1.1.................... moves to amend H.F. No. 481 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to
1.6read:
1.7    Subd. 2. Expenditures outside district. (a) For each tax increment financing
1.8district, an amount equal to at least 75 percent of the total revenue derived from tax
1.9increments paid by properties in the district must be expended on activities in the district
1.10or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
1.11in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
1.12For districts, other than redevelopment districts for which the request for certification
1.13was made after June 30, 1995, the in-district percentage for purposes of the preceding
1.14sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
1.15increments paid by properties in the district may be expended, through a development fund
1.16or otherwise, on activities outside of the district but within the defined geographic area of
1.17the project except to pay, or secure payment of, debt service on credit enhanced bonds.
1.18For districts, other than redevelopment districts for which the request for certification was
1.19made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
1.2020 percent. The revenue derived from tax increments for the district that are expended on
1.21costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
1.22calculating the percentages that must be expended within and without the district.
1.23    (b) In the case of a housing district, a housing project, as defined in section 469.174,
1.24subdivision 11 , is an activity in the district.
1.25    (c) All administrative expenses are for activities outside of the district, except that
1.26if the only expenses for activities outside of the district under this subdivision are for
2.1the purposes described in paragraph (d), administrative expenses will be considered as
2.2expenditures for activities in the district.
2.3    (d) The authority may elect, in the tax increment financing plan for the district,
2.4to increase by up to ten percentage points the permitted amount of expenditures for
2.5activities located outside the geographic area of the district under paragraph (a). As
2.6permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
2.7expenditures under paragraph (a), need not be made within the geographic area of the
2.8project. Expenditures that meet the requirements of this paragraph are legally permitted
2.9expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
2.10To qualify for the increase under this paragraph, the expenditures must:
2.11    (1) be used exclusively to assist housing that meets the requirement for a qualified
2.12low-income building, as that term is used in section 42 of the Internal Revenue Code; and
2.13    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
2.14the Internal Revenue Code, less the amount of any credit allowed under section 42 of
2.15the Internal Revenue Code; and
2.16    (3) be used to:
2.17    (i) acquire and prepare the site of the housing;
2.18    (ii) acquire, construct, or rehabilitate the housing; or
2.19    (iii) make public improvements directly related to the housing.; or
2.20(4) be used to develop housing:
2.21(i) if the market value of the housing does not exceed the lesser of:
2.22(A) 150 percent of the average market of single-family homes in that municipality; or
2.23(B) $200,000 for municipalities located in the metropolitan area, as defined in
2.24section 473.121, or $125,000 for all other municipalities; and
2.25(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
2.26demolition of existing structures, site preparation, and pollution abatement on one or
2.27more parcels, if the parcel:
2.28(A) contains a residence containing one to four family dwelling units that has been
2.29vacant for six or more months;
2.30(B) contains a residence containing one to four family dwelling units that is
2.31structurally substandard, as defined in section 469.174, subdivision 10;
2.32(C) is in foreclosure as defined in section 325N.10, subdivision 7, but without regard
2.33to whether the residence is the owner's principal residence, and a notice of pendency of the
2.34foreclosure has been recorded under section 580.032, except a notice of pendency is not
2.35required for a delinquency or default that relates to a contract for deed payment; or
3.1(D) is a vacant site, if the authority uses the parcel in connection with the
3.2development or redevelopment of a parcel qualifying under subitems (A) to (C).
3.3    (e) For a district created within a biotechnology and health sciences industry zone
3.4as defined in section 469.330, subdivision 6, or for an existing district located within
3.5such a zone, tax increment derived from such a district may be expended outside of the
3.6district but within the zone only for expenditures required for the construction of public
3.7infrastructure necessary to support the activities of the zone, land acquisition, and other
3.8redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are
3.9considered as expenditures for activities within the district.
3.10(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
3.11Increments may continue to be expended under this authority after that date, if they are
3.12used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
3.13(a), if December 31, 2016, is considered to be the last date of the five-year period after
3.14certification under that provision.
3.15EFFECTIVE DATE.This section is effective for any district that is subject to the
3.16provisions of section 469.1763, regardless of when the request for certification of the
3.17district was made.

3.18    Sec. 2. Laws 2010, chapter 389, article 7, section 22, is amended to read:
3.19    Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
3.20SPECIAL RULES.
3.21(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
3.22increment financing plan for a district, the rules under this section apply to a redevelopment
3.23tax increment financing district established by the city or an authority of the city. The
3.24redevelopment tax increment district includes parcels within the area bounded on the east
3.25by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
3.26Street, on the west by Llama Street, and on the south by a line running parallel to and
3.27600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
3.2828-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka
3.29County Regional Park property in its entirety. A parcel within this area that is included in
3.30a tax increment financing district that was certified before the date of enactment of this act
3.31may be included in the district created under this act if the initial district is decertified.
3.32(b) The requirements for qualifying a redevelopment tax increment district under
3.33Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
3.34within the district.
4.1(c) In addition to the costs permitted by Minnesota Statutes, section 469.176,
4.2subdivision 4j , does not apply to the district. Eligible expenditures within the district
4.3include but are not limited to (1) the city's share of the costs necessary to provide for
4.4the construction of the Northstar Transit Station and related infrastructure, including
4.5structured parking, a pedestrian overpass, and roadway improvements, (2) the cost of
4.6land acquired by the city or the housing and redevelopment authority in and for the city
4.7of Ramsey within the district prior to the establishment of the district, and (3) the cost
4.8of public improvements installed within the tax increment financing district prior to the
4.9establishment of the district.
4.10(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
4.11activities must be undertaken within a five-year period from the date of certification of a
4.12tax increment financing district, is considered to be met for the district if the activities
4.13were undertaken within ten years from the date of certification of the district.
4.14(e) Except for administrative expenses, the in-district percentage for purposes of
4.15the restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for
4.16this district is 100 percent.
4.17(f) The four-year period under Minnesota Statutes, section 469.176, subdivision
4.186, is extended to six years for the district.
4.19EFFECTIVE DATE.This section is effective upon approval by the governing
4.20body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes,
4.21section 645.021, subdivision 3.

4.22    Sec. 3. CITY OF LINO LAKES; TAX INCREMENT FINANCING.
4.23    Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
4.24Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax
4.25increments from tax increment financing district no. 1-10 through December 31, 2023,
4.26subject to the conditions in subdivision 2.
4.27    Subd. 2. Conditions for extension. All tax increments remaining in the account
4.28for the district after February 1, 2011, and all tax increments collected thereafter, must
4.29be used only to pay debt service on bonds issued to finance the interchange of Anoka
4.30County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public
4.31improvements serving the development known as Legacy at Woods Edge, and any bonds
4.32issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and
4.33469.1763 do not apply to expenditures made under this section.
5.1EFFECTIVE DATE.This section is effective upon compliance by the governing
5.2body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections
5.3469.1782, subdivision 2, and 645.021, subdivision 3.

5.4    Sec. 4. CITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.
5.5    Subdivision 1. Authorization. The governing body of the city of Taylors Falls may
5.6designate all or any part of the city as a border city development zone.
5.7    Subd. 2. Application of general law. (a) Minnesota Statutes, sections 469.1731 to
5.8469.1735, apply to the border city development zones designated under this section. The
5.9governing body of the city may exercise the powers granted under Minnesota Statutes,
5.10sections 469.1731 to 469.1735, including powers that apply outside of the zones.
5.11(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
5.12469.1735, subdivision 2, is appropriated to the commissioner of revenue.
5.13    Subd. 3. Allocation of state tax reductions. (a) The cumulative total amount of the
5.14state portion of the tax reductions for all years of the program under Minnesota Statutes,
5.15sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.
5.16(b) This allocation may be used for tax reductions provided in Minnesota Statutes,
5.17section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section
5.18469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls
5.19determines that the tax reduction or offset is necessary to enable a business to expand
5.20within the city or to attract a business to the city.
5.21(c) The commissioner of revenue may waive the limit under this subdivision using
5.22the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision
5.2312, paragraph (b).
5.24EFFECTIVE DATE.This section is effective the day following final enactment.


5.27    Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to
5.28read:
5.29    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
5.30impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if
5.31permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision
5.32enacted and imposed the tax before January 1, 1982, and its predecessor provision.
6.1    (b) This section governs the imposition of a general sales tax by the political
6.2subdivision. The provisions of this section preempt the provisions of any special law:
6.3    (1) enacted before June 2, 1997, or
6.4    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
6.5provision from this section's rules by reference.
6.6    (c) This section does not apply to or preempt a sales tax on motor vehicles or a
6.7special excise tax on motor vehicles.
6.8    (d) Until after May 31, 2010 2013, a political subdivision may not advertise,
6.9promote, expend funds, or hold a referendum to support imposing a local option sales tax
6.10unless it is for extension of an existing tax or the tax was authorized by a special law
6.11enacted prior to May 20, 2008 May 24, 2011.
6.12EFFECTIVE DATE.This section is effective the day following final enactment.

6.13    Sec. 2. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision
6.14to read:
6.15    Subd. 12. Tax may be imposed; Pope County. (a) If Pope County does not
6.16impose a tax under this section and approves imposition of the tax under this subdivision,
6.17Glenwood Township in Pope County may impose the aggregate materials tax under this
6.18section.
6.19    (b) For purposes of exercising the powers contained in this section, the "township" is
6.20deemed to be the "county."
6.21    (c) All provisions in this section apply to Glenwood Township, except that all
6.22proceeds of the tax must be retained by the township and used for the purposes described
6.23in subdivision 7.
6.24    (d) If Pope County imposes an aggregate materials tax under this section, the tax
6.25imposed by Glenwood Township under this subdivision is repealed on the effective date
6.26of the Pope County tax.
6.27EFFECTIVE DATE.This section is effective the day after the governing body
6.28of Glenwood Township and its chief clerical officer comply with section 645.021,
6.29subdivisions 2 and 3.

6.30    Sec. 3. Minnesota Statutes 2010, section 473.757, subdivision 2, is amended to read:
6.31    Subd. 2. Youth sports; library. To the extent funds are available from collections
6.32of the tax authorized by subdivision 10 after payment each year of debt service on the
6.33bonds authorized and issued under subdivision 9 and payments for the purposes described
7.1in subdivision 1, the county may also authorize, by resolution, and expend or make
7.2grants to the authority and to other governmental units and nonprofit organizations in an
7.3aggregate amount of up to $4,000,000 annually, increased by up to 1.5 percent annually
7.4to fund equally: (1) youth activities and youth and amateur sports within Hennepin
7.5County; and (2) the cost of extending the hours of operation of Hennepin County libraries
7.6and Minneapolis public libraries.
7.7The money provided under this subdivision is intended to supplement and not
7.8supplant county expenditures for these purposes as of May 27, 2006.
7.9Hennepin County must provide reports to the chairs of the committees and budget
7.10divisions in the senate and the house of representatives that have jurisdiction over
7.11education policy and funding, describing the uses of the money provided under this
7.12subdivision. The first report must be made by January 15, 2009, and subsequent reports
7.13must be made on January 15 of each subsequent odd-numbered year.
7.14EFFECTIVE DATE.This section is effective the day following final enactment.

7.15    Sec. 4. Minnesota Statutes 2010, section 473.757, subdivision 11, is amended to read:
7.16    Subd. 11. Uses of tax. (a) Revenues received from the tax imposed under
7.17subdivision 10 may be used:
7.18(1) to pay costs of collection;
7.19(2) to pay or reimburse or secure the payment of any principal of, premium, or
7.20interest on bonds issued in accordance with this act;
7.21(3) to pay costs and make expenditures and grants described in this section, including
7.22financing costs related to them;
7.23(4) to maintain reserves for the foregoing purposes deemed reasonable and
7.24appropriate by the county;
7.25(5) to pay for operating costs of the ballpark authority other than the cost of
7.26operating or maintaining the ballpark; and
7.27(6) to make expenditures and grants for youth activities and amateur sports and
7.28extension of library hours as described in subdivision 2;
7.29and for no other purpose.
7.30(b) Revenues from the tax designated for use under paragraph (a), clause (5), must
7.31be deposited in the operating fund of the ballpark authority.
7.32(c) After completion of the ballpark and public infrastructure, the tax revenues not
7.33required for current payments of the expenditures described in paragraph (a), clauses (1) to
7.34(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
7.35payment of future obligations under grants or other commitments for future expenditures
8.1which are permitted by this section paragraph (a), clauses (1) to (5), but no additional tax
8.2revenues may be deposited in the fund when its balance exceeds $20,000,000. Upon the
8.3redemption or defeasance of the bonds and the establishment of reserves adequate to meet
8.4such future obligations, the taxes shall terminate and shall not be reimposed.
8.5EFFECTIVE DATE.This section is effective the day following final enactment.

