1.1 .................... moves to amend H.F. No. 1222 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1

1.4HOMESTEAD CREDIT STATE REFUND

1.5    Section 1. Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
1.6read:
1.7    Subdivision 1. Residential homestead market value credit. (a) Each county
1.8auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead
1.9property within the county equal to 0.4 percent of the first $76,000 of market value
1.10of the property minus .09 percent of the market value in excess of $76,000. The credit
1.11amount may not be less than zero. In the case of an agricultural or resort homestead, only
1.12the market value of the house, garage, and immediately surrounding one acre of land is
1.13eligible in determining the property's homestead credit. In the case of a property that
1.14is classified as part homestead and part nonhomestead, (i) the credit shall apply only
1.15to the homestead portion of the property, but (ii) if a portion of a property is classified
1.16as nonhomestead solely because not all the owners occupy the property, not all the
1.17owners have qualifying relatives occupying the property, or solely because not all the
1.18spouses of owners occupy the property, the credit amount shall be initially computed as
1.19if that nonhomestead portion were also in the homestead class and then prorated to the
1.20owner-occupant's percentage of ownership. For the purpose of this section, when an
1.21owner-occupant's spouse does not occupy the property, the percentage of ownership for
1.22the owner-occupant spouse is one-half of the couple's ownership percentage.
1.23    (b) For property taxes payable in 2009 and thereafter, the county auditor shall
1.24determine the amount of the homestead credit under paragraph (a) and this paragraph.
1.25The county auditor shall report the amount of the credit to the taxpayer on the property
1.26tax 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 2009, 100 percent;
2.4    (2) for property taxes payable in 2010, 60 percent;
2.5    (3) for property taxes payable in 2011, 45 percent;
2.6    (4) for property taxes payable in 2012, 30 percent;
2.7    (5) for property taxes payable in 2013, 15 percent; and
2.8    (6) for property taxes payable in 2014 or thereafter, no credit is allowed.
2.9EFFECTIVE DATE.This section is effective beginning for property taxes payable
2.10in 2009.

2.11    Sec. 2. Minnesota Statutes 2006, section 276.04, subdivision 2, as amended by Laws
2.122008, chapter 154, article 2, section 19, is amended to read:
2.13    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
2.14printing of the tax statements. The commissioner of revenue shall prescribe the form
2.15of the property tax statement and its contents. The statement must contain a tabulated
2.16statement of the dollar amount due to each taxing authority and the amount of the state
2.17tax from the parcel of real property for which a particular tax statement is prepared. The
2.18dollar amounts attributable to the county, the state tax, the voter approved school tax, the
2.19other local school tax, the township or municipality, and the total of the metropolitan
2.20special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
2.21be separately stated. The amounts due all other special taxing districts, if any, may be
2.22aggregated except that any levies made by the regional rail authorities in the county of
2.23Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
2.24shall be listed on a separate line directly under the appropriate county's levy. If the county
2.25levy under this paragraph includes an amount for a lake improvement district as defined
2.26under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
2.27separately stated from the remaining county levy amount. In the case of Ramsey County,
2.28if the county levy under this paragraph includes an amount for public library service
2.29under section 134.07, the amount attributable for that purpose may be separated from the
2.30remaining county levy amount. The amount of the tax on homesteads qualifying under the
2.31senior citizens' property tax deferral program under chapter 290B is the total amount of
2.32property tax before subtraction of the deferred property tax amount. The amount of the
2.33tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
2.34be separately stated. The dollar amounts, including the dollar amount of any special
2.35assessments, may be rounded to the nearest even whole dollar. For purposes of this section
3.1whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
3.2The amount of market value excluded under section 273.11, subdivision 16, if any, must
3.3also be listed on the tax statement.
3.4    (b) The property tax statements for manufactured homes and sectional structures
3.5taxed as personal property shall contain the same information that is required on the
3.6tax statements for real property.
3.7    (c) Real and personal property tax statements must contain the following information
3.8in the order given in this paragraph. The information must contain the current year tax
3.9information in the right column with the corresponding information for the previous year
3.10in a column on the left:
3.11    (1) the property's estimated market value under section 273.11, subdivision 1;
3.12    (2) the property's taxable market value after reductions under section 273.11,
3.13subdivisions 1a and 16 ;
3.14    (3) ~~the property's gross tax, before credits;~~ any items required by the commissioner
3.15of revenue under section 273.1384, subdivision 1, paragraph (b); and
3.16    ~~(4) for homestead residential and agricultural properties, the credits under section~~
3.17~~273.1384~~;
3.18    ~~(5) any credits received under sections~~ ~~273.119~~; ~~273.123~~; ~~273.135~~; ~~273.1391~~;
3.19~~273.1398, subdivision 4~~; ~~469.171; and~~ ~~473H.10, except that the amount of credit received~~
3.20~~under section~~ ~~273.135~~ ~~must be separately stated and identified as "taconite tax relief"; and~~
3.21    ~~(6)~~ (4) the net tax payable in the manner required in paragraph (a).
3.22    (d) If the county uses envelopes for mailing property tax statements and if the county
3.23agrees, a taxing district may include a notice with the property tax statement notifying
3.24taxpayers when the taxing district will begin its budget deliberations for the current
3.25year, and encouraging taxpayers to attend the hearings. If the county allows notices to
3.26be included in the envelope containing the property tax statement, and if more than
3.27one taxing district relative to a given property decides to include a notice with the tax
3.28statement, the county treasurer or auditor must coordinate the process and may combine
3.29the information on a single announcement.
3.30EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
3.31thereafter.

3.32    Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 19a, as amended by Laws
3.332008, chapter 154, article 3, section 2, and Laws 2008, chapter 154, article 4, section 3,
3.34is amended to read:
4.1    Subd. 19a. Additions to federal taxable income. For individuals, estates, and
4.2trusts, there shall be added to federal taxable income:
4.3    (1)(i) interest income on obligations of any state other than Minnesota or a political
4.4or governmental subdivision, municipality, or governmental agency or instrumentality
4.5of any state other than Minnesota exempt from federal income taxes under the Internal
4.6Revenue Code or any other federal statute; and
4.7    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
4.8Code, except the portion of the exempt-interest dividends derived from interest income
4.9on obligations of the state of Minnesota or its political or governmental subdivisions,
4.10municipalities, governmental agencies or instrumentalities, but only if the portion of the
4.11exempt-interest dividends from such Minnesota sources paid to all shareholders represents
4.1295 percent or more of the exempt-interest dividends that are paid by the regulated
4.13investment company as defined in section 851(a) of the Internal Revenue Code, or the
4.14fund of the regulated investment company as defined in section 851(g) of the Internal
4.15Revenue Code, making the payment; and
4.16    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
4.17government described in section 7871(c) of the Internal Revenue Code shall be treated as
4.18interest income on obligations of the state in which the tribe is located;
4.19    (2) the amount of (i) income or sales and use taxes paid or accrued within the
4.20taxable year under this chapter and the amount of taxes based on net income paid or sales
4.21and use taxes paid to any other state or to any province or territory of Canada, and (ii)
4.22the amount of real and personal property taxes paid or accrued within the taxable year,
4.23to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code,
4.24but the addition may not be more than the amount by which the itemized deductions as
4.25allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the
4.26standard deduction as defined in section 63(c) of the Internal Revenue Code. For the
4.27purpose of this paragraph, the disallowance of itemized deductions under section 68 of the
4.28Internal Revenue Code of 1986, income or sales and use tax is the last itemized deduction
4.29disallowed, real property tax is the second to last itemized deduction disallowed, and
4.30personal property tax is the third to last itemized deduction disallowed;
4.31    (3) the capital gain amount of a lump sum distribution to which the special tax under
4.32section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
4.33    (4) the amount of income taxes paid or accrued within the taxable year under this
4.34chapter and taxes based on net income paid to any other state or any province or territory
4.35of Canada, to the extent allowed as a deduction in determining federal adjusted gross
5.1income. For the purpose of this paragraph, income taxes do not include the taxes imposed
5.2by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
5.3    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
5.4other than expenses or interest used in computing net interest income for the subtraction
5.5allowed under subdivision 19b, clause (1);
5.6    (6) the amount of a partner's pro rata share of net income which does not flow
5.7through to the partner because the partnership elected to pay the tax on the income under
5.8section 6242(a)(2) of the Internal Revenue Code;
5.9    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
5.10Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
5.11in the taxable year generates a deduction for depreciation under section 168(k) and the
5.12activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
5.13the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
5.14limited to excess of the depreciation claimed by the activity under section 168(k) over the
5.15amount of the loss from the activity that is not allowed in the taxable year. In succeeding
5.16taxable years when the losses not allowed in the taxable year are allowed, the depreciation
5.17under section 168(k) is allowed;
5.18    (8) 80 percent of the amount by which the deduction allowed by section 179 of the
5.19Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
5.20Revenue Code of 1986, as amended through December 31, 2003;
5.21    (9) to the extent deducted in computing federal taxable income, the amount of the
5.22deduction allowable under section 199 of the Internal Revenue Code;
5.23    (10) the exclusion allowed under section 139A of the Internal Revenue Code for
5.24federal subsidies for prescription drug plans;
5.25    (11) the amount of expenses disallowed under section 290.10, subdivision 2;
5.26    (12) for taxable years beginning after December 31, 2006, and before January 1,
5.272008, the amount deducted for qualified tuition and related expenses under section 222 of
5.28the Internal Revenue Code, to the extent deducted from gross income; and
5.29    (13) for taxable years beginning after December 31, 2006, and before January 1,
5.302008, the amount deducted for certain expenses of elementary and secondary school
5.31teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
5.32from gross income.
5.33EFFECTIVE DATE.This section is effective for taxable years beginning after
5.34December 31, 2008.

5.35    Sec. 4. Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:
6.1    Subd. 13. Property taxes payable. "Property taxes payable" means the property
6.2tax exclusive of special assessments, penalties, and interest payable on a claimant's
6.3homestead after deductions made under sections 273.135, ~~273.1384~~, 273.1391, 273.42,
6.4subdivision 2 , and any other state paid property tax credits in any calendar year, and
6.5after any refund claimed and allowable under section 290A.04, subdivision 2h, that is
6.6first payable in the year that the property tax is payable. Beginning for property taxes
6.7payable in 2009, the amount of the credit under section 273.1384, subdivision 1, must
6.8not be deducted in computing property taxes payable. In the case of a claimant who
6.9makes ground lease payments, "property taxes payable" includes the amount of the
6.10payments directly attributable to the property taxes assessed against the parcel on which
6.11the house is located. No apportionment or reduction of the "property taxes payable" shall
6.12be required for the use of a portion of the claimant's homestead for a business purpose if
6.13the claimant does not deduct any business depreciation expenses for the use of a portion
6.14of the homestead in the determination of federal adjusted gross income. For homesteads
6.15which are manufactured homes as defined in section 273.125, subdivision 8, and for
6.16homesteads which are park trailers taxed as manufactured homes under section 168.012,
6.17subdivision 9 , "property taxes payable" shall also include 19 percent of the gross rent paid
6.18in the preceding year for the site on which the homestead is located. When a homestead
6.19is owned by two or more persons as joint tenants or tenants in common, such tenants
6.20shall determine between them which tenant may claim the property taxes payable on the
6.21homestead. If they are unable to agree, the matter shall be referred to the commissioner of
6.22revenue whose decision shall be final. Property taxes are considered payable in the year
6.23prescribed by law for payment of the taxes.
6.24    In the case of a claim relating to "property taxes payable," the claimant must have
6.25owned and occupied the homestead on January 2 of the year in which the tax is payable
6.26and (i) the property must have been classified as homestead property pursuant to section
6.27273.124 , on or before December 15 of the assessment year to which the "property taxes
6.28payable" relate; or (ii) the claimant must provide documentation from the local assessor
6.29that application for homestead classification has been made on or before December 15
6.30of the year in which the "property taxes payable" were payable and that the assessor has
6.31approved the application.
6.32EFFECTIVE DATE.This section is effective beginning for refund claims based on
6.33property taxes payable in 2009.

6.34    Sec. 5. Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:
7.1    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a
7.2homestead increase more than 12 percent over the property taxes payable in the prior year
7.3on the same property that is owned and occupied by the same owner on January 2 of both
7.4years, and the amount of that increase is $100 or more, a claimant who is a homeowner
7.5shall be allowed an additional refund equal to 60 percent of the amount of the increase
7.6over the greater of 12 percent of the prior year's property taxes payable or $100. This
7.7subdivision shall not apply to any increase in the gross property taxes payable attributable
7.8to improvements made to the homestead after the assessment date for the prior year's
7.9taxes. This subdivision shall not apply to any increase in the gross property taxes payable
7.10attributable to the termination of valuation exclusions under section 273.11, subdivision
7.1116 , or to the reduction in and elimination of the homestead market value credit under
7.12section 273.1384, subdivision 1, paragraph (b).
7.13    The maximum refund allowed under this subdivision is $1,000.
7.14    (b) For purposes of this subdivision "gross property taxes payable" means property
7.15taxes payable determined without regard to the refund allowed under this subdivision.
7.16    (c) In addition to the other proofs required by this chapter, each claimant under
7.17this subdivision shall file with the property tax refund return a copy of the property tax
7.18statement for taxes payable in the preceding year or other documents required by the
7.19commissioner.
7.20    (d) Upon request, the appropriate county official shall make available the names and
7.21addresses of the property taxpayers who may be eligible for the additional property tax
7.22refund under this section. The information shall be provided on a magnetic computer
7.23disk. The county may recover its costs by charging the person requesting the information
7.24the reasonable cost for preparing the data. The information may not be used for any
7.25purpose other than for notifying the homeowner of potential eligibility and assisting the
7.26homeowner, without charge, in preparing a refund claim.
7.27EFFECTIVE DATE.This section is effective for claims based on property taxes
7.28payable in 2009 and thereafter.

7.29    Sec. 6. Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision
7.30to read:
7.31    Subd. 2k. Homestead credit state refund. (a) A claimant who is a homeowner
7.32is entitled to a state refund of the amount of the property taxes payable in excess of two
7.33percent of the claimant's household income, based on the percentage and maximum for the
7.34appropriate household income level shown below. The refund amount determined from the
8.1table must be reduced further by the amount of the homestead market value credit under
8.2section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.

`8.3`	Household Income	Refund Percentage	Maximum State Refund
`8.4`	0 to $5,399	90 percent	$2,500
`8.5`	5,400 to 18,899	85 percent	2,500
`8.6`	18,900 to 26,999	80 percent	2,500
`8.7`	27,000 to 32,399	70 percent	2,500
`8.8`	32,400 to 37,799	65 percent	2,500
`8.9`	37,800 to 45,899	60 percent	2,500
`8.10`	45,900 to 64,699	55 percent	2,500
`8.11`	64,700 to 80,899	50 percent	2,300
`8.12`	80,900 to 94,399	45 percent	2,100
`8.13`	94,400 to 99,299	40 percent	1,900
`8.14`	99,300 to 104,099	35 percent	1,700
`8.15`	104,100 to 115,599	30 percent	1,500
`8.16`	115,600 to 127,199	25 percent	1,250
`8.17`	127,200 to 134,099	25 percent	1,000
`8.18`	134,100 to 138,799	25 percent	750
`8.19`	138,800 to 144,399	25 percent	500
`8.20`	144,400 to 200,000	25 percent	250

8.21    (b) No payment is allowed under paragraph (a) if the claimant's household income
8.22is more than $200,000.
8.23EFFECTIVE DATE.This section is effective beginning for claims based on
8.24property taxes payable in 2009.

8.25    Sec. 7. Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read:
8.26    Subd. 3. Table. The commissioner of revenue shall construct and make available
8.27to taxpayers a comprehensive table showing the ~~property taxes to be paid and~~ refund
8.28allowed at various levels of income ~~and assessment~~. The table shall follow the schedule
8.29of income percentages, maximums and other provisions specified in ~~subdivision 2~~ this
8.30section, except that the commissioner may graduate the transition between income
8.31brackets. All refunds shall be computed in accordance with tables prepared and issued
8.32by the commissioner of revenue.
8.33    The commissioner shall include on the form an appropriate space or method for the
8.34claimant to identify if the property taxes paid are for a manufactured home, as defined in
8.35section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured
8.36home under section 168.012, subdivision 9.

8.37    Sec. 8. Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:
9.1    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
9.2calendar year ~~2002~~ 2010, the commissioner shall annually adjust the dollar amounts of the
9.3income thresholds and the maximum refunds under ~~subdivisions 2 and 2a~~ subdivision 2k
9.4for inflation. The commissioner shall make the inflation adjustments in accordance with
9.5section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision
9.6the percentage increase shall be determined from the year ending on June 30, ~~2000~~ 2008,
9.7to the year ending on June 30 of the year preceding that in which the refund is payable.
9.8The commissioner shall use the appropriate percentage increase to annually adjust the
9.9income thresholds and maximum refunds under ~~subdivisions 2 and 2a~~ subdivision 2k for
9.10inflation without regard to whether or not the income tax brackets are adjusted for inflation
9.11in that year. The commissioner shall round the thresholds and the maximum amounts,
9.12as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
9.13round it up to the next $10 amount.
9.14    The commissioner shall annually announce the adjusted refund schedule at the same
9.15time provided under section 290.06. The determination of the commissioner under this
9.16subdivision is not a rule under the Administrative Procedure Act.
9.17    (b) Beginning for property tax refunds payable in calendar year 2002, the
9.18commissioner shall annually adjust the dollar amounts of the income thresholds and
9.19the maximum refunds under subdivision 2a for inflation. The commissioner shall make
9.20the inflation adjustments in accordance with section 1(f) of the Internal Revenue Code,
9.21except that for purposes of this subdivision the percentage increase shall be determined
9.22from the year ending on June 30, 2000, to the year ending on June 30 of the year
9.23preceding that in which the refund is payable. The commissioner shall use the appropriate
9.24percentage increase to annually adjust the income thresholds and maximum refunds under
9.25subdivision 2a for inflation without regard to whether or not the income tax brackets are
9.26adjusted for inflation in that year. The commissioner shall round the thresholds and the
9.27maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the
9.28commissioner shall round it up to the next $10 amount. The commissioner shall annually
9.29announce the adjusted refund schedule at the same time provided under section 290.06.
9.30The determination of the commissioner under this subdivision is not a rule under the
9.31Administrative Procedure Act.
9.32EFFECTIVE DATE.This section is effective beginning for claims based on
9.33property taxes payable in 2010.

9.34    Sec. 9. REPEALER.
9.35Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, are repealed.
10.1EFFECTIVE DATE.This section is effective for claims based on property taxes
10.2payable in 2009 and later.

10.3ARTICLE 2

10.4AIDS AND CREDITS

10.5    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to
10.6read:
10.7    Subd. 34. City revenue need. (a) For a city with a population equal to or greater
10.8than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing
10.9percentage; plus (2) 19.141678 times the population decline percentage; plus (3)
10.102504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan
10.11area factor; minus (6) 49.10638 times the household size.
10.12    (b) For a city with a population less than 2,500, "city revenue need" is the sum of
10.13(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
10.14industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
10.151.206 times the transformed population; minus (5) 62.772.
10.16    (c) For a city with a population of 2,500 or more and a population in one of the most
10.17recently available five years that was less than 2,500, "city revenue need" is the sum of (1)
10.18its city revenue need calculated under paragraph (a) multiplied by its transition factor;
10.19plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied
10.20by the difference between one and its transition factor. For purposes of this paragraph, a
10.21city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's
10.22population estimate has been 2,500 or more. This provision only applies for aids payable
10.23in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It
10.24applies to any city for aids payable in 2009 and thereafter.
10.25    (d) The city revenue need cannot be less than zero.
10.26    (e) For aids certified in 2010 and subsequent years, the city revenue need is equal
10.27to the average of (1) the city's revenue need calculated under paragraphs (a) through (d)
10.28based on data available by January 1 in the year the aid is certified, and (2) its revenue
10.29need calculated under paragraphs (a) through (d) based on data available by January 1 in
10.30the previous year.
10.31    ~~(e)~~ (f) For calendar year 2005 and subsequent years, the city revenue need for a city,
10.32as determined in paragraphs (a) to ~~(d)~~ (e), is multiplied by the ratio of the annual implicit
10.33price deflator for government consumption expenditures and gross investment for state
10.34and local governments as prepared by the United States Department of Commerce, for
11.1the most recently available year to the 2003 implicit price deflator for state and local
11.2government purchases.
11.3EFFECTIVE DATE.This section is effective for aids payable in calendar year
11.42010 and thereafter.

