1.1.................... moves to amend H.F. No. 2 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
1.6    Subd. 3. Income. (1) "Income" means the sum of the following:
1.7(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.8(b) the sum of the following amounts to the extent not included in clause (a):
1.9(i) all nontaxable income;
1.10(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.11469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.12loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.13(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.14of a solvent individual excluded from gross income under section 108(g) of the Internal
1.15Revenue Code;
1.16(iv) cash public assistance and relief;
1.17(v) any pension or annuity (including railroad retirement benefits, all payments
1.18received under the federal Social Security Act, Supplemental Security Income, and
1.19veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.20was funded exclusively by the claimant or spouse and which funding payments were
1.21excluded from federal adjusted gross income in the years when the payments were made;
1.22(vi) interest received from the federal or a state government or any instrumentality
1.23or political subdivision thereof;
1.24(vii) workers' compensation;
1.25(viii) nontaxable strike benefits;
2.1(ix) the gross amounts of payments received in the nature of disability income or
2.2sick pay as a result of accident, sickness, or other disability, whether funded through
2.3insurance or otherwise;
2.4(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.51986, as amended through December 31, 1995;
2.6(xi) contributions made by the claimant to an individual retirement account,
2.7including a qualified voluntary employee contribution; simplified employee pension plan;
2.8self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
2.9of the Internal Revenue Code; or deferred compensation plan under section 457 of the
2.10Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base
2.11amount for the claimant and spouse;
2.12(xii) to the extent not included in federal adjusted gross income, distributions
2.13received by the claimant or spouse from a traditional or Roth style individual retirement
2.14account or plan;
2.15(xiii) nontaxable scholarship or fellowship grants;
2.16(xiii) (xiv) the amount of deduction allowed under section 199 of the Internal
2.17Revenue Code;
2.18(xiv) (xv) the amount of deduction allowed under section 220 or 223 of the Internal
2.19Revenue Code;
2.20(xv) (xvi) the amount of tuition expenses required to be added to income under
2.21section 290.01, subdivision 19a, clause (12);
2.22(xvi) (xvii) the amount deducted for certain expenses of elementary and secondary
2.23school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.24(xvii) (xviii) unemployment compensation.
2.25In the case of an individual who files an income tax return on a fiscal year basis, the
2.26term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.27in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.28reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.29carryback or carryforward allowed for the year.
2.30(2) "Income" does not include:
2.31(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
2.32(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.33or spouse and which funding payments were not excluded from federal adjusted gross
2.34income in the years when the payments were made;
2.35(c) to the extent included in federal adjusted gross income, amounts contributed by
2.36the claimant or spouse to a traditional or Roth style individual retirement account or plan,
3.1but not to exceed the retirement base amount reduced by the amount of contributions
3.2excluded from federal adjusted gross income, but not less than zero;
3.3(d) surplus food or other relief in kind supplied by a governmental agency;
3.4(d) (e) relief granted under this chapter;
3.5(e) (f) child support payments received under a temporary or final decree of
3.6dissolution or legal separation; or
3.7(f) (g) restitution payments received by eligible individuals and excludable interest
3.8as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
3.92001, Public Law 107-16.
3.10(3) The sum of the following amounts may be subtracted from income:
3.11(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
3.12(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
3.13(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
3.14(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
3.15(e) for the claimant's fifth dependent, the exemption amount; and
3.16(f) if the claimant or claimant's spouse was disabled or attained the age of 65
3.17on or before December 31 of the year for which the taxes were levied or rent paid, the
3.18exemption amount.
3.19For purposes of this subdivision, the "exemption amount" means the exemption
3.20amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.21the income is reported; and "retirement base amount" means the deductible amount for
3.22the taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
3.23Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal
3.24Revenue Code, without regard to whether the claimant or spouse claimed a deduction.
3.25EFFECTIVE DATE.This section is effective beginning with refunds based on
3.26property taxes payable in 2014 and rent paid in 2013.

3.27    Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:
3.28    Subd. 2. Homeowners; homestead credit refund. A claimant whose property
3.29taxes payable are in excess of the percentage of the household income stated below shall
3.30pay an amount equal to the percent of income shown for the appropriate household
3.31income level along with the percent to be paid by the claimant of the remaining amount
3.32of property taxes payable. The state refund equals the amount of property taxes payable
3.33that remain, up to the state refund amount shown below.

4.1 4.2 4.3	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
4.4	$0 to 1,549	1.0 percent	15 percent	$	2,460
4.5	1,550 to 3,089	1.1 percent	15 percent	$	2,460
4.6	3,090 to 4,669	1.2 percent	15 percent	$	2,460
4.7	4,670 to 6,229	1.3 percent	20 percent	$	2,460
4.8	6,230 to 7,769	1.4 percent	20 percent	$	2,460
4.9	7,770 to 10,879	1.5 percent	20 percent	$	2,460
4.10	10,880 to 12,429	1.6 percent	20 percent	$	2,460
4.11	12,430 to 13,989	1.7 percent	20 percent	$	2,460
4.12	13,990 to 15,539	1.8 percent	20 percent	$	2,460
4.13	15,540 to 17,079	1.9 percent	25 percent	$	2,460
4.14	17,080 to 18,659	2.0 percent	25 percent	$	2,460
4.15	18,660 to 21,759	2.1 percent	25 percent	$	2,460
4.16	21,760 to 23,309	2.2 percent	30 percent	$	2,460
4.17	23,310 to 24,859	2.3 percent	30 percent	$	2,460
4.18	24,860 to 26,419	2.4 percent	30 percent	$	2,460
4.19	26,420 to 32,629	2.5 percent	35 percent	$	2,460
4.20	32,630 to 37,279	2.6 percent	35 percent	$	2,460
4.21	37,280 to 46,609	2.7 percent	35 percent	$	2,000
4.22	46,610 to 54,369	2.8 percent	35 percent	$	2,000
4.23	54,370 to 62,139	2.8 percent	40 percent	$	1,750
4.24	62,140 to 69,909	3.0 percent	40 percent	$	1,440
4.25	69,910 to 77,679	3.0 percent	40 percent	$	1,290
4.26	77,680 to 85,449	3.0 percent	40 percent	$	1,130
4.27	85,450 to 90,119	3.5 percent	45 percent	$	960
4.28	90,120 to 93,239	3.5 percent	45 percent	$	790
4.29	93,240 to 97,009	3.5 percent	50 percent	$	650
4.30	97,010 to 100,779	3.5 percent	50 percent	$	480

4.31 4.32 4.33	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
4.34	$0 to 1,619	1.0 percent	15 percent	$	2,580
4.35	1,620 to 3,229	1.1 percent	15 percent	$	2,580
4.36	3,230 to 4,889	1.2 percent	15 percent	$	2,580
4.37	4,890 to 6,519	1.3 percent	20 percent	$	2,580
4.38	6,520 to 8,129	1.4 percent	20 percent	$	2,580
4.39	8,130 to 11,389	1.5 percent	20 percent	$	2,580
4.40	11,390 to 13,009	1.6 percent	20 percent	$	2,580
4.41	13,010 to 14,649	1.7 percent	20 percent	$	2,580
4.42	14,650 to 16,269	1.8 percent	20 percent	$	2,580
4.43	16,270 to 17,879	1.9 percent	25 percent	$	2,580
4.44	17,880 to 22,779	2.0 percent	25 percent	$	2,580
5.1	22,780 to 24,399	2.0 percent	30 percent	$	2,580
5.2	24,400 to 27,659	2.0 percent	30 percent	$	2,580
5.3	27,660 to 39,029	2.0 percent	35 percent	$	2,580
5.4	39,030 to 56,919	2.0 percent	35 percent	$	2,090
5.5	56,920 to 65,049	2.0 percent	40 percent	$	1,830
5.6	65,050 to 73,189	2.1 percent	40 percent	$	1,510
5.7	73,190 to 81,319	2.2 percent	40 percent	$	1,350
5.8	81,320 to 89,449	2.3 percent	40 percent	$	1,180
5.9	89,450 to 94,339	2.4 percent	45 percent	$	1,000
5.10	94,340 to 97,609	2.5 percent	45 percent	$	830
5.11	97,610 to 101,559	2.5 percent	50 percent	$	680
5.12	101,560 to 105,499	2.5 percent	50 percent	$	500

5.13    The payment made to a claimant shall be the amount of the state refund calculated
5.14under this subdivision. No payment is allowed if the claimant's household income is
5.15$100,780 $105,500 or more.
5.16EFFECTIVE DATE.This section is effective for refund claims based on taxes
5.17payable in 2014 and thereafter.

5.18    Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
5.19    Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the
5.20percentage of the household income stated below must pay an amount equal to the percent
5.21of income shown for the appropriate household income level along with the percent to
5.22be paid by the claimant of the remaining amount of rent constituting property taxes. The
5.23state refund equals the amount of rent constituting property taxes that remain, up to the
5.24maximum state refund amount shown below.

5.25 5.26 5.27	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
5.28	$0 to 3,589	1.0 percent	5 percent	$	1,190
5.29	3,590 to 4,779	1.0 percent	10 percent	$	1,190
5.30	4,780 to 5,969	1.1 percent	10 percent	$	1,190
5.31	5,970 to 8,369	1.2 percent	10 percent	$	1,190
5.32	8,370 to 10,759	1.3 percent	15 percent	$	1,190
5.33	10,760 to 11,949	1.4 percent	15 percent	$	1,190
5.34	11,950 to 13,139	1.4 percent	20 percent	$	1,190
5.35	13,140 to 15,539	1.5 percent	20 percent	$	1,190
5.36	15,540 to 16,729	1.6 percent	20 percent	$	1,190
5.37	16,730 to 17,919	1.7 percent	25 percent	$	1,190
5.38	17,920 to 20,319	1.8 percent	25 percent	$	1,190
6.1	20,320 to 21,509	1.9 percent	30 percent	$	1,190
6.2	21,510 to 22,699	2.0 percent	30 percent	$	1,190
6.3	22,700 to 23,899	2.2 percent	30 percent	$	1,190
6.4	23,900 to 25,089	2.4 percent	30 percent	$	1,190
6.5	25,090 to 26,289	2.6 percent	35 percent	$	1,190
6.6	26,290 to 27,489	2.7 percent	35 percent	$	1,190
6.7	27,490 to 28,679	2.8 percent	35 percent	$	1,190
6.8	28,680 to 29,869	2.9 percent	40 percent	$	1,190
6.9	29,870 to 31,079	3.0 percent	40 percent	$	1,190
6.10	31,080 to 32,269	3.1 percent	40 percent	$	1,190
6.11	32,270 to 33,459	3.2 percent	40 percent	$	1,190
6.12	33,460 to 34,649	3.3 percent	45 percent	$	1,080
6.13	34,650 to 35,849	3.4 percent	45 percent	$	960
6.14	35,850 to 37,049	3.5 percent	45 percent	$	830
6.15	37,050 to 38,239	3.5 percent	50 percent	$	720
6.16	38,240 to 39,439	3.5 percent	50 percent	$	600
6.17	38,440 to 40,629	3.5 percent	50 percent	$	360
6.18	40,630 to 41,819	3.5 percent	50 percent	$	120

6.19	$0 to 4,909	1.0 percent	5 percent	$	2,000
6.20	4,910 to 6,529	1.0 percent	10 percent	$	2,000
6.21	6,530 to 8,159	1.1 percent	10 percent	$	1,950
6.22	8,160 to 11,439	1.2 percent	10 percent	$	1,900
6.23	11,440 to 14,709	1.3 percent	15 percent	$	1,850
6.24	14,710 to 16,339	1.4 percent	15 percent	$	1,800
6.25	16,340 to 17,959	1.4 percent	20 percent	$	1,750
6.26	17,960 to 21,239	1.5 percent	20 percent	$	1,700
6.27	21,240 to 22,869	1.6 percent	20 percent	$	1,650
6.28	22,870 to 24,499	1.7 percent	25 percent	$	1,650
6.29	24,500 to 27,779	1.8 percent	25 percent	$	1,650
6.30	27,780 to 29,399	1.9 percent	30 percent	$	1,650
6.31	29,400 to 34,299	2.0 percent	30 percent	$	1,650
6.32	34,300 to 39,199	2.0 percent	35 percent	$	1,650
6.33	39,200 to 45,739	2.0 percent	40 percent	$	1,650
6.34	45,740 to 47,369	2.0 percent	45 percent	$	1,500
6.35	47,370 to 49,009	2.0 percent	45 percent	$	1,350
6.36	49,010 to 50,649	2.0 percent	45 percent	$	1,150
6.37	50,650 to 52,269	2.0 percent	50 percent	$	1,000
6.38	52,270 to 53,909	2.0 percent	50 percent	$	900
6.39	53,910 to 55,539	2.0 percent	50 percent	$	500
6.40	55,540 to 57,169	2.0 percent	50 percent	$	200

7.1The payment made to a claimant is the amount of the state refund calculated under
7.2this subdivision. No payment is allowed if the claimant's household income is $41,820
7.3 $57,170 or more.
7.4EFFECTIVE DATE.This section is effective for claims based on rent paid in
7.52013 and following years.

7.6    Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
7.7    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
7.8calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
7.9income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
7.10The commissioner shall make the inflation adjustments in accordance with section 1(f) of
7.11the Internal Revenue Code, except that for purposes of this subdivision the percentage
7.12increase shall be determined as provided in this subdivision.
7.13(b) In adjusting the dollar amounts of the income thresholds and the maximum
7.14refunds under subdivision 2 for inflation, the percentage increase shall be determined
7.15from the year ending on June 30, 2011 2013, to the year ending on June 30 of the year
7.16preceding that in which the refund is payable.
7.17(c) In adjusting the dollar amounts of the income thresholds and the maximum
7.18refunds under subdivision 2a for inflation, the percentage increase shall be determined
7.19from the year ending on June 30, 2000 2013, to the year ending on June 30 of the year
7.20preceding that in which the refund is payable.
7.21(d) The commissioner shall use the appropriate percentage increase to annually
7.22adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
7.23inflation without regard to whether or not the income tax brackets are adjusted for inflation
7.24in that year. The commissioner shall round the thresholds and the maximum amounts,
7.25as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
7.26round it up to the next $10 amount.
7.27(e) The commissioner shall annually announce the adjusted refund schedule at the
7.28same time provided under section 290.06. The determination of the commissioner under
7.29this subdivision is not a rule under the Administrative Procedure Act.
7.30EFFECTIVE DATE.This section is effective for refund claims based on taxes
7.31payable in 2014 and rent paid in 2013 and following years.

7.32    Sec. 5. [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY.
8.1    Subdivision 1. Notification of eligibility. (a) By August 1, 2014, the commissioner
8.2shall notify, in writing or electronically, individual homeowners whom the commissioner
8.3determines likely will be eligible for a homestead credit refund under this chapter for
8.4that property taxes payable year. In determining whether to notify a homeowner, the
8.5commissioner shall consider the property tax information available to the commissioner
8.6under paragraph (b) and the most recent income information available to the commissioner
8.7from filing under this chapter for the prior year or under chapter 290 for the current or
8.8prior year. The notification must include information on how to file for the homestead
8.9credit refund and the range of potential homestead credit refunds that the homeowner
8.10could qualify to receive. The notification requirement under this section does not apply
8.11to a homeowner who has already filed for the homestead credit refund for the current
8.12or prior year.
8.13(b) By May 15, 2014, each county auditor shall transmit to the commissioner
8.14of revenue the following information for each property classified as a residential or
8.15agricultural homestead under section 273.13, subdivision 22 or 23:
8.16(1) the property taxes payable;
8.17(2) the name and address of the owner;
8.18(3) the Social Security number or numbers of the owners; and
8.19(4) any other information the commissioner deems necessary or useful to carry
8.20out the provisions of this section.
8.21The information must be provided in the form and manner prescribed by the commissioner.
8.22    Subd. 2. Report. By March 15, 2015, the commissioner must provide written
8.23reports to the chairs and ranking minority members of the legislative committees with
8.24jurisdiction over taxes, in compliance with Minnesota Statutes, sections 3.195 and 3.197.
8.25The report must provide information on the number and dollar amount of homeowner
8.26property tax refund claims based on taxes payable in 2014, including:
8.27(i) the number and dollar amount of claims projected for homestead credit refunds
8.28based on taxes payable in 2014 prior to enactment of the notification requirement in
8.29this section;
8.30(ii) the number of notifications issued as provided in this section, including the
8.31number issued by county;
8.32(iii) the number and dollar amount of claims for homestead credit refunds based on
8.33taxes payable in 2014 processed through December 31, 2014; and
8.34(iv) a description of any outreach efforts undertaken by the commissioner for
8.35homestead credit refunds based on taxes payable in 2014, in addition to the notification
8.36required in this section.
9.1EFFECTIVE DATE.This section is effective for refund claims based on property
9.2taxes payable in 2014.


9.5    Section 1. Minnesota Statutes 2012, section 69.021, is amended by adding a
9.6subdivision to read:
9.7    Subd. 12. Surcharge aid accounts. (a) A surcharge fire pension aid account is
9.8established in the general fund to receive amounts as provided under section 297I.07,
9.9subdivision 3, clause (1). The commissioner shall administer the account and allocate
9.10money in the account as follows:
9.11(1) 17.342 percent as supplemental state pension funding paid to the executive
9.12director of the Public Employees Retirement Association for deposit in the public
9.13employees police and fire retirement fund established by section 353.65, subdivision 1;
9.14(2) 8.658 percent to municipalities employing firefighters with retirement coverage
9.15by the public employees police and fire retirement plan, allocated in proportion to the
9.16relationship that the preceding December 31 number of firefighters employed by each
9.17municipality who have public employees police and fire retirement plan coverage bears to
9.18the total preceding December 31 number of municipal firefighters covered by the public
9.19employees police and fire retirement plan; and
9.20(3) 74 percent for municipalities other than the municipalities receiving a
9.21disbursement under clause (2) which qualified to receive fire state aid in that calendar year,
9.22allocated in proportion to the most recent amount of fire state aid paid under subdivision 7
9.23for the municipality bears to the most recent total fire state aid for all municipalities other
9.24than the municipalities receiving a disbursement under clause (2) paid under subdivision
9.257, with the allocated amount for fire departments participating in the voluntary statewide
9.26lump-sum volunteer firefighter retirement plan paid to the executive director of the Public
9.27Employees Retirement Association for deposit in the fund established by section 353G.02,
9.28subdivision 3, and credited to the respective account and with the balance paid to the
9.29treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of
9.30the applicable volunteer firefighter relief association for deposit in its special fund.
9.31(b) A surcharge police pension aid account is established in the general fund
9.32to receive amounts as provided by section 297I.07, subdivision 3, clause (2). The
9.33commissioner shall administer the account and allocate money in the account as follows:
9.34(1) one-third to be distributed as police state aid as provided under subdivision 7a; and
10.1(2) two-thirds to be apportioned, on the basis of the number of active police officers
10.2certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:
10.3(i) the executive director of the Public Employees Retirement Association for
10.4deposit as a supplemental state pension funding aid in the public employees police and fire
10.5retirement fund established by section 353.65, subdivision 1; and
10.6(ii) the executive director of the Minnesota State Retirement System for deposit as a
10.7supplemental state pension funding aid in the state patrol retirement fund.
10.8(c) On or before September 1, annually, the executive director of the Public
10.9Employees Retirement Association shall report to the commissioner the following:
10.10(1) the municipalities which employ firefighters with retirement coverage by the
10.11public employees police and fire retirement plan;
10.12(2) the number of firefighters with public employees police and fire retirement plan
10.13employed by each municipality;
10.14(3) the fire departments covered by the voluntary statewide lump-sum volunteer
10.15firefighter retirement plan; and
10.16(4) any other information requested by the commissioner to administer the surcharge
10.17fire pension aid account.
10.18(d) For this subdivision, (i) the number of firefighters employed by a municipality
10.19who have public employees police and fire retirement plan coverage means the number
10.20of firefighters with public employees police and fire retirement plan coverage that were
10.21employed by the municipality for not less than 30 hours per week for a minimum of six
10.22months prior to December 31 preceding the date of the payment under this section and, if
10.23the person was employed for less than the full year, prorated to the number of full months
10.24employed; and, (ii) the number of active police officers certified for police state aid receipt
10.25under section 69.011, subdivisions 2 and 2b means, for each municipality, the number of
10.26police officers meeting the definition of peace officer in section 69.011, subdivision 1,
10.27counted as provided and limited by section 69.011, subdivisions 2 and 2b.
10.28(e) The payments under this section shall be made on October 1 each year, based
10.29on the amount in the surcharge fire pension aid account and the amount in the surcharge
10.30police pension aid account on the preceding June 30, with interest at 1 percent for each
10.31month, or portion of a month, that the amount remains unpaid after October 1. The
10.32amounts necessary to make the payments under this subdivision are annually appropriated
10.33to the commissioner from the surcharge fire and police pension aid accounts. Any
10.34necessary adjustments shall be made to subsequent payments.
10.35(f) The provisions of this chapter that prevent municipalities and relief associations
10.36from being eligible for, or receiving state aid under this chapter until the applicable
11.1financial reporting requirements have been complied with, apply to the amounts payable
11.2to municipalities and relief associations under this subdivision.
11.3EFFECTIVE DATE.This section is effective beginning in the fiscal year beginning
11.4July 1, 2013.

11.5    Sec. 2. [297I.07] SURCHARGE ON HOMEOWNERS AND AUTO POLICIES.
11.6    Subdivision 1. Surcharge on policies. (a) Each licensed insurer engaged in writing
11.7insurance shall collect a surcharge equal to $5 per calendar year for each policy issued
11.8or renewed during that calendar year for:
11.9(1) homeowners insurance authorized in section 60A.06, subdivision 1, clause
11.10(1)(c); and
11.11(2) automobile insurance as defined in section 65B.14, subdivision 2.
11.12(b) The surcharge amount collected under this subdivision must not be considered
11.13premium for any other purpose. The surcharge amount must be separately stated on either a
11.14billing or policy declaration or document containing similar information sent to an insured.
11.15    Subd. 2. Collection and administration. The commissioner shall administer the
11.16surcharge imposed by this section in the same manner as the taxes imposed by this chapter.
11.17    Subd. 3. Deposit of revenues. The commissioner shall deposit revenues from the
11.18surcharge under this section as follows:
11.19(1) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
11.20(1), in a surcharge fire pension aid account in the general fund; and
11.21(2) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
11.22(2), in a surcharge police pension aid account in the general fund.
11.23    Subd. 4. Surcharge termination. The surcharge imposed under subdivision
11.241 ends on the December 31 next following the actuarial valuation date on which the
11.25assets of the retirement plan on a market value equals or exceeds 90 percent of the total
11.26actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation
11.27prepared under section 356.215 and the Standards for Actuarial Work promulgated by the
11.28Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan
11.29or the public employees police and fire retirement plan, whichever occurs last.
11.30EFFECTIVE DATE.This section is effective for policies issued after June 30, 2013.

11.31    Sec. 3. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:
11.32    Subd. 30. Pre-1940 housing percentage. (a) Except as provided in paragraph (b),
11.33"pre-1940 housing percentage" for a city is 100 times the most recent federal census count
12.1by the United States Bureau of the Census of all housing units in the city built before
12.21940, divided by the total number of all housing units in the city. Housing units includes
12.3both occupied and vacant housing units as defined by the federal census.
12.4(b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal
12.5to 100 times the 1990 federal census count of all housing units in the city built before
12.61940, divided by the most recent count by the United States Bureau of the Census of all
12.7housing units in the city. Housing units includes both occupied and vacant housing units
12.8as defined by the federal census.
12.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
12.102014 and thereafter.

12.11    Sec. 4. Minnesota Statutes 2012, section 477A.011, is amended by adding a
12.12subdivision to read:
12.13    Subd. 30a. Percent of housing built between 1940 and 1970. "Percent of housing
12.14built between 1940 and 1970" is equal to 100 times the most recent count by the United
12.15States Bureau of the Census of all housing units in the city built after 1939 but before
12.161970, divided by the total number of all housing units in the city. Housing units includes
12.17both occupied and vacant housing units as defined by the federal census.
12.18EFFECTIVE DATE.This section is effective for aids payable in calendar year
12.192014 and thereafter.

12.20    Sec. 5. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:
12.21    Subd. 34. City revenue need. (a) For a city with a population equal to or greater
12.22than 2,500 10,000, "city revenue need" is the greater of 285 or 1.15 times the sum of (1)
12.235.0734098 4.59 times the pre-1940 housing percentage; plus (2) 19.141678 times the
12.24population decline percentage 0.622 times the percent of housing built between 1940 and
12.251970; plus (3) 2504.06334 times the road accidents factor 169.415 times the jobs per
12.26capita; plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638
12.27times the household size 307.664.
12.28    (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
12.29"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
12.30housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak
12.31population decline.
12.32    (b) (c) For a city with a population less than 2,500, "city revenue need" is the sum of
12.33(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial
13.1industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4)
13.21.206 times the transformed population; minus (5) 62.772 410 plus 0.367 times the city's
13.3population over 100. The city revenue need under this paragraph shall not exceed 630.
13.4    (c) (d) For a city with a population of at least 2,500 or more and a population in one
13.5of the most recently available five years that was less than 2,500, "city revenue need"
13.6is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its
13.7transition factor; plus (2) its city revenue need calculated under the formula in paragraph
13.8(b) multiplied by the difference between one and its transition factor. For purposes of this
13.9paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that
13.10the city's population estimate has been 2,500 or more. This provision only applies for aids
13.11payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500.
13.12It applies to any city for aids payable in 2009 and thereafter but less than 3,000, the "city
13.13revenue need" equals (1) the transition factor times the city's revenue need calculated in
13.14paragraph (b) plus (2) 630 times the difference between one and the transition factor. For
13.15a city with a population of at least 10,000 but less than 10,500, the "city revenue need"
13.16equals (1) the transition factor times the city's revenue need calculated in paragraph (a)
13.17plus (2) the city's revenue need calculated under the formula in paragraph (b) times the
13.18difference between one and the transition factor. For purposes of this paragraph "transition
13.19factor" is 0.2 percent times the amount that the city's population exceeds the minimum
13.20threshold in either of the first two sentences.
13.21    (d) (e) The city revenue need cannot be less than zero.
13.22    (e) (f) For calendar year 2005 2015 and subsequent years, the city revenue need for
13.23a city, as determined in paragraphs (a) to (d) (e), is multiplied by the ratio of the annual
13.24implicit price deflator for government consumption expenditures and gross investment for
13.25state and local governments as prepared by the United States Department of Commerce,
13.26for the most recently available year to the 2003 2013 implicit price deflator for state
13.27and local government purchases.
13.28EFFECTIVE DATE.This section is effective for aids payable in calendar year
13.292014 and thereafter.

13.30    Sec. 6. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:
13.31    Subd. 42. City jobs base Jobs per capita. (a) "City jobs base" for a city with a
13.32population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of
13.33jobs per capita in the city, and (3) its population. For cities with a population less than
13.345,000, the city jobs base is equal to zero. For a city receiving aid under subdivision 36,
13.35paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of
14.1aid received under that paragraph or $1,000,000. No city's city jobs base may exceed
14.2$4,725,000 under this paragraph.
14.3    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as
14.4determined in paragraph (a), is multiplied by the ratio of the appropriation under section
14.5477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under
14.6that section for aids payable in 2009.
14.7    (c) For purposes of this subdivision, "Jobs per capita in the city" means (1) the
14.8average annual number of employees in the city based on the data from the Quarterly
14.9Census of Employment and Wages, as reported by the Department of Employment and
14.10Economic Development, for the most recent calendar year available as of May 1, 2008
14.11 November 1 of every odd-numbered year, divided by (2) the city's population for the
14.12same calendar year as the employment data. The commissioner of the Department of
14.13Employment and Economic Development shall certify to the city the average annual
14.14number of employees for each city by June 1, 2008 January 15, of every even-numbered
14.15year beginning with January 15, 2014. A city may challenge an estimate under this
14.16paragraph by filing its specific objection, including the names of employers that it feels
14.17may have misreported data, in writing with the commissioner by June 20, 2008 December
14.181 of every odd-numbered year. The commissioner shall make every reasonable effort
14.19to address the specific objection and adjust the data as necessary. The commissioner
14.20shall certify the estimates of the annual employment to the commissioner of revenue by
14.21July 15, 2008 January 15 of all even-numbered years, including any estimates still under
14.22objection. For aids payable in 2014, "jobs per capita" shall be based on the annual number
14.23of employees and population for calendar year 2010 without additional review.
14.24EFFECTIVE DATE.This section is effective for aids payable in calendar year
14.252014 and thereafter.

14.26    Sec. 7. Minnesota Statutes 2012, section 477A.011, is amended by adding a
14.27subdivision to read:
14.28    Subd. 44. Peak population decline. "Peak population decline" is equal to 100
14.29times the difference between one and the ratio of the city's current population, to the
14.30highest city population reported in a federal census from the 1970 census or later. "Peak
14.31population decline" shall not be less than zero.
14.32EFFECTIVE DATE.This section is effective for aids payable in calendar year
14.332014 and thereafter.

15.1    Sec. 8. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:
15.2    Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a
15.3city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference
15.4between its unmet need and its 2013 certified aid and (ii) the aid gap percentage.
15.5    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to
15.6the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase
15.7percentage multiplied by the average of its unmet need for the most recently available two
15.8years formula aid in the previous year and (2) the product of (i) the difference between
15.9its unmet need and its certified aid in the previous year under subdivision 9, and (ii)
15.10the aid gap percentage.
15.11No city may have a formula aid amount less than zero. The need increase aid gap
15.12 percentage must be the same for all cities.
15.13    The applicable need increase aid gap percentage must be calculated by the
15.14Department of Revenue so that the total of the aid under subdivision 9 equals the total
15.15amount available for aid under section 477A.03. Data used in calculating aids to cities
15.16under sections 477A.011 to 477A.013 shall be the most recently available data as of
15.17January 1 in the year in which the aid is calculated except that the data used to compute "net
15.18levy" in subdivision 9 is the data most recently available at the time of the aid computation.
15.19EFFECTIVE DATE.This section is effective for aids payable in calendar year
15.202014 and thereafter.

15.21    Sec. 9. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:
15.22    Subd. 9. City aid distribution. (a) In calendar year 2013 2014 and thereafter, each
15.23city shall receive an aid distribution equal to the sum of (1) the city formula aid under
15.24subdivision 8, and (2) its city aid base aid adjustment under subdivision 13.
15.25    (b) For aids payable in 2013 and 2014 only, the total aid in the previous year for
15.26any city shall mean the amount of aid it was certified to receive for aids payable in 2012
15.27under this section. For aids payable in 2015 and thereafter, the total aid in the previous
15.28year for any city means the amount of aid it was certified to receive under this section in
15.29the previous payable year.
15.30    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
15.31the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
15.32plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
15.33aid for any city with a population of 2,500 or more may not be less than its total aid under
15.34this section in the previous year minus the lesser of $10 multiplied by its population, or ten
15.35percent of its net levy in the year prior to the aid distribution.
16.1    (d) (b) For aids payable in 2014 only, the total aid for a city may not be less than the
16.2amount it was certified to receive in 2013. For aids payable in 2010 2015 and thereafter,
16.3the total aid for a city with a population less than 2,500 must not be less than the amount
16.4it was certified to receive in the previous year minus the lesser of $10 multiplied by its
16.5population, or five percent of its 2003 certified aid amount. For aids payable in 2009 only,
16.6the total aid for a city with a population less than 2,500 must not be less than what it
16.7received under this section in the previous year unless its total aid in calendar year 2008
16.8was aid under section 477A.011, subdivision 36, paragraph (s), in which case its minimum
16.9aid is zero its net levy in the year prior to the aid distribution.
16.10    (e) A city's aid loss under this section may not exceed $300,000 in any year in
16.11which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
16.12greater than the appropriation under that subdivision in the previous year, unless the
16.13city has an adjustment in its city net tax capacity under the process described in section
16.14469.174, subdivision 28.
16.15    (f) If a city's net tax capacity used in calculating aid under this section has decreased
16.16in any year by more than 25 percent from its net tax capacity in the previous year due to
16.17property becoming tax-exempt Indian land, the city's maximum allowed aid increase
16.18under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
16.19year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
16.20resulting from the property becoming tax exempt.
16.21EFFECTIVE DATE.This section is effective for aids payable in calendar year
16.222014 and thereafter.

16.23    Sec. 10. Minnesota Statutes 2012, section 477A.013, is amended by adding a
16.24subdivision to read:
16.25    Subd. 13. Certified aid adjustments. (a) A city that received an aid base increase
16.26under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall
16.27have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids
16.28payable in 2014 through 2018.
16.29(b) A city that received a temporary aid increase under Minnesota Statutes 2012,
16.30section 477A.011, subdivision 36, paragraph (m), (v), or (w), shall have its total aid under
16.31subdivision 9 decreased by the amount of its aid base increase under those paragraphs in
16.32calendar year 2013.

16.33    Sec. 11. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:
17.1    Subd. 2a. Cities. For aids payable in 2013 2014 and thereafter, the total aid paid
17.2under section 477A.013, subdivision 9, is $426,438,012 $486,438,012, multiplied by the
17.3inflation adjustment under subdivision 6.
17.4EFFECTIVE DATE.This section is effective for aids payable in calendar year
17.52014 and thereafter.

