1.1.................... moves to amend H.F. No. 22 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to
1.5    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
1.6units and used or held for use by the owner or by the tenants or lessees of the owner
1.7as a residence for rental periods of 30 days or more, excluding property qualifying for
1.8class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
1.9than hospitals exempt under section 272.02, and contiguous property used for hospital
1.10purposes, without regard to whether the property has been platted or subdivided. The
1.11market value of class 4a property has a class rate of 1.25 percent.
1.12    (b) Class 4b includes:
1.13    (1) residential real estate containing less than four units that does not qualify as class
1.144bb, other than seasonal residential recreational property;
1.15    (2) manufactured homes not classified under any other provision;
1.16    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
1.17farm classified under subdivision 23, paragraph (b) containing two or three units; and
1.18    (4) unimproved property that is classified residential as determined under subdivision
1.20    The market value of class 4b property has a class rate of 1.25 percent.
1.21    (c) Class 4bb includes:
1.22    (1) nonhomestead residential real estate containing one unit, other than seasonal
1.23residential recreational property; and
1.24    (2) a single family dwelling, garage, and surrounding one acre of property on a
1.25nonhomestead farm classified under subdivision 23, paragraph (b).
1.26    Class 4bb property has the same class rates as class 1a property under subdivision 22.
2.1    Property that has been classified as seasonal residential recreational property at
2.2any time during which it has been owned by the current owner or spouse of the current
2.3owner does not qualify for class 4bb.
2.4    (d) Class 4c property includes:
2.5    (1) except as provided in subdivision 22, paragraph (c), real and personal property
2.6devoted to commercial temporary and seasonal residential occupancy for recreation
2.7purposes, including real and personal property devoted to temporary and seasonal
2.8residential occupancy for recreation purposes and not devoted to commercial purposes for
2.9not more than 250 days in the year preceding the year of assessment. For purposes of this
2.10clause, property is devoted to a commercial purpose on a specific day if any portion of the
2.11property is used for residential occupancy, and a fee is charged for residential occupancy.
2.12Class 4c property under this clause must contain three or more rental units. A "rental unit"
2.13is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
2.14equipped with water and electrical hookups for recreational vehicles. Class 4c property
2.15under this clause must provide recreational activities such as renting ice fishing houses,
2.16boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
2.17services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
2.18offered for rent by a property that otherwise qualifies for class 4c under this clause is also
2.19class 4c under this clause regardless of the term of the rental agreement, as long as the use
2.20of the camping pad does not exceed 250 days. In order for a property to be classified as
2.21class 4c, seasonal residential recreational for commercial purposes under this clause, either
2.22(i) the business located on the property must provide recreational activities, at least 40
2.23percent of the annual gross lodging receipts related to the property must be from business
2.24conducted during 90 consecutive days, and either (i) (A) at least 60 percent of all paid
2.25bookings by lodging guests during the year must be for periods of at least two consecutive
2.26nights; or (ii) (B) at least 20 percent of the annual gross receipts must be from charges
2.27for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
2.28equipment, or charges for marina services, launch services, and guide services, or the sale
2.29of bait and fishing tackle providing recreational activities, or (ii) the business must contain
2.3020 or fewer rental units, and must be located in a township or a city with a population of
2.312,500 or less located outside the metropolitan area, as defined under section 473.121,
2.32subdivision 2, that contains a portion of a state trail administered by the Department of
2.33Natural Resources. For purposes of this determination item (i)(A), a paid booking of
2.34five or more nights shall be counted as two bookings. Class 4c property classified under
2.35this clause also includes commercial use real property used exclusively for recreational
2.36purposes in conjunction with other class 4c property classified under this clause and
3.1devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
3.2total of two acres, provided the property is not devoted to commercial recreational use for
3.3more than 250 days in the year preceding the year of assessment and is located within two
3.4miles of the class 4c property with which it is used. Owners of real and personal property
3.5devoted to temporary and seasonal residential occupancy for recreation purposes and all
3.6or a portion of which was devoted to commercial purposes for not more than 250 days in
3.7the year preceding the year of assessment desiring classification as class 4c, In order for a
3.8property to qualify for classification under this clause, the owner must submit a declaration
3.9to the assessor designating the cabins or units occupied for 250 days or less in the year
3.10preceding the year of assessment by January 15 of the assessment year. Those cabins or
3.11units and a proportionate share of the land on which they are located must be designated
3.12class 4c under this clause as otherwise provided. The remainder of the cabins or units and
3.13a proportionate share of the land on which they are located will be designated as class 3a.
