producing activities for more than six days in the calendar year
56.9preceding the year of assessment shall be assessed as class 3a. The use of the property
56.10for social events open exclusively to members and their guests for periods of less than 24
56.11hours, when an admission is not charged nor any revenues are received by the organization
56.12shall not be considered a revenue-producing activity;.
56.13    The organization shall maintain records of its charitable contributions and donations
56.14and of public meetings and events held on the property and make them available upon
56.15request any time to the assessor to ensure eligibility. An organization meeting the
56.16requirement under item (ii) must file an application by May 1 with the assessor for
56.17eligibility for the current year's assessment. The commissioner shall prescribe a uniform
56.18application form and instructions;
56.19    (4) postsecondary student housing of not more than one acre of land that is owned by
56.20a nonprofit corporation organized under chapter 317A and is used exclusively by a student
56.21cooperative, sorority, or fraternity for on-campus housing or housing located within two
56.22miles of the border of a college campus;
56.23    (5) manufactured home parks as defined in section 327.14, subdivision 3;
56.24    (6) real property that is actively and exclusively devoted to indoor fitness, health,
56.25social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
56.26and is located within the metropolitan area as defined in section 473.121, subdivision 2;
56.27    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
56.28under section 272.01, subdivision 2, and the land on which it is located, provided that:
56.29    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
56.30Airports Commission, or group thereof; and
56.31    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
56.32leased premise, prohibits commercial activity performed at the hangar.
56.33    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
56.34be filed by the new owner with the assessor of the county where the property is located
56.35within 60 days of the sale;
57.1    (8) a privately owned noncommercial aircraft storage hangar not exempt under
57.2section 272.01, subdivision 2, and the land on which it is located, provided that:
57.3    (i) the land abuts a public airport; and
57.4    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
57.5agreement restricting the use of the premises, prohibiting commercial use or activity
57.6performed at the hangar; and
57.7    (9) residential real estate, a portion of which is used by the owner for homestead
57.8purposes, and that is also a place of lodging, if all of the following criteria are met:
57.9    (i) rooms are provided for rent to transient guests that generally stay for periods
57.10of 14 or fewer days;
57.11    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
57.12in the basic room rate;
57.13    (iii) meals are not provided to the general public except for special events on fewer
57.14than seven days in the calendar year preceding the year of the assessment; and
57.15    (iv) the owner is the operator of the property.
57.16The market value subject to the 4c classification under this clause is limited to five rental
57.17units. Any rental units on the property in excess of five, must be valued and assessed as
57.18class 3a. The portion of the property used for purposes of a homestead by the owner must
57.19be classified as class 1a property under subdivision 22.
57.20    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
57.21parcel of seasonal residential recreational property not used for commercial purposes has
57.22the same class rates as class 4bb property, (ii) manufactured home parks assessed under
57.23clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
57.24residential recreational property has a class rate of one percent for the first $500,000 of
57.25market value, and 1.25 percent for the remaining market value, (iv) the market value of
57.26property described in clause (4) has a class rate of one percent, (v) the market value of
57.27property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that
57.28portion of the market value of property in clause (9) qualifying for class 4c property
57.29has a class rate of 1.25 percent.
57.30    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
57.31by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
57.32of the units in the building qualify as low-income rental housing units as certified under
57.33section 273.128, subdivision 3, only the proportion of qualifying units to the total number
57.34of units in the building qualify for class 4d. The remaining portion of the building shall be
57.35classified by the assessor based upon its use. Class 4d also includes the same proportion of
57.36land as the qualifying low-income rental housing units are to the total units in the building.
58.1For all properties qualifying as class 4d, the market value determined by the assessor must
58.2be based on the normal approach to value using normal unrestricted rents.
58.3    Class 4d property has a class rate of 0.75 percent.
58.4EFFECTIVE DATE.The portion of the section relating to 4c resorts in paragraph
58.5(d), clause (1), is effective for assessment year 2008 and thereafter, for taxes payable in
58.62009 and thereafter. The portion of this section relating to nonprofit community service
58.7oriented organizations is effective for assessment year 2007 and thereafter, for taxes
58.8payable in 2008 and thereafter, except that the application date in paragraph (d), clause
58.9(3), item (ii), for the 2007 assessment is extended to September 1, 2007.

58.10    Sec. 17. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:
58.11    Subd. 33. Classification of unimproved property. (a) All real property that is not
58.12improved with a structure must be classified according to its current use.
58.13    (b) Except as provided in subdivision 23, paragraph (b), clause (1), real property that
58.14is not improved with a structure and for which there is no identifiable current use must be
58.15classified according to its highest and best use permitted under the local zoning ordinance.
58.16If the ordinance permits more than one use, the land must be classified according to the
58.17highest and best use permitted under the ordinance. If no such ordinance exists, the
58.18assessor shall consider the most likely potential use of the unimproved land based upon
58.19the use made of surrounding land or land in proximity to the unimproved land.
58.20EFFECTIVE DATE.This section is effective for assessment year 2007 and
58.21thereafter, for taxes payable in 2008 and thereafter.

58.22    Sec. 18. Minnesota Statutes 2006, section 273.13, is amended by adding a subdivision
58.23to read:
58.24    Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value
58.25of property qualifying for homestead classification under subdivision 22 or 23 is excluded
58.26in determining the property's taxable market value if it serves as the homestead of a
58.27military veteran, as defined in section 197.447, who has a service-connected disability of
58.2850 percent or more. To qualify for exclusion under this subdivision, the veteran must have
58.29been honorably discharged from the United States armed forces, as indicated by United
58.30States Government Form DD214 or other official military discharge papers, and must be
58.31certified by the United States Veterans Administration as having a service-connected
58.32disability.
58.33    (b)(1) For a disability rating of at least 50 percent but less than 70 percent, $100,000
58.34of market value is excluded;
59.1    (2) for a disability rating of 70 percent or more, $150,000 of market value is
59.2excluded, except as provided in clause (3); and
59.3    (3) for a total (100 percent) and permanent disability, $300,000 of market value is
59.4excluded.
59.5    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
59.6clause (3), predeceases the veteran's spouse, and if upon the death of the veteran the
59.7spouse holds the legal or beneficial title to the homestead and permanently resides there,
59.8the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
59.9spouse sells, transfers, or otherwise disposes of the property.
59.10    (d) In the case of an agricultural homestead, only the portion of the property
59.11consisting of the house and garage and immediately surrounding one acre of land qualifies
59.12for the valuation exclusion under this subdivision.
59.13    (e) A property qualifying for a valuation exclusion under this subdivision is not
59.14eligible for the credit under section 273.1384, subdivision 1.
59.15    (f) To qualify for a valuation exclusion under this subdivision a property owner must
59.16apply to the assessor by July 1 of each assessment year, except that an annual reapplication
59.17is not required once a property has been accepted for a valuation exclusion under paragraph
59.18(b), clause (3), and the property continues to qualify until there is a change in ownership.
59.19EFFECTIVE DATE.This section is effective for assessment year 2007 and
59.20thereafter, for taxes payable in 2008 and thereafter.

59.21    Sec. 19. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
59.22to read:
59.23    Subd. 3b Supplemental notice of proposed levy increases. (a) If a city that has
59.24a population of more than 2,500 or a county proposes a levy increase greater than the
59.25threshold increase calculated under paragraph (b), it shall prepare and deliver by first class
59.26mail a supplemental proposed property tax notice to each property taxpayer in the taxing
59.27jurisdiction, as described in this subdivision.
59.28    (b) The threshold increase in the proposed property tax levy is equal to the levy in
59.29the previous year, multiplied by the sum of (1) one percent, (2) the percentage growth,
59.30if any, in the population in the taxing jurisdiction for the most recent available year, (3)
59.31the percentage increase in the total market value in the taxing jurisdiction due to new
59.32construction of commercial and industrial property, and (4) the percentage increase in the
59.33implicit price deflator for government consumption expenditures and gross investment for
59.34state and local governments as prepared by the United States Department of Commerce
59.35for the most recent 12 month period ending March of the levy year.
60.1    (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy for
60.2the previous year, (2) its threshold levy increase indicating that this increase is calculated
60.3to reflect reasonable growth adjusting for population increases, increased demand from
60.4new business, and inflation, (3) the proposed property tax increase, and (4) the amount the
60.5proposed increases exceeds the threshold increase. The notice must contain a description
60.6of why the jurisdiction needs to raise property taxes above the threshold amount and how
60.7the taxing jurisdiction plans to spend the additional revenue.
60.8EFFECTIVE DATE.This section is effective for taxes levied in calendar year
60.92007 and thereafter.