8.6    Sec. 5. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
8.7Laws 2006, chapter 259, article 3, section 3, is amended to read:
8.8    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes,
8.9section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
8.10city of Hermantown may, by ordinance, impose an additional sales tax of up to one
8.11percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that
8.12occur within the city. The proceeds of the tax imposed under this section must be used to
8.13meet the costs of:
8.14    (1) extending a sewer interceptor line;
8.15    (2) construction of a booster pump station, reservoirs, and related improvements
8.16to the water system; and
8.17    (3) construction of a building containing a police and fire station and an
8.18administrative services facility.
8.19(b) If the city imposed a sales tax of only one-half of one percent under paragraph
8.20(a), it may increase the tax to one percent to fund the purposes under paragraph (a)
8.21provided it is approved by the voters at a general election held before December 31, 2012.
8.22EFFECTIVE DATE.This section is effective the day following compliance by the
8.23city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.

8.24    Sec. 6. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
8.25Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
8.26    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
8.27subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
8.28administering the taxes and to pay for the following projects:
8.29    (1) transportation infrastructure improvements including regional highway and
8.30airport improvements;
8.31    (2) improvements to the civic center complex;
8.32    (3) a municipal water, sewer, and storm sewer project necessary to improve regional
8.33ground water quality; and
9.1    (4) construction of a regional recreation and sports center and other higher education
9.2facilities available for both community and student use.
9.3    (b) The total amount of capital expenditures or bonds for these projects listed in
9.4paragraph (a) that may be paid from the revenues raised from the taxes authorized in this
9.5section may not exceed $111,500,000. The total amount of capital expenditures or bonds
9.6for the project in clause (4) that may be paid from the revenues raised from the taxes
9.7authorized in this section may not exceed $28,000,000.
9.8(c) In addition to the projects authorized in paragraph (a) and not subject to the
9.9amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
9.10election under subdivision 5, paragraph (c), use the revenues received from the taxes and
9.11bonds authorized in this section to pay the costs of or bonds for the following purposes:
9.12(1) $17,000,000 for capital expenditures and bonds for the following Olmsted
9.13County transportation infrastructure improvements:
9.14(i) County State Aid Highway 34 reconstruction;
9.15(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
9.16(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22
9.17interchange;
9.18(iv) widening of County State Aid Highway 22 West Circle Drive; and
9.19(v) 60th Avenue Northwest corridor preservation;
9.20(2) $30,000,000 for city transportation projects including:
9.21(i) Trunk Highway 52 and 65th Street interchange;
9.22(ii) NW transportation corridor acquisition;
9.23(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
9.24(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
9.25(v) Southeast transportation corridor acquisition;
9.26(vi) Rochester International Airport expansion; and
9.27(vii) a transit operations center bus facility;
9.28(3) $14,000,000 for the Minnesota Rochester academic and complementary facilities;
9.29(4) $6,500,000 for the Rochester Community Center and Technical College/Winona
9.30State University career technical education and science and math facilities;
9.31(5) $6,000,000 for the Rochester Community Center and Technical College regional
9.32recreation facilities at University Center Rochester;
9.33(6) $20,000,000 for the Destination Medical Community Initiative; and
9.34(7) $8,000,000 for the regional public safety and 911 dispatch center facilities.
10.1(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
10.2and 2 may be used to fund transportation improvements related to a railroad bypass that
10.3would divert traffic from the city of Rochester.
10.4EFFECTIVE DATE.This section is effective the day following final enactment.

10.5    Sec. 7. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
10.6Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
10.7    Subd. 4. Bonding authority. (a) The city may issue bonds under Minnesota
10.8Statutes, chapter 475, to finance the capital expenditure and improvement projects.
10.9An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section
10.10475.58 , may be held in combination with the election to authorize imposition of the tax
10.11under subdivision 1. Whether to permit imposition of the tax and issuance of bonds
10.12may be posed to the voters as a single question. The question must state that the sales
10.13tax revenues are pledged to pay the bonds, but that the bonds are general obligations
10.14and will be guaranteed by the city's property taxes. An election to approve up to an
10.15additional $40,000,000 of bonds under Minnesota Statutes, section 475.58, may be held
10.16in combination with the election to authorize extension of the tax under subdivision 5,
10.17paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58,
10.18in an amount not to exceed $101,500,000 plus an amount equal to the costs of issuance
10.19of the bonds, may be held in combination with the election to authorize the extension of
10.20the tax under subdivision 5, paragraph (c).
10.21    (b) The city may shall enter into an agreement with Olmsted County under which the
10.22city and the county agree to jointly undertake and finance certain roadway infrastructure
10.23improvements. The agreement may shall provide that the city will make available to the
10.24county a portion of the sales tax revenues collected pursuant to the authority granted in
10.25this section and the bonding authority provided in this subdivision. The county may,
10.26pursuant to the agreement, issue its general obligation bonds in a principal amount not
10.27exceeding the amount authorized by its agreement with the city payable primarily from
10.28the sales tax revenues from the city under the agreement. The county's bonds must be
10.29issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that
10.30no election is required for the issuance of the bonds and the bonds are not included in
10.31the net debt of the county.
10.32    (b) (c) The issuance of bonds under this subdivision is not subject to Minnesota
10.33Statutes, section 275.60.
11.1    (c) (d) The bonds are not included in computing any debt limitation applicable to the
11.2city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
11.3and interest on the bonds is not subject to any levy limitation.
11.4    (e) The aggregate principal amount of bonds, plus the aggregate of the taxes used
11.5directly to pay eligible capital expenditures and improvements for projects listed in
11.6subdivision 3, paragraph (a), may not exceed $111,500,000, plus an amount equal to the
11.7costs related to issuance of the bonds. The aggregate principal amount of bonds plus the
11.8aggregate of the taxes used directly to pay the costs of eligible projects under subdivision
11.93, paragraph (c), may not exceed $101,500,000 plus an amount equal to the costs of
11.10issuance of the bonds.
11.11    (d) (f) The taxes may be pledged to and used for the payment of the bonds and
11.12any bonds issued to refund them, only if the bonds and any refunding bonds are general
11.13obligations of the city.
11.14EFFECTIVE DATE.This section is effective the day following final enactment.

11.15    Sec. 8. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
11.16Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
11.17    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and
11.182 expire at the later of (1) December 31, 2009, or (2) when the city council determines
11.19that sufficient funds have been received from the taxes to finance the first $71,500,000
11.20of capital expenditures and bonds for the projects authorized in subdivision 3, including
11.21the amount to prepay or retire at maturity the principal, interest, and premium due on any
11.22bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed
11.23in paragraph (b). Any funds remaining after completion of the project and retirement or
11.24redemption of the bonds shall also be used to fund the projects under subdivision 3. The
11.25taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
11.26determines by ordinance.
11.27    (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
11.28other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
11.29ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
11.30if approved by the voters of the city at a special election in 2005 or the general election in
11.312006. The question put to the voters must indicate that an affirmative vote would allow
11.32up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
11.33of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
11.34the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
11.35extended under this paragraph, the taxes expire when the city council determines that
12.1sufficient funds have been received from the taxes to finance the projects and to prepay
12.2or retire at maturity the principal, interest, and premium due on any bonds issued for the
12.3projects under subdivision 4. Any funds remaining after completion of the project and
12.4retirement or redemption of the bonds may be placed in the general fund of the city.
12.5(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
12.6other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
12.7ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city
12.8council determines that sufficient funds have been received from the taxes to finance
12.9$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3,
12.10paragraph (a), plus an amount equal to the costs of issuance of the bonds and including
12.11the amount to prepay or retire at maturity the principal, interest, and premiums due on
12.12any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the
12.13voters of the city at the general election in 2012. If the election to authorize the additional
12.14$101,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is
12.15placed on the general election ballot in 2012, the city may continue to collect the taxes
12.16authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the
12.17voters must indicate that an affirmative vote would allow sales tax revenues be raised for
12.18an extended period of time and an additional $101,500,000 of bonds plus an amount
12.19equal to the costs of issuance of the bonds, to be issued above the amount authorized in
12.20the previous elections required under paragraphs (a) and (b) for the projects and amounts
12.21specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended
12.22under this paragraph, the taxes expire when the city council determines that $101,500,000
12.23has been received from the taxes to finance the projects plus an amount sufficient to
12.24prepay or retire at maturity the principal, interest, and premium due on any bonds issued
12.25for the projects under subdivision 4, including any bonds issued to refund the bonds. Any
12.26funds remaining after completion of the projects and retirement or redemption of the
12.27bonds may be placed in the general fund of the city.
12.28EFFECTIVE DATE.This section is effective the day after compliance by the
12.29governing body of the city of Rochester with Minnesota Statutes, section 645.021,
12.30subdivision 3.

12.31    Sec. 9. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to read:
12.32    Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section 297A.99,
12.33subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be
12.34used to pay for the costs of acquisition, construction, improvement, and development of
12.35a regional parks, bicycle trails, park land, open space, and pedestrian bridge walkways,
13.1as described in the city improvement plan adopted by the city council by resolution on
13.2December 12, 2006, and land and buildings for a community and recreation center. The
13.3total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund
13.4these projects is $12,000,000 plus any associated bond costs.
13.5EFFECTIVE DATE.This section is effective the day after compliance by the
13.6governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
13.7subdivisions 2 and 3.

13.8    Sec. 10. CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.
13.9    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
13.10297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
13.11charter, as approved by the voters at the November 2, 2010 general election, the city
13.12of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one
13.13percent for the purposes specified in subdivision 2. Except as provided in this section, the
13.14provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
13.15collection, and enforcement of the tax authorized under this subdivision.
13.16    Subd. 2. Use of revenues. Revenues received from taxes authorized by subdivision
13.171 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay for
13.18all or part of the costs of the acquisition and betterment of a regional community ice arena
13.19facility. Authorized expenses include, but are not limited to, acquiring property, predesign,
13.20design, and paying construction, furnishing, and equipment costs related to the facility and
13.21paying debt service on bonds or other obligations issued by the Fergus Falls Port Authority
13.22to finance the facility. The amount of revenues from the tax imposed under subdivision 1
13.23that may be used to finance the facility and any associated costs is limited to $6,600,000.
13.24    Subd. 3. Termination of taxes. The tax imposed under this section expires when
13.25the Fergus Falls City Council determines that sufficient funds have been received from
13.26the taxes to finance the facility and to prepay or retire at maturity the principal, interest,
13.27and premium due on any bonds, including refunding bonds, issued by the Fergus Falls
13.28Port Authority for the facility. Any funds remaining after completion of the facility and
13.29retirement or redemption of the bonds may be placed in the general fund of the city of
13.30Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the
13.31city so determines by ordinance.
14.1EFFECTIVE DATE.This section is effective the day after the governing body
14.2of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota
14.3Statutes, section 645.021, subdivisions 2 and 3.

14.4    Sec. 11. CITY OF HUTCHINSON; TAXES AUTHORIZED.
14.5    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
14.6477A.016, or any other provision of law, ordinance, or city charter, as approved by
14.7the voters at a referendum held at the 2010 general election, the city of Hutchinson
14.8may impose by ordinance a sales and use tax of up to one-half of one percent for the
14.9purposes specified in subdivision 3. Except as otherwise provided in this section,
14.10Minnesota Statutes, section 297A.99, governs the imposition, administration, collection,
14.11and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section
14.12297A.99, subdivision 1, paragraph (d), does not apply to this section.
14.13    Subd. 2. Excise tax authorized. Notwithstanding Minnesota Statutes, section
14.14477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson
14.15may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up
14.16to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
14.17engaged within the city in the business of selling motor vehicles at retail.
14.18    Subd. 3. Use of revenues. Revenues received from the taxes authorized by this
14.19section must be used to pay the cost of collecting and administering the tax and to finance
14.20the costs of constructing the water treatment facility and renovating the wastewater
14.21treatment facility in the city of Hutchinson. Authorized costs include, but are not limited
14.22to, construction and engineering costs of the projects and associated bond costs.
14.23    Subd. 4. Termination of tax. The taxes authorized under subdivisions 1 and 2
14.24terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or
14.25(2) when the Hutchinson City Council determines that the amount of revenues raised is
14.26sufficient to pay for the projects under subdivision 3, plus the amount needed to finance
14.27the capital and administrative costs for the projects specified in subdivision 3, and to repay
14.28or retire at maturity the principal, interest, and premium due on any bonds issued for the
14.29projects. Any funds remaining after completion of the projects specified in subdivision
14.303 and retirement or redemption of the associated bonds may be placed in the general
14.31fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
14.32time if the city so determines by ordinance.
15.1EFFECTIVE DATE.This section is effective the day after compliance by the
15.2governing body of the city of Hutchinson with Minnesota Statutes, section 645.021,
15.3subdivisions 2 and 3.