17.6    Sec. 12. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
17.7    Subd. 2b. Counties. (a) For aids payable in 2013 2014 and thereafter, the total aid
17.8payable under section 477A.0124, subdivision 3, is $80,795,000 $94,795,000. Each
17.9calendar year, $500,000 of this appropriation shall be retained by the commissioner
17.10of revenue to make reimbursements to the commissioner of management and budget
17.11for payments made under section 611.27. For calendar year 2004, the amount shall
17.12be in addition to the payments authorized under section 477A.0124, subdivision 1.
17.13For calendar year 2005 and subsequent years, the amount shall be deducted from the
17.14appropriation under this paragraph. The reimbursements shall be to defray the additional
17.15costs associated with court-ordered counsel under section 611.27. Any retained amounts
17.16not used for reimbursement in a year shall be included in the next distribution of county
17.17need aid that is certified to the county auditors for the purpose of property tax reduction
17.18for the next taxes payable year.
17.19    (b) For aids payable in 2013 2014 and thereafter, the total aid under section
17.20477A.0124, subdivision 4 , is $84,909,575 $98,909,575. The commissioner of management
17.21and budget shall bill the commissioner of revenue for the cost of preparation of local impact
17.22notes as required by section 3.987, not to exceed $207,000 in each fiscal year 2004 and
17.23thereafter. The commissioner of education shall bill the commissioner of revenue for the
17.24cost of preparation of local impact notes for school districts as required by section 3.987,
17.25not to exceed $7,000 in each fiscal year 2004 and thereafter. The commissioner of revenue
17.26shall deduct the amounts billed under this paragraph from the appropriation under this
17.27paragraph. The amounts deducted are appropriated to the commissioner of management
17.28and budget and the commissioner of education for the preparation of local impact notes.
17.29EFFECTIVE DATE.This section is effective for aid payable in 2014 and thereafter.

17.30    Sec. 13. Minnesota Statutes 2012, section 477A.03, is amended by adding a
17.31subdivision to read:
17.32    Subd. 6. Inflation adjustment. In 2015 and thereafter, the amount paid under
17.33subdivision 2a shall be increased by an amount equal to one plus the sum of (1) the
18.1percentage increase in the implicit price deflator for government expenditures and gross
18.2investment for state and local government purchases as prepared by the United States
18.3Department of Commerce, for the 12-month period ending March 31 of the previous
18.4calendar year, and (2) the percentage increase in total city population for the most recently
18.5available years as of January 15 of the current year. The percentage increase in this
18.6subdivision shall not be less than 2.5 percent or greater than five percent.
18.7EFFECTIVE DATE.This section is effective for aids payable in calendar year
18.82014 and thereafter.

18.9    Sec. 14. REPEALER.
18.10(a) Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33,
18.1136, 39, 40, 41, and 42; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, are
18.12repealed.
18.13(b) Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
18.14154, article 1, section 4, is repealed.
18.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
18.162014 and thereafter.


18.19    Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to
18.20read:
18.21    Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall
18.22evaluate performance, financial, and activity information for each local water management
18.23entity. The board shall evaluate the entities' progress in accomplishing their adopted plans
18.24on a regular basis as determined by the board based on budget and operations of the local
18.25water management entity, but not less than once every five ten years. The board shall
18.26maintain a summary of local water management entity performance on the board's Web site.
18.27Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
18.28of local water management entity performance to the chairs of the house of representatives
18.29and senate committees having jurisdiction over environment and natural resources policy.

18.30    Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:
18.31103B.335 TAX LEVY AUTHORITY.
19.1    Subdivision 1. Local water planning and management. The governing body of
19.2any county, municipality, or township may levy a tax in an amount required to implement
19.3sections 103B.301 to 103B.355 or a comprehensive watershed management plan as
19.4defined in section 103B.3363.
19.5    Subd. 2. Priority programs; conservation and watershed districts. A county
19.6may levy amounts necessary to pay the reasonable increased costs to soil and water
19.7conservation districts and watershed districts of administering and implementing priority
19.8programs identified in an approved and adopted plan or a comprehensive watershed
19.9management plan as defined in section 103B.3363.

19.10    Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:
19.11    Subd. 5. Financial assistance. A base grant may be awarded to a county that
19.12provides a match utilizing a water implementation tax or other local source. A water
19.13implementation tax that a county intends to use as a match to the base grant must be
19.14levied at a rate sufficient to generate a minimum amount determined by the board.
19.15The board may award performance-based grants to local units of government that are
19.16responsible for implementing elements of applicable portions of watershed management
19.17plans, comprehensive plans, local water management plans, or comprehensive watershed
19.18management plans, developed or amended, adopted and approved, according to chapter
19.19103B, 103C, or 103D. Upon request by a local government unit, the board may also
19.20award performance-based grants to local units of government to carry out TMDL
19.21implementation plans as provided in chapter 114D, if the TMDL implementation plan has
19.22been incorporated into the local water management plan according to the procedures for
19.23approving comprehensive plans, watershed management plans, local water management
19.24plans, or comprehensive watershed management plans under chapter 103B, 103C, or
19.25103D, or if the TMDL implementation plan has undergone a public review process.
19.26Notwithstanding section 16A.41, the board may award performance-based grants on an
19.27advanced basis. The fee authorized in section 40A.152 may be used as a local match
19.28or as a supplement to state funding to accomplish implementation of comprehensive
19.29plans, watershed management plans, local water management plans, or comprehensive
19.30watershed management plans under chapter 103B, 103C, or 103D.

19.31    Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:
19.32    Subd. 4. Cost-sharing funds. (a) The state board shall allocate at least 70 percent
19.33of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality
20.1problems or water quantity problems due to altered hydrology. The areas must be selected
20.2based on the statewide priorities established by the state board.
20.3(b) The allocated funds must be used for conservation practices for high priority
20.4problems identified in the comprehensive and annual work plans of the districts, for
20.5the technical assistance portion of the grant funds to leverage federal or other nonstate
20.6funds, or to address high-priority needs identified in local water management plans or
20.7comprehensive watershed management plans.
20.8(b) The remaining cost-sharing funds may be allocated to districts as follows:
20.9(1) for technical and administrative assistance, not more than 20 percent of the
20.10funds; and
20.11(2) for conservation practices for lower priority erosion, sedimentation, or water
20.12quality problems.

20.13    Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:
20.14    Subdivision 1. Authority. Each statutory or home rule charter city, town, or
20.15county that has planning and zoning authority under sections 366.10 to 366.19, 394.21
20.16to 394.37, or 462.351 to 462.365 is encouraged to adopt a soil loss ordinance. The soil
20.17loss ordinance must use the soil loss tolerance for each soil series described in the United
20.18States Soil Natural Resources Conservation Service Field Office Technical Guide, or
20.19another method approved by the Board of Water and Soil Resources, to determine the
20.20soil loss limits, but the soil loss limits must be attainable by the best practicable soil
20.21conservation practice. Ordinances adopted by local governments within the metropolitan
20.22area defined in section 473.121 must be consistent with local water management plans
20.23adopted under section 103B.235 a comprehensive plan, local water management plan, or
20.24watershed management plan developed or amended, adopted and approved, according
20.25to chapter 103B, 103C, or 103D.

20.26    Sec. 6. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
20.27to read:
20.28    Subd. 98. Certain property owned by an Indian tribe. (a) Property is exempt that:
20.29(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable
20.30in 2013;
20.31(2) is located in a city of the first class with a population greater than 300,000 as of
20.32the 2010 federal census;
20.33(3) is owned and occupied directly or indirectly by a federally recognized Indian
20.34tribe within the state of Minnesota; and
21.1(4) is used exclusively for tribal purposes or institutions of public charity as defined
21.2in subdivision 7.
21.3(b) For purposes of this subdivision, a "tribal purpose" is a public purpose as defined
21.4in subdivision 8 and includes noncommercial tribal government activities. Property
21.5that qualifies for the exemption under this subdivision is limited to no more than two
21.6contiguous parcels and structures that do not exceed in the aggregate 20,000 square feet.
21.7Property acquired for single-family housing, market-rate apartments, agriculture, or
21.8forestry does not qualify for this exemption. The exemption created by this subdivision
21.9expires with taxes payable in 2024.
21.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.

21.11    Sec. 7. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
21.12to read:
21.13    Subd. 99. Public entertainment facility; property tax exemption; special
21.14assessment. Any real or personal property acquired, owned, leased, controlled, used,
21.15or occupied by a first class city for the primary purpose of providing an arena for a
21.16professional basketball team is declared to be acquired, owned, leased, controlled, used,
21.17and occupied for public, governmental, and municipal purposes, and is exempt from ad
21.18valorem taxation by the state or any political subdivision of the state, provided that the
21.19properties are subject to special assessments levied by a political subdivision for a local
21.20improvement in amounts proportionate to and not exceeding the special benefit received
21.21by the properties from the improvement. In determining the special benefit received by
21.22the properties, no possible use of any of the properties in any manner different from their
21.23intended use for providing a professional basketball arena at the time may be considered.
21.24Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property subject
21.25to a lease or use agreement between the city and another person for uses related to the
21.26purposes of the operation of the arena is exempt from taxation regardless of the length of
21.27the lease or use agreement. This section, insofar as it provides an exemption or special
21.28treatment, does not apply to any real property that is leased for residential, business, or
21.29commercial development, or to a restaurant that is open for general business more than
21.30200 days a year, or for other purposes different from those necessary to the provision
21.31and operation of the arena.
21.32EFFECTIVE DATE.This section is effective beginning with assessment year 2013.

22.1    Sec. 8. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision
22.2to read:
22.3    Subd. 100. Public entertainment facility; property tax exemption; special
22.4assessment. Any real or personal property acquired, owned, leased, controlled, used,
22.5or occupied by a first class city for the primary purpose of providing a ball park for a
22.6minor league baseball team is declared to be acquired, owned, leased, controlled, used,
22.7and occupied for public, governmental, and municipal purposes, and is exempt from ad
22.8valorem taxation by the state or any political subdivision of the state, provided that the
22.9properties are subject to special assessments levied by a political subdivision for a local
22.10improvement in amounts proportionate to and not exceeding the special benefit received
22.11by the properties from the improvement. In determining the special benefit received by
22.12the properties, no possible use of any of the properties in any manner different from
22.13their intended use for providing a minor league ballpark at the time may be considered.
22.14Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property
22.15subject to a lease or use agreement between the city and another person for uses related to
22.16the purposes of the operation of the ballpark and related parking facilities is exempt from
22.17taxation regardless of the length of the lease or use agreement. This section, insofar as it
22.18provides an exemption or special treatment, does not apply to any real property that is
22.19leased for residential, business, or commercial development or other purposes different
22.20from those necessary to the provision and operation of the ball park.
22.21EFFECTIVE DATE.This section is effective beginning with assessment year 2013.

22.22    Sec. 9. Minnesota Statutes 2012, section 273.11, is amended by adding a subdivision to
22.23read:
22.24    Subd. 24. Valuation limit for class 4d property. Notwithstanding the provisions of
22.25subdivision 1, the taxable value of any property classified as class 4d under section 273.13,
22.26subdivision 25, is limited as provided under this section. For assessment year 2013, the
22.27value may not exceed $100,000 times the number of dwelling units. For subsequent years,
22.28the limit is adjusted each year by the average statewide change in estimated market value
22.29of property classified as class 4a and 4d under section 273.13, subdivision 25, for the
22.30previous assessment year, excluding valuation change due to new construction, rounded to
22.31the nearest $1,000. Beginning with assessment year 2014, the commissioner of revenue
22.32must certify the limit for each assessment year by November 1 of the previous year.
22.33EFFECTIVE DATE.This section is effective beginning with assessment year 2013.

23.1    Sec. 10. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
23.2    Subdivision 1. Due dates; penalties. Except as provided in subdivision subdivisions
23.3 3 or 4 to 5, on May 16 or 21 days after the postmark date on the envelope containing the
23.4property tax statement, whichever is later, a penalty accrues and thereafter is charged upon
23.5all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
23.6penalty is at a rate of two percent on homestead property until May 31 and four percent on
23.7June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and
23.8eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days
23.9after the postmark date on the envelope containing the property tax statements, whichever
23.10is later, on commercial use real property used for seasonal residential recreational purposes
23.11and classified as class 1c or 4c, and on other commercial use real property classified as
23.12class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
23.13class 3a property is earned during the months of May, June, July, and August. In order for
23.14the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
23.15or 21 days after the postmark date on the envelope containing the property tax statement,
23.16whichever is later, without penalty, the owner of the property must attach an affidavit
23.17to the payment attesting to compliance with the income provision of this subdivision.
23.18Thereafter, for both homestead and nonhomestead property, on the first day of each month
23.19beginning July 1, up to and including October 1 following, an additional penalty of one
23.20percent for each month accrues and is charged on all such unpaid taxes provided that if the
23.21due date was extended beyond May 15 as the result of any delay in mailing property tax
23.22statements no additional penalty shall accrue if the tax is paid by the extended due date. If
23.23the tax is not paid by the extended due date, then all penalties that would have accrued if
23.24the due date had been May 15 shall be charged. When the taxes against any tract or lot
23.25exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
23.26date on the envelope containing the property tax statement, whichever is later; and, if so
23.27paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
23.2816 following, without penalty; but, if not so paid, then a penalty of two percent accrues
23.29thereon for homestead property and a penalty of four percent on nonhomestead property.
23.30Thereafter, for homestead property, on the first day of November an additional penalty of
23.31four percent accrues and on the first day of December following, an additional penalty of
23.32two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
23.33property, on the first day of November and December following, an additional penalty of
23.34four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
23.35such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
23.36containing the property tax statement, whichever is later, the same may be paid at any time
24.1prior to October 16, with accrued penalties to the date of payment added, and thereupon
24.2no penalty attaches to the remaining one-half until October 16 following.
24.3    This section applies to payment of personal property taxes assessed against
24.4improvements to leased property, except as provided by section 277.01, subdivision 3.
24.5    A county may provide by resolution that in the case of a property owner that has
24.6multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
24.7installments as provided in this subdivision.
24.8    The county treasurer may accept payments of more or less than the exact amount of
24.9a tax installment due. Payments must be applied first to the oldest installment that is due
24.10but which has not been fully paid. If the accepted payment is less than the amount due,
24.11payments must be applied first to the penalty accrued for the year or the installment being
24.12paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
24.13payment required as a condition for filing an appeal under section 278.03 or any other law,
24.14nor does it affect the order of payment of delinquent taxes under section 280.39.

24.15    Sec. 11. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision
24.16to read:
24.17    Subd. 5. Federal active service exception. In the case of a homestead property
24.18owned by an individual who is on federal active service, as defined in section 190.05,
24.19subdivision 5c, as a member of the National Guard or a reserve component, a six-month
24.20grace period is granted for complying with the due dates imposed by subdivision 1. During
24.21this period, no late fees or penalties shall accrue against the property. The due date for
24.22property taxes owed under this chapter for an individual covered by this subdivision shall
24.23be November 16 for taxes due on May 16, and April 16 of the following year for taxes due
24.24on October 16. A taxpayer making a payment under this subdivision must accompany
24.25the payment with a signed copy of the taxpayer's orders or form DD214 showing the
24.26dates of active service which clearly indicate that the taxpayer was in active service as a
24.27member of the National Guard or a reserve component on the date the payment was due.
24.28This grace period applies to all homestead property owned by individuals on federal active
24.29service, as herein defined, for all of that property's due dates which fall on a day that is
24.30included in the taxpayer's federal active service.

24.31    Sec. 12. Minnesota Statutes 2012, section 279.02, is amended to read:
24.32279.02 DUTIES OF COUNTY AUDITOR AND TREASURER.
24.33    Subdivision 1. Delinquent property; rates. On the first business day in January, of
24.34each year, the county treasurer shall return the tax lists on hand to the county auditor, who
25.1shall compare the same with the statements receipted for by the treasurer on file in the
25.2auditor's office and each tract or lot of real property against which the taxes, or any part
25.3thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty
25.4of two percent on the amount of the original tax remaining unpaid shall immediately
25.5accrue and thereafter be charged upon all such delinquent taxes; and any auditor who
25.6shall make out and deliver any statement of delinquent taxes without including therein
25.7the penalties imposed by law, and any treasurer who shall receive payment of such taxes
25.8without including in such payment all items as shown on the auditor's statement, shall be
25.9liable to the county for the amounts of any items omitted.
25.10    Subd. 2. Federal active service exception. Notwithstanding subdivision 1, a
25.11homestead property owned by an individual who is on federal active service, as defined
25.12in section 190.05, subdivision 5c, as a member of the National Guard or a reserve
25.13component, shall not be deemed delinquent under this section if the due dates imposed
25.14under section 279.01 fall on a day in which the individual was on federal active service.

25.15    Sec. 13. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision
25.16to read:
25.17    Subd. 10. Hennepin and Ramsey Counties. For properties located in Hennepin
25.18and Ramsey Counties, the county may impose an additional mortgage registry tax as
25.19defined in sections 383A.80 and 383B.80.
25.20EFFECTIVE DATE.This section is effective the day following final enactment.

25.21    Sec. 14. [287.40] HENNEPIN AND RAMSEY COUNTIES.
25.22For properties located in Hennepin and Ramsey Counties, the county may impose an
25.23additional deed tax as defined in sections 383A.80 and 383B.80.
25.24EFFECTIVE DATE.This section is effective the day following final enactment.

25.25    Sec. 15. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
25.26article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
25.27154, article 2, section 30, is amended to read:
25.28    Sec. 3. TAX; PAYMENT OF EXPENSES.
25.29    (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
25.30must not be levied at a rate that exceeds the amount authorized to be levied under that
25.31section. The proceeds of the tax may be used for all purposes of the hospital district,
25.32except as provided in paragraph (b).
26.1    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
26.2solely by the Cook ambulance service and the Orr ambulance service for the purpose of
26.3capital expenditures as it relates to:
26.4(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
26.5service and not;
26.6(2) attached and portable equipment for use in and for the ambulances; and
26.7(3) parts and replacement parts for maintenance and repair of the ambulances.
26.8The money may not be used for administrative, operation, or salary expenses.
26.9    (c) The part of the levy referred to in paragraph (b) must be administered by the
26.10Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
26.11service board and the city of Orr to be held in trust until funding for a new ambulance is
26.12needed by either the Cook ambulance service or the Orr ambulance service used for the
26.13purposes in paragraph (b).

26.14    Sec. 16. Laws 1999, chapter 243, article 6, section 11, is amended to read:
26.15    Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
26.16    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the
26.17Carlton county board of commissioners may annually levy in and for the unorganized
26.18township territory of Sawyer an amount up to $1,000 annually for cemetery purposes,
26.19beginning with taxes payable in 2000 and ending with taxes payable in 2009.
26.20    Subd. 2. Effective date. This section is effective June 1, 1999, without local
26.21approval.
26.22EFFECTIVE DATE; LOCAL APPROVAL.This section applies to taxes
26.23payable in 2014 and thereafter, and is effective the day after the Carlton county board
26.24of commissioners and its chief clerical officer timely complete their compliance with
26.25Minnesota Statutes, section 645.021, subdivisions 2 and 3.

26.26    Sec. 17. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to
26.27read:
26.28EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable in
26.292009, and is repealed effective for taxes levied in 2013 2018, payable in 2014 2019,
26.30and thereafter.
26.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2014.

27.1    Sec. 18. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
27.2read:
27.3EFFECTIVE DATE.This section is effective for assessment years year 2010 and
27.42011, for taxes payable in 2011 and 2012 thereafter.
27.5EFFECTIVE DATE.This section is effective for assessment year 2012 and
27.6thereafter.

27.7    Sec. 19. MINNEAPOLIS AND ST. PAUL; ENTERTAINMENT FACILITIES
27.8COORDINATION.
27.9(a) On or before January 1, 2015, the cities of St. Paul and Minneapolis shall establish
27.10a joint governing structure to coordinate and provide for joint marketing, promotion, and
27.11scheduling of conventions and events at the Target Center and Xcel Energy Center.
27.12(b) On or before February 1, 2014, the cities of St. Paul and Minneapolis, and
27.13representatives from the primary professional sports team tenant of each facility, shall also
27.14study and report to the legislature on creating a joint governing structure to provide for
27.15joint administration, financing, and operations of the facilities and the possible effects of
27.16joint governance on the finances of each facility and each city. The study under this
27.17paragraph must:
27.18(1) examine the current finances of each facility, including past and projected costs
27.19and revenues; projected capital improvements; and the current and projected impact
27.20of each facility on the city's general fund;
27.21(2) determine the impacts of joint governance on the future finances of each facility
27.22and city;
27.23(3) examine the inclusion of other entertainment venues in the joint governance, and
27.24the impact the inclusion of those facilities would have on all the facilities within the joint
27.25governing structure and the cities in which they are located; and
27.26(4) consider the amount of city, regional, and state funding, if any, that would be
27.27required to fund and operate the facilities under a joint governing structure.
27.28(c) In considering joint governing structures under paragraph (b), the study shall
27.29specifically consider the feasibility of joining the Target Center and the Xcel Energy
27.30Center, and possibly other venues, to the Minnesota Sports Facilities Authority under
27.31Minnesota Statutes, section 473J.08.
27.32(d) Representatives of the cities and the primary professional sports team tenants
27.33of each facility shall meet within 30 days of the effective date of this section to begin
27.34implementation of this section.
28.1EFFECTIVE DATE.This section is effective the day following final enactment
28.2upon compliance with the provisions of Minnesota Statutes, section 645.021, subdivisions
28.32 and 3, by the governing bodies of the cities of St. Paul and Minneapolis and their chief
28.4clerical officers, and provided that, notwithstanding the time limits under Minnesota
28.5Statutes, section 645.021, subdivision 3, the certificates of approval are filed with the
28.6secretary of state within 30 days after enactment of this act.

28.7    Sec. 20. ISANTI AREA JOINT OPERATING FIRE DISTRICT.
28.8    Subdivision 1. Agreement. The city of Isanti together with one or more of the towns
28.9of Athens, Stanford, Bradford, Isanti, and Oxford may, by action of their city council and
28.10town boards, establish the Isanti Area Joint Operating Fire District. The district shall
28.11provide fire protection services throughout its territory and may exercise all the powers of
28.12the city and towns that relate to fire protection anywhere within its territory. Any other
28.13contiguous town or statutory city may join the district with the agreement of the cities
28.14and towns that comprise the district at the time of its application to join by majority vote
28.15of the district board. Action to join the district may be taken by the city council or town
28.16board of the city or town.
28.17    Subd. 2. Membership. The district board shall consist of one elected member
28.18appointed by the city council or town board of each city or town in the district. One
28.19additional member shall also be appointed by the Isanti Fire District Board, which must be
28.20the chief of the Isanti Fire District or the chief's designee. Each member appointed by the
28.21city council or town board has individual voting authority. The chief of the Isanti Fire
28.22District shall provide advice only and does not have individual voting authority.
28.23    Subd. 3. Officers. The fire district shall elect from among its voting members a
28.24chair and vice-chair. The chair shall act as the presiding officer at all fire district meetings
28.25unless the chair is not present, in which case the vice-chair shall preside.
28.26    Subd. 4. Terms. Members shall serve one-year terms ending the first Monday in
28.27January. Vacancies on the board must be filled in the same manner as the appointment
28.28of its original members.
28.29    Subd. 5. Meetings. The fire district shall hold monthly meetings at a time and
28.30location to be set by the fire district, with notice provided under Minnesota Statutes,
28.31section 13D.04. The district may, by resolution, determine to hold more or fewer meetings,
28.32or to change the location or time of meetings.
29.1    Subd. 6. Tax. The fire district may impose a property tax on taxable property
29.2located within the district in an amount sufficient to discharge its operating expenses and
29.3debt payable in each year. The tax must be disregarded in the calculation of any levies or
29.4limits on levies provided by Minnesota Statutes, chapter 275, or any other law. A city or
29.5town that joins the district may not incur expenses or debt for fire protection services for
29.6territory included in the district.
29.7    Subd. 7. Withdrawal. Upon two years' notice, a city or town may withdraw from
29.8the fire district. Its territory shall remain subject to taxation for debt incurred prior to
29.9its withdrawal.

29.10    Sec. 21. MORATORIUM ON CHANGES IN ASSESSMENT PRACTICE.
29.11(a) An assessor may not deviate from current practices or policies used generally in
29.12assessing or determining the taxable status of property used in the production of biofuels,
29.13wine, beer, distilled beverages, or dairy products.
29.14(b) An assessor may not change the taxable status of any existing property involved
29.15in the industrial processes identified in paragraph (a), unless the change is made as a result
29.16of a change in use of the property, or to correct an error. For currently taxable properties,
29.17the assessor may change the estimated market value of the property.
29.18EFFECTIVE DATE.This section is effective for assessment year 2013 only.

29.19    Sec. 22. REPEALER.
29.20(a) Minnesota Statutes 2012, sections 428A.101; and 428A.21, are repealed.
29.21(b) Minnesota Statutes 2012, sections 383A.80, subdivision 4; and 383B.80,
29.22subdivision 4, are repealed.
29.23EFFECTIVE DATE.This section is effective the day following final enactment,
29.24and paragraph (b) reinstates the authority for Hennepin and Ramsey Counties to impose
29.25the additional mortgage registry and deed tax effective for deeds and mortgages executed
29.26on or after July 1, 2013.


29.29    Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:
29.30    Subd. 5. Exception; parking facilities. Notwithstanding section 469.068, the
29.31Bloomington port authority need not require competitive bidding with respect to a
29.32structured parking facility or other public improvements constructed in conjunction with,
30.1and directly above or below, or adjacent and integrally related to, a development and
30.2financed with the proceeds of tax increment or, revenue bonds, or other funds of the
30.3port authority and the city of Bloomington.
30.4EFFECTIVE DATE.This section is effective upon compliance of the governing
30.5body of the city of Bloomington with the requirements of Minnesota Statutes, section
30.6645.021, subdivision 3.

30.7    Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision
30.8to read:
30.9    Subd. 19. Additional border city allocation; 2013. (a) In addition to the tax
30.10reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000
30.11for tax reductions to border city enterprise zones in cities located on the western border
30.12of the state. The commissioner shall allocate this amount among cities on a per capita
30.13basis. Allocations made under this subdivision may be used for tax reductions under
30.14section 469.171, or for other offsets of taxes imposed on or remitted by businesses located
30.15in the enterprise zone, but only if the municipality determines that the granting of the tax
30.16reduction or offset is necessary to retain a business within or attract a business to the zone.
30.17The city alternatively may elect to use any portion of the allocation under this paragraph
30.18for tax reductions under section 469.1732 or 469.1734.
30.19(b) The commissioner shall allocate $750,000 for tax reductions under section
30.20469.1732 or 469.1734 to cities with border city enterprise zones located on the western
30.21border of the state. The commissioner shall allocate this amount among the cities on a per
30.22capita basis. The city alternatively may elect to use any portion of the allocation provided
30.23in this paragraph for tax reductions under section 469.171.
30.24EFFECTIVE DATE.This section is effective July 1, 2013.

30.25    Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
30.26    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
30.27from an economic development district may not be used to provide improvements, loans,
30.28subsidies, grants, interest rate subsidies, or assistance in any form to developments
30.29consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
30.30facilities (determined on the basis of square footage) are used for a purpose other than:
30.31(1) the manufacturing or production of tangible personal property, including
30.32processing resulting in the change in condition of the property;
31.1(2) warehousing, storage, and distribution of tangible personal property, excluding
31.2retail sales;
31.3(3) research and development related to the activities listed in clause (1) or (2);
31.4(4) telemarketing if that activity is the exclusive use of the property;
31.5(5) tourism facilities; or
31.6(6) qualified border retail facilities; or
31.7(7) space necessary for and related to the activities listed in clauses (1) to (6) (5).
31.8(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
31.9increment from an economic development district may be used to provide improvements,
31.10loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
31.11square feet of any separately owned commercial facility located within the municipal
31.12jurisdiction of a small city, if the revenues derived from increments are spent only to
31.13assist the facility directly or for administrative expenses, the assistance is necessary to
31.14develop the facility, and all of the increments, except those for administrative expenses,
31.15are spent only for activities within the district.
31.16(c) A city is a small city for purposes of this subdivision if the city was a small city
31.17in the year in which the request for certification was made and applies for the rest of
31.18the duration of the district, regardless of whether the city qualifies or ceases to qualify
31.19as a small city.
31.20(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
31.21of section 469.174, subdivision 12, tax increments from an economic development district
31.22may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
31.23assistance in any form to developments consisting of buildings and ancillary facilities, if
31.24all the following conditions are met:
31.25(1) the municipality finds that the project will create or retain jobs in this state,
31.26including construction jobs, and that construction of the project would not have
31.27commenced before July 1, 2012, without the authority providing assistance under the
31.28provisions of this paragraph;
31.29(2) construction of the project begins no later than July 1, 2012;
31.30(3) the request for certification of the district is made no later than June 30, 2012; and
31.31(4) for development of housing under this paragraph, the construction must begin
31.32before January 1, 2012.
31.33The provisions of this paragraph may not be used to assist housing that is developed
31.34to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law,
31.35if construction of the project begins later than July 1, 2011.
32.1EFFECTIVE DATE.This section is effective for districts for which the request for
32.2certification was made after June 30, 2012.

32.3    Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
32.4    Subd. 4g. General government use prohibited. (a) Tax increments may not be
32.5used to circumvent existing levy limit law.
32.6(b) No tax increment from any district may be used for the acquisition, construction,
32.7renovation, operation, or maintenance of a building to be used primarily and regularly
32.8for conducting the business of a municipality, county, school district, or any other local
32.9unit of government or the state or federal government. This provision does not prohibit
32.10the use of revenues derived from tax increments for the construction or renovation of
32.11a parking structure.
32.12(c)(1) Tax increments may not be used to pay for the cost of public improvements,
32.13equipment, or other items, if:
32.14(i) the improvements, equipment, or other items are located outside of the area of the
32.15tax increment financing district from which the increments were collected; and
32.16(ii) the improvements, equipment, or items that (A) primarily serve a decorative or
32.17aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than
32.18100 percent as a result of the selection of materials, design, or type as compared with more
32.19commonly used materials, designs, or types for similar improvements, equipment, or items.
32.20(2) The provisions of this paragraph do not apply to expenditures related to the
32.21rehabilitation of historic structures that are:
32.22(i) individually listed on the National Register of Historic Places; or
32.23(ii) a contributing element to a historic district listed on the National Register
32.24of Historic Places.
32.25EFFECTIVE DATE.This section is effective the day following final enactment for
32.26all tax increment financing districts, regardless of when the request for certification was
32.27made, but applies only to amounts spent after final enactment.

32.28    Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:
32.29    Subd. 6. Action required. (a) If, after four years from the date of certification of
32.30the original net tax capacity of the tax increment financing district pursuant to section
32.31469.177 , no demolition, rehabilitation, or renovation of property or other site preparation,
32.32including qualified improvement of a street adjacent to a parcel but not installation
32.33of utility service including sewer or water systems, has been commenced on a parcel
32.34located within a tax increment financing district by the authority or by the owner of the
33.1parcel in accordance with the tax increment financing plan, no additional tax increment
33.2may be taken from that parcel, and the original net tax capacity of that parcel shall be
33.3excluded from the original net tax capacity of the tax increment financing district. If the
33.4authority or the owner of the parcel subsequently commences demolition, rehabilitation,
33.5or renovation or other site preparation on that parcel including qualified improvement of
33.6a street adjacent to that parcel, in accordance with the tax increment financing plan, the
33.7authority shall certify to the county auditor that the activity has commenced, and the
33.8county auditor shall certify the net tax capacity thereof as most recently certified by the
33.9commissioner of revenue and add it to the original net tax capacity of the tax increment
33.10financing district. The county auditor must enforce the provisions of this subdivision. The
33.11authority must submit to the county auditor evidence that the required activity has taken
33.12place for each parcel in the district. The evidence for a parcel must be submitted by
33.13February 1 of the fifth year following the year in which the parcel was certified as included
33.14in the district. For purposes of this subdivision, qualified improvements of a street are
33.15limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
33.16substantial reconstruction or rebuilding of an existing street.
33.17(b) For districts which were certified on or after January 1, 2005, and before April
33.1820, 2009, the four-year period under paragraph (a) is increased to six years deemed to end
33.19on December 31, 2016.
33.20EFFECTIVE DATE.This section is effective the day following final enactment
33.21and applies to districts certified on or after January 1, 2006, and before April 20, 2009.

33.22    Sec. 6. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision
33.23to read:
33.24    Subd. 1d. Original net tax capacity adjustment; homestead market value
33.25exclusion. (a) Upon approval by the municipality, by resolution, the authority may elect
33.26to reduce the net tax capacity of a qualified district by the amount of the tax capacity
33.27attributable to the market value exclusion under section 273.13, subdivision 35. The
33.28amount of the reduction may not reduce the original net tax capacity below zero.
33.29(b) For purposes of this subdivision, a qualified district means a tax increment
33.30financing district that satisfies the following conditions:
33.31(1) for taxes payable in 2011, the authority received a homestead market value credit
33.32reimbursement under section 273.1384 for the district of $10,000 or more;
33.33(2) for taxes payable in 2013, the reduction in captured tax capacity resulting from
33.34the market value exclusion for the district was equal to or greater than 1.75 percent of the
33.35district's captured tax capacity; and
34.1(3) either (i) the authority is permitted to expend increments on activities under the
34.2provisions of section 469.1763, subdivision 3, or an equivalent provision of special law
34.3on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012
34.4exceeded the amount of debt service payments due during calendar year 2012 on bonds
34.5issued under section 469.178 to which the district's increments are pledged.
34.6The calculation of the amount under clause (2) must reflect any adjustments to original
34.7net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead
34.8market value exclusion.
34.9(c) The authority must notify the county auditor of its election under this section no
34.10later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for
34.11taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning
34.12for taxes payable in 2015.
34.13EFFECTIVE DATE.This section is effective the day following final enactment
34.14and applies to all tax increment financing districts regardless of when the request for
34.15certification was made.