60.10    Sec. 20. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
60.11to read:
60.12    Subd. 6c. Joint public hearing; nonmetropolitan county, cities, and school
60.13districts. (a) Notwithstanding any other provision of law, the county board may hold a
60.14joint hearing with the governing bodies of all taxing authorities located wholly or partially
60.15within the county that are required to hold a public hearing under this section, excluding
60.16special taxing districts. The primary purpose of the joint hearing is for taxpayer efficiency
60.17by allowing taxpayers to come to a single public hearing to discuss the budgets and
60.18proposed property tax levies of most taxing authorities that impact the taxes on their
60.19property.
60.20    (b) This subdivision applies only to counties located outside the metropolitan area
60.21as defined under section 473.121, subdivision 2. If a city or school district is located
60.22partially within the metropolitan area, that taxing jurisdiction may participate in its
60.23nonmetropolitan county's joint hearing, if it so chooses.
60.24    (c) Upon the adoption of a resolution by the county board to hold a joint public
60.25hearing, the county shall notify each city with a population over 500 and each school
60.26district located wholly or partially within the county of its intention to hold the joint
60.27hearing and ask each of the taxing authorities if it would like to participate. Participation
60.28is voluntary, and participation in the joint hearing is in lieu of the requirement for the
60.29governing body to hold a separate public hearing under subdivision 6. If a participating
60.30city or school district is located in more than one county, the hearing under this subdivision
60.31is in lieu of the requirement to hold a separate public hearing if 75 percent or more
60.32of that city or school district's previous year's net tax capacity is in the county where
60.33the hearing is held.
61.1    (d) The initial joint hearing must be held on the first Thursday in December. The
61.2county may hold an additional joint hearing on another date before December 20 if the
61.3majority of the participating taxing authorities want an additional hearing.
61.4    The county board shall obtain a meeting space to hold the joint hearing, preferably
61.5at a public building such as the court house, school, or community center. The location
61.6shall be as centrally located within the county as possible. The meeting shall generally be
61.7structured in the following general manner:
61.8    (1) the first 30 to 60 minutes must be devoted to discussion of the county's budget
61.9and levy;
61.10    (2) the next 30 to 60 minutes must be devoted to discussion of city's budget and levy,
61.11with each city's discussion held in a separate room, preferably in the same building;
61.12    (3) the next 30 to 60 minutes must be devoted to discussion of the school district's
61.13levy, with each school district's discussion held in a separate room, preferably in the
61.14same building; and
61.15    (4) during the last 30 minutes the governing bodies must reassemble in a joint
61.16meeting to entertain any follow-up questions that have arisen from the separate discussions.
61.17    The county shall attempt to keep the total public hearing to within three hours.
61.18    (e) In lieu of the public advertisement requirement in subdivision 5a, the county shall
61.19have a single advertisement listing the county, each city with a population of over 500, and
61.20each school district participating in the joint public hearing listing. Any taxing authority
61.21participating under this subdivision is exempt from the separate public advertisement
61.22requirement under subdivision 5a. The cost of the joint hearing advertisement shall be
61.23apportioned in the same manner provided in subdivision 4. The notice must be published
61.24not less than two business days nor more than six business days before the hearing. The
61.25newspaper selected must be one of general interest and readership in the community, and
61.26not one of limited subject matter. The advertisement must appear in a newspaper that is
61.27published at least once per week. The advertisement must be in the following form:
61.31The property tax amounts below compare that portion of the current budget levied in
61.32property taxes in the county, cities, and school districts for (year) with the property
61.33taxes the county, cities, and school districts propose to collect in (year) for those taxing
61.34authorities participating in the joint public hearing.

62.1 62.2	Taxing Authority	(Year) Property Taxes	Proposed (Year) Property Taxes	Change (Year) - (Year)
62.3	$.......	$.......	$.......	...%
62.4	$.......	$.......	$.......	...%
62.5	$.......	$.......	$.......	...%

62.7All residents are invited to attend the joint public hearing of the county/cities/school
62.8districts to express your opinions on the proposed amount of (year) property taxes. The
62.9hearing will be held on:
62.12If the discussion cannot be completed, and another hearing is scheduled, a time and place
62.13for that hearing will be announced at this hearing. You are also invited to send your
62.14written comments to the county auditor. If the comments relate to the city or school
62.15district's levy, please identify that on the envelope so the county auditor can direct the
62.16correspondence to the right jurisdiction."
62.17    The formal adoption of the taxing authority's levy must not be made at the joint
62.18public hearing held under this subdivision. The formal adoption must be made at one of
62.19the regularly scheduled meetings of the taxing authority's governing body. However, the
62.20property tax levy amount that is subsequently adopted cannot exceed the amount shown to
62.21taxpayers at the joint public hearing.
62.22EFFECTIVE DATE.This section is effective for hearings held in 2007 and
62.23thereafter.

62.24    Sec. 21. Minnesota Statutes 2006, section 278.05, subdivision 6, is amended to read:
62.25    Subd. 6. Dismissal of petition; exclusion of certain evidence. (a) In cases where
62.26the petitioner contests the valuation of income-producing property, information, including
62.27income and expense figures in the form of (1) year-end financial statements for the
62.28year prior to the assessment date, (2) year-end financial statements for the year of the
62.29assessment date, and (3) rent rolls on the assessment date including tenant name, lease start
62.30and end dates, option terms, base rent, square footage leased and vacant space, verified net
62.31rentable areas in the form of net rentable square footage of the building or buildings, and
62.32anticipated income and expenses in the form of proposed budgets for the year subsequent
62.33to the year of the assessment date, for income-producing property must be provided to
62.34the county assessor no later than 60 days after the applicable filing deadline contained
62.35in section 278.01, subdivision 1 or 4. Failure to provide the information required in this
62.36paragraph shall result in the dismissal of the petition, unless (1) the failure to provide it was
63.1due to the unavailability of the evidence at the time that the information was due, or (2)
63.2the petitioner was not aware of or informed of the requirement to provide the information.
63.3If the petitioner proves that the requirements under clause (2) are met, the petitioner has
63.4an additional 30 days to provide the information from the time the petitioner became
63.5aware of or was informed of the requirement to provide the information, otherwise the
63.6petition shall be dismissed.
63.7    (b) Provided that the information as contained in paragraph (a) is timely submitted to
63.8the county assessor, the county assessor shall furnish the petitioner at least five days before
63.9the hearing under this chapter with the property's appraisal, if any, which will be presented
63.10to the court at the hearing. The petitioner shall furnish to the county assessor at least five
63.11days before the hearing under this chapter with the property's appraisal, if any, which
63.12will be presented to the court at the hearing. An appraisal of the petitioner's property
63.13done by or for the county shall not be admissible as evidence if the county assessor does
63.14not comply with the provisions in this paragraph. The petition shall be dismissed if the
63.15petitioner does not comply with the provisions in this paragraph.

63.16    Sec. 22. Minnesota Statutes 2006, section 279.01, is amended by adding a subdivision
63.17to read:
63.18    Subd. 5. Homestead property; monthly payment option. (a) In the case of class
63.191, 1c, or 2a homestead property as defined in section 273.13, a homeowner may apply
63.20to make payments in eight equal monthly installments on the 15th day of each month
63.21from May through December. A homeowner desiring to utilize this option must apply
63.22to the county by April 15 of the year that the taxes are payable, following procedures
63.23established by the county.
63.24    (b) Each county must establish procedures allowing homeowners the option of
63.25paying the current year's property taxes on a monthly basis. The procedures must address
63.26how homeowners apply to participate in the program, how taxpayers can make payments,
63.27including the possibility of automatic bank withdrawals, how and whether the taxpayer is
63.28notified of each payment due date, whether to require annual applications, how to modify
63.29the property tax settlement process, and any other procedures the county board deems
63.30necessary to implement this subdivision. The proposed procedures must be submitted to
63.31the commissioner of revenue by November 1, 2007. The commissioner must review the
63.32procedures and approve them or notify the county of changes that must be made to the
63.33proposed procedures by January 1, 2008.
63.34    (c) The application procedure must be included in the property tax statement mailing.
63.35    (d) Penalties on unpaid taxes on property under the monthly payment program
63.36must be computed by equating the number of days that any of the monthly payments are
64.1overdue to the penalty for the corresponding number of days after May 15 that a payment
64.2is overdue under subdivision 1.
64.3EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
64.4thereafter.