15.4    Sec. 12. CITY OF LANESBORO; SALES AND USE TAX AUTHORIZED.
15.5    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
15.6sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance,
15.7or city charter, as approved by the voters at the November 2, 2010, general election, the
15.8city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one
15.9percent for the purposes specified in subdivision 2. Except as provided in this section,
15.10the provisions of Minnesota Statutes, section 297A.99, govern the imposition of the tax
15.11authorized under this subdivision.
15.12    Subd. 2. Use of revenues. Revenues received from the tax authorized under
15.13subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax
15.14and to pay for all or a part of the improvements to city streets and utility systems, and the
15.15betterment of city municipal buildings consisting of (i) street and utility improvements to
15.16Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street,
15.17Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250
15.18and 16; (ii) improvements to utility systems consisting of wastewater treatment facility
15.19improvements and electric utility improvements to the Lanesboro High Hazard Dam; and
15.20(iii) improvements to the Lanesboro community center, library, and city hall, including
15.21paying debt service on bonds or other obligations issued to fund these projects under
15.22subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be
15.23used to fund these projects is $800,000 plus any associated bond costs.
15.24    Subd. 3. Bonding authority. The city of Lanesboro may issue bonds under
15.25Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the
15.26projects authorized in subdivision 2. An election to approve the bonds under Minnesota
15.27Statutes, section 475.58, is not required. The issuance of bonds under this subdivision
15.28is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not
15.29included in computing any debt limitation applicable to the city and the levy of taxes
15.30under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is
15.31not subject to any levy limitation.
15.32The aggregate principal amount of the bonds plus the aggregate of the taxes used
15.33directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus
15.34an amount equal to the costs related to issuance of the bonds and capitalized interest.
16.1The taxes authorized in subdivision 1 may be pledged and used for payments of
16.2the bonds and bonds issued to refund them, only if the bonds and any refunding bonds
16.3are general obligations of the city.
16.4    Subd. 4. Termination of tax. The tax imposed under subdivision 1 expires when
16.5the Lanesboro City Council determines that sufficient funds have been raised from the
16.6taxes to finance the projects authorized under subdivision 2 and to prepay or retire at
16.7maturity the principal, interest, and premium due on any bonds issued under subdivision 3.
16.8Any funds remaining after completion of the project and retirement or redemption of the
16.9bonds may be placed in the general fund of the city. The tax imposed under subdivision 1
16.10may expire at an earlier time if the city so determines by ordinance.
16.11EFFECTIVE DATE.This section is effective the day after the governing body of
16.12the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section
16.13645.021, subdivisions 2 and 3.

16.14    Sec. 13. CITY OF MARSHALL; SALES AND USE TAX.
16.15    Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section
16.16297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter,
16.17the city of Marshall, if approved by the voters at a general election held within two
16.18years of the date of final enactment of this section, may impose the tax authorized under
16.19subdivision 2. Two separate ballot questions must be presented to the voters, one for each
16.20of the two facility projects named in subdivision 3.
16.21    Subd. 2. Sales and use tax authorized. The city of Marshall may impose by
16.22ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
16.23subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions
16.241 and 2, govern the imposition, administration, collection, and enforcement of the tax
16.25authorized under this subdivision.
16.26    Subd. 3. Use of sales and use tax revenues. The revenues derived from the tax
16.27authorized under subdivision 2 must be used by the city of Marshall to pay the costs of
16.28collecting and administering the sales and use tax and to pay all or part of the costs of the
16.29new and existing facilities of the Minnesota Emergency Response and Industry Training
16.30Center and all or part of the costs of the new facilities of the Southwest Minnesota
16.31Regional Amateur Sports Center. Authorized expenses include, but are not limited to,
16.32acquiring property, predesign, design, and paying construction, furnishing, and equipment
17.1costs related to these facilities and paying debt service on bonds or other obligations issued
17.2by the city of Marshall under subdivision 4 to finance the capital costs of these facilities.
17.3    Subd. 4. Bonds. (a) If the imposition of a sales and use tax is approved by the voters,
17.4the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
17.5or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
17.6to refund bonds previously issued. The aggregate principal amount of bonds issued under
17.7this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment
17.8of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
17.9available to the city of Marshall, including the tax authorized under subdivision 2.
17.10(b) The bonds are not included in computing any debt limitation applicable to the
17.11city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
17.12principal and interest on the bonds, is not subject to any levy limitation. A separate
17.13election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
17.14    Subd. 5. Termination of taxes. The tax imposed under subdivision 2 expires at the
17.15earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines
17.16that the amount of revenues received from the tax to pay for the capital and administrative
17.17costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to
17.18be spent for the facilities plus the additional amount needed to pay the costs related to
17.19issuance of the bonds under subdivision 4, including interest on the bonds. Any funds
17.20remaining after payment of all such costs and retirement or redemption of the bonds shall
17.21be placed in the general fund of the city. The tax imposed under subdivision 2 may expire
17.22at an earlier time if the city so determines by ordinance.
17.23EFFECTIVE DATE.This section is effective the day after compliance by the
17.24governing body of the city of Marshall with Minnesota Statutes, section 645.021,
17.25subdivision 3.

17.26    Sec. 14. CITY OF MEDFORD; SALES AND USE TAX.
17.27    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
17.28sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance,
17.29or city charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99,
17.30at the next general election, the city of Medford may impose by ordinance a sales and use
17.31tax of one-half of one percent for the purposes specified in subdivision 2. Except as
17.32otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
18.1govern the imposition, administration, collection, and enforcement of the tax authorized
18.2under this subdivision.
18.3    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section must
18.4be used by the city of Medford to pay the costs of collecting and administering the tax
18.5and to repay loans received from the Minnesota Public Facilities Authority since 2007
18.6that were used to finance $4,200,000 of improvements to the city's water and wastewater
18.7systems.
18.8    Subd. 3. Termination of taxes. The tax imposed under this section expires at the
18.9earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Medford
18.10City Council determines that the amount of revenues received from the tax equals or
18.11exceeds the sum of loans made to the city by the Minnesota Public Facilities Authority
18.12as described in subdivision 2, including interest on the loans. Any funds remaining
18.13after completion of the repayment of the loans may be placed in the general fund of the
18.14city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
18.15determines by ordinance.
18.16EFFECTIVE DATE.This section is effective the day after compliance by the
18.17governing body of the city of Medford with Minnesota Statutes, section 645.021,
18.18subdivision 3.

18.19    Sec. 15. REPORT ON THE USE OF ZIP CODES IN COLLECTING AND
18.20REMITTING LOCAL SALES TAXES.
18.21    Subdivision 1. Report to the legislature. By March 1, 2012, the commissioner
18.22of revenue shall provide a report to the chairs and ranking minority members of the
18.23legislative committees with jurisdiction over local sales taxes reporting on the current use
18.24of zip codes for the purposes of collecting and remitting local sales taxes, problems with
18.25the current system, and suggestions for improvements.
18.26    Subd. 2. Contents of the report. The report shall include the following information:
18.27(1) the current status of the department's development of a system that allows
18.28vendors to identify the correct local sales tax based on a street address and the five-digit
18.29zip code, as described in Minnesota Statutes, section 297A.99, subdivision 10, including a
18.30list of cities and townships that impose a local sales tax or do not impose a local sales tax
18.31but share a zip code with a jurisdiction in which a local sales tax is imposed for which the
18.32system has not been developed;
19.1(2) a priority list and timeline for developing the required system outlined in
19.2Minnesota Statutes, section 297A.99, subdivision 10, for the cities and townships
19.3identified in clause (1);
19.4(3) the compliance by businesses with the requirement in Minnesota Statutes, section
19.5297A.99, subdivision 10, that the tax be collected on the lowest combined rate within the
19.6zip code for cities and townships identified in clause (1);
19.7(4) the accuracy of the crediting and remittance of local sales taxes to the appropriate
19.8taxing jurisdiction when two contiguous cities with different local sales tax authority
19.9share a zip code; and
19.10(5) recommendations for administrative or statutory changes to improve the accurate
19.11collection and allocation of local sales tax revenues collected by the Department of
19.12Revenue.
19.13EFFECTIVE DATE.This section is effective the day following final enactment.


19.16    Section 1. Minnesota Statutes 2010, section 272.02, is amended by adding a
19.17subdivision to read:
19.18    Subd. 95. Electric generation facility; personal property. (a) Notwithstanding
19.19subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other
19.20personal property that is part of a multiple reciprocating engine electric generation facility
19.21that adds more than 20 and less than 30 megawatts of installed capacity at a site where
19.22there is presently more than ten megawatts and fewer than 15 megawatts of installed
19.23capacity and that meets the requirements of this subdivision is exempt from taxation and
19.24from payments in lieu of taxation. At the time of construction, the facility must:
19.25(1) be designed to utilize natural gas as a primary fuel;
19.26(2) be owned and operated by a municipal power agency as defined in section
19.27453.52, subdivision 8;
19.28(3) be located within one mile of an existing natural gas pipeline;
19.29(4) be designed to have black start capability and to furnish emergency backup
19.30power service to the city in which it is located;
19.31(5) satisfy a resource deficiency identified in an approved integrated resource plan
19.32filed under section 216B.2422; and
19.33(6) have received, by resolution, the approval of the governing bodies of the city
19.34and county in which it is located for the exemption of personal property provided by
19.35this subdivision.
20.1(b) Construction of the facility must be commenced after December 31, 2011, and
20.2before January 1, 2015. Property eligible for this exemption does not include (i) electric
20.3transmission lines and interconnections or gas pipelines and interconnections appurtenant
20.4to the property or the facility; or (ii) property located on the site on the enactment date
20.5of this subdivision.
20.6EFFECTIVE DATE.This section is effective for assessments in 2012, taxes
20.7payable in 2013, and thereafter.

20.8    Sec. 2. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:
20.9    Subdivision 1. Notice. Any county assessor or city assessor having the powers of a
20.10county assessor, valuing or classifying taxable real property shall in each year notify those
20.11persons whose property is to be included on the assessment roll that year if the person's
20.12address is known to the assessor, otherwise the occupant of the property. The notice shall
20.13be in writing and shall be sent by ordinary mail at least ten days before the meeting of
20.14the local board of appeal and equalization under section 274.01 or the review process
20.15established under section 274.13, subdivision 1c. Upon written request by the owner of the
20.16property, the assessor may send the notice in electronic form or by electronic mail instead
20.17of on paper or by ordinary mail. It shall contain: (1) the market value for the current and
20.18prior assessment, (2) the limited market value under section 273.11, subdivision 1a, for
20.19the current and prior assessment, (3) the qualifying amount of any improvements under
20.20section 273.11, subdivision 16, for the current assessment, (4) (3) the market value subject
20.21to taxation after subtracting the amount of any qualifying improvements for the current
20.22assessment, (5) (4) the classification of the property for the current and prior assessment,
20.23(6) a note that if the property is homestead and at least 45 years old, improvements made
20.24to the property may be eligible for a valuation exclusion under section 273.11, subdivision
20.2516 , (7) (5) the assessor's office address, and (8) (6) the dates, places, and times set for the
20.26meetings of the local board of appeal and equalization, the review process established
20.27under section 274.13, subdivision 1c, and the county board of appeal and equalization. If
20.28the classification of the property has changed between the current and prior assessments, a
20.29specific note to that effect shall be prominently listed on the statement. The commissioner
20.30of revenue shall specify the form of the notice. The assessor shall attach to the assessment
20.31roll a statement that the notices required by this section have been mailed. Any assessor
20.32who is not provided sufficient funds from the assessor's governing body to provide such
20.33notices, may make application to the commissioner of revenue to finance such notices.
20.34The commissioner of revenue shall conduct an investigation and, if satisfied that the
20.35assessor does not have the necessary funds, issue a certification to the commissioner
21.1of management and budget of the amount necessary to provide such notices. The
21.2commissioner of management and budget shall issue a warrant for such amount and shall
21.3deduct such amount from any state payment to such county or municipality. The necessary
21.4funds to make such payments are hereby appropriated. Failure to receive the notice shall in
21.5no way affect the validity of the assessment, the resulting tax, the procedures of any board
21.6of review or equalization, or the enforcement of delinquent taxes by statutory means.
21.7EFFECTIVE DATE.This section is effective for notifications for taxes payable in
21.82013 and thereafter.