34.16    Sec. 7. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision
34.17to read:
34.18    Subd. 3c. Mall of America. (a) When computing the net tax capacity under section
34.19473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax
34.20Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington.
34.21(b) Notwithstanding the provisions of subdivision 2, paragraph (a), the
34.22commercial-industrial contribution percentage for the city of Bloomington is the
34.23contribution net tax capacity divided by the total net tax capacity of commercial-industrial
34.24property in the city, excluding any commercial-industrial property that is captured tax
34.25capacity of Tax Increment Financing Districts No. 1-C and No. 1-G.
34.26(c) The property taxes to be paid on commercial-industrial tax capacity that is
34.27included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and
34.28No. 1-G in the city of Bloomington must be determined as described in subdivision 6,
34.29except that the portion of the tax that is based on the areawide tax rate is to be treated
34.30as tax increment under section 469.176.
34.31(d) The provisions of this subdivision take effect only if the clerk of the city of
34.32Bloomington certifies to the Hennepin County auditor that the city has entered into a
34.33binding written agreement with the Metropolitan Council to repair and restore, or to
34.34replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.
34.35(e) This subdivision expires on the earliest of the following dates:
35.1(1) when the tax increment financing districts have been decertified in 2024 or 2034,
35.2as provided by section 10, subdivision 2 or 4; or
35.3(2) on January 1, 2014, if the city clerk fails to make the certification provided in
35.4paragraph (d).
35.5EFFECTIVE DATE.This section is effective beginning for property taxes payable
35.6in 2014.

35.7    Sec. 8. Laws 2008, chapter 366, article 5, section 26, is amended to read:
35.8    Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR
35.9RULE.
35.10    (a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
35.11activities must be undertaken within a five-year period from the date of certification of
35.12a tax increment financing district, are increased to a ten-year 15-year period for the
35.13Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
35.14Bloomington Central Station.
35.15(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any
35.16other law to the contrary, the city of Bloomington and its port authority may extend the
35.17duration limits of the district for a period through December 31, 2039.
35.18(c) Effective for taxes payable in 2014, tax increment for the district must be
35.19computed using the current local tax rate, notwithstanding the provisions of Minnesota
35.20Statutes, section 469.177, subdivision 1a.
35.21EFFECTIVE DATE.Paragraphs (a) and (c) are effective upon compliance by
35.22the governing body of the city of Bloomington with the requirements of Minnesota
35.23Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by
35.24the governing bodies of the city of Bloomington, Hennepin County, and Independent
35.25School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782,
35.26subdivision 2, and 645.021, subdivision 3.

35.27    Sec. 9. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
35.28chapter 88, article 5, section 11, is amended to read:
35.29    Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY PARCELS
35.30DEEMED OCCUPIED.
35.31    (a) The provisions of this section apply to redevelopment tax increment financing
35.32districts created by the Housing and Redevelopment Authority in and for the city of
35.33Oakdale in the areas comprised of the parcels with the following parcel identification
36.1numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
36.23102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
36.33102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2)
36.42902921330001 and 2902921330005.
36.5    (b) For a district subject to this section, the Housing and Redevelopment Authority
36.6may, when requesting certification of the original tax capacity of the district under
36.7Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district
36.8be certified as the tax capacity of the land.
36.9    (c) The authority to request certification of a district under this section expires on
36.10July 1, 2013.
36.11    (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056,
36.123102921320057, 3102921320061, and 3102921330004 are deemed to meet the
36.13requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
36.14notwithstanding any contrary provisions of that paragraph, if the following conditions
36.15are met:
36.16    (1) a building located on any part of each of the specified parcels was demolished after
36.17the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution
36.18under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
36.19    (2) the building was removed either by the authority, by a developer under a
36.20development agreement with the Housing and Redevelopment Authority for the city of
36.21Oakdale, or by the owner of the property without entering into a development agreement
36.22with the Housing and Redevelopment Authority for the city of Oakdale; and
36.23    (3) the request for certification of the parcel as part of a district is filed with the
36.24county auditor by December 31, 2017.
36.25    (b) The provisions of this section allow an election by the Housing and
36.26Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under
36.27paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174,
36.28subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).
36.29EFFECTIVE DATE.This section is effective upon compliance by the governing
36.30body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021,
36.31subdivision 3.

36.32    Sec. 10. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
36.33    Subdivision 1. Addition of property to Tax Increment Financing District
36.34No. 1-G. (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175,
37.1subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority
37.2of the city of Bloomington and the city of Bloomington may elect to eliminate the real
37.3property north of the existing building line on Lot 1, Block 1, Mall of America 7th
37.4Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C
37.5within Industrial Development District No. 1 Airport South in the city of Bloomington,
37.6Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G
37.7to include that property.
37.8(b) If the city elects to transfer parcels under this authority, the county auditor shall
37.9transfer the original tax capacity of the affected parcels from Tax Increment Financing
37.10District No. 1-C to Tax Increment Financing District No. 1-G.
37.11    Subd. 2. Authority to extend duration limit; computation of increment. (a)
37.12Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article
37.131, section 8, or any other law to the contrary, the city of Bloomington and its port authority
37.14may extend the duration limits of Tax Increment Financing Districts No. 1-C and No.
37.151-G through December 31, 2033.
37.16(b) Effective for property taxes payable in 2017 through 2033, the captured tax
37.17capacity of Tax Increment Financing District No. 1-C must be included in computing the
37.18tax rates of each local taxing district and the tax increment equals only the amount of tax
37.19computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).
37.20(c) Effective for property taxes payable in 2019 through 2033, the captured tax
37.21capacity of Tax Increment Financing District No. 1-G must be included in computing the
37.22tax rates of each local taxing district and the tax increment for the district equals only
37.23the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision
37.243c, paragraph (c).
37.25    Subd. 3. Treatment of increment. Increments received under the provisions
37.26of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08,
37.27subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No.
37.281-G, notwithstanding any law to the contrary, and without regard to whether they are
37.29attributable to captured tax capacity of Tax Increment Financing District No. 1-C.
37.30    Subd. 4. Condition. The authority under this section expires and Tax Increment
37.31Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024
37.32and thereafter, if the total estimated market value of improvements for parcels located in
37.33Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000
37.34by taxes payable in 2023.
38.1EFFECTIVE DATE.This section is effective upon compliance of the governing
38.2body of the city of Bloomington with the requirements of Minnesota Statutes, section
38.3645.021, subdivision 3, but only if the city enters into a binding written agreement with
38.4the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge
38.5for use by bicycle commuters and recreational users. This section is effective without
38.6approval of the county and school district under Minnesota Statutes, section 469.1782,
38.7subdivision 2. The legislature finds that the county and school district are not "affected
38.8local government units" within the meaning of Minnesota Statutes, section 469.1782,
38.9because the provision allowing extended collection of increment by the tax increment
38.10financing districts does not affect their tax bases and tax rates dissimilarly to other counties
38.11and school districts in the metropolitan area.

38.12    Sec. 11. ST. CLOUD; TAX INCREMENT FINANCING.
38.13    The request for certification of Tax Increment Financing District No. 2, commonly
38.14referred to as the Norwest District, in the city of St. Cloud is deemed to have been made
38.15on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment
38.16for that district must be treated for purposes of any law as revenue of a tax increment
38.17financing district for which the request for certification was made during that time period.
38.18EFFECTIVE DATE.This section is effective upon approval by the governing
38.19body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021,
38.20subdivision 3.

38.21    Sec. 12. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX
38.22INCREMENT FINANCING DISTRICT.
38.23    Subdivision 1. Authorization. Notwithstanding the provisions of any other law,
38.24the Dakota County Community Development Agency may establish a redevelopment tax
38.25increment financing district comprised of the properties that were:
38.26(1) included in the CDA 10 Robert and South Street district in the city of West
38.27St. Paul; and
38.28(2) not decertified before July 1, 2012.
38.29The district created under this section terminates no later than December 31, 2018.
38.30    Subd. 2. Special rules. The requirements for qualifying a redevelopment district
38.31under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located
38.32within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the
38.33district. The original tax capacity of the district is $93,239.
39.1    Subd. 3. Authorized expenditures. Tax increment from the district may be
39.2expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469,
39.3within the redevelopment area that includes the district, provided that the boundaries of
39.4the redevelopment area may not be expanded to add new area after April 1, 2013. All
39.5expenditures for eligible activities are deemed to be activities within the district under
39.6Minnesota Statutes, section 469.1763, subdivisions 2 to 4.
39.7    Subd. 4. Adjusted net tax capacity. The captured tax capacity of the district must
39.8be included in the adjusted net tax capacity of the city, county, and school district for the
39.9purposes of determining local government aid, education aid, and county program aid.
39.10The county auditor shall report to the commissioner of revenue the amount of the captured
39.11tax capacity for the district at the time the assessment abstracts are filed.
39.12EFFECTIVE DATE.This section is effective upon compliance by the governing
39.13body of the Dakota County Community Development Agency with the requirements of
39.14Minnesota Statutes, section 645.021, subdivision 3.

39.15    Sec. 13. CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT
39.16EXTENSION.
39.17    Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
39.18Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the
39.19contrary, the city of Glencoe may collect tax increments from Tax Increment Financing
39.20District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to
39.21the conditions in subdivision 2.
39.22    Subd. 2. Exclusive use of revenues. (a) All tax increments derived from Tax
39.23Increment Financing District No. 4 (McLeod County District No. 007) that are collected
39.24after December 31, 2013, must be used only to pay debt service on or to defease bonds that
39.25were outstanding on January 1, 2013 and that were issued to finance improvements serving:
39.26(1) Tax Increment Financing District No. 14 (McLeod County District No. 033)
39.27(Downtown);
39.28(2) Tax Increment Financing District No. 15 (McLeod County District No. 035)
39.29(Industrial Park); and
39.30(3) benefited properties as further described in proceedings related to the city's series
39.312007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.
40.1(b) Increments may also be used to pay debt service on or to defease bonds issued to
40.2refund the bonds described in paragraph (a), if the refunding bonds do not increase the
40.3present value of debt service due on the refunded bonds when the refunding is closed.
40.4(c) When the bonds described in paragraphs (a) and (b) have been paid or defeased,
40.5the district must be decertified and any remaining increment returned to the city, county,
40.6and school district as provided in Minnesota Statutes, section 469.176, subdivision 2,
40.7paragraph (c), clause (4).
40.8EFFECTIVE DATE.This section is effective upon compliance by the governing
40.9bodies of the city of Glencoe, McLeod County, and Independent School District No.
40.102859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
40.11645.021, subdivision 3.

40.12    Sec. 14. CITY OF ELY; TAX INCREMENT FINANCING.
40.13    Subdivision 1. Extension of district. Notwithstanding Minnesota Statutes, section
40.14469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect
40.15tax increment from Tax Increment Financing District No. 1 through December 31,
40.162021. Increments from the district may only be used to pay binding obligations and
40.17administrative expenses.
40.18    Subd. 2. Binding obligations. For purposes of this section, "binding obligations"
40.19means the binding contractual or debt obligation of Tax Increment Financing District
40.20No. 1 entered into before January 1, 2013.
40.21    Subd. 3. Expenditures outside district. Notwithstanding Minnesota Statutes,
40.22section 469.1763, subdivision 2, the governing body of the city of Ely may elect to
40.23transfer revenues derived from increments from its Tax Increment Financing District No.
40.243 to the tax increment account established under Minnesota Statutes, section 469.177,
40.25subdivision 5, for Tax Increment Financing District No. 1. The amount that may be
40.26transferred is limited to the lesser of:
40.27(1) $168,000; or
40.28(2) the total amount due on binding obligations and outstanding on that date, less the
40.29amount of increment collected by Tax Increment Financing District No. 1 after December
40.3031, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred
40.31after December 31, 2012.
40.32EFFECTIVE DATE.This section is effective upon approval by the governing
40.33bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with
41.1the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
41.2subdivision 3.

41.3    Sec. 15. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING
41.4DISTRICT; SPECIAL RULES.
41.5(a) If the city of Maplewood elects, upon the adoption of a tax increment financing
41.6plan for a district, the rules under this section apply to one or more redevelopment
41.7tax increment financing districts established by the city or the economic development
41.8authority of the city. The area within which the redevelopment tax increment districts may
41.9be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a
41.10part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is
41.11the "3M Renovation and Retention Project Area" or "project area."
41.12(b) The requirements for qualifying redevelopment tax increment districts under
41.13Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
41.14deemed eligible for inclusion in a redevelopment tax increment district.
41.15(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision
41.164j, does not apply to the parcel.
41.17(d) The expenditures outside district rule under Minnesota Statutes, section
41.18469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes,
41.19section 469.1763, subdivision 3, is extended to ten years; and expenditures must only
41.20be made within the project area.
41.21(e) If, after one year from the date of certification of the original net tax capacity
41.22of the tax increment district, no demolition, rehabilitation, or renovation of property has
41.23been commenced on a parcel located within the tax increment district, no additional tax
41.24increment may be taken from that parcel, and the original net tax capacity of the parcel
41.25shall be excluded from the original net tax capacity of the tax increment district. If 3M
41.26Company subsequently commences demolition, rehabilitation, or renovation, the authority
41.27shall certify to the county auditor that the activity has commenced, and the county auditor
41.28shall certify the net tax capacity thereof as most recently certified by the commissioner
41.29of revenue and add it to the original net tax capacity of the tax increment district. The
41.30authority must submit to the county auditor evidence that the required activity has taken
41.31place for each parcel in the district.
41.32(f) The authority to approve a tax increment financing plan and to establish a tax
41.33increment financing district under this section expires December 31, 2018.
42.1EFFECTIVE DATE.This section is effective upon approval by the governing
42.2body of the city of Maplewood and upon compliance with Minnesota Statutes, section
42.3645.021, subdivision 3.

42.4    Sec. 16. CITY OF MINNEAPOLIS; STREETCAR FINANCING.
42.5    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
42.6have the meanings given them.
42.7(b) "City" means the city of Minneapolis.
42.8(c) "County" means Hennepin County.
42.9(d) "District" means the areas certified by the city under subdivision 2 for collection
42.10of value capture taxes.
42.11(e) "Project area" means the area including one city block on either side of a streetcar
42.12line designated by the city to serve the downtown and adjacent neighborhoods of the city.
42.13    Subd. 2. Authority to establish district. (a) The governing body of the city may, by
42.14resolution, establish a value capture district consisting of some or all of the taxable parcels
42.15located within one or more of the following areas of the city, as described in the resolution:
42.16(1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south,
42.17First Avenue South on the east, and 14th Street East on the north;
42.18(2) the area bounded by Spruce Place on the west, 14th Street West on the south,
42.19LaSalle Avenue on the east, and Grant Street West on the north;
42.20(3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on
42.21the south, Marquette Avenue on the east, and Fourth Street South on the north; and
42.22(4) the area bounded by First Avenue North on the west, Washington Avenue on the
42.23south, Hennepin Avenue on the east, and Second Street North on the north.
42.24(b) The city may establish the district and the project area only after holding a public
42.25hearing on its proposed creation after publishing notice of the hearing and the proposal at
42.26least once not less than ten days nor more than 30 days before the date of the hearing.
42.27    Subd. 3. Calculation of value capture district; administrative provisions. (a) If
42.28the city establishes a value capture district under subdivision 2, the city shall request the
42.29county auditor to certify the district for calculation of the district's tax revenues.
42.30(b) For purposes of calculating the tax revenues of the district, the county auditor
42.31shall treat the district as if it were a request for certification of a tax increment financing
42.32district under the provisions of Minnesota Statutes, section 469.177, and shall calculate
42.33the tax revenues of the district for each year of its duration under subdivision 4 as equaling
42.34the amount of tax increment under Minnesota Statutes, section 469.177, except that the
43.1current total tax rate, excluding the state general tax rate, must be used in the calculation,
43.2rather than a certified original tax rate. The city shall provide the county auditor with the
43.3necessary information to certify the district, including the option for calculating revenues
43.4derived from the areawide tax rate under Minnesota Statutes, chapter 473F.
43.5(c) The county auditor shall pay to the city at the same times provided for settlement
43.6of taxes and payment of tax increments the tax revenues of the district. The city must use
43.7the tax revenues as provided under subdivision 4.
43.8    Subd. 4. Permitted uses of district tax revenues. (a) In addition to paying for
43.9reasonable administrative costs of the district, the city may spend tax revenues of the
43.10district for property acquisition, improvements, and equipment to be used for operations
43.11within the project area, along with related costs, for:
43.12(1) planning, design, and engineering services related to the construction of the
43.13streetcar line;
43.14(2) acquiring property for, constructing, and installing a streetcar line;
43.15(3) acquiring and maintaining equipment and rolling stock and related facilities, such
43.16as maintenance facilities, which need not be located in the project area;
43.17(4) acquiring, constructing, or improving transit stations; and
43.18(5) acquiring or improving public space, including the construction and installation
43.19of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
43.20related to the streetcar line.
43.21(b) The city may issue bonds or other obligations under Minnesota Statutes, chapter
43.22475, without an election, to fund acquisition or improvement of property of a capital
43.23nature authorized by this section, including any costs of issuance. The city may also issue
43.24bonds or other obligations to refund those bonds or obligations. Payment of principal
43.25and interest on the bonds or other obligations issued under this paragraph is a permitted
43.26use of the district's tax revenues.
43.27(c) Tax revenues of the district may not be used for the operation of the streetcar line.
43.28    Subd. 5. Duration of the district. A district established under this section is limited
43.29to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues
43.30equal to the amount of the capital costs permitted under subdivision 4 or the amount needed
43.31to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.
43.32EFFECTIVE DATE.This section is effective the day following final enactment.


44.3    Section 1. [116C.99] SILICA SAND MINING ACCOUNT.
44.4A silica sand mining account is created in the special revenue fund. Money in the
44.5account is available for development of model standards, technical assistance to counties
44.6and other governments, other assistance to counties, and other purposes as appropriated
44.7by law.

44.8    Sec. 2. [297J.01] DEFINITIONS.
44.9    Subdivision 1. Scope. Unless otherwise defined in this chapter, or unless the
44.10context clearly indicates otherwise, the terms used in this chapter have the meaning given
44.11them in this section. The definitions in this section are for tax administration purposes
44.12and apply to this chapter.
44.13    Subd. 2. Commissioner. "Commissioner" means the commissioner of revenue or a
44.14person to whom the commissioner has delegated functions.
44.15    Subd. 3. Mining. "Mining" means excavating and mining of silica sand by any
44.16process, including digging, excavating, drilling, blasting, tunneling, dredging, stripping,
44.17or by shaft.
44.18    Subd. 4. Person. "Person" means an individual, fiduciary, estate, trust, partnership,
44.19or corporation.
44.20    Subd. 5. Processing. "Processing" means washing, cleaning, screening, crushing,
44.21filtering, sorting, stockpiling, and storing silica sand at the mining site or at any other site.
44.22    Subd. 6. Silica sand. "Silica sand" means well-rounded, sand-sized grains of quartz
44.23(silica dioxide) with very few impurities in terms of other minerals. Specifically, silica
44.24sand for the purpose of this section is commercially valuable for use in the hydraulic
44.25fracturing of shale to obtain oil and natural gas. Silica sand does not include common
44.26rock, stone, aggregate, gravel, sand with a low quartz level, or silica compounds recovered
44.27as a by-product of metallic mining.
44.28    Subd. 7. Temporary storage. "Temporary storage" means the storage of stockpiles
44.29of silica sand that have been transported and are awaiting further transport.
44.30    Subd. 8. Ton. "Ton" means 2,000 pounds.
44.31    Subd. 9. Transporting. "Transporting" means hauling silica sand, by any carrier:
44.32(1) from the mining site to a processing or transfer site; or
44.33(2) from a processing or storage site to a rail, barge, or transfer site for shipment.
44.34    Subd. 10. Year. "Year" means a calendar year.
45.1EFFECTIVE DATE.This section is effective the day following final enactment.

45.2    Sec. 3. [297J.02] TAX IMPOSED.
45.3    Subdivision 1. Mining tax; rate. A tax is imposed on any person who mines silica
45.4sand from within the state. The rate of tax imposed is $1 per ton.
45.5    Subd. 2. Processing tax; rate. A tax is imposed on any person engaged in
45.6processing silica sand within the state. The rate of tax imposed is three percent of the
45.7market value of the silica sand processed. Market value is determined based on the sale
45.8price of the processed silica sand.
45.9    Subd. 3. Return and remittance. Taxes imposed by this section are due and
45.10payable to the commissioner when the silica sand return is required to be filed. Silica sand
45.11returns must be filed on a form prescribed by the commissioner. Silica sand returns and
45.12taxes imposed under this section must be filed with the commissioner on or before the
45.1320th day of the month following the close of the previous calendar month.
45.14    Subd. 4. Proceeds of taxes. Revenue received from taxes under this chapter, as
45.15well as all related penalties, interest, fees, and miscellaneous sources of revenue, must be
45.16deposited by the commissioner in the state treasury and credited as follows:
45.17(1) $2,000,000 in fiscal year 2014, $2,690,000 in fiscal year 2015, and $2,000,000 in
45.18each fiscal year thereafter must be credited to the silica sand mining account in the special
45.19revenue fund under section 116C.99; and
45.20(2) the balance of revenues derived from taxes, penalties, interest, fees, and
45.21miscellaneous sources of income are credited to the general fund.
45.22    Subd. 5. Personal debt. The tax imposed by this section, and interest and penalties
45.23imposed with respect to it, are a personal debt of the person required to file a return from
45.24the time the liability for it arises, irrespective of when the time for payment of the liability
45.25occurs. The debt must, in the case of the executor or administrator of the estate of a
45.26decedent and in the case of a fiduciary, be that of the person in the person's official or
45.27fiduciary capacity only unless the person has voluntarily distributed the assets held in that
45.28capacity without reserving sufficient assets to pay the tax, interest, and penalties, in which
45.29event the person is personally liable for any deficiency.
45.30    Subd. 6. Refunds; appropriation. A person who has paid to the commissioner
45.31an amount of tax under this chapter for a period in excess of the amount legally due
45.32for that period, may file with the commissioner a claim for a refund of the excess. The
45.33amount necessary to pay the refunds under this subdivision is appropriated from the
45.34general fund to the commissioner.
45.35EFFECTIVE DATE.This section is effective the day following final enactment.

46.1    Sec. 4. [297J.03] REGISTRATION; REPORTING; FILING REQUIREMENTS.
46.2    Subdivision 1. Registration. A person who extracts or processes silica sand within
46.3the state must register with the commissioner, on a form prescribed by the commissioner,
46.4for a silica sand identification number. The commissioner shall issue the applicant a
46.5registration number. A registration number is not assignable and is valid only for the
46.6person in whose name it is issued.
46.7    Subd. 2. Reporting. (a) A person who extracts or processes silica sand in this state
46.8must file a report showing the amount of silica sand extracted or processed monthly on or
46.9before the 20th day of the month following the month in which the silica sand was extracted
46.10or processed. The commissioner may inspect the premises, books, and records, of a person
46.11subject to the silica sand tax during the normal business hours of the person extracting or
46.12processing silica sand. A person violating this section is guilty of a misdemeanor.
46.13(b) A person shall keep at each place of business complete and accurate records
46.14for that place of business, including records of silica sand extracted or processed in the
46.15state. Scale records, sales records, or any other records of tons of silica sand extracted
46.16or processed in this state, produced or maintained by the person extracting or processing
46.17silica sand, must be retained by the person extracting or processing silica sand in this
46.18state. Books, records, invoices, and other papers and documents required by this section
46.19must be kept for a period of at least 3-1/2 years after the date of the monthly silica sand
46.20report unless the commissioner of revenue authorizes, in writing, their destruction or
46.21disposal at an earlier date.
46.22    Subd. 3. Extensions. If, in the commissioner's judgment, good cause exists, the
46.23commissioner may extend the time for filing reports under this section and silica sand
46.24returns under section 297J.02 and for paying taxes under section 297J.02 for not more
46.25than six months.
46.26EFFECTIVE DATE.This section is effective the day following final enactment.

46.27    Sec. 5. [297J.04] LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.
46.28    Subdivision 1. Assessment. Except as otherwise provided in this chapter, the
46.29amount of taxes assessable must be assessed within 3-1/2 years after the date the return is
46.30filed, whether or not the return is filed on or after the date prescribed. A return must not be
46.31treated as filed until it is in processible form. A return is in processible form if it is filed
46.32on a permitted form and contains sufficient data to identify the taxpayer and permit the
46.33mathematical verification of the tax liability shown on the return. For purposes of this
46.34section, a return filed before the last day prescribed by law for filing is considered to
46.35be filed on the last day.
47.1    Subd. 2. False or fraudulent return. Notwithstanding subdivision 1, the tax may be
47.2assessed at any time if a false or fraudulent return is filed or if a taxpayer fails to file a return.
47.3    Subd. 3. Omission in excess of 25 percent. Additional taxes may be assessed
47.4within 6-1/2 years after the due date of the return or the date the return was filed,
47.5whichever is later, if the taxpayer omits from a return taxes in excess of 25 percent of
47.6the taxes reported in the return.
47.7    Subd. 4. Time limit on refunds. Unless otherwise provided in this chapter, a claim
47.8for a refund of an overpayment of tax must be filed within 3-1/2 years from the date
47.9prescribed for filing the silica sand tax return. Interest on refunds must be computed at
47.10the rate specified in section 270C.405 from the date of payment to the date the refund is
47.11paid or credited. For purposes of this subdivision, the date of payment is the later of the
47.12date the tax was finally due or was paid.
47.13    Subd. 5. Bankruptcy; suspension of time. The time during which a tax must be
47.14assessed or collection proceedings begun is suspended during the period from the date of a
47.15filing of a petition in bankruptcy until 30 days after either: (1) notice to the commissioner
47.16that the bankruptcy proceedings have been closed or dismissed; or (2) the automatic stay
47.17has been ended or has expired, whichever occurs first. The suspension of the statute of
47.18limitations under this subdivision applies to the person the petition in bankruptcy is filed
47.19against, and all other persons who may also be wholly or partially liable for the tax.
47.20    Subd. 6. Extension agreement. If, before the expiration of time prescribed in
47.21subdivisions 1 and 4 for the assessment of tax or the filing of a claim for refund, both the
47.22commissioner and the taxpayer have consented in writing to the assessment or filing of a
47.23claim for refund after that time, the tax may be assessed or the claim for refund filed at any
47.24time before the expiration of the agreed upon period. The period may be extended by later
47.25agreements in writing before the expiration of the period previously agreed upon.
47.26EFFECTIVE DATE.This section is effective the day following final enactment

47.27    Sec. 6. [297J.05] CIVIL PENALTIES.
47.28    Subdivision 1. Penalty for failure to pay tax. If a tax is not paid within the time
47.29specified for payment, a penalty is added to the amount required to be shown as tax. The
47.30penalty is five percent of the unpaid tax if the failure is for not more than 30 days, with
47.31an additional penalty of five percent of the amount of tax remaining unpaid during each
47.32additional 30 days or fraction of 30 days during which the failure continues, not exceeding
47.3315 percent in the aggregate. For purposes of this subdivision, if the taxpayer has not filed
47.34a return, the time specified for payment is the final date a return should have been filed.
48.1    Subd. 2. Penalty for failure to make and file return. If a taxpayer fails to make
48.2and file a return within the time prescribed or an extension, a penalty is added to the tax.
48.3The penalty is five percent of the amount of tax not paid on or before the date prescribed
48.4for payment of the tax.
48.5    Subd. 3. Penalty for intentional disregard of law or rules. If part of an additional
48.6assessment is due to negligence or intentional disregard of the provisions of this chapter or
48.7rules of the commissioner of revenue (but without intent to defraud), there is added to the
48.8tax an amount equal to ten percent of the additional assessment.
48.9    Subd. 4. Penalty for false or fraudulent return; evasion. If a person files a false
48.10or fraudulent return, or attempts in any manner to evade or defeat a tax or payment of
48.11tax, there is imposed on the person a penalty equal to 50 percent of the tax found due
48.12for the period to which the return related, less amounts paid by the person on the basis
48.13of the false or fraudulent return.
48.14    Subd. 5. Penalty for repeated failures to file returns or pay taxes. If there is a
48.15pattern by a person of repeated failures to timely file returns or timely pay taxes, and
48.16written notice is given that a penalty will be imposed if such failures continue, a penalty
48.17of 25 percent of the amount of tax not timely paid as a result of each such subsequent
48.18failure is added to the tax. The penalty can be abated under the abatement authority in
48.19section 270C.34.
48.20    Subd. 6. Payment of penalties. The penalties imposed by this section must be
48.21collected and paid in the same manner as taxes. These penalties are in addition to criminal
48.22penalties imposed by this chapter.
48.23EFFECTIVE DATE.This section is effective the day following final enactment.

48.24    Sec. 7. [297J.06] CRIMINAL PENALTIES.
48.25    Subdivision 1. Penalty for failure to file or pay. (a) A person required to file a
48.26return, report, or other document with the commissioner, who knowingly fails to file it
48.27when required, is guilty of a gross misdemeanor. A person required to file a return, report,
48.28or other document who willfully attempts to evade or defeat a tax by failing to file it
48.29when required, is guilty of a felony.
48.30(b) A person required to pay or to collect and remit a tax, who knowingly fails to
48.31do so when required, is guilty of a gross misdemeanor. A person required to pay or to
48.32collect and remit a tax, who willfully attempts to evade or defeat a tax law by failing to
48.33do so when required, is guilty of a felony.
48.34    Subd. 2. False or fraudulent returns; penalties. (a) A person required to
48.35file a return, report, or other document with the commissioner, who delivers to the
49.1commissioner a return, report, or other document known by the person to be fraudulent
49.2or false concerning a material matter is guilty of a felony.
49.3(b) A person who knowingly aids or assists in, or advises in the preparation or
49.4presentation of a return, report, or other document that is fraudulent or false concerning
49.5a material matter, whether or not the falsity or fraud committed is with the knowledge
49.6or consent of the person authorized or required to present the return, report, or other
49.7document, is guilty of a felony.
49.8    Subd. 3. False information. A person is guilty of a felony if the person:
49.9(1) is required by section 297E.05 to keep records or to make returns, and falsifies or
49.10fails to keep the records or falsifies or fails to make the returns; or
49.11(2) knowingly submits materially false information in any report, document, or
49.12other communication submitted to the commissioner in connection with lawful gambling
49.13or with this chapter.
49.14    Subd. 4. Criminal penalties. (a) Criminal penalties imposed by this section are in
49.15addition to civil penalties imposed by this chapter.
49.16(b) A person who violates a provision of this chapter for which another penalty is
49.17not provided is guilty of a misdemeanor.
49.18(c) A person who violates a provision of this chapter for which another penalty is not
49.19provided is guilty of a gross misdemeanor if the violation occurs within five years after
49.20a previous conviction under a provision of this chapter.
49.21(d) A person who in any manner violates a provision of this chapter to evade a tax
49.22imposed by this chapter, or who aids and abets the evasion of a tax, is guilty of a gross
49.23misdemeanor.
49.24    Subd. 5. Statute of limitations. Notwithstanding other provision of the criminal
49.25laws of this state, an indictment may be found and filed, or a complaint filed, upon a
49.26criminal offense named in this section, in the proper court within six years after the
49.27offense is committed.
49.28EFFECTIVE DATE.This section is effective the day following final enactment.

49.29    Sec. 8. [297J.07] INTEREST.
49.30    Subdivision 1. Rate. If an interest assessment is required under this section, interest
49.31is computed at the rate specified in section 270C.40.
49.32    Subd. 2. Late payment. If a tax is not paid within the time specified by law for
49.33payment, the unpaid tax bears interest from the date the tax should have been paid until
49.34the date the tax is paid.
50.1    Subd. 3. Extensions. If an extension of time for payment has been granted, interest
50.2must be paid from the date the payment should have been made if no extension had been
50.3granted, until the date the tax is paid.
50.4    Subd. 4. Additional assessments. If a taxpayer is liable for additional taxes because
50.5of a redetermination by the commissioner, or for any other reason, the additional taxes
50.6bear interest from the time the tax should have been paid, without regard to any extension
50.7allowed, until the date the tax is paid.
50.8    Subd. 5. Erroneous refunds. In the case of an erroneous refund, interest accrues
50.9from the date the refund was paid unless the erroneous refund results from a mistake of
50.10the department, then no interest or penalty is imposed unless the deficiency assessment is
50.11not satisfied within 60 days of the order.
50.12    Subd. 6. Interest on judgments. Notwithstanding section 549.09, if judgment is
50.13entered in favor of the commissioner with regard to any tax, the judgment bears interest
50.14at the rate specified in section 270C.40 from the date the judgment is entered until the
50.15date of payment.
50.16    Subd. 7. Interest on penalties. A penalty imposed under section 297J.05,
50.17subdivision 1, 2, 3, 4, or 5, bears interest from the date the return or payment was required
50.18to be filed or paid, including any extensions, to the date of payment of the penalty.
50.19EFFECTIVE DATE.This section is effective the day following final enactment.