11.5    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, as amended by
11.6Laws 2008, chapter 154, article 1, section 1, is amended to read:
11.7    Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision,
11.8"city aid base" is zero.
11.9    (b) The city aid base for any city with a population less than 500 is increased by
11.10$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
11.11of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
11.12increased by $40,000 for aids payable in calendar year 1995 only, provided that:
11.13    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
11.14    (ii) the city portion of the tax capacity rate exceeds 100 percent; and
11.15    (iii) its city aid base is less than $60 per capita.
11.16    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
11.17the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
11.18paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
11.19    (i) the city has a population in 1994 of 2,500 or more;
11.20    (ii) the city is located in a county, outside of the metropolitan area, which contains a
11.21city of the first class;
11.22    (iii) the city's net tax capacity used in calculating its 1996 aid under section
11.23477A.013 is less than $400 per capita; and
11.24    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
11.25property located in the city is classified as railroad property.
11.26    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
11.27the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
11.28paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
11.29    (i) the city was incorporated as a statutory city after December 1, 1993;
11.30    (ii) its city aid base does not exceed $5,600; and
11.31    (iii) the city had a population in 1996 of 5,000 or more.
11.32    ~~(e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the~~
11.33~~maximum amount of total aid it may receive under section~~ ~~477A.013, subdivision 9~~,
11.34~~paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:~~
11.35    ~~(i) the city had a population in 1996 of at least 50,000;~~
12.1    ~~(ii) its population had increased by at least 40 percent in the ten-year period ending~~
12.2~~in 1996; and~~
12.3    ~~(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.~~
12.4    ~~(f)~~ (e) The city aid base for a city is increased by $150,000 for aids payable in
12.52000 and thereafter, and the maximum amount of total aid it may receive under section
12.6477A.013, subdivision 9 , paragraph (c), is also increased by $150,000 in calendar year
12.72000 only, provided that:
12.8    (1) the city has a population that is greater than 1,000 and less than 2,500;
12.9    (2) its commercial and industrial percentage for aids payable in 1999 is greater
12.10than 45 percent; and
12.11    (3) the total market value of all commercial and industrial property in the city
12.12for assessment year 1999 is at least 15 percent less than the total market value of all
12.13commercial and industrial property in the city for assessment year 1998.
12.14    ~~(g)~~ (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter,
12.15and the maximum amount of total aid it may receive under section 477A.013, subdivision
12.169 , paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
12.17    (1) the city had a population in 1997 of 2,500 or more;
12.18    (2) the net tax capacity of the city used in calculating its 1999 aid under section
12.19477A.013 is less than $650 per capita;
12.20    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
12.21section 477A.013 is greater than 12 percent;
12.22    (4) the 1999 local government aid of the city under section 477A.013 is less than
12.2320 percent of the amount that the formula aid of the city would have been if the need
12.24increase percentage was 100 percent; and
12.25    (5) the city aid base of the city used in calculating aid under section 477A.013
12.26is less than $7 per capita.
12.27    ~~(h)~~ (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter,
12.28and the maximum amount of total aid it may receive under section 477A.013, subdivision
12.299 , paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
12.30    (1) the city has a population in 1997 of 2,000 or more;
12.31    (2) the net tax capacity of the city used in calculating its 1999 aid under section
12.32477A.013 is less than $455 per capita;
12.33    (3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
12.34greater than $195 per capita; and
13.1    (4) the 1999 local government aid of the city under section 477A.013 is less than
13.238 percent of the amount that the formula aid of the city would have been if the need
13.3increase percentage was 100 percent.
13.4    ~~(i)~~ (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
13.5the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
13.6paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
13.7    (1) the city has a population in 1998 that is greater than 200 but less than 500;
13.8    (2) the city's revenue need used in calculating aids payable in 2000 was greater
13.9than $200 per capita;
13.10    (3) the city net tax capacity for the city used in calculating aids available in 2000
13.11was equal to or less than $200 per capita;
13.12    (4) the city aid base of the city used in calculating aid under section 477A.013
13.13is less than $65 per capita; and
13.14    (5) the city's formula aid for aids payable in 2000 was greater than zero.
13.15    ~~(j)~~ (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
13.16the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
13.17paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
13.18    (1) the city had a population in 1998 that is greater than 200 but less than 500;
13.19    (2) the city's commercial industrial percentage used in calculating aids payable in
13.202000 was less than ten percent;
13.21    (3) more than 25 percent of the city's population was 60 years old or older according
13.22to the 1990 census;
13.23    (4) the city aid base of the city used in calculating aid under section 477A.013
13.24is less than $15 per capita; and
13.25    (5) the city's formula aid for aids payable in 2000 was greater than zero.
13.26    ~~(k)~~ (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter
13.27and by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount
13.28of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
13.29increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
13.30only, provided that:
13.31    (1) the net tax capacity of the city used in calculating its 2000 aid under section
13.32477A.013 is less than $810 per capita;
13.33    (2) the population of the city declined more than two percent between 1988 and 1998;
13.34    (3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
13.35greater than $240 per capita; and
14.1    (4) the city received less than $36 per capita in aid under section 477A.013,
14.2subdivision 9 , for aids payable in 2000.
14.3    ~~(l)~~ (k) The city aid base for a city with a population of 10,000 or more which is
14.4located outside of the seven-county metropolitan area is increased in 2002 and thereafter,
14.5and the maximum amount of total aid it may receive under section 477A.013, subdivision
14.69 , paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
14.7the lesser of:
14.8    (1)(i) the total population of the city, as determined by the United States Bureau of
14.9the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
14.10    (2) $2,500,000.
14.11    ~~(m)~~ (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the
14.12maximum amount of total aid it may receive under section 477A.013, subdivision 9,
14.13paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:
14.14    (1) the city is located in the seven-county metropolitan area;
14.15    (2) its population in 2000 is between 10,000 and 20,000; and
14.16    (3) its commercial industrial percentage, as calculated for city aid payable in 2001,
14.17was greater than 25 percent.
14.18    ~~(n)~~ (m) The city aid base for a city is increased by $150,000 in calendar years 2002
14.19to 2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum
14.20amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
14.21also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year
14.222009 only, provided that:
14.23    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
14.24    (2) its home county is located within the seven-county metropolitan area;
14.25    (3) its pre-1940 housing percentage is less than 15 percent; and
14.26    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
14.27per capita.
14.28    ~~(o)~~ (n) The city aid base for a city is increased by $200,000 beginning in calendar
14.29year 2003 and the maximum amount of total aid it may receive under section 477A.013,
14.30subdivision 9 , paragraph (c), is also increased by $200,000 in calendar year 2003 only,
14.31provided that the city qualified for an increase in homestead and agricultural credit aid
14.32under Laws 1995, chapter 264, article 8, section 18.
14.33    ~~(p)~~ (o) The city aid base for a city is increased by $200,000 in 2004 only and the
14.34maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
14.35also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
14.36dry cask storage facility.
15.1    ~~(q)~~ (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter
15.2and the maximum total aid it may receive under section 477A.013, subdivision 9, is also
15.3increased by $10,000 in calendar year 2004 only, if the city was included in a federal
15.4major disaster designation issued on April 1, 1998, and its pre-1940 housing stock was
15.5decreased by more than 40 percent between 1990 and 2000.
15.6    ~~(r)~~ (q) The city aid base for a city is increased by $30,000 in 2009 and thereafter
15.7and the maximum total aid it may receive under section 477A.013, subdivision 9, is also
15.8increased by $25,000 in calendar year 2006 only if the city had a population in 2003
15.9of at least 1,000 and has a state park for which the city provides rescue services and
15.10which comprised at least 14 percent of the total geographic area included within the
15.11city boundaries in 2000.
15.12    ~~(s) The city aid base for a city with a population less than 5,000 is increased in~~
15.13~~2006 and thereafter and the minimum and maximum amount of total aid it may receive~~
15.14~~under this section is also increased in calendar year 2006 only by an amount equal to~~
15.15~~$6 multiplied by its population.~~
15.16    ~~(t)~~ (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and
15.17the minimum and maximum amount of total aid it may receive under section 477A.013,
15.18subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:
15.19    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
15.20to be placed in trust status as tax-exempt Indian land;
15.21    (2) the placement of the land is being challenged administratively or in court; and
15.22    (3) due to the challenge, the land proposed to be placed in trust is still on the tax
15.23rolls as of May 1, 2006.
15.24    ~~(u)~~ (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter
15.25and the minimum and maximum total amount of aid it may receive under this section is
15.26also increased in calendar year 2007 only, provided that:
15.27    (1) the city has a 2004 estimated population greater than 200 but less than 2,000;
15.28    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
15.29    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
15.30payable in 2006 was greater than 110 percent; and
15.31    (4) it is located in a county where at least 15,000 acres of land are classified as
15.32tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.
15.33    ~~(v)~~ (t) The city aid base for a city is increased by $30,000 in 2009 only, and the
15.34maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
15.35by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than
16.13,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities
16.2and one township in 2002.
16.3    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and
16.4the maximum total aid it may receive under section 477A.013, subdivision 9, is also
16.5increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for
16.6aids payable in 2007 of less than $150 per capita and the city experienced flooding on
16.7March 14, 2007, that resulted in evacuation of at least 40 homes.
16.8    (v) The city aid base for a city is increased by $200,000 in 2009 through 2013, and
16.9the maximum total aid it may receive under section 477A.013, subdivision 9, is also
16.10increased by $200,000 in calendar year 2009 only, if the city:
16.11    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical
16.12area;
16.13    (2) has a 2005 population greater than 7,000 but less than 8,000; and
16.14    (3) has a 2005 net tax capacity per capita of less than $500.
16.15    (w) The city aid base is increased by $80,000 in calendar years 2009 to 2018 and the
16.16maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
16.17increased by $80,000 in calendar year 2009 only, provided that:
16.18    (1) the city is located in the seven-county metropolitan area;
16.19    (2) its population in 2006 is less than 200; and
16.20    (3) the percentage of its housing stock built before 1940, according to the 2000
16.21United States Census, is greater than 40 percent.
16.22    (x) The city aid base for a city is increased by $100,000 in 2009 and thereafter and
16.23the minimum and maximum total amount of aid it may receive under this section is also
16.24increased by $100,000 in calendar year 2009 only, provided that:
16.25    (1) the city is located in the metropolitan area and its 2006 population is less than
16.262,500;
16.27    (2) at least 25 percent of its housing was built before 1940 and at least 50 percent of
16.28its housing is rental housing, according to the 2000 United States census;
16.29    (3) the median household income in the city is 80 percent or less than the median
16.30household income in the metropolitan area and 50 percent or less than the median
16.31household income for all cities contiguous to that city, according to the 2000 United
16.32States Census; and
16.33    (4) at least 60 percent of the land and water acres in the city are classified as
16.34tax-exempt property, according to its 2008 planning document.
16.35EFFECTIVE DATE.This section is effective for aids payable in calendar year
16.362009 and thereafter.

17.1    Sec. 3. Minnesota Statutes 2006, section 477A.011, is amended by adding a
17.2subdivision to read:
17.3    Subd. 41. Small city aid base. (a) "Small city aid base" for a city with a population
17.4less than 5,000 is equal to $8 multiplied by its population. The small city aid base for
17.5all other cities is equal to zero.
17.6    (b) For calendar year 2010 and subsequent years, the small city aid base for a city,
17.7as determined in paragraph (a), is multiplied by the ratio of the annual implicit price
17.8deflator for government consumption expenditures and gross investment for state and local
17.9governments as prepared by the United States Department of Commerce, for the most
17.10recently available year to the 2007 implicit price deflator for state and local government
17.11purchases.
17.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
17.132009 and thereafter.

17.14    Sec. 4. Minnesota Statutes 2006, section 477A.011, is amended by adding a
17.15subdivision to read:
17.16    Subd. 42. City jobs base. (a) "City jobs base" for a city with a population of 5,000
17.17or more is equal to the product of (1) $18, (2) the number of jobs per capita in the city, and
17.18(3) its population. For cities with a population less than 5,000, the "city jobs base" is equal
17.19to zero. For a city receiving $2,500,000 in aid under section 477A.011, subdivision 36,
17.20paragraph (l), its city jobs base is reduced by 25 percent of the amount of aid received
17.21under that paragraph. No city's job base may exceed $5,000,000 under this paragraph.
17.22    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
17.23determined in paragraph (a), is multiplied by the ratio of the annual implicit price deflator
17.24for government consumption expenditures and gross investment for state and local
17.25governments as prepared by the United States Department of Commerce, for the most
17.26recently available year to the 2007 implicit price deflator for state and local government
17.27purchases.
17.28    (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the
17.29average annual wage and salary in the city based on the data from the Quarterly Census of
17.30Employment and Wages, as reported by the Department of Employment and Economic
17.31Development, for the most recent calendar year available as of January 1 of the year in
17.32which the aid is calculated, divided by (2) the city's population for the same calendar year
17.33as the employment data.
17.34EFFECTIVE DATE.This section is effective for aids payable in calendar year
17.352009 and thereafter.

18.1    Sec. 5. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:
18.2    Subd. 5. County transition aid. (a) ~~For 2005, a county is eligible for transition~~
18.3~~aid equal to the amount, if any, by which:~~
18.4    ~~(1) the difference between:~~
18.5    ~~(i) the aid the county received under subdivision 1 in 2004, divided by the total aid~~
18.6~~paid to all counties under subdivision 1, multiplied by $205,000,000; and~~
18.7    ~~(ii) the amount of aid the county is certified to receive in 2005 under subdivisions~~
18.8~~3 and 4;~~
18.9~~exceeds:~~
18.10    ~~(2) three percent of the county's adjusted net tax capacity.~~
18.11~~A county's aid under this paragraph may not be less than zero.~~
18.12    ~~(b) In 2006, a county is eligible to receive two-thirds of the transition aid it received~~
18.13~~in 2005.~~
18.14    ~~(c) In 2007,~~ For 2009 and each year thereafter, a county is eligible to receive
18.15~~one-third of~~ the transition aid it received in ~~2005~~ 2007.
18.16    ~~(d) No county shall receive aid under this subdivision after 2007.~~
18.17    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2)
18.18an average Part I crimes per capita greater than 3.9 percent based on factors used in
18.19determining county program aid payable in 2008, shall receive $100,000.
18.20    (c) For aids payable in 2009, 2010, and 2011 only, $250,000 each year shall be
18.21distributed to any county in which (1) the 2006 estimated population exceeds 30,000, and
18.22(2) the 2006 percentage of households receiving food stamps exceeds 15 percent, based
18.23on data used in computing county program aids for aids payable in 2008 and the 2006
18.24estimated household count according to the state demographer. The aid must be used to
18.25meet the county's cost of out-of-home placement programs.
18.26EFFECTIVE DATE.This section is effective for aids payable in 2009 and
18.27thereafter.

18.28    Sec. 6. Minnesota Statutes 2006, section 477A.013, subdivision 1, is amended to read:
18.29    Subdivision 1. Towns. ~~In 2002, no~~ In calendar year 2009 and subsequent years,
18.30each organized town is eligible for a distribution under this subdivision equal to $100 plus
18.31the product of the town aid factor multiplied by its population. Each county with one or
18.32more unorganized townships shall receive $100 plus the product of the town aid factor
18.33multiplied by the total population in all unorganized townships in the county.
19.1    The " town aid factor" is the same for all towns and must be calculated by the
19.2Department of Revenue so that the total aid under this subdivision equals the total amount
19.3available for aid under section 477A.03.
19.4EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.52009 and thereafter.

19.6    Sec. 7. Minnesota Statutes 2006, section 477A.013, subdivision 8, as amended by
19.7Laws 2008, chapter 154, article 1, section 2, is amended to read:
19.8    Subd. 8. City formula aid. In calendar year ~~2004~~ 2009 and subsequent years, the
19.9formula aid for a city is equal to the sum of (1) its city jobs base, (2) its small city aid
19.10base; and (3) the need increase percentage multiplied by the difference between ~~(1)~~ (i) the
19.11city's revenue need multiplied by its population, and ~~(2)~~ (ii) the sum of the city's net tax
19.12capacity multiplied by the tax effort rate.
19.13No city may have a formula aid amount less than zero. The need increase percentage
19.14must be the same for all cities.
19.15    The applicable need increase percentage must be calculated by the Department of
19.16Revenue so that the total of the aid under subdivision 9 equals the total amount available
19.17for aid under section 477A.03 ~~after the subtraction under section~~ ~~477A.014, subdivisions 4~~
19.18~~and 5~~ . For aids payable in 2009 only, a city's revenue need, population, net tax capacity,
19.19and tax effort rate will be based on the data available for calculating these factors for
19.20aids payable in 2008.
19.21EFFECTIVE DATE.This section is effective for aids payable in calendar year
19.222009 and thereafter.

19.23    Sec. 8. Minnesota Statutes 2006, section 477A.013, subdivision 9, as amended by
19.24Laws 2008, chapter 154, article 1, section 3, is amended to read:
19.25    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
19.26city shall receive an aid distribution equal to the sum of (1) the city formula aid under
19.27subdivision 8, and (2) its city aid base~~, and (3) one-half of the difference between its total~~
19.28~~aid in the previous year under this subdivision and its city aid base in the previous year~~.
19.29    (b) For aids payable in ~~2010 and thereafter, each city shall receive an aid distribution~~
19.30~~equal to (1) the city aid formula under subdivision 8, (2) its city aid base, and (3) its~~
19.31~~formula aid under subdivision 8 in the previous year, prior to any adjustments under this~~
19.32~~subdivision~~ 2009 only, the total aid for any city shall not exceed the sum of (1) 25 percent
19.33of the city's net levy for the year prior to the aid distribution, plus (2) its total aid in the
19.34previous year. For aids payable in 2009 only, the maximum allowed decrease under
20.1paragraphs (c) and (d) may not be less than the amount of aid received under Minnesota
20.2Statutes 2006, section 477A.011, subdivision 36, paragraph (s), for aids payable in 2008.
20.3    (c) For aids payable in ~~2009~~ 2010 and thereafter, the total aid for any city shall
20.4not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid
20.5distribution plus (2) its total aid in the previous year. For aids payable in 2009 and
20.6thereafter, the total aid for any city with a population of 2,500 or more may not be less
20.7than its total aid under this section in the previous year minus the lesser of $15 multiplied
20.8by its population, or ten percent of its net levy in the year prior to the aid distribution.
20.9    (d) For aids payable in 2009 and thereafter, the total aid for a city with a population
20.10less than 2,500 must not be less than the amount it was certified to receive in the previous
20.11year minus the lesser of $15 multiplied by its population, or five percent of its 2003
20.12certified aid amount.
20.13    (e) If a city's net tax capacity used in calculating aid under this section has decreased
20.14in any year by more than 25 percent from its net tax capacity in the previous year due to
20.15property becoming tax-exempt Indian land, the city's maximum allowed aid increase
20.16under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
20.17year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
20.18resulting from the property becoming tax exempt.
20.19EFFECTIVE DATE.This section is effective for aids payable in calendar year
20.202009 and thereafter.

20.21    Sec. 9. Minnesota Statutes 2006, section 477A.03, is amended to read:
20.22477A.03 APPROPRIATION.
20.23    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed
20.24by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
20.25commissioner of revenue.
20.26    Subd. 2a. Cities. For aids payable in ~~2004~~ 2009 and thereafter, the total ~~aids~~ aid paid
20.27under section 477A.013, subdivision 9, ~~are limited to $429,000,000~~ is $515,052,000. For
20.28aids payable in ~~2005, the total aids paid under section~~ ~~477A.013, subdivision 9, are limited~~
20.29~~to $437,052,000. For aids payable in 2006 and thereafter, the total aids paid under section~~
20.30~~477A.013, subdivision 9, is limited to $485,052,000~~ 2009 only, an additional $1,000,000
20.31shall be retained by the commissioner and used to make payments under section 10.
20.32    Subd. 2b. Counties. (a) ~~For aids payable in calendar year 2005 and thereafter,~~
20.33~~the total aids paid to counties under section~~ ~~477A.0124, subdivision 3, are limited to~~
20.34~~$100,500,000.~~ For aids payable in 2009 and thereafter, the total aid payable under section
20.35477A.0124, subdivision 3, is $110,500,000 minus one-half of the total aid amount
21.1determined under section 477A.0124, subdivision 5, paragraph (a). Each calendar year,
21.2$500,000 shall be retained by the commissioner of revenue to make reimbursements
21.3to the commissioner of finance for payments made under section 611.27. For calendar
21.4year 2004, the amount shall be in addition to the payments authorized under section
21.5477A.0124, subdivision 1 . For calendar year 2005 and subsequent years, the amount shall
21.6be deducted from the appropriation under this paragraph. The reimbursements shall be to
21.7defray the additional costs associated with court-ordered counsel under section 611.27.
21.8Any retained amounts not used for reimbursement in a year shall be included in the next
21.9distribution of county need aid that is certified to the county auditors for the purpose of
21.10property tax reduction for the next taxes payable year.
21.11    (b) For aids payable in ~~2005~~ 2009 and thereafter, the total ~~aids~~ aid under section
21.12477A.0124, subdivision 4 , ~~are limited to $105,000,000~~ is $115,132,923 minus one-half of
21.13the total aid amount determined under section 477A.0124, subdivision 5, paragraph (a).
21.14~~For aids payable in 2006 and thereafter, the total aid under section~~ ~~477A.0124, subdivision~~
21.154 ~~, is limited to $105,132,923.~~ The commissioner of finance shall bill the commissioner of
21.16revenue for the cost of preparation of local impact notes as required by section 3.987, not
21.17to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner of education
21.18shall bill the commissioner of revenue for the cost of preparation of local impact notes
21.19for school districts as required by section 3.987, not to exceed $7,000 in fiscal year 2004
21.20and thereafter. The commissioner of revenue shall deduct the amounts billed under
21.21this paragraph from the appropriation under this paragraph. The amounts deducted are
21.22appropriated to the commissioner of finance and the commissioner of education for the
21.23preparation of local impact notes.
21.24    Subd. 2c. Towns. For aids payable in 2009 and thereafter, the total aid under section
21.25477A.013, subdivision 1, is $3,000,000.
21.26EFFECTIVE DATE.This section is effective for aids payable in calendar year
21.272009 and thereafter.

21.28    Sec. 10. CITY FORECLOSURE GRANTS.
21.29    For calendar 2009 only, a city with a concentration of foreclosures within the city
21.30or within a zip code area of a city in calendar year 2007, may receive a grant under this
21.31section. A "concentration of foreclosures" means that the percent of housing in foreclosure
21.32within the area is at least fifty percent higher than the average percent of housing in
21.33foreclosure in the metropolitan area, as defined in section 477A.121, subdivision 2. The
21.34city must apply to the commissioner of revenue by December 30, 2008, on the form
22.1prescribed by the commissioner. The grant will be paid with other aids paid in calendar
22.2year 2009, as prescribed in section 477A.015.
22.3    The commissioner of revenue shall consult with the commissioner of the State
22.4Housing Finance Agency, to develop a form for cities to use when applying for grants
22.5under this section and to determine whether applications qualify. The appropriation for the
22.6grants under section 477A.03 shall be divided between successful applicants based on
22.7the number of foreclosures in the area meeting the concentration criteria. No city may
22.8receive a grant of more than $250,000. All decisions by the commissioner regarding grant
22.9qualification and amount shall be final. The grant must be used to fund inspection and
22.10public safety costs associated with housing foreclosures.
22.11EFFECTIVE DATE.This section is effective for grants made in calendar year 2009.

22.12    Sec. 11. STUDY OF AIDS TO LOCAL GOVERNMENTS.
22.13    The chairs of the senate and house of representatives committees on taxes shall each
22.14appoint five members to a study group of the tax committees to examine the current
22.15system of aids to local governments and make recommendations on improvements to
22.16the system. Of the five members appointed by each chair, two must be members of the
22.17tax committee, one who is a majority party member and one who is a minority party
22.18member. The remaining members must represent local units of government. The chairs
22.19of the divisions of the tax committees having jurisdiction over property taxes shall also
22.20be members and shall serve as co-chairs of the study group. The study shall include,
22.21but not be limited to, consideration of existing disparities in the distribution of local
22.22government aid, the relationship of need for city aid to other sources of revenue such as
22.23local sales taxes, an analysis of current law need and capacity factors as well as alternative
22.24need factors, alternative analytical methods for determining correlations between factors
22.25and need, the formula used to calculate aid for small cities, and volatility in the local
22.26government aid distribution. The group must report on its specific recommendations
22.27to the legislature by December 15, 2010.
22.28EFFECTIVE DATE.This section is effective the day following final enactment.

22.29ARTICLE 3

22.30PROPERTY TAXES

22.31    Section 1. Minnesota Statutes 2006, section 216B.1646, is amended to read:
22.32216B.1646 RATE ~~REDUCTION~~ ADJUSTMENT; PROPERTY TAX
22.33~~REDUCTION~~ CHANGE.
23.1    (a) The commission shall, by any method the commission finds appropriate, ~~reduce~~
23.2adjust the rates each ~~electric~~ utility subject to rate regulation by the commission charges
23.3its customers to reflect, on an ongoing basis, the amount by which each utility's property
23.4tax, including the state general tax, if applicable, on the personal property of its electric
23.5system ~~from taxes payable in 2001 to taxes payable in 2002 is reduced~~ or pipeline system
23.6transporting or distributing natural gas is changed under this act. The commission must
23.7ensure that, to the extent feasible, each dollar of personal property tax ~~reduction allocated~~
23.8~~to Minnesota consumers retroactive to January 1, 2002,~~ change in taxes payable in 2009
23.9and subsequent years results in a dollar of ~~savings~~ adjustment to the utility's ~~customers~~
23.10rates. ~~A utility may voluntarily pass on any additional property tax savings allocated in~~
23.11~~the same manner as approved by the commission under this paragraph.~~ The adjustment
23.12under this paragraph is outside of a general rate case proceeding under section 216B.16.
23.13    (b) ~~By April 10, 2002,~~ Each utility ~~shall~~ may submit a filing to the commission
23.14containing:
23.15    (1) certified information regarding the utility's property tax ~~savings~~ change allocated
23.16to Minnesota retail customers; and
23.17    (2) a proposed method of ~~passing these savings on~~ adjusting rates to Minnesota
23.18retail customers.
23.19The utility shall provide the information in clause (1) to the commissioner of revenue at
23.20the same time. The commissioner shall notify the commission within 30 days as to the
23.21accuracy of the property tax data submitted by the utility.
23.22    (c) For purposes of this section, "personal property" means tools, implements, and
23.23machinery of ~~the generating plant. It does not apply to transformers, transmission lines,~~
23.24~~distribution lines, or any other tools, implements, and machinery that are part of an electric~~
23.25~~substation, wherever located~~ an electric system or of a pipeline system transporting or
23.26distributing natural gas.