64.5    Sec. 23. Minnesota Statutes 2006, section 279.37, subdivision 1a, is amended to read:
64.6    Subd. 1a. Class 3a property. (a) The delinquent taxes upon a parcel of property
64.7which was classified class 3a, for the previous year's assessment and had a total market
64.8value of $200,000 $500,000 or less for that same assessment shall be eligible to be
64.9composed into a confession of judgment. Property qualifying under this subdivision
64.10shall be subject to the same provisions as provided in this section except as provided
64.11in paragraphs (b) to (d).
64.12    (b) Current year taxes and penalty due at the time the confession of judgment
64.13is entered must be paid.
64.14    (c) The down payment must include all special assessments due in the current tax
64.15year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties,
64.16and interest accrued against the parcel. The balance remaining is payable in four equal
64.17annual installments.
64.18    (d) The amounts entered in judgment bear interest at the rate provided in section
64.19279.03, subdivision 1a , commencing with the date the judgment is entered. The interest
64.20rate is subject to change each year on the unpaid balance in the manner provided in section
64.21279.03, subdivision 1a .
64.22EFFECTIVE DATE.This section is effective for confessions of judgment entered
64.23July 1, 2007, and thereafter.

64.24    Sec. 24. Minnesota Statutes 2006, section 289A.08, subdivision 13, is amended to read:
64.25    Subd. 13. Long and short forms; local use tax instructions; property tax refund
64.26information. (a) The commissioner shall provide a long form individual income tax
64.27return and may provide a short form individual income tax return. The returns shall be in
64.28a form that is consistent with the provisions of chapter 290, notwithstanding any other
64.29law to the contrary. The nongame wildlife checkoff provided in section 290.431 and the
64.30dependent care credit provided in section 290.067 must be included on the short form.
64.31    (b) The commissioner must provide information on local use taxes in the individual
64.32income tax instruction booklet. The commissioner must provide this information in the
64.33same section of the booklet that provides information on the state use tax.
64.34    (c) The commissioner must refer to the property tax refunds allowed under chapter
64.35290A on the front cover of the individual income tax instruction booklet, as well as
65.1information within the booklet on income eligibility for the homestead and renter refunds,
65.2and maximum refund amounts allowed in the current year.
65.3EFFECTIVE DATE.This section is effective the day following final enactment.

65.4    Sec. 25. Minnesota Statutes 2006, section 289A.40, subdivision 4, is amended to read:
65.5    Subd. 4. Property tax refund claims. A property tax refund claim under chapter
65.6290A is not allowed if the initial claim is filed more than (1) one year after the original
65.7due date for filing the claim for refunds under section 290A.04, subdivision 2h; or (2) two
65.8years after the original due date for filing the claim for refunds under section 290A.04,
65.9subdivisions 2 and 2a.
65.10EFFECTIVE DATE.This section is effective for property taxes payable in 2006
65.11and thereafter and rent paid in 2005 and thereafter.

65.12    Sec. 26. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:
65.13    Subdivision 1. Program qualifications. The qualifications for the senior citizens'
65.14property tax deferral program are as follows:
65.15    (1) the property must be owned and occupied as a homestead by a person 65 years of
65.16age or older. In the case of a married couple, both only one of the spouses must be at least
65.1765 years old at the time the first property tax deferral is granted, regardless of whether the
65.18property is titled in the name of one spouse or both spouses, or titled in another way that
65.19permits the property to have homestead status;
65.20    (2) the total household income of the qualifying homeowners homeowner, or in the
65.21case of a married couple, the qualifying homeowner and spouse, as defined in section
65.22290A.03, subdivision 5 , for the calendar year preceding the year of the initial application
65.23may not exceed $60,000 the maximum household income under section 290A.04,
65.24subdivision 2, for the calendar year preceding the year of the initial application;
65.25    (3) the homestead must have been owned and occupied as the homestead of at
65.26least one of the qualifying homeowners for at least 15 years prior to the year the initial
65.27application is filed;
65.28    (4) there are no state or federal tax liens or judgment liens on the homesteaded
65.29property;
65.30    (5) there are no mortgages or other liens on the property that secure future advances,
65.31except for those subject to credit limits that result in compliance with clause (6); and
65.32    (6) the total unpaid balances of debts secured by mortgages and other liens on the
65.33property, including unpaid and delinquent special assessments and interest and any
65.34delinquent property taxes, penalties, and interest, but not including property taxes payable
66.1during the year, does not exceed 75 percent of the assessor's estimated market value for
66.2the year.
66.3EFFECTIVE DATE.This section is effective for applications filed on or after
66.4July 1, 2007.

66.5    Sec. 27. Minnesota Statutes 2006, section 290B.03, subdivision 2, is amended to read:
66.6    Subd. 2. Qualifying homestead; defined. Qualifying homestead property is defined
66.7as the dwelling occupied as the homeowner's principal residence and so much of the land
66.8surrounding it as is reasonably necessary for use of the dwelling as a home and any other
66.9property used for purposes of a homestead as defined in section 273.13, subdivisions
66.1022 and 23 , but not to exceed one acre. The homestead may be part of a multidwelling
66.11building and the land on which it is built. Property is not qualifying homestead property if
66.12a person or entity other than the applicant or the applicant's spouse holds an interest in the
66.13property as the vendor under a contract for deed or as a remainderperson.
66.14EFFECTIVE DATE.This section is effective for applications submitted on or
66.15after January 1, 2007.

66.16    Sec. 28. Minnesota Statutes 2006, section 290B.04, subdivision 2, is amended to read:
66.17    Subd. 2. Approval; recording. The commissioner shall approve all initial
66.18applications that qualify under this chapter and shall notify qualifying homeowners on or
66.19before December 1. The commissioner shall also notify qualifying homeowners of the
66.20maximum household income under section 290A.04, subdivision 2, for the calendar year
66.21preceding the year of the qualifying homeowner's initial application. The commissioner
66.22may investigate the facts or require confirmation in regard to an application. The
66.23commissioner shall record or file a notice of qualification for deferral, including the names
66.24of the qualifying homeowners and a legal description of the property, in the office of the
66.25county recorder, or registrar of titles, whichever is applicable, in the county where the
66.26qualifying property is located. The notice must state that it serves as a notice of lien and
66.27that it includes deferrals under this section for future years. The homeowner shall pay the
66.28recording or filing fees for the notice, which, notwithstanding section 357.18, shall be paid
66.29by the homeowner at the time of satisfaction of the lien.
66.30EFFECTIVE DATE.This section is effective for applications filed on or after
66.31July 1, 2007.

66.32    Sec. 29. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:
66.33    Subd. 3. Excess-income certification by taxpayer. A taxpayer whose initial
66.34application has been approved under subdivision 2 shall notify the commissioner of
67.1revenue in writing by July 1 if the taxpayer's household income for the preceding
67.2calendar year exceeded $60,000 the maximum household income under section 290A.04,
67.3subdivision 2, for the calendar year preceding the initial year of the application that was
67.4certified to the taxpayer by the commissioner under section 290B.04, subdivision 2. The
67.5certification must state the homeowner's total household income for the previous calendar
67.6year. If the commissioner determines that the taxpayer's household income exceeded the
67.7maximum household income under section 290A.04, subdivision 2, for the preceding
67.8calendar year, the commissioner must notify the individual that the individual has income
67.9in excess of the maximum allowed. No property taxes may be deferred under this chapter
67.10in any year following the year in which a program participant filed or should have filed
67.11an excess-income certification under this subdivision showing income in excess of the
67.12maximum allowed, unless the participant has filed a resumption of eligibility certification
67.13as described in subdivision 4.
67.14EFFECTIVE DATE.This section is effective for applications filed on or after
67.15July 1, 2007.