50.20    Sec. 9. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:
50.21    Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided
50.22in paragraph (d), less the amount that would have been computed under Minnesota
50.23Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be
50.24allocated to qualifying school districts to be distributed, based upon the certification of the
50.25commissioner of revenue, under paragraphs (b), (c), and (f).
50.26    (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
50.27the lands from which taconite was mined or quarried were located or within which the
50.28concentrate was produced. The distribution must be based on the apportionment formula
50.29prescribed in subdivision 2.
50.30    (ii) Four cents per taxable ton from each taconite facility must be distributed to
50.31each affected school district for deposit in a fund dedicated to building maintenance
50.32and repairs, as follows:
50.33    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
50.34School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
50.35districts;
51.1    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
51.2Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
51.3districts;
51.4    (3) proceeds from the Mittal Steel Company and Minntac or their successors are
51.5distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
51.62711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
51.7    (4) proceeds from the Northshore Mining Company or its successor are distributed
51.8to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
51.9or their successor districts; and
51.10    (5) proceeds from United Taconite or its successor are distributed to Independent
51.11School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
51.12successor districts.
51.13    Revenues that are required to be distributed to more than one district shall be
51.14apportioned according to the number of pupil units identified in section 126C.05,
51.15subdivision 1 , enrolled in the second previous year.
51.16    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
51.17shall be distributed to a group of school districts comprised of those school districts which
51.18qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
51.19qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
51.20to school district indexes as follows: for each school district, its pupil units determined
51.21under section 126C.05 for the prior school year shall be multiplied by the ratio of the
51.22average adjusted net tax capacity per pupil unit for school districts receiving aid under
51.23this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
51.24ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
51.25Each district shall receive that portion of the distribution which its index bears to the sum
51.26of the indices for all school districts that receive the distributions.
51.27    (ii) Notwithstanding clause (i), each school district that receives a distribution
51.28under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
51.29clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
51.30severed mineral values after reduction for any portion distributed to cities and towns
51.31under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
51.32levy reduction under section 126C.48, subdivision 8, for the second year prior to the
51.33year of the distribution shall receive a distribution equal to the difference; the amount
51.34necessary to make this payment shall be derived from proportionate reductions in the
51.35initial distribution to other school districts under clause (i). If there are insufficient tax
51.36proceeds to make the distribution provided under this paragraph in any year, money must
52.1be transferred from the taconite property tax relief account in subdivision 6, to the extent
52.2of the shortfall in the distribution.
52.3    (d) Any school district described in paragraph (c) where a levy increase pursuant to
52.4section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
52.5shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
52.6pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
52.7year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
52.8times the district's taxable net tax capacity in the second previous year.
52.9    If the total amount provided by paragraph (d) is insufficient to make the payments
52.10herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
52.11so as not to exceed the funds available. Any amounts received by a qualifying school
52.12district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
52.13education aid which the district receives pursuant to section 126C.13 or the permissible
52.14levies of the district. Any amount remaining after the payments provided in this paragraph
52.15shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
52.16deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
52.17economic protection trust fund as provided in subdivision 11.
52.18    Each district receiving money according to this paragraph shall reserve the lesser of
52.19the amount received under this paragraph or $25 times the number of pupil units served
52.20in the district. It may use the money for early childhood programs or for outcome-based
52.21learning programs that enhance the academic quality of the district's curriculum. The
52.22outcome-based learning programs must be approved by the commissioner of education.
52.23    (e) There shall be distributed to any school district the amount which the school
52.24district was entitled to receive under section 298.32 in 1975.
52.25    (f) Four cents per taxable ton must be distributed to qualifying school districts
52.26according to the distribution specified in paragraph (b), clause (ii), and two cents per taxable
52.27ton must be distributed according to the distribution specified in paragraph (c). These
52.28amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, subdivision 8.
52.29EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.

52.30    Sec. 10. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:
52.31    Subd. 6. Property tax relief. (a) In 2002 2014 and thereafter, 33.9 35.3 cents per
52.32taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or
52.33section 298.2961, subdivision 5, must be allocated to St. Louis County acting as the
52.34counties' fiscal agent, to be distributed as provided in sections 273.134 to 273.136.
53.1(b) If an electric power plant owned by and providing the primary source of power
53.2for a taxpayer mining and concentrating taconite is located in a county other than the
53.3county in which the mining and the concentrating processes are conducted, .1875 cent per
53.4taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
53.5(c) If an electric power plant owned by and providing the primary source of power
53.6for a taxpayer mining and concentrating taconite is located in a school district other than
53.7a school district in which the mining and concentrating processes are conducted, .4541
53.8cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
53.9the school district.
53.10EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.

53.11    Sec. 11. Minnesota Statutes 2012, section 298.28, subdivision 9a, is amended to read:
53.12    Subd. 9a. Taconite economic development fund. (a) 30.1 20.4 cents per ton
53.13for distributions in 2002 2014 and thereafter must be paid to the taconite economic
53.14development fund. No distribution shall be made under this paragraph in 2004 or any
53.15subsequent year in which total industry production falls below 30 million tons. Distribution
53.16shall only be made to a taconite producer's fund under section 298.227 if the producer
53.17timely pays its tax under section 298.24 by the dates provided under section 298.27, or
53.18pursuant to the due dates provided by an administrative agreement with the commissioner.
53.19(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate
53.20sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including
53.21crushed pellets shall be paid to the taconite economic development fund. The amount
53.22paid shall not exceed $700,000 annually for all companies. If the initial amount to be
53.23paid to the fund exceeds this amount, each company's payment shall be prorated so the
53.24total does not exceed $700,000.
53.25EFFECTIVE DATE.This section is effective beginning for the 2014 distribution.

53.26    Sec. 12. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
53.27    Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), A county that
53.28imposes the aggregate production tax, as defined in this section, shall impose upon every
53.29operator a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate
53.30material excavated in the county except that the county board may decide not to impose
53.31this tax if it determines that in the previous year operators removed less than 20,000 tons
53.32or 14,000 cubic yards of aggregate material from that county. A county may impose upon
53.33every operator an additional production tax of up to 21.5 cents per cubic yard or 15 cents
54.1per ton of aggregate material excavated in the county. The tax shall not be imposed on
54.2aggregate material excavated in the county until the aggregate material is transported from
54.3the extraction site or sold, whichever occurs first. When aggregate material is stored in a
54.4stockpile within the state of Minnesota and a public highway, road or street is not used
54.5for transporting the aggregate material, the tax shall not be imposed until either when the
54.6aggregate material is sold, or when it is transported from the stockpile site, or when it is
54.7used from the stockpile, whichever occurs first.
54.8    (b) Except as provided in paragraph (e), A county that imposes the aggregate
54.9production tax under paragraph (a), as defined in this section, shall impose upon every
54.10importer a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate
54.11material imported into the county. A county may impose upon every importer an
54.12additional production tax of up to 21.5 cents per cubic yard or 15 cents per ton of
54.13aggregate material imported into the county. The tax shall be imposed when the aggregate
54.14material is imported from the extraction site or sold. When imported aggregate material is
54.15stored in a stockpile within the state of Minnesota and a public highway, road, or street is
54.16not used for transporting the aggregate material, the tax shall be imposed either when the
54.17aggregate material is sold, when it is transported from the stockpile site, or when it is used
54.18from the stockpile, whichever occurs first. The tax shall be imposed on an importer when
54.19the aggregate material is imported into the county that imposes the tax.
54.20    (c) If the aggregate material is transported directly from the extraction site to a
54.21waterway, railway, or another mode of transportation other than a highway, road or street,
54.22the tax imposed by this section shall be apportioned equally between the county where the
54.23aggregate material is extracted and the county to which the aggregate material is originally
54.24transported. If that destination is not located in Minnesota, then the county where the
54.25aggregate material was extracted shall receive all of the proceeds of the tax.
54.26    (d) A county, city, or town that receives revenue under this section is prohibited
54.27from imposing any additional host community fees on aggregate production within that
54.28county, city, or town.
54.29(e) A county that borders two other states and that is not contiguous to a county
54.30that imposes a tax under this section may impose the taxes under paragraphs (a) and (b)
54.31at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires
54.32December 31, 2014.
54.33EFFECTIVE DATE.This section is effective the day following final enactment.

54.34    Sec. 13. 2013 DISTRIBUTION ONLY.
55.1For the 2013 distribution, a special fund is established to receive $....... of the
55.2amount that otherwise would be distributed under Minnesota Statutes, section 298.28,
55.3subdivision 6, and this amount must be paid as follows:
55.4(1) $ ....... to the city of Hibbing for improvements to the city's water supply system;
55.5and
55.6(2) $ ....... to the city of Mountain Iron for the cost of moving utilities required as a
55.7result of actions undertaken by United States Steel Corporation.
55.8EFFECTIVE DATE.This section is effective for the 2013 distribution, all of which
55.9must be made in the August 2013 payment.

55.10    Sec. 14. IRON RANGE RESOURCES AND REHABILITATION
55.11COMMISSIONER; BONDS AUTHORIZED.
55.12    Subdivision 1. Issuance; purpose. Notwithstanding any provision of Minnesota
55.13Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
55.14rehabilitation may issue revenue bonds in a principal amount of $....... in one or more
55.15series, and bonds to refund those bonds. The proceeds of the bonds must be used to make
55.16grants to school districts located in the taconite tax relief area defined in Minnesota Statutes,
55.17section 273.134, or the taconite assistance area defined in Minnesota Statutes, section
55.18273.1341, to be used by the school districts to pay for building projects, such as energy
55.19efficiency, technology, infrastructure, health, safety, and maintenance improvements.
55.20    Subd. 2. Appropriation. (a) There is annually appropriated from the distribution of
55.21taconite production tax revenues under Minnesota Statues, section 298.28, prior to the
55.22calculation of the amount of the remainder under Minnesota Statutes, section 298.28,
55.23subdivision 11, an amount sufficient to pay when due the principal and interest on the
55.24bonds issued pursuant to subdivision 1. The appropriation under this section must not
55.25exceed an amount equal to ten cents per taxable ton.
55.26(b) If in any year the amount available under paragraph (a) is insufficient to pay
55.27principal and interest due on the bonds in that year, an additional amount is appropriated
55.28from the Douglas J. Johnson fund to make up the deficiency.
55.29(c) The appropriation under this subdivision terminates upon payment or maturity of
55.30the last of the bonds issued under this section.
55.31    Subd. 3. Credit enhancement. The bonds issued under this section are "debt
55.32obligations" and the commissioner of Iron Range resources and rehabilitation is a "district"
55.33for purposes of Minnesota Statutes, section 126C.55, provided that advances made under
56.1Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes,
56.2section 126C.55, subdivisions 4 to 7.
56.3EFFECTIVE DATE.This section is effective the day following final enactment and
56.4applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.

56.5    Sec. 15. IRON RANGE FISCAL DISPARITIES STUDY.
56.6    Subdivision 1. Study required. The commissioner of revenue shall conduct a study
56.7of the tax relief area revenue distribution program contained in Minnesota Statutes, chapter
56.8276A, commonly known as the Iron Range fiscal disparities program. By February 1,
56.92015, the commissioner shall submit a report to the chairs and ranking minority members
56.10of the house of representatives and senate tax committees consisting of the findings of the
56.11study and identification of issues for policy makers to consider. The study must analyze:
56.12(1) the extent to which the benefits of the economic growth in the region are shared
56.13throughout the region, especially for growth that results from state or regional decisions;
56.14(2) the program's impact on the variability of tax rates across jurisdictions of the
56.15region;
56.16(3) the program's impact on the distribution of homestead property tax burdens
56.17across jurisdictions of the region; and
56.18(4) the relationship between the impacts of the program and overburden on
56.19jurisdictions containing properties that provide regional benefits, specifically the costs
56.20those properties impose on their host jurisdictions in excess of their tax payments. The
56.21report must include a description of other property tax, aid, and local development
56.22programs that interact with the fiscal disparities program.
56.23    Subd. 2. Funds transfer from fiscal disparities levy. For taxes payable in 2014
56.24only, $75,000 must be added to St. Louis County's areawide levy as otherwise determined
56.25under Minnesota Statutes, section 276A.06, subdivision 5. Upon receipt of the proceeds of
56.26this levy, St. Louis County must transfer this money to the commissioner of management
56.27and budget for deposit into an account in the special revenue fund. One-half of the
56.28proceeds of the levy must be transferred prior to June 30, 2014.
56.29    Subd. 3. Appropriation. $37,500 in fiscal year 2014 and $37,500 in fiscal year
56.302015 are appropriated from the account in the special revenue fund established under
56.31subdivision 2 to the commissioner of revenue to pay for the study required by this section.
56.32Any amounts remaining in the account in the special revenue fund on June 30, 2015, must
57.1be distributed to St. Louis County for the purposes of reducing the areawide tax rate
57.2for taxes payable in 2016.
57.3EFFECTIVE DATE.This section is effective July 1, 2013.


57.6    Section 1. Minnesota Statutes 2012, section 469.190, is amended by adding a
57.7subdivision to read:
57.8    Subd. 1a. Tax base; locally collected taxes. A tax imposed on the gross receipts
57.9from lodging under this section or under a special law applies to the same base as taxes
57.10collected by the commissioner of revenue under subdivision 7 and section 270C.171.
57.11EFFECTIVE DATE.This section is effective the day following final enactment.
57.12In enacting this section, the legislature confirms its original intent in enacting Minnesota
57.13Statutes, section 469.190, its predecessor provisions, and any special laws authorizing
57.14political subdivisions to impose lodging taxes, and that those taxes were and are intended
57.15to apply to the entire consideration paid to obtain access to transient lodging, including
57.16ancillary or related services, such as services provided by accommodation intermediaries
57.17as defined in Minnesota Statutes, section 297A.61, and similar services. The provisions of
57.18this section must not be interpreted to imply a narrower construction of the tax base under
57.19lodging tax provisions of Minnesota law prior to the enactment of this section.

57.20    Sec. 2. Minnesota Statutes 2012, section 469.190, subdivision 7, is amended to read:
57.21    Subd. 7. Collection. (a) The statutory or home rule charter city may agree with the
57.22commissioner of revenue that a tax imposed pursuant to this section shall be collected
57.23by the commissioner together with the tax imposed by chapter 297A, and subject to the
57.24same interest, penalties, and other rules and that its proceeds, less the cost of collection,
57.25shall be remitted to the city.
57.26(b) If a tax imposed under this section or under a special law is not collected by
57.27the commissioner of revenue, the local government imposing the tax may only require
57.28an accommodations intermediary, as defined in section 297A.61, subdivision 47, to file
57.29and remit the tax related to accommodations intermediary services once in every calendar
57.30year. The local government must inform the tax intermediary of the date when the return
57.31and remittance is due.
57.32EFFECTIVE DATE.This section is effective for sales and purchases made after
57.33June 30, 2013.

58.1    Sec. 3. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by
58.2Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section
58.330, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First
58.4Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4,
58.5section 15, is amended to read:
58.6    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision
58.71 may only be used by the city to pay the cost of collecting the tax, and, except as provided in
58.8paragraph (e), to pay for the following projects or to secure or pay any principal, premium,
58.9or interest on bonds issued in accordance with subdivision 3 for the following projects.
58.10    (a) To pay all or a portion of the capital expenses of construction, equipment and
58.11acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
58.12including the demolition of the existing arena and the construction and equipping of a
58.13new arena.
58.14    (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
58.15spent for:
58.16    (1) capital projects to further residential, cultural, commercial, and economic
58.17development in both downtown St. Paul and St. Paul neighborhoods; and
58.18    (2) capital and operating expenses of cultural organizations in the city, provided
58.19that the amount spent under this clause must equal ten percent of the total amount spent
58.20under this paragraph in any year.
58.21    (c) The amount apportioned under paragraph (b) shall be no less than 60 percent
58.22of the revenues derived from the tax each year, except to the extent that a portion of that
58.23amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a)
58.24prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1,
58.251998, but only if the city council determines that 40 percent of the revenues derived from
58.26the tax together with other revenues pledged to the payment of the bonds, including the
58.27proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
58.28    (d) If in any year more than 40 percent of the revenue derived from the tax authorized
58.29by subdivision 1 is used to pay debt service on the bonds issued for the purposes of
58.30paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment
58.31that exceeds 40 percent of the revenue must be determined for that year. In any year when
58.3240 percent of the revenue produced by the sales tax exceeds the amount required to pay
58.33debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the
58.34amount of the excess must be made available for capital projects to further residential,
58.35cultural, commercial, and economic development in the neighborhoods and downtown
58.36until the cumulative amounts determined for all years under the preceding sentence have
59.1been made available under this sentence. The amount made available as reimbursement in
59.2the preceding sentence is not included in the 60 percent determined under paragraph (c).
59.3    (e) In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be
59.4used to pay the principal of bonds issued for capital projects of the city. After December
59.531, 2014, revenue from the tax imposed under subdivision 1 may not be used for this
59.6purpose. If the amount necessary to meet obligations under paragraphs (a) and (d) are less
59.7than 40 percent of the revenue from the tax in any year, the city may place the difference
59.8between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)
59.9in an economic development fund to be used for any economic development purposes.
59.10    (f) By January 15 of each year, the mayor and the city council must report to the
59.11legislature on the use of sales tax revenues during the preceding one-year period.
59.12EFFECTIVE DATE.This section is effective the day after compliance by the
59.13governing body of the city of St. Paul with Minnesota Statutes, section 645.021,
59.14subdivisions 2 and 3.

59.15    Sec. 4. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 2,
59.16is amended to read:
59.17    Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
59.18subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
59.19administering the tax and to pay all or part of the capital or administrative costs of the
59.20development, acquisition, construction, improvement, and securing and paying debt
59.21service on bonds or other obligations issued to finance the following regional projects as
59.22approved by the voters and specifically detailed in the referendum authorizing the tax or
59.23extending the tax:
59.24    (1) St. Cloud Regional Airport;
59.25    (2) regional transportation improvements;
59.26    (3) regional community and aquatics and recreation centers and facilities;
59.27    (4) regional public libraries; and
59.28    (5) acquisition and improvement of regional park land and open space.
59.29    (b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
59.30Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
59.31collecting and administering the tax and to pay all or part of the capital or administrative
59.32costs of the development, acquisition, construction, improvement, and securing and paying
59.33debt service on bonds or other obligations issued to fund the projects specifically approved
59.34by the voters at the referendum authorizing the tax or extending the tax. The portion of
60.1revenues from the city going to fund the regional airport or regional library located in the
60.2city of St. Cloud will be as required under the applicable joint powers agreement.
60.3    (c) The use of revenues received from the taxes authorized in subdivision 1 for
60.4projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
60.5each project under the enabling referendum.
60.6EFFECTIVE DATE.This section is effective for a city that approves it the day
60.7after compliance by the governing body of that city with Minnesota Statutes, section
60.8645.021, subdivision 3.

60.9    Sec. 5. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 4,
60.10is amended to read:
60.11    Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud,
60.12St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the
60.13city council determines that sufficient funds have been collected from the tax to retire or
60.14redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no
60.15later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99,
60.16subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under
60.17subdivision 1 through December 31, 2038, if approved under the referendum authorizing
60.18the tax under subdivision 1 or if approved by voters of the city at a general election held
60.19no later than November 6, 2018.
60.20EFFECTIVE DATE.This section is effective for a city that approves it the day
60.21after compliance by the governing body of that city with Minnesota Statutes, section
60.22645.021, subdivision 3.

60.23    Sec. 6. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by
60.24Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
60.25    Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section 297A.99,
60.26subdivision 3 , paragraph (b), the proceeds of the tax imposed under this section shall be
60.27used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside
60.28Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring
60.29Street Park; improvements to and extension of the River County Bike Trail; acquisition,
60.30 and construction, improvement, and development of regional parks, bicycle trails, park
60.31land, open space, and of a pedestrian walkways, as described in the city improvement
60.32plan adopted by the city council by resolution on December 12, 2006, and walkway
60.33over Interstate 94 and State Highway 24; and the acquisition of land and construction of
61.1buildings for a community and recreation center. The total amount of revenues from the
61.2taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
61.3plus any associated bond costs.
61.4EFFECTIVE DATE.This section is effective the day after compliance by the
61.5governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
61.6subdivisions 2 and 3.

61.7    Sec. 7. CITY OF PROCTOR; VALIDATION OF PRIOR ACT.
61.8Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
61.9Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and
61.10Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary
61.11of state by January 1, 2014. If approved under this paragraph, actions undertaken by
61.12the city pursuant to the approval of the voters on November 2, 2010, and otherwise in
61.13accordance with those laws are validated.
61.14EFFECTIVE DATE.This section is effective the day following final enactment.

61.15    Sec. 8. CITY OF BEMIDJI; LOCAL TAXES AUTHORIZED.
61.16    Subdivision 1. Food and beverage tax authorized. Notwithstanding Minnesota
61.17Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the
61.18city of Bemidji may, by ordinance, impose a sales tax of up to one percent on the gross
61.19receipts of all food and beverages sold by a restaurant or place of refreshment located
61.20within the city. For purposes of this section, "food and beverages" include retail on-sale of
61.21intoxicating liquor and fermented malt beverages.
61.22    Subd. 2. Lodging tax. Notwithstanding Minnesota Statutes, section 469.190 or
61.23477A.016, or any other provision of law, ordinance, or city charter, the city of Bemidji
61.24may impose, by ordinance, a tax of up to one percent on the gross receipts for the
61.25furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
61.26resort, other than for the renting or leasing of it for a continuous period of 30 days or more.
61.27    Subd. 3. Use of proceeds from authorized taxes. The proceeds of the taxes
61.28imposed under subdivisions 1 and 2 must only be used by the city to fund the costs of
61.29operation, maintenance, and capital replacement costs for the Sanford Center.
61.30    Subd. 4. Collection, administration, and enforcement. The city may enter into
61.31an agreement with the commissioner of revenue to administer, collect, and enforce the
62.1taxes under subdivisions 1 and 2. If the commissioner agrees to collect the tax, the
62.2provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
62.3and enforcement, and Minnesota Statutes, section 270C.171, apply.
62.4EFFECTIVE DATE.This section is effective the day after the governing body of
62.5the city of Bemidji and its chief clerical officer comply with Minnesota Statutes, section
62.6645.021, subdivisions 2 and 3.


62.9    Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:
62.1038.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
62.11Any Each town, statutory city, or school district in this state, now or hereafter at any
62.12time having a an estimated market value of all its taxable property, exclusive of money and
62.13credits, of more than $105,000,000, and having a county fair located within its corporate
62.14limits, is hereby authorized to aid in defraying may pay part of the expense of improving
62.15any such the fairground, by appropriating and paying over to the treasurer of the county
62.16owning the fairground such sum of money, not exceeding $10,000, for each of the political
62.17subdivisions, as the its governing body of the town, statutory city, or school district may,
62.18by resolution, determine determines to be for the best interest of the political subdivision,.
62.19 The sums so appropriated to amounts paid to the county must be used solely for the purpose
62.20of aiding in the improvement of to improve the fairground in such the manner as the county
62.21board of the county shall determine determines to be for the best interest of the county.

62.22    Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
62.23    Subd. 2. Eligible recipients. All counties within the state, municipalities that prepare
62.24plans and official controls instead of a county, and districts are eligible for assistance
62.25under the program. Counties and districts may apply for assistance on behalf of other
62.26municipalities. In order to be eligible for financial assistance a county or municipality must
62.27agree to levy at least 0.01209 percent of taxable estimated market value for agricultural
62.28land preservation and conservation activities or otherwise spend the equivalent amount of
62.29local money on those activities, or spend $15,000 of local money, whichever is less.

62.30    Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
62.31    Subdivision 1. Definitions. Unless the language or context clearly indicates that
62.32a different meaning is intended, the following words and terms, for the purposes of this
62.33chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
63.1    (a) "Commissioner" means the commissioner of revenue.
63.2    (b) "Municipality" means:
63.3    (1) a home rule charter or statutory city;
63.4    (2) an organized town;
63.5    (3) a park district subject to chapter 398;
63.6    (4) the University of Minnesota;
63.7    (5) for purposes of the fire state aid program only, an American Indian tribal
63.8government entity located within a federally recognized American Indian reservation;
63.9    (6) for purposes of the police state aid program only, an American Indian tribal
63.10government with a tribal police department which exercises state arrest powers under
63.11section 626.90, 626.91, 626.92, or 626.93;
63.12    (7) for purposes of the police state aid program only, the Metropolitan Airports
63.13Commission; and
63.14    (8) for purposes of the police state aid program only, the Department of Natural
63.15Resources and the Department of Public Safety with respect to peace officers covered
63.16under chapter 352B.
63.17    (c) "Minnesota Firetown Premium Report" means a form prescribed by the
63.18commissioner containing space for reporting by insurers of fire, lightning, sprinkler
63.19leakage and extended coverage premiums received upon risks located or to be performed
63.20in this state less return premiums and dividends.
63.21    (d) "Firetown" means the area serviced by any municipality having a qualified fire
63.22department or a qualified incorporated fire department having a subsidiary volunteer
63.23firefighters' relief association.
63.24    (e) "Estimated market value" means latest available estimated market value of all
63.25property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
63.26from ad valorem taxation obtained from information which appears on abstracts filed with
63.27the commissioner of revenue or equalized by the State Board of Equalization.
63.28    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
63.29commissioner for reporting by each fire and casualty insurer of all premiums received
63.30upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
63.31during the preceding calendar year, with reference to insurance written for insuring against
63.32the perils contained in auto insurance coverages as reported in the Minnesota business
63.33schedule of the annual financial statement which each insurer is required to file with
63.34the commissioner in accordance with the governing laws or rules less return premiums
63.35and dividends.
63.36    (g) "Peace officer" means any person:
64.1    (1) whose primary source of income derived from wages is from direct employment
64.2by a municipality or county as a law enforcement officer on a full-time basis of not less
64.3than 30 hours per week;
64.4    (2) who has been employed for a minimum of six months prior to December 31
64.5preceding the date of the current year's certification under subdivision 2, clause (b);
64.6    (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
64.7    (4) who is licensed by the Peace Officers Standards and Training Board and is
64.8authorized to arrest with a warrant; and
64.9    (5) who is a member of the State Patrol retirement plan or the public employees
64.10police and fire fund.
64.11    (h) "Full-time equivalent number of peace officers providing contract service" means
64.12the integral or fractional number of peace officers which would be necessary to provide
64.13the contract service if all peace officers providing service were employed on a full-time
64.14basis as defined by the employing unit and the municipality receiving the contract service.
64.15    (i) "Retirement benefits other than a service pension" means any disbursement
64.16authorized under section 424A.05, subdivision 3, clauses (3) and (4).
64.17    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
64.18(1) for the police state aid program and police relief association financial reports:
64.19(i) the person who was elected or appointed to the specified position or, in the
64.20absence of the person, another person who is designated by the applicable governing body;
64.21(ii) in a park district, the secretary of the board of park district commissioners;
64.22(iii) in the case of the University of Minnesota, the official designated by the Board
64.23of Regents;
64.24(iv) for the Metropolitan Airports Commission, the person designated by the
64.25commission;
64.26(v) for the Department of Natural Resources or the Department of Public Safety, the
64.27respective commissioner;
64.28(vi) for a tribal police department which exercises state arrest powers under section
64.29626.90 , 626.91, 626.92, or 626.93, the person designated by the applicable American
64.30Indian tribal government; and
64.31(2) for the fire state aid program and fire relief association financial reports, the
64.32person who was elected or appointed to the specified position, or, for governmental
64.33entities other than counties, if the governing body of the governmental entity designates
64.34the position to perform the function, the chief financial official of the governmental entity
64.35or the chief administrative official of the governmental entity.
65.1(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
65.2retirement plan established by chapter 353G.

65.3    Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
65.4    Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
65.5(a) The commissioner shall apportion the fire state aid relative to the premiums reported
65.6on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
65.7and/or firefighters relief association.
65.8(b) The commissioner shall calculate an initial fire state aid allocation amount for
65.9each municipality or fire department under paragraph (c) and a minimum fire state aid
65.10allocation amount for each municipality or fire department under paragraph (d). The
65.11municipality or fire department must receive the larger fire state aid amount.
65.12(c) The initial fire state aid allocation amount is the amount available for
65.13apportionment as fire state aid under subdivision 5, without inclusion of any additional
65.14funding amount to support a minimum fire state aid amount under section 423A.02,
65.15subdivision 3 , allocated one-half in proportion to the population as shown in the last official
65.16statewide federal census for each fire town and one-half in proportion to the estimated
65.17market value of each fire town, including (1) the estimated market value of tax-exempt
65.18property and (2) the estimated market value of natural resources lands receiving in lieu
65.19payments under sections 477A.11 to 477A.14, but excluding the estimated market value
65.20of minerals. In the case of incorporated or municipal fire departments furnishing fire
65.21protection to other cities, towns, or townships as evidenced by valid fire service contracts
65.22filed with the commissioner, the distribution must be adjusted proportionately to take
65.23into consideration the crossover fire protection service. Necessary adjustments must be
65.24made to subsequent apportionments. In the case of municipalities or independent fire
65.25departments qualifying for the aid, the commissioner shall calculate the state aid for the
65.26municipality or relief association on the basis of the population and the estimated market
65.27value of the area furnished fire protection service by the fire department as evidenced by
65.28duly executed and valid fire service agreements filed with the commissioner. If one or
65.29more fire departments are furnishing contracted fire service to a city, town, or township,
65.30only the population and estimated market value of the area served by each fire department
65.31may be considered in calculating the state aid and the fire departments furnishing service
65.32shall enter into an agreement apportioning among themselves the percent of the population
65.33and the estimated market value of each service area. The agreement must be in writing
65.34and must be filed with the commissioner.
66.1(d) The minimum fire state aid allocation amount is the amount in addition to the
66.2initial fire state allocation amount that is derived from any additional funding amount
66.3to support a minimum fire state aid amount under section 423A.02, subdivision 3, and
66.4allocated to municipalities with volunteer firefighters relief associations or covered by the
66.5voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
66.6of active volunteer firefighters who are members of the relief association as reported
66.7in the annual financial reporting for the calendar year 1993 to the Office of the State
66.8Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
66.9fire departments with volunteer firefighters relief associations receive in total at least a
66.10minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
66.1130 firefighters. If a relief association is established after calendar year 1993 and before
66.12calendar year 2000, the number of active volunteer firefighters who are members of the
66.13relief association as reported in the annual financial reporting for calendar year 1998
66.14to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
66.15shall be used in this determination. If a relief association is established after calendar
66.16year 1999, the number of active volunteer firefighters who are members of the relief
66.17association as reported in the first annual financial reporting submitted to the Office of
66.18the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
66.19determination. If a relief association is terminated as a result of providing retirement
66.20coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
66.21firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
66.22of the municipality covered by the statewide plan as certified by the executive director of
66.23the Public Employees Retirement Association to the commissioner and the state auditor,
66.24but not to exceed 30 active firefighters, must be used in this determination.
66.25(e) Unless the firefighters of the applicable fire department are members of the
66.26voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
66.27be paid to the treasurer of the municipality where the fire department is located and the
66.28treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
66.29the aid to the relief association if the relief association has filed a financial report with the
66.30treasurer of the municipality and has met all other statutory provisions pertaining to the
66.31aid apportionment. If the firefighters of the applicable fire department are members of
66.32the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
66.33must be paid to the executive director of the Public Employees Retirement Association
66.34and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
66.35(f) The commissioner may make rules to permit the administration of the provisions
66.36of this section.
67.1(g) Any adjustments needed to correct prior misallocations must be made to
67.2subsequent apportionments.

67.3    Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
67.4    Subd. 8. Population and estimated market value. (a) In computations relating to
67.5fire state aid requiring the use of population figures, only official statewide federal census
67.6figures are to be used. Increases or decreases in population disclosed by reason of any
67.7special census must not be taken into consideration.
67.8(b) In calculations relating to fire state aid requiring the use of estimated market
67.9value property figures, only the latest available estimated market value property figures
67.10may be used.

67.11    Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
67.12    Subd. 3. Determination of estimated market value. In determining the net tax
67.13capacity of property within any taxing district the value of the surface of lands within any
67.14auxiliary forest therein, as determined by the county board under the provisions of section
67.1588.48, subdivision 3 , shall, for all purposes except the levying of taxes on lands within any
67.16such forest, be deemed the estimated market value thereof.

67.17    Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
67.18    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local
67.19government unit may annually levy a tax on all taxable property in the district for the
67.20purposes for which the tax district is established. The tax may not exceed 0.02418 percent
67.21of estimated market value on taxable property located in rural towns other than urban
67.22towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
67.23be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
67.24fund at the time the tax is terminated or the district is dissolved shall be transferred and
67.25irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
67.26tax levies for bonded indebtedness of taxable property in the district.

67.27    Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
67.28    Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued
67.29under subdivision 7 and the payment required under subdivision 6, the county shall
67.30irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
67.31located within the territory of the watershed management organization or subwatershed
67.32unit for which the bonds are issued. Each year until the reserve for payment of the bonds
68.1is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
68.2of the organization or unit, without respect to any statutory or other limitation on taxes, an
68.3amount of taxes sufficient to pay principal and interest on the bonds and to restore any
68.4deficiencies in reserves required to be maintained for payment of the bonds.
68.5(b) The tax levied on rural towns other than urban towns may not exceed 0.02418
68.6percent of taxable estimated market value, unless approved by resolution of the town
68.7electors.
68.8(c) If at any time the amounts available from the levy on property in the territory of
68.9the organization are insufficient to pay principal and interest on the bonds when due, the
68.10county shall make payment from any available funds in the county treasury.
68.11(d) The amount of any taxes which are required to be levied outside of the territory
68.12of the watershed management organization or unit or taken from the general funds of the
68.13county to pay principal or interest on the bonds shall be reimbursed to the county from
68.14taxes levied within the territory of the watershed management organization or unit.

68.15    Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
68.16    Subd. 2. Municipal funding of district. (a) The governing body or board of
68.17supervisors of each municipality in the district must provide the funds necessary to meet
68.18its proportion of the total cost determined by the board, provided the total funding from
68.19all municipalities in the district for the costs shall not exceed an amount equal to .00242
68.20percent of the total taxable estimated market value within the district, unless three-fourths
68.21of the municipalities in the district pass a resolution concurring to the additional costs.
68.22(b) The funds must be deposited in the treasury of the district in amounts and at
68.23times as the treasurer of the district requires.