23.27    Sec. 2. Minnesota Statutes 2006, section 270C.85, subdivision 2, is amended to read:
23.28    Subd. 2. Powers and duties. The commissioner shall have and exercise the
23.29following powers and duties in administering the property tax laws.
23.30    (a) Confer with, advise, and give the necessary instructions and directions to local
23.31assessors and local boards of review throughout the state as to their duties under the
23.32laws of the state.
23.33    (b) Direct proceedings, actions, and prosecutions to be instituted to enforce the
23.34laws relating to the liability and punishment of public officers and officers and agents of
23.35corporations for failure or negligence to comply with the provisions of the property tax
24.1laws, and cause complaints to be made against local assessors, members of boards of
24.2equalization, members of boards of review, or any other assessing or taxing officer, to the
24.3proper authority, for their removal from office for misconduct or negligence of duty.
24.4    (c) Require county attorneys to assist in the commencement of prosecutions in
24.5actions or proceedings for removal, forfeiture, and punishment, for violation of the
24.6property tax laws in their respective districts or counties.
24.7    (d) Require town, city, county, and other public officers to report information as to
24.8the assessment of property, and such other information as may be needful in the work of
24.9the commissioner, in such form as the commissioner may prescribe.
24.10    (e) Transmit to the governor, on or before the third Monday in December of each
24.11even-numbered year, and to each member of the legislature, on or before November
24.1215 of each even-numbered year, the report of the department for the preceding years,
24.13showing all the taxable property subject to the property tax laws and the value of the
24.14same, in tabulated form.
24.15    (f) Inquire into the methods of assessment and taxation and ascertain whether the
24.16assessors faithfully discharge their duties.
24.17    (g) Assist local assessors in determining the estimated market value of industrial
24.18special-use property. For purposes of this paragraph, "industrial special-use property"
24.19means property that:
24.20    (1) is designed and equipped for a particular type of industry;
24.21    (2) is not easily adapted to some other use due to the unique nature of the facilities;
24.22    (3) has facilities totaling at least 75,000 square feet in size; and
24.23    (4) has a total estimated market value of $10,000,000 or greater based on the
24.24assessor's preliminary determination.
24.25EFFECTIVE DATE.This section is effective for assessment year 2009 and
24.26thereafter, for taxes payable in 2010 and thereafter.

24.27    Sec. 3. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
24.28to read:
24.29    Subd. 85. Fergus Falls historical zone. (a) Property located in the area of the
24.30campus of the former state regional treatment center in the city of Fergus Falls, including
24.31the five buildings and associated land that were acquired by the city prior to January 1,
24.322007, is exempt from ad valorem taxes levied under chapter 275.
24.33    (b) The exemption applies for 15 calendar years from the date specified by resolution
24.34of the governing body of the city of Fergus Falls. For the final three assessment years of
25.1the duration limit, the exemption applies to the following percentages of estimated market
25.2value of the property:
25.3    (1) for the third to the last assessment year of the duration, 75 percent;
25.4    (2) for the second to the last assessment year of the duration, 50 percent; and
25.5    (3) for the last assessment year of the duration, 25 percent.
25.6EFFECTIVE DATE.This section is effective for property taxes payable in 2009
25.7and thereafter.

25.8    Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
25.9to read:
25.10    Subd. 85. Electric generation facility; personal property. (a) Notwithstanding
25.11subdivision 9, paragraph (a), attached machinery and other personal property which is
25.12part of a simple-cycle combustion-turbine electric generation facility that exceeds 150
25.13megawatts of installed capacity and that meets the requirements of this subdivision is
25.14exempt. At the time of construction, the facility must:
25.15    (1) utilize natural gas as a primary fuel;
25.16    (2) be owned by an electric generation and transmission cooperative;
25.17    (3) be located within one mile of an existing 16-inch natural gas pipeline and a
25.1869-kilovolt and a 230-kilovolt high-voltage electric transmission line;
25.19    (4) be designed to provide peaking, emergency backup, or contingency services;
25.20    (5) have received a certificate of need under section 216B.243 demonstrating
25.21demand for its capacity; and
25.22    (6) have received by resolution the approval from the governing bodies of the county
25.23and the city in which the proposed facility is to be located for the exemption of personal
25.24property under this subdivision.
25.25    (b) Construction of the facility must be commenced after January 1, 2008, and
25.26before January 1, 2012. Property eligible for this exemption does not include electric
25.27transmission lines and interconnections or gas pipelines and interconnections appurtenant
25.28to the property or the facility.
25.29EFFECTIVE DATE.This section is effective for the 2008 assessment payable in
25.302009 and thereafter.

25.31    Sec. 5. [273.0645] COMMISSIONER REVIEW OF LOCAL ASSESSMENT
25.32PRACTICES.
26.1    The commissioner of revenue must review the assessment practices in a taxing
26.2jurisdiction if requested in writing by a qualifying number of property owners in that
26.3taxing jurisdiction. The request must be signed by the greater of:
26.4    (1) one percent of the property owners; or
26.5    (2) five property owners.
26.6    The request must identify the city, town, or county and describe why a review is
26.7sought for that taxing jurisdiction. The commissioner must conduct the review in a
26.8reasonable amount of time and report the findings to the county board of the affected
26.9county, to the affected city council or town board, if the review is for a specific city or
26.10town, and to the property owner designated in the request as the person to receive the
26.11report on behalf of all the property owners who signed the request. The commissioner
26.12must also provide the report electronically to all property owners who signed the request
26.13and provided an e-mail address in order to receive the report electronically.
26.14EFFECTIVE DATE.This section is effective the day following final enactment.

26.15    Sec. 6. Minnesota Statutes 2006, section 273.11, subdivision 1, is amended to read:
26.16    Subdivision 1. Generally. Except as provided in this section or section 273.17,
26.17subdivision 1 , all property shall be valued at its market value. The market value as
26.18determined pursuant to this section shall be stated such that any amount under $100 is
26.19rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
26.20In estimating and determining such value, the assessor shall not adopt a lower or different
26.21standard of value because the same is to serve as a basis of taxation, nor shall the assessor
26.22adopt as a criterion of value the price for which such property would sell at a forced
26.23sale, or in the aggregate with all the property in the town or district; but the assessor
26.24shall value each article or description of property by itself, and at such sum or price as
26.25the assessor believes the same to be fairly worth in money. The assessor shall take into
26.26account the effect on the market value of property of environmental factors in the vicinity
26.27of the property, and the market value effect of foreclosed property on all property in the
26.28vicinity due to the foreclosures. In assessing any tract or lot of real property, the value
26.29of the land, exclusive of structures and improvements, shall be determined, and also the
26.30value of all structures and improvements thereon, and the aggregate value of the property,
26.31including all structures and improvements, excluding the value of crops growing upon
26.32cultivated land. In valuing real property upon which there is a mine or quarry, it shall be
26.33valued at such price as such property, including the mine or quarry, would sell for at a fair,
26.34voluntary sale, for cash, if the material being mined or quarried is not subject to taxation
26.35under section 298.015 and the mine or quarry is not exempt from the general property
27.1tax under section 298.25. In valuing real property which is vacant, platted property shall
27.2be assessed as provided in subdivision 14. All property, or the use thereof, which is
27.3taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market
27.4value of such property and not at the value of a leasehold estate in such property, or at
27.5some lesser value than its market value.
27.6EFFECTIVE DATE.This section is effective for the 2009 assessment and
27.7thereafter.

27.8    Sec. 7. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to
27.9read:
27.10    Subd. 24. Rural vacant land abutting public waters. (a) Any property that:
27.11    (1) is located in a township;
27.12    (2) is classified as either (i) agricultural property under section 273.13, subdivision
27.1323, paragraph (b), or (ii) rural vacant land under section 273.13, subdivision 23, paragraph
27.14(c), contiguous to agricultural property under the same ownership with at least two-thirds
27.15of the acreage used for agricultural purposes;
27.16    (3) is not enrolled in the Minnesota agricultural property tax law under section
27.17273.111; and
27.18    (4) abuts public waters in whole or in part,
27.19    shall be valued by the assessor on the same basis as rural vacant land of the same
27.20quality that does not abut public waters, until some action is taken to develop the land as
27.21specified in paragraph (c).
27.22    (b) In each assessment year, the assessor shall determine the estimated market value
27.23of the property as provided under subdivision 1, taking into consideration its highest
27.24and best use. For each year that the property is classified under this subdivision, the
27.25property tax statement shall include a notice that the property is being taxed under a
27.26reduced valuation that will terminate under certain conditions.
27.27    (c) An owner of property meeting the criteria of this subdivision must notify the
27.28county assessor within 30 days of applying for a development permit from the county
27.29or local zoning board. If development permits are not required, an owner of property
27.30meeting the criteria of this subdivision must notify the assessor prior to all or any portion
27.31of the property being platted or subdivided.
27.32    (d) When any of the conditions specified in paragraph (c) occurs, additional taxes
27.33shall be imposed in an amount equal to: (1) the average of the difference between the
27.34amount of taxes actually levied on the property in the current year and the two prior years,
27.35and the amount of taxes that would have been levied in the current year and the two prior
28.1years based on the estimated market value determined under paragraph (b); (2) multiplied
28.2by seven. The additional taxes shall be extended against the property on the tax list for the
28.3current year, provided that no interest or penalties shall be levied on the additional taxes if
28.4timely paid. For purposes of this subdivision, "public waters" means a meandered lake as
28.5defined under section 103G.005, subdivision 15, paragraph (a), clause (3).
28.6EFFECTIVE DATE.This section is effective for the 2009 assessment and
28.7thereafter.

28.8    Sec. 8. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to
28.9read:
28.10    Subd. 25. Limit on taxable valuation; certain restored homes. A homestead
28.11property that either (i) has gone through foreclosure or (ii) is located within a disaster
28.12or emergency area and sustained physical damage of at least $5,000 in the disaster or
28.13emergency, is eligible for valuation limitation under this subdivision. To qualify for the
28.14limitation, the property must:
28.15    (i) have been restored or rebuilt within 18 months of the foreclosure or the disaster
28.16or emergency;
28.17    (ii) have a gross living area that does not exceed 130 percent of the gross living area
28.18prior to the foreclosure or the disaster or emergency, and
28.19    (iii) have an estimated market value that exceeds its taxable market value for the
28.20assessment year of the foreclosure or the disaster or emergency due to the restoration or
28.21reconstruction.
28.22    In the first assessment year following the restoration or reconstruction, the taxable
28.23value shall be equal to three-quarters of its taxable value in the assessment year of the
28.24foreclosure or disaster or emergency, plus one-quarter of its current estimated market
28.25value. In the second assessment year following the restoration or reconstruction, the
28.26taxable value shall be equal to one-half of its taxable value in the assessment year of the
28.27foreclosure or disaster or emergency, and one-half of its current estimated market value.
28.28In the third assessment year following the restoration or reconstruction, the taxable value
28.29shall be equal to one-quarter of its taxable value in the assessment year of the foreclosure
28.30or disaster or emergency, and three-quarters of its current estimated market value. For
28.31the three assessment years immediately following the restoration or reconstruction, the
28.32property is not subject to the valuation limit under subdivision 1a.
28.33    For the purposes of this subdivision:
29.1    (i) "disaster or emergency area" means an area in which the president of the United
29.2States or the administrator of the small business administration has determined that a
29.3disaster exists pursuant to federal law;
29.4    (ii) "gone through foreclosure" means that a foreclosure sale has been held and that
29.5the person who owned the home prior to the sale did not redeem it from the sale under
29.6section 580.23; and
29.7    (iii) "gross living area" means the square footage of the home that would customarily
29.8be used as living space.
29.9EFFECTIVE DATE.This section is effective for assessment year 2009 and
29.10thereafter.

29.11    Sec. 9. Minnesota Statutes 2006, section 273.111, subdivision 3, as amended by Laws
29.122008, chapter 154, article 13, section 26, is amended to read:
29.13    Subd. 3. Requirements. (a) Real estate consisting of ~~ten~~ three acres or more or
29.14a nursery or greenhouse, and qualifying for classification as class ~~1b,~~ 2a~~, or 2b~~ under
29.15section 273.13, shall be entitled to valuation and tax deferment under this section ~~only~~
29.16if it ~~is primarily devoted to agricultural use, and meets the qualifications in subdivision~~
29.17~~6, and either~~:
29.18    (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
29.19owner or is real estate which is farmed with the real estate which contains the homestead
29.20property; or
29.21    (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
29.22or any combination thereof, for a period of at least seven years prior to application for
29.23benefits under the provisions of this section, or is real estate which is farmed with the
29.24real estate which qualifies under this clause and is within four townships or cities or
29.25combination thereof from the qualifying real estate; or
29.26    (3) is the homestead of ~~a shareholder in a family farm corporation as defined in~~ an
29.27individual who is part of an entity in compliance with section 500.24~~, notwithstanding~~
29.28~~the fact that legal title to the real estate may be held in the name of the family farm~~
29.29~~corporation~~; or
29.30    (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
29.31partnership, or corporation which also owns the nursery or greenhouse operations on the
29.32parcel or parcels, provided that only the acres used to produce nursery stock qualify
29.33for treatment under this section.
29.34    (b) ~~Valuation of real estate under this section is limited to parcels the ownership of~~
29.35~~which is in noncorporate entities except for:~~
30.1    ~~(1) family farm corporations organized pursuant to section~~ ~~500.24; and~~
30.2    ~~(2) corporations that derive 80 percent or more of their gross receipts from the~~
30.3~~wholesale or retail sale of horticultural or nursery stock.~~
30.4    ~~(c)~~ Land that previously qualified for tax deferment under this section and no longer
30.5qualifies because it is not primarily used for agricultural purposes but would otherwise
30.6qualify under ~~subdivisions~~ Minnesota Statutes 2006, section 273.111, subdivision 3, ~~and 6~~
30.7for a period of at least three years will not be required to make payment of the previously
30.8deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to
30.9the expiration of the three-year period requires payment of deferred taxes as follows: sale
30.10in the year the land no longer qualifies requires payment of the current year's deferred
30.11taxes plus payment of deferred taxes for the two prior years; sale during the second year
30.12the land no longer qualifies requires payment of the current year's deferred taxes plus
30.13payment of the deferred taxes for the prior year; and sale during the third year the land
30.14no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes
30.15shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is
30.16sold or no longer qualifies under this paragraph, or at the end of the three-year period,
30.17whichever comes first, all deferred special assessments plus interest are payable in equal
30.18installments spread over the time remaining until the last maturity date of the bonds issued
30.19to finance the improvement for which the assessments were levied. If the bonds have
30.20matured, the deferred special assessments plus interest are payable within 90 days. The
30.21provisions of section 429.061, subdivision 2, apply to the collection of these installments.
30.22Penalties are not imposed on any such special assessments if timely paid.
30.23EFFECTIVE DATE.This section is effective for assessment year 2009, taxes
30.24payable in 2010 and thereafter.

30.25    Sec. 10. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision
30.26to read:
30.27    Subd. 3a. Property no longer eligible for deferment. Real estate that qualifies for
30.28tax deferment under this section for assessment year 2008, but which does not qualify
30.29for the current assessment year due to changes in qualification requirements under this
30.30act, shall continue to qualify until the land is sold or transferred, provided that the
30.31property continues to meet the requirements of Minnesota Statutes 2006, section 273.111,
30.32subdivision 3.
30.33EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
30.34thereafter.

31.1    Sec. 11. Minnesota Statutes 2006, section 273.111, subdivision 4, is amended to read:
31.2    Subd. 4. Determination of value. (a) The value of any real estate described
31.3in subdivision 3 shall upon timely application by the owner, in the manner provided
31.4in subdivision 8, be determined solely with reference to its appropriate agricultural
31.5classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. In
31.6~~determining the value for ad valorem tax purposes, the assessor shall use sales data for~~
31.7~~agricultural lands located outside the seven metropolitan counties having similar soil~~
31.8~~types, number of degree days, and other similar agricultural characteristics.~~ Furthermore,
31.9the assessor shall not consider any added values resulting from nonagricultural factors.
31.10In order to account for the presence of nonagricultural influences that may affect the value
31.11of agricultural land, the commissioner of revenue shall develop a fair and uniform method
31.12of determining agricultural values for each county in the state that are consistent with this
31.13subdivision. The commissioner shall annually assign the resulting values to each county,
31.14and these values shall be used as the basis for determining the agricultural value for all
31.15properties in the county qualifying for tax deferment under this section.
31.16    (b) In the case of property qualifying for tax deferment only under subdivision 3a
31.17of this section, the value shall be based on the value in effect for assessment year 2008,
31.18multiplied by the ratio of the total taxable market value of all property in the county for
31.19the current assessment year divided by the total taxable market value of all property
31.20in the county for assessment year 2008.
31.21EFFECTIVE DATE.This section is effective for assessment year 2009 and
31.22thereafter.

31.23    Sec. 12. Minnesota Statutes 2006, section 273.111, subdivision 8, is amended to read:
31.24    Subd. 8. Application. Application for deferment of taxes and assessment under this
31.25section shall be filed by May 1 of the year prior to the year in which the taxes are payable.
31.26Any application filed hereunder and granted shall continue in effect for subsequent years
31.27until the property no longer qualifies. Such application shall be filed with the assessor of
31.28the taxing district in which the real property is located on such form as may be prescribed
31.29by the commissioner of revenue. The assessor may require proof by affidavit or otherwise
31.30that the property qualifies under ~~subdivisions~~ subdivision 3 ~~and 6~~.
31.31EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
31.32thereafter.

31.33    Sec. 13. Minnesota Statutes 2006, section 273.111, subdivision 9, is amended to read:
32.1    Subd. 9. Additional taxes. When real property which is being, or has been valued
32.2and assessed under this section no longer qualifies under ~~subdivisions~~ subdivision 3
32.3~~and 6~~ or 3a, the portion no longer qualifying shall be subject to additional taxes, in the
32.4amount equal to the average difference between the taxes determined in accordance with
32.5subdivision 4, and the amount determined under subdivision 5, for the current year and the
32.6two preceding years, multiplied by seven. Provided, however, that the amount determined
32.7under subdivision 5 shall not be greater than it would have been had the actual bona fide
32.8sale price of the real property at an arm's-length transaction been used in lieu of the market
32.9value determined under subdivision 5. Such additional taxes shall be extended against
32.10the property on the tax list for the current year, provided, however, that no interest or
32.11penalties shall be levied on such additional taxes if timely paid~~, and provided further, that~~
32.12~~such additional taxes shall only be levied with respect to the last three years that the said~~
32.13~~property has been valued and assessed under this section~~.
32.14EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
32.15thereafter.

32.16    Sec. 14. Minnesota Statutes 2006, section 273.111, subdivision 11, is amended to read:
32.17    Subd. 11. Special local assessments. The payment of special local assessments
32.18levied after June 1, 1967, for improvements made to any real property described in
32.19subdivision 3 together with the interest thereon shall, on timely application as provided
32.20in subdivision 8, be deferred as long as such property meets the conditions contained in
32.21~~subdivisions~~ subdivision 3 ~~and 6~~ or 3a or is transferred to an agricultural preserve under
32.22sections 473H.02 to 473H.17. If special assessments against the property have been
32.23deferred pursuant to this subdivision, the governmental unit shall file with the county
32.24recorder in the county in which the property is located a certificate containing the legal
32.25description of the affected property and of the amount deferred. When such property
32.26no longer qualifies under ~~subdivisions~~ subdivision 3 ~~and 6~~ or 3a, all deferred special
32.27assessments plus interest shall be payable in equal installments spread over the time
32.28remaining until the last maturity date of the bonds issued to finance the improvement
32.29for which the assessments were levied. If the bonds have matured, the deferred special
32.30assessments plus interest shall be payable within 90 days. The provisions of section
32.31429.061, subdivision 2 , apply to the collection of these installments. Penalty shall not be
32.32levied on any such special assessments if timely paid.
32.33EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
32.34thereafter.

33.1    Sec. 15. Minnesota Statutes 2006, section 273.111, subdivision 11a, is amended to read:
33.2    Subd. 11a. Continuation of tax treatment upon sale. When real property
33.3qualifying under ~~subdivisions~~ subdivision 3 ~~and 6~~ is sold, no additional taxes or deferred
33.4special assessments plus interest shall be extended against the property provided the
33.5property continues to qualify pursuant to ~~subdivisions~~ subdivision 3 ~~and 6~~, and provided
33.6the new owner files an application for continued deferment within 30 days after the sale.
33.7    ~~For purposes of meeting the income requirements of subdivision 6, the property~~
33.8~~purchased shall be considered in conjunction with other qualifying property owned by~~
33.9~~the purchaser.~~
33.10EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
33.11thereafter.