21.9    Sec. 3. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
21.10    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
21.11units and used or held for use by the owner or by the tenants or lessees of the owner
21.12as a residence for rental periods of 30 days or more, excluding property qualifying for
21.13class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
21.14than hospitals exempt under section 272.02, and contiguous property used for hospital
21.15purposes, without regard to whether the property has been platted or subdivided. The
21.16market value of class 4a property has a class rate of 1.25 percent.
21.17    (b) Class 4b includes:
21.18    (1) residential real estate containing less than four units that does not qualify as class
21.194bb, other than seasonal residential recreational property;
21.20    (2) manufactured homes not classified under any other provision;
21.21    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
21.22farm classified under subdivision 23, paragraph (b) containing two or three units; and
21.23    (4) unimproved property that is classified residential as determined under subdivision
21.2433.
21.25    The market value of class 4b property has a class rate of 1.25 percent.
21.26    (c) Class 4bb includes:
21.27    (1) nonhomestead residential real estate containing one unit, other than seasonal
21.28residential recreational property; and
21.29    (2) a single family dwelling, garage, and surrounding one acre of property on a
21.30nonhomestead farm classified under subdivision 23, paragraph (b).
21.31    Class 4bb property has the same class rates as class 1a property under subdivision 22.
21.32    Property that has been classified as seasonal residential recreational property at
21.33any time during which it has been owned by the current owner or spouse of the current
21.34owner does not qualify for class 4bb.
21.35    (d) Class 4c property includes:
22.1    (1) except as provided in subdivision 22, paragraph (c), real and personal property
22.2devoted to commercial temporary and seasonal residential occupancy for recreation
22.3purposes, including real and personal property devoted to temporary and seasonal
22.4residential occupancy for recreation purposes and not devoted to commercial purposes for
22.5not more than 250 days in the year preceding the year of assessment. For purposes of this
22.6clause, property is devoted to a commercial purpose on a specific day if any portion of the
22.7property is used for residential occupancy, and a fee is charged for residential occupancy.
22.8Class 4c property under this clause must contain three or more rental units. A "rental unit"
22.9is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
22.10equipped with water and electrical hookups for recreational vehicles. Class 4c property
22.11under this clause must provide recreational activities such as renting ice fishing houses,
22.12boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
22.13services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
22.14offered for rent by a property that otherwise qualifies for class 4c under this clause is also
22.15class 4c under this clause regardless of the term of the rental agreement, as long as the use
22.16of the camping pad does not exceed 250 days. In order for a property to be classified as
22.17class 4c, seasonal residential recreational for commercial purposes under this clause, either
22.18(i) the business located on the property must provide recreational activities, at least 40
22.19percent of the annual gross lodging receipts related to the property must be from business
22.20conducted during 90 consecutive days, and either (i) (A) at least 60 percent of all paid
22.21bookings by lodging guests during the year must be for periods of at least two consecutive
22.22nights; or (ii) (B) at least 20 percent of the annual gross receipts must be from charges
22.23for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
22.24equipment, or charges for marina services, launch services, and guide services, or the sale
22.25of bait and fishing tackle providing recreational activities, or (ii) the business must contain
22.2620 or fewer rental units, and must be located in a township or a city with a population of
22.272,500 or less located outside the metropolitan area, as defined under section 473.121,
22.28subdivision 2, that contains a portion of a state trail administered by the Department of
22.29Natural Resources. For purposes of this determination item (i)(A), a paid booking of
22.30five or more nights shall be counted as two bookings. Class 4c property classified under
22.31this clause also includes commercial use real property used exclusively for recreational
22.32purposes in conjunction with other class 4c property classified under this clause and
22.33devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
22.34total of two acres, provided the property is not devoted to commercial recreational use for
22.35more than 250 days in the year preceding the year of assessment and is located within two
22.36miles of the class 4c property with which it is used. Owners of real and personal property
23.1devoted to temporary and seasonal residential occupancy for recreation purposes and all
23.2or a portion of which was devoted to commercial purposes for not more than 250 days in
23.3the year preceding the year of assessment desiring classification as class 4c, In order for a
23.4property to qualify for classification under this clause, the owner must submit a declaration
23.5to the assessor designating the cabins or units occupied for 250 days or less in the year
23.6preceding the year of assessment by January 15 of the assessment year. Those cabins or
23.7units and a proportionate share of the land on which they are located must be designated
23.8class 4c under this clause as otherwise provided. The remainder of the cabins or units and
23.9a proportionate share of the land on which they are located will be designated as class 3a.
23.10The owner of property desiring designation as class 4c property under this clause must
23.11provide guest registers or other records demonstrating that the units for which class 4c
23.12designation is sought were not occupied for more than 250 days in the year preceding the
23.13assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
23.14(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
23.15operated on a commercial basis not directly related to temporary and seasonal residential
23.16occupancy for recreation purposes does not qualify for class 4c. For the purposes of this
23.17paragraph, "recreational activities" means renting ice fishing houses, boats and motors,
23.18snowmobiles, downhill or cross-country ski equipment; providing marina services, launch
23.19services, or guide services; or selling bait and fishing tackle;
23.20    (2) qualified property used as a golf course if:
23.21    (i) it is open to the public on a daily fee basis. It may charge membership fees or
23.22dues, but a membership fee may not be required in order to use the property for golfing,
23.23and its green fees for golfing must be comparable to green fees typically charged by
23.24municipal courses; and
23.25    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
23.26    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
23.27with the golf course is classified as class 3a property;
23.28    (3) real property up to a maximum of three acres of land owned and used by a
23.29nonprofit community service oriented organization and not used for residential purposes
23.30on either a temporary or permanent basis, provided that:
23.31    (i) the property is not used for a revenue-producing activity for more than six days
23.32in the calendar year preceding the year of assessment; or
23.33    (ii) the organization makes annual charitable contributions and donations at least
23.34equal to the property's previous year's property taxes and the property is allowed to be
23.35used for public and community meetings or events for no charge, as appropriate to the
23.36size of the facility.
24.1    For purposes of this clause,
24.2    (A) "charitable contributions and donations" has the same meaning as lawful
24.3gambling purposes under section 349.12, subdivision 25, excluding those purposes
24.4relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
24.5    (B) "property taxes" excludes the state general tax;
24.6    (C) a "nonprofit community service oriented organization" means any corporation,
24.7society, association, foundation, or institution organized and operated exclusively for
24.8charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
24.9federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
24.10Revenue Code; and
24.11    (D) "revenue-producing activities" shall include but not be limited to property or that
24.12portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
24.13liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
24.14alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
24.15insurance business, or office or other space leased or rented to a lessee who conducts a
24.16for-profit enterprise on the premises.
24.17Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
24.18of the property for social events open exclusively to members and their guests for periods
24.19of less than 24 hours, when an admission is not charged nor any revenues are received by
24.20the organization shall not be considered a revenue-producing activity.
24.21    The organization shall maintain records of its charitable contributions and donations
24.22and of public meetings and events held on the property and make them available upon
24.23request any time to the assessor to ensure eligibility. An organization meeting the
24.24requirement under item (ii) must file an application by May 1 with the assessor for
24.25eligibility for the current year's assessment. The commissioner shall prescribe a uniform
24.26application form and instructions;
24.27    (4) postsecondary student housing of not more than one acre of land that is owned by
24.28a nonprofit corporation organized under chapter 317A and is used exclusively by a student
24.29cooperative, sorority, or fraternity for on-campus housing or housing located within two
24.30miles of the border of a college campus;
24.31    (5) (i) manufactured home parks as defined in section 327.14, subdivision 3,
24.32excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
24.33manufactured home parks as defined in section 327.14, subdivision 3, that are described in
24.34section 273.124, subdivision 3a;
25.1    (6) real property that is actively and exclusively devoted to indoor fitness, health,
25.2social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
25.3and is located within the metropolitan area as defined in section 473.121, subdivision 2;
25.4    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
25.5under section 272.01, subdivision 2, and the land on which it is located, provided that:
25.6    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
25.7Airports Commission, or group thereof; and
25.8    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
25.9leased premise, prohibits commercial activity performed at the hangar.
25.10    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
25.11be filed by the new owner with the assessor of the county where the property is located
25.12within 60 days of the sale;
25.13    (8) a privately owned noncommercial aircraft storage hangar not exempt under
25.14section 272.01, subdivision 2, and the land on which it is located, provided that:
25.15    (i) the land abuts a public airport; and
25.16    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
25.17agreement restricting the use of the premises, prohibiting commercial use or activity
25.18performed at the hangar; and
25.19    (9) residential real estate, a portion of which is used by the owner for homestead
25.20purposes, and that is also a place of lodging, if all of the following criteria are met:
25.21    (i) rooms are provided for rent to transient guests that generally stay for periods
25.22of 14 or fewer days;
25.23    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
25.24in the basic room rate;
25.25    (iii) meals are not provided to the general public except for special events on fewer
25.26than seven days in the calendar year preceding the year of the assessment; and
25.27    (iv) the owner is the operator of the property.
25.28The market value subject to the 4c classification under this clause is limited to five rental
25.29units. Any rental units on the property in excess of five, must be valued and assessed as
25.30class 3a. The portion of the property used for purposes of a homestead by the owner must
25.31be classified as class 1a property under subdivision 22;
25.32    (10) real property up to a maximum of three acres and operated as a restaurant
25.33as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
25.34as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
25.35is either devoted to commercial purposes for not more than 250 consecutive days, or
25.36receives at least 60 percent of its annual gross receipts from business conducted during
26.1four consecutive months. Gross receipts from the sale of alcoholic beverages must be
26.2included in determining the property's qualification under subitem (B). The property's
26.3primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
26.4sales located on the premises must be excluded. Owners of real property desiring 4c
26.5classification under this clause must submit an annual declaration to the assessor by
26.6February 1 of the current assessment year, based on the property's relevant information for
26.7the preceding assessment year; and
26.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
26.9as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
26.10the public and devoted to recreational use for marina services. The marina owner must
26.11annually provide evidence to the assessor that it provides services, including lake or river
26.12access to the public by means of an access ramp or other facility that is either located on
26.13the property of the marina or at a publicly owned site that abuts the property of the marina.
26.14No more than 800 feet of lakeshore may be included in this classification. Buildings used
26.15in conjunction with a marina for marina services, including but not limited to buildings
26.16used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
26.17tackle, are classified as class 3a property; and
26.18(12) real and personal property devoted to noncommercial temporary and seasonal
26.19residential occupancy for recreation purposes.
26.20    Class 4c property has a class rate of 1.5 percent of market value, except that (i)
26.21each parcel of noncommercial seasonal residential recreational property not used for
26.22commercial purposes under clause (12) has the same class rates as class 4bb property, (ii)
26.23manufactured home parks assessed under clause (5), item (i), have the same class rate
26.24as class 4b property, and the market value of manufactured home parks assessed under
26.25clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent
26.26of the lots in the park are occupied by shareholders in the cooperative corporation or
26.27association and a class rate of one percent if 50 percent or less of the lots are so occupied,
26.28(iii) commercial-use seasonal residential recreational property and marina recreational
26.29land as described in clause (11), has a class rate of one percent for the first $500,000 of
26.30market value, and 1.25 percent for the remaining market value, (iv) the market value of
26.31property described in clause (4) has a class rate of one percent, (v) the market value of
26.32property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
26.33that portion of the market value of property in clause (9) qualifying for class 4c property
26.34has a class rate of 1.25 percent.
26.35    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
26.36by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
27.1of the units in the building qualify as low-income rental housing units as certified under
27.2section 273.128, subdivision 3, only the proportion of qualifying units to the total number
27.3of units in the building qualify for class 4d. The remaining portion of the building shall be
27.4classified by the assessor based upon its use. Class 4d also includes the same proportion of
27.5land as the qualifying low-income rental housing units are to the total units in the building.
27.6For all properties qualifying as class 4d, the market value determined by the assessor must
27.7be based on the normal approach to value using normal unrestricted rents.
27.8    Class 4d property has a class rate of 0.75 percent.
27.9EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
27.10thereafter.

27.11    Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:
27.12    Subd. 3. Seasonal residential recreational tax capacity. For the purposes of this
27.13section, "seasonal residential recreational tax capacity" means the tax capacity of tier III
27.14of class 1c under section 273.13, subdivision 22, and all class 4c(1) and, 4c(3)(ii), and
27.154c(12) property under section 273.13, subdivision 25, except that the first $76,000 of
27.16market value of each noncommercial class 4c(1) 4c(12) property has a tax capacity for this
27.17purpose equal to 40 percent of its tax capacity under section 273.13.
27.18EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
27.19thereafter.

27.20    Sec. 5. Minnesota Statutes 2010, section 279.01, subdivision 1, is amended to read:
27.21    Subdivision 1. Due dates; penalties. Except as provided in subdivision 3 or 4, on
27.22May 16 or 21 days after the postmark date on the envelope containing the property tax
27.23statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
27.24taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
27.25at a rate of two percent on homestead property until May 31 and four percent on June 1.
27.26The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
27.27percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
27.28the postmark date on the envelope containing the property tax statements, whichever is
27.29later, on commercial use real property used for seasonal residential recreational purposes
27.30and classified as class 1c or 4c, and on other commercial use real property classified as
27.31class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
27.32class 3a property is earned during the months of May, June, July, and August. In order
27.33for the first half of the tax due on class 3a property to be paid after May 15 and before
28.1June 1, or 21 days after the postmark date on the envelope containing the property tax
28.2statement, whichever is later, without penalty, the owner of the property must attach
28.3an affidavit to the payment attesting to compliance with the income provision of this
28.4subdivision. Thereafter, for both homestead and nonhomestead property, on the first day
28.5of each month beginning July 1, up to and including October 1 following, an additional
28.6penalty of one percent for each month accrues and is charged on all such unpaid taxes
28.7provided that if the due date was extended beyond May 15 as the result of any delay in
28.8mailing property tax statements no additional penalty shall accrue if the tax is paid by the
28.9extended due date. If the tax is not paid by the extended due date, then all penalties that
28.10would have accrued if the due date had been May 15 shall be charged. When the taxes
28.11against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or
28.1221 days after the postmark date on the envelope containing the property tax statement,
28.13whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be
28.14paid at any time prior to October 16 following, without penalty; but, if not so paid, then
28.15a penalty of two percent accrues thereon for homestead property and a penalty of four
28.16percent on nonhomestead property. Thereafter, for homestead property, on the first day
28.17of November an additional penalty of four two percent accrues and on the first day of
28.18December following, an additional penalty of two percent accrues and is charged on all
28.19such unpaid taxes. Thereafter, for nonhomestead property, on the first day of November
28.20and December following, an additional penalty of four percent for each month accrues
28.21and is charged on all such unpaid taxes. If one-half of such taxes are not paid prior to
28.22May 16 or 21 days after the postmark date on the envelope containing the property tax
28.23statement, whichever is later, the same may be paid at any time prior to October 16, with
28.24accrued penalties to the date of payment added, and thereupon no penalty attaches to the
28.25remaining one-half until October 16 following.
28.26    This section applies to payment of personal property taxes assessed against
28.27improvements to leased property, except as provided by section 277.01, subdivision 3.
28.28    A county may provide by resolution that in the case of a property owner that has
28.29multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
28.30installments as provided in this subdivision.
28.31    The county treasurer may accept payments of more or less than the exact amount of
28.32a tax installment due. Payments must be applied first to the oldest installment that is due
28.33but which has not been fully paid. If the accepted payment is less than the amount due,
28.34payments must be applied first to the penalty accrued for the year or the installment being
28.35paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
29.1payment required as a condition for filing an appeal under section 278.03 or any other law,
29.2nor does it affect the order of payment of delinquent taxes under section 280.39.
29.3EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
29.4thereafter.