68.24    Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
68.25    Subd. 2. Municipal funding of district. (a) The governing body or board of
68.26supervisors of each municipality in the district shall provide the funds necessary to meet its
68.27proportion of the total cost to be borne by the municipalities as finally certified by the board.
68.28(b) The municipality's funds may be raised by any means within the authority of
68.29the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
68.30taxable estimated market value on the taxable property located in the district to provide
68.31the funds. The levy shall be within all other limitations provided by law.
68.32(c) The funds must be deposited into the treasury of the district in amounts and at
68.33times as the treasurer of the district requires.

69.1    Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
69.2    Subd. 2. Organizational expense fund. (a) An organizational expense fund,
69.3consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated
69.4 market value, or $60,000, whichever is less. The money in the fund shall be used for
69.5organizational expenses and preparation of the watershed management plan for projects.
69.6(b) The managers may borrow from the affected counties up to 75 percent of the
69.7anticipated funds to be collected from the organizational expense fund levy and the
69.8counties affected may make the advancements.
69.9(c) The advancement of anticipated funds shall be apportioned among affected
69.10counties in the same ratio as the net tax capacity of the area of the counties within
69.11the watershed district bears to the net tax capacity of the entire watershed district. If a
69.12watershed district is enlarged, an organizational expense fund may be levied against the
69.13area added to the watershed district in the same manner as provided in this subdivision.
69.14(d) Unexpended funds collected for the organizational expense may be transferred to
69.15the administrative fund and used for the purposes of the administrative fund.

69.16    Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
69.17    Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may
69.18not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is
69.19less. The money in the fund shall be used for general administrative expenses and for
69.20the construction or implementation and maintenance of projects of common benefit to
69.21the watershed district. The managers may make an annual levy for the general fund as
69.22provided in section 103D.911. In addition to the annual general levy, the managers may
69.23annually levy a tax not to exceed 0.00798 percent of taxable estimated market value
69.24for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
69.25water management features of projects initiated by petition of a political subdivision
69.26within the watershed district or by petition of at least 50 resident owners whose property
69.27is within the watershed district.

69.28    Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
69.29    Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund
69.30is established and used only if other funds are not available to the watershed district to pay
69.31for making necessary surveys and acquiring data.
69.32(b) The survey and data acquisition fund consists of the proceeds of a property tax
69.33that can be levied only once every five years. The levy may not exceed 0.02418 percent of
69.34taxable estimated market value.
70.1(c) The balance of the survey and data acquisition fund may not exceed $50,000.
70.2(d) In a subsequent proceeding for a project where a survey has been made, the
70.3attributable cost of the survey as determined by the managers shall be included as a part of
70.4the cost of the work and the sum shall be repaid to the survey and data acquisition fund.

70.5    Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
70.6    Subd. 7. Structurally substandard. "Structurally substandard" means a building:
70.7(1) that was inspected by the appropriate local government and cited for one or more
70.8enforceable housing, maintenance, or building code violations;
70.9(2) in which the cited building code violations involve one or more of the following:
70.10(i) a roof and roof framing element;
70.11(ii) support walls, beams, and headers;
70.12(iii) foundation, footings, and subgrade conditions;
70.13(iv) light and ventilation;
70.14(v) fire protection, including egress;
70.15(vi) internal utilities, including electricity, gas, and water;
70.16(vii) flooring and flooring elements; or
70.17(viii) walls, insulation, and exterior envelope;
70.18(3) in which the cited housing, maintenance, or building code violations have not
70.19been remedied after two notices to cure the noncompliance; and
70.20(4) has uncured housing, maintenance, and building code violations, satisfaction of
70.21which would cost more than 50 percent of the assessor's taxable estimated market value
70.22for the building, excluding land value, as determined under section 273.11 for property
70.23taxes payable in the year in which the condemnation is commenced.
70.24A local government is authorized to seek from a judge or magistrate an administrative
70.25warrant to gain access to inspect a specific building in a proposed development or
70.26redevelopment area upon showing of probable cause that a specific code violation has
70.27occurred and that the violation has not been cured, and that the owner has denied the local
70.28government access to the property. Items of evidence that may support a conclusion of
70.29probable cause may include recent fire or police inspections, housing inspection, exterior
70.30evidence of deterioration, or other similar reliable evidence of deterioration in the specific
70.31building.

70.32    Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
70.33    Subdivision 1. Computation. The Department of Revenue must annually conduct
70.34an assessment/sales ratio study of the taxable property in each county, city, town, and
71.1school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
71.2results of this assessment/sales ratio study, the Department of Revenue must determine an
71.3aggregate equalized net tax capacity for the various classes of taxable property in each
71.4taxing district, the aggregate of which tax capacity shall be is designated as the adjusted net
71.5tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of
71.6tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution
71.7tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission
71.8lines required to be subtracted from the local tax base under section 273.425; and increased
71.9by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The
71.10adjusted net tax capacities shall be determined using the net tax capacity percentages in
71.11effect for the assessment year following the assessment year of the study. The Department
71.12of Revenue must make whatever estimates are necessary to account for changes in the
71.13classification system. The Department of Revenue may incur the expense necessary to
71.14make the determinations. The commissioner of revenue may reimburse any county or
71.15governmental official for requested services performed in ascertaining the adjusted net tax
71.16capacity. On or before March 15 annually, the Department of Revenue shall file with the
71.17chair of the Tax Committee of the house of representatives and the chair of the Committee
71.18on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school
71.19districts. On or before June 15 annually, the Department of Revenue shall file its final report
71.20on the adjusted net tax capacities for school districts established by the previous year's
71.21assessments and the current year's net tax capacity percentages with the commissioner of
71.22education and each county auditor for those school districts for which the auditor has the
71.23responsibility for determination of local tax rates. A copy of the report so filed shall be
71.24mailed to the clerk of each school district involved and to the county assessor or supervisor
71.25of assessments of the county or counties in which each school district is located.
71.26EFFECTIVE DATE.This section is effective the day following final enactment.

71.27    Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:
71.28138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
71.29TOWNS.
71.30The governing body of any home rule charter or statutory city or town may annually
71.31appropriate from its general fund an amount not to exceed 0.02418 percent of taxable
71.32 estimated market value, derived from ad valorem taxes on property or other revenues, to
71.33be paid to the historical society of its respective county to be used for the promotion of
71.34historical work and to aid in defraying the expenses of carrying on the historical work in the
72.1county. No city or town may appropriate any funds for the benefit of any historical society
72.2unless the society is affiliated with and approved by the Minnesota Historical Society.

72.3    Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
72.4    Subd. 4. Property tax levy authority. The district's board may levy a tax on the
72.5taxable real and personal property in the district. The ad valorem tax levy may not exceed
72.60.048 percent of the taxable estimated market value of the district or $400,000, whichever
72.7is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall
72.8certify the levy at the times as provided under section 275.07. The board shall provide the
72.9county with whatever information is necessary to identify the property that is located within
72.10the district. If the boundaries include a part of a parcel, the entire parcel shall be included
72.11in the district. The county auditors must spread, collect, and distribute the proceeds of the
72.12tax at the same time and in the same manner as provided by law for all other property taxes.

72.13    Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
72.14    Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596
72.15percent on each rural county's total taxable estimated market value for the last preceding
72.16calendar year shall be computed and shall be subtracted from the county's total estimated
72.17construction costs. The result thereof shall be the money needs of the county. For the
72.18purpose of this section, "rural counties" means all counties having a population of less
72.19than 175,000.

72.20    Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
72.21    Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967
72.22percent on each urban county's total taxable estimated market value for the last preceding
72.23calendar year shall be computed and shall be subtracted from the county's total estimated
72.24construction costs. The result thereof shall be the money needs of the county. For
72.25the purpose of this section, "urban counties" means all counties having a population
72.26of 175,000 or more.

72.27    Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
72.28    Subd. 3. Bridges within certain cities. When the council of any statutory city or
72.29city of the third or fourth class may determine that it is necessary to build or improve any
72.30bridge or bridges, including approaches thereto, and any dam or retaining works connected
72.31therewith, upon or forming a part of streets or highways either wholly or partly within
72.32its limits, the county board shall appropriate one-half of the money as may be necessary
73.1therefor from the county road and bridge fund, not exceeding during any year one-half
73.2the amount of taxes paid into the county road and bridge fund during the preceding year,
73.3on property within the corporate limits of the city. The appropriation shall be made upon
73.4the petition of the council, which petition shall be filed by the council with the county
73.5board prior to the fixing by the board of the annual county tax levy. The county board
73.6shall determine the plans and specifications, shall let all necessary contracts, shall have
73.7charge of construction, and upon its request, warrants in payment thereof shall be issued
73.8by the county auditor, from time to time, as the construction work proceeds. Any unpaid
73.9balance may be paid or advanced by the city. On petition of the council, the appropriations
73.10of the county board, during not to exceed three successive years, may be made to apply
73.11on the construction of the same items and to repay any money advanced by the city in
73.12the construction thereof. None of the provisions of this section shall be construed to
73.13be mandatory as applied to any city whose estimated market value exceeds $2,100 per
73.14capita of its population.

73.15    Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
73.16    Subd. 6. Expenditure in certain counties. In any county having not less than 95
73.17nor more than 105 full and fractional townships, and having a an estimated market value
73.18of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,
73.19 the county board, by resolution, may expend the funds provided in subdivision 4 in any
73.20organized or unorganized township or portion thereof in such county.

73.21    Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
73.22    Subdivision 1. Certain counties may issue and sell. The county board of any
73.23county having no outstanding road and bridge bonds may issue and sell county road bonds
73.24in an amount not exceeding 0.12089 percent of the estimated market value of the taxable
73.25property within the county exclusive of money and credits, for the purpose of constructing,
73.26reconstructing, improving, or maintaining any bridge or bridges on any highway under its
73.27jurisdiction, without submitting the matter to a vote of the electors of the county.

73.28    Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
73.29to read:
73.30    Subd. 14. Estimated market value. "Estimated market value" means the assessor's
73.31determination of market value, including the effects of any orders made under section
73.32270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain
73.33uses in determining the total estimated market value for the taxing jurisdiction.

74.1    Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision
74.2to read:
74.3    Subd. 15. Taxable market value. "Taxable market value" means estimated market
74.4value for the parcel as reduced by market value exclusions, deferments of value, or other
74.5adjustments required by law, that reduce market value before the application of class rates.

74.6    Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:
74.7273.032 MARKET VALUE DEFINITION.
74.8(a) Unless otherwise provided, for the purpose of determining any property tax
74.9levy limitation based on market value or any limit on net debt, the issuance of bonds,
74.10certificates of indebtedness, or capital notes based on market value, any qualification to
74.11receive state aid based on market value, or any state aid amount based on market value, the
74.12terms "market value," "taxable estimated market value," and "market valuation," whether
74.13equalized or unequalized, mean the total taxable estimated market value of taxable property
74.14within the local unit of government before any of the following or similar adjustments for:
74.15(1) the market value exclusions under:
74.16(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
74.17(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
74.18(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
74.19properties);
74.20(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
74.21(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
74.22(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
74.23caregiver);
74.24(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
74.25(2) the deferment of value under:
74.26(i) the Minnesota Agricultural Property Tax Law, section 273.111;
74.27(ii) the Aggregate Resource Preservation Law, section 273.1115;
74.28(iii) the Minnesota Open Space Property Tax Law, section 273.112;
74.29(iv) the rural preserves property tax program, section 273.114; or
74.30(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
74.31(3) the adjustments to tax capacity for:
74.32(i) tax increment, financing under sections 469.174 to 469.1794;
74.33(ii) fiscal disparity, disparities under chapter 276A or 473F; or
74.34(iii) powerline credit, or wind energy values, but after the limited market adjustments
74.35under section 273.11, subdivision 1a, and after the market value exclusions of certain
75.1improvements to homestead property under section 273.11, subdivision 16 under section
75.2273.425.
75.3(b) Estimated market value under paragraph (a) also includes the market value
75.4of tax-exempt property if the applicable law specifically provides that the limitation,
75.5qualification, or aid calculation includes tax-exempt property.
75.6(c) Unless otherwise provided, "market value," "taxable estimated market value,"
75.7and "market valuation" for purposes of this paragraph property tax levy limitations and
75.8calculation of state aid, refer to the taxable estimated market value for the previous
75.9assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of
75.10indebtedness, or capital notes refer to the estimated market value as last finally equalized.
75.11For the purpose of determining any net debt limit based on market value, or any limit
75.12on the issuance of bonds, certificates of indebtedness, or capital notes based on market
75.13value, the terms "market value," "taxable market value," and "market valuation," whether
75.14equalized or unequalized, mean the total taxable market value of property within the local
75.15unit of government before any adjustments for tax increment, fiscal disparity, powerline
75.16credit, or wind energy values, but after the limited market value adjustments under section
75.17273.11, subdivision 1a, and after the market value exclusions of certain improvements to
75.18homestead property under section 273.11, subdivision 16. Unless otherwise provided,
75.19"market value," "taxable market value," and "market valuation" for purposes of this
75.20paragraph, mean the taxable market value as last finally equalized.
75.21(d) For purposes of a provision of a home rule charter or of any special law that is not
75.22codified in the statutes and that imposes a levy limitation based on market value or any limit
75.23on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
75.24value, the terms "market value," "taxable market value," and "market valuation," whether
75.25equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

75.26    Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
75.27    Subdivision 1. Generally. Except as provided in this section or section 273.17,
75.28subdivision 1 , all property shall be valued at its market value. The market value as
75.29determined pursuant to this section shall be stated such that any amount under $100 is
75.30rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
75.31In estimating and determining such value, the assessor shall not adopt a lower or different
75.32standard of value because the same is to serve as a basis of taxation, nor shall the assessor
75.33adopt as a criterion of value the price for which such property would sell at a forced sale,
75.34or in the aggregate with all the property in the town or district; but the assessor shall value
75.35each article or description of property by itself, and at such sum or price as the assessor
76.1believes the same to be fairly worth in money. The assessor shall take into account the
76.2effect on the market value of property of environmental factors in the vicinity of the
76.3property. In assessing any tract or lot of real property, the value of the land, exclusive of
76.4structures and improvements, shall be determined, and also the value of all structures and
76.5improvements thereon, and the aggregate value of the property, including all structures
76.6and improvements, excluding the value of crops growing upon cultivated land. In valuing
76.7real property upon which there is a mine or quarry, it shall be valued at such price as such
76.8property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
76.9if the material being mined or quarried is not subject to taxation under section 298.015
76.10and the mine or quarry is not exempt from the general property tax under section 298.25.
76.11In valuing real property which is vacant, platted property shall be assessed as provided
76.12in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is
76.13taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market
76.14value of such property and not at the value of a leasehold estate in such property, or at
76.15some lesser value than its market value.

76.16    Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
76.17    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
76.18park is owned by a corporation or association organized under chapter 308A or 308B,
76.19and each person who owns a share or shares in the corporation or association is entitled
76.20to occupy a lot within the park, the corporation or association may claim homestead
76.21treatment for the park. Each lot must be designated by legal description or number, and
76.22each lot is limited to not more than one-half acre of land.
76.23(b) The manufactured home park shall be entitled to homestead treatment if all
76.24of the following criteria are met:
76.25(1) the occupant or the cooperative corporation or association is paying the ad
76.26valorem property taxes and any special assessments levied against the land and structure
76.27either directly, or indirectly through dues to the corporation or association; and
76.28(2) the corporation or association organized under chapter 308A or 308B is wholly
76.29owned by persons having a right to occupy a lot owned by the corporation or association.
76.30(c) A charitable corporation, organized under the laws of Minnesota with no
76.31outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
76.32tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
76.33park if its members hold residential participation warrants entitling them to occupy a lot
76.34in the manufactured home park.
77.1(d) "Homestead treatment" under this subdivision means the class rate provided for
77.2class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5),
77.3item (ii). The homestead market value credit exclusion under section 273.1384 273.13,
77.4subdivision 35, does not apply and the property taxes assessed against the park shall not
77.5be included in the determination of taxes payable for rent paid under section 290A.03.
77.6EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
77.7thereafter.

77.8    Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
77.9    Subd. 13. Homestead application. (a) A person who meets the homestead
77.10requirements under subdivision 1 must file a homestead application with the county
77.11assessor to initially obtain homestead classification.
77.12    (b) The format and contents of a uniform homestead application shall be prescribed
77.13by the commissioner of revenue. The application must clearly inform the taxpayer that
77.14this application must be signed by all owners who occupy the property or by the qualifying
77.15relative and returned to the county assessor in order for the property to receive homestead
77.16treatment.
77.17    (c) Every property owner applying for homestead classification must furnish to the
77.18county assessor the Social Security number of each occupant who is listed as an owner
77.19of the property on the deed of record, the name and address of each owner who does not
77.20occupy the property, and the name and Social Security number of each owner's spouse who
77.21occupies the property. The application must be signed by each owner who occupies the
77.22property and by each owner's spouse who occupies the property, or, in the case of property
77.23that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
77.24    If a property owner occupies a homestead, the property owner's spouse may not
77.25claim another property as a homestead unless the property owner and the property owner's
77.26spouse file with the assessor an affidavit or other proof required by the assessor stating that
77.27the property qualifies as a homestead under subdivision 1, paragraph (e).
77.28    Owners or spouses occupying residences owned by their spouses and previously
77.29occupied with the other spouse, either of whom fail to include the other spouse's name
77.30and Social Security number on the homestead application or provide the affidavits or
77.31other proof requested, will be deemed to have elected to receive only partial homestead
77.32treatment of their residence. The remainder of the residence will be classified as
77.33nonhomestead residential. When an owner or spouse's name and Social Security number
77.34appear on homestead applications for two separate residences and only one application is
78.1signed, the owner or spouse will be deemed to have elected to homestead the residence for
78.2which the application was signed.
78.3    The Social Security numbers, state or federal tax returns or tax return information,
78.4including the federal income tax schedule F required by this section, or affidavits or other
78.5proofs of the property owners and spouses submitted under this or another section to
78.6support a claim for a property tax homestead classification are private data on individuals as
78.7defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data
78.8may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the
78.9Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
78.10    (d) If residential real estate is occupied and used for purposes of a homestead by a
78.11relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
78.12order for the property to receive homestead status, a homestead application must be filed
78.13with the assessor. The Social Security number of each relative and spouse of a relative
78.14occupying the property shall be required on the homestead application filed under this
78.15subdivision. If a different relative of the owner subsequently occupies the property, the
78.16owner of the property must notify the assessor within 30 days of the change in occupancy.
78.17The Social Security number of a relative or relative's spouse occupying the property
78.18is private data on individuals as defined by section 13.02, subdivision 12, but may be
78.19disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
78.20Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
78.21    (e) The homestead application shall also notify the property owners that the
78.22application filed under this section will not be mailed annually and that if the property
78.23is granted homestead status for any assessment year, that same property shall remain
78.24classified as homestead until the property is sold or transferred to another person, or
78.25the owners, the spouse of the owner, or the relatives no longer use the property as their
78.26homestead. Upon the sale or transfer of the homestead property, a certificate of value must
78.27be timely filed with the county auditor as provided under section 272.115. Failure to
78.28notify the assessor within 30 days that the property has been sold, transferred, or that the
78.29owner, the spouse of the owner, or the relative is no longer occupying the property as a
78.30homestead, shall result in the penalty provided under this subdivision and the property
78.31will lose its current homestead status.
78.32    (f) If the homestead application is not returned within 30 days, the county will send a
78.33second application to the present owners of record. The notice of proposed property taxes
78.34prepared under section 275.065, subdivision 3, shall reflect the property's classification. If
78.35a homestead application has not been filed with the county by December 15, the assessor
78.36shall classify the property as nonhomestead for the current assessment year for taxes
79.1payable in the following year, provided that the owner may be entitled to receive the
79.2homestead classification by proper application under section 375.192.
79.3    (g) At the request of the commissioner, each county must give the commissioner a
79.4list that includes the name and Social Security number of each occupant of homestead
79.5property who is the property owner, property owner's spouse, qualifying relative of a
79.6property owner, or a spouse of a qualifying relative. The commissioner shall use the
79.7information provided on the lists as appropriate under the law, including for the detection
79.8of improper claims by owners, or relatives of owners, under chapter 290A.
79.9    (h) If the commissioner finds that a property owner may be claiming a fraudulent
79.10homestead, the commissioner shall notify the appropriate counties. Within 90 days of
79.11the notification, the county assessor shall investigate to determine if the homestead
79.12classification was properly claimed. If the property owner does not qualify, the county
79.13assessor shall notify the county auditor who will determine the amount of homestead
79.14benefits that had been improperly allowed. For the purpose of this section, "homestead
79.15benefits" means the tax reduction resulting from the classification as a homestead and the
79.16homestead market value exclusion under section 273.13, the taconite homestead credit
79.17under section 273.135, the residential homestead and agricultural homestead credits credit
79.18 under section 273.1384, and the supplemental homestead credit under section 273.1391.
79.19    The county auditor shall send a notice to the person who owned the affected property
79.20at the time the homestead application related to the improper homestead was filed,
79.21demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
79.22of the homestead benefits. The person notified may appeal the county's determination
79.23by serving copies of a petition for review with county officials as provided in section
79.24278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
79.25Court within 60 days of the date of the notice from the county. Procedurally, the appeal
79.26is governed by the provisions in chapter 271 which apply to the appeal of a property tax
79.27assessment or levy, but without requiring any prepayment of the amount in controversy. If
79.28the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
79.29has been filed, the county auditor shall certify the amount of taxes and penalty to the county
79.30treasurer. The county treasurer will add interest to the unpaid homestead benefits and
79.31penalty amounts at the rate provided in section 279.03 for real property taxes becoming
79.32delinquent in the calendar year during which the amount remains unpaid. Interest may be
79.33assessed for the period beginning 60 days after demand for payment was made.
79.34    If the person notified is the current owner of the property, the treasurer may add the
79.35total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
79.36otherwise payable on the property by including the amounts on the property tax statements
80.1under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
80.2valorem taxes shall include interest accrued through December 31 of the year preceding
80.3the taxes payable year for which the amounts are first added. These amounts, when added
80.4to the property tax statement, become subject to all the laws for the enforcement of real or
80.5personal property taxes for that year, and for any subsequent year.
80.6    If the person notified is not the current owner of the property, the treasurer may
80.7collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
80.8the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
80.9of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
80.10tax obligations of the person who owned the property at the time the application related to
80.11the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
80.12personal liability for the homestead benefits, penalty, interest, and costs, and instead extend
80.13those amounts on the tax lists against the property as provided in this paragraph to the extent
80.14that the current owner agrees in writing. On all demands, billings, property tax statements,
80.15and related correspondence, the county must list and state separately the amounts of
80.16homestead benefits, penalty, interest and costs being demanded, billed or assessed.
80.17    (i) Any amount of homestead benefits recovered by the county from the property
80.18owner shall be distributed to the county, city or town, and school district where the
80.19property is located in the same proportion that each taxing district's levy was to the total
80.20of the three taxing districts' levy for the current year. Any amount recovered attributable
80.21to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
80.22deposited in the taconite property tax relief account. Any amount recovered that is
80.23attributable to supplemental homestead credit is to be transmitted to the commissioner of
80.24revenue for deposit in the general fund of the state treasury. The total amount of penalty
80.25collected must be deposited in the county general fund.
80.26    (j) If a property owner has applied for more than one homestead and the county
80.27assessors cannot determine which property should be classified as homestead, the county
80.28assessors will refer the information to the commissioner. The commissioner shall make
80.29the determination and notify the counties within 60 days.
80.30    (k) In addition to lists of homestead properties, the commissioner may ask the
80.31counties to furnish lists of all properties and the record owners. The Social Security
80.32numbers and federal identification numbers that are maintained by a county or city
80.33assessor for property tax administration purposes, and that may appear on the lists retain
80.34their classification as private or nonpublic data; but may be viewed, accessed, and used by
80.35the county auditor or treasurer of the same county for the limited purpose of assisting the
80.36commissioner in the preparation of microdata samples under section 270C.12.
81.1    (l) On or before April 30 each year beginning in 2007, each county must provide the
81.2commissioner with the following data for each parcel of homestead property by electronic
81.3means as defined in section 289A.02, subdivision 8:
81.4    (i) the property identification number assigned to the parcel for purposes of taxes
81.5payable in the current year;
81.6    (ii) the name and Social Security number of each occupant of homestead property
81.7who is the property owner, property owner's spouse, qualifying relative of a property
81.8owner, or spouse of a qualifying relative;
81.9    (iii) the classification of the property under section 273.13 for taxes payable in the
81.10current year and in the prior year;
81.11    (iv) an indication of whether the property was classified as a homestead for taxes
81.12payable in the current year because of occupancy by a relative of the owner or by a
81.13spouse of a relative;
81.14    (v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
81.15current year and the prior year;
81.16    (vi) the market value of improvements to the property first assessed for tax purposes
81.17for taxes payable in the current year;
81.18    (vii) the assessor's estimated market value assigned to the property for taxes payable
81.19in the current year and the prior year;
81.20    (viii) the taxable market value assigned to the property for taxes payable in the
81.21current year and the prior year;
81.22    (ix) whether there are delinquent property taxes owing on the homestead;
81.23    (x) the unique taxing district in which the property is located; and
81.24    (xi) such other information as the commissioner decides is necessary.
81.25    The commissioner shall use the information provided on the lists as appropriate
81.26under the law, including for the detection of improper claims by owners, or relatives
81.27of owners, under chapter 290A.
81.28EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
81.29thereafter.

81.30    Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
81.31    Subd. 21b. Net tax capacity. (a) Gross tax capacity means the product of the
81.32appropriate gross class rates in this section and market values.
81.33(b) Net tax capacity means the product of the appropriate net class rates in this
81.34section and taxable market values.
82.1EFFECTIVE DATE.This section is effective the day following final enactment.

82.2    Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
82.3    Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each
82.4taxing district within each unique taxing jurisdiction for taxes payable in the prior year
82.5shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
82.6taxes payable in the year for which aid is being computed, to (2) its tax capacity using
82.7the class rates for taxes payable in the year prior to that for which aid is being computed,
82.8both based upon taxable market values for taxes payable in the year prior to that for which
82.9aid is being computed. If the commissioner determines that insufficient information is
82.10available to reasonably and timely calculate the numerator in this ratio for the first taxes
82.11payable year that a class rate change or new class rate is effective, the commissioner shall
82.12omit the effects of that class rate change or new class rate when calculating this ratio for
82.13aid payable in that taxes payable year. For aid payable in the year following a year for
82.14which such omission was made, the commissioner shall use in the denominator for the
82.15class that was changed or created, the tax capacity for taxes payable two years prior to that
82.16in which the aid is payable, based on taxable market values for taxes payable in the year
82.17prior to that for which aid is being computed.

82.18    Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
82.19    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
82.20class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
82.21is located in a border city that has an enterprise zone, as defined in section 469.166; (2)
82.22the property is located in a city with a population greater than 2,500 and less than 35,000
82.23according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
82.24immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
82.25in the other state has a population of greater than 5,000 and less than 75,000 according to
82.26the 1980 decennial census.
82.27    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
82.28property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a
82.29property to 2.3 percent of taxable market value.
82.30    (c) The county auditor shall annually certify the costs of the credits to the
82.31Department of Revenue. The department shall reimburse local governments for the
82.32property taxes forgone as the result of the credits in proportion to their total levies.

82.33    Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:
83.1    Subdivision 1. Determination of levy limit. The property tax levied for any
83.2purpose under a special law that is not codified in Minnesota Statutes or a city charter
83.3provision and that is subject to a mill rate limitation imposed by the special law or city
83.4charter provision, excluding levies subject to mill rate limitations that use adjusted
83.5assessed values determined by the commissioner of revenue under section 124.2131, must
83.6not exceed the following amount for the years specified:
83.7(a) for taxes payable in 1988, the product of the applicable mill rate limitation
83.8imposed by special law or city charter provision multiplied by the total assessed valuation
83.9of all taxable property subject to the tax as adjusted by the provisions of Minnesota
83.10Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
83.11(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
83.12the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
83.13market valuation changes equal to the assessment year 1988 total market valuation of all
83.14taxable property subject to the tax divided by the assessment year 1987 total market
83.15valuation of all taxable property subject to the tax; and
83.16(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
83.17tax levy limitation for the previous year determined pursuant to this subdivision multiplied
83.18by (2) an index for market valuation changes equal to the total market valuation of all
83.19taxable property subject to the tax for the current assessment year divided by the total
83.20market valuation of all taxable property subject to the tax for the previous assessment year.
83.21For the purpose of determining the property tax levy limitation for the taxes payable
83.22year 1988 2014 and subsequent years under this subdivision, "total market valuation"
83.23means the total estimated market valuation value of all taxable property subject to the
83.24tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax
83.25increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)
83.26 as provided under section 273.032.

83.27    Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
83.28    Subd. 2. Correction of levy amount. The difference between the correct levy and
83.29the erroneous levy shall be added to the township levy for the subsequent levy year;
83.30provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated
83.31 market value, the excess shall be added to the township levy for the second and later
83.32subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
83.33 estimated market value in any year, until the full amount of the difference has been levied.
83.34The funds collected from the corrected levies shall be used to reimburse the county for the
83.35payment required by subdivision 1.

84.1    Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
84.2    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the
84.3adjusted levy limit base is equal to the levy limit base computed under subdivision 2
84.4or section 275.72, multiplied by:
84.5    (1) one plus the percentage growth in the implicit price deflator, but the percentage
84.6shall not be less than zero or exceed 3.9 percent;
84.7    (2) one plus a percentage equal to 50 percent of the percentage increase in the number
84.8of households, if any, for the most recent 12-month period for which data is available; and
84.9    (3) one plus a percentage equal to 50 percent of the percentage increase in the
84.10taxable estimated market value of the jurisdiction due to new construction of class 3
84.11property, as defined in section 273.13, subdivision 4, except for state-assessed utility and
84.12railroad property, for the most recent year for which data is available.

84.13    Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
84.14    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
84.15of the tax statements. The commissioner of revenue shall prescribe the form of the property
84.16tax statement and its contents. The tax statement must not state or imply that property tax
84.17credits are paid by the state of Minnesota. The statement must contain a tabulated statement
84.18of the dollar amount due to each taxing authority and the amount of the state tax from the
84.19parcel of real property for which a particular tax statement is prepared. The dollar amounts
84.20attributable to the county, the state tax, the voter approved school tax, the other local school
84.21tax, the township or municipality, and the total of the metropolitan special taxing districts
84.22as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
84.23The amounts due all other special taxing districts, if any, may be aggregated except that
84.24any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
84.25Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
84.26line directly under the appropriate county's levy. If the county levy under this paragraph
84.27includes an amount for a lake improvement district as defined under sections 103B.501
84.28to 103B.581, the amount attributable for that purpose must be separately stated from the
84.29remaining county levy amount. In the case of Ramsey County, if the county levy under this
84.30paragraph includes an amount for public library service under section 134.07, the amount
84.31attributable for that purpose may be separated from the remaining county levy amount.
84.32The amount of the tax on homesteads qualifying under the senior citizens' property tax
84.33deferral program under chapter 290B is the total amount of property tax before subtraction
84.34of the deferred property tax amount. The amount of the tax on contamination value
84.35imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
85.1amounts, including the dollar amount of any special assessments, may be rounded to the
85.2nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
85.3be adjusted to the next higher even-numbered dollar. The amount of market value excluded
85.4under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
85.5    (b) The property tax statements for manufactured homes and sectional structures
85.6taxed as personal property shall contain the same information that is required on the
85.7tax statements for real property.
85.8    (c) Real and personal property tax statements must contain the following information
85.9in the order given in this paragraph. The information must contain the current year tax
85.10information in the right column with the corresponding information for the previous year
85.11in a column on the left:
85.12    (1) the property's estimated market value under section 273.11, subdivision 1;
85.13(2) the property's homestead market value exclusion under section 273.13,
85.14subdivision 35;
85.15    (3) the property's taxable market value after reductions under sections 273.11,
85.16subdivisions 1a and 16, and 273.13, subdivision 35 section 272.03, subdivision 15;
85.17    (4) the property's gross tax, before credits;
85.18    (5) for homestead agricultural properties, the credit under section 273.1384;
85.19    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
85.20273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
85.21credit received under section 273.135 must be separately stated and identified as "taconite
85.22tax relief"; and
85.23    (7) the net tax payable in the manner required in paragraph (a).
85.24    (d) If the county uses envelopes for mailing property tax statements and if the county
85.25agrees, a taxing district may include a notice with the property tax statement notifying
85.26taxpayers when the taxing district will begin its budget deliberations for the current
85.27year, and encouraging taxpayers to attend the hearings. If the county allows notices to
85.28be included in the envelope containing the property tax statement, and if more than
85.29one taxing district relative to a given property decides to include a notice with the tax
85.30statement, the county treasurer or auditor must coordinate the process and may combine
85.31the information on a single announcement.

85.32    Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
85.33    Subd. 10. Adjusted market value. "Adjusted market value" of real and personal
85.34property within a municipality means the assessor's estimated taxable market value,
85.35as defined in section 272.03, of all real and personal property, including the value of
86.1manufactured housing, within the municipality. For purposes of sections 276A.01 to
86.2276A.09, the commissioner of revenue shall annually make determinations and reports
86.3with respect to each municipality which are comparable to those it makes for school
86.4districts, adjusted for sales ratios in a manner similar to the adjustments made to city and
86.5town net tax capacities under section 127A.48, subdivisions 1 to 6, in the same manner
86.6and at the same times prescribed by the subdivision. The commissioner of revenue shall
86.7annually determine, for each municipality, information comparable to that required by
86.8section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes
86.9available. The commissioner of revenue shall then compute the equalized market value of
86.10property within each municipality.
86.11EFFECTIVE DATE.This section is effective the day following final enactment.