67.16    Sec. 30. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:
67.17    Subd. 4. Resumption of eligibility certification by taxpayer. A taxpayer who
67.18has previously filed an excess-income certification under subdivision 3 may resume
67.19program participation if the taxpayer's household income for a subsequent year is
67.20$60,000 or less than the maximum household income under section 290A.04, subdivision
67.212. If the taxpayer chooses to resume program participation, the taxpayer must notify
67.22the commissioner of revenue in writing by July 1 of the year following a calendar
67.23year in which the taxpayer's household income is $60,000 or less than the maximum
67.24household income under section 290A.04, subdivision 2. The certification must state
67.25the taxpayer's total household income for the previous calendar year. Once a taxpayer
67.26resumes participation in the program under this subdivision, participation will continue
67.27until the taxpayer files a subsequent excess-income certification under subdivision 3 or
67.28until participation is terminated under section 290B.08, subdivision 1.
67.29EFFECTIVE DATE.This section is effective for applications filed on or after
67.30July 1, 2007.

67.31    Sec. 31. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:
67.32    Subdivision 1. Determination by commissioner. The commissioner shall
67.33determine each qualifying homeowner's "annual maximum property tax amount"
67.34following approval of the homeowner's initial application and following the receipt of a
67.35resumption of eligibility certification. The "annual maximum property tax amount" equals
68.1three percent of the homeowner's total household income for the year preceding either the
68.2initial application or the resumption of eligibility certification, whichever is applicable.
68.3Following approval of the initial application, the commissioner shall determine the
68.4qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative
68.5to the appropriate assessment year for any homeowner whose total household income
68.6for the previous year exceeds $60,000 the maximum household income under section
68.7290A.04, subdivision 2. No tax shall be deferred in any year in which the homeowner
68.8does not meet the program qualifications in section 290B.03. The maximum allowable
68.9total deferral is equal to 75 percent of the assessor's estimated market value for the
68.10year, less the balance of any mortgage loans and other amounts secured by liens against
68.11the property at the time of application, including any unpaid and delinquent special
68.12assessments and interest and any delinquent property taxes, penalties, and interest, but not
68.13including property taxes payable during the year.
68.14EFFECTIVE DATE.This section is effective for applications received on or after
68.15July 1, 2007.

68.16    Sec. 32. Minnesota Statutes 2006, section 290B.07, is amended to read:
68.17290B.07 LIEN; DEFERRED PORTION.
68.18    (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
68.19or special assessments and interest deferred under this chapter is deemed a loan from the
68.20state to the program participant. The commissioner must compute the interest as provided
68.21in section 270C.40, subdivision 5, but not to exceed five percent, and maintain records of
68.22the total deferred amount and interest for each participant. Interest shall accrue beginning
68.23September 1 of the payable year for which the taxes are deferred, provided that no interest
68.24shall be charged on (i) deferred property tax amounts on applications filed on or after
68.25July 1, 2007, or (ii) deferred property taxes beginning with taxes payable in 2008 on
68.26applications filed prior to July 1, 2007. Any deferral made under this chapter shall not
68.27be construed as delinquent property taxes.
68.28    The lien created under section 272.31 continues to secure payment by the taxpayer,
68.29or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
68.30respect to all years for which amounts are deferred. The lien for deferred taxes and interest
68.31has the same priority as any other lien under section 272.31, except that liens, including
68.32mortgages, recorded or filed prior to the recording or filing of the notice under section
68.33290B.04, subdivision 2 , have priority over the lien for deferred taxes and interest. A
68.34seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser
68.35or an assignee of the purchaser, has priority over deferred taxes and interest on deferred
69.1taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred
69.2taxes and interest for future years has the same priority as the lien for deferred taxes and
69.3interest for the first year, which is always higher in priority than any mortgages or other
69.4liens filed, recorded, or created after the notice recorded or filed under section 290B.04,
69.5subdivision 2 . The county treasurer or auditor shall maintain records of the deferred
69.6portion and shall list the amount of deferred taxes for the year and the cumulative deferral
69.7and interest for all previous years as a lien against the property. In any certification of
69.8unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes
69.9payable in the current year, deferred taxes and interest, and delinquent taxes. Payment
69.10of the deferred portion becomes due and owing at the time specified in section 290B.08.
69.11Upon receipt of the payment, the commissioner shall issue a receipt for it to the person
69.12making the payment upon request and shall notify the auditor of the county in which the
69.13parcel is located, within ten days, identifying the parcel to which the payment applies.
69.14Upon receipt by the commissioner of revenue of collected funds in the amount of the
69.15deferral, the state's loan to the program participant is deemed paid in full.
69.16    (b) If property for which taxes have been deferred under this chapter forfeits
69.17under chapter 281 for nonpayment of a nondeferred property tax amount, or because
69.18of nonpayment of amounts previously deferred following a termination under section
69.19290B.08 , the lien for the taxes deferred under this chapter, plus interest and costs, shall be
69.20canceled by the county auditor as provided in section 282.07. However, notwithstanding
69.21any other law to the contrary, any proceeds from a subsequent sale of the property under
69.22chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale
69.23fund for any direct costs of selling the property or any costs directly related to preparing
69.24the property for sale, and then to reimburse the state for the amount of the canceled lien.
69.25Within 90 days of the receipt of any sale proceed to which the state is entitled under these
69.26provisions, the county auditor must pay those funds to the commissioner of revenue by
69.27warrant for deposit in the general fund. No other deposit, use, distribution, or release of
69.28gross sale proceeds or receipts may be made by the county until payments sufficient
69.29to fully reimburse the state for the canceled lien amount have been transmitted to the
69.30commissioner.
69.31EFFECTIVE DATE.This section is effective July 1, 2007.

69.32    Sec. 33. [290D.01] CITATION.
69.33    This program shall be named the "seasonal recreational property tax deferral
69.34program."
69.35EFFECTIVE DATE.This section is effective July 1, 2007.

70.1    Sec. 34. [290D.02] TERMS.
70.2    Subdivision 1. Terms. For purposes of sections 290D.01 to 290D.08, the terms
70.3defined in this section have the meanings given them.
70.4    Subd. 2. Primary property owner. "Primary property owner" means a person who
70.5(1) has been the owner, or one of the owners, of the eligible property for at least 15 years
70.6prior to the year the application is filed under section 290D.04; and (2) applies for the
70.7deferral of property taxes under section 290D.04.
70.8    Subd. 3. Secondary property owner. "Secondary property owner" means any
70.9person, other than the primary property owner, who has been an owner of the eligible
70.10property for at least 15 years prior to the year the initial application is filed for deferral
70.11of property taxes under section 290D.04.
70.12    Subd. 4. Eligible property. "Eligible property" means a parcel of property or
70.13contiguous parcels of property under the same ownership classified as noncommercial
70.14seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.
70.15    Subd. 5. Base property tax amount. "Base property tax amount" means the total
70.16property taxes levied by all taxing jurisdictions, including special assessments, on the
70.17eligible property in the year prior to the year that the initial application is approved under
70.18section 290D.04 and payable in the year of the application.
70.19    Subd. 6. Special assessments. "Special assessments" mean any assessment, fee, or
70.20other charge that may be made by law, and that appears on the property tax statement for
70.21the property for collection under the laws applicable to the enforcement of real estate taxes.
70.22    Subd. 7. Commissioner. "Commissioner" means the commissioner of revenue.
70.23EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
70.24and thereafter.

70.25    Sec. 35. [290D.03] QUALIFICATIONS FOR DEFERRAL.
70.26    In order for an eligible property to qualify for treatment under this program:
70.27    (1) the eligible property must have been owned solely by the primary property owner,
70.28or jointly with others, for at least 15 years prior to the year the initial application is filed;
70.29    (2) there must be no state or federal tax liens or judgment liens on the eligible
70.30property;
70.31    (3) there must be no mortgages or other liens on the eligible property that secure
70.32future advances, except for those subject to credit limits that result in compliance with
70.33clause (4); and
71.1    (4) the total unpaid balances of debts secured by mortgages and other liens on the
71.2eligible property, including unpaid and delinquent special assessments and interest and
71.3any delinquent property taxes, penalties, and interest, but not including property taxes
71.4payable during the year, must not exceed 60 percent of the assessor's estimated market
71.5value for the current assessment year.
71.6EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
71.7and thereafter.