33.12    Sec. 16. [273.113] TAX CREDIT FOR PROPERTY IN BOVINE
33.13TUBERCULOSIS MANAGEMENT ZONES.
33.14    Subdivision 1. Definition. For the purposes of this section, "bovine tuberculosis
33.15management zone" means the area within the ten-mile radius around the five presumptive
33.16tuberculosis-positive deer sampled during the fall 2006 hunter-harvested surveillance
33.17effort.
33.18    Subd. 2. Eligibility; credit on agricultural land; cattle herds. Land classified
33.19as class 2a or 2b under section 273.13, subdivision 23, located in a bovine tuberculosis
33.20management zone is eligible for a property tax credit if the property owner has eradicated
33.21a cattle herd that had been kept on that land for at least part of the year in order to prevent
33.22the onset or spread of bovine tuberculosis. The net credit is equal to that portion of the tax
33.23relating to the market value of the land on the parcels where the herd had been located
33.24after all other applicable credits have been deducted. To initially qualify for the tax credit,
33.25the property owner shall file an application with the county by January 2 of the year
33.26following the calendar year when the herd was eradicated. The credit must be given for
33.27each taxes payable year following the calendar year when the herd was eradicated and
33.28must terminate for all taxes payable years beginning after the calendar year when a new
33.29herd of cattle was placed on the land. The auditor shall indicate the amount of the property
33.30tax reduction on the property tax statement of each taxpayer receiving a credit under
33.31this section. Notwithstanding section 276.04, subdivision 3, property tax statements of
33.32properties eligible for a credit under this section must be mailed no later than April 15.
33.33    Subd. 3. Eligibility; credit on hunting land; deer and elk herds. Land located in
33.34a bovine tuberculosis management zone that is primarily used for hunting purposes, is
33.35eligible for a property tax credit if (1) the property owner or the Department of Natural
34.1Resources has eradicated the deer and elk herd on that land in order to prevent the onset or
34.2spread of bovine tuberculosis, (2) the property owner adheres strictly to the deer and elk
34.3feeding ban, and (3) the property owner makes every effort to keep their land free of deer
34.4and elk. The net credit is equal to the property tax on the parcel where the herd had been
34.5located after all other applicable credits have been deducted. The credit is only on that
34.6portion of the tax relating to the market value of the land. To initially qualify for the tax
34.7credit, the property owner shall file an application with the county by January 2 of the
34.8year following the calendar year when the deer or elk herd was eradicated. To receive
34.9the tax credit in subsequent years, the property owner shall file by January 2 of each
34.10subsequent year until the state is upgraded to a bovine tuberculosis status of modified
34.11accredited advanced. The county board must approve the application before the credit
34.12is allowed. The credit is for each taxes payable year following the calendar year when
34.13the deer or elk herd was eradicated and must terminate as provided in subdivision 5.
34.14The auditor shall indicate the amount of the property tax reduction on the property tax
34.15statement of each taxpayer receiving a credit under this section. Notwithstanding section
34.16276.04, subdivision 3, property tax statements of properties eligible for a credit under this
34.17section must be mailed no later than April 15.
34.18    Subd. 4. Reimbursement for lost revenue; appropriations. The county auditor
34.19shall certify to the commissioner of revenue, as part of the abstracts of tax lists required to
34.20be filed with the commissioner under section 275.29, the amount of tax lost to the county
34.21from the property tax credit under this section after all other applicable credits have been
34.22deducted. Any prior year adjustments must also be certified in the abstracts of tax lists.
34.23The commissioner of revenue shall review the certifications to determine their accuracy.
34.24The commissioner may make the changes in the certification that are considered necessary
34.25or return a certification to the county auditor for corrections. The commissioner shall
34.26reimburse each taxing district for the taxes lost. The payments must be made at the time
34.27provided in section 273.1398, subdivision 6, for payment to taxing jurisdictions in the
34.28same proportion that the ad valorem tax is distributed. The amount necessary to make the
34.29reimbursements under this section is annually appropriated from the general fund to the
34.30commissioner of revenue. The credits paid under this section shall be deducted from the
34.31tax due on the property as provided in section 273.1393.
34.32    Subd. 5. Termination of credit. The credit provided under this section ceases to
34.33be available beginning with any assessment year following the date when the United
34.34States Department of Agriculture publishes notice in the Federal Register that the state is
34.35upgraded to a bovine tuberculosis status of modified accredited advanced.
34.36EFFECTIVE DATE.This section is effective beginning with taxes payable in 2009.

35.1    Sec. 17. Minnesota Statutes 2006, section 273.121, as amended by Laws 2008, chapter
35.2154, article 13, section 28, is amended to read:
35.3273.121 VALUATION OF REAL PROPERTY, NOTICE.
35.4    Subdivision 1. Notice. Any county assessor or city assessor having the powers of a
35.5county assessor, valuing or classifying taxable real property shall in each year notify those
35.6persons whose property is to be included on the assessment roll that year if the person's
35.7address is known to the assessor, otherwise the occupant of the property. The notice shall
35.8be in writing and shall be sent by ordinary mail at least ten days before the meeting of
35.9the local board of appeal and equalization under section 274.01 or the review process
35.10established under section 274.13, subdivision 1c. Upon written request by the owner of the
35.11property, the assessor may send the notice in electronic form or by electronic mail instead
35.12of on paper or by ordinary mail. It shall contain: (1) the market value for the current and
35.13prior assessment, (2) the limited market value under section 273.11, subdivision 1a, for
35.14the current and prior assessment, (3) the qualifying amount of any improvements under
35.15section 273.11, subdivision 16, for the current assessment, (4) the market value subject
35.16to taxation after subtracting the amount of any qualifying improvements for the current
35.17assessment, (5) the classification of the property for the current and prior assessment,
35.18(6) a note that if the property is homestead and at least 45 years old, improvements
35.19made to the property may be eligible for a valuation exclusion under section 273.11,
35.20subdivision 16 , (7) the assessor's office address, and (8) the dates, places, and times set for
35.21the meetings of the local board of appeal and equalization, the review process established
35.22under section 274.13, subdivision 1c, and the county board of appeal and equalization.
35.23The commissioner of revenue shall specify the form of the notice. The assessor shall
35.24attach to the assessment roll a statement that the notices required by this section have been
35.25mailed. Any assessor who is not provided sufficient funds from the assessor's governing
35.26body to provide such notices, may make application to the commissioner of revenue
35.27to finance such notices. The commissioner of revenue shall conduct an investigation
35.28and, if satisfied that the assessor does not have the necessary funds, issue a certification
35.29to the commissioner of finance of the amount necessary to provide such notices. The
35.30commissioner of finance shall issue a warrant for such amount and shall deduct such
35.31amount from any state payment to such county or municipality. The necessary funds to
35.32make such payments are hereby appropriated. Failure to receive the notice shall in no way
35.33affect the validity of the assessment, the resulting tax, the procedures of any board of
35.34review or equalization, or the enforcement of delinquent taxes by statutory means.
36.1    Subd. 2. Availability of data. The notice must state where the information on
36.2the property is available, the times when the information may be viewed by the public,
36.3and the county's website address.
36.4EFFECTIVE DATE.This section is effective for notices prepared in 2009 and
36.5thereafter.

36.6    Sec. 18. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:
36.7    Subdivision 1. General rule. (a) Residential real estate that is occupied and used
36.8for the purposes of a homestead by its owner, who must be a Minnesota resident, is
36.9a residential homestead.
36.10    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and
36.11used as a homestead by its owner, who must be a Minnesota resident, is an agricultural
36.12homestead.
36.13    Dates for establishment of a homestead and homestead treatment provided to
36.14particular types of property are as provided in this section.
36.15    Property held by a trustee under a trust is eligible for homestead classification if the
36.16requirements under this chapter are satisfied.
36.17    The assessor shall require proof, as provided in subdivision 13, of the facts upon
36.18which classification as a homestead may be determined. Notwithstanding any other law,
36.19the assessor may at any time require a homestead application to be filed in order to verify
36.20that any property classified as a homestead continues to be eligible for homestead status.
36.21Notwithstanding any other law to the contrary, the Department of Revenue may, upon
36.22request from an assessor, verify whether an individual who is requesting or receiving
36.23homestead classification has filed a Minnesota income tax return as a resident for the most
36.24recent taxable year for which the information is available.
36.25    When there is a name change or a transfer of homestead property, the assessor may
36.26reclassify the property in the next assessment unless a homestead application is filed to
36.27verify that the property continues to qualify for homestead classification.
36.28    (b) For purposes of this section, homestead property shall include property which
36.29is used for purposes of the homestead but is separated from the homestead by a road,
36.30street, lot, waterway, or other similar intervening property. The term "used for purposes
36.31of the homestead" shall include but not be limited to uses for gardens, garages, or other
36.32outbuildings commonly associated with a homestead, but shall not include vacant land
36.33held primarily for future development. In order to receive homestead treatment for
36.34the noncontiguous property, the owner must use the property for the purposes of the
36.35homestead, and must apply to the assessor, both by the deadlines given in subdivision
37.19. After initial qualification for the homestead treatment, additional applications for
37.2subsequent years are not required.
37.3    (c) Residential real estate that is occupied and used for purposes of a homestead by a
37.4relative of the owner is a homestead but only to the extent of the homestead treatment
37.5that would be provided if the related owner occupied the property. For purposes of this
37.6paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild,
37.7grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship
37.8may be by blood or marriage. Property that has been classified as seasonal residential
37.9recreational property at any time during which it has been owned by the current owner or
37.10spouse of the current owner will not be reclassified as a homestead unless it is occupied as
37.11a homestead by the owner; this prohibition also applies to property that, in the absence of
37.12this paragraph, would have been classified as seasonal residential recreational property at
37.13the time when the residence was constructed. Neither the related occupant nor the owner
37.14of the property may claim a property tax refund under chapter 290A for a homestead
37.15occupied by a relative. In the case of a residence located on agricultural land, only the
37.16house, garage, and immediately surrounding one acre of land shall be classified as a
37.17homestead under this paragraph, except as provided in paragraph (d).
37.18    (d) Agricultural property that is occupied and used for purposes of a homestead by
37.19a relative of the owner, is a homestead, only to the extent of the homestead treatment
37.20that would be provided if the related owner occupied the property, and only if all of the
37.21following criteria are met:
37.22    (1) the relative who is occupying the agricultural property is a son, daughter, brother,
37.23sister, grandson, granddaughter, father, or mother of the owner of the agricultural property
37.24or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner
37.25of the agricultural property;
37.26    (2) the owner of the agricultural property must be a Minnesota resident;
37.27    (3) the owner of the agricultural property must not receive homestead treatment on
37.28any other agricultural property in Minnesota; and
37.29    (4) the owner of the agricultural property is limited to only one agricultural
37.30homestead per family under this paragraph.
37.31    Neither the related occupant nor the owner of the property may claim a property
37.32tax refund under chapter 290A for a homestead occupied by a relative qualifying under
37.33this paragraph. For purposes of this paragraph, "agricultural property" means the house,
37.34garage, other farm buildings and structures, and agricultural land.
38.1    Application must be made to the assessor by the owner of the agricultural property to
38.2receive homestead benefits under this paragraph. The assessor may require the necessary
38.3proof that the requirements under this paragraph have been met.
38.4    (e) In the case of property owned by a property owner who is married, the assessor
38.5must not deny homestead treatment in whole or in part if only one of the spouses occupies
38.6the property and the other spouse is absent due to: (1) marriage dissolution proceedings,
38.7(2) legal separation, (3) employment or self-employment in another location, or (4) other
38.8personal circumstances causing the spouses to live separately, not including an intent to
38.9obtain two homestead classifications for property tax purposes. To qualify under clause
38.10(3), the spouse's place of employment or self-employment must be at least 50 miles distant
38.11from the other spouse's place of employment, and the homesteads must be at least 50 miles
38.12distant from each other. Homestead treatment, in whole or in part, shall not be denied to
38.13the owner's spouse who previously occupied the residence with the owner if the absence
38.14of the owner is due to one of the exceptions provided in this paragraph.
38.15    (f) The assessor must not deny homestead treatment in whole or in part if:
38.16    (1) in the case of a property owner who is not married, the owner is absent due to
38.17residence in a nursing home, boarding care facility, or an elderly assisted living facility
38.18property as defined in section 273.13, subdivision 25a, and the property is not otherwise
38.19occupied; or
38.20    (2) in the case of a property owner who is married, the owner or the owner's spouse
38.21or both are absent due to residence in a nursing home, boarding care facility, or an elderly
38.22assisted living facility property as defined in section 273.13, subdivision 25a, and the
38.23property is not occupied or is occupied only by the owner's spouse.
38.24    (g) If an individual is purchasing property with the intent of claiming it as a
38.25homestead and is required by the terms of the financing agreement to have a relative
38.26shown on the deed as a co-owner, the assessor shall allow a full homestead classification.
38.27This provision only applies to first-time purchasers, whether married or single, or to a
38.28person who had previously been married and is purchasing as a single individual for the
38.29first time. The application for homestead benefits must be on a form prescribed by the
38.30commissioner and must contain the data necessary for the assessor to determine if full
38.31homestead benefits are warranted.
38.32    (h) If residential or agricultural real estate is occupied and used for purposes of a
38.33homestead by a child of a deceased owner and the property is subject to jurisdiction of
38.34probate court, the child shall receive relative homestead classification under paragraph (c)
38.35or (d) to the same extent they would be entitled to it if the owner was still living, until
39.1the probate is completed. For purposes of this paragraph, "child" includes a relationship
39.2by blood or by marriage.
39.3    (i) If a single-family home, duplex, or triplex classified as either residential
39.4homestead or agricultural homestead is also used to provide licensed child care, the
39.5portion of the property used for licensed child care must be classified as a part of the
39.6homestead property.
39.7EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
39.8thereafter.

39.9    Sec. 19. Minnesota Statutes 2007 Supplement, section 273.124, subdivision 14,
39.10is amended to read:
39.11    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than
39.12ten acres that is the homestead of its owner must be classified as class 2a under section
39.13273.13, subdivision 23 , paragraph (a), if:
39.14    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
39.15agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
39.16Service, or (iii) land administered by the Department of Natural Resources on which in
39.17lieu taxes are paid under sections 477A.11 to 477A.14;
39.18    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
39.1920 acres;
39.20    (3) the noncontiguous land is located not farther than four townships or cities, or a
39.21combination of townships or cities from the homestead; and
39.22    (4) the agricultural use value of the noncontiguous land and farm buildings is equal
39.23to at least 50 percent of the market value of the house, garage, and one acre of land.
39.24    Homesteads initially classified as class 2a under the provisions of this paragraph shall
39.25remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
39.26properties, as long as the homestead remains under the same ownership, the owner owns a
39.27noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
39.28value qualifies under clause (4). Homestead classification under this paragraph is limited
39.29to property that qualified under this paragraph for the 1998 assessment.
39.30    (b)(i) Agricultural property consisting of at least 40 acres shall be classified as the
39.31owner's homestead, to the same extent as other agricultural homestead property, if all
39.32of the following criteria are met:
39.33    (1) the owner, the owner's spouse, the son or daughter of the owner or owner's
39.34spouse, the brother or sister of the owner or owner's spouse, or the grandson or
39.35granddaughter of the owner or the owner's spouse, is actively farming the agricultural
40.1property, either on the person's own behalf as an individual or on behalf of a partnership
40.2operating a family farm, family farm corporation, joint family farm venture, or limited
40.3liability company of which the person is a partner, shareholder, or member;
40.4    (2) both the owner of the agricultural property and the person who is actively
40.5farming the agricultural property under clause (1), are Minnesota residents;
40.6    (3) neither the owner nor the spouse of the owner claims another agricultural
40.7homestead in Minnesota; and
40.8    (4) ~~neither~~ the owner ~~nor~~ and the person actively farming the property ~~lives farther~~
40.9~~than four townships or cities, or a combination of four townships or cities, from the~~
40.10~~agricultural property,~~ must live either in the county where the agricultural property is
40.11located or in a county contiguous to the county where the agricultural property is located,
40.12except that if the owner or the owner's spouse is required to live in employer-provided
40.13housing, the owner or owner's spouse, whichever is actively farming the agricultural
40.14property, may live ~~more than four townships or cities, or combination of four townships~~
40.15~~or cities~~ further from the agricultural property than in the county or county contiguous
40.16to the property.
40.17    The relationship under this paragraph may be either by blood or marriage.
40.18    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead
40.19classification under this paragraph if the qualifications in clause (i) are met, except that
40.20"owner" means the grantor of the trust.
40.21    (iii) Property containing the residence of an owner who owns qualified property
40.22under clause (i) shall be classified as part of the owner's agricultural homestead, if that
40.23property is also used for noncommercial storage or drying of agricultural crops.
40.24    (c) Noncontiguous land shall be included as part of a homestead under section
40.25273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a
40.26and the detached land is located in the same ~~township or city, or not farther than four~~
40.27~~townships or cities or combination thereof from~~ county or in a county contiguous to the
40.28homestead. Any taxpayer of these noncontiguous lands must notify the county assessor
40.29that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is
40.30located in another county, the taxpayer must also notify the assessor of the other county.
40.31    (d) Agricultural land used for purposes of a homestead and actively farmed by a
40.32person holding a vested remainder interest in it must be classified as a homestead under
40.33section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
40.34any other dwellings on the land used for purposes of a homestead by persons holding
40.35vested remainder interests who are actively engaged in farming the property, and up to
41.1one acre of the land surrounding each homestead and reasonably necessary for the use of
41.2the dwelling as a home, must also be assessed class 2a.
41.3    (e) Agricultural land and buildings that were class 2a homestead property under
41.4section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
41.5classified as agricultural homesteads for subsequent assessments if:
41.6    (1) the property owner abandoned the homestead dwelling located on the agricultural
41.7homestead as a result of the April 1997 floods;
41.8    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
41.9or Wilkin;
41.10    (3) the agricultural land and buildings remain under the same ownership for the
41.11current assessment year as existed for the 1997 assessment year and continue to be used
41.12for agricultural purposes;
41.13    (4) the dwelling occupied by the owner is located in Minnesota and is within 30
41.14miles of one of the parcels of agricultural land that is owned by the taxpayer; and
41.15    (5) the owner notifies the county assessor that the relocation was due to the 1997
41.16floods, and the owner furnishes the assessor any information deemed necessary by the
41.17assessor in verifying the change in dwelling. Further notifications to the assessor are not
41.18required if the property continues to meet all the requirements in this paragraph and any
41.19dwellings on the agricultural land remain uninhabited.
41.20    (f) Agricultural land and buildings that were class 2a homestead property under
41.21section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
41.22classified agricultural homesteads for subsequent assessments if:
41.23    (1) the property owner abandoned the homestead dwelling located on the agricultural
41.24homestead as a result of damage caused by a March 29, 1998, tornado;
41.25    (2) the property is located in the county of Blue Earth, Brown, Cottonwood,
41.26LeSueur, Nicollet, Nobles, or Rice;
41.27    (3) the agricultural land and buildings remain under the same ownership for the
41.28current assessment year as existed for the 1998 assessment year;
41.29    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
41.30of one of the parcels of agricultural land that is owned by the taxpayer; and
41.31    (5) the owner notifies the county assessor that the relocation was due to a March 29,
41.321998, tornado, and the owner furnishes the assessor any information deemed necessary by
41.33the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
41.34owner must notify the assessor by December 1, 1998. Further notifications to the assessor
41.35are not required if the property continues to meet all the requirements in this paragraph
41.36and any dwellings on the agricultural land remain uninhabited.
42.1    (g) Agricultural property consisting of at least 40 acres of a family farm corporation,
42.2joint family farm venture, family farm limited liability company, or partnership operating
42.3a family farm as described under subdivision 8 shall be classified homestead, to the same
42.4extent as other agricultural homestead property, if all of the following criteria are met:
42.5    (1) a shareholder, member, or partner of that entity is actively farming the
42.6agricultural property;
42.7    (2) that shareholder, member, or partner who is actively farming the agricultural
42.8property is a Minnesota resident;
42.9    (3) neither that shareholder, member, or partner, nor the spouse of that shareholder,
42.10member, or partner claims another agricultural homestead in Minnesota; and
42.11    (4) that shareholder, member, or partner ~~does not live farther than four townships~~
42.12~~or cities, or a combination of four townships or cities, from the agricultural property~~
42.13lives in the county where the agricultural property is located or in a county contiguous to
42.14the county where the property is located.
42.15    Homestead treatment applies under this paragraph for property leased to a family
42.16farm corporation, joint farm venture, limited liability company, or partnership operating a
42.17family farm if legal title to the property is in the name of an individual who is a member,
42.18shareholder, or partner in the entity.
42.19    (h) To be eligible for the special agricultural homestead under this subdivision, an
42.20initial full application must be submitted to the county assessor where the property is
42.21located. Owners and the persons who are actively farming the property shall be required
42.22to complete only a one-page abbreviated version of the application in each subsequent
42.23year provided that none of the following items have changed since the initial application:
42.24    (1) the day-to-day operation, administration, and financial risks remain the same;
42.25    (2) the owners and the persons actively farming the property continue to live within
42.26~~the four townships or city criteria~~ the county or a contiguous county and are Minnesota
42.27residents;
42.28    (3) the same operator of the agricultural property is listed with the Farm Service
42.29Agency;
42.30    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
42.31    (5) the property's acreage is unchanged; and
42.32    (6) none of the property's acres have been enrolled in a federal or state farm program
42.33since the initial application.
42.34    The owners and any persons who are actively farming the property must include
42.35the appropriate Social Security numbers, and sign and date the application. If any of the
42.36specified information has changed since the full application was filed, the owner must
43.1notify the assessor, and must complete a new application to determine if the property
43.2continues to qualify for the special agricultural homestead. The commissioner of revenue
43.3shall prepare a standard reapplication form for use by the assessors.
43.4    (i) Agricultural land and buildings that were class 2a homestead property under
43.5section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain
43.6classified agricultural homesteads for subsequent assessments if:
43.7    (1) the property owner abandoned the homestead dwelling located on the agricultural
43.8homestead as a result of damage caused by the August 2007 floods;
43.9    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
43.10Steele, Wabasha, or Winona;
43.11    (3) the agricultural land and buildings remain under the same ownership for the
43.12current assessment year as existed for the 2007 assessment year;
43.13    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
43.14of one of the parcels of agricultural land that is owned by the taxpayer; and
43.15    (5) the owner notifies the county assessor that the relocation was due to the August
43.162007 floods, and the owner furnishes the assessor any information deemed necessary by
43.17the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
43.18owner must notify the assessor by December 1, 2008. Further notifications to the assessor
43.19are not required if the property continues to meet all the requirements in this paragraph
43.20and any dwellings on the agricultural land remain uninhabited.
43.21EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
43.22thereafter, except that the provision extending the homestead to brothers and sisters is
43.23effective for taxes payable in 2009 and thereafter.