86.12    Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
86.13    Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
86.14 adjusted market value, determined as of January 2 of any year, divided by its population,
86.15determined as of a date in the same year.

86.16    Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
86.17    Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities
86.18means the sum of the valuations adjusted market values of all municipalities, determined
86.19as of January 2 of any year, divided by the sum of their populations, determined as of
86.20a date in the same year.

86.21    Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
86.22    Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of
86.23real and personal property multiplied by its net tax capacity rates in section 273.13.

86.24    Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
86.25    Subd. 10. Adjustment of values for other computations. For the purpose of
86.26computing the amount or rate of any salary, aid, tax, or debt authorized, required, or
86.27limited by any provision of any law or charter, where the authorization, requirement, or
86.28limitation is related to any value or valuation of taxable property within any governmental
86.29unit, the value or net tax capacity fiscal capacity under section 276A.01, subdivision 12, a
86.30municipality's taxable market value must be adjusted to reflect the adjustments reductions
86.31 to net tax capacity effected by subdivision 2, clause (a), provided that: (1) in determining
86.32the taxable market value of commercial-industrial property or any class thereof within
87.1a governmental unit for any purpose other than section 276A.05 municipality, (a) the
87.2reduction required by this subdivision is that amount which bears the same proportion to
87.3the amount subtracted from the governmental unit's municipality's net tax capacity pursuant
87.4to subdivision 2, clause (a), as the taxable market value of commercial-industrial property,
87.5or such class thereof, located within the governmental unit municipality bears to the net
87.6tax capacity of commercial-industrial property, or such class thereof, located within the
87.7governmental unit, and (b) the increase required by this subdivision is that amount which
87.8bears the same proportion to the amount added to the governmental unit's net tax capacity
87.9pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property,
87.10or such class thereof, located within the governmental unit bears to the net tax capacity of
87.11commercial-industrial property, or such class thereof, located within the governmental unit;
87.12and (2) in determining the market value of real property within a municipality for purposes
87.13of section 276A.05, the adjustment prescribed by clause (1)(a) must be made and that
87.14prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made
87.15to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).

87.16    Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:
87.17287.08 TAX, HOW PAYABLE; RECEIPTS.
87.18    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of
87.19any county in this state in which the real property or some part is located at or before
87.20the time of filing the mortgage for record. The treasurer shall endorse receipt on the
87.21mortgage and the receipt is conclusive proof that the tax has been paid in the amount
87.22stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
87.23form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
87.24mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
87.25registration tax." In either case the receipt must be signed by the treasurer. In case the
87.26treasurer is unable to determine whether a claim of exemption should be allowed, the tax
87.27must be paid as in the case of a taxable mortgage. For documents submitted electronically,
87.28the endorsements and tax amount shall be affixed electronically and no signature by the
87.29treasurer will be required. The actual payment method must be arranged in advance
87.30between the submitter and the receiving county.
87.31    (b) The county treasurer may refund in whole or in part any mortgage registry tax
87.32overpayment if a written application by the taxpayer is submitted to the county treasurer
87.33within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
87.34of the application, the taxpayer may bring an action in Tax Court in the county in which
87.35the tax was paid at any time after the expiration of six months from the time that the
88.1application was submitted. A denial of refund may be appealed within 60 days from
88.2the date of the denial by bringing an action in Tax Court in the county in which the tax
88.3was paid. The action is commenced by the serving of a petition for relief on the county
88.4treasurer, and by filing a copy with the court. The county attorney shall defend the action.
88.5The county treasurer shall notify the treasurer of each county that has or would receive a
88.6portion of the tax as paid.
88.7    (c) If the county treasurer determines a refund should be paid, or if a refund is
88.8ordered by the court, the county treasurer of each county that actually received a portion
88.9of the tax shall immediately pay a proportionate share of three percent of the refund
88.10using any available county funds. The county treasurer of each county that received, or
88.11would have received, a portion of the tax shall also pay their county's proportionate share
88.12of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
88.13following month using solely the mortgage registry tax funds that would be paid to the
88.14commissioner of revenue on that date under section 287.12. If the funds on hand under
88.15this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
88.16county treasurer of the county in which the action was brought shall file a claim with the
88.17commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of
88.18the refund, and shall pay over the remaining portion upon receipt of a warrant from the
88.19state issued pursuant to the claim.
88.20    (d) When any mortgage covers real property located in more than one county in this
88.21state the total tax must be paid to the treasurer of the county where the mortgage is first
88.22presented for recording, and the payment must be receipted as provided in paragraph
88.23(a). If the principal debt or obligation secured by such a multiple county mortgage
88.24exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
88.25the county treasurer receiving it, on or before the 20th day of each month after receipt,
88.26to the county or counties entitled in the ratio that the estimated market value of the real
88.27property covered by the mortgage in each county bears to the estimated market value of
88.28all the real property in this state described in the mortgage. In making the division and
88.29payment the county treasurer shall send a statement giving the description of the real
88.30property described in the mortgage and the estimated market value of the part located in
88.31each county. For this purpose, the treasurer of any county may require the treasurer of
88.32any other county to certify to the former the estimated market valuation value of any tract
88.33of real property in any mortgage.
88.34    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The
88.35mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
88.36mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
89.1the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
89.2amount of the tax collected for that purpose and the mortgagor is relieved of any further
89.3obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

89.4    Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
89.5    Subdivision 1. Real property outside county. If any taxable deed or instrument
89.6describes any real property located in more than one county in this state, the total tax must
89.7be paid to the treasurer of the county where the document is first presented for recording,
89.8and the payment must be receipted as provided in section 287.08. If the net consideration
89.9exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
89.10county treasurer receiving it, on or before the 20th day of each month after receipt, to
89.11the county or counties entitled in the ratio which the estimated market value of the real
89.12property covered by the document in each county bears to the estimated market value of
89.13all the real property in this state described in the document. In making the division and
89.14payment the county treasurer shall send a statement to the other involved counties giving
89.15the description of the real property described in the document and the estimated market
89.16value of the part located in each county. The treasurer of any county may require the
89.17treasurer of any other county to certify to the former the estimated market valuation value
89.18 of any parcel of real property for this purpose.

89.19    Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
89.20    Subd. 2. Cash flow funding requirement. If the executive director determines that
89.21an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
89.22insufficient assets to meet the service pensions determined payable from the account,
89.23the executive director shall certify the amount of the potential service pension shortfall
89.24to the municipality or municipalities and the municipality or municipalities shall make
89.25an additional employer contribution to the account within ten days of the certification.
89.26If more than one municipality is associated with the account, unless the municipalities
89.27agree to a different allocation, the municipalities shall allocate the additional employer
89.28contribution one-half in proportion to the population of each municipality and one-half in
89.29proportion to the estimated market value of the property of each municipality.

89.30    Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
89.31    Subd. 4. Major purchases: notice, petition, election. Before buying anything
89.32under subdivision 2 that costs more than 0.24177 percent of the estimated market value of
89.33the town, the town must follow this subdivision.
90.1The town must publish in its official newspaper the board's resolution to pay for the
90.2property over time. Then a petition for an election on the contract may be filed with the
90.3clerk. The petition must be filed within ten days after the resolution is published. To require
90.4the election the petition must be signed by a number of voters equal to ten percent of the
90.5voters at the last regular town election. The contract then must be approved by a majority of
90.6those voting on the question. The question may be voted on at a regular or special election.

90.7    Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
90.8    Subdivision 1. Certificates of indebtedness. The town board may issue certificates
90.9of indebtedness within the debt limits for a town purpose otherwise authorized by law.
90.10The certificates shall be payable in not more than ten years and be issued on the terms and
90.11in the manner as the board may determine. If the amount of the certificates to be issued
90.12exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
90.13for at least ten days after publication in a newspaper of general circulation in the town of
90.14the board's resolution determining to issue them. If within that time, a petition asking for
90.15an election on the proposition signed by voters equal to ten percent of the number of voters
90.16at the last regular town election is filed with the clerk, the certificates shall not be issued
90.17until their issuance has been approved by a majority of the votes cast on the question at
90.18a regular or special election. A tax levy shall be made to pay the principal and interest
90.19on the certificates as in the case of bonds.

90.20    Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:
90.21366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
90.22The town board of any town in this state having therein a platted portion on
90.23which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
90.24association is located may each year levy a tax not to exceed 0.00806 percent of taxable
90.25 estimated market value for the benefit of the relief association.

90.26    Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
90.27    Subd. 23. Financing purchase of certain equipment. The town board may issue
90.28certificates of indebtedness within debt limits to purchase fire or police equipment or
90.29ambulance equipment or street construction or maintenance equipment. The certificates
90.30shall be payable in not more than five years and be issued on terms and in the manner as the
90.31board may determine. If the amount of the certificates to be issued to finance a purchase
90.32exceeds 0.24177 percent of the estimated market value of the town, excluding money
90.33and credits, they shall not be issued for at least ten days after publication in the official
91.1newspaper of a town board resolution determining to issue them. If before the end of that
91.2time, a petition asking for an election on the proposition signed by voters equal to ten
91.3percent of the number of voters at the last regular town election is filed with the clerk, the
91.4certificates shall not be issued until the proposition of their issuance has been approved by a
91.5majority of the votes cast on the question at a regular or special election. A tax levy shall be
91.6made for the payment of the principal and interest on the certificates as in the case of bonds.

91.7    Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:
91.8368.47 TOWNS MAY BE DISSOLVED.
91.9(1) When the voters residing within a town have failed to elect any town officials for
91.10more than ten years continuously;
91.11(2) when a town has failed for a period of ten years to exercise any of the powers
91.12and functions of a town;
91.13(3) when the estimated market value of a town drops to less than $165,000;
91.14(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
91.15unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
91.1612 percent of its market value; or
91.17(5) when the state or federal government has acquired title to 50 percent of the
91.18real estate of a town,
91.19which facts, or any of them, may be found and determined by the resolution of the county
91.20board of the county in which the town is located, according to the official records in the
91.21office of the county auditor, the county board by resolution may declare the town, naming
91.22it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
91.23In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
91.24of the town shall express their approval or disapproval. The town clerk shall, upon a
91.25petition signed by a majority of the registered voters of the town, filed with the clerk at
91.26least 60 days before a regular or special town election, give notice at the same time and
91.27in the same manner of the election that the question of dissolution of the town will be
91.28submitted for determination at the election. At the election the question shall be voted
91.29upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
91.30dissolution." The ballot shall be deposited in a separate ballot box and the result of the
91.31voting canvassed, certified, and returned in the same manner and at the same time as
91.32other facts and returns of the election. If a majority of the votes cast at the election are
91.33for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
91.34are against dissolution, the town shall not be dissolved.
92.1When a town is dissolved under sections 368.47 to 368.49 the county shall acquire
92.2title to any telephone company or other business conducted by the town. The business
92.3shall be operated by the board of county commissioners until it can be sold. The
92.4subscribers or patrons of the business shall have the first opportunity of purchase. If the
92.5town has any outstanding indebtedness chargeable to the business, the county auditor shall
92.6levy a tax against the property situated in the dissolved town to pay the indebtedness
92.7as it becomes due.

92.8    Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:
92.9370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
92.10The boundaries of counties may be changed by taking territory from a county and
92.11attaching it to an adjoining county, and new counties may be established out of territory of
92.12one or more existing counties. A new county shall contain at least 400 square miles and
92.13have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated
92.14 market value of at least 35 percent of (i) the total taxable estimated market value of the
92.15existing county, or (ii) the average total taxable estimated market value of the existing
92.16counties, included in the proposition. The determination of the taxable estimated market
92.17value of a county must be made by the commissioner of revenue. An existing county shall
92.18not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
92.19total taxable estimated market value of less than that required of a new county.
92.20No change in the boundaries of any county having an area of more than 2,500 square
92.21miles, whether by the creation of a new county, or otherwise, shall detach from the existing
92.22county any territory within 12 miles of the county seat.

92.23    Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
92.24    Subdivision 1. Definitions. For purposes of this section, the following terms have
92.25the meanings given.
92.26(a) "Bonds" means an obligation as defined under section 475.51.
92.27(b) "Capital improvement" means acquisition or betterment of public lands,
92.28buildings, or other improvements within the county for the purpose of a county courthouse,
92.29administrative building, health or social service facility, correctional facility, jail, law
92.30enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
92.31bridges, and the acquisition of development rights in the form of conservation easements
92.32under chapter 84C. An improvement must have an expected useful life of five years or
92.33more to qualify. "Capital improvement" does not include a recreation or sports facility
92.34building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
93.1swimming pool, exercise room or health spa), unless the building is part of an outdoor
93.2park facility and is incidental to the primary purpose of outdoor recreation.
93.3(c) "Metropolitan county" means a county located in the seven-county metropolitan
93.4area as defined in section 473.121 or a county with a population of 90,000 or more.
93.5(d) "Population" means the population established by the most recent of the
93.6following (determined as of the date the resolution authorizing the bonds was adopted):
93.7(1) the federal decennial census,
93.8(2) a special census conducted under contract by the United States Bureau of the
93.9Census, or
93.10(3) a population estimate made either by the Metropolitan Council or by the state
93.11demographer under section 4A.02.
93.12(e) "Qualified indoor ice arena" means a facility that meets the requirements of
93.13section 373.43.
93.14(f) "Tax capacity" means total taxable market value, but does not include captured
93.15market value.

93.16    Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
93.17    Subd. 4. Limitations on amount. A county may not issue bonds under this section
93.18if the maximum amount of principal and interest to become due in any year on all the
93.19outstanding bonds issued pursuant to this section (including the bonds to be issued) will
93.20equal or exceed 0.12 percent of taxable the estimated market value of property in the
93.21county. Calculation of the limit must be made using the taxable estimated market value for
93.22the taxes payable year in which the obligations are issued and sold. This section does not
93.23limit the authority to issue bonds under any other special or general law.

93.24    Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
93.25    Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board
93.26may appropriate from the general revenue fund to any nonprofit corporation a sum not
93.27to exceed 0.00604 percent of taxable estimated market value to provide legal assistance
93.28to persons who are unable to afford private legal counsel.

93.29    Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
93.30    Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a
93.31suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
93.32amount equal to a levy of 0.04030 percent of taxable estimated market value without the
94.1approval of a majority of the voters of the county voting on the question of issuing the
94.2obligation at an election.

94.3    Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:
94.4375.555 FUNDING.
94.5To implement the county emergency jobs program, the county board may expend
94.6an amount equal to what would be generated by a levy of 0.01209 percent of taxable
94.7 estimated market value. The money to be expended may be from any available funds
94.8not otherwise earmarked.

94.9    Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:
94.10383B.152 BUILDING AND MAINTENANCE FUND.
94.11The county board may by resolution levy a tax to provide money which shall be kept
94.12in a fund known as the county reserve building and maintenance fund. Money in the fund
94.13shall be used solely for the construction, maintenance, and equipping of county buildings
94.14that are constructed or maintained by the board. The levy shall not be subject to any limit
94.15fixed by any other law or by any board of tax levy or other corresponding body, but shall
94.16not exceed 0.02215 percent of taxable estimated market value, less the amount required by
94.17chapter 475 to be levied in the year for the payment of the principal of and interest on all
94.18bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.

94.19    Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:
94.20383B.245 LIBRARY LEVY.
94.21    (a) The county board may levy a tax on the taxable property within the county to
94.22acquire, better, and construct county library buildings and branches and to pay principal
94.23and interest on bonds issued for that purpose.
94.24    (b) The county board may by resolution adopted by a five-sevenths vote issue and
94.25sell general obligation bonds of the county in the manner provided in sections 475.60 to
94.26475.73 . The bonds shall not be subject to the limitations of sections 475.51 to 475.59,
94.27but the maturity years and amounts and interest rates of each series of bonds shall be
94.28fixed so that the maximum amount of principal and interest to become due in any year,
94.29on the bonds of that series and of all outstanding series issued by or for the purposes of
94.30libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value
94.31of all taxable property in the county as last finally equalized before the issuance of the new
94.32series. When the tax levy authorized in this section is collected it shall be appropriated
95.1and credited to a debt service fund for the bonds in amounts required each year in lieu of a
95.2countywide tax levy for the debt service fund under section 475.61.

95.3    Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
95.4    Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park
95.5District as set forth in its annual budget, in lieu of the levies authorized by any other
95.6special law for such purposes, the Board of Park District Commissioners may levy taxes
95.7on all the taxable property in the county and park district at a rate not exceeding 0.03224
95.8percent of estimated market value. Notwithstanding section 398.16, on or before October
95.91 of each year, after public hearing, the Board of Park District Commissioners shall adopt
95.10a budget for the ensuing year and shall determine the total amount necessary to be raised
95.11from ad valorem tax levies to meet its budget. The Board of Park District Commissioners
95.12shall submit the budget to the county board. The county board may veto or modify an item
95.13contained in the budget. If the county board determines to veto or to modify an item in the
95.14budget, it must, within 15 days after the budget was submitted by the district board, state
95.15in writing the specific reasons for its objection to the item vetoed or the reason for the
95.16modification. The Park District Board, after consideration of the county board's objections
95.17and proposed modifications, may reapprove a vetoed item or the original version of an item
95.18with respect to which a modification has been proposed, by a two-thirds majority. If the
95.19district board does not reapprove a vetoed item, the item shall be deleted from the budget.
95.20If the district board does not reapprove the original version of a modified item, the item
95.21shall be included in the budget as modified by the county board. After adoption of the final
95.22budget and no later than October 1, the superintendent of the park district shall certify to the
95.23office of the Hennepin County director of tax and public records exercising the functions
95.24of the county auditor the total amount to be raised from ad valorem tax levies to meet its
95.25budget for the ensuing year. The director of tax and public records shall add the amount of
95.26any levy certified by the district to other tax levies on the property of the county within the
95.27district for collection by the director of tax and public records with other taxes. When
95.28collected, the director shall make settlement of such taxes with the district in the same
95.29manner as other taxes are distributed to the other political subdivisions in Hennepin County.

95.30    Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:
95.31383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
95.32    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
95.33and sell general obligation bonds of the county in the manner provided in chapter 475 to
95.34acquire, better, and construct county library buildings. The bonds shall not be subject to the
96.1requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
96.2rates of each series of bonds shall be fixed so that the maximum amount of principal and
96.3interest to become due in any year, on the bonds of that series and of all outstanding series
96.4issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
96.5of the taxable estimated market value of all taxable property in the county, excluding any
96.6taxable property taxed by any city for the support of any free public library. When the tax
96.7levy authorized in this section is collected, it shall be appropriated and credited to a debt
96.8service fund for the bonds. The tax levy for the debt service fund under section 475.61
96.9shall be reduced by the amount available or reasonably anticipated to be available in the
96.10fund to make payments otherwise payable from the levy pursuant to section 475.61.

96.11    Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:
96.12383E.23 LIBRARY TAX.
96.13The Anoka County Board may levy a tax of not more than .01 percent of the taxable
96.14 estimated market value of taxable property located within the county excluding any
96.15taxable property taxed by any city for the support of any free public library, to acquire,
96.16better, and construct county library buildings and to pay principal and interest on bonds
96.17issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
96.18on levies provided by section 373.40, or other law.

96.19    Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:
96.20385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
96.21When any order or warrant drawn on the treasurer is presented for payment, if there
96.22is money in the treasury for that purpose, the county treasurer shall redeem the same, and
96.23write across the entire face thereof the word "redeemed," the date of the redemption, and
96.24the treasurer's official signature. If there is not sufficient funds in the proper accounts to
96.25pay such orders they shall be numbered and registered in their order of presentation,
96.26and proper endorsement thereof shall be made on such orders and they shall be entitled
96.27to payment in like order. Such orders shall bear interest at not to exceed the rate of six
96.28percent per annum from such date of presentment. The treasurer, as soon as there is
96.29sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
96.30payment of the orders so presented and registered, and, if entitled to interest, issue to the
96.31original holder a notice that interest will cease in 30 days from the date of such notice; and,
96.32if orders thus entitled to priority of payment are not then presented, the next in order of
96.33registry may be paid until such orders are presented. No interest shall be paid on any order,
96.34except upon a warrant drawn by the county auditor for that purpose, giving the number
97.1and the date of the order on account of which the interest warrant is drawn. In any county
97.2in this state now or hereafter having a an estimated market value of all taxable property,
97.3exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in
97.4order to save payment of interest on county warrants drawn upon a fund in which there
97.5shall be temporarily insufficient money in the treasury to redeem the same, may borrow
97.6temporarily from any other fund in the county treasury in which there is a sufficient balance
97.7to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
97.8and may pay such warrants out of such funds. Any such money so transferred and used in
97.9redeeming such county warrants shall be returned to the fund from which drawn as soon
97.10as money shall come in to the credit of such fund on which any such warrant was drawn
97.11and paid as aforesaid. Any county operating on a cash basis may use a combined form of
97.12warrant or order and check, which, when signed by the chair of the county board and by
97.13the auditor, is an order or warrant for the payment of the claim, and, when countersigned
97.14by the county treasurer, is a check for the payment of the amount thereof.

97.15    Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
97.16    Subdivision 1. Continuation of nonconformity; limitations. Except as provided in
97.17subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
97.18or premises existing at the time of the adoption of an official control under this chapter,
97.19may be continued, although the use or occupation does not conform to the official control.
97.20If the nonconformity or occupancy is discontinued for a period of more than one year, or
97.21any nonconforming building or structure is destroyed by fire or other peril to the extent of
97.2250 percent of its estimated market value, any subsequent use or occupancy of the land or
97.23premises shall be a conforming use or occupancy.

97.24    Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
97.25    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall
97.26give six weeks' published notice in all municipalities in the region. If a number of voters
97.27in the region equal to five percent of those who voted for candidates for governor at the
97.28last gubernatorial election present a petition within nine weeks of the first published notice
97.29to the secretary of state requesting that the matter be submitted to popular vote, it shall be
97.30submitted at the next general election. The question prepared shall be:
97.31"Shall the regional rail authority have the power to impose a property tax?

97.32		Yes .....
97.33		No ..... "

98.1If a majority of those voting on the question approve or if no petition is presented
98.2within the prescribed time the authority may levy a tax at any annual rate not exceeding
98.30.04835 percent of estimated market value of all taxable property situated within the
98.4municipality or municipalities named in its organization resolution. Its recording officer
98.5shall file, on or before September 15, in the office of the county auditor of each county
98.6in which territory under the jurisdiction of the authority is located a certified copy of the
98.7board of commissioners' resolution levying the tax, and each county auditor shall assess
98.8and extend upon the tax rolls of each municipality named in the organization resolution the
98.9portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
98.10taxable property in that municipality bears to the net tax capacity of taxable property in
98.11all municipalities named in the organization resolution. Collections of the tax shall be
98.12remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
98.13the amount levied for light rail transit purposes under this subdivision shall not exceed 75
98.14percent of the amount levied in 1990 for light rail transit purposes under this subdivision.

98.15    Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
98.16    Subd. 3. Leasing. (a) A county or joint powers board of a group of counties
98.17which acquires or constructs and equips or improves facilities under this chapter may,
98.18with the approval of the board of county commissioners of each county, enter into a
98.19lease agreement with a city situated within any of the counties, or a county housing and
98.20redevelopment authority established under chapter 469 or any special law. Under the lease
98.21agreement, the city or county housing and redevelopment authority shall:
98.22(1) construct or acquire and equip or improve a facility in accordance with plans
98.23prepared by or at the request of a county or joint powers board of the group of counties
98.24and approved by the commissioner of corrections; and
98.25(2) finance the facility by the issuance of revenue bonds.
98.26(b) The county or joint powers board of a group of counties may lease the facility
98.27site, improvements, and equipment for a term upon rental sufficient to produce revenue
98.28for the prompt payment of the revenue bonds and all interest accruing on them. Upon
98.29completion of payment, the lessee shall acquire title. The real and personal property
98.30acquired for the facility constitutes a project and the lease agreement constitutes a revenue
98.31agreement as provided in sections 469.152 to 469.165. All proceedings by the city or
98.32county housing and redevelopment authority and the county or joint powers board shall be
98.33as provided in sections 469.152 to 469.165, with the following adjustments:
98.34(1) no tax may be imposed upon the property;
99.1(2) the approval of the project by the commissioner of employment and economic
99.2development is not required;
99.3(3) the Department of Corrections shall be furnished and shall record information
99.4concerning each project as it may prescribe, in lieu of reports required on other projects to
99.5the commissioner of employment and economic development;
99.6(4) the rentals required to be paid under the lease agreement shall not exceed in any
99.7year one-tenth of one percent of the estimated market value of property within the county
99.8or group of counties as last equalized before the execution of the lease agreement;
99.9(5) the county or group of counties shall provide for payment of all rentals due
99.10during the term of the lease agreement in the manner required in subdivision 4;
99.11(6) no mortgage on the facilities shall be granted for the security of the bonds, but
99.12compliance with clause (5) may be enforced as a nondiscretionary duty of the county
99.13or group of counties; and
99.14(7) the county or the joint powers board of the group of counties may sublease any
99.15part of the facilities for purposes consistent with their maintenance and operation.

99.16    Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:
99.17410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
99.18    (a) Notwithstanding any contrary provision of other law or charter, a home rule
99.19charter city may, by resolution and without public referendum, issue capital notes subject
99.20to the city debt limit to purchase capital equipment.
99.21    (b) For purposes of this section, "capital equipment" means:
99.22    (1) public safety equipment, ambulance and other medical equipment, road
99.23construction and maintenance equipment, and other capital equipment; and
99.24    (2) computer hardware and software, whether bundled with machinery or equipment
99.25or unbundled.
99.26    (c) The equipment or software must have an expected useful life at least as long
99.27as the term of the notes.
99.28    (d) The notes shall be payable in not more than ten years and be issued on terms
99.29and in the manner the city determines. The total principal amount of the capital notes
99.30issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of
99.31taxable property in the city for that year.
99.32    (e) A tax levy shall be made for the payment of the principal and interest on the
99.33notes, in accordance with section 475.61, as in the case of bonds.
99.34    (f) Notes issued under this section shall require an affirmative vote of two-thirds of
99.35the governing body of the city.
100.1    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
100.2city may also issue capital notes subject to its debt limit in the manner and subject to the
100.3limitations applicable to statutory cities pursuant to section 412.301.

100.4    Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
100.5    Subd. 2. Contracts. The council shall have power to make such contracts as may
100.6be deemed necessary or desirable to make effective any power possessed by the council.
100.7The city may purchase personal property through a conditional sales contract and real
100.8property through a contract for deed under which contracts the seller is confined to the
100.9remedy of recovery of the property in case of nonpayment of all or part of the purchase
100.10price, which shall be payable over a period of not to exceed five years. When the contract
100.11price of property to be purchased by contract for deed or conditional sales contract
100.12exceeds 0.24177 percent of the estimated market value of the city, the city may not enter
100.13into such a contract for at least ten days after publication in the official newspaper of a
100.14council resolution determining to purchase property by such a contract; and, if before the
100.15end of that time a petition asking for an election on the proposition signed by voters equal
100.16to ten percent of the number of voters at the last regular city election is filed with the clerk,
100.17the city may not enter into such a contract until the proposition has been approved by a
100.18majority of the votes cast on the question at a regular or special election.

100.19    Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:
100.20412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
100.21    (a) The council may issue certificates of indebtedness or capital notes subject to the
100.22city debt limits to purchase capital equipment.
100.23    (b) For purposes of this section, "capital equipment" means:
100.24    (1) public safety equipment, ambulance and other medical equipment, road
100.25construction and maintenance equipment, and other capital equipment; and
100.26    (2) computer hardware and software, whether bundled with machinery or equipment
100.27or unbundled.
100.28    (c) The equipment or software must have an expected useful life at least as long as
100.29the terms of the certificates or notes.
100.30    (d) Such certificates or notes shall be payable in not more than ten years and shall be
100.31issued on such terms and in such manner as the council may determine.
100.32    (e) If the amount of the certificates or notes to be issued to finance any such purchase
100.33exceeds 0.25 percent of the estimated market value of taxable property in the city, they
100.34shall not be issued for at least ten days after publication in the official newspaper of
101.1a council resolution determining to issue them; and if before the end of that time, a
101.2petition asking for an election on the proposition signed by voters equal to ten percent
101.3of the number of voters at the last regular municipal election is filed with the clerk, such
101.4certificates or notes shall not be issued until the proposition of their issuance has been
101.5approved by a majority of the votes cast on the question at a regular or special election.
101.6    (f) A tax levy shall be made for the payment of the principal and interest on such
101.7certificates or notes, in accordance with section 475.61, as in the case of bonds.

101.8    Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
101.9    Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance
101.10establishing a special service district. Only property that is classified under section 273.13
101.11and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
101.12designated on a land use plan for commercial or industrial use and located in the special
101.13service district, may be subject to the charges imposed by the city on the special service
101.14district. Other types of property may be included within the boundaries of the special
101.15service district but are not subject to the levies or charges imposed by the city on the
101.16special service district. If 50 percent or more of the estimated market value of a parcel of
101.17property is classified under section 273.13 as commercial, industrial, or vacant land zoned
101.18or designated on a land use plan for commercial or industrial use, or public utility for the
101.19current assessment year, then the entire taxable market value of the property is subject to a
101.20service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10.
101.21The ordinance shall describe with particularity the area within the city to be included in
101.22the district and the special services to be furnished in the district. The ordinance may not
101.23be adopted until after a public hearing has been held on the question. Notice of the hearing
101.24shall include the time and place of hearing, a map showing the boundaries of the proposed
101.25district, and a statement that all persons owning property in the proposed district that
101.26would be subject to a service charge will be given opportunity to be heard at the hearing.
101.27Within 30 days after adoption of the ordinance under this subdivision, the governing body
101.28shall send a copy of the ordinance to the commissioner of revenue.

101.29    Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
101.30    Subd. 2. Council approval; special tax levy limitation. The council shall receive
101.31and consider the estimate required in subdivision 1 and the items of cost after notice and
101.32hearing before it or its appropriate committee as it considers necessary or expedient, and
101.33shall approve the estimate, with necessary amendments. The amounts of each item of cost
101.34estimated are then appropriated to operate, maintain, and improve the pedestrian mall
102.1during the next fiscal year. The amount of the special tax to be charged under subdivision
102.21, clause (3), must not, however, exceed 0.12089 percent of estimated market value of
102.3taxable property in the district. The council shall make any necessary adjustment in costs of
102.4operating and maintaining the district to keep the amount of the tax within this limitation.

102.5    Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:
102.6447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
102.7The governing body of a city of the first class owning a hospital may annually levy
102.8a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
102.9taxable estimated market value.

102.10    Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:
102.11450.19 TOURIST CAMPING GROUNDS.
102.12A home rule charter or statutory city or town may establish and maintain public
102.13tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
102.14gift, suitable lands located either within or without the corporate limits for use as public
102.15tourist camping grounds and provide for the equipment, operation, and maintenance
102.16of the same. The amount that may be expended for the maintenance, improvement, or
102.17operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
102.18percent of taxable estimated market value.

102.19    Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:
102.20450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
102.21LEVY.
102.22After the acquisition of any museum, gallery, or school of arts or crafts, the board
102.23of park commissioners of the city in which it is located shall cause to be included in the
102.24annual tax levy upon all the taxable property of the county in which the museum, gallery,
102.25or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value.
102.26The board shall certify the levy to the county auditor and it shall be added to, and collected
102.27with and as part of, the general, real, and personal property taxes, with like penalties and
102.28interest, in case of nonpayment and default, and all provisions of law in respect to the
102.29levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
102.30respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
102.31paid to the city treasurer of the city in which is located the museum, gallery, or school
102.32of arts or crafts and credited to a fund to be known as the park museum fund, and shall
103.1be used only for the purposes specified in sections 450.23 to 450.25. Any part of the
103.2proceeds of the levy not expended for the purposes specified in section 450.24 may be
103.3used for the erection of new buildings for the same purposes.

103.4    Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:
103.5458A.10 PROPERTY TAX.
103.6The commission shall annually levy a tax not to exceed 0.12089 percent of estimated
103.7market value on all the taxable property in the transit area at a rate sufficient to produce
103.8an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the
103.9payment of principal and interest due on any revenue bonds issued pursuant to section
103.10458A.05 . Property taxes levied under this section shall be certified by the commission to
103.11the county auditors of the transit area, extended, assessed, and collected in the manner
103.12provided by law for the property taxes levied by the governing bodies of cities. The
103.13proceeds of the taxes levied under this section shall be remitted by the respective county
103.14treasurers to the treasurer of the commission, who shall credit the same to the funds of
103.15the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any
103.16applicable pledges or limitations on account of tax anticipation certificates or other
103.17specific purposes. At any time after making a tax levy under this section and certifying
103.18it to the county auditors, the commission may issue general obligation certificates of
103.19indebtedness in anticipation of the collection of the taxes as provided by section 412.261.

103.20    Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
103.21    Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in
103.22the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
103.23limiting the amount levied in any one year for general or special purposes, the city council
103.24of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
103.25percent of taxable estimated market value, by ordinance. An ordinance fixing the levy
103.26shall take effect immediately upon its passage and approval. The proceeds of the levy
103.27shall be paid into the city treasury and deposited in the operating fund provided for in
103.28section 458A.24, subdivision 3.

103.29    Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:
103.30465.04 ACCEPTANCE OF GIFTS.
103.31Cities of the second, third, or fourth class, having at any time a an estimated
103.32 market value of not more than $41,000,000, exclusive of money and credits, as officially
103.33equalized by the commissioner of revenue, either under home rule charter or under the
104.1laws of this state, in addition to all other powers possessed by them, hereby are authorized
104.2and empowered to receive and accept gifts and donations for the use and benefit of
104.3such cities and the inhabitants thereof upon terms and conditions to be approved by the
104.4governing bodies of such cities; and such cities are authorized to comply with and perform
104.5such terms and conditions, which may include payment to the donor or donors of interest
104.6on the value of the gift at not exceeding five percent per annum payable annually or
104.7semiannually, during the remainder of the natural life or lives of such donor or donors.