29.5    Sec. 6. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:
29.6    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall
29.7give six weeks' published notice in all municipalities in the region. If a number of voters
29.8in the region equal to five percent of those who voted for candidates for governor at the
29.9last gubernatorial election present a petition within nine weeks of the first published notice
29.10to the secretary of state requesting that the matter be submitted to popular vote, it shall be
29.11submitted at the next general election. The question prepared shall be:
29.12"Shall the regional rail authority have the power to impose a property tax?

29.13		Yes .....
29.14		No ..... "

29.15If a majority of those voting on the question approve or if no petition is presented
29.16within the prescribed time the authority may levy a tax at any annual rate not exceeding
29.170.04835 percent of market value of all taxable property situated within the municipality
29.18or municipalities named in its organization resolution. Its recording officer shall file, All
29.19taxes imposed for the support of the authority must be imposed by the county board and
29.20included in the county budget for all purposes, including levy limits, if any, and calculation
29.21of net debt. If the authority consists of more than one county, the authority must determine
29.22the total levy request and apportion it among the member counties as provided in the
29.23joint resolution organizing the authority. On or before September 15, in the office of the
29.24county auditor of each county in which territory under the jurisdiction of the authority
29.25is located a certified copy of the board of commissioners' resolution levying the tax, and
29.26each county auditor shall assess and extend upon the tax rolls of each municipality named
29.27in the organization resolution the portion of the tax that bears the same ratio to the whole
29.28amount that the net tax capacity of taxable property in that municipality bears to the net
29.29tax capacity of taxable property in all municipalities named in the organization resolution.
29.30Collections of the tax shall be remitted by each county treasurer to the treasurer of the
29.31authority. For taxes levied in 1991, the amount levied for light rail transit purposes under
29.32this subdivision shall not exceed 75 percent of the amount levied in 1990 for light rail
29.33transit purposes under this subdivision.
30.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
30.2thereafter.

30.3    Sec. 7. Minnesota Statutes 2010, section 398A.07, subdivision 2, is amended to read:
30.4    Subd. 2. Security. Bonds may be made payable exclusively from the revenues from
30.5one or more projects, or from one or more revenue producing contracts, or from the
30.6authority's revenues generally, including but not limited to specified taxes which the
30.7county may levy on behalf of the authority may levy or which a particular municipality
30.8may agree to levy for a specified purpose, and may be additionally secured by a pledge
30.9of any grant, subsidy, or contribution from any public agency, including but not limited
30.10to a participating municipality, or any income or revenues from any source. They may
30.11be secured by a mortgage or deed of trust of the whole or any part of the property of the
30.12authority. They shall be payable solely from the revenues, funds, and property pledged or
30.13mortgaged for their payment. No commissioner, officer, employee, agent, or trustee of the
30.14authority shall be liable personally on its bonds or be subject to any personal liability or
30.15accountability by reason of their issuance. Neither the state nor Only a county or other
30.16municipality except the authority may pledge its faith and credit or taxing power or shall
30.17be obligated in any manner for the payment of the bonds or interest on them, except as
30.18specifically provided by agreement under section 398A.06; but nothing herein shall affect
30.19the obligation of the state or municipality to perform any contract made by it with the
30.20authority, and when the authority's rights under a contract with the state or a municipality
30.21are pledged by the authority for the security of its bonds, the holders or a bond trustee
30.22may enforce the rights as a third-party beneficiary. All bonds shall be negotiable within
30.23the meaning and for the purposes of the Uniform Commercial Code, subject only to any
30.24registration requirement.
30.25EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
30.26thereafter.

30.27    Sec. 8. REPEALER.
30.28Minnesota Statutes 2010, section 279.01, subdivision 4, is repealed.
30.29EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
30.30thereafter.


31.3    Section 1. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to
31.4read:
31.5    Subdivision 1. Applicability; amount. (a) The commissioner shall annually make a
31.6payment to each county having public hunting areas and game refuges. Money to make
31.7the payments is annually appropriated for that purpose from the general fund. Except as
31.8provided in paragraph (b), this section does not apply to state trust fund land and other
31.9state land not purchased for game refuge or public hunting purposes. Except as provided
31.10in paragraph (b), the payment shall be the greatest of:
31.11(1) 35 29.75 percent of the gross receipts from all special use permits and leases of
31.12land acquired for public hunting and game refuges;
31.13(2) 50 42.5 cents per acre on land purchased actually used for public hunting or
31.14game refuges; or
31.15(3) three-fourths of one .6375 percent of the appraised value of purchased land
31.16actually used for public hunting and game refuges.
31.17(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as
31.18determined under section 477A.12, subdivision 1, paragraph (a), clause (1), multiplied
31.19by the number of acres of land in the county that are owned by another state agency for
31.20military purposes and designated as a game refuge under section 97A.085.
31.21(c) The payment must be reduced by the amount paid under subdivision 3 for
31.22croplands managed for wild geese.
31.23(d) The appraised value is the purchase price for five years after acquisition.
31.24The appraised value shall be determined by the county assessor every five years after
31.25acquisition.
31.26EFFECTIVE DATE.This section is effective for aids payable in calendar year
31.272011 and thereafter.

31.28    Sec. 2. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:
31.29    Subd. 3. Goose management croplands. (a) The commissioner shall make a
31.30payment on July 1 of each year to each county where the state owns more than 1,000 acres
31.31of crop land, for wild goose management purposes. The payment shall be equal to 85
31.32percent of the taxes assessed on comparable, privately owned, adjacent land. Money to
31.33make the payments is annually appropriated for that purpose from the general fund. The
31.34county treasurer shall allocate and distribute the payment as provided in subdivision 2.
32.1(b) The land used for goose management under this subdivision is exempt from
32.2taxation as provided in sections 272.01 and 273.19.
32.3EFFECTIVE DATE.This section is effective for aids payable in calendar year
32.42011 and thereafter.

32.5    Sec. 3. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:
32.6    Subd. 7. Refund. "Refund" means an individual income tax refund or political
32.7contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
32.8chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
32.9For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
32.10subdivision 8 , and amounts granted to persons by the legislature on the recommendation
32.11of the joint senate-house of representatives Subcommittee on Claims shall be treated
32.12as refunds.
32.13In the case of a joint property tax refund payable to spouses under chapter 290A,
32.14the refund shall be considered as belonging to each spouse in the proportion of the total
32.15refund that equals each spouse's proportion of the total income determined under section
32.16290A.03, subdivision 3 . In the case of a joint income tax refund under chapter 289A, the
32.17refund shall be considered as belonging to each spouse in the proportion of the total
32.18refund that equals each spouse's proportion of the total taxable income determined under
32.19section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
32.20claimant agency, which shall, upon the request of the spouse who does not owe the debt,
32.21determine the amount of the refund belonging to that spouse and refund the amount to
32.22that spouse. For court fines, fees, and surcharges and court-ordered restitution under
32.23section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
32.24section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
32.25to the spouse who does not owe the debt.
32.26EFFECTIVE DATE.This section is effective for refund claims based on
32.27contributions made after June 30, 2011.

32.28    Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:
32.29    Subd. 21b. Tax capacity. (a) Gross tax capacity means the product of the
32.30appropriate gross class rates in this section and market values.
32.31(b) Net tax capacity means the product of the appropriate net class rates in this
32.32section and market values, minus the property's tax capacity reduction determined under
32.33section 273.1384, subdivision 1, if applicable.
33.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
33.2thereafter.

33.3    Sec. 5. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:
33.4    Subdivision 1. Residential homestead market value credit tax capacity
33.5reduction. Each county auditor shall determine a homestead credit tax capacity reduction
33.6for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of
33.7the first $76,000 of market value of the property minus .09 percent of the market value
33.8in excess of $76,000. The credit tax capacity reduction amount may not be less than
33.9zero. In the case of an agricultural or resort homestead, only the market value of the
33.10house, garage, and immediately surrounding one acre of land is eligible in determining
33.11the property's homestead credit tax capacity reduction. In the case of a property that is
33.12classified as part homestead and part nonhomestead, (i) the credit tax capacity reduction
33.13shall apply only to the homestead portion of the property, but (ii) if a portion of a property
33.14is classified as nonhomestead solely because not all the owners occupy the property, not
33.15all the owners have qualifying relatives occupying the property, or solely because not all
33.16the spouses of owners occupy the property, the credit tax capacity reduction amount shall
33.17be initially computed as if that nonhomestead portion were also in the homestead class and
33.18then prorated to the owner-occupant's percentage of ownership. For the purpose of this
33.19section, when an owner-occupant's spouse does not occupy the property, the percentage of
33.20ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.
33.21EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
33.22thereafter.

33.23    Sec. 6. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
33.24    Subd. 3. Credit reimbursements. The county auditor shall determine the tax
33.25reductions allowed under this section subdivision 2 within the county for each taxes
33.26payable year and shall certify that amount to the commissioner of revenue as a part of the
33.27abstracts of tax lists submitted by the county auditors under section 275.29. Any prior
33.28year adjustments shall also be certified on the abstracts of tax lists. The commissioner
33.29shall review the certifications for accuracy, and may make such changes as are deemed
33.30necessary, or return the certification to the county auditor for correction. The credits
33.31credit under this section must be used to proportionately reduce the net tax capacity-based
33.32property tax payable to each local taxing jurisdiction as provided in section 273.1393.
34.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
34.2thereafter.

34.3    Sec. 7. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
34.4    Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
34.5taxing jurisdiction, other than school districts, for the tax reductions granted under this
34.6section subdivision 2 in two equal installments on October 31 and December 26 of the
34.7taxes payable year for which the reductions are granted, including in each payment
34.8the prior year adjustments certified on the abstracts for that taxes payable year. The
34.9reimbursements related to tax increments shall be issued in one installment each year on
34.10December 26.
34.11(b) The commissioner of revenue shall certify the total of the tax reductions granted
34.12under this section subdivision 2 for each taxes payable year within each school district to
34.13the commissioner of the Department of Education and the commissioner of education shall
34.14pay the reimbursement amounts to each school district as provided in section 273.1392.
34.15EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
34.16thereafter.

34.17    Sec. 8. Minnesota Statutes 2010, section 273.1393, is amended to read:
34.18273.1393 COMPUTATION OF NET PROPERTY TAXES.
34.19    Notwithstanding any other provisions to the contrary, "net" property taxes are
34.20determined by subtracting the credits in the order listed from the gross tax:
34.21    (1) disaster credit as provided in sections 273.1231 to 273.1235;
34.22    (2) powerline credit as provided in section 273.42;
34.23    (3) agricultural preserves credit as provided in section 473H.10;
34.24    (4) enterprise zone credit as provided in section 469.171;
34.25    (5) disparity reduction credit;
34.26    (6) conservation tax credit as provided in section 273.119;
34.27    (7) homestead and agricultural credits credit as provided in section 273.1384;
34.28    (8) taconite homestead credit as provided in section 273.135;
34.29    (9) supplemental homestead credit as provided in section 273.1391; and
34.30    (10) the bovine tuberculosis zone credit, as provided in section 273.113.
34.31    The combination of all property tax credits must not exceed the gross tax amount.
34.32EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
34.33thereafter.

35.1    Sec. 9. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
35.2    Subd. 3. Disparity reduction aid. The amount of disparity aid certified each year
35.3for each taxing district within each unique taxing jurisdiction for taxes payable in the prior
35.4year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class
35.5rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity
35.6using the class rates for taxes payable in the year prior to that for which aid is being
35.7computed, both based upon market values for taxes payable in the year prior to that for
35.8which aid is being computed. If the commissioner determines that insufficient information
35.9is available to reasonably and timely calculate the numerator in this ratio for the first taxes
35.10payable year that a class rate change or new class rate is effective, the commissioner
35.11shall omit the effects of that class rate change or new class rate when calculating this
35.12ratio for aid payable in that taxes payable year. For aid payable in the year following a
35.13year for which such omission was made, the commissioner shall use in the denominator
35.14for the class that was changed or created, the tax capacity for taxes payable two years
35.15prior to that in which the aid is payable, based on market values for taxes payable in the
35.16year prior to that for which aid is being computed is 50 percent of the amount certified
35.17for taxes payable in 2011.
35.18EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
35.19thereafter.