43.24    Sec. 20. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws
43.252008, chapter 154, article 2, section 12, is amended to read:
43.26    Subd. 23. Class 2. (a) ~~Class 2a property is agricultural land including any~~
43.27~~improvements~~ An agricultural homestead consists of class 2a agricultural land that is
43.28homesteaded, along with any class 2b rural vacant land that is contiguous to the class 2a
43.29land. The market value of the house and garage and immediately surrounding one acre
43.30of land has the same class rates as class 1a or 1b property under subdivision 22. The
43.31value of the remaining land including improvements up to the first tier valuation limit of
43.32agricultural homestead property has a net class rate of ~~0.55~~ 0.5 percent of market value.
43.33The remaining property over the first tier has a class rate of one percent of market value.
43.34For purposes of this subdivision, the "first tier valuation limit of agricultural homestead
43.35property" and "first tier" means the limit certified under section 273.11, subdivision 23.
44.1    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
44.2that are agricultural land and buildings. Class 2a property has a net class rate of one
44.3percent of market value, unless it is part of an agricultural homestead under paragraph
44.4(a). Class 2a property may contain an incidental amount of property that would otherwise
44.5be classified as 2b, including but not limited to sloughs, wooded wind shelters, acreage
44.6abutting ditches, and other similar land impractical for the assessor to value separately
44.7from the rest of the property.
44.8    (c) Class 2b ~~property is (1)~~ rural vacant land consists of parcels of property,
44.9or portions thereof, that are unplatted real estate, rural in character and not used for
44.10agricultural purposes, including land used ~~exclusively~~ for growing trees for timber,
44.11lumber, and wood and wood products~~; (2) real estate~~ that is not improved with a structure
44.12~~and is used exclusively for growing trees for timber, lumber, and wood and wood products,~~
44.13~~if the owner has participated or is participating in a cost-sharing program for afforestation,~~
44.14~~reforestation, or timber stand improvement on that particular property, administered or~~
44.15~~coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead~~
44.16~~agricultural land; or (4) a landing area or public access area of a privately owned public use~~
44.17~~airport~~, provided that the presence of a minor, ancillary nonresidential structure as defined
44.18by the commissioner of revenue does not disqualify the property from classification
44.19under this paragraph and provided that any parcel improved with a structure that is not a
44.20minor ancillary nonresidential structure may be split-classified, provided that the acreage
44.21assigned to the split parcel with the structure is at least 20 acres. Class 2b property has
44.22a net class rate of one percent of market value~~, except that unplatted property described~~
44.23~~in clause (1) or (2) has a net class rate of .65 percent if it consists~~ unless it is part of an
44.24agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
44.25    (d) Class 2c managed forest land consists of no less than ~~ten~~ 20 and no more than
44.261,920 acres statewide per taxpayer ~~and~~ that is being managed under a forest management
44.27plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable
44.28forest resource management incentive program. It has a class rate of .65 percent, provided
44.29that the owner of the property must apply to the assessor ~~annually~~ to receive the reduced
44.30class rate and provide the information required by the assessor to verify that the property
44.31qualifies for the reduced rate. The commissioner of natural resources must concur that the
44.32land is qualified. The commissioner of natural resources shall annually provide county
44.33assessors verification information on a timely basis.
44.34    ~~(c)~~ (e) Agricultural land as used in this section means ~~contiguous acreage of~~
44.35~~ten acres or more,~~ property used ~~during the preceding year~~ for agricultural purposes.
44.36"Agricultural purposes" as used in this section means the raising or, cultivation, drying, or
45.1storage of agricultural products for sale, or the storage of machinery or equipment used in
45.2support of agricultural production. "Agricultural purposes" also includes enrollment in
45.3the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
45.4Conservation Reserve Program as contained in Public Law 99-198 if the property was
45.5classified as agricultural (i) under this subdivision for the assessment year 2002 or (ii) in
45.6the year prior to its enrollment. ~~Contiguous acreage on the same parcel, or contiguous~~
45.7~~acreage on an immediately adjacent parcel under the same ownership, may also qualify~~
45.8~~as agricultural land, but only if it is pasture, timber, waste, unusable wild land, or land~~
45.9~~included in state or federal farm programs.~~ Agricultural classification ~~for property shall be~~
45.10~~determined excluding the house, garage, and immediately surrounding one acre of land,~~
45.11~~and~~ shall not be based upon the market value of any residential structures on the parcel or
45.12contiguous parcels under the same ownership.
45.13    ~~(d)~~ (f) Real estate of less than five acres, excluding the house, garage, and
45.14immediately surrounding one acre of land, ~~of less than ten acres which is exclusively and~~
45.15~~intensively used for raising or cultivating agricultural products, shall be considered as~~
45.16~~agricultural land~~ qualifies as class 2a if:
45.17    (i) the entire parcel is tilled or pastured to produce an agricultural product for sale in
45.18three of the last five years;
45.19    (ii) the acres are used primarily for drying or storage of grain or storage of machinery
45.20or equipment used to support agricultural activities on other parcels of property operated
45.21by the same farming entity;
45.22    (iii) the land mass contains a nursery, provided only those acres used to produce
45.23nursery stock are considered agricultural land;
45.24    (iv) the parcel is used exclusively as a livestock or poultry confinement process; or
45.25    (v) the parcel is used primarily for market farming; for purposes of this paragraph,
45.26"market farming" means the cultivation of one or more fruits or vegetables or production
45.27of animal or other agricultural products for sale to local markets by the farmer or an
45.28organization with which the farmer is affiliated.
45.29    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
45.30use of that property is the leasing to, or use by another person for agricultural purposes.
45.31    ~~Classification under this subdivision is not determinative for qualifying under~~
45.32~~section~~ ~~273.111~~.
45.33    (h) The property classification under this section supersedes, for property tax
45.34purposes only, any locally administered agricultural policies or land use restrictions that
45.35define minimum or maximum farm acreage.
46.1    ~~(e)~~ (i) The term "agricultural products" as used in this subdivision includes
46.2production for sale of:
46.3    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
46.4animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
46.5bees, and apiary products by the owner;
46.6    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
46.7for agricultural use;
46.8    (3) the commercial boarding of horses if the boarding is done in conjunction with
46.9raising or cultivating agricultural products as defined in clause (1);
46.10    (4) property which is owned and operated by nonprofit organizations used for
46.11equestrian activities, excluding racing;
46.12    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
46.13under section 97A.115;
46.14    (6) insects primarily bred to be used as food for animals;
46.15    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
46.16sold for timber, lumber, wood, or wood products; and
46.17    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
46.18Department of Agriculture under chapter 28A as a food processor.
46.19    ~~(f)~~ (j) If a parcel used for agricultural purposes is also used for commercial or
46.20industrial purposes, including but not limited to:
46.21    (1) wholesale and retail sales;
46.22    (2) processing of raw agricultural products or other goods;
46.23    (3) warehousing or storage of processed goods; and
46.24    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
46.25and (3),
46.26the assessor shall classify the part of the parcel used for agricultural purposes as class
46.271b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
46.28use. The grading, sorting, and packaging of raw agricultural products for first sale is
46.29considered an agricultural purpose. A greenhouse or other building where horticultural
46.30or nursery products are grown that is also used for the conduct of retail sales must be
46.31classified as agricultural if it is primarily used for the growing of horticultural or nursery
46.32products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
46.33those products. Use of a greenhouse or building only for the display of already grown
46.34horticultural or nursery products does not qualify as an agricultural purpose.
46.35    The assessor shall determine and list separately on the records the market value of
46.36the homestead dwelling and the one acre of land on which that dwelling is located. If any
47.1farm buildings or structures are located on this homesteaded acre of land, their market
47.2value shall not be included in this separate determination.
47.3    ~~(g)~~ (k) A landing area or public access area of a privately owned public use airport
47.4is class 2d. To qualify for classification under this paragraph ~~(b), clause (4)~~, a privately
47.5owned public use airport must be licensed as a public airport under section 360.018. For
47.6purposes of this paragraph ~~(b), clause (4)~~, "landing area" means that part of a privately
47.7owned public use airport properly cleared, regularly maintained, and made available to the
47.8public for use by aircraft and includes runways, taxiways, aprons, and sites upon which
47.9are situated landing or navigational aids. A landing area also includes land underlying
47.10both the primary surface and the approach surfaces that comply with all of the following:
47.11    (i) the land is properly cleared and regularly maintained for the primary purposes of
47.12the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
47.13facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
47.14    (ii) the land is part of the airport property; and
47.15    (iii) the land is not used for commercial or residential purposes.
47.16The land contained in a landing area under this paragraph ~~(b), clause (4),~~ must be described
47.17and certified by the commissioner of transportation. The certification is effective until it
47.18is modified, or until the airport or landing area no longer meets the requirements of this
47.19paragraph ~~(b), clause (4)~~. For purposes of this paragraph ~~(b), clause (4)~~, "public access
47.20area" means property used as an aircraft parking ramp, apron, or storage hangar, or an
47.21arrival and departure building in connection with the airport.
47.22EFFECTIVE DATE.The portion of this section reducing the agricultural class rate,
47.23and expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural
47.24products" in paragraph (h), is effective for taxes payable in 2009 and thereafter. The
47.25remainder of the section is effective for taxes payable in 2010 and thereafter.

47.26    Sec. 21. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:
47.27    Subd. 24. Class 3. (a) Commercial and industrial property and utility real and
47.28personal property is class 3a.
47.29    (1) Except as otherwise provided, each parcel of commercial, industrial, or utility
47.30real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
47.31of the remaining market value. In the case of contiguous parcels of property owned by the
47.32same person or entity, only the value equal to the first-tier value of the contiguous parcels
47.33qualifies for the reduced class rate, except that contiguous parcels owned by the same
47.34person or entity shall be eligible for the first-tier value class rate on each separate business
47.35operated by the owner of the property, provided the business is housed in a separate
48.1structure. For the purposes of this subdivision, the first tier means the first $150,000 of
48.2market value. Real property owned in fee by a utility for transmission line right-of-way
48.3shall be classified at the class rate for the higher tier.
48.4    For purposes of this subdivision, parcels are considered to be contiguous even if
48.5they are separated from each other by a road, street, waterway, or other similar intervening
48.6type of property. Connections between parcels that consist of power lines or pipelines do
48.7not cause the parcels to be contiguous. Property owners who have contiguous parcels of
48.8property that constitute separate businesses that may qualify for the first-tier class rate shall
48.9notify the assessor by July 1, for treatment beginning in the following taxes payable year.
48.10    (2) ~~All~~ Personal property that is~~: (i)~~ part of an electric generation~~, transmission, or~~
48.11~~distribution~~ system~~; or (ii)~~, including tools, implements, and machinery, has a class rate
48.12of 2.4 percent for taxes payable in 2009, and 2.8 percent for taxes payable in 2010, and
48.13thereafter.
48.14    (3) Personal property that is either: (i) part of a pipeline system transporting
48.15or distributing water, gas, crude oil, or petroleum products~~; and (iii) not described in~~
48.16~~clause (3), and all~~, including tools, implements, and machinery, or (ii) part of an electric
48.17transmission or distribution system, including tools, implements, and machinery, has a
48.18class rate of 2.0 percent for taxes payable in 2009 and thereafter.
48.19    (4) railroad operating property has a class rate as provided under clause (1) for
48.20the first tier of market value and the remaining market value. In the case of multiple
48.21parcels in one county that are owned by one person or entity, only one first tier amount
48.22is eligible for the reduced rate.
48.23    ~~(3) The entire market value of personal property that is: (i) tools, implements, and~~
48.24~~machinery of an electric generation, transmission, or distribution system; (ii) tools,~~
48.25~~implements, and machinery of a pipeline system transporting or distributing water, gas,~~
48.26~~crude oil, or petroleum products; or (iii)~~ ~~the~~ (5) Personal property consisting of mains
48.27and pipes used in the distribution of steam or hot or chilled water for heating or cooling
48.28buildings, has a class rate as provided under clause (1) for the remaining market value
48.29in excess of the first tier.
48.30    (b) Employment property defined in section 469.166, during the period provided
48.31in section 469.170, shall constitute class 3b. The class rates for class 3b property are
48.32determined under paragraph (a).
48.33EFFECTIVE DATE.This section is effective for taxes payable in 2009, and
48.34thereafter.

49.1    Sec. 22. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws
49.22008, chapter 154, article 2, section 13, is amended to read:
49.3    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
49.4units and used or held for use by the owner or by the tenants or lessees of the owner
49.5as a residence for rental periods of 30 days or more, excluding property qualifying for
49.6class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
49.7than hospitals exempt under section 272.02, and contiguous property used for hospital
49.8purposes, without regard to whether the property has been platted or subdivided. The
49.9market value of class 4a property has a class rate of 1.25 percent.
49.10    (b) Class 4b ~~includes:~~
49.11    ~~(1) residential real estate containing less than four units that does not qualify as class~~
49.12~~4bb, other than seasonal residential recreational property;~~
49.13    ~~(2) manufactured homes not classified under any other provision;~~
49.14    ~~(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead~~
49.15~~farm classified under subdivision 23, paragraph (b) containing two or three units; and~~
49.16    ~~(4)~~ is unimproved property that is classified residential as determined under
49.17subdivision 33.
49.18    The market value of class 4b property has a class rate of 1.25 percent.
49.19    (c) Class 4bb includes:
49.20    (1) nonhomestead residential real estate containing ~~one unit~~ up to three units, other
49.21than seasonal residential recreational property; ~~and~~
49.22    (2) a ~~single family~~ dwelling, garage, and surrounding one acre of property on a
49.23nonhomestead farm classified under subdivision 23, paragraph (b), containing up to three
49.24units; and
49.25    (3) manufactured homes not classified under any other provision.
49.26    Class 4bb property has the same class rates as class 1a property under subdivision 22.
49.27    Property that has been classified as seasonal residential recreational property at
49.28any time during which it has been owned by the current owner or spouse of the current
49.29owner does not qualify for class 4bb.
49.30    (d) Class 4c property includes:
49.31    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph
49.32(b), clause (1), real and personal property devoted to temporary and seasonal residential
49.33occupancy for recreation purposes, including real and personal property devoted to
49.34temporary and seasonal residential occupancy for recreation purposes and not devoted to
49.35commercial purposes for more than 250 days in the year preceding the year of assessment.
49.36For purposes of this clause, property is devoted to a commercial purpose on a specific
50.1day if any portion of the property is used for residential occupancy, and a fee is charged
50.2for residential occupancy. Class 4c property must contain three or more rental units. A
50.3"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
50.4camping site equipped with water and electrical hookups for recreational vehicles. Class
50.54c property must provide recreational activities such as renting ice fishing houses, boats
50.6and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
50.7services, launch services, or guide services; or sell bait and fishing tackle. A camping
50.8pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c
50.9regardless of the term of the rental agreement, as long as the use of the camping pad
50.10does not exceed 250 days. In order for a property to be classified as class 4c, seasonal
50.11residential recreational for commercial purposes, at least 40 percent of the annual gross
50.12lodging receipts related to the property must be from business conducted during 90
50.13consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests
50.14during the year must be for periods of at least two consecutive nights; or (ii) at least 20
50.15percent of the annual gross receipts must be from charges for rental of fish houses, boats
50.16and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina
50.17services, launch services, and guide services, or the sale of bait and fishing tackle. For
50.18purposes of this determination, a paid booking of five or more nights shall be counted as
50.19two bookings. Class 4c also includes commercial use real property used exclusively
50.20for recreational purposes in conjunction with class 4c property devoted to temporary
50.21and seasonal residential occupancy for recreational purposes, up to a total of two acres,
50.22provided the property is not devoted to commercial recreational use for more than 250
50.23days in the year preceding the year of assessment and is located within two miles of the
50.24class 4c property with which it is used. Owners of real and personal property devoted
50.25to temporary and seasonal residential occupancy for recreation purposes and all or a
50.26portion of which was devoted to commercial purposes for not more than 250 days in the
50.27year preceding the year of assessment desiring classification as class 4c, must submit a
50.28declaration to the assessor designating the cabins or units occupied for 250 days or less in
50.29the year preceding the year of assessment by January 15 of the assessment year. Those
50.30cabins or units and a proportionate share of the land on which they are located must be
50.31designated class 4c as otherwise provided. The remainder of the cabins or units and
50.32a proportionate share of the land on which they are located will be designated as class
50.333a. The owner of property desiring designation as class 4c property must provide guest
50.34registers or other records demonstrating that the units for which class 4c designation is
50.35sought were not occupied for more than 250 days in the year preceding the assessment if
50.36so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
51.1(4) conference center or meeting room, and (5) other nonresidential facility operated on a
51.2commercial basis not directly related to temporary and seasonal residential occupancy for
51.3recreation purposes does not qualify for class 4c;
51.4    (2) qualified property used as a golf course if:
51.5    (i) it is open to the public on a daily fee basis. It may charge membership fees or
51.6dues, but a membership fee may not be required in order to use the property for golfing,
51.7and its green fees for golfing must be comparable to green fees typically charged by
51.8municipal courses; and
51.9    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
51.10    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
51.11with the golf course is classified as class 3a property;
51.12    (3) real property up to a maximum of three acres of land owned and used by a
51.13nonprofit community service oriented organization and that is not used for residential
51.14purposes on either a temporary or permanent basis, qualifies for class 4c provided that
51.15it meets either of the following:
51.16    (i) the property is not used for a revenue-producing activity for more than six days
51.17in the calendar year preceding the year of assessment; or
51.18    (ii) the organization makes annual charitable contributions and donations at least
51.19equal to the property's previous year's property taxes and the property is allowed to be
51.20used for public and community meetings or events for no charge, as appropriate to the
51.21size of the facility.
51.22    For purposes of this clause,
51.23    (A) "charitable contributions and donations" has the same meaning as lawful
51.24gambling purposes under section 349.12, subdivision 25, excluding those purposes
51.25relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
51.26    (B) "property taxes" excludes the state general tax;
51.27    (C) a "nonprofit community service oriented organization" means any corporation,
51.28society, association, foundation, or institution organized and operated exclusively for
51.29charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
51.30federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue
51.31Code of 1986, as amended through December 31, 1990; and
51.32    (D) "revenue-producing activities" shall include but not be limited to property or that
51.33portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
51.34liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
51.35alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
52.1insurance business, or office or other space leased or rented to a lessee who conducts a
52.2for-profit enterprise on the premises.
52.3Any portion of the property qualifying under item (i) which is used for revenue-producing
52.4activities for more than six days in the calendar year preceding the year of assessment
52.5shall be assessed as class 3a. The use of the property for social events open exclusively
52.6to members and their guests for periods of less than 24 hours, when an admission is
52.7not charged nor any revenues are received by the organization shall not be considered a
52.8revenue-producing activity.
52.9    The organization shall maintain records of its charitable contributions and donations
52.10and of public meetings and events held on the property and make them available upon
52.11request any time to the assessor to ensure eligibility. An organization meeting the
52.12requirement under item (ii) must file an application by May 1 with the assessor for
52.13eligibility for the current year's assessment. The commissioner shall prescribe a uniform
52.14application form and instructions;
52.15    (4) postsecondary student housing of not more than one acre of land that is owned by
52.16a nonprofit corporation organized under chapter 317A and is used exclusively by a student
52.17cooperative, sorority, or fraternity for on-campus housing or housing located within two
52.18miles of the border of a college campus;
52.19    (5) manufactured home parks as defined in section 327.14, subdivision 3;
52.20    (6) real property that is actively and exclusively devoted to indoor fitness, health,
52.21social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
52.22and is located within the metropolitan area as defined in section 473.121, subdivision 2;
52.23    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
52.24under section 272.01, subdivision 2, and the land on which it is located, provided that:
52.25    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
52.26Airports Commission, or group thereof; and
52.27    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
52.28leased premise, prohibits commercial activity performed at the hangar.
52.29    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
52.30be filed by the new owner with the assessor of the county where the property is located
52.31within 60 days of the sale;
52.32    (8) a privately owned noncommercial aircraft storage hangar not exempt under
52.33section 272.01, subdivision 2, and the land on which it is located, provided that:
52.34    (i) the land abuts a public airport; and
53.1    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
53.2agreement restricting the use of the premises, prohibiting commercial use or activity
53.3performed at the hangar; and
53.4    (9) residential real estate, a portion of which is used by the owner for homestead
53.5purposes, and that is also a place of lodging, if all of the following criteria are met:
53.6    (i) rooms are provided for rent to transient guests that generally stay for periods
53.7of 14 or fewer days;
53.8    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
53.9in the basic room rate;
53.10    (iii) meals are not provided to the general public except for special events on fewer
53.11than seven days in the calendar year preceding the year of the assessment; and
53.12    (iv) the owner is the operator of the property.
53.13The market value subject to the 4c classification under this clause is limited to five rental
53.14units. Any rental units on the property in excess of five, must be valued and assessed as
53.15class 3a. The portion of the property used for purposes of a homestead by the owner must
53.16be classified as class 1a property under subdivision 22.
53.17    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
53.18parcel of seasonal residential recreational property not used for commercial purposes has
53.19the same class rates as class 4bb property, (ii) manufactured home parks assessed under
53.20clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
53.21residential recreational property has a class rate of one percent for the first $500,000 of
53.22market value, and 1.25 percent for the remaining market value, (iv) the market value of
53.23property described in clause (4) has a class rate of one percent, (v) the market value of
53.24property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that
53.25portion of the market value of property in clause (9) qualifying for class 4c property
53.26has a class rate of 1.25 percent.
53.27    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
53.28by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
53.29of the units in the building qualify as low-income rental housing units as certified under
53.30section 273.128, subdivision 3, only the proportion of qualifying units to the total number
53.31of units in the building qualify for class 4d. The remaining portion of the building shall be
53.32classified by the assessor based upon its use. Class 4d also includes the same proportion of
53.33land as the qualifying low-income rental housing units are to the total units in the building.
53.34For all properties qualifying as class 4d, the market value determined by the assessor must
53.35be based on the normal approach to value using normal unrestricted rents.
53.36    Class 4d property has a class rate of 0.75 percent.
54.1EFFECTIVE DATE.This section is effective for assessment year 2008 and
54.2thereafter, and for taxes payable in 2009 and thereafter.

54.3    Sec. 23. Minnesota Statutes 2007 Supplement, section 273.1393, is amended to read:
54.4273.1393 COMPUTATION OF NET PROPERTY TAXES.
54.5    Notwithstanding any other provisions to the contrary, "net" property taxes are
54.6determined by subtracting the credits in the order listed from the gross tax:
54.7    (1) disaster credit as provided in sections 273.1231 to 273.1235;
54.8    (2) powerline credit as provided in section 273.42;
54.9    (3) agricultural preserves credit as provided in section 473H.10;
54.10    (4) enterprise zone credit as provided in section 469.171;
54.11    (5) disparity reduction credit;
54.12    (6) conservation tax credit as provided in section 273.119;
54.13    (7) homestead and agricultural credits as provided in section 273.1384;
54.14    (8) taconite homestead credit as provided in section 273.135; ~~and~~
54.15    (9) supplemental homestead credit as provided in section 273.1391; and
54.16    (10) bovine tuberculosis management credit as provided in section 273.113.
54.17    The combination of all property tax credits must not exceed the gross tax amount.
54.18EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
54.19thereafter.

54.20    Sec. 24. Minnesota Statutes 2006, section 274.14, is amended to read:
54.21274.14 LENGTH OF SESSION; RECORD.
54.22    The board may meet on any ten consecutive meeting days in June, after the second
54.23Friday in June. The actual meeting dates must be contained on the valuation notices
54.24mailed to each property owner in the county as provided in section 273.121. For this
54.25purpose, "meeting days" is defined as any day of the week excluding ~~Saturday and~~ Sunday.
54.26At the board's discretion, "meeting days" may include Saturday. No action taken by the
54.27county board of review after June 30 is valid, except for corrections permitted in sections
54.28273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings
54.29and orders of the board. The record must be published like other proceedings of county
54.30commissioners. A copy of the published record must be sent to the commissioner of
54.31revenue, with the abstract of assessment required by section 274.16.
54.32    For counties that conduct either regular board of review meetings or open book
54.33meetings, at least one of the meeting days must include a meeting that does not end
54.34before 7:00 p.m. For counties that require taxpayer appointments for the board of review,
55.1appointments must include some available times that extend until at least 7:00 p.m. The
55.2county may have a Saturday meeting in lieu of, or in addition to, the extended meeting
55.3times under this paragraph.