104.8    Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
104.9    Subd. 6. Operation area as taxing district, special tax. All of the territory included
104.10within the area of operation of any authority shall constitute a taxing district for the
104.11purpose of levying and collecting special benefit taxes as provided in this subdivision. All
104.12of the taxable property, both real and personal, within that taxing district shall be deemed
104.13to be benefited by projects to the extent of the special taxes levied under this subdivision.
104.14Subject to the consent by resolution of the governing body of the city in and for which
104.15it was created, an authority may levy a tax upon all taxable property within that taxing
104.16district. The tax shall be extended, spread, and included with and as a part of the general
104.17taxes for state, county, and municipal purposes by the county auditor, to be collected and
104.18enforced therewith, together with the penalty, interest, and costs. As the tax, including any
104.19penalties, interest, and costs, is collected by the county treasurer it shall be accumulated
104.20and kept in a separate fund to be known as the "housing and redevelopment project fund."
104.21The money in the fund shall be turned over to the authority at the same time and in the same
104.22manner that the tax collections for the city are turned over to the city, and shall be expended
104.23only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers
104.24signed by the chair of the authority or an authorized representative. The amount of the
104.25levy shall be an amount approved by the governing body of the city, but shall not exceed
104.260.0185 percent of taxable estimated market value. The authority shall each year formulate
104.27and file a budget in accordance with the budget procedure of the city in the same manner as
104.28required of executive departments of the city or, if no budgets are required to be filed, by
104.29August 1. The amount of the tax levy for the following year shall be based on that budget.

104.30    Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
104.31    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
104.32general obligation of the general jurisdiction governmental unit as additional security for
104.33bonds payable from income or revenues of the project or the authority. The authority
104.34must find that the pledged revenues will equal or exceed 110 percent of the principal and
105.1interest due on the bonds for each year. The proceeds of the bonds must be used for a
105.2qualified housing development project or projects. The obligations must be issued and
105.3sold in the manner and following the procedures provided by chapter 475, except the
105.4obligations are not subject to approval by the electors, and the maturities may extend to
105.5not more than 35 years for obligations sold to finance housing for the elderly and 40 years
105.6for other obligations issued under this subdivision. The authority is the municipality for
105.7purposes of chapter 475.
105.8(b) The principal amount of the issue must be approved by the governing body of
105.9the general jurisdiction governmental unit whose general obligation is pledged. Public
105.10hearings must be held on issuance of the obligations by both the authority and the general
105.11jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
105.12than 120 days, before the sale of the obligations.
105.13(c) The maximum amount of general obligation bonds that may be issued and
105.14outstanding under this section equals the greater of (1) one-half of one percent of the
105.15taxable estimated market value of the general jurisdiction governmental unit whose
105.16general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
105.17general obligation bonds, the outstanding general obligation bonds of all cities in the
105.18county or counties issued under this subdivision must be added in calculating the limit
105.19under clause (1).
105.20(d) "General jurisdiction governmental unit" means the city in which the housing
105.21development project is located. In the case of a county or multicounty authority, the
105.22county or counties may act as the general jurisdiction governmental unit. In the case of
105.23a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
105.24taxable property in each of the counties.
105.25(e) "Qualified housing development project" means a housing development project
105.26providing housing either for the elderly or for individuals and families with incomes not
105.27greater than 80 percent of the median family income as estimated by the United States
105.28Department of Housing and Urban Development for the standard metropolitan statistical
105.29area or the nonmetropolitan county in which the project is located. The project must be
105.30owned for the term of the bonds either by the authority or by a limited partnership or other
105.31entity in which the authority or another entity under the sole control of the authority is
105.32the sole general partner and the partnership or other entity must receive (1) an allocation
105.33from the Department of Management and Budget or an entitlement issuer of tax-exempt
105.34bonding authority for the project and a preliminary determination by the Minnesota
105.35Housing Finance Agency or the applicable suballocator of tax credits that the project
105.36will qualify for four percent low-income housing tax credits or (2) a reservation of nine
106.1percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
106.2suballocator of tax credits for the project. A qualified housing development project may
106.3admit nonelderly individuals and families with higher incomes if:
106.4(1) three years have passed since initial occupancy;
106.5(2) the authority finds the project is experiencing unanticipated vacancies resulting in
106.6insufficient revenues, because of changes in population or other unforeseen circumstances
106.7that occurred after the initial finding of adequate revenues; and
106.8(3) the authority finds a tax levy or payment from general assets of the general
106.9jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
106.10income individuals or families are not admitted.
106.11(f) The authority may issue bonds to refund bonds issued under this subdivision in
106.12accordance with section 475.67. The finding of the adequacy of pledged revenues required
106.13by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
106.14issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
106.15after July 1, 1992.

106.16    Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
106.17    Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy
106.18a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
106.19percent of taxable estimated market value. The amount levied must be paid by the city
106.20treasurer to the treasurer of the port authority, to be spent by the authority.

106.21    Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
106.22    Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall
106.23replace the mandatory city levy under subdivision 4. A seaway port authority is a special
106.24taxing district under section 275.066 and may levy a tax in any year for the benefit of the
106.25seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated
106.26 market value. The county auditor shall distribute the proceeds of the property tax levy to
106.27the seaway port authority.

106.28    Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
106.29    Subd. 6. Discretionary city levy. Upon request of a port authority, the port
106.30authority's city may levy a tax to be spent by and for its port authority. The tax must
106.31enable the port authority to carry out efficiently and in the public interest sections 469.048
106.32to 469.068 to create and develop industrial development districts. The levy must not be
106.33more than 0.00282 percent of taxable estimated market value. The county treasurer shall
107.1pay the proceeds of the tax to the port authority treasurer. The money may be spent by
107.2the authority in performance of its duties to create and develop industrial development
107.3districts. In spending the money the authority must judge what best serves the public
107.4interest. The levy in this subdivision is in addition to the levy in subdivision 4.

107.5    Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
107.6    Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in
107.7any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
107.8taxable estimated market value. The amount levied must be paid by the city treasurer to
107.9the treasurer of the authority, to be spent by the authority.

107.10    Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
107.11    Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may
107.12appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
107.13percent of taxable estimated market value to carry out the purposes of this section.

107.14    Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:
107.15469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
107.16BOARD.
107.17Any city of the first class may expend money for city publicity purposes. The city may
107.18levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The proceeds
107.19of the levy shall be expended in the manner and for the city publicity purposes the council
107.20directs. The council may establish and provide for a publicity board or bureau to administer
107.21the fund, subject to the conditions and limitations the council prescribes by ordinance.

107.22    Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:
107.23469.206 HAZARDOUS PROPERTY PENALTY.
107.24A city may assess a penalty up to one percent of the estimated market value of
107.25real property, including any building located within the city that the city determines to
107.26be hazardous as defined in section 463.15, subdivision 3. The city shall send a written
107.27notice to the address to which the property tax statement is sent at least 90 days before it
107.28may assess the penalty. If the owner of the property has not paid the penalty or fixed the
107.29property within 90 days after receiving notice of the penalty, the penalty is considered
107.30delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
107.31property remains hazardous. For the purposes of this section, a penalty that is delinquent
108.1is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
108.2same manner as delinquent property taxes.

108.3    Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:
108.4471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
108.5CEMETERY.
108.6Where a statutory city or town owns and maintains an established cemetery or burial
108.7ground, either within or without the municipal limits, the statutory city or town may, by
108.8mutual agreement with contiguous statutory cities and towns, each having a an estimated
108.9 market value of not less than $2,000,000, join together in the maintenance of such public
108.10cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
108.11each such municipality is hereby authorized, by action of its council or governing body,
108.12to levy a tax or make an appropriation for the annual support and maintenance of such
108.13cemetery or burial ground; provided, the amount thus appropriated by each municipality
108.14shall not exceed a total of $10,000 in any one year.

108.15    Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
108.16    Subdivision 1. Application. This section applies to each city in which the net tax
108.17capacity of real and personal property consists in part of iron ore or lands containing
108.18taconite or semitaconite and in which the total taxable estimated market value of real
108.19and personal property exceeds $2,500,000.

108.20    Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
108.21    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a
108.22permanent improvement and replacement fund to be maintained by an annual tax levy.
108.23The governing body may levy a tax in excess of any charter limitation for the support of
108.24the permanent improvement and replacement fund, but not exceeding the following:
108.25(a) in cities having a population of not more than 500 inhabitants, the lesser of $20
108.26per capita or 0.08059 percent of taxable estimated market value;
108.27(b) in cities having a population of more than 500 and less than 2500 2,500, the
108.28greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable
108.29 estimated market value;
108.30(c) in cities having a population of more than 2500 2,500 or more inhabitants,
108.31the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable
108.32 estimated market value.

109.1    Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:
109.2471.73 ACCEPTANCE OF PROVISIONS.
109.3In the case of any city within the class specified in section 471.72 having a an
109.4estimated market value, as defined in section 471.72, in excess of $37,000,000; and in the
109.5case of any statutory city within such class having a an estimated market value, as defined
109.6in section 471.72, of less than $5,000,000; and in the case of any statutory city within such
109.7class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
109.8the case of any statutory city within such class which is governed by Laws 1929, chapter
109.9208, and has a an estimated market value of less than $83,000,000; and in the case of
109.10any school district within such class having a an estimated market value, as defined in
109.11section 471.72, of more than $54,000,000; and in the case of all towns within said class;
109.12sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the
109.13board of the school district, or the town board of the town shall have adopted a resolution
109.14determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go
109.15upon a cash basis in accordance with the provisions thereof.

109.16    Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
109.17    Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and
109.18issue the bonds in the manner provided in chapter 475, and shall have the same powers
109.19and duties as a municipality issuing bonds under that law, except that the approval of a
109.20majority of the electors shall not be required and the net debt limitations shall not apply.
109.21The terms of each series of bonds shall be fixed so that the amount of principal and interest
109.22on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
109.23due in any year shall not exceed 0.01209 percent of estimated market value of all taxable
109.24property in the metropolitan area as last finally equalized prior to a proposed issue. The
109.25bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes
109.26required for their payment shall be levied by the council, shall not affect the amount or rate
109.27of taxes which may be levied by the council for other purposes, shall be spread against all
109.28taxable property in the metropolitan area and shall not be subject to limitation as to rate or
109.29amount. Any taxes certified by the council to the county auditors for collection shall be
109.30reduced by the amount received by the council from the commissioner of management and
109.31budget or the federal government for the purpose of paying the principal and interest on
109.32bonds to which the levy relates. The council shall certify the fact and amount of all money
109.33so received to the county auditors, and the auditors shall reduce the levies previously made
109.34for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.

110.1    Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:
110.2473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
110.3DISTRICTS.
110.4As to any lands to be detached from any school district under the provisions hereof
110.5 section 473.625, notwithstanding such prospective the detachment, the estimated market
110.6value of such the detached lands and the net tax capacity of taxable properties now located
110.7therein or thereon shall be and on the lands on the date of the detachment constitute
110.8from and after the date of the enactment hereof a part of the estimated market value of
110.9properties upon the basis of which such used to calculate the net debt limit of the school
110.10district may issue its bonds,. The value of such the lands for such purpose to be and other
110.11taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of
110.12the estimated market value thereof as determined and certified by said the assessor to said
110.13 the school district, and it shall be the duty of such the assessor annually on or before the
110.14tenth day of October from and after the passage hereof, to so of each year, shall determine
110.15and certify that value; provided, however, that the value of such the detached lands and
110.16such taxable properties shall never exceed 20 percent of the estimated market value of
110.17all properties constituting and making up the basis aforesaid used to calculate the net
110.18debt limit of the school district.

110.19    Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
110.20    Subd. 3. Levy limit. In any budget certified by the commissioners under this section,
110.21the amount included for operation and maintenance shall not exceed an amount which,
110.22when extended against the property taxable therefor under section 473.621, subdivision 5,
110.23will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by
110.24the corporation shall not affect the amount or rate of taxes which may be levied by any other
110.25local government unit within the metropolitan area under the provisions of any charter.

110.26    Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
110.27    Subd. 9. Additional taxes. Nothing herein shall prevent the commission from
110.28levying a tax not to exceed 0.00121 percent of estimated market value on taxable property
110.29within its taxing jurisdiction, in addition to any levies found necessary for the debt
110.30service fund authorized by section 473.671. Nothing herein shall prevent the levy and
110.31appropriation for purposes of the commission of any other tax on property or on any
110.32income, transaction, or privilege, when and if authorized by law. All collections of any
110.33taxes so levied shall be included in the revenues appropriated for the purposes referred
110.34to in this section, unless otherwise provided in the law authorizing the levies; but no
111.1covenant as to the continuance or as to the rate and amount of any such levy shall be made
111.2with the holders of the commission's bonds unless specifically authorized by law.

111.3    Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:
111.4473.671 LIMIT OF TAX LEVY.
111.5The taxes levied against the property of the metropolitan area in any one year shall
111.6not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied
111.7to pay the principal or interest on any bonds or indebtedness of the city issued under
111.8Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
111.9payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
111.10500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
111.11maximum rate allowed to be levied to defray the cost of government under the provisions
111.12of the charter of any city affected by Laws 1943, chapter 500.

111.13    Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
111.14    Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the
111.15district as defined in section 473.702 to provide funds for the purposes of sections 473.701
111.16to 473.716. The tax shall not exceed the property tax levy limitation determined in this
111.17subdivision. A participating county may agree to levy an additional tax to be used by the
111.18commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and
111.19commission's taxes may not exceed the county's proportionate share of the property tax levy
111.20limitation determined under this subdivision based on the ratio of its total net tax capacity
111.21to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision
111.223 . The auditor of each county in the district shall add the amount of the levy made by the
111.23district to other taxes of the county for collection by the county treasurer with other taxes.
111.24When collected, the county treasurer shall make settlement of the tax with the district in
111.25the same manner as other taxes are distributed to political subdivisions. No county shall
111.26levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control
111.27except under this section. The levy shall be in addition to other taxes authorized by law.
111.28(b) The property tax levied by the Metropolitan Mosquito Control Commission shall
111.29not exceed the product of (i) the commission's property tax levy limitation for the previous
111.30year determined under this subdivision multiplied by (ii) an index for market valuation
111.31changes equal to the total estimated market valuation value of all taxable property for the
111.32current tax payable year located within the district plus any area that has been added to the
111.33district since the previous year, divided by the total estimated market valuation value of all
111.34taxable property located within the district for the previous taxes payable year.
112.1(c) For the purpose of determining the commission's property tax levy limitation
112.2under this subdivision, "total market valuation" means the total market valuation of all
112.3taxable property within the district without valuation adjustments for fiscal disparities
112.4(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage
112.5transmission lines (section 273.425).

112.6    Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
112.7    Subd. 12. Adjusted market value. "Adjusted market value" of real and personal
112.8property within a municipality means the assessor's estimated taxable market value,
112.9as defined in section 272.03, of all real and personal property, including the value of
112.10manufactured housing, within the municipality, adjusted for sales ratios in a manner
112.11similar to the adjustments made to city and town net tax capacities. For purposes
112.12of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make
112.13determinations and reports with respect to each municipality which are comparable to
112.14those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same
112.15manner and at the same times as are prescribed by the subdivisions. The commissioner
112.16of revenue shall annually determine, for each municipality, information comparable to
112.17that required by section 475.53, subdivision 4, for school districts, as soon as practicable
112.18after it becomes available. The commissioner of revenue shall then compute the equalized
112.19market value of property within each municipality using the aggregate sales ratios from
112.20the Department of Revenue's sales ratio study.

112.21    Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
112.22    Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
112.23 adjusted market value, determined as of January 2 of any year, divided by its population,
112.24determined as of a date in the same year.

112.25    Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
112.26    Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities
112.27means the sum of the valuations adjusted market values of all municipalities, determined
112.28as of January 2 of any year, divided by the sum of their populations, determined as of
112.29a date in the same year.

112.30    Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
112.31    Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of
112.32real and personal property multiplied by its net tax capacity rates in section 273.13.

113.1    Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
113.2    Subd. 10. Adjustment of value or net tax capacity. For the purpose of computing
113.3the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any
113.4provision of any law or charter, where such authorization, requirement, or limitation
113.5is related in any manner to any value or valuation of taxable property within any
113.6governmental unit, such value or net tax capacity fiscal capacity under section 473F.02,
113.7subdivision 14, a municipality's taxable market value shall be adjusted to reflect the
113.8adjustments reductions to net tax capacity effected by subdivision 2, clause (a), provided
113.9that: (1) in determining the taxable market value of commercial-industrial property
113.10or any class thereof within a governmental unit for any purpose other than section
113.11473F.07 municipality, (a) the reduction required by this subdivision shall be that amount
113.12which bears the same proportion to the amount subtracted from the governmental unit's
113.13 municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable
113.14market value of commercial-industrial property, or such class thereof, located within the
113.15governmental unit municipality bears to the net tax capacity of commercial-industrial
113.16property, or such class thereof, located within the governmental unit, and (b) the increase
113.17required by this subdivision shall be that amount which bears the same proportion to
113.18the amount added to the governmental unit's net tax capacity pursuant to subdivision 2,
113.19clause (b), as the market value of commercial-industrial property, or such class thereof,
113.20located within the governmental unit bears to the net tax capacity of commercial-industrial
113.21property, or such class thereof, located within the governmental unit; and (2) in determining
113.22the market value of real property within a municipality for purposes of section 473F.07,
113.23the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by
113.24clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to
113.25taxable market value for the increase in net tax capacity under subdivision 2, clause (b).

113.26    Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
113.27    Subd. 4. Limitations on amount. A municipality may not issue bonds under this
113.28section if the maximum amount of principal and interest to become due in any year on
113.29all the outstanding bonds issued under this section, including the bonds to be issued,
113.30will equal or exceed 0.16 percent of the taxable estimated market value of property
113.31in the municipality. Calculation of the limit must be made using the taxable estimated
113.32 market value for the taxes payable year in which the obligations are issued and sold. In
113.33the case of a municipality with a population of 2,500 or more, the bonds are subject to
113.34the net debt limits under section 475.53. In the case of a shared facility in which more
113.35than one municipality participates, upon compliance by each participating municipality
114.1with the requirements of subdivision 2, the limitations in this subdivision and the net debt
114.2represented by the bonds shall be allocated to each participating municipality in proportion
114.3to its required financial contribution to the financing of the shared facility, as set forth in
114.4the joint powers agreement relating to the shared facility. This section does not limit the
114.5authority to issue bonds under any other special or general law.

114.6    Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
114.7    Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to
114.8475.74 , no municipality, except a school district or a city of the first class, shall incur or be
114.9subject to a net debt in excess of three percent of the estimated market value of taxable
114.10property in the municipality.

114.11    Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
114.12    Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of
114.13the first class may not incur a net debt in excess of two percent of the estimated market
114.14value of all taxable property therein. If the charter of the city permits a net debt of the city
114.15in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
114.16percent of the estimated market value of the taxable property therein.
114.17The county auditor, at the time of preparing the tax list of the city, shall compile a
114.18statement setting forth the total net tax capacity and the total estimated market value of
114.19each class of taxable property in such city for such year.

114.20    Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
114.21    Subd. 4. School districts. Except as otherwise provided by law, no school district
114.22shall be subject to a net debt in excess of 15 percent of the actual estimated market value of
114.23all taxable property situated within its corporate limits, as computed in accordance with this
114.24subdivision. The county auditor of each county containing taxable real or personal property
114.25situated within any school district shall certify to the district upon request the estimated
114.26market value of all such property. Whenever the commissioner of revenue, in accordance
114.27with section 127A.48, subdivisions 1 to 6, has determined that the net tax capacity of any
114.28district furnished by county auditors is not based upon the adjusted market value of taxable
114.29property in the district exceeds the estimated market value of property within the district,
114.30the commissioner of revenue shall certify to the district upon request the ratio most recently
114.31ascertained to exist between such the estimated market value and the actual adjusted
114.32 market value of property within the district., and the actual market value of property
114.33within a district, on which its debt limit under this subdivision is will be based, is (a) the
115.1value certified by the county auditors, or (b) this on the estimated market value divided by
115.2the ratio certified by the commissioner of revenue, whichever results in a higher value.

115.3    Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
115.4    Subd. 2. Funding, refunding. Any county, city, town, or school district whose
115.5outstanding gross debt, including all items referred to in section 475.51, subdivision
115.64 , exceed in amount 1.62 percent of its estimated market value may issue bonds under
115.7this subdivision for the purpose of funding or refunding such indebtedness or any part
115.8thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
115.9recording officer and treasurer and filed in the office of the recording officer. The initial
115.10resolution of the governing body shall refer to this subdivision as authority for the issue,
115.11state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
115.12refunded. This resolution shall be published once each week for two successive weeks
115.13in a legal newspaper published in the municipality or if there be no such newspaper, in
115.14a legal newspaper published in the county seat. Such bonds may be issued without the
115.15submission of the question of their issue to the electors unless within ten days after the
115.16second publication of the resolution a petition requesting such election signed by ten or
115.17more voters who are taxpayers of the municipality, shall be filed with the recording officer.
115.18In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
115.19majority of the electors voting on the question.

115.20    Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
115.21    Subdivision 1. May purchase these bonds; conditions. Obligations sold under the
115.22provisions of section 475.60 may be purchased by the State Board of Investment if the
115.23obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of
115.24the attorney general as to form and execution of the application therefor, and under rules
115.25as the board may specify, and the state board shall have authority to purchase the same
115.26to an amount not exceeding 3.63 percent of the estimated market value of the taxable
115.27property of the municipality, according to the last preceding assessment. The obligations
115.28shall not run for a shorter period than one year, nor for a longer period than 30 years and
115.29shall bear interest at a rate to be fixed by the state board but not less than two percent per
115.30annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
115.31virtue thereof, the commissioner of management and budget shall certify to the respective
115.32auditors of the various counties wherein are situated the municipalities issuing the same,
115.33the number, denomination, amount, rate of interest and date of maturity of each obligation.

116.1    Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to
116.2read:
116.3    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax
116.4capacity computed using the net tax capacity rates in section 273.13 for taxes payable
116.5in the year of the aid distribution, and the market values, after the exclusion in section
116.6273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
116.7a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2,
116.8paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
116.9to that for which aids are being calculated. The market value utilized in computing city
116.10net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
116.11industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3,
116.12multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph
116.13(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
116.14of tax increment financing districts as defined in section 469.177, subdivision 2, and (3)
116.15the market value of transmission lines deducted from a city's total net tax capacity under
116.16section 273.425. The city net tax capacity will be computed using equalized market values
116.17 the city's adjusted net tax capacity under section 273.1325.
116.18EFFECTIVE DATE.This section is effective the day following final enactment.

116.19    Sec. 106. Minnesota Statutes 2012, section 477A.011, subdivision 32, is amended to
116.20read:
116.21    Subd. 32. Commercial industrial percentage. "Commercial industrial percentage"
116.22for a city is 100 times the sum of the estimated market values of all real property in the
116.23city classified as class 3 under section 273.13, subdivision 24, excluding public utility
116.24property, to the total estimated market value of all taxable real and personal property in
116.25the city. The estimated market values are the amounts computed before any adjustments
116.26for fiscal disparities under section 276A.06 or 473F.08. The estimated market values
116.27used for this subdivision are not equalized.
116.28EFFECTIVE DATE.This section is effective for aids payable in 2014 and thereafter.

116.29    Sec. 107. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to
116.30read:
116.31    Subd. 2. Definitions. (a) For the purposes of this section, the following terms
116.32have the meanings given them.
117.1(b) "County program aid" means the sum of "county need aid," "county tax base
117.2equalization aid," and "county transition aid."
117.3(c) "Age-adjusted population" means a county's population multiplied by the county
117.4age index.
117.5(d) "County age index" means the percentage of the population over age 65 within
117.6the county divided by the percentage of the population over age 65 within the state, except
117.7that the age index for any county may not be greater than 1.8 nor less than 0.8.
117.8(e) "Population over age 65" means the population over age 65 established as of
117.9July 15 in an aid calculation year by the most recent federal census, by a special census
117.10conducted under contract with the United States Bureau of the Census, by a population
117.11estimate made by the Metropolitan Council, or by a population estimate of the state
117.12demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
117.13date of the count or estimate for the preceding calendar year and which has been certified
117.14to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
117.15to an estimate or count is effective for these purposes only if certified to the commissioner
117.16on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
117.17estimates and counts established as of July 15 in the aid calculation year are subject to
117.18correction within the time periods allowed under section 477A.014.
117.19(f) "Part I crimes" means the three-year average annual number of Part I crimes
117.20reported for each county by the Department of Public Safety for the most recent years
117.21available. By July 1 of each year, the commissioner of public safety shall certify to the
117.22commissioner of revenue the number of Part I crimes reported for each county for the
117.23three most recent calendar years available.
117.24(g) "Households receiving food stamps" means the average monthly number of
117.25households receiving food stamps for the three most recent years for which data is
117.26available. By July 1 of each year, the commissioner of human services must certify to the
117.27commissioner of revenue the average monthly number of households in the state and in
117.28each county that receive food stamps, for the three most recent calendar years available.
117.29(h) "County net tax capacity" means the net tax capacity of the county, computed
117.30analogously to city net tax capacity under section 477A.011, subdivision 20 county's
117.31adjusted net tax capacity under section 273.1325.
117.32EFFECTIVE DATE.This section is effective the day following final enactment.

117.33    Sec. 108. Minnesota Statutes 2012, section 641.23, is amended to read:
117.34641.23 FUNDS; HOW PROVIDED.
118.1Before any contract is made for the erection of a county jail, sheriff's residence, or
118.2both, the county board shall either levy a sufficient tax to provide the necessary funds, or
118.3issue county bonds therefor in accordance with the provisions of chapter 475, provided
118.4that no election is required if the amount of all bonds issued for this purpose and interest
118.5on them which are due and payable in any year does not exceed an amount equal to
118.60.09671 percent of estimated market value of taxable property within the county, as last
118.7determined before the bonds are issued.

118.8    Sec. 109. Minnesota Statutes 2012, section 641.24, is amended to read:
118.9641.24 LEASING.
118.10The county may, by resolution of the county board, enter into a lease agreement with
118.11any statutory or home rule charter city situated within the county, or a county housing and
118.12redevelopment authority established pursuant to chapter 469 or any special law whereby
118.13the city or county housing and redevelopment authority will construct a jail or other law
118.14enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
118.15sheriff and other law enforcement agencies, in accordance with plans prepared by or at
118.16the request of the county board and, when required, approved by the commissioner of
118.17corrections and will finance it by the issuance of revenue bonds, and the county may lease
118.18the site and improvements for a term and upon rentals sufficient to produce revenue for the
118.19prompt payment of the bonds and all interest accruing thereon and, upon completion of
118.20payment, will acquire title thereto. The real and personal property acquired for the jail
118.21shall constitute a project and the lease agreement shall constitute a revenue agreement
118.22as contemplated in chapter 469, and all proceedings shall be taken by the city or county
118.23housing and redevelopment authority and the county in the manner and with the force and
118.24effect provided in chapter 469; provided that:
118.25(1) no tax shall be imposed upon or in lieu of a tax upon the property;
118.26(2) the approval of the project by the commissioner of commerce shall not be required;
118.27(3) the Department of Corrections shall be furnished and shall record such
118.28information concerning each project as it may prescribe;
118.29(4) the rentals required to be paid under the lease agreement shall not exceed in any
118.30year one-tenth of one percent of the estimated market value of property within the county,
118.31as last finally equalized before the execution of the agreement;
118.32(5) the county board shall provide for the payment of all rentals due during the term
118.33of the lease, in the manner required in section 641.264, subdivision 2;
119.1(6) no mortgage on the property shall be granted for the security of the bonds, but
119.2compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
119.3county board; and
119.4(7) the county board may sublease any part of the jail property for purposes consistent
119.5with the maintenance and operation of a county jail or other law enforcement facility.

119.6    Sec. 110. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision
119.7to read:
119.8    Subd. 20. Estimated market value. When used in determining or calculating a
119.9limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or
119.10capital note issuance by or for a local government unit, "estimated market value" has the
119.11meaning given in section 273.032.

119.12    Sec. 111. REVISOR'S INSTRUCTION.
119.13The revisor of statutes shall recodify Minnesota Statutes, section 127.48,
119.14subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all
119.15cross-references to the affected subdivisions accordingly.
119.16EFFECTIVE DATE.This section is effective the day following final enactment.

119.17    Sec. 112. REPEALER.
119.18Minnesota Statutes 2012, sections 273.11, subdivision 1a; 276A.01, subdivision 11;
119.19473F.02, subdivision 13; and 477A.011, subdivision 21, are repealed.

119.20    Sec. 113. EFFECTIVE DATE.
119.21Unless otherwise specifically provided, this article is effective the day following
119.22final enactment for purposes of limits on net debt, the issuance of bonds, certificates of
119.23indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for
119.24all other purposes.


119.27    Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to
119.28read:
119.29    Subdivision 1. Definitions. "Split residential property parcel" means a parcel of
119.30real estate that is located within the boundaries of more than one school district and that
119.31is classified as residential property under:
120.1(1) section 273.13, subdivision 22, paragraph (a) or (b);
120.2(2) section 273.13, subdivision 25, paragraph (b), clause (1); or
120.3(3) section 273.13, subdivision 25, paragraph (c), clause (1).
120.4EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
120.5thereafter.

120.6    Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read:
120.7270.077 TAXES CREDITED TO STATE AIRPORTS FUND.
120.8All taxes levied under sections 270.071 to 270.079 must be collected by the
120.9commissioner and credited to the state airports fund created in section 360.017.
120.10EFFECTIVE DATE.This section is effective the day following final enactment.

120.11    Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:
120.12    Subd. 5. Prohibited activity. A licensed assessor or other person employed by an
120.13assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
120.14of valuing or classifying property for property tax purposes is prohibited from making
120.15appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
120.16as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the
120.17assessment jurisdiction where the individual is employed or performing the duties of the
120.18assessor under contract. Violation of this prohibition shall result in immediate revocation
120.19of the individual's license to assess property for property tax purposes. This prohibition
120.20must not be construed to prohibit an individual from carrying out any duties required
120.21for the proper assessment of property for property tax purposes or performing duties
120.22enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted
120.23by the governing body of a governmental unit, which specifies the purposes for which
120.24such work will be done, this prohibition does not apply to appraisal activities undertaken
120.25on behalf of and at the request of the governmental unit that has employed or contracted
120.26with the individual. The resolution may only allow appraisal activities which are related to
120.27condemnations, right-of-way acquisitions, land exchanges, or special assessments.
120.28EFFECTIVE DATE.This section is effective the day following final enactment.

120.29    Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:
120.30    Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any
120.31penalty or interest that is imposed by a law administered by the commissioner, or imposed
121.1by section 270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late
121.2payment of tax or late filing of a return, or any part of an additional tax charge under
121.3section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the
121.4tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located
121.5in a presidentially declared disaster or in a presidentially declared state of emergency area
121.6or in an area declared to be in a state of emergency by the governor under section 12.31.
121.7    (b) The commissioner shall abate any part of a penalty or additional tax charge
121.8under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous
121.9advice given to the taxpayer in writing by an employee of the department acting in
121.10an official capacity, if the advice:
121.11    (1) was reasonably relied on and was in response to a specific written request of the
121.12taxpayer; and
121.13    (2) was not the result of failure by the taxpayer to provide adequate or accurate
121.14information.
121.15EFFECTIVE DATE.This section is effective the day following final enactment.

121.16    Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:
121.17    Subd. 2. Exempt property used by private entity for profit. (a) When any real or
121.18personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
121.19leased, loaned, or otherwise made available and used by a private individual, association,
121.20or corporation in connection with a business conducted for profit, there shall be imposed a
121.21tax, for the privilege of so using or possessing such real or personal property, in the same
121.22amount and to the same extent as though the lessee or user was the owner of such property.
121.23    (b) The tax imposed by this subdivision shall not apply to:
121.24    (1) property leased or used as a concession in or relative to the use in whole
121.25or part of a public park, market, fairgrounds, port authority, economic development
121.26authority established under chapter 469, municipal auditorium, municipal parking facility,
121.27municipal museum, or municipal stadium;
121.28    (2) property of an airport owned by a city, town, county, or group thereof which is:
121.29    (i) leased to or used by any person or entity including a fixed base operator; and
121.30    (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
121.31services, or facilities to the airport or general public;
121.32the exception from taxation provided in this clause does not apply to:
121.33    (i) property located at an airport owned or operated by the Metropolitan Airports
121.34Commission or by a city of over 50,000 population according to the most recent federal
121.35census or such a city's airport authority; or
122.1    (ii) hangars leased by a private individual, association, or corporation in connection
122.2with a business conducted for profit other than an aviation-related business;
122.3    (3) property constituting or used as a public pedestrian ramp or concourse in
122.4connection with a public airport;
122.5    (4) property constituting or used as a passenger check-in area or ticket sale counter,
122.6boarding area, or luggage claim area in connection with a public airport but not the
122.7airports owned or operated by the Metropolitan Airports Commission or cities of over
122.850,000 population or an airport authority therein. Real estate owned by a municipality
122.9in connection with the operation of a public airport and leased or used for agricultural
122.10purposes is not exempt;
122.11    (5) property leased, loaned, or otherwise made available to a private individual,
122.12corporation, or association under a cooperative farming agreement made pursuant to
122.13section 97A.135; or
122.14    (6) property leased, loaned, or otherwise made available to a private individual,
122.15corporation, or association under section 272.68, subdivision 4.
122.16    (c) Taxes imposed by this subdivision are payable as in the case of personal property
122.17taxes and shall be assessed to the lessees or users of real or personal property in the same
122.18manner as taxes assessed to owners of real or personal property, except that such taxes
122.19shall not become a lien against the property. When due, the taxes shall constitute a debt due
122.20from the lessee or user to the state, township, city, county, and school district for which the
122.21taxes were assessed and shall be collected in the same manner as personal property taxes.
122.22If property subject to the tax imposed by this subdivision is leased or used jointly by two or
122.23more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
122.24    (d) The tax on real property of the federal government, the state or any of its political
122.25subdivisions that is leased by, loaned, or otherwise made available to a private individual,
122.26association, or corporation and becomes taxable under this subdivision or other provision
122.27of law must be assessed and collected as a personal property assessment. The taxes do
122.28not become a lien against the real property.
122.29EFFECTIVE DATE.This section is effective the day following final enactment.