71.8    Sec. 36. [290D.04] APPLICATION FOR DEFERRAL.
71.9    Subdivision 1. Initial application. (a) A primary owner of a property meeting
71.10the qualifications under section 290D.03 may apply to the commissioner for deferral
71.11of taxes on the eligible property. Applications are due on or before July 1 for deferral
71.12of any taxes payable in the following year. The application, which must be prescribed
71.13by the commissioner, shall include the following items and any other information the
71.14commissioner deems necessary:
71.15    (1) the name, address, and Social Security number of the primary property owner
71.16and secondary property owners, if any;
71.17    (2) a copy of the property tax statement for the current taxes payable year for the
71.18eligible property;
71.19    (3) the initial year of ownership of the primary property owner and any second
71.20property owners of the eligible property;
71.21    (4) information on any mortgage loans or other amounts secured by mortgages or
71.22other liens against the eligible property, for which purpose the commissioner may require
71.23the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the
71.24balance owing on the mortgage loan provided by the mortgage holder. The commissioner
71.25may require the appropriate documents in connection with obtaining and confirming
71.26information on unpaid amounts secured by other liens; and
71.27    (5) the signatures of the primary property owner and all other owners, if any, stating
71.28that each owner agrees to enroll the eligible property in the program to defer property
71.29taxes under this chapter.
71.30    The application must state that program participation is voluntary. The application
71.31must also state that program participation includes authorization for the annual deferred
71.32amount. The deferred property tax calculated by the county and the cumulative deferred
71.33property tax amount is public data.
71.34    (b) As part of the initial application process, if the property is abstract property, the
71.35commissioner may require the applicant to obtain at the applicant's cost a report prepared
72.1by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens,
72.2judgments, and state and federal tax lien notices which were recorded on or after the date
72.3of that last deed with respect to the eligible property or to the applicant.
72.4    The certificate or report need not include references to any documents filed or
72.5recorded more than 40 years prior to the date of the certification or report. The certification
72.6or report must be as of a date not more than 30 days prior to submission of the application
72.7under this section.
72.8    The commissioner may also require the county recorder or county registrar of the
72.9county where the eligible property is located to provide copies of recorded documents
72.10related to the applicant of the eligible property, for which the recorder or registrar shall
72.11not charge a fee. The commissioner may use any information available to determine or
72.12verify eligibility under this section.
72.13    Subd. 2. Approval; recording. The commissioner shall approve all initial
72.14applications that qualify under this chapter and shall notify the primary property owner on
72.15or before December 1. The commissioner may investigate the facts or require confirmation
72.16in regard to an application. The commissioner shall record or file a notice of qualification
72.17for deferral, including the names of the primary and any secondary property owners and a
72.18legal description of the eligible property, in the office of the county recorder, or registrar of
72.19titles, whichever is applicable, in the county where the eligible property is located. The
72.20notice must state that it serves as a notice of lien and that it includes deferrals under this
72.21section for future years. The primary property owner shall pay the recording or filing fees
72.22for the notice, which, notwithstanding section 357.18, shall be paid by that owner at the
72.23time of satisfaction of the lien.
72.24    Subd. 3. Penalty for failure; investigations. (a) The commissioner shall assess
72.25a penalty equal to 20 percent of the property taxes improperly deferred in the case of a
72.26false application. The commissioner shall assess a penalty equal to 50 percent of the
72.27property taxes improperly deferred if the taxpayer knowingly filed a false application. The
72.28commissioner shall assess penalties under this section through the issuance of an order
72.29under the provisions of chapter 270C. Persons affected by a commissioner's order issued
72.30under this section may appeal as provided in chapter 270C.
72.31    (b) The commissioner may conduct investigations related to initial applications
72.32required under this chapter within the period ending 3-1/2 years from the due date of
72.33the application.
72.34    Subd. 4. Annual certification to commissioner. Annually on or before July 1,
72.35the primary property owner must certify to the commissioner that the person continues
73.1to qualify as a primary property owner. If the primary owner has died or has transferred
73.2the property in the preceding year, a certification may be filed by the primary owner's
73.3spouse, or by one of the secondary owners, provided that the person is currently an
73.4owner of the property. In this case, the primary owner's spouse or the secondary owner
73.5shall be considered the primary owner from that point forward. If neither the primary
73.6owner, the primary owner's spouse, or a secondary owner is eligible to file the required
73.7annual certification for the property, the property's participation in the program shall be
73.8terminated, and the procedures in section 290D.07 apply.
73.9    Subd. 5. Annual notice to primary property owner. Annually, on or before
73.10September 1, the commissioner shall notify each primary property owner, in writing, of
73.11the total cumulative deferred taxes and accrued interest on the qualifying property as of
73.12that date.
73.13EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
73.14and thereafter.

73.15    Sec. 37. [290D.05] DEFERRED PROPERTY TAX AMOUNT.
73.16    Subdivision 1. Calculation of deferred property tax amount. Each year after
73.17the county auditor has determined the final property tax rates under section 275.08, the
73.18"deferred property tax amount" must be calculated on each eligible property. The deferred
73.19property tax amount is equal to 50 percent of the amount of the difference between (1) the
73.20total amount of property taxes and special assessments levied upon the eligible property
73.21for the current year by all taxing jurisdictions and (2) the eligible property's base property
73.22tax amount. Any tax attributable to new improvements made to the eligible property after
73.23the initial application has been approved under section 290D.04, subdivision 2, must be
73.24excluded in determining the deferred property tax amount. The eligible property's total
73.25current year's tax less the deferred property tax amount for the current year must be listed
73.26on the property tax statement and is the amount due to the county under chapter 276.
73.27Reference that the property is enrolled in the seasonal recreational property tax deferral
73.28program under this chapter and a state lien has been recorded must be clearly printed on
73.29the statement.
73.30    Subd. 2. Certification to commissioner. The county auditor shall annually, on or
73.31before April 15, certify to the commissioner the property tax deferral amounts determined
73.32under this section for each eligible property in the county. The commissioner shall
73.33prescribe the information that is necessary to identify the eligible properties.
73.34    Subd. 3. Limitation on total amount of deferred taxes. The total amount of
73.35deferred taxes and interest on a property, when added to (1) the balance owed on any
74.1mortgages on the property at the time of initial application; (2) other amounts secured by
74.2liens on the property at the time of the initial application; and (3) any unpaid and delinquent
74.3special assessments and interest and any delinquent property taxes, penalties, and interest,
74.4but not including property taxes payable during the year, must not exceed 60 percent of
74.5the assessor's estimated market value of the property for the current assessment year.
74.6EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
74.7and thereafter.

74.8    Sec. 38. [290D.06] LIEN; DEFERRED PORTION.
74.9    (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
74.10or special assessments and interest, deferred under this chapter is deemed a loan from the
74.11state to the program participant. The commissioner shall compute the interest as provided
74.12in section 270C.40, subdivision 5, but not to exceed two percent over the maximum
74.13interest rate provided in section 290B.07, paragraph (a), and maintain records of the total
74.14deferred amount and interest for each participant. Interest accrues beginning September 1
74.15of the payable year for which the taxes are deferred. Any deferral made under this chapter
74.16must not be construed as delinquent property taxes.
74.17    The lien created under section 272.31 continues to secure payment by the taxpayer,
74.18or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
74.19respect to all years for which amounts are deferred. The lien for deferred taxes and interest
74.20has the same priority as any other lien under section 272.31, except that liens, including
74.21mortgages, recorded or filed prior to the recording or filing of the notice under section
74.22290D.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
74.23seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an
74.24assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes,
74.25regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes
74.26and interest for future years has the same priority as the lien for deferred taxes and interest
74.27for the first year, which is always higher in priority than any mortgages or other liens filed,
74.28recorded, or created after the notice recorded or filed under section 290D.04, subdivision
74.292 . The county treasurer or auditor shall maintain records of the deferred portion and shall
74.30list the amount of deferred taxes for the year and the cumulative deferral and interest for
74.31all previous years as a lien against the eligible property. In any certification of unpaid
74.32taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in
74.33the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred
74.34portion becomes due and owing at the time specified in section 290D.07. Upon receipt of
74.35the payment, the commissioner shall issue a receipt to the person making the payment
75.1upon request and shall notify the auditor of the county in which the parcel is located,
75.2within ten days, identifying the parcel to which the payment applies. Upon receipt by the
75.3commissioner of collected funds in the amount of the deferral, the state's loan to the
75.4program participant is deemed paid in full.
75.5    (b) If eligible property for which taxes have been deferred under this chapter forfeits
75.6under chapter 281 for nonpayment of a nondeferred property tax amount, or because
75.7of nonpayment of amounts previously deferred following a termination under section
75.8290D.07, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
75.9canceled by the county auditor as provided in section 282.07. However, notwithstanding
75.10any other law to the contrary, any proceeds from a subsequent sale of the eligible property
75.11under chapter 282 or another law, must be used to first reimburse the county's forfeited
75.12tax sale fund for any direct costs of selling the eligible property or any costs directly
75.13related to preparing the eligible property for sale, and then to reimburse the state for
75.14the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to
75.15which the state is entitled under these provisions, the county auditor must pay those funds
75.16to the commissioner by warrant for deposit in the general fund. No other deposit, use,
75.17distribution, or release of gross sale proceeds or receipts may be made by the county until
75.18payments sufficient to fully reimburse the state for the canceled lien amount have been
75.19transmitted to the commissioner.
75.20EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
75.21and thereafter.