35.20    Sec. 10. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:
35.21    Subd. 1a. Computation of tax capacity. For taxes payable in 1989, the county
35.22auditor shall compute the gross tax capacity for each parcel according to the class rates
35.23specified in section 273.13. The gross tax capacity will be the appropriate class rate
35.24multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
35.25The county auditor shall compute the net tax capacity for each parcel according to the
35.26class rates specified in as defined under section 273.13, subdivision 21b. The net tax
35.27capacity will be the appropriate class rate multiplied by the parcel's market value.
35.28EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
35.29thereafter.

35.30    Sec. 11. Minnesota Statutes 2010, section 275.08, subdivision 1d, is amended to read:
35.31    Subd. 1d. Additional adjustment. If, after computing each local government's
35.32adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the
35.33auditor finds that the total adjusted local tax rate of all local governments combined is
36.1less than 90 105 percent of gross tax capacity for taxes payable in 1989 and 90 percent
36.2of net tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase
36.3each local government's adjusted local tax rate proportionately so the total adjusted local
36.4tax rate of all local governments combined equals 90 105 percent. The total amount
36.5of the increase in tax resulting from the increased local tax rates must not exceed the
36.6amount of disparity aid allocated to the unique taxing district under section 273.1398. The
36.7auditor shall certify to the Department of Revenue the difference between the disparity
36.8aid originally allocated under section 273.1398, subdivision 3, and the amount necessary
36.9to reduce the total adjusted local tax rate of all local governments combined to 90 105
36.10percent. Each local government's disparity reduction aid payment under section 273.1398,
36.11subdivision 6 , must be reduced accordingly.
36.12EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
36.13thereafter.

36.14    Sec. 12. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
36.15    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
36.16printing of the tax statements. The commissioner of revenue shall prescribe the form of
36.17the property tax statement and its contents. The tax statement must not state or imply
36.18that property tax credits are paid by the state of Minnesota. The statement must contain
36.19a tabulated statement of the dollar amount due to each taxing authority and the amount
36.20of the state tax from the parcel of real property for which a particular tax statement is
36.21prepared. The dollar amounts attributable to the county, the state tax, the voter approved
36.22school tax, the other local school tax, the township or municipality, and the total of
36.23the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
36.24paragraph (i), must be separately stated. The amounts due all other special taxing districts,
36.25if any, may be aggregated except that any levies made by the regional rail authorities in the
36.26county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
36.27398A shall be listed on a separate line directly under the appropriate county's levy. If the
36.28county levy under this paragraph includes an amount for a lake improvement district as
36.29defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
36.30must be separately stated from the remaining county levy amount. In the case of Ramsey
36.31County, if the county levy under this paragraph includes an amount for public library
36.32service under section 134.07, the amount attributable for that purpose may be separated
36.33from the remaining county levy amount. The amount of the tax on homesteads qualifying
36.34under the senior citizens' property tax deferral program under chapter 290B is the total
36.35amount of property tax before subtraction of the deferred property tax amount. The
37.1amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any,
37.2must also be separately stated. The dollar amounts, including the dollar amount of any
37.3special assessments, may be rounded to the nearest even whole dollar. For purposes of this
37.4section whole odd-numbered dollars may be adjusted to the next higher even-numbered
37.5dollar. The amount of market value excluded under section 273.11, subdivision 16, if any,
37.6must also be listed on the tax statement.
37.7    (b) The property tax statements for manufactured homes and sectional structures
37.8taxed as personal property shall contain the same information that is required on the
37.9tax statements for real property.
37.10    (c) Real and personal property tax statements must contain the following information
37.11in the order given in this paragraph. The information must contain the current year tax
37.12information in the right column with the corresponding information for the previous year
37.13in a column on the left:
37.14    (1) the property's estimated market value under section 273.11, subdivision 1;
37.15    (2) the property's taxable market value after reductions under section 273.11,
37.16subdivisions 1a and 16 ;
37.17    (3) the property's gross tax, before credits;
37.18    (4) for homestead residential and agricultural properties, the credits credit under
37.19section 273.1384;
37.20    (5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
37.21273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
37.22credit received under section 273.135 must be separately stated and identified as "taconite
37.23tax relief"; and
37.24    (6) the net tax payable in the manner required in paragraph (a).
37.25    (d) If the county uses envelopes for mailing property tax statements and if the county
37.26agrees, a taxing district may include a notice with the property tax statement notifying
37.27taxpayers when the taxing district will begin its budget deliberations for the current
37.28year, and encouraging taxpayers to attend the hearings. If the county allows notices to
37.29be included in the envelope containing the property tax statement, and if more than
37.30one taxing district relative to a given property decides to include a notice with the tax
37.31statement, the county treasurer or auditor must coordinate the process and may combine
37.32the information on a single announcement.
37.33EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
37.34thereafter.

37.35    Sec. 13. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:
38.1    Subdivision 1. General right to refund. (a) Subject to the requirements of this
38.2section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
38.3due and who files a written claim for refund will be refunded or credited the overpayment
38.4of the tax determined by the commissioner to be erroneously paid.
38.5(b) The claim must specify the name of the taxpayer, the date when and the period
38.6for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
38.7claims was erroneously paid, the grounds on which a refund is claimed, and other
38.8information relative to the payment and in the form required by the commissioner. An
38.9income tax, estate tax, or corporate franchise tax return, or amended return claiming an
38.10overpayment constitutes a claim for refund.
38.11(c) When, in the course of an examination, and within the time for requesting a
38.12refund, the commissioner determines that there has been an overpayment of tax, the
38.13commissioner shall refund or credit the overpayment to the taxpayer and no demand
38.14is necessary. If the overpayment exceeds $1, the amount of the overpayment must
38.15be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
38.16commissioner is not required to refund. In these situations, the commissioner does not
38.17have to make written findings or serve notice by mail to the taxpayer.
38.18(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
38.19care exceeds the tax against which the credit is allowable, the amount of the excess is
38.20considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
38.21considered an overpayment. The requirements of section 270C.33 do not apply to the
38.22refunding of such an overpayment shown on the original return filed by a taxpayer.
38.23(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
38.24penalties, and interest reported in the return of the entertainment entity or imposed by
38.25section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
38.26less than $1, the commissioner need not refund that amount.
38.27(f) If the surety deposit required for a construction contract exceeds the liability of
38.28the out-of-state contractor, the commissioner shall refund the difference to the contractor.
38.29(g) An action of the commissioner in refunding the amount of the overpayment does
38.30not constitute a determination of the correctness of the return of the taxpayer.
38.31(h) There is appropriated from the general fund to the commissioner of revenue the
38.32amount necessary to pay refunds allowed under this section.
38.33EFFECTIVE DATE.This section is effective for refund claims based on
38.34contributions made after June 30, 2011.

38.35    Sec. 14. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:
39.1    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to
39.2a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
39.3"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
39.4EFFECTIVE DATE.This section is effective for refund claims based on
39.5contributions made after June 30, 2011.

39.6    Sec. 15. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:
39.7    Subd. 11. Rent constituting property taxes. "Rent constituting property taxes"
39.8means 19 14.5 percent of the gross rent actually paid in cash, or its equivalent, or the
39.9portion of rent paid in lieu of property taxes, in any calendar year by a claimant for the
39.10right of occupancy of the claimant's Minnesota homestead in the calendar year, and which
39.11rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
39.12chapter by the claimant.
39.13EFFECTIVE DATE.This section is effective for claims based on rent paid in
39.142010 and following years.

39.15    Sec. 16. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:
39.16    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
39.17exclusive of special assessments, penalties, and interest payable on a claimant's homestead
39.18after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
39.19and any other state paid property tax credits in any calendar year, and after any refund
39.20claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
39.21the year that the property tax is payable. In the case of a claimant who makes ground
39.22lease payments, "property taxes payable" includes the amount of the payments directly
39.23attributable to the property taxes assessed against the parcel on which the house is located.
39.24No apportionment or reduction of the "property taxes payable" shall be required for the
39.25use of a portion of the claimant's homestead for a business purpose if the claimant does not
39.26deduct any business depreciation expenses for the use of a portion of the homestead in the
39.27determination of federal adjusted gross income. For homesteads which are manufactured
39.28homes as defined in section 273.125, subdivision 8, and for homesteads which are park
39.29trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
39.30taxes payable" shall also include 19 14.5 percent of the gross rent paid in the preceding
39.31year for the site on which the homestead is located. When a homestead is owned by
39.32two or more persons as joint tenants or tenants in common, such tenants shall determine
39.33between them which tenant may claim the property taxes payable on the homestead. If
40.1they are unable to agree, the matter shall be referred to the commissioner of revenue
40.2whose decision shall be final. Property taxes are considered payable in the year prescribed
40.3by law for payment of the taxes.
40.4In the case of a claim relating to "property taxes payable," the claimant must have
40.5owned and occupied the homestead on January 2 of the year in which the tax is payable
40.6and (i) the property must have been classified as homestead property pursuant to section
40.7273.124 , on or before December 15 of the assessment year to which the "property taxes
40.8payable" relate; or (ii) the claimant must provide documentation from the local assessor
40.9that application for homestead classification has been made on or before December 15
40.10of the year in which the "property taxes payable" were payable and that the assessor has
40.11approved the application.
40.12EFFECTIVE DATE.This section is effective for claims based on rent paid in
40.132010 and following years.

40.14    Sec. 17. [373.51] ALTERNATIVE PROCESS FOR CONSOLIDATION.
40.15Notwithstanding the provisions relating to petitions in sections 371.02 and 371.03,
40.16two or more counties may begin the process for consolidation by filing with the secretary
40.17of state a resolution unanimously adopted by the board of each affected county to seek
40.18voter approval for consolidation of the counties following the procedures in chapter 371.

40.19    Sec. 18. Minnesota Statutes 2010, section 477A.011, is amended by adding a
40.20subdivision to read:
40.21    Subd. 1c. First class city. "First class city" means a city of the first class as of
40.222009 as defined in section 410.01.
40.23EFFECTIVE DATE.This section is effective for aids payable in calendar year
40.242011 and thereafter.

40.25    Sec. 19. Minnesota Statutes 2010, section 477A.011, is amended by adding a
40.26subdivision to read:
40.27    Subd. 1d. Suburb. "Suburb" means a city located in the seven-county metropolitan
40.28area as defined in section 473.121, subdivision 2, that is not a first class city.
40.29EFFECTIVE DATE.This section is effective for aids payable in calendar year
40.302011 and thereafter.

41.1    Sec. 20. Minnesota Statutes 2010, section 477A.0124, is amended by adding a
41.2subdivision to read:
41.3    Subd. 6. Aid payments in 2011 and 2012. Notwithstanding total aids calculated or
41.4certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall
41.5receive an aid distribution under this section equal to the lesser of (1) the total amount of
41.6aid it received under this section in 2010 after the reductions under sections 477A.0133
41.7and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under
41.8subdivisions 3 to 5.
41.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
41.102011 and 2012.

41.11    Sec. 21. Minnesota Statutes 2010, section 477A.013, subdivision 8, is amended to read:
41.12    Subd. 8. City formula aid. The formula aid for a city is equal to the sum of (1) its
41.13city jobs base, (2) its small city aid base, and (3) the need increase percentage multiplied
41.14by the average of its unmet need for the most recently available two years.
41.15No city may have a formula aid amount less than zero. The need increase percentage
41.16must be the same for all cities. For first class cities, the formula aid is 25 percent of its
41.17base aid as defined in subdivision 11, paragraph (a), for aids payable in 2013 and zero
41.18for aids payable in 2014 and thereafter. For suburbs, the formula aid is zero for aids
41.19payable in 2013 and thereafter.
41.20    The applicable need increase percentage must be calculated by the Department of
41.21Revenue so that the total of the aid under subdivision 9 equals the total amount available
41.22for aid under section 477A.03. Data used in calculating aids to cities under sections
41.23477A.011 to 477A.013 shall be the most recently available data as of January 1 in the
41.24year in which the aid is calculated except that the data used to compute "net levy" in
41.25subdivision 9 is the data most recently available at the time of the aid computation.
41.26EFFECTIVE DATE.This section is effective for aids payable in calendar year
41.272013 and thereafter.