3.14The owner of property desiring designation as class 4c property under this clause must
3.15provide guest registers or other records demonstrating that the units for which class 4c
3.16designation is sought were not occupied for more than 250 days in the year preceding the
3.17assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
3.18(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
3.19operated on a commercial basis not directly related to temporary and seasonal residential
3.20occupancy for recreation purposes does not qualify for class 4c. For the purposes of this
3.21paragraph, "recreational activities" means renting ice fishing houses, boats and motors,
3.22snowmobiles, downhill or cross-country ski equipment, providing marina services, launch
3.23services, or guide services, or selling bait and fishing tackle;
3.24    (2) qualified property used as a golf course if:
3.25    (i) it is open to the public on a daily fee basis. It may charge membership fees or
3.26dues, but a membership fee may not be required in order to use the property for golfing,
3.27and its green fees for golfing must be comparable to green fees typically charged by
3.28municipal courses; and
3.29    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
3.30    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
3.31with the golf course is classified as class 3a property;
3.32    (3) real property up to a maximum of three acres of land owned and used by a
3.33nonprofit community service oriented organization and not used for residential purposes
3.34on either a temporary or permanent basis, provided that:
3.35    (i) the property is not used for a revenue-producing activity for more than six days
3.36in the calendar year preceding the year of assessment; or
4.1    (ii) the organization makes annual charitable contributions and donations at least
4.2equal to the property's previous year's property taxes and the property is allowed to be
4.3used for public and community meetings or events for no charge, as appropriate to the
4.4size of the facility.
4.5    For purposes of this clause,
4.6    (A) "charitable contributions and donations" has the same meaning as lawful
4.7gambling purposes under section 349.12, subdivision 25, excluding those purposes
4.8relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
4.9    (B) "property taxes" excludes the state general tax;
4.10    (C) a "nonprofit community service oriented organization" means any corporation,
4.11society, association, foundation, or institution organized and operated exclusively for
4.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
4.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
4.14Revenue Code; and
4.15    (D) "revenue-producing activities" shall include but not be limited to property or that
4.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
4.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
4.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
4.19insurance business, or office or other space leased or rented to a lessee who conducts a
4.20for-profit enterprise on the premises.
4.21Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
4.22of the property for social events open exclusively to members and their guests for periods
4.23of less than 24 hours, when an admission is not charged nor any revenues are received by
4.24the organization shall not be considered a revenue-producing activity.
4.25    The organization shall maintain records of its charitable contributions and donations
4.26and of public meetings and events held on the property and make them available upon
4.27request any time to the assessor to ensure eligibility. An organization meeting the
4.28requirement under item (ii) must file an application by May 1 with the assessor for
4.29eligibility for the current year's assessment. The commissioner shall prescribe a uniform
4.30application form and instructions;
4.31    (4) postsecondary student housing of not more than one acre of land that is owned by
4.32a nonprofit corporation organized under chapter 317A and is used exclusively by a student
4.33cooperative, sorority, or fraternity for on-campus housing or housing located within two
4.34miles of the border of a college campus;
4.35    (5) (i) manufactured home parks as defined in section 327.14, subdivision 3,
4.36excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
5.1manufactured home parks as defined in section 327.14, subdivision 3, that are described in
5.2section 273.124, subdivision 3a;
5.3    (6) real property that is actively and exclusively devoted to indoor fitness, health,
5.4social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
5.5and is located within the metropolitan area as defined in section 473.121, subdivision 2;
5.6    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
5.7under section 272.01, subdivision 2, and the land on which it is located, provided that:
5.8    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
5.9Airports Commission, or group thereof; and
5.10    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
5.11leased premise, prohibits commercial activity performed at the hangar.