75.22    Sec. 39. [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF
75.23DEFERRED TAXES.
75.24    Subdivision 1. Termination. (a) The deferral of taxes granted under this chapter
75.25terminates when one of the following occurs:
75.26    (1) the eligible property is sold or transferred to someone other than the primary
75.27owner's spouse or a secondary owner;
75.28    (2) the death of the primary owner, or in the case of a married couple, after the
75.29death of both spouses, provided that there is not a secondary owner eligible to become
75.30the primary owner;
75.31    (3) the primary property owner notifies the commissioner, in writing, that all owners,
75.32including any secondary property owners, desire to discontinue the deferral; or
75.33    (4) the eligible property no longer qualifies under section 290D.03.
76.1    (b) An eligible property is not terminated from the program because no deferred
76.2property tax amount is determined for any given year after the eligible property's initial
76.3enrollment into the program.
76.4    (c) An eligible property is not terminated from the program if the eligible property
76.5subsequently becomes the homestead of one or more of the property owners and the
76.6property and the owners qualify for, and are immediately enrolled in, the senior deferral
76.7program under chapter 290B.
76.8    Subd. 2. Payment upon termination. Upon the termination of the deferral under
76.9subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments
76.10and interest, plus the recording or filing fees under this subdivision and section 290D.04,
76.11subdivision 2 , becomes due and payable to the commissioner within 90 days of termination
76.12of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2),
76.13and within one year of termination of the deferral for terminations under subdivision 1,
76.14paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely
76.15paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor
76.16of the county in which the parcel is located, identifying the parcel to which the payment
76.17applies and shall remit the recording or filing fees under this subdivision and section
76.18290D.04, subdivision 2, to the auditor. A notice of termination of deferral, containing the
76.19legal description and the recording or filing data for the notice of qualification for deferral
76.20under section 290D.04, subdivision 2, shall be prepared and recorded or filed by the
76.21county auditor in the same office in which the notice of qualification for deferral under
76.22section 290D.04, subdivision 2, was recorded or filed, and the county auditor shall mail a
76.23copy of the notice of termination to the property owner. The property owner shall pay the
76.24recording or filing fees. Upon recording or filing of the notice of termination of deferral,
76.25the notice of qualification for deferral under section 290D.04, subdivision 2, and the lien
76.26created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien,
76.27forfeiture, and other rules for the collection of ad valorem property taxes apply.
76.28EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
76.29and thereafter.

76.30    Sec. 40. [290D.08] STATE REIMBURSEMENT.
76.31    Subdivision 1. Determination; payment. The county auditor shall determine the
76.32total current year's deferred amount of property tax under this chapter in the county, and
76.33submit those amounts as part of the abstracts of tax lists submitted by the county auditors
76.34under section 275.29. The commissioner may make changes in the abstracts of tax lists as
77.1deemed necessary. The commissioner, after such review, shall pay the deferred amount of
77.2property tax to each county treasurer on or before August 31.
77.3    The county treasurer shall distribute as part of the October settlement the funds
77.4received as if they had been collected as part of the property tax.
77.5    Subd. 2. Appropriation. An amount sufficient to pay the total amount of property
77.6tax determined under subdivision 1, plus any amounts paid under section 290D.04,
77.7subdivision 4 , is annually appropriated from the general fund to the commissioner.
77.8EFFECTIVE DATE.This section is effective for applications filed July 1, 2008,
77.9and thereafter.

77.10    Sec. 41. Minnesota Statutes 2006, section 298.75, is amended by adding a subdivision
77.11to read:
77.12    Subd. 11. Tax may be imposed; Ottertail County. (a) If Ottertail County does not
77.13impose a tax under this section and approves imposition of the tax under this subdivision,
77.14the town of Scambler in Ottertail County may impose the aggregate materials tax under
77.15this section.
77.16    (b) For purposes of exercising the powers contained in this section, the "town" is
77.17deemed to be the "county."
77.18    (c) All provisions in this section apply to the town of Scambler, except that in lieu of
77.19the tax proceeds under subdivision 7, all proceeds of the tax must be retained by the town.
77.20    (d) If Ottertail County imposes an aggregate materials tax under this section, the
77.21tax imposed by the town of Scambler under this subdivision is repealed on the effective
77.22date of the Ottertail County tax.
77.23EFFECTIVE DATE.This section is effective the day after the governing body
77.24of the town of Scambler and its chief clerical officer comply with section 645.021,
77.25subdivisions 2 and 3.

77.26    Sec. 42. Minnesota Statutes 2006, section 435.193, is amended to read:
77.27435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS OR,
77.28DISABLED, OR MILITARY PERSONS.
77.29    (a) Notwithstanding the provisions of any law to the contrary, any county, statutory
77.30or home rule charter city, or town, making a special assessment may, at its discretion, defer
77.31the payment of that assessment for any homestead property:
77.32    (1) owned by a person 65 years of age or older or retired by virtue of a permanent
77.33and total disability for whom it would be a hardship to make the payments; or
78.1    (2) owned by a person who is a member of the Minnesota National Guard or other
78.2military reserves who is ordered into active military service, as defined in section 190.05,
78.3subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a
78.4hardship to make the payments.
78.5    (b) Any county, statutory or home rule charter city, or town electing to defer
78.6special assessments shall adopt an ordinance or resolution establishing standards and
78.7guidelines for determining the existence of a hardship and for determining the existence of
78.8a disability, but nothing herein shall be construed to prohibit the determination of hardship
78.9on the basis of exceptional and unusual circumstances not covered by the standards and
78.10guidelines where the determination is made in a nondiscriminatory manner and does not
78.11give the applicant an unreasonable preference or advantage over other applicants.
78.12EFFECTIVE DATE.This section is effective the day following final enactment,
78.13and applies to any special assessment for which payment is due on or after that date.

78.14    Sec. 43. Minnesota Statutes 2006, section 469.1813, subdivision 1a, is amended to
78.15read:
78.16    Subd. 1a. Use of term. (a) As used in this section and sections 469.1814 and
78.17469.1815 , "abatement" includes a deferral of taxes with abatement of interest and penalties
78.18unless the context indicates otherwise. The abatement may include delinquent taxes,
78.19interest, and penalties.
78.20    (b) Computation of duration limits under this section must include each taxes
78.21payable year for which delinquent taxes are abated.
78.22EFFECTIVE DATE.This section is effective for abatements granted after
78.23December 31, 2006.

78.24    Sec. 44. Minnesota Statutes 2006, section 473F.01, subdivision 2, is amended to read:
78.25    Subd. 2. Use of proceeds. Except as provided in section 473F.08, subdivision 3a,
78.26The proceeds from the areawide tax imposed under this chapter must be used by a local
78.27governmental unit in the same manner and for the same purposes as the proceeds from
78.28other ad valorem taxes levied by the local governmental unit.
78.29EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
78.30thereafter.

78.31    Sec. 45. Minnesota Statutes 2006, section 473F.08, subdivision 5, is amended to read:
78.32    Subd. 5. Areawide tax rate. On or before August 25 of each year, the county auditor
78.33shall certify to the administrative auditor that portion of the levy of each governmental
78.34unit determined under subdivisions 3, clause (a), 3a, and 3b. The administrative auditor
79.1shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
79.2such levies from the areawide net tax capacity. On or before September 1 of each year, the
79.3administrative auditor shall certify the areawide tax rate to each of the county auditors.
79.4EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
79.5thereafter.