55.4    Sec. 25. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:
55.5    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
55.6contrary, on or before September 15 1, each taxing authority, other than a school district,
55.7shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
55.8the case of a town, the final property tax levy for taxes payable in the following year.
55.9    (b) On or before September 30 15, each school district shall certify to the county
55.10auditor the proposed property tax levy for taxes payable in the following year. The school
55.11district shall certify the proposed levy as:
55.12    (1) a specific dollar amount by school district fund, broken down between
55.13voter-approved and non-voter-approved levies and between referendum market value
55.14and tax capacity levies; or
55.15    (2) the maximum levy limitation certified by the commissioner of education
55.16according to section 126C.48, subdivision 1.
55.17    (c) If the board of estimate and taxation or any similar board that establishes
55.18maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
55.19property tax levies for funds under its jurisdiction by charter to the county auditor by
55.20September 15 1, the city shall be deemed to have certified its levies for those taxing
55.21jurisdictions.
55.22    (d) For purposes of this section, "taxing authority" includes all home rule and
55.23statutory cities, towns, counties, school districts, and special taxing districts as defined
55.24in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
55.25136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
55.26School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
55.27districts for purposes of this section.
55.28EFFECTIVE DATE.This section is effective for proposed notices and hearings
55.29held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

55.30    Sec. 26. Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:
55.31    Subd. 1a. Overlapping jurisdictions. In the case of a taxing authority lying in two
55.32or more counties, the home county auditor shall certify the proposed levy and the proposed
55.33local tax rate to the other county auditor by ~~October~~ September 5. The home county auditor
55.34must estimate the levy or rate in preparing the notices required in subdivision 3, if the
56.1other county has not certified the appropriate information. If requested by the home county
56.2auditor, the other county auditor must furnish an estimate to the home county auditor.
56.3EFFECTIVE DATE.This section is effective for proposed notices and hearings
56.4held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

56.5    Sec. 27. Minnesota Statutes 2006, section 275.065, subdivision 1c, is amended to read:
56.6    Subd. 1c. Levy; shared, merged, consolidated services. If two or more taxing
56.7authorities are in the process of negotiating an agreement for sharing, merging, or
56.8consolidating services between those taxing authorities at the time the proposed levy is to
56.9be certified under subdivision 1, each taxing authority involved in the negotiation shall
56.10certify its total proposed levy as provided in that subdivision, including a notification to the
56.11county auditor of the specific service involved in the agreement which is not yet finalized.
56.12The affected taxing authorities may amend their proposed levies under subdivision 1 until
56.13~~October~~ September 10 for levy amounts relating only to the specific service involved.
56.14EFFECTIVE DATE.This section is effective for proposed notices and hearings
56.15held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

56.16    Sec. 28. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
56.17to read:
56.18    Subd. 1d. Failure to certify proposed levy. If a taxing authority fails to certify
56.19its proposed levy by the due dates specified under subdivisions 1, 1a, and 1c, the county
56.20auditor shall use the authority's previous year's final levy under section 275.07, subdivision
56.211, for purposes of determining its proposed property tax notices and public advertisements
56.22under this section.
56.23EFFECTIVE DATE.This section is effective for notices prepared in 2008, for
56.24property taxes payable in 2009 and thereafter.

56.25    Sec. 29. Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:
56.26    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
56.27and the county treasurer shall deliver after ~~November 10~~ October 15 and on or before
56.28~~November~~ October 24 each year, by first class mail to each taxpayer at the address listed
56.29on the county's current year's assessment roll, a notice of proposed property taxes.
56.30    (b) The commissioner of revenue shall prescribe the form of the notice.
56.31    (c) The notice must inform taxpayers that it contains the amount of property taxes
56.32each taxing authority proposes to collect for taxes payable the following year. In the case
56.33of a town, or in the case of the state general tax, the final tax amount will be its proposed
57.1tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
57.2the notice must clearly state that each taxing authority, including regional library districts
57.3established under section 134.201, and including the metropolitan taxing districts as
57.4defined in paragraph (i), but excluding all other special taxing districts and towns, will
57.5hold a public meeting to receive public testimony on the proposed budget and proposed or
57.6final property tax levy, or, in case of a school district, on the current budget and proposed
57.7property tax levy. It must clearly state the time and place of each taxing authority's
57.8meeting, a telephone number for the taxing authority that taxpayers may call if they have
57.9questions related to the notice, and an address where comments will be received by mail.
57.10    (d) The notice must state for each parcel:
57.11    (1) the market value of the property as determined under section 273.11, and used
57.12for computing property taxes payable in the following year and for taxes payable in the
57.13current year as each appears in the records of the county assessor on ~~November~~ October
57.141 of the current year; and, in the case of residential property, whether the property is
57.15classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the
57.16years to which the market values apply and that the values are final values;
57.17    (2) the items listed below, shown separately by county, city or town, and state general
57.18tax, net of the residential and agricultural homestead credit under section 273.1384, voter
57.19approved school levy, other local school levy, and the sum of the special taxing districts,
57.20and as a total of all taxing authorities:
57.21    (i) the actual tax for taxes payable in the current year; and
57.22    (ii) the proposed tax amount.
57.23    If the county levy under clause (2) includes an amount for a lake improvement
57.24district as defined under sections 103B.501 to 103B.581, the amount attributable for that
57.25purpose must be separately stated from the remaining county levy amount.
57.26    In the case of a town or the state general tax, the final tax shall also be its proposed
57.27tax unless the town changes its levy at a special town meeting under section 365.52. If a
57.28school district has certified under section 126C.17, subdivision 9, that a referendum will
57.29be held in the school district at the November general election, the county auditor must
57.30note next to the school district's proposed amount that a referendum is pending and that,
57.31if approved by the voters, the tax amount may be higher than shown on the notice. In
57.32the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
57.33levy for Minneapolis Park and Recreation shall be listed separately from the remaining
57.34amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
57.35Library Agency must be listed separately from the remaining amount of the city's levy.
57.36In the case of Ramsey County, any amount levied under section 134.07 may be listed
58.1separately from the remaining amount of the county's levy. In the case of a parcel where
58.2tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
58.3the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
58.4subject to the areawide tax must each be stated separately and not included in the sum of
58.5the special taxing districts; and
58.6    (3) the increase or decrease between the total taxes payable in the current year and
58.7the total proposed taxes, expressed as a percentage.
58.8    For purposes of this section, the amount of the tax on homesteads qualifying under
58.9the senior citizens' property tax deferral program under chapter 290B is the total amount
58.10of property tax before subtraction of the deferred property tax amount.
58.11    (e) The notice must clearly state that the proposed or final taxes do not include
58.12the following:
58.13    (1) special assessments;
58.14    (2) levies approved by the voters after the date the proposed taxes are certified,
58.15including bond referenda and school district levy referenda;
58.16    (3) a levy limit increase approved by the voters by the first Tuesday after the first
58.17Monday in November of the levy year as provided under section 275.73;
58.18    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
58.19occurring after the date the proposed taxes are certified;
58.20    (5) amounts necessary to pay tort judgments against the taxing authority that become
58.21final after the date the proposed taxes are certified; and
58.22    (6) the contamination tax imposed on properties which received market value
58.23reductions for contamination.
58.24    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
58.25the county treasurer to deliver the notice as required in this section does not invalidate the
58.26proposed or final tax levy or the taxes payable pursuant to the tax levy.
58.27    (g) If the notice the taxpayer receives under this section lists the property as
58.28nonhomestead, and satisfactory documentation is provided to the county assessor by the
58.29applicable deadline, and the property qualifies for the homestead classification in that
58.30assessment year, the assessor shall reclassify the property to homestead for taxes payable
58.31in the following year.
58.32    (h) In the case of class 4 residential property used as a residence for lease or rental
58.33periods of 30 days or more, the taxpayer must either:
58.34    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
58.35renter, or lessee; or
58.36    (2) post a copy of the notice in a conspicuous place on the premises of the property.
59.1    The notice must be mailed or posted by the taxpayer by ~~November~~ October 27 or
59.2within three days of receipt of the notice, whichever is later. A taxpayer may notify the
59.3county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises
59.4to which the notice must be mailed in order to fulfill the requirements of this paragraph.
59.5    (i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
59.6taxing districts" means the following taxing districts in the seven-county metropolitan area
59.7that levy a property tax for any of the specified purposes listed below:
59.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
59.9473.446 , 473.521, 473.547, or 473.834;
59.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
59.11and
59.12    (3) Metropolitan Mosquito Control Commission under section 473.711.
59.13    For purposes of this section, any levies made by the regional rail authorities in the
59.14county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
59.15398A shall be included with the appropriate county's levy and shall be discussed at that
59.16county's public hearing.
59.17    (j) The governing body of a county, city, or school district may, with the consent
59.18of the county board, include supplemental information with the statement of proposed
59.19property taxes about the impact of state aid increases or decreases on property tax
59.20increases or decreases and on the level of services provided in the affected jurisdiction.
59.21This supplemental information may include information for the following year, the current
59.22year, and for as many consecutive preceding years as deemed appropriate by the governing
59.23body of the county, city, or school district. It may include only information regarding:
59.24    (1) the impact of inflation as measured by the implicit price deflator for state and
59.25local government purchases;
59.26    (2) population growth and decline;
59.27    (3) state or federal government action; and
59.28    (4) other financial factors that affect the level of property taxation and local services
59.29that the governing body of the county, city, or school district may deem appropriate to
59.30include.
59.31    The information may be presented using tables, written narrative, and graphic
59.32representations and may contain instruction toward further sources of information or
59.33opportunity for comment.
59.34EFFECTIVE DATE.This section is effective for proposed notices and hearings
59.35held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

60.1    Sec. 30. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
60.2to read:
60.3    Subd. 3b. Supplemental notice of proposed levy increases. (a) If a city that has
60.4a population of more than 2,500 or a county proposes a levy increase greater than the
60.5threshold increase calculated under paragraph (b), it shall prepare and deliver by first class
60.6mail a supplemental proposed property tax notice to each property taxpayer in the taxing
60.7jurisdiction, as described in this subdivision.
60.8    (b) The threshold increase in the proposed property tax levy is equal to: (1) the
60.9levy plus aid amount in the previous year, multiplied by the sum of (i) one percent,
60.10(ii) the percentage growth, if any, in the population in the taxing jurisdiction for the
60.11most recent available year, (iii) the percentage increase in the total market value in the
60.12taxing jurisdiction due to new construction of commercial and industrial property, and
60.13(iv) the percentage increase in the implicit price deflator for government consumption
60.14expenditures and gross investment for state and local governments as prepared by the
60.15United States Department of Commerce for the most recent 12-month period ending
60.16March of the levy year; minus (2) the aid amount corresponding to the proposed levy year.
60.17    (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy
60.18plus aid amount for the previous year, (2) its threshold levy plus aid increase indicating that
60.19this increase is calculated to reflect reasonable growth adjusting for population increases,
60.20increased demand from new business, and inflation, (3) the aid amount corresponding to
60.21the proposed levy year; (4) the proposed property tax increase, and (5) the amount the
60.22proposed increase in levy plus aid exceeds the threshold increase. The notice must contain
60.23a description of why the jurisdiction needs to raise property taxes above the threshold
60.24amount and how the taxing jurisdiction plans to spend the additional revenue.
60.25    (d) For purposes of this subdivision, "aid" means county program aid under section
60.26477A.0124 or local government aid under section 477A.013.
60.27EFFECTIVE DATE.This section is effective for taxes payable in 2009, and
60.28thereafter.

60.29    Sec. 31. Minnesota Statutes 2006, section 275.065, subdivision 6, is amended to read:
60.30    Subd. 6. Public hearing; adoption of budget and levy. (a) For purposes of this
60.31section, the following terms shall have the meanings given:
60.32    (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
60.33authority's proposed budget and proposed property tax levy for taxes payable in the
60.34following year, or, for school districts, the current budget and the proposed property tax
60.35levy for taxes payable in the following year.
61.1    (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
61.2the initial hearing is not completed on its scheduled date.
61.3    (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
61.4property tax levy, and, in the case of taxing authorities other than school districts, the final
61.5budget, for taxes payable in the following year.
61.6    (b) Between November 29 9 and December 20 1, the governing bodies of a city that
61.7has a population over 500, county, metropolitan special taxing districts as defined in
61.8subdivision 3, paragraph (i), and regional library districts shall each hold an initial public
61.9hearing to discuss and seek public comment on its final budget and property tax levy for
61.10taxes payable in the following year, and the governing body of the school district shall
61.11hold an initial public hearing to review its current budget and proposed property tax
61.12levy for taxes payable in the following year. The metropolitan special taxing districts
61.13shall be required to hold only a single joint initial public hearing, the location of which
61.14will be determined by the affected metropolitan agencies. A city, county, metropolitan
61.15special taxing district as defined in subdivision 3, paragraph (i), regional library district
61.16established under section 134.201, or school district is not required to hold a public
61.17hearing under this subdivision unless its proposed property tax levy for taxes payable
61.18in the following year, as certified under subdivision 1, has increased over its final
61.19property tax levy for taxes payable in the current year by a percentage that is greater
61.20than the percentage increase in the implicit price deflator for government consumption
61.21expenditures and gross investment for state and local governments prepared by the Bureau
61.22of Economic Analysts of the United States Department of Commerce for the 12-month
61.23period ending March 31 of the current year.
61.24    (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
61.25Saturday. No initial hearing may be held on a Sunday.
61.26    (d) At the initial hearing under this subdivision, the percentage increase in property
61.27taxes proposed by the taxing authority, if any, and the specific purposes for which property
61.28tax revenues are being increased must be discussed. During the discussion, the governing
61.29body shall hear comments regarding a proposed increase and explain the reasons for the
61.30proposed increase. The public shall be allowed to speak and to ask questions. At the public
61.31hearing, the school district must also provide and discuss information on the distribution
61.32of its revenues by revenue source, and the distribution of its spending by program area.
61.33    (e) If the initial hearing is not completed on its scheduled date, the taxing authority
61.34must announce, prior to adjournment of the hearing, the date, time, and place for the
61.35continuation of the hearing. The continuation hearing must be held at least five business
61.36days but no more than 14 business days after the initial hearing. A continuation hearing
62.1may not be held later than December 20 except as provided in paragraphs (f) and (g).
62.2A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
62.3Saturday. No continuation hearing may be held on a Sunday.
62.4    (f) The governing body of a county shall hold its initial hearing on the ~~first~~ second
62.5Thursday in ~~December~~ November each year, and may hold additional initial hearings on
62.6other dates before December 20 1 if necessary for the convenience of county residents. If
62.7the county needs a continuation of its hearing, the continuation hearing shall be held on
62.8the third Tuesday in ~~December. If the third Tuesday in December falls on December 21,~~
62.9~~the county's continuation hearing shall be held on Monday, December 20~~ November.
62.10    (g) The metropolitan special taxing districts shall hold a joint initial public hearing
62.11on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
62.12the second Wednesday of December even if that second Wednesday is after December 10.
62.13    (h) The county auditor shall provide for the coordination of initial and continuation
62.14hearing dates for all school districts and cities within the county to prevent conflicts under
62.15clauses (i) and (j).
62.16    (i) By August 10, each school board and the board of the regional library district
62.17shall certify to the county auditors of the counties in which the school district or regional
62.18library district is located the dates on which it elects to hold its initial hearing and any
62.19continuation hearing. If a school board or regional library district does not certify these
62.20dates by August 10, the auditor will assign the initial and continuation hearing dates. The
62.21dates elected or assigned must not conflict with the initial and continuation hearing dates
62.22of the county or the metropolitan special taxing districts.
62.23    (j) By August 20, the county auditor shall notify the clerks of the cities within the
62.24county of the dates on which school districts and regional library districts have elected
62.25to hold their initial and continuation hearings. At the time a city certifies its proposed
62.26levy under subdivision 1 it shall certify the dates on which it elects to hold its initial
62.27hearing and any continuation hearing. Until September 15, the ~~first and~~ second ~~Mondays~~
62.28Monday of December ~~are~~ is reserved for the use of the cities. If a city does not certify its
62.29hearing dates by September 15, the auditor shall assign the initial and continuation hearing
62.30dates. The dates elected or assigned for the initial hearing must not conflict with the
62.31initial hearing dates of the county, metropolitan special taxing districts, regional library
62.32districts, or school districts within which the city is located. To the extent possible, the
62.33dates of the city's continuation hearing should not conflict with the continuation hearing
62.34dates of the county, metropolitan special taxing districts, regional library districts, or
62.35school districts within which the city is located. This paragraph does not apply to cities
62.36of 500 population or less.
63.1    (k) The county initial hearing date and the city, metropolitan special taxing district,
63.2regional library district, and school district initial hearing dates must be designated on
63.3the notices required under subdivision 3. The continuation hearing dates need not be
63.4stated on the notices.
63.5    (l) At a subsequent hearing, each county, school district, city over 500 population,
63.6and metropolitan special taxing district may amend its proposed property tax levy
63.7and must adopt a final property tax levy. Each county, city over 500 population, and
63.8metropolitan special taxing district may also amend its proposed budget and must adopt a
63.9final budget at the subsequent hearing. The final property tax levy must be adopted prior
63.10to adopting the final budget. A school district is not required to adopt its final budget at the
63.11subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
63.12subsequent to the date of the taxing authority's initial public hearing. If a continuation
63.13hearing is held, the subsequent hearing must be held either immediately following the
63.14continuation hearing or on a date subsequent to the continuation hearing. The subsequent
63.15hearing may be held at a regularly scheduled board or council meeting or at a special
63.16meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
63.17of a taxing authority does not have to be coordinated by the county auditor to prevent a
63.18conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
63.19other taxing authority. All subsequent hearings must be held prior to five working days
63.20after December 20 of the levy year. The date, time, and place of the subsequent hearing
63.21must be announced at the initial public hearing or at the continuation hearing.
63.22    (m) The property tax levy certified under section 275.07 by a city of any population,
63.23county, metropolitan special taxing district, regional library district, or school district
63.24must not exceed the proposed levy determined under subdivision 1, except by an amount
63.25up to the sum of the following amounts:
63.26    (1) the amount of a school district levy whose voters approved a referendum to
63.27increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
63.28the proposed levy was certified;
63.29    (2) the amount of a city or county levy approved by the voters after the proposed
63.30levy was certified;
63.31    (3) the amount of a levy to pay principal and interest on bonds approved by the
63.32voters under section 475.58 after the proposed levy was certified;
63.33    (4) the amount of a levy to pay costs due to a natural disaster occurring after the
63.34proposed levy was certified, if that amount is approved by the commissioner of revenue
63.35under subdivision 6a;
64.1    (5) the amount of a levy to pay tort judgments against a taxing authority that become
64.2final after the proposed levy was certified, if the amount is approved by the commissioner
64.3of revenue under subdivision 6a;
64.4    (6) the amount of an increase in levy limits certified to the taxing authority by the
64.5commissioner of education or the commissioner of revenue after the proposed levy was
64.6certified; and
64.7    (7) the amount required under section 126C.55.
64.8    (n) This subdivision does not apply to towns and special taxing districts other than
64.9regional library districts and metropolitan special taxing districts.
64.10    (o) Notwithstanding the requirements of this section, the employer is required to
64.11meet and negotiate over employee compensation as provided for in chapter 179A.
64.12EFFECTIVE DATE.This section is effective for proposed notices and hearings
64.13held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

64.14    Sec. 32. Minnesota Statutes 2006, section 275.065, subdivision 8, is amended to read:
64.15    Subd. 8. Hearing. Notwithstanding any other provision of law, Ramsey County,
64.16the city of St. Paul, and Independent School District No. 625 are authorized to and shall
64.17hold their initial public hearing jointly. The hearing must be held during the week of on
64.18the second Tuesday of ~~December~~ November each year. The advertisement required in
64.19subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the
64.20requirements of this section.
64.21    Ramsey County is authorized to hold an additional initial hearing or hearings as
64.22provided under this section, provided that any additional hearings must not conflict
64.23with the initial or continuation hearing dates of the other taxing districts. However, if
64.24Ramsey County elects not to hold such additional initial hearing or hearings, the joint
64.25initial hearing required by this subdivision must be held in a St. Paul location convenient
64.26to residents of Ramsey County.
64.27EFFECTIVE DATE.This section is effective for proposed notices and hearings
64.28held in 2009 and thereafter, for property taxes payable in 2010 and thereafter, except that
64.29proposed notices and hearings held in 2008 may be held during the week of the second
64.30Tuesday of December.

64.31    Sec. 33. Minnesota Statutes 2006, section 275.065, subdivision 9, is amended to read:
64.32    Subd. 9. Aitkin County and school district hearing. Notwithstanding any other
64.33law, Aitkin County and Independent School District No. 1, and the city of Aitkin, or any
64.34two of them, may hold their initial public hearing jointly. The hearing must be held on
65.1the second Tuesday of ~~December~~ November each year. The advertisement required in
65.2subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the
65.3requirements of this section.
65.4EFFECTIVE DATE.This section is effective for proposed notices and hearings
65.5held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

65.6    Sec. 34. Minnesota Statutes 2006, section 275.065, subdivision 10, is amended to read:
65.7    Subd. 10. Nobles County; joint initial public hearing. Notwithstanding any
65.8other law, Nobles County, the city of Worthington, and Independent School District No.
65.9518, Worthington, or any two of them, may hold their initial public hearing jointly. The
65.10hearing must be held on the second Tuesday of ~~December~~ November each year. The
65.11advertisement required in subdivision 5a may be a joint advertisement. The hearing is
65.12otherwise subject to the requirements of this section.
65.13EFFECTIVE DATE.This section is effective for proposed notices and hearings
65.14held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.

65.15    Sec. 35. Minnesota Statutes 2006, section 282.08, is amended to read:
65.16282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.
65.17    The net proceeds from the sale or rental of any parcel of forfeited land, or from the
65.18sale of products from the forfeited land, must be apportioned by the county auditor to the
65.19taxing districts interested in the land, as follows:
65.20    (1) the portion required to pay any amounts included in the appraised value
65.21under section 282.01, subdivision 3, as representing increased value due to any public
65.22improvement made after forfeiture of the parcel to the state, but not exceeding the amount
65.23certified by the ~~clerk of the municipality~~ appropriate governmental authority must be
65.24apportioned to the ~~municipal~~ governmental subdivision entitled to it;
65.25    (2) the portion required to pay any amount included in the appraised value under
65.26section 282.019, subdivision 5, representing increased value due to response actions
65.27taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses
65.28certified by the Pollution Control Agency or the commissioner of agriculture, must be
65.29apportioned to the agency or the commissioner of agriculture and deposited in the fund
65.30from which the expenses were paid;
65.31    (3) the portion of the remainder required to discharge any special assessment
65.32chargeable against the parcel for drainage or other purpose whether due or deferred at
65.33the time of forfeiture, must be apportioned to the ~~municipal~~ governmental subdivision
65.34entitled to it; and
66.1    (4) any balance must be apportioned as follows:
66.2    (i) The county board may annually by resolution set aside no more than 30 percent
66.3of the receipts remaining to be used for forest development on tax-forfeited land and
66.4dedicated memorial forests, to be expended under the supervision of the county board. It
66.5must be expended only on projects improving the health and management of the forest
66.6resource.
66.7    (ii) The county board may annually by resolution set aside no more than 20 percent
66.8of the receipts remaining to be used for the acquisition and maintenance of county parks
66.9or recreational areas as defined in sections 398.31 to 398.36, to be expended under the
66.10supervision of the county board.
66.11    (iii) Any balance remaining must be apportioned as follows: county, 40 percent;
66.12town or city, 20 percent; and school district, 40 percent, provided, however, that in
66.13unorganized territory that portion which would have accrued to the township must be
66.14administered by the county board of commissioners.
66.15EFFECTIVE DATE.This section is effective the day following final enactment.