5.12    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
5.13be filed by the new owner with the assessor of the county where the property is located
5.14within 60 days of the sale;
5.15    (8) a privately owned noncommercial aircraft storage hangar not exempt under
5.16section 272.01, subdivision 2, and the land on which it is located, provided that:
5.17    (i) the land abuts a public airport; and
5.18    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
5.19agreement restricting the use of the premises, prohibiting commercial use or activity
5.20performed at the hangar; and
5.21    (9) residential real estate, a portion of which is used by the owner for homestead
5.22purposes, and that is also a place of lodging, if all of the following criteria are met:
5.23    (i) rooms are provided for rent to transient guests that generally stay for periods
5.24of 14 or fewer days;
5.25    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
5.26in the basic room rate;
5.27    (iii) meals are not provided to the general public except for special events on fewer
5.28than seven days in the calendar year preceding the year of the assessment; and
5.29    (iv) the owner is the operator of the property.
5.30The market value subject to the 4c classification under this clause is limited to five rental
5.31units. Any rental units on the property in excess of five, must be valued and assessed as
5.32class 3a. The portion of the property used for purposes of a homestead by the owner must
5.33be classified as class 1a property under subdivision 22;
5.34    (10) real property up to a maximum of three acres and operated as a restaurant
5.35as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
5.36as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
6.1is either devoted to commercial purposes for not more than 250 consecutive days, or
6.2receives at least 60 percent of its annual gross receipts from business conducted during
6.3four consecutive months. Gross receipts from the sale of alcoholic beverages must be
6.4included in determining the property's qualification under subitem (B). The property's
6.5primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
6.6sales located on the premises must be excluded. Owners of real property desiring 4c
6.7classification under this clause must submit an annual declaration to the assessor by
6.8February 1 of the current assessment year, based on the property's relevant information for
6.9the preceding assessment year; and
6.10(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
6.11as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
6.12the public and devoted to recreational use for marina services. The marina owner must
6.13annually provide evidence to the assessor that it provides services, including lake or river
6.14access to the public by means of an access ramp or other facility that is either located on
6.15the property of the marina or at a publicly owned site that abuts the property of the marina.
6.16No more than 800 feet of lakeshore may be included in this classification. Buildings used
6.17in conjunction with a marina for marina services, including but not limited to buildings
6.18used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
6.19tackle, are classified as class 3a property; and
6.20(12) real and personal property devoted to noncommercial temporary and seasonal
6.21residential occupancy for recreation purposes.
6.22    Class 4c property has a class rate of 1.5 percent of market value, except that (i)
6.23each parcel of noncommercial seasonal residential recreational property not used for
6.24commercial purposes under clause (12) has the same class rates as class 4bb property, (ii)
6.25manufactured home parks assessed under clause (5), item (i), have the same class rate
6.26as class 4b property, and the market value of manufactured home parks assessed under
6.27clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent
6.28of the lots in the park are occupied by shareholders in the cooperative corporation or
6.29association and a class rate of one percent if 50 percent or less of the lots are so occupied,
6.30(iii) commercial-use seasonal residential recreational property and marina recreational
6.31land as described in clause (11), has a class rate of one percent for the first $500,000 of
6.32market value, and 1.25 percent for the remaining market value, (iv) the market value of
6.33property described in clause (4) has a class rate of one percent, (v) the market value of
6.34property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
6.35that portion of the market value of property in clause (9) qualifying for class 4c property
6.36has a class rate of 1.25 percent.
7.1    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
7.2by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
7.3of the units in the building qualify as low-income rental housing units as certified under
7.4section 273.128, subdivision 3, only the proportion of qualifying units to the total number
7.5of units in the building qualify for class 4d. The remaining portion of the building shall be
7.6classified by the assessor based upon its use. Class 4d also includes the same proportion of
7.7land as the qualifying low-income rental housing units are to the total units in the building.
7.8For all properties qualifying as class 4d, the market value determined by the assessor must
7.9be based on the normal approach to value using normal unrestricted rents.
7.10    Class 4d property has a class rate of 0.75 percent.
7.11EFFECTIVE DATE.This section is effective for taxes payable in 2012 and

7.13    Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:
7.14    Subd. 3. Seasonal residential recreational tax capacity. For the purposes of this
7.15section, "seasonal residential recreational tax capacity" means the tax capacity of tier III
7.16of class 1c under section 273.13, subdivision 22, and all class 4c(1) and, 4c(3)(ii), and
7.174c(12) property under section 273.13, subdivision 25, except that the first $76,000 of
7.18market value of each noncommercial class 4c(1) 4c(12) property has a tax capacity for this
7.19purpose equal to 40 percent of its tax capacity under section 273.13.
7.20EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
7.22Amend the title accordingly