79.6    Sec. 46. Minnesota Statutes 2006, section 473F.08, subdivision 7a, is amended to read:
79.7    Subd. 7a. Certification of values; payment. The administrative auditor shall
79.8determine for each county the difference between the total levy on distribution value
79.9pursuant to subdivisions 3, clause (a), 3a, and 3b, within the county and the total tax on
79.10contribution value pursuant to subdivision 6, within the county. On or before May 16 of
79.11each year, the administrative auditor shall certify the differences so determined to each
79.12county auditor. In addition, the administrative auditor shall certify to those county auditors
79.13for whose county the total tax on contribution value exceeds the total levy on distribution
79.14value the settlement the county is to make to the other counties of the excess of the total tax
79.15on contribution value over the total levy on distribution value in the county. On or before
79.16June 15 and November 15 of each year, each county treasurer in a county having a total tax
79.17on contribution value in excess of the total levy on distribution value shall pay one-half of
79.18the excess to the other counties in accordance with the administrative auditors certification.
79.19EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
79.20thereafter.

79.21    Sec. 47. FISCAL DISPARITIES STUDY.
79.22    Subdivision 1. Study required. The commissioner of revenue must conduct a study
79.23of the metropolitan revenue distribution program contained in Minnesota Statutes, chapter
79.24473F, commonly known as the fiscal disparities program. On or before February 1, 2008,
79.25the commissioner shall make a report to the chairs of the house and senate tax committees
79.26consisting of the findings of the study and any recommendations resulting from the study.
79.27    The study shall consider to what extent the program is meeting the following goals,
79.28and what changes could be made to the program in the furtherance of meeting those goals:
79.29    (1) reducing the extent to which the property tax encourages development patterns
79.30that do not make cost-effective use of public infrastructure or impose other high public
79.31costs;
79.32    (2) ensuring that the benefits of economic growth of the region are shared throughout
79.33the region, especially for growth that results from state and/or regional decisions;
79.34    (3) improving the ability of each jurisdiction within the region to deliver services at
79.35a level commensurate with its tax effort;
80.1    (4) compensating jurisdictions containing properties that provide regional benefits
80.2for the costs those properties impose on their host jurisdictions in excess of their tax
80.3payments;
80.4    (5) promoting a fair distribution of property tax burdens across jurisdictions of
80.5the region; and
80.6    (6) reducing the economic losses that result from competition among communities
80.7for commercial-industrial tax base.
80.8    Subd. 2. Appropriation. $150,000 is appropriated to the commissioner of revenue
80.9from the general fund in fiscal year 2008 to conduct the study required under subdivision 1.
80.10EFFECTIVE DATE.This section is effective July 1, 2007.

80.11    Sec. 48. IMPROVING PUBLIC AWARENESS AND PARTICIPATION IN
80.12PROPERTY TAX RELIEF PROGRAMS.
80.13    The commissioner of revenue, in consultation with county officials, shall undertake
80.14to improve the public's awareness of and participation in property tax refund programs,
80.15including the regular program for homeowners and renters and the additional property
80.16tax refund program, the senior citizen's property tax deferral program, and the seasonal
80.17recreational property tax deferral program.
80.18    The commissioner must consider options for improving public awareness, including,
80.19but not limited to:
80.20    (i) direct mailings to homeowners;
80.21    (ii) an insert in the property tax statement;
80.22    (iii) more prominent and direct references to the programs on the property tax
80.23statement;
80.24    (iv) notification on the property tax statement envelopes or folders;
80.25    (v) public service announcements, including print, broadcast, and internet; and
80.26    (vi) information and handouts at the truth in taxation hearings.
80.27EFFECTIVE DATE.This section is effective the day following final enactment.

80.28    Sec. 49. TRUTH IN TAXATION PROGRAM; COSTS AND PARTICIPATION
80.29STUDY.
80.30    The commissioner of revenue shall prepare a study of the costs of the truth in
80.31taxation program under Minnesota Statutes, section 275.065, and the level of taxpayer
80.32participation in the hearings required under Minnesota Statutes, section 275.065,
80.33subdivision 6. In determining the costs, the commissioner shall ascertain the costs of
80.34the preparation and mailing of the notice under Minnesota Statutes, section 275.065,
81.1subdivision 3, the advertisement under Minnesota Statutes, section 275.065, subdivision
81.25, and any costs associated with the hearings required under Minnesota Statutes, section
81.3275.065, subdivision 6. The report must also make recommendations for ways to increase
81.4taxpayer participation in the local government budget process, including but not limited to
81.5the truth-in-taxation process. The report must be delivered by January 15, 2008, to the
81.6legislature as provided for in Minnesota Statutes, section 3.195. The report must also be
81.7provided to the chairs of the senate and house of representatives committees and divisions
81.8with jurisdiction over property taxes.
81.9EFFECTIVE DATE.This section is effective the day following final enactment.

81.10    Sec. 50. REPEALER.
81.11Minnesota Statutes 2006, section 473F.08, subdivision 3a, is repealed.
81.12EFFECTIVE DATE.This section is effective for taxes payable in 2008 and
81.13thereafter.


81.16    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to
81.17read:
81.18    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
81.19impose a general sales tax if permitted by special law enacted prior to January 1, 2008 or
81.20if the political subdivision enacted and imposed the tax before the effective date of section
81.21477A.016 and its predecessor provision.
81.22    (b) This section governs the imposition of a general sales tax by the political
81.23subdivision. The provisions of this section preempt the provisions of any special law:
81.24    (1) enacted before June 2, 1997, or
81.25    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
81.26provision from this section's rules by reference.
81.27    (c) This section does not apply to or preempt a sales tax on motor vehicles or a
81.28special excise tax on motor vehicles.
81.29    (d) No political subdivision may use its funds to advertise, promote, or hold a
81.30referendum to support imposing a general sales tax unless authorized by a special law
81.31enacted prior to January 1, 2008.
81.32    (e) No political subdivision may seek the authority to impose a general sales tax
81.33after January 1, 2008.
81.34EFFECTIVE DATE.This section is effective the day following final enactment.

82.1    Sec. 2. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
82.2chapter 291, article 8, section 22, and Laws 1998, chapter 389, article 8, section 25, and
82.3Laws 2003, First Special Session chapter 21, article 8, section 11, is amended to read:
82.4    Subd. 2. Notwithstanding Minnesota Statutes, Section 477A.016, or any other law,
82.5ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
82.6impose an additional sales tax of up to one and one-half two and one-quarter percent on
82.7sales transactions which are described in Minnesota Statutes 2000, Section 297A.01,
82.8Subdivision 3, Clause (c). When the city council determines that the taxes imposed
82.9under this subdivision and under Laws 1998, chapter 389, article 8, section 26 at a rate
82.10of one-half of one percent have produced revenue sufficient to pay (1) the debt service
82.11on bonds in a principal amount of $8,000,000 issued for capital improvements to the
82.12Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
82.13originally issued in the principal amount of $4,970,000 to finance capital improvements
82.14to the Great Lakes Aquarium since the imposition of the taxes at the rate of one and
82.15one-half percent, the rate of the tax under this subdivision is reduced to by one-half of
82.16one percent. The imposition of this tax shall not be subject to voter referendum under
82.17either state law or city charter provisions. When the city council determines that the taxes
82.18imposed under this subdivision at a rate of three-quarters of one percent and other sources
82.19of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
82.20of $37,931,000 plus issuance and discount costs, issued for capital improvements at the
82.21Duluth Entertainment Convention Center, which include a new arena, the rate of tax under
82.22this subdivision shall be reduced by three-quarters of one percent.
82.23EFFECTIVE DATE.This section is effective the day after the governing body of
82.24the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
82.25645.021, subdivisions 2 and 3.