41.28    Sec. 22. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:
41.29    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
41.30city shall receive an aid distribution equal to the sum of (1) the city formula aid under
41.31subdivision 8, and (2) its city aid base.
41.32    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any
41.33city shall mean the amount of aid it was certified to receive for aids payable in 2010
42.12012 under this section minus the amount of its aid reduction under section 477A.0134
42.2subdivision 11. For aids payable in 2012 2014 and thereafter, the total aid in the previous
42.3year for any city means the amount of aid it was certified to receive under this section in
42.4the previous payable year.
42.5    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
42.6the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
42.7plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
42.8aid for any city with a population of 2,500 or more may not be less than its total aid under
42.9this section in the previous year minus the lesser of $10 multiplied by its population, or ten
42.10percent of its net levy in the year prior to the aid distribution.
42.11    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
42.12less than 2,500 must not be less than the amount it was certified to receive in the
42.13previous year minus the lesser of $10 multiplied by its population, or five percent of its
42.142003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
42.15population less than 2,500 must not be less than what it received under this section in the
42.16previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
42.17subdivision 36, paragraph (s), in which case its minimum aid is zero.
42.18    (e) A city's aid loss under this section may not exceed $300,000 in any year in
42.19which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
42.20greater than the appropriation under that subdivision in the previous year, unless the
42.21city has an adjustment in its city net tax capacity under the process described in section
42.22469.174, subdivision 28 .
42.23    (f) If a city's net tax capacity used in calculating aid under this section has decreased
42.24in any year by more than 25 percent from its net tax capacity in the previous year due to
42.25property becoming tax-exempt Indian land, the city's maximum allowed aid increase
42.26under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
42.27year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
42.28resulting from the property becoming tax exempt.
42.29(g) Notwithstanding paragraphs (a) to (f), the total aid for a first class city or a
42.30suburb is its formula aid under subdivision 8.
42.31EFFECTIVE DATE.This section is effective for aids payable in calendar year
42.322013 and thereafter.

42.33    Sec. 23. Minnesota Statutes 2010, section 477A.013, is amended by adding a
42.34subdivision to read:
43.1    Subd. 11. Aid payments in 2011 and 2012. (a) For purposes of this subdivision,
43.2"base aid" means the lesser of (1) the total amount of aid it received under this section in
43.32010, after the reductions under sections 477A.0133 and 477A.0134 and reduced by the
43.4amount of payments under section 477A.011, subdivision 36, paragraphs (y) and (z), or
43.5(2) the amount it was certified to receive in 2011 under subdivision 9.
43.6(b) Notwithstanding aids calculated or certified for aids payable in 2011 under
43.7subdivision 9, in 2011 each city shall receive an aid distribution under this section as
43.8follows:
43.9(1) for a first class city, 75 percent of its base aid as defined in paragraph (a);
43.10(2) for a suburb, 50 percent of its base aid as defined in paragraph (a); and
43.11(3) for any other city, the amount it is certified to receive in 2011 under subdivision 9.
43.12(c) Notwithstanding aids calculated or certified for aids payable in 2012 under
43.13subdivision 9, in 2012 each city shall receive an aid distribution under this section as
43.14follows:
43.15(1) for a first class city, 50 percent of its base aid as defined in paragraph (a);
43.16(2) for a suburb, zero; and
43.17(3) for any other city, its base aid as defined under paragraph (a).
43.18EFFECTIVE DATE.This section is effective for aids payable in calendar years
43.192011 and 2012.

43.20    Sec. 24. Minnesota Statutes 2010, section 477A.03, is amended to read:
43.21477A.03 APPROPRIATION.
43.22    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed
43.23by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
43.24commissioner of revenue.
43.25    Subd. 2a. Cities. For aids payable in 2013 only, the total aid paid under section
43.26477A.013, subdivision 9, is $300,927,637. For aids payable in 2011 2014 and thereafter,
43.27the total aid paid under section 477A.013, subdivision 9, is $527,100,646 $265,446,328.
43.28    Subd. 2b. Counties. (a) For aids payable in 2011 2013 and thereafter, the total aid
43.29payable under section 477A.0124, subdivision 3, is $96,395,000 $78,218,000. Each
43.30calendar year, $500,000 shall be retained by the commissioner of revenue to make
43.31reimbursements to the commissioner of management and budget for payments made
43.32under section 611.27. For calendar year 2004, the amount shall be in addition to the
43.33payments authorized under section 477A.0124, subdivision 1. For calendar year 2005
43.34and subsequent years, The amount shall be deducted from the appropriation under
44.1this paragraph. The reimbursements shall be to defray the additional costs associated
44.2with court-ordered counsel under section 611.27. Any retained amounts not used for
44.3reimbursement in a year shall be included in the next distribution of county need aid
44.4that is certified to the county auditors for the purpose of property tax reduction for the
44.5next taxes payable year.
44.6    (b) For aids payable in 2011 2013 and thereafter, the total aid under section
44.7477A.0124, subdivision 4 , is $101,309,575 $83,133,000. The commissioner of
44.8management and budget shall bill the commissioner of revenue for the cost of preparation
44.9of local impact notes as required by section 3.987, not to exceed $207,000 in fiscal year
44.102004 and thereafter. The commissioner of education shall bill the commissioner of
44.11revenue for the cost of preparation of local impact notes for school districts as required by
44.12section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner
44.13of revenue shall deduct the amounts billed under this paragraph from the appropriation
44.14under this paragraph. The amounts deducted are appropriated to the commissioner of
44.15management and budget and the commissioner of education for the preparation of local
44.16impact notes.
44.17EFFECTIVE DATE.This section is effective for aids payable in calendar year
44.182012 and thereafter.

44.19    Sec. 25. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:
44.20    Subdivision 1. Terms. For the purpose of sections 477A.11 to 477A.145 477A.14,
44.21the terms defined in this section have the meanings given them.
44.22EFFECTIVE DATE.This section is effective for aids payable in calendar year
44.232011 and thereafter.

44.24    Sec. 26. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:
44.25    Subdivision 1. Types of land; payments. (a) As an offset for expenses incurred
44.26by counties and towns in support of natural resources lands, the following amounts are
44.27annually appropriated to the commissioner of natural resources from the general fund for
44.28transfer to the commissioner of revenue. The commissioner of revenue shall pay the
44.29transferred funds to counties as required by sections 477A.11 to 477A.145 477A.14.
44.30The amounts are:
44.31(1) for acquired natural resources land, $3, as adjusted for inflation under section
44.32477A.145, $4.363 multiplied by the total number of acres of acquired natural resources
45.1land or, at the county's option three-fourths of one 0.6375 percent of the appraised value of
45.2all acquired natural resources land in the county, whichever is greater;
45.3(2) 75 cents, as adjusted for inflation under section 477A.145, $1.091 multiplied by
45.4the number of acres of county-administered other natural resources land;
45.5(3) 75 cents, as adjusted for inflation under section 477A.145, $1.091 multiplied by
45.6the total number of acres of land utilization project land; and
45.7(4) 37.5 cents, as adjusted for inflation under section 477A.145, 54.5 cents multiplied
45.8by the number of acres of commissioner-administered other natural resources land located
45.9in each county as of July 1 of each year prior to the payment year.
45.10(b) The amount determined under paragraph (a), clause (1), is payable for land
45.11that is acquired from a private owner and owned by the Department of Transportation
45.12for the purpose of replacing wetland losses caused by transportation projects, but only
45.13if the county contains more than 500 acres of such land at the time the certification is
45.14made under subdivision 2.
45.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
45.162011 and thereafter.

45.17    Sec. 27. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:
45.18    Subdivision 1. General distribution. Except as provided in subdivision 2 or in
45.19section 97A.061, subdivision 5, 40 percent of the total payment to the county shall be
45.20deposited in the county general revenue fund to be used to provide property tax levy
45.21reduction. The remainder shall be distributed by the county in the following priority:
45.22(a) 37.5 cents, as adjusted for inflation under section 477A.145, 54.5 cents for
45.23each acre of county-administered other natural resources land shall be deposited in a
45.24resource development fund to be created within the county treasury for use in resource
45.25development, forest management, game and fish habitat improvement, and recreational
45.26development and maintenance of county-administered other natural resources land. Any
45.27county receiving less than $5,000 annually for the resource development fund may elect to
45.28deposit that amount in the county general revenue fund;
45.29(b) From the funds remaining, within 30 days of receipt of the payment to the
45.30county, the county treasurer shall pay each organized township 30 cents, as adjusted for
45.31inflation under section 477A.145, 43.6 cents for each acre of acquired natural resources
45.32land and each acre of land described in section 477A.12, subdivision 1, paragraph (b), and
45.337.5 cents, as adjusted for inflation under section 477A.145, 10.9 cents for each acre of
45.34other natural resources land and each acre of land utilization project land located within its
45.35boundaries. Payments for natural resources lands not located in an organized township
46.1shall be deposited in the county general revenue fund. Payments to counties and townships
46.2pursuant to this paragraph shall be used to provide property tax levy reduction, except
46.3that of the payments for natural resources lands not located in an organized township, the
46.4county may allocate the amount determined to be necessary for maintenance of roads in
46.5unorganized townships. Provided that, if the total payment to the county pursuant to
46.6section 477A.12 is not sufficient to fully fund the distribution provided for in this clause,
46.7the amount available shall be distributed to each township and the county general revenue
46.8fund on a pro rata basis; and
46.9(c) Any remaining funds shall be deposited in the county general revenue fund.
46.10Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
46.11excess shall be used to provide property tax levy reduction.
46.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
46.132011 and thereafter.

46.14    Sec. 28. Minnesota Statutes 2010, section 477A.17, is amended to read:
46.15477A.17 LAKE VERMILION STATE PARK AND SOUDAN
46.16UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.
46.17    (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under
46.18section 477A.12, subdivision 1, clause (1), the county shall receive an annual payment for
46.19land acquired for Lake Vermilion State Park, established in section 85.012, subdivision
46.2038a, and land within the boundary of Soudan Underground Mine State Park, established
46.21in section 85.012, subdivision 53a, equal to 1.5 1.275 percent of the appraised value of
46.22the land.
46.23    (b) For the purposes of this section, the appraised value of the land acquired for
46.24Lake Vermilion State Park for the first five years after acquisition shall be the purchase
46.25price of the land, plus the value of any portion of the land that is acquired by donation.
46.26The appraised value must be redetermined by the county assessor every five years after
46.27the land is acquired.
46.28    (c) The annual payments under this section shall be distributed to the taxing
46.29jurisdictions containing the property as follows: one-third to the school districts; one-third
46.30to the town; and one-third to the county. The payment to school districts is not a county
46.31apportionment under section 127A.34 and is not subject to aid recapture. Each of those
46.32taxing jurisdictions may use the payments for their general purposes.
46.33    (d) Except as provided in this section, the payments shall be made as provided
46.34in sections 477A.11 to 477A.13.
47.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
47.22011 and thereafter.

47.3    Sec. 29. ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.
47.4In administering sections 15 and 16 for claims for refunds submitted using 19
47.5percent of gross rent as rent constituting property taxes under prior law, the commissioner
47.6shall recalculate and pay the refund amounts using 14.5 percent of gross rent. The
47.7commissioner shall notify the claimant that the recalculation was mandated by action
47.8of the 2011 Legislature.
47.9EFFECTIVE DATE.This section is effective the day following final enactment.

47.10    Sec. 30. CREDIT REDUCTIONS AND LIMITATION; COUNTIES AND
47.11CITIES.
47.12    In 2011, the market value credit reimbursement payment to each county and city
47.13authorized under Minnesota Statutes, section 273.1384, subdivision 4, may not exceed the
47.14reimbursement payment received by the county or city for taxes payable in 2010.
47.15EFFECTIVE DATE.This section is effective for credit reimbursements in 2011.

47.16    Sec. 31. PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.
47.17For the purposes of the property tax statements required under Minnesota Statutes,
47.18section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown
47.19for the previous year is the gross tax minus the residential homestead market value credit.
47.20EFFECTIVE DATE.This section is effective for taxes payable in 2012 only.

47.21    Sec. 32. COOPERATION, CONSOLIDATION, INNOVATION GRANTS.
47.22    Subdivision 1. Definition. For the purposes of this section, "local government"
47.23means a town, county, or home rule charter or statutory city.
47.24    Subd. 2. Grants. The commissioner of administration may make a cooperation,
47.25consolidation, and service innovation grant to a local government that is participating with
47.26at least one other local government in planning for or implementing provision of services
47.27cooperatively or in planning and implementing consolidation of services, functions, or
47.28governance. The grants shall be made on a first-come first-served basis. The commissioner
47.29shall determine the form and content of the application and grant agreements. At a
47.30minimum, an application must contain a resolution adopted by the governing body of each
48.1participating local government supporting the cooperation, consolidation, or innovation
48.2effort that identifies the services and functions the local government is considering
48.3providing cooperatively with one or more other local governments or that identifies the
48.4functions the local governments seek to consolidate. The maximum grant amount is
48.5$100,000 per local government.
48.6    Subd. 3. Report. The commissioner of administration must report to the governor
48.7and legislative committees with jurisdiction over local government governance and local
48.8government taxes and finance on the cooperation and consolidation grants made and
48.9how the money was used, what services and functions have been provided by local
48.10governments in cooperation with each other, what programs or governance structures have
48.11been proposed for consolidation or consolidated, and what impediments remain that
48.12prevent cooperation, consolidation, and service innovation. An interim report is due
48.13February 1, 2012, and a final report is due December 15, 2012.
48.14    Subd. 4. Appropriation. $....... is appropriated from the general fund to the
48.15commissioner of administration for the biennium ending June 30, 2013, to make grants to
48.16counties as provided in this section.