66.16    Sec. 36. Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:
66.17    Subdivision 1. Program qualifications. The qualifications for the senior citizens'
66.18property tax deferral program are as follows:
66.19    (1) the property must be owned and occupied as a homestead by a person 65 years of
66.20age or older. In the case of a married couple, ~~both~~ only one of the spouses must be at least
66.2165 years old at the time the first property tax deferral is granted, regardless of whether the
66.22property is titled in the name of one spouse or both spouses, or titled in another way that
66.23permits the property to have homestead status;
66.24    (2) the total household income of the qualifying ~~homeowners~~ homeowner, or in the
66.25case of a married couple, the qualifying homeowner and spouse, as defined in section
66.26290A.03, subdivision 5 , for the calendar year preceding the year of the initial application
66.27may not exceed ~~$60,000~~ $80,000;
66.28    (3) the homestead must have been owned and occupied as the homestead of at
66.29least one of the ~~qualifying~~ homeowners for at least 15 years prior to the year the initial
66.30application is filed;
66.31    (4) there are no state or federal tax liens or judgment liens on the homesteaded
66.32property;
66.33    (5) there are no mortgages or other liens on the property that secure future advances,
66.34except for those subject to credit limits that result in compliance with clause (6); and
67.1    (6) the total unpaid balances of debts secured by mortgages and other liens on the
67.2property, including unpaid and delinquent special assessments and interest and any
67.3delinquent property taxes, penalties, and interest, but not including property taxes payable
67.4during the year, does not exceed 75 percent of the assessor's estimated market value for
67.5the year.
67.6EFFECTIVE DATE.This section is effective for applications filed on or after
67.7July 1, 2008.

67.8    Sec. 37. Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:
67.9    Subd. 3. Excess-income certification by taxpayer. A taxpayer whose initial
67.10application has been approved under subdivision 2 shall notify the commissioner of
67.11revenue in writing by July 1 if the taxpayer's household income for the preceding calendar
67.12year exceeded ~~$60,000~~ $80,000. The certification must state the homeowner's total
67.13household income for the previous calendar year. No property taxes may be deferred
67.14under this chapter in any year following the year in which a program participant filed or
67.15should have filed an excess-income certification under this subdivision showing income in
67.16excess of the maximum allowed, unless the participant has filed a resumption of eligibility
67.17certification as described in subdivision 4.
67.18EFFECTIVE DATE.This section is effective for applications filed on or after
67.19July 1, 2008.

67.20    Sec. 38. Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:
67.21    Subd. 4. Resumption of eligibility certification by taxpayer. A taxpayer who has
67.22previously filed an excess-income certification under subdivision 3 may resume program
67.23participation if the taxpayer's household income for a subsequent year is ~~$60,000~~ $80,000
67.24or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
67.25the commissioner of revenue in writing by July 1 of the year following a calendar year in
67.26which the taxpayer's household income is ~~$60,000~~ $80,000 or less. The certification must
67.27state the taxpayer's total household income for the previous calendar year. Once a taxpayer
67.28resumes participation in the program under this subdivision, participation will continue
67.29until the taxpayer files a subsequent excess-income certification under subdivision 3 or
67.30until participation is terminated under section 290B.08, subdivision 1.
67.31EFFECTIVE DATE.This section is effective for applications filed on or after
67.32July 1, 2008.

67.33    Sec. 39. Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:
68.1    Subdivision 1. Determination by commissioner. The commissioner shall
68.2determine each qualifying homeowner's "annual maximum property tax amount"
68.3following approval of the homeowner's initial application and following the receipt of a
68.4resumption of eligibility certification. The "annual maximum property tax amount" equals
68.5three percent of the homeowner's total household income for the year preceding either the
68.6initial application or the resumption of eligibility certification, whichever is applicable.
68.7Following approval of the initial application, the commissioner shall determine the
68.8qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative
68.9to the appropriate assessment year for any homeowner whose total household income
68.10for the previous year exceeds ~~$60,000~~ $80,000. No tax shall be deferred in any year in
68.11which the homeowner does not meet the program qualifications in section 290B.03. The
68.12maximum allowable total deferral is equal to 75 percent of the assessor's estimated market
68.13value for the year, less the balance of any mortgage loans and other amounts secured by
68.14liens against the property at the time of application, including any unpaid and delinquent
68.15special assessments and interest and any delinquent property taxes, penalties, and interest,
68.16but not including property taxes payable during the year.
68.17EFFECTIVE DATE.This section is effective for applications received on or after
68.18July 1, 2008.

68.19    Sec. 40. Minnesota Statutes 2006, section 290B.07, is amended to read:
68.20290B.07 LIEN; DEFERRED PORTION.
68.21    (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
68.22or special assessments and interest deferred under this chapter is deemed a loan from the
68.23state to the program participant. The commissioner must ~~compute the interest as provided~~
68.24~~in section~~ ~~270C.40, subdivision 5, but not to exceed five percent, and~~ maintain records of
68.25the total deferred amount and interest for each participant. Interest shall accrue beginning
68.26September 1 of the payable year for which the taxes are deferred, provided that no interest
68.27shall be charged on (1) deferred property tax amounts on applications filed on or after
68.28July 1, 2008, or (2) deferred property taxes beginning with taxes payable in 2009 on
68.29applications filed prior to July 1, 2008. Any deferral made under this chapter shall not
68.30be construed as delinquent property taxes.
68.31    The lien created under section 272.31 continues to secure payment by the taxpayer,
68.32or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
68.33respect to all years for which amounts are deferred. The lien for deferred taxes and interest
68.34has the same priority as any other lien under section 272.31, except that liens, including
68.35mortgages, recorded or filed prior to the recording or filing of the notice under section
69.1290B.04, subdivision 2 , have priority over the lien for deferred taxes and interest. A
69.2seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser
69.3or an assignee of the purchaser, has priority over deferred taxes and interest on deferred
69.4taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred
69.5taxes and interest for future years has the same priority as the lien for deferred taxes and
69.6interest for the first year, which is always higher in priority than any mortgages or other
69.7liens filed, recorded, or created after the notice recorded or filed under section 290B.04,
69.8subdivision 2 . The county treasurer or auditor shall maintain records of the deferred
69.9portion and shall list the amount of deferred taxes for the year and the cumulative deferral
69.10and interest for all previous years as a lien against the property. In any certification of
69.11unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes
69.12payable in the current year, deferred taxes and interest, and delinquent taxes. Payment
69.13of the deferred portion becomes due and owing at the time specified in section 290B.08.
69.14Upon receipt of the payment, the commissioner shall issue a receipt for it to the person
69.15making the payment upon request and shall notify the auditor of the county in which the
69.16parcel is located, within ten days, identifying the parcel to which the payment applies.
69.17Upon receipt by the commissioner of revenue of collected funds in the amount of the
69.18deferral, the state's loan to the program participant is deemed paid in full.
69.19    (b) If property for which taxes have been deferred under this chapter forfeits
69.20under chapter 281 for nonpayment of a nondeferred property tax amount, or because
69.21of nonpayment of amounts previously deferred following a termination under section
69.22290B.08 , the lien for the taxes deferred under this chapter, plus interest and costs, shall be
69.23canceled by the county auditor as provided in section 282.07. However, notwithstanding
69.24any other law to the contrary, any proceeds from a subsequent sale of the property under
69.25chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale
69.26fund for any direct costs of selling the property or any costs directly related to preparing
69.27the property for sale, and then to reimburse the state for the amount of the canceled lien.
69.28Within 90 days of the receipt of any sale proceed to which the state is entitled under these
69.29provisions, the county auditor must pay those funds to the commissioner of revenue by
69.30warrant for deposit in the general fund. No other deposit, use, distribution, or release of
69.31gross sale proceeds or receipts may be made by the county until payments sufficient
69.32to fully reimburse the state for the canceled lien amount have been transmitted to the
69.33commissioner.
69.34EFFECTIVE DATE.This section is effective July 1, 2008.

69.35    Sec. 41. [290D.01] CITATION.
70.1    This program shall be named the "seasonal recreational property tax deferral
70.2program."
70.3EFFECTIVE DATE.This section is effective July 1, 2009.

70.4    Sec. 42. [290D.02] TERMS.
70.5    Subdivision 1. Terms. For purposes of sections 290D.01 to 290D.08, the terms
70.6defined in this section have the meanings given them.
70.7    Subd. 2. Primary property owner. "Primary property owner" means a person who
70.8(1) has been the owner, or one of the owners, of the eligible property for at least 15 years
70.9prior to the year the application is filed under section 290D.04; and (2) applies for the
70.10deferral of property taxes under section 290D.04.
70.11    Subd. 3. Secondary property owner. "Secondary property owner" means any
70.12person, other than the primary property owner, who has been an owner of the eligible
70.13property for at least 15 years prior to the year the initial application is filed for deferral
70.14of property taxes under section 290D.04.
70.15    Subd. 4. Eligible property. "Eligible property" means a parcel of property or
70.16contiguous parcels of property under the same ownership classified as noncommercial
70.17seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.
70.18    Subd. 5. Base property tax amount. "Base property tax amount" means the total
70.19property taxes levied by all taxing jurisdictions, including special assessments, on the
70.20eligible property in the year prior to the year that the initial application is approved under
70.21section 290D.04 and payable in the year of the application.
70.22    Subd. 6. Special assessments. "Special assessments" means any assessment, fee, or
70.23other charge that may be made by law, and that appears on the property tax statement for
70.24the property for collection under the laws applicable to the enforcement of real estate taxes.
70.25    Subd. 7. Commissioner. "Commissioner" means the commissioner of revenue.
70.26EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
70.27and thereafter.

70.28    Sec. 43. [290D.03] QUALIFICATIONS FOR DEFERRAL.
70.29    In order for an eligible property to qualify for treatment under this program:
70.30    (1) the eligible property must have been owned solely by the primary property owner,
70.31or jointly with others, for at least 15 years prior to the year the initial application is filed;
70.32    (2) there must be no state or federal tax liens or judgment liens on the eligible
70.33property;
71.1    (3) there must be no mortgages or other liens on the eligible property that secure
71.2future advances, except for those subject to credit limits that result in compliance with
71.3clause (4); and
71.4    (4) the total unpaid balances of debts secured by mortgages and other liens on the
71.5eligible property, including unpaid and delinquent special assessments and interest and
71.6any delinquent property taxes, penalties, and interest, but not including property taxes
71.7payable during the year, must not exceed 60 percent of the assessor's estimated market
71.8value for the current assessment year.
71.9EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
71.10and thereafter.

71.11    Sec. 44. [290D.04] APPLICATION FOR DEFERRAL.
71.12    Subdivision 1. Initial application. (a) A primary owner of a property meeting
71.13the qualifications under section 290D.03 may apply to the commissioner for deferral
71.14of taxes on the eligible property. Applications are due on or before July 1 for deferral
71.15of any taxes payable in the following year. The application, which must be prescribed
71.16by the commissioner, shall include the following items and any other information the
71.17commissioner deems necessary:
71.18    (1) the name, address, and Social Security number of the primary property owner
71.19and secondary property owners, if any;
71.20    (2) a copy of the property tax statement for the current taxes payable year for the
71.21eligible property;
71.22    (3) the initial year of ownership of the primary property owner and any second
71.23property owners of the eligible property;
71.24    (4) information on any mortgage loans or other amounts secured by mortgages or
71.25other liens against the eligible property, for which purpose the commissioner may require
71.26the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the
71.27balance owing on the mortgage loan provided by the mortgage holder. The commissioner
71.28may require the appropriate documents in connection with obtaining and confirming
71.29information on unpaid amounts secured by other liens; and
71.30    (5) the signatures of the primary property owner and all other owners, if any, stating
71.31that each owner agrees to enroll the eligible property in the program to defer property
71.32taxes under this chapter.
71.33    The application must state that program participation is voluntary. The application
71.34must also state that program participation includes authorization for the annual deferred
72.1amount. The deferred property tax calculated by the county and the cumulative deferred
72.2property tax amount is public data.
72.3    (b) As part of the initial application process, if the property is abstract property, the
72.4commissioner may require the applicant to obtain at the applicant's cost a report prepared
72.5by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens,
72.6judgments, and state and federal tax lien notices which were recorded on or after the date
72.7of that last deed with respect to the eligible property or to the applicant.
72.8    The certificate or report need not include references to any documents filed or
72.9recorded more than 40 years prior to the date of the certification or report. The certification
72.10or report must be as of a date not more than 30 days prior to submission of the application
72.11under this section.
72.12    The commissioner may also require the county recorder or county registrar of the
72.13county where the eligible property is located to provide copies of recorded documents
72.14related to the applicant of the eligible property, for which the recorder or registrar shall
72.15not charge a fee. The commissioner may use any information available to determine or
72.16verify eligibility under this section.
72.17    Subd. 2. Approval; recording. The commissioner shall approve all initial
72.18applications that qualify under this chapter and shall notify the primary property owner on
72.19or before December 1. The commissioner may investigate the facts or require confirmation
72.20in regard to an application. The commissioner shall record or file a notice of qualification
72.21for deferral, including the names of the primary and any secondary property owners and a
72.22legal description of the eligible property, in the office of the county recorder, or registrar of
72.23titles, whichever is applicable, in the county where the eligible property is located. The
72.24notice must state that it serves as a notice of lien and that it includes deferrals under this
72.25section for future years. The primary property owner shall pay the recording or filing fees
72.26for the notice, which, notwithstanding section 357.18, shall be paid by that owner at the
72.27time of satisfaction of the lien.
72.28    Subd. 3. Penalty for failure; investigations. (a) The commissioner shall assess
72.29a penalty equal to 20 percent of the property taxes improperly deferred in the case of a
72.30false application. The commissioner shall assess a penalty equal to 50 percent of the
72.31property taxes improperly deferred if the taxpayer knowingly filed a false application. The
72.32commissioner shall assess penalties under this section through the issuance of an order
72.33under the provisions of chapter 270C. Persons affected by a commissioner's order issued
72.34under this section may appeal as provided in chapter 270C.
73.1    (b) The commissioner may conduct investigations related to initial applications
73.2required under this chapter within the period ending 3-1/2 years from the due date of
73.3the application.
73.4    Subd. 4. Annual certification to commissioner. Annually on or before July 1,
73.5the primary property owner must certify to the commissioner that the person continues
73.6to qualify as a primary property owner. If the primary owner has died or has transferred
73.7the property in the preceding year, a certification may be filed by the primary owner's
73.8spouse, or by one of the secondary owners, provided that the person is currently an
73.9owner of the property. In this case, the primary owner's spouse or the secondary owner
73.10shall be considered the primary owner from that point forward. If neither the primary
73.11owner, the primary owner's spouse, or a secondary owner is eligible to file the required
73.12annual certification for the property, the property's participation in the program shall be
73.13terminated, and the procedures in section 290D.07 apply.
73.14    Subd. 5. Annual notice to primary property owner. Annually, on or before
73.15September 1, the commissioner shall notify each primary property owner, in writing, of
73.16the total cumulative deferred taxes and accrued interest on the qualifying property as of
73.17that date.
73.18EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
73.19and thereafter.

73.20    Sec. 45. [290D.05] DEFERRED PROPERTY TAX AMOUNT.
73.21    Subdivision 1. Calculation of deferred property tax amount. Each year after
73.22the county auditor has determined the final property tax rates under section 275.08, the
73.23"deferred property tax amount" must be calculated on each eligible property. The deferred
73.24property tax amount is equal to 50 percent of the amount of the difference between (1) the
73.25total amount of property taxes and special assessments levied upon the eligible property
73.26for the current year by all taxing jurisdictions and (2) the eligible property's base property
73.27tax amount. Any tax attributable to new improvements made to the eligible property after
73.28the initial application has been approved under section 290D.04, subdivision 2, must be
73.29excluded in determining the deferred property tax amount. The eligible property's total
73.30current year's tax less the deferred property tax amount for the current year must be listed
73.31on the property tax statement and is the amount due to the county under chapter 276.
73.32Reference that the property is enrolled in the seasonal recreational property tax deferral
73.33program under this chapter and a state lien has been recorded must be clearly printed on
73.34the statement.
74.1    Subd. 2. Certification to commissioner. The county auditor shall annually, on or
74.2before April 15, certify to the commissioner the property tax deferral amounts determined
74.3under this section for each eligible property in the county. The commissioner shall
74.4prescribe the information that is necessary to identify the eligible properties.
74.5    Subd. 3. Limitation on total amount of deferred taxes. The total amount of
74.6deferred taxes and interest on a property, when added to (1) the balance owed on any
74.7mortgages on the property at the time of initial application; (2) other amounts secured by
74.8liens on the property at the time of the initial application; and (3) any unpaid and delinquent
74.9special assessments and interest and any delinquent property taxes, penalties, and interest,
74.10but not including property taxes payable during the year, must not exceed 60 percent of
74.11the assessor's estimated market value of the property for the current assessment year.
74.12EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
74.13and thereafter.

74.14    Sec. 46. [290D.06] LIEN; DEFERRED PORTION.
74.15    (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
74.16or special assessments and interest, deferred under this chapter is deemed a loan from the
74.17state to the program participant. The commissioner shall compute the interest as provided
74.18in section 270C.40, subdivision 5, but not to exceed two percent over the maximum
74.19interest rate provided in section 290B.07, paragraph (a), and maintain records of the total
74.20deferred amount and interest for each participant. Interest accrues beginning September 1
74.21of the payable year for which the taxes are deferred. Any deferral made under this chapter
74.22must not be construed as delinquent property taxes.
74.23    The lien created under section 272.31 continues to secure payment by the taxpayer,
74.24or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
74.25respect to all years for which amounts are deferred. The lien for deferred taxes and interest
74.26has the same priority as any other lien under section 272.31, except that liens, including
74.27mortgages, recorded or filed prior to the recording or filing of the notice under section
74.28290D.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
74.29seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an
74.30assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes,
74.31regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes
74.32and interest for future years has the same priority as the lien for deferred taxes and interest
74.33for the first year, which is always higher in priority than any mortgages or other liens filed,
74.34recorded, or created after the notice recorded or filed under section 290D.04, subdivision
74.352 . The county treasurer or auditor shall maintain records of the deferred portion and shall
75.1list the amount of deferred taxes for the year and the cumulative deferral and interest for
75.2all previous years as a lien against the eligible property. In any certification of unpaid
75.3taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in
75.4the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred
75.5portion becomes due and owing at the time specified in section 290D.07. Upon receipt of
75.6the payment, the commissioner shall issue a receipt to the person making the payment
75.7upon request and shall notify the auditor of the county in which the parcel is located,
75.8within ten days, identifying the parcel to which the payment applies. Upon receipt by the
75.9commissioner of collected funds in the amount of the deferral, the state's loan to the
75.10program participant is deemed paid in full.
75.11    (b) If eligible property for which taxes have been deferred under this chapter forfeits
75.12under chapter 281 for nonpayment of a nondeferred property tax amount, or because
75.13of nonpayment of amounts previously deferred following a termination under section
75.14290D.07, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
75.15canceled by the county auditor as provided in section 282.07. However, notwithstanding
75.16any other law to the contrary, any proceeds from a subsequent sale of the eligible property
75.17under chapter 282 or another law, must be used to first reimburse the county's forfeited
75.18tax sale fund for any direct costs of selling the eligible property or any costs directly
75.19related to preparing the eligible property for sale, and then to reimburse the state for
75.20the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to
75.21which the state is entitled under these provisions, the county auditor must pay those funds
75.22to the commissioner by warrant for deposit in the general fund. No other deposit, use,
75.23distribution, or release of gross sale proceeds or receipts may be made by the county until
75.24payments sufficient to fully reimburse the state for the canceled lien amount have been
75.25transmitted to the commissioner.
75.26EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
75.27and thereafter.

75.28    Sec. 47. [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF
75.29DEFERRED TAXES.
75.30    Subdivision 1. Termination. (a) The deferral of taxes granted under this chapter
75.31terminates when one of the following occurs:
75.32    (1) the eligible property is sold or transferred to someone other than the primary
75.33owner's spouse or a secondary owner;
76.1    (2) the death of the primary owner, or in the case of a married couple, after the
76.2death of both spouses, provided that there is not a secondary owner eligible to become
76.3the primary owner;
76.4    (3) the primary property owner notifies the commissioner, in writing, that all owners,
76.5including any secondary property owners, desire to discontinue the deferral; or
76.6    (4) the eligible property no longer qualifies under section 290D.03.
76.7    (b) An eligible property is not terminated from the program because no deferred
76.8property tax amount is determined for any given year after the eligible property's initial
76.9enrollment into the program.
76.10    (c) An eligible property is not terminated from the program if the eligible property
76.11subsequently becomes the homestead of one or more of the property owners and the
76.12property and the owners qualify for, and are immediately enrolled in, the senior deferral
76.13program under chapter 290B.
76.14    Subd. 2. Payment upon termination. Upon the termination of the deferral under
76.15subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments
76.16and interest, plus the recording or filing fees under this subdivision and section 290D.04,
76.17subdivision 2 , becomes due and payable to the commissioner within 90 days of termination
76.18of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2),
76.19and within one year of termination of the deferral for terminations under subdivision 1,
76.20paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely
76.21paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor
76.22of the county in which the parcel is located, identifying the parcel to which the payment
76.23applies and shall remit the recording or filing fees under this subdivision and section
76.24290D.04, subdivision 2, to the auditor. A notice of termination of deferral, containing the
76.25legal description and the recording or filing data for the notice of qualification for deferral
76.26under section 290D.04, subdivision 2, shall be prepared and recorded or filed by the
76.27county auditor in the same office in which the notice of qualification for deferral under
76.28section 290D.04, subdivision 2, was recorded or filed, and the county auditor shall mail a
76.29copy of the notice of termination to the property owner. The property owner shall pay the
76.30recording or filing fees. Upon recording or filing of the notice of termination of deferral,
76.31the notice of qualification for deferral under section 290D.04, subdivision 2, and the lien
76.32created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien,
76.33forfeiture, and other rules for the collection of ad valorem property taxes apply.
76.34EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
76.35and thereafter.

77.1    Sec. 48. [290D.08] STATE REIMBURSEMENT.
77.2    Subdivision 1. Determination; payment. The county auditor shall determine the
77.3total current year's deferred amount of property tax under this chapter in the county, and
77.4submit those amounts as part of the abstracts of tax lists submitted by the county auditors
77.5under section 275.29. The commissioner may make changes in the abstracts of tax lists as
77.6deemed necessary. The commissioner, after such review, shall pay the deferred amount of
77.7property tax to each county treasurer on or before August 31.
77.8    The county treasurer shall distribute as part of the October settlement the funds
77.9received as if they had been collected as part of the property tax.
77.10    Subd. 2. Appropriation. An amount sufficient to pay the total amount of property
77.11tax determined under subdivision 1, plus any amounts paid under section 290D.04,
77.12subdivision 4 , is annually appropriated from the general fund to the commissioner.
77.13EFFECTIVE DATE.This section is effective for applications filed July 1, 2009,
77.14and thereafter.

77.15    Sec. 49. Minnesota Statutes 2006, section 469.1813, subdivision 8, is amended to read:
77.16    Subd. 8. Limitation on abatements. In any year, the total amount of property
77.17taxes abated by a political subdivision under this section may not exceed (1) ten percent
77.18of the ~~current levy~~ net tax capacity of the political subdivision for the taxes payable year
77.19to which the abatement applies, or (2) $200,000, whichever is greater. The limit under
77.20this subdivision does not apply to:
77.21    (i) an uncollected abatement from a prior year that is added to the abatement levy; or
77.22    (ii) a taxpayer whose real and personal property is subject to valuation under
77.23Minnesota Rules, chapter 8100.
77.24EFFECTIVE DATE.This section is effective for abatement resolutions approved
77.25after the day following final enactment.