82.26    Sec. 3. Laws 2005, First Special Session chapter 3, article 5, section 39, is amended to
82.27read:
82.28    Sec. 39. CITY OF BEMIDJI.
82.29    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
82.30section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
82.31approval of the city voters at the general election held on November 5, 2002, and at the
82.32general election held November 7, 2006, the city of Bemidji may impose by ordinance
82.33a sales and use tax of one-half of one percent for the purposes specified in subdivision
82.342. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
82.35administration, collection, and enforcement of the tax authorized under this subdivision.
83.1    Subd. 2. Use of revenues. Revenues received from the tax authorized by
83.2subdivision 1 must be used for the cost of collecting and administering the tax and to pay
83.3for the projects listed in this subdivision:
83.4    (1) To pay all or part of the capital or administrative costs of the acquisition,
83.5construction, and improvement of parks and trails within the city, as provided for in the
83.6city of Bemidji's parks, open space, and trail system plan, adopted by the Bemidji City
83.7Council on November 21, 2001. Authorized expenses include, but are not limited to,
83.8acquiring property, paying construction expenses related to the development of these
83.9facilities and improvements, and securing and paying debt service on bonds or other
83.10obligations issued to finance acquisition, construction, improvement, or development of
83.11parks and trails within the city of Bemidji.
83.12    (2) To pay all or part of the city's share of costs of up to $50,000,000 plus any
83.13associated bond costs, for acquisition, design, and construction of a regional event center.
83.14Authorized expenses include, but are not limited to, acquiring property, paying demolition
83.15and construction expenses, improving associated infrastructure, and purchasing furniture,
83.16fixtures, and equipment for the regional event center, and securing and paying debt service
83.17on bonds or other obligations issued to finance the regional event center project.
83.18    Subd. 3. Bonds. (a) Pursuant to the approval of the city voters at the general
83.19election held on November 5, 2002, the city of Bemidji may issue, without an additional
83.20election, general obligation bonds of the city in an amount not to exceed $9,826,000 to
83.21pay capital and administrative expenses for the acquisition, construction, improvement,
83.22and development of parks and trails as specified in subdivision 2. The debt represented by
83.23the bonds must not be included in computing any debt limitations applicable to the city,
83.24and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal
83.25of any interest on the bonds must not be subject to any levy limitations or be included in
83.26computing or applying any levy limitation applicable to the city.
83.27    (b) Pursuant to the approval of the city voters at the general election held on
83.28November 7, 2006, the city of Bemidji may issue, without an additional election, general
83.29obligation bonds of the city in an amount not to exceed $50,000,000 to pay capital and
83.30administrative expenses for the acquisition, construction, improvement, and development
83.31of the regional event center specified in subdivision 2. The debt represented by the bonds
83.32must not be included in computing any debt limitations applicable to the city, and the levy
83.33of taxes required by Minnesota Statutes, section 475.61, to pay the principal of any interest
83.34on the bonds must not be subject to any levy limitations or be included in computing or
83.35applying any levy limitation applicable to the city.
84.1    Subd. 4. Termination of tax. The tax imposed under subdivision 1 expires
84.2when the Bemidji City Council determines that the amount described in subdivision 3,
84.3paragraph (a), has been received from the tax to finance the capital and administrative
84.4costs for acquisition, construction, improvement, and development of parks and trails and
84.5to repay or retire at maturity the principal, interest, and premium due on any bonds issued
84.6for the park and trail improvements under subdivision 3, paragraph (a), plus the earlier
84.7of (1) 30 years, or (2) when the city council first determines that the additional revenues
84.8received from the extension of the tax equals or exceeds the amount authorized to be spent
84.9for the regional event center under subdivision 2, clause (2). Any funds remaining after
84.10completion of the park and trail improvements authorized projects and retirement or
84.11redemption of the bonds may be placed in the general fund of the city. The tax imposed
84.12under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
84.13EFFECTIVE DATE.This section is effective the day after compliance by the
84.14governing body of the city of Bemidji and its chief clerical officer with Minnesota
84.15Statutes, section 645.021, subdivisions 2 and 3.

84.16    Sec. 4. CITY OF CROOKSTON; TAXES AUTHORIZED.
84.17    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
84.18477A.016, or any other provision of law, ordinance, or city charter, if approved by the
84.19voters at the next general election or a special election prior to December 31, 2008, the
84.20city of Crookston may impose by ordinance a sales and use tax of up to one-half of one
84.21percent for the purpose specified in subdivision 2. Except as provided in this section, the
84.22provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
84.23collection, and enforcement of the tax authorized under this subdivision.
84.24    Subd. 2. Use of revenues. Revenues received from taxes authorized by subdivision
84.251 must be used by the city to pay the cost of collecting the taxes and to pay all or part of
84.26the capital and administrative costs for the reconstruction of public facilities that need
84.27to be relocated in conjunction with the city's flood control project. Authorized expenses
84.28include, but are not limited to, acquiring property and paying construction expenses
84.29related to these facilities and improvements, and paying debt service on bonds or other
84.30obligations issued to finance acquisition, development, and construction of these facilities
84.31and improvements. The total amount of revenues that the city may raise under subdivision
84.321 to finance these projects is limited to $....... plus any associated bond costs.
84.33    Subd. 3. Bonding authority. Pursuant to the approval of the city voters to impose
84.34the tax authorized under subdivision 1, the city may issue, without an additional election,
84.35general obligation bonds of the city in an amount not to exceed $10,000,000 to pay
85.1capital and administrative expenses for the projects described in subdivision 2. The debt
85.2represented by the bonds is not included in computing any debt limitation applicable to the
85.3city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
85.4and interest on the bonds is not subject to any levy limitation or be included in computing
85.5or applying any levy limitation applicable to the city.
85.6    Subd. 5. Termination of taxes. The taxes imposed under subdivision 1 expire
85.7when the Crookston city council determines that the amount of revenues received from
85.8the taxes to finance the project described in subdivision 2 first equals or exceeds $.......,
85.9plus the additional amount needed to pay the costs related to issuance of bonds under
85.10subdivision 3, including interest on the bonds. Any funds remaining after completion of
85.11the project and retirement or redemption of the bonds may be placed in the general fund
85.12of the city. The taxes imposed under subdivision 1 may expire at an earlier time if the
85.13city so determines by ordinance.
85.14EFFECTIVE DATE.This section is effective the day after the governing body of
85.15the city of Crookston and its chief clerical officer comply with Minnesota Statutes, section
85.16645.021, subdivisions 2 and 3.

85.17    Sec. 5. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
85.18    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
85.19section 477A.016, or any other provision of law, ordinance, or city charter pursuant to
85.20the approval of the voters on November 7, 2006, and pursuant to Minnesota Statutes,
85.21section 297A.99, the city of North Mankato may impose by ordinance a sales and use tax
85.22of one-half of one percent for the purposes specified in subdivision 2. The provisions of
85.23Minnesota Statutes, section 297A.99, govern the imposition, administration, collection,
85.24and enforcement of the taxes authorized under this subdivision.
85.25    Subd. 2. Use of revenues. Revenues received from the tax authorized by
85.26subdivision 1 must be used to pay all or part of the capital costs of the following projects:
85.27    (1) the local share of the Trunk Highway 14/County State Aid Highway 41
85.28interchange project;
85.29    (2) development of regional parks and hiking and biking trails;
85.30    (3) expansion of the North Mankato Taylor Library;
85.31    (4) riverfront redevelopment; and
85.32    (5) lake improvement projects.
85.33    The total amount of revenues from the tax in subdivision 1 that may be used to fund
85.34these projects is $6,000,000 plus any associated bond costs.
86.1    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the
86.2voters at the November 7, 2006, referendum authorizing the imposition of the taxes in
86.3this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
86.4administrative expenses for the projects described in subdivision 2, in an amount that
86.5does not exceed $6,000,000. A separate election to approve the bonds under Minnesota
86.6Statutes, section 475.58, is not required.
86.7    (b) The debt represented by the bonds is not included in computing any debt
86.8limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
86.9475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
86.10    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires
86.11when the city council determines that the amount of revenues received from the taxes
86.12to pay for the projects under subdivision 2, first equals or exceeds $6,000,000 plus the
86.13additional amount needed to pay the costs related to issuance of bonds under subdivision
86.143, including interest on the bonds. Any funds remaining after completion of the projects
86.15and retirement or redemption of the bonds shall be placed in a capital facilities and
86.16equipment replacement fund of the city. The tax imposed under section 1 may expire at an
86.17earlier time if the city so determines by ordinance.
86.18EFFECTIVE DATE.This section is effective the day after compliance by the
86.19governing body of the city of North Mankato with Minnesota Statutes, section 645.021,
86.20subdivision 3."