48.17    Sec. 33. REPEALER.
48.18(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivision
48.192; are repealed.
48.20(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.
48.21(c) Minnesota Statutes 2010, sections 273.1384, subdivision 6; and 477A.145, are
48.22repealed.
48.23(d) Minnesota Statutes 2010, sections 290C.01; 290C.02; 290C.03; 290C.04;
48.24290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12;
48.25and 290C.13, are repealed.
48.26EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
48.27Paragraph (b) is effective for refund claims based on contributions made after June 30,
48.282011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d) is
48.29effective July 1, 2011, and the covenants under the program are void on that date. No later
48.30than 60 days after enactment of this section, the commissioner of revenue shall issue a
48.31document to each enrollee immediately releasing the land from the covenant as provided
48.32in Minnesota Statutes 2010, section 290C.04, paragraph (c).


49.3    Section 1. DEFINITION; LOCAL TAXING AUTHORITY.
49.4(a) For purposes of this act, "local taxing authority" means a county or a home rule
49.5charter or statutory city, but excludes any county or home rule charter or statutory city that
49.6receives no aid payments under sections 477A.011 to 477A.03 in calendar year 2012.
49.7(b) A local tax authority may be exempted from this article if it chooses to forgo
49.8aid payments under sections 477A.011 to 477A.03 in calendar year 2012 and informs the
49.9commissioner of revenue of this intent by October 1, 2011.
49.10EFFECTIVE DATE.This section is effective for taxes payable in 2012.

49.11    Sec. 2. LEVY LIMITATION FOR TAXES PAYABLE IN 2012.
49.12    Subdivision 1. Proposed levy. Notwithstanding any other law to the contrary, for
49.13purposes of the certification required by Minnesota Statutes, section 275.065, subdivision
49.141, in 2011, no local taxing authority shall certify to the county auditor a proposed property
49.15tax levy that exceeds the greater of (1) the levy certified in the prior year or (2) two percent
49.16of the amount it certified for taxes payable in 2010, except as provided in this section.
49.17    Subd. 2. Final levy. Notwithstanding any other law to the contrary, for purposes of
49.18the certification required by Minnesota Statutes, section 275.07, subdivision 1, in 2011 and
49.192012, no local taxing authority shall certify to the county auditor a property tax levy that
49.20exceeds the greater of the amount certified in the prior year or two percent of the amount
49.21certified for taxes payable in 2010, to the county auditor pursuant to Minnesota Statutes,
49.22section 275.07, subdivision 1, except as provided in this section.
49.23    Subd. 3. Debt service exception. Notwithstanding the limitations in subdivisions 1
49.24and 2, a local taxing authority may propose and levy for taxes payable in 2012 an amount
49.25in excess of the levy certified pursuant to Minnesota Statutes, section 275.07, subdivision
49.261, in 2010, payable in 2011, for debt service on obligations, certificates of indebtedness,
49.27capital notes, or other debt instruments sold prior to June 1, 2011, or for bonds approved by
49.28the voters under Minnesota Statutes, section 275.60, or to make payments on installment
49.29purchase contracts or lease purchase agreements entered into before June 1, 2011. The
49.30amount that may be levied in excess of the limits set in subdivisions 1 and 2 may not
49.31exceed the difference between what the taxing authority needs to levy for taxes payable in
49.322012 for that purpose and the amount it levied for that purpose for taxes payable in 2011.
50.1    Subd. 4. Annexation exception. (a) The city tax rate for taxes payable in 2012
50.2on any property annexed under Minnesota Statutes, chapter 414, may not be increased
50.3over the city or township tax rate in effect on the property for taxes payable in 2011,
50.4notwithstanding any law, municipal board order, or ordinance to the contrary. The limit on
50.5the annexing city's levy under subdivisions 1 and 2 is increased by an amount equal to
50.6the net tax capacity of the property annexed multiplied by the city or township tax rate in
50.7effect for that property for taxes payable in 2011. The levy limit under subdivisions 1 and
50.82 for the city from which the property is annexed is reduced by the same amount.
50.9(b) A county may increase its levy by an amount equal to the amount levied on its
50.10behalf by a regional rail authority for taxes payable in 2010 under Minnesota Statutes,
50.11section 398A.04, subdivision 8.
50.12    Subd. 5. New construction exception. A local taxing jurisdiction may increase
50.13its levy for taxes levied in 2011, payable in 2012 for new construction. The increase in
50.14levy authority shall be equal to the product of (1) the local taxing authority's tax rate
50.15for taxes payable in 2011 and (2) the tax capacity of new construction located in the
50.16jurisdiction of the taxing authority that has come on the tax rolls for taxes payable in
50.172012. For purposes of this subdivision, "new construction" means new construction of
50.18real property for all classes of property. The assessor in each county shall provide each
50.19local taxing authority and the commissioner of revenue with the information needed
50.20to make this adjustment in levy authority.
50.21    Subd. 6. Disaster exception. Notwithstanding the limits in subdivisions 1 and 2,
50.22a local taxing authority may levy an additional levy to pay the expenses reasonably and
50.23necessarily incurred in preparing for or repairing the effects of a natural disaster. If levying
50.24under this exception, the local taxing authority must seek approval from the commissioner
50.25of revenue for the amount of levy, in the same manner as provided in Minnesota Statutes,
50.26section 275.74, subdivision 2, paragraph (a).
50.27    Subd. 7. Exception for reduction in utility transition aid. If a city's utility
50.28valuation transition aid under Minnesota Statutes, section 477A.16, is certified to decrease
50.29in calendar year 2012 over its aid in calendar year 2011, due to an increase in the total net
50.30tax capacity for public utility property located in the taxing jurisdiction, the city may levy
50.31in excess of the limits set in subdivisions 1 and 2 for taxes payable in 2012 an amount
50.32equal to the aid loss since calendar year 2011.
51.1    Subd. 8. Election exception. Notwithstanding the limitations in subdivisions 1 and
51.22, a local taxing authority may levy an additional levy in any amount if approved by a
51.3majority of the voters as provided in Minnesota Statutes, section 275.73.
51.4EFFECTIVE DATE.This section is effective for taxes levied in 2011, payable
51.5in 2012.

51.6    Sec. 3. PROHIBITION AGAINST INCURRING NEW DEBT.
51.7    Subdivision 1. Actions prohibited. (a) After May 31, 2011, no local taxing
51.8authority may sell obligations, certificates of indebtedness, capital notes, or other debt
51.9instruments under Minnesota Statutes, section 412.301, chapter 475, or any other law;
51.10nor may it enter into installment purchase contracts or lease purchase agreements under
51.11Minnesota Statutes, section 465.71, or any other law if issuing those debt instruments or
51.12entering into those contracts would require a levy first becoming payable in 2012.
51.13(b) For purposes of this section, "obligations" includes certificates of indebtedness,
51.14capital notes, other debt instruments, installment purchase contracts, and lease purchase
51.15agreements.
51.16    Subd. 2. Exceptions. This prohibition does not apply to:
51.17(1) refunding bonds sold to refund bonds originally sold before June 1, 2011;
51.18(2) obligations for which the amount of the levy payable in 2012 would not exceed
51.19the difference between (i) the local taxing authority's total debt service levy for taxes
51.20payable in 2011 and (ii) its total debt service levy for taxes payable in 2012 prior to
51.21issuance of these obligations;
51.22(3) obligations with respect to which the local taxing authority makes a finding at
51.23the time of the issuance of the obligation that no levy is required to meet the obligation
51.24for taxes payable in 2012, or that sufficient funds are available from a nonproperty tax
51.25source to fund the obligation; and
51.26(4) obligations approved by the voters pursuant to Minnesota Statutes, section
51.27275.60.
51.28    Subd. 3. Date when bonds are deemed sold. For purposes of this section, bonds
51.29are deemed to have been sold before June 1, 2011, if:
51.30(1) an agreement has been entered into between the local taxing authority and a
51.31purchaser or underwriter for the sale of the bonds by that date;
51.32(2) the issuing local taxing authority is a party to a contract or letter of understanding
51.33entered into before June 1, 2011, with the federal government or the state government that
52.1requires the local taxing authority to pay for a project and the project is funded with the
52.2proceeds of the bonds; or
52.3(3) the proceeds of the bonds are used to fund a project or acquisition with respect
52.4to which the local taxing authority has entered into a contract with a builder or supplier
52.5before June 1, 2011.
52.6EFFECTIVE DATE.This section is effective for taxes payable in 2012.

52.7    Sec. 4. BENEFIT RATIO FOR RURAL SERVICE DISTRICTS.
52.8Notwithstanding Minnesota Statutes, section 272.67, subdivision 6, the benefit ratio
52.9used for apportioning levies to a rural service district for taxes payable in 2012 and 2013
52.10must not be greater than that in effect for taxes payable in 2011.
52.11EFFECTIVE DATE.This section is effective for taxes payable in 2012 and 2013.

52.12    Sec. 5. FREEZE ON LOCAL MATCH REQUIREMENTS.
52.13Notwithstanding any other law to the contrary, the local funding or local match
52.14required from any local taxing authority for any state grant or program shall not be
52.15increased for calendar year 2012 above the dollar amount for the local funding or local
52.16match for the same grant or program in 2011, regardless of the level of state funding
52.17provided. Any local match or local funding requirement that first becomes effective after
52.18December 31, 2011, for new or changed state grants or programs is not effective for a
52.19local taxing authority until after December 31, 2012. Nothing in this section affects the
52.20eligibility of, or reduces the funding level to, a local taxing authority subject to the levy
52.21limits in section 1 if the local match requirements of the program were met in 2011.
52.22EFFECTIVE DATE.This section is effective for taxes payable in 2012.

52.23    Sec. 6. PENSION LIABILITIES.
52.24Notwithstanding any other law or charter provision to the contrary, no levy for
52.25taxes payable in 2012 and 2013 for a local police or fire relief association for the purpose
52.26of amortizing the unfunded pension liability may exceed the levy for that purpose
52.27for taxes payable in 2011. A municipality remains eligible for state police or fire aid
52.28notwithstanding a failure of the municipality to pay its minimum municipal obligation
52.29under Minnesota Statutes, section 69.77, if the failure occurs during a municipal budget
52.30year for which a limitation in sections 1 to 7 prevented the municipal levy from increasing
52.31over the levy amount for taxes payable in 2011.
53.1EFFECTIVE DATE.This section is effective for taxes payable in 2012.

53.2    Sec. 7. SAVINGS CLAUSE.
53.3Notwithstanding any provision in sections 1 to 7, the provisions of sections 1 to 7
53.4neither constitute an impairment of any obligation, certificate of indebtedness, capital note,
53.5or other debt instrument sold prior to June 1, 2011, nor does it constitute an impairment on
53.6the ability of a local taxing authority to make payments on installment purchase contracts
53.7or lease purchase agreements entered into by a local taxing authority before June 1, 2011.
53.8EFFECTIVE DATE.This section is effective for taxes payable in 2012."
53.9Delete the title and insert:
53.11relating to taxation; making changes to property, aids, credits, payments, refunds,
53.12local sales and use, tax increment financing, aggregate material, and other taxes
53.13and tax-related provisions; providing a property tax freeze; authorizing border
53.14city development zone powers and local taxes; modifying regional railroad
53.15authority provisions; repealing sustainable forest resource management incentive;
53.16authorizing grants to local governments for cooperation, consolidation, and
53.17service innovation; requiring reports; appropriating money;amending Minnesota
53.18Statutes 2010, sections 97A.061, subdivisions 1, 3; 270A.03, subdivision 7;
53.19272.02, by adding a subdivision; 273.121, subdivision 1; 273.13, subdivisions
53.2021b, 25; 273.1384, subdivisions 1, 3, 4; 273.1393; 273.1398, subdivision 3;
53.21275.025, subdivision 3; 275.08, subdivisions 1a, 1d; 276.04, subdivision 2;
53.22279.01, subdivision 1; 289A.50, subdivision 1; 290.01, subdivision 6; 290A.03,
53.23subdivisions 11, 13; 297A.99, subdivision 1; 298.75, by adding a subdivision;
53.24398A.04, subdivision 8; 398A.07, subdivision 2; 469.1763, subdivision 2;
53.25473.757, subdivisions 2, 11; 477A.011, by adding subdivisions; 477A.0124, by
53.26adding a subdivision; 477A.013, subdivisions 8, 9, by adding a subdivision;
53.27477A.03; 477A.11, subdivision 1; 477A.12, subdivision 1; 477A.14, subdivision
53.281; 477A.17; Laws 1996, chapter 471, article 2, section 29, subdivision 1, as
53.29amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 3, as
53.30amended, 4, as amended, 5, as amended; Laws 2008, chapter 366, article
53.317, section 19, subdivision 3; Laws 2010, chapter 389, article 7, section 22;
53.32proposing coding for new law in Minnesota Statutes, chapter 373; repealing
53.33Minnesota Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivision
53.342; 273.1384, subdivision 6; 279.01, subdivision 4; 290.06, subdivision 23;
53.35290C.01; 290C.02; 290C.03; 290C.04; 290C.05; 290C.055; 290C.06; 290C.07;
53.36290C.08; 290C.09; 290C.10; 290C.11; 290C.12; 290C.13; 477A.145."