77.26    Sec. 50. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
77.27    Subd. 2. Transit taxing district. The metropolitan transit taxing district ~~is hereby~~
77.28~~designated as that portion of the metropolitan transit area lying within the following~~
77.29~~named cities, towns, or unorganized territory within the counties indicated:~~
77.30    ~~(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids,~~
77.31~~Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;~~
77.32    ~~(b) Carver County. Chanhassen, the city of Chaska;~~
77.33    ~~(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale,~~
77.34~~Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;~~
78.1    ~~(d) Ramsey County. All of the territory within Ramsey County;~~
78.2    ~~(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin,~~
78.3~~Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley,~~
78.4~~Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis,~~
78.5~~Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield,~~
78.6~~Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata,~~
78.7~~Woodland, the unorganized territory of Hennepin County;~~
78.8    ~~(f) Scott County. Prior Lake, Savage, Shakopee;~~
78.9    ~~(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport,~~
78.10~~Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport,~~
78.11~~Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury~~ means the
78.12metropolitan area.
78.13    The Metropolitan Council in its sole discretion may provide transit service by
78.14contract ~~beyond the boundaries of the metropolitan transit taxing district or~~ to cities and
78.15towns ~~within the taxing district~~ which are receiving financial assistance under section
78.16473.388 , upon petition therefor by an interested city, township or political subdivision
78.17within the metropolitan transit area. The Metropolitan Council may establish such
78.18terms and conditions as it deems necessary and advisable for providing the transit
78.19service, including such combination of fares and direct payments by the petitioner as
78.20will compensate the council for the full capital and operating cost of the service and the
78.21related administrative activities of the council. The amount of the levy made by any
78.22municipality to pay for the service shall be disregarded when calculation of levies subject
78.23to limitations is made, provided that cities and towns receiving financial assistance under
78.24section 473.388 shall not make a special levy under this subdivision without having first
78.25exhausted the available local transit funds as defined in section 473.388. The council shall
78.26not be obligated to extend service ~~beyond the boundaries of the taxing district, or~~ to cities
78.27and towns within the taxing district which are receiving financial assistance under section
78.28473.388 , under any law or contract unless or until payment therefor is received.
78.29EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
78.30thereafter.

78.31    Sec. 51. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
78.32    Subd. 8. State review. The commissioner of revenue shall certify the council's levy
78.33limitation under this section to the council by August 1 of the levy year. The council
78.34must certify its proposed property tax levy under this section to the commissioner of
78.35revenue by September 1 of the levy year. The commissioner of revenue shall annually
79.1determine whether the property tax for transit purposes certified by the council for levy
79.2following the adoption of its proposed budget is within the levy limitation imposed by
79.3~~subdivisions~~ subdivision 1 ~~and 1b~~. ~~The~~ ~~commissioner shall also annually determine~~
79.4~~whether the transit tax imposed on all taxable property within the metropolitan transit area~~
79.5~~but outside of the metropolitan transit taxing district is within the levy limitation imposed~~
79.6~~by subdivision 1a.~~ The determination must be completed prior to September 10 of each
79.7year. If current information regarding market valuation in any county is not transmitted to
79.8the commissioner in a timely manner, the commissioner may estimate the current market
79.9valuation within that county for purposes of making the calculations.
79.10EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
79.11thereafter.

79.12    Sec. 52. Minnesota Statutes 2006, section 473F.01, subdivision 2, is amended to read:
79.13    Subd. 2. Use of proceeds. ~~Except as provided in section~~ ~~473F.08, subdivision 3a~~,
79.14The proceeds from the areawide tax imposed under this chapter must be used by a local
79.15governmental unit in the same manner and for the same purposes as the proceeds from
79.16other ad valorem taxes levied by the local governmental unit.
79.17EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
79.18thereafter.

79.19    Sec. 53. Minnesota Statutes 2006, section 473F.08, subdivision 5, is amended to read:
79.20    Subd. 5. Areawide tax rate. On or before August 25 of each year, the county auditor
79.21shall certify to the administrative auditor that portion of the levy of each governmental
79.22unit determined under subdivisions 3, clause (a), ~~3a,~~ and 3b. The administrative auditor
79.23shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
79.24such levies from the areawide net tax capacity. On or before September 1 of each year, the
79.25administrative auditor shall certify the areawide tax rate to each of the county auditors.
79.26EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
79.27thereafter.

79.28    Sec. 54. Minnesota Statutes 2006, section 473F.08, subdivision 7a, is amended to read:
79.29    Subd. 7a. Certification of values; payment. The administrative auditor shall
79.30determine for each county the difference between the total levy on distribution value
79.31pursuant to subdivisions 3, clause (a), ~~3a,~~ and 3b, within the county and the total tax on
79.32contribution value pursuant to subdivision 6, within the county. On or before May 16 of
79.33each year, the administrative auditor shall certify the differences so determined to each
80.1county auditor. In addition, the administrative auditor shall certify to those county auditors
80.2for whose county the total tax on contribution value exceeds the total levy on distribution
80.3value the settlement the county is to make to the other counties of the excess of the total tax
80.4on contribution value over the total levy on distribution value in the county. On or before
80.5June 15 and November 15 of each year, each county treasurer in a county having a total tax
80.6on contribution value in excess of the total levy on distribution value shall pay one-half of
80.7the excess to the other counties in accordance with the administrative auditors certification.
80.8EFFECTIVE DATE.This section is effective for taxes payable in 2009 and
80.9thereafter.

80.10    Sec. 55. Laws 2008, chapter 154, article 2, section 11, the effective date, is amended to
80.11read:
80.12EFFECTIVE DATE.The amendments of this section to paragraph (b) and to the
80.13market value increase on the first tier of class 1c homestead resorts are effective for taxes
80.14payable in 2009 and thereafter. The rest of this section is effective for taxes payable in
80.152010 and thereafter.
80.16EFFECTIVE DATE.This section is effective the day following final enactment.

80.17    Sec. 56. WHITE COMMUNITY HOSPITAL DISTRICT.
80.18    Subdivision 1. Authorized. Notwithstanding the contiguity requirement in
80.19Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following cities
80.20and towns in St. Louis County may establish by resolution of their respective governing
80.21bodies the White Community Hospital District: the cities of Aurora, Biwabik, and Hoyt
80.22Lakes, and the towns of Biwabik, White, and Colvin. The proposed resolution to establish
80.23the hospital district must be published and is subject to referendum as provided in section
80.24447.31, subdivision 2.
80.25    Subd. 2. Powers; may make grants. (a) Except as otherwise provided in this
80.26section, the White Community Hospital District shall be organized and have the powers
80.27and duties provided in Minnesota Statutes, sections 447.31, except subdivisions 2, 5, and
80.286; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38.
80.29    (b) The hospital district may levy taxes as provided in this section to provide funding
80.30to make grants to the White Community Hospital and any affiliated health care facility or
80.31provider for any purpose authorized for hospital districts in Minnesota Statutes, sections
80.32447.31 to 447.38, except 447.331. A grant must not be made under this section until the
80.33governing body of the White Community Hospital, and any of its affiliated health care
80.34facilities or providers receiving a grant, have entered into a written agreement with the
81.1hospital district board stating that the governing body will comply with and is subject to
81.2all provisions of the Minnesota open meeting law in Minnesota Statutes, chapter 13D.
81.3    Subd. 3. Annexation; detachment. Once the hospital district is established, any
81.4other city, town, or unorganized area in St. Louis County may join the hospital district
81.5in the same manner provided in subdivision 1 for establishment of the hospital district.
81.6A city, town, or unorganized area that is a member of the hospital district may detach
81.7from the district in the same manner as it may join. An annexation to or detachment
81.8from the hospital district is effective for taxes payable in the following calendar year if
81.9the resolution is adopted, or in the case of an unorganized area the petition submitted
81.10to the county auditor, before July 1 of the levy year. A resolution adopted or petition
81.11submitted after July 1 of any year is effective for the taxes payable the year following
81.12the next levy year.
81.13    Subd. 4. Unorganized areas. An unorganized area in St. Louis County shall
81.14become a member of the hospital district if at least 51 percent of the residents of the
81.15unorganized area signed a petition submitted to the hospital district board and the county
81.16auditor requesting to participate in the hospital district.
81.17    Subd. 5. Hospital district board. The hospital district shall be governed by a
81.18hospital board composed of one member of each participating city and town's governing
81.19body, appointed by the governing body. If the hospital district only has two members,
81.20each member city or town shall appoint two board members. The hospital district board
81.21must appoint from among its members a chair, clerk, treasurer, and any other officers the
81.22board deems necessary or useful. The St. Louis County Board of Commissioners shall
81.23appoint a resident of any unorganized area that is participating in the hospital district. All
81.24board members serve at the pleasure of the respective appointing authorities.
81.25    Subd. 6. No compensation; expenses. Board members shall serve without
81.26compensation but shall be eligible for per diem and expenses provided by, and at the
81.27discretion of, their respective appointing authorities.
81.28    Subd. 7. Operating tax levy. The hospital district board may levy a tax as
81.29provided in Minnesota Statutes, section 447.34, except as provided in this subdivision.
81.30If the hospital district board levies it must be a uniform tax rate levied against the net
81.31tax capacity of all taxable properties located within each participating city, town, or
81.32unorganized area. The maximum amount that may be levied in the hospital district must
81.33not exceed 0.066088 percent of the fully taxable market value of all taxable properties
81.34located within each participating city, town, or unorganized area.
82.1    Any tax levied by the hospital district is in addition to all other taxes levied on the
82.2property, including taxes levied for any other hospital purpose by a participating city
82.3or town. The levy must be disregarded in the calculation of all other rate or per capita
82.4levy limitations imposed by law.
82.5EFFECTIVE DATE; NO LOCAL APPROVAL.This section is effective the
82.6day following final enactment without local approval under Minnesota Statutes, section
82.7645.023, subdivision 1, paragraph (a), for taxes levied in 2008, payable in 2009, and
82.8thereafter.

82.9    Sec. 57. VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION;
82.10STORM SEWER UTILITY FEES.
82.11    Notwithstanding any other law to the contrary and pursuant to joint powers
82.12agreements authorized under Minnesota Statutes, sections 103B.211 and 471.59, the
82.13Vadnais Lake Area Water Management Organization may certify to the county auditor any
82.14fees or charges imposed by the organization under Minnesota Statutes, section 103B.211
82.15or 444.075, and the parcels on which the charges are imposed. The county auditor shall
82.16extend the charges on the property tax statements. The amounts must be certified by
82.17November 30 to appear on statements for taxes payable in the following year. The charges,
82.18if not paid, become delinquent and are subject to the same penalties, the same rate of
82.19interest, and become a lien upon the property in the same manner, as real property taxes.
82.20The charges shall be paid to the Vadnais Lake Area Water Management Organization by
82.21the county auditor in the same manner and at the same time as property taxes. The county
82.22auditor may charge the Vadnais Lake Area Water Management Organization a fee in the
82.23amount necessary to recover the costs of administering the charges.
82.24EFFECTIVE DATE.This section is effective the day following final enactment.

82.25    Sec. 58. CITY OF BROOKLYN CENTER; PARTICIPATION IN CRIME-FREE
82.26MULTIHOUSING PROGRAM.
82.27    (a) In addition to the requirements of Minnesota Statutes, section 273.128, if
82.28property located in the city of Brooklyn Center qualifies under paragraph (b), the owners
82.29or managers must complete the three phases of the city's crime-free multihousing program
82.30and the qualifying property must be annually certified by the police as participating
82.31in the program. If a qualifying property is not certified within one year after it is first
82.32determined to be a qualifying property under paragraph (b), or does not annually maintain
82.33its certification in the program, the city shall notify the property owner that the qualifying
82.34property must comply with the requirements of this section to maintain its classification
83.1as class 4d property. If a qualifying property is not in compliance within one year after
83.2receiving the notice from the city, the city shall issue a second notice and require the
83.3owners to enter into a plan to achieve compliance within one year. If, upon expiration
83.4of the one-year time period, the qualifying property has not been certified by the police
83.5as completing the program, the city shall notify the commissioner of the Housing
83.6Finance Agency and the commissioner shall remove the property from the list of class 4d
83.7properties certified to the assessor under Minnesota Statutes, section 273.128, subdivision
83.83. Once removed from the list, the property is not eligible for class 4d classification until
83.9it complies with this section and its compliance has been certified to the Housing Finance
83.10Agency by the city. Certification to the Housing Finance Agency must be made by May
83.1115 to be effective for taxes payable in the following year.
83.12    (b) A property is a qualifying property for purposes of this section's requirements if
83.13it satisfies each of the following requirements:
83.14    (1) the city offers a crime-free multihousing program through its city police;
83.15    (2) over the preceding three-year period, the number of police calls to the property
83.16exceeded the city's average number of calls for multiunit rental properties for the period
83.17by at least 25 percent, adjusted for the number of rental units;
83.18    (3) the police department has requested, in writing, the owners or managers of the
83.19property to enroll in the crime-free multihousing program and the owners or managers
83.20refused or failed to enroll within 60 days after the request, or failed to complete phases
83.21one and three within 90 days and all three phases of the program within a one-year time
83.22period; and
83.23    (4) the governing body of the city, by resolution, determines the property is a
83.24qualifying property under clauses (1) to (3).
83.25    (c) Calls for police or emergency assistance in response to domestic abuse or
83.26medical assistance shall not be counted toward the number of calls in paragraph (b), clause
83.27(2). For purposes of this section, "domestic abuse" has the meaning given in Minnesota
83.28Statutes, section 518B.01, subdivision 2.
83.29    (d) Low-income qualifying rental housing property classified as class 4d property
83.30for taxes payable in 2008 must meet the requirements of this section by May 15, 2011.
83.31EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
83.32compliance by the governing body of the city of Brooklyn Center and its chief clerical
83.33officer with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

83.34    Sec. 59. ASSESSMENT OF PROPERTIES OF PURELY PUBLIC CHARITIES.
84.1    Subdivision 1. Application. (a) To facilitate a review by the 2009 legislature of
84.2the property tax exemption for property of nonprofit organizations as purely public
84.3charities and the development of standards and criteria for the tax status of these facilities,
84.4this section:
84.5    (1) requires the commissioner of revenue to conduct an analysis of standards applied
84.6to determine the tax status of these organizations; and
84.7    (2) prohibits changes in assessment practices and policies regarding the property of
84.8these organizations.
84.9    (b) The purpose of this study is to allow the legislature to evaluate whether the
84.10judicially established rules and the assessment practices and policies in applying those
84.11rules to determine the tax status of these properties ensure that public benefits are, at
84.12least, commensurate with the costs of the exemption. The legislature does not intend, in
84.13requiring this study, to indicate an intention to expand or to narrow the existing rules for
84.14exempting institutions of purely public charity.
84.15    Subd. 2. Report by commissioner of revenue. (a) The commissioner of revenue
84.16shall survey all county assessors on:
84.17    (1) the tax status of property of institutions of purely public charity located in the
84.18state, including detail on the type of organization and the use of the property; and
84.19    (2) their practices and policies in determining the tax status of property of institutions
84.20of purely public charity, including the extent to which the assessment practices and
84.21policies require the institutions to provide goods or services at free or below market prices
84.22and on the treatment of government payments.
84.23    (b) The commissioner shall report the findings to the chairs of the house and senate
84.24committees with jurisdiction over taxation by February 1, 2009.
84.25    Subd. 3. Moratorium on changes in assessment practices. (a) An assessor
84.26may not change the current practices or policies used generally in assessing property
84.27of institutions of purely public charities.
84.28    (b) An assessor may not change the assessment of the taxable status of an existing
84.29property of an organization of purely public charity, unless the change is made as a result of
84.30a change in ownership, occupancy or use of the facility, or to correct an error. For currently
84.31taxable properties, the assessor may change the estimated market value of the property.
84.32    (c) This subdivision expires on the earlier of:
84.33    (1) the enactment of legislation establishing criteria for the property taxation of
84.34purely public charities; or
84.35    (2) adjournment of the 2009 regular legislative session to a date in calendar year
84.362010.
85.1EFFECTIVE DATE.This section is effective the day following final enactment.

85.2    Sec. 60. REPEALER.
85.3(a) Minnesota Statutes 2006, section 273.111, subdivision 6, is repealed.
85.4(b) Minnesota Statutes 2006, section 473.4461, is repealed.
85.5(c) Minnesota Statutes 2006, section 473F.08, subdivision 3a, is repealed.
85.6EFFECTIVE DATE.Paragraph (a) is effective for taxes payable in 2010 and
85.7thereafter. Paragraphs (b) and (c) are effective for taxes payable in 2009 and thereafter.

85.8ARTICLE 4

85.9LOCAL SALES TAXES

85.10    Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, as amended by
85.11Laws 2008, chapter 152, article 4, section 1, is amended to read:
85.12    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
85.13impose a general sales tax (1) under section 297A.992, (2) under section 297A.993,
85.14(3) if permitted by special law enacted prior to May 20, 2008, or (4) if the political
85.15subdivision enacted and imposed the tax before the effective date of section 477A.016 and
85.16its predecessor provision.
85.17    (b) This section governs the imposition of a general sales tax by the political
85.18subdivision. The provisions of this section preempt the provisions of any special law:
85.19    (1) enacted before June 2, 1997, or
85.20    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
85.21provision from this section's rules by reference.
85.22    (c) This section does not apply to or preempt a sales tax on motor vehicles or a
85.23special excise tax on motor vehicles.
85.24    (d) Until after December 31, 2011, a political subdivision may not advertise,
85.25promote, expend funds, or hold a referendum to support imposing a local option sales tax
85.26unless the tax was authorized by a special law enacted prior to May 20, 2008.
85.27EFFECTIVE DATE.This section is effective the day following final enactment.

85.28    Sec. 2. CITY OF CLEARWATER; TAXES AUTHORIZED.
85.29    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
85.30477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
85.31approval of the voters on November 7, 2006, the city of Clearwater may impose by
85.32ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
85.33subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
86.1Statutes, section 297A.99, govern the imposition, administration, collection, and
86.2enforcement of the tax authorized under this subdivision.
86.3    Subd. 2. Excise tax authorized. Notwithstanding Minnesota Statutes, section
86.4477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater
86.5may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up
86.6to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
86.7engaged within the city in the business of selling motor vehicles at retail.
86.8    Subd. 3. Use of revenues. The proceeds of the tax imposed under this section shall
86.9be used to pay for the costs of acquisition, construction, improvement, and development
86.10of a pedestrian bridge, and land and buildings for a community and recreation center. The
86.11total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund
86.12these projects is $12,000,000 plus any associated bond costs.
86.13    Subd. 4. Bonding authority. The city of Clearwater may issue bonds in an amount
86.14not to exceed $12,000,000 under Minnesota Statutes, chapter 475, to finance the capital
86.15expenditures and improvements authorized by the referendum under subdivision 3. An
86.16election to approve the bonds under Minnesota Statutes, section 475.59, is not required.
86.17The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section
86.18275.60 or 275.61. The debt represented by the bonds must not be included in computing
86.19any debt limitations applicable to the city, and the levy of taxes required by Minnesota
86.20Statutes, section 475.61, to pay the principal or any interest on the bonds must not be
86.21subject to any levy limitation.
86.22    Subd. 5. Termination of tax. The tax authorized under subdivision 1 terminates at
86.23the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the
86.24city council determines that sufficient funds have been raised from the tax to finance the
86.25capital and administrative costs of the improvements described in subdivision 3, plus the
86.26additional amount needed to pay the costs related to issuance of bonds under subdivision
86.274, including interest on the bonds. Any funds remaining after completion of the projects
86.28specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may
86.29be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
86.30at an earlier time if the city so determines by ordinance.
86.31EFFECTIVE DATE.This section is effective the day after compliance by the
86.32governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
86.33subdivisions 2 and 3.

86.34    Sec. 3. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
87.1    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
87.2section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to
87.3the approval of the voters on November 7, 2006, the city of North Mankato may impose
87.4by ordinance a sales and use tax of one-half of one percent for the purposes specified
87.5in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the
87.6imposition, administration, collection, and enforcement of the taxes authorized under
87.7this subdivision.
87.8    Subd. 2. Use of revenues. Revenues received from the tax authorized by
87.9subdivision 1 must be used to pay all or part of the capital costs of the following projects:
87.10    (1) the local share of the Trunk Highway 14/County State Aid Highway 41
87.11interchange project;
87.12    (2) development of regional parks and hiking and biking trails;
87.13    (3) expansion of the North Mankato Taylor Library;
87.14    (4) riverfront redevelopment; and
87.15    (5) lake improvement projects.
87.16    The total amount of revenues from the tax in subdivision 1 that may be used to fund
87.17these projects is $6,000,000 plus any associated bond costs.
87.18    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the
87.19voters at the November 7, 2006, referendum authorizing the imposition of the taxes in
87.20this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
87.21administrative expenses for the projects described in subdivision 2, in an amount that
87.22does not exceed $6,000,000. A separate election to approve the bonds under Minnesota
87.23Statutes, section 475.58, is not required.
87.24    (b) The debt represented by the bonds is not included in computing any debt
87.25limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
87.26475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
87.27    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires
87.28when the city council determines that the amount of revenues received from the taxes
87.29to pay for the projects under subdivision 2, first equals or exceeds $6,000,000 plus the
87.30additional amount needed to pay the costs related to issuance of bonds under subdivision
87.313, including interest on the bonds. Any funds remaining after completion of the projects
87.32and retirement or redemption of the bonds shall be placed in a capital facilities and
87.33equipment replacement fund of the city. The tax imposed under subdivision 1 may expire
87.34at an earlier time if the city so determines by ordinance.
88.1EFFECTIVE DATE.This section is effective the day after compliance by the
88.2governing body of the city of North Mankato with Minnesota Statutes, section 645.021,
88.3subdivision 3.

88.4    Sec. 4. CITY OF WINONA; TAXES AUTHORIZED.
88.5    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
88.6477A.016, or any other provision of law, ordinance, or city charter, if approved by the
88.7voters at a general or special election held before December 31, 2009, the city of Winona
88.8may impose by ordinance a sales and use tax of up to one-half of one percent for the
88.9purpose specified in subdivision 2. Except as otherwise provided in this section, the
88.10provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
88.11collection, and enforcement of the tax authorized under this subdivision.
88.12    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall
88.13be used to pay the city-borne costs for the construction of a street connection from the
88.14city of Winona to Minnesota State Highways 61 and 43. The construction will provide
88.15access to the city's newly built industrial park and additional access to a hospital. The total
88.16amount of revenues from the tax in subdivision 1 that may be used to fund this project is
88.17$8,000,000 plus any associated bond costs.
88.18    Subd. 3. Bonding authority. The city of Winona may issue bonds in an amount
88.19not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital
88.20expenditures under subdivision 2. An election to approve the bonds under Minnesota
88.21Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is
88.22not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the
88.23bonds must not be included in computing any debt limitations applicable to the city, and
88.24the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or
88.25any interest on the bonds must not be subject to any levy limitation.
88.26    Subd. 4. Termination of tax. The tax authorized under subdivision 1 terminates
88.27at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when
88.28the city council determines that sufficient funds have been raised from the tax to finance
88.29the capital and administrative costs of the project described in subdivision 2, plus the
88.30additional amount needed to pay the costs related to issuance of bonds under subdivision
88.313, including interest on the bonds. Any funds remaining after completion of the project
88.32specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may
88.33be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
88.34at an earlier time if the city so determines by ordinance.
89.1EFFECTIVE DATE.This section is effective the day after compliance by
89.2the governing body of the city of Winona with Minnesota Statutes, section 645.021,
89.3subdivisions 2 and 3."
89.4Amend the title accordingly