122.30    Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:
122.31    Subd. 97. Property used in business of mining subject to net proceeds tax. The
122.32following property used in the business of mining that is subject to the net proceeds tax
122.33under section 298.015 is exempt:
122.34(1) deposits of ores, metals, and minerals and the lands in which they are contained;
123.1(2) all real and personal property used in mining, quarrying, producing, or refining
123.2ores, minerals, or metals, including lands occupied by or used in connection with the
123.3mining, quarrying, production, or ore refining facilities; and
123.4(3) concentrate or direct reduced ore.
123.5This exemption applies for each year that a person subject to tax under section
123.6298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or
123.7minerals.
123.8EFFECTIVE DATE.This section is effective the day following final enactment.

123.9    Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:
123.10    Subd. 9. Person. "Person" includes means an individual, association, estate, trust,
123.11partnership, firm, company, or corporation.
123.12EFFECTIVE DATE.This section is effective the day following final enactment.

123.13    Sec. 8. Minnesota Statutes 2012, section 273.032, is amended to read:
123.14273.032 MARKET VALUE DEFINITION.
123.15For the purpose of determining any property tax levy limitation based on market
123.16value, any qualification to receive state aid based on market value, or any state aid amount
123.17based on market value, the terms "market value," "taxable market value," and "market
123.18valuation," whether equalized or unequalized, mean the total taxable market value of
123.19property within the local unit of government before any adjustments for tax increment,
123.20fiscal disparity, powerline credit, or wind energy values, but after the limited market
123.21adjustments under section 273.11, subdivision 1a, and after the market value exclusions of
123.22certain improvements to homestead property under section 273.11, subdivision 16. Unless
123.23otherwise provided, "market value," "taxable market value," and "market valuation" for
123.24purposes of this paragraph, refer to the taxable market value for the previous assessment
123.25year.
123.26For the purpose of determining any net debt limit based on market value, or any limit
123.27on the issuance of bonds, certificates of indebtedness, or capital notes based on market
123.28value, the terms "market value," "taxable market value," and "market valuation," whether
123.29equalized or unequalized, mean the total taxable market value of property within the local
123.30unit of government before any adjustments for tax increment, fiscal disparity, powerline
123.31credit, or wind energy values, but after the limited market value adjustments under section
123.32273.11, subdivision 1a, and after the market value exclusions of certain improvements to
123.33homestead property under section 273.11, subdivision 16. Unless otherwise provided,
124.1"market value," "taxable market value," and "market valuation" for purposes of this
124.2paragraph, mean the taxable market value as last finally equalized.
124.3EFFECTIVE DATE.This section is effective the day following final enactment.

124.4    Sec. 9. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:
124.5    Subd. 6. Additional taxes. (a) When real property which is being, or has been
124.6valued and assessed under this section is sold, transferred, or no longer qualifies under
124.7subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to
124.8additional taxes in the amount equal to the difference between the taxes determined in
124.9accordance with subdivision 3 and the amount determined under subdivision 4, provided
124.10that the amount determined under subdivision 4 shall not be greater than it would have
124.11been had the actual bona fide sale price of the real property at an arm's-length transaction
124.12been used in lieu of the market value determined under subdivision 4. The additional taxes
124.13shall be extended against the property on the tax list for taxes payable in the current year,
124.14provided that no interest or penalties shall be levied on the additional taxes if timely paid
124.15and provided that the additional taxes shall only be levied with respect to the current year
124.16plus two prior years that the property has been valued and assessed under this section.
124.17(b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not
124.18be extended against the property if the new owner submits a successful application under
124.19this section by the later of May 1 of the current year or 30 days after the sale or transfer.
124.20(c) For the purposes of this section, the following events do not constitute a sale or
124.21transfer for property that qualified under subdivision 2 prior to the event:
124.22(1) death of a property owner when the surviving owners retain ownership of the
124.23property;
124.24(2) divorce of a married couple when one of the spouses retains ownership of the
124.25property;
124.26(3) marriage of a single property owner when that owner retains ownership of the
124.27property in whole or in part;
124.28(4) the organization or reorganization of a farm ownership entity that is not prohibited
124.29from owning agricultural land in this state under section 500.24, if all owners maintain the
124.30same beneficial interest both before and after the organization or reorganization; and
124.31(5) transfer of the property to a trust or trustee, provided that the individual owners
124.32of the property are the grantors of the trust and they maintain the same beneficial interest
124.33both before and after placement of the property in trust.
124.34EFFECTIVE DATE.This section is effective the day following final enactment.

125.1    Sec. 10. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:
125.2    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
125.3land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
125.4the class 2a land under the same ownership. The market value of the house and garage
125.5and immediately surrounding one acre of land has the same class rates as class 1a or 1b
125.6property under subdivision 22. The value of the remaining land including improvements
125.7up to the first tier valuation limit of agricultural homestead property has a net class rate
125.8of 0.5 percent of market value. The remaining property over the first tier has a class rate
125.9of one percent of market value. For purposes of this subdivision, the "first tier valuation
125.10limit of agricultural homestead property" and "first tier" means the limit certified under
125.11section 273.11, subdivision 23.
125.12    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
125.13are agricultural land and buildings. Class 2a property has a net class rate of one percent of
125.14market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
125.15property must also include any property that would otherwise be classified as 2b, but is
125.16interspersed with class 2a property, including but not limited to sloughs, wooded wind
125.17shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
125.18and other similar land that is impractical for the assessor to value separately from the rest of
125.19the property or that is unlikely to be able to be sold separately from the rest of the property.
125.20    An assessor may classify the part of a parcel described in this subdivision that is used
125.21for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
125.22    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
125.23that are unplatted real estate, rural in character and not used for agricultural purposes,
125.24including land used for growing trees for timber, lumber, and wood and wood products,
125.25that is not improved with a structure. The presence of a minor, ancillary nonresidential
125.26structure as defined by the commissioner of revenue does not disqualify the property from
125.27classification under this paragraph. Any parcel of 20 acres or more improved with a
125.28structure that is not a minor, ancillary nonresidential structure must be split-classified, and
125.29ten acres must be assigned to the split parcel containing the structure. Class 2b property
125.30has a net class rate of one percent of market value unless it is part of an agricultural
125.31homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
125.32    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
125.33acres statewide per taxpayer that is being managed under a forest management plan that
125.34meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
125.35resource management incentive program. It has a class rate of .65 percent, provided that
125.36the owner of the property must apply to the assessor in order for the property to initially
126.1qualify for the reduced rate and provide the information required by the assessor to verify
126.2that the property qualifies for the reduced rate. If the assessor receives the application
126.3and information before May 1 in an assessment year, the property qualifies beginning
126.4with that assessment year. If the assessor receives the application and information after
126.5April 30 in an assessment year, the property may not qualify until the next assessment
126.6year. The commissioner of natural resources must concur that the land is qualified. The
126.7commissioner of natural resources shall annually provide county assessors verification
126.8information on a timely basis. The presence of a minor, ancillary nonresidential structure
126.9as defined by the commissioner of revenue does not disqualify the property from
126.10classification under this paragraph.
126.11    (e) Agricultural land as used in this section means:
126.12    (1) contiguous acreage of ten acres or more, used during the preceding year for
126.13agricultural purposes.; or
126.14    (2) contiguous acreage used during the preceding year for an intensive livestock or
126.15poultry confinement operation, provided that land used only for pasturing or grazing
126.16does not qualify under this clause.
126.17    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
126.18or storage of agricultural products for sale, or the storage of machinery or equipment
126.19used in support of agricultural production by the same farm entity. For a property to be
126.20classified as agricultural based only on the drying or storage of agricultural products,
126.21the products being dried or stored must have been produced by the same farm entity as
126.22the entity operating the drying or storage facility. "Agricultural purposes" also includes
126.23enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or
126.24the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar
126.25state or federal conservation program if the property was classified as agricultural (i)
126.26under this subdivision for the assessment year 2002 taxes payable in 2003 because of its
126.27enrollment in a qualifying program and the land remains enrolled or (ii) in the year prior
126.28to its enrollment. Agricultural classification shall not be based upon the market value of
126.29any residential structures on the parcel or contiguous parcels under the same ownership.
126.30    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
126.31portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
126.32of, a set of contiguous tax parcels under that section that are owned by the same person.
126.33    (f) Real estate of Agricultural land under this section also includes:
126.34    (1) contiguous acreage that is less than ten acres, which is in size and exclusively or
126.35intensively used in the preceding year for raising or cultivating agricultural products, shall
127.1be considered as agricultural land. To qualify under this paragraph, property that includes
127.2a residential structure must be used intensively for one of the following purposes:; or
127.3    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if
127.4the contiguous acreage exclusive of the house, garage, and surrounding one acre of land
127.5was used in the preceding year for one or more of the following three uses:
127.6    (i) for an intensive grain drying or storage of grain operation, or for intensive
127.7machinery or equipment storage of machinery or equipment activities used to support
127.8agricultural activities on other parcels of property operated by the same farming entity;
127.9    (ii) as a nursery, provided that only those acres used intensively to produce nursery
127.10stock are considered agricultural land; or
127.11    (iii) for livestock or poultry confinement, provided that land that is used only for
127.12pasturing and grazing does not qualify; or
127.13    (iv) (iii) for intensive market farming; for purposes of this paragraph, "market
127.14farming" means the cultivation of one or more fruits or vegetables or production of animal
127.15or other agricultural products for sale to local markets by the farmer or an organization
127.16with which the farmer is affiliated.
127.17    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
127.18described in section 272.193, or all of a set of contiguous tax parcels under that section
127.19that are owned by the same person.
127.20    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
127.21use of that property is the leasing to, or use by another person for agricultural purposes.
127.22    Classification under this subdivision is not determinative for qualifying under
127.23section 273.111.
127.24    (h) The property classification under this section supersedes, for property tax
127.25purposes only, any locally administered agricultural policies or land use restrictions that
127.26define minimum or maximum farm acreage.
127.27    (i) The term "agricultural products" as used in this subdivision includes production
127.28for sale of:
127.29    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
127.30animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
127.31bees, and apiary products by the owner;
127.32    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
127.33for agricultural use;
127.34    (3) the commercial boarding of horses, which may include related horse training and
127.35riding instruction, if the boarding is done on property that is also used for raising pasture
127.36to graze horses or raising or cultivating other agricultural products as defined in clause (1);
128.1    (4) property which is owned and operated by nonprofit organizations used for
128.2equestrian activities, excluding racing;
128.3    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
128.4section 97A.105, provided that the annual licensing report to the Department of Natural
128.5Resources, which must be submitted annually by March 30 to the assessor, indicates
128.6that at least 500 birds were raised or used for breeding stock on the property during the
128.7preceding year and that the owner provides a copy of the owner's most recent schedule F;
128.8or (ii) for use on a shooting preserve licensed under section 97A.115;
128.9    (6) insects primarily bred to be used as food for animals;
128.10    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
128.11sold for timber, lumber, wood, or wood products; and
128.12    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
128.13Department of Agriculture under chapter 28A as a food processor.
128.14    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
128.15purposes, including but not limited to:
128.16    (1) wholesale and retail sales;
128.17    (2) processing of raw agricultural products or other goods;
128.18    (3) warehousing or storage of processed goods; and
128.19    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
128.20and (3),
128.21the assessor shall classify the part of the parcel used for agricultural purposes as class
128.221b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
128.23use. The grading, sorting, and packaging of raw agricultural products for first sale is
128.24considered an agricultural purpose. A greenhouse or other building where horticultural
128.25or nursery products are grown that is also used for the conduct of retail sales must be
128.26classified as agricultural if it is primarily used for the growing of horticultural or nursery
128.27products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
128.28those products. Use of a greenhouse or building only for the display of already grown
128.29horticultural or nursery products does not qualify as an agricultural purpose.
128.30    (k) The assessor shall determine and list separately on the records the market value
128.31of the homestead dwelling and the one acre of land on which that dwelling is located. If
128.32any farm buildings or structures are located on this homesteaded acre of land, their market
128.33value shall not be included in this separate determination.
128.34    (l) Class 2d airport landing area consists of a landing area or public access area of
128.35a privately owned public use airport. It has a class rate of one percent of market value.
128.36To qualify for classification under this paragraph, a privately owned public use airport
129.1must be licensed as a public airport under section 360.018. For purposes of this paragraph,
129.2"landing area" means that part of a privately owned public use airport properly cleared,
129.3regularly maintained, and made available to the public for use by aircraft and includes
129.4runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
129.5A landing area also includes land underlying both the primary surface and the approach
129.6surfaces that comply with all of the following:
129.7    (i) the land is properly cleared and regularly maintained for the primary purposes of
129.8the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
129.9facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
129.10    (ii) the land is part of the airport property; and
129.11    (iii) the land is not used for commercial or residential purposes.
129.12The land contained in a landing area under this paragraph must be described and certified
129.13by the commissioner of transportation. The certification is effective until it is modified,
129.14or until the airport or landing area no longer meets the requirements of this paragraph.
129.15For purposes of this paragraph, "public access area" means property used as an aircraft
129.16parking ramp, apron, or storage hangar, or an arrival and departure building in connection
129.17with the airport.
129.18    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
129.19being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
129.20located in a county that has elected to opt-out of the aggregate preservation program as
129.21provided in section 273.1115, subdivision 6. It has a class rate of one percent of market
129.22value. To qualify for classification under this paragraph, the property must be at least
129.23ten contiguous acres in size and the owner of the property must record with the county
129.24recorder of the county in which the property is located an affidavit containing:
129.25    (1) a legal description of the property;
129.26    (2) a disclosure that the property contains a commercial aggregate deposit that is not
129.27actively being mined but is present on the entire parcel enrolled;
129.28    (3) documentation that the conditional use under the county or local zoning
129.29ordinance of this property is for mining; and
129.30    (4) documentation that a permit has been issued by the local unit of government
129.31or the mining activity is allowed under local ordinance. The disclosure must include a
129.32statement from a registered professional geologist, engineer, or soil scientist delineating
129.33the deposit and certifying that it is a commercial aggregate deposit.
129.34    For purposes of this section and section 273.1115, "commercial aggregate deposit"
129.35means a deposit that will yield crushed stone or sand and gravel that is suitable for use
130.1as a construction aggregate; and "actively mined" means the removal of top soil and
130.2overburden in preparation for excavation or excavation of a commercial deposit.
130.3    (n) When any portion of the property under this subdivision or subdivision 22 begins
130.4to be actively mined, the owner must file a supplemental affidavit within 60 days from
130.5the day any aggregate is removed stating the number of acres of the property that is
130.6actively being mined. The acres actively being mined must be (1) valued and classified
130.7under subdivision 24 in the next subsequent assessment year, and (2) removed from the
130.8aggregate resource preservation property tax program under section 273.1115, if the
130.9land was enrolled in that program. Copies of the original affidavit and all supplemental
130.10affidavits must be filed with the county assessor, the local zoning administrator, and the
130.11Department of Natural Resources, Division of Land and Minerals. A supplemental
130.12affidavit must be filed each time a subsequent portion of the property is actively mined,
130.13provided that the minimum acreage change is five acres, even if the actual mining activity
130.14constitutes less than five acres.
130.15(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
130.16not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
130.17in section 14.386 concerning exempt rules do not apply.
130.18EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
130.19thereafter.

130.20    Sec. 11. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:
130.21    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
130.22units and used or held for use by the owner or by the tenants or lessees of the owner
130.23as a residence for rental periods of 30 days or more, excluding property qualifying for
130.24class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
130.25than hospitals exempt under section 272.02, and contiguous property used for hospital
130.26purposes, without regard to whether the property has been platted or subdivided. The
130.27market value of class 4a property has a class rate of 1.25 percent.
130.28    (b) Class 4b includes:
130.29    (1) residential real estate containing less than four units that does not qualify as class
130.304bb, other than seasonal residential recreational property;
130.31    (2) manufactured homes not classified under any other provision;
130.32    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
130.33farm classified under subdivision 23, paragraph (b) containing two or three units; and
130.34    (4) unimproved property that is classified residential as determined under subdivision
130.3533.
131.1    The market value of class 4b property has a class rate of 1.25 percent.
131.2    (c) Class 4bb includes:
131.3    (1) nonhomestead residential real estate containing one unit, other than seasonal
131.4residential recreational property; and
131.5    (2) a single family dwelling, garage, and surrounding one acre of property on a
131.6nonhomestead farm classified under subdivision 23, paragraph (b).
131.7    Class 4bb property has the same class rates as class 1a property under subdivision 22.
131.8    Property that has been classified as seasonal residential recreational property at
131.9any time during which it has been owned by the current owner or spouse of the current
131.10owner does not qualify for class 4bb.
131.11    (d) Class 4c property includes:
131.12    (1) except as provided in subdivision 22, paragraph (c), real and personal property
131.13devoted to commercial temporary and seasonal residential occupancy for recreation
131.14purposes, for not more than 250 days in the year preceding the year of assessment. For
131.15purposes of this clause, property is devoted to a commercial purpose on a specific day
131.16if any portion of the property is used for residential occupancy, and a fee is charged for
131.17residential occupancy. Class 4c property under this clause must contain three or more
131.18rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
131.19or individual camping site equipped with water and electrical hookups for recreational
131.20vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
131.214c under this clause is also class 4c under this clause regardless of the term of the rental
131.22agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
131.23property to be classified under this clause, either (i) the business located on the property
131.24must provide recreational activities, at least 40 percent of the annual gross lodging receipts
131.25related to the property must be from business conducted during 90 consecutive days,
131.26and either (A) at least 60 percent of all paid bookings by lodging guests during the year
131.27must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
131.28annual gross receipts must be from charges for providing recreational activities, or (ii) the
131.29business must contain 20 or fewer rental units, and must be located in a township or a city
131.30with a population of 2,500 or less located outside the metropolitan area, as defined under
131.31section 473.121, subdivision 2, that contains a portion of a state trail administered by the
131.32Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
131.33more nights shall be counted as two bookings. Class 4c property also includes commercial
131.34use real property used exclusively for recreational purposes in conjunction with other class
131.354c property classified under this clause and devoted to temporary and seasonal residential
131.36occupancy for recreational purposes, up to a total of two acres, provided the property is
132.1not devoted to commercial recreational use for more than 250 days in the year preceding
132.2the year of assessment and is located within two miles of the class 4c property with which
132.3it is used. In order for a property to qualify for classification under this clause, the owner
132.4must submit a declaration to the assessor designating the cabins or units occupied for 250
132.5days or less in the year preceding the year of assessment by January 15 of the assessment
132.6year. Those cabins or units and a proportionate share of the land on which they are located
132.7must be designated class 4c under this clause as otherwise provided. The remainder of the
132.8cabins or units and a proportionate share of the land on which they are located will be
132.9designated as class 3a. The owner of property desiring designation as class 4c property
132.10under this clause must provide guest registers or other records demonstrating that the units
132.11for which class 4c designation is sought were not occupied for more than 250 days in the
132.12year preceding the assessment if so requested. The portion of a property operated as a
132.13(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
132.14nonresidential facility operated on a commercial basis not directly related to temporary and
132.15seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
132.16the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
132.17boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
132.18marina services, launch services, or guide services; or selling bait and fishing tackle;
132.19    (2) qualified property used as a golf course if:
132.20    (i) it is open to the public on a daily fee basis. It may charge membership fees or
132.21dues, but a membership fee may not be required in order to use the property for golfing,
132.22and its green fees for golfing must be comparable to green fees typically charged by
132.23municipal courses; and
132.24    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
132.25    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
132.26with the golf course is classified as class 3a property;
132.27    (3) real property up to a maximum of three acres of land owned and used by a
132.28nonprofit community service oriented organization and not used for residential purposes
132.29on either a temporary or permanent basis, provided that:
132.30    (i) the property is not used for a revenue-producing activity for more than six days
132.31in the calendar year preceding the year of assessment; or
132.32    (ii) the organization makes annual charitable contributions and donations at least
132.33equal to the property's previous year's property taxes and the property is allowed to be
132.34used for public and community meetings or events for no charge, as appropriate to the
132.35size of the facility.
132.36    For purposes of this clause:
133.1    (A) "charitable contributions and donations" has the same meaning as lawful
133.2gambling purposes under section 349.12, subdivision 25, excluding those purposes
133.3relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
133.4    (B) "property taxes" excludes the state general tax;
133.5    (C) a "nonprofit community service oriented organization" means any corporation,
133.6society, association, foundation, or institution organized and operated exclusively for
133.7charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
133.8federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
133.9Revenue Code; and
133.10    (D) "revenue-producing activities" shall include but not be limited to property or that
133.11portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
133.12liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
133.13alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
133.14insurance business, or office or other space leased or rented to a lessee who conducts a
133.15for-profit enterprise on the premises.
133.16Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
133.17of the property for social events open exclusively to members and their guests for periods
133.18of less than 24 hours, when an admission is not charged nor any revenues are received by
133.19the organization shall not be considered a revenue-producing activity.
133.20    The organization shall maintain records of its charitable contributions and donations
133.21and of public meetings and events held on the property and make them available upon
133.22request any time to the assessor to ensure eligibility. An organization meeting the
133.23requirement under item (ii) must file an application by May 1 with the assessor for
133.24eligibility for the current year's assessment. The commissioner shall prescribe a uniform
133.25application form and instructions;
133.26    (4) postsecondary student housing of not more than one acre of land that is owned by
133.27a nonprofit corporation organized under chapter 317A and is used exclusively by a student
133.28cooperative, sorority, or fraternity for on-campus housing or housing located within two
133.29miles of the border of a college campus;
133.30    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3,
133.31excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
133.32manufactured home parks as defined in section 327.14, subdivision 3, that are described in
133.33section 273.124, subdivision 3a;
133.34    (6) real property that is actively and exclusively devoted to indoor fitness, health,
133.35social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
133.36and is located within the metropolitan area as defined in section 473.121, subdivision 2;
134.1    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
134.2under section 272.01, subdivision 2, and the land on which it is located, provided that:
134.3    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
134.4Airports Commission, or group thereof; and
134.5    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
134.6leased premise, prohibits commercial activity performed at the hangar.
134.7    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
134.8be filed by the new owner with the assessor of the county where the property is located
134.9within 60 days of the sale;
134.10    (8) a privately owned noncommercial aircraft storage hangar not exempt under
134.11section 272.01, subdivision 2, and the land on which it is located, provided that:
134.12    (i) the land abuts a public airport; and
134.13    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
134.14agreement restricting the use of the premises, prohibiting commercial use or activity
134.15performed at the hangar; and
134.16    (9) residential real estate, a portion of which is used by the owner for homestead
134.17purposes, and that is also a place of lodging, if all of the following criteria are met:
134.18    (i) rooms are provided for rent to transient guests that generally stay for periods
134.19of 14 or fewer days;
134.20    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
134.21in the basic room rate;
134.22    (iii) meals are not provided to the general public except for special events on fewer
134.23than seven days in the calendar year preceding the year of the assessment; and
134.24    (iv) the owner is the operator of the property.
134.25The market value subject to the 4c classification under this clause is limited to five rental
134.26units. Any rental units on the property in excess of five, must be valued and assessed as
134.27class 3a. The portion of the property used for purposes of a homestead by the owner must
134.28be classified as class 1a property under subdivision 22;
134.29    (10) real property up to a maximum of three acres and operated as a restaurant
134.30as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
134.31as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
134.32is either devoted to commercial purposes for not more than 250 consecutive days, or
134.33receives at least 60 percent of its annual gross receipts from business conducted during
134.34four consecutive months. Gross receipts from the sale of alcoholic beverages must be
134.35included in determining the property's qualification under subitem (B). The property's
134.36primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
135.1sales located on the premises must be excluded. Owners of real property desiring 4c
135.2classification under this clause must submit an annual declaration to the assessor by
135.3February 1 of the current assessment year, based on the property's relevant information for
135.4the preceding assessment year;
135.5(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
135.6as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
135.7the public and devoted to recreational use for marina services. The marina owner must
135.8annually provide evidence to the assessor that it provides services, including lake or river
135.9access to the public by means of an access ramp or other facility that is either located on
135.10the property of the marina or at a publicly owned site that abuts the property of the marina.
135.11No more than 800 feet of lakeshore may be included in this classification. Buildings used
135.12in conjunction with a marina for marina services, including but not limited to buildings
135.13used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
135.14tackle, are classified as class 3a property; and
135.15(12) real and personal property devoted to noncommercial temporary and seasonal
135.16residential occupancy for recreation purposes.
135.17    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
135.18parcel of noncommercial seasonal residential recreational property under clause (12)
135.19has the same class rates as class 4bb property, (ii) manufactured home parks assessed
135.20under clause (5), item (i), have the same class rate as class 4b property, and the market
135.21value of manufactured home parks assessed under clause (5), item (ii), has the same class
135.22rate as class 4d property if more than 50 percent of the lots in the park are occupied by
135.23shareholders in the cooperative corporation or association and a class rate of one percent if
135.2450 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
135.25recreational property and marina recreational land as described in clause (11), has a
135.26class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
135.27remaining market value, (iv) the market value of property described in clause (4) has a
135.28class rate of one percent, (v) the market value of property described in clauses (2), (6), and
135.29(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
135.30in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
135.31    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
135.32by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
135.33of the units in the building qualify as low-income rental housing units as certified under
135.34section 273.128, subdivision 3, only the proportion of qualifying units to the total number
135.35of units in the building qualify for class 4d. The remaining portion of the building shall be
135.36classified by the assessor based upon its use. Class 4d also includes the same proportion of
136.1land as the qualifying low-income rental housing units are to the total units in the building.
136.2For all properties qualifying as class 4d, the market value determined by the assessor must
136.3be based on the normal approach to value using normal unrestricted rents.
136.4    Class 4d property has a class rate of 0.75 percent.
136.5EFFECTIVE DATE.This section is effective for taxes payable in 2014 and
136.6thereafter.

136.7    Sec. 12. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:
136.8    Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or
136.94, tax-exempt property held under a lease for a term of at least one year, and not taxable
136.10under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be
136.11considered, for all purposes of taxation, as the property of the person holding it. In this
136.12subdivision, "tax-exempt property" means property owned by the United States, the state
136.13 or any of its political subdivisions, a school, or any religious, scientific, or benevolent
136.14society or institution, incorporated or unincorporated, or any corporation whose property
136.15is not taxed in the same manner as other property. This subdivision does not apply to
136.16property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses
136.17(2), (3), and (4), or to property exempt from taxation under section 272.0213.
136.18EFFECTIVE DATE.This section is effective the day following final enactment.

136.19    Sec. 13. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:
136.20    Subd. 4. Administrative appeals. (a) Companies that submit the reports under
136.21section 270.82 or 273.371 by the date specified in that section, or by the date specified by
136.22the commissioner in an extension, may appeal administratively to the commissioner prior
136.23to bringing an action in court by submitting.
136.24(b) Companies that must submit reports under section 270.82 must submit a written
136.25request with to the commissioner for a conference within ten days after the date of the
136.26commissioner's valuation certification or notice to the company, or by May June 15,
136.27whichever is earlier.
136.28(c) Companies that submit reports under section 273.371 must submit a written
136.29request to the commissioner for a conference within ten days after the date of the
136.30commissioner's valuation certification or notice to the company, or by July 1, whichever
136.31is earlier.
136.32(d) The commissioner shall conduct the conference upon the commissioner's entire
136.33files and records and such further information as may be offered. The conference must
137.1be held no later than 20 days after the date of the commissioner's valuation certification
137.2or notice to the company, or by the date specified by the commissioner in an extension.
137.3Within 60 days after the conference the commissioner shall make a final determination of
137.4the matter and shall notify the company promptly of the determination. The conference
137.5is not a contested case hearing.
137.6(b) (e) In addition to the opportunity for a conference under paragraph (a), the
137.7commissioner shall also provide the railroad and utility companies the opportunity to
137.8discuss any questions or concerns relating to the values established by the commissioner
137.9through certification or notice in a less formal manner. This does not change or modify
137.10the deadline for requesting a conference under paragraph (a), the deadline in section
137.11271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for
137.12appealing property taxes in court.
137.13EFFECTIVE DATE.This section is effective beginning with assessment year 2014.

137.14    Sec. 14. Minnesota Statutes 2012, section 273.39, is amended to read:
137.15273.39 RURAL AREA.
137.16As used in sections 273.39 to 273.41, the term "rural area" shall be deemed to mean
137.17any area of the state not included within the boundaries of any incorporated statutory
137.18city or home rule charter city, and such term shall be deemed to include both farm and
137.19nonfarm population thereof.
137.20EFFECTIVE DATE.This section is effective the day following final enactment.

137.21    Sec. 15. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:
137.22    Subdivision 1. List and notice. Within five days after the filing of such list, the
137.23court administrator shall return a copy thereof to the county auditor, with a notice prepared
137.24and signed by the court administrator, and attached thereto, which may be substantially in
137.25the following form:

137.26	State of Minnesota	)
137.27		) ss.
137.28	County of .....	)
137.29				District Court
137.30				..... Judicial District.

137.31The state of Minnesota, to all persons, companies, or corporations who have or claim
137.32any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of
137.33land described in the list hereto attached:
138.1The list of taxes and penalties on real property for the county of ...............................
138.2remaining delinquent on the first Monday in January, ......., has been filed in the office of
138.3the court administrator of the district court of said county, of which that hereto attached is a
138.4copy. Therefore, you, and each of you, are hereby required to file in the office of said court
138.5administrator, on or before the 20th day after the publication of this notice and list, your
138.6answer, in writing, setting forth any objection or defense you may have to the taxes, or any
138.7part thereof, upon any parcel of land described in the list, in, to, or on which you have or
138.8claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will
138.9be entered against such parcel of land for the taxes on such list appearing against it, and
138.10for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to
138.11the state of Minnesota on the second Monday in May, ....... The period of redemption for
138.12all lands sold to the state at a tax judgment sale shall be three years from the date of sale to
138.13the state of Minnesota if the land is within an incorporated area unless it is:
138.14(a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22;
138.15(b) homesteaded agricultural land as defined in section 273.13, subdivision 23,
138.16paragraph (a);
138.17(c) seasonal residential recreational land as defined in section 273.13, subdivisions
138.1822, paragraph (c) , and 25, paragraph (d), clause (1), in which event the period of
138.19redemption is five years from the date of sale to the state of Minnesota;
138.20(d) abandoned property and pursuant to section 281.173 a court order has been
138.21entered shortening the redemption period to five weeks; or
138.22(e) vacant property as described under section 281.174, subdivision 2, and for which
138.23a court order is entered shortening the redemption period under section 281.174.
138.24The period of redemption for all other lands sold to the state at a tax judgment sale
138.25shall be five years from the date of sale.
138.26Inquiries as to the proceedings set forth above can be made to the county auditor of
138.27..... county whose address is ......

138.28		(Signed) ..... ,
138.29 138.30		Court Administrator of the District Court of the County of .....
138.31		(Here insert list.)

138.32The notice must contain a narrative description of the various periods to redeem
138.33specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the
138.34commissioner of revenue under subdivision 2.
138.35The list referred to in the notice shall be substantially in the following form:
138.36List of real property for the county of ......................., on which taxes remain
138.37delinquent on the first Monday in January, .......
139.2Township (40), Range (20),

139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10	Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041	Subdivision of Section	Section	Tax Parcel Number	Total Tax and Penalty
139.11					$ cts.
139.12 139.13	John Jones (825 Fremont Fairfield, MN 55000)	S.E. 1/4 of S.W. 1/4	10	23101	2.20
139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32	Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000)	That part of N.E. 1/4 of S.W. 1/4 desc. as follows: Beg. at the S.E. corner of said N.E. 1/4 of S.W. 1/4; thence N. along the E. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence W. parallel with the S. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence S. parallel with said E. line a distance of 600 ft. to S. line of said N.E. 1/4 of S.W. 1/4; thence E. along said S. line a distance of 600 ft. to the point of beg.	21	33211	3.15

139.33As to platted property, the form of heading shall conform to circumstances and be
139.34substantially in the following form:
139.36Brown's Addition, or Subdivision

139.37 139.38 139.39 139.40 139.41 139.42 139.43 139.44	Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041	Lot	Block	Tax Parcel Number	Total Tax and Penalty
139.45					$ cts.
140.1 140.2	John Jones (825 Fremont Fairfield, MN 55000)	15	9	58243	2.20
140.3 140.4 140.5 140.6 140.7	Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000)	16	9	58244	3.15

140.8The names, descriptions, and figures employed in parentheses in the above forms are
140.9merely for purposes of illustration.
140.10The name of the town, township, range or city, and addition or subdivision, as the
140.11case may be, shall be repeated at the head of each column of the printed lists as brought
140.12forward from the preceding column.
140.13Errors in the list shall not be deemed to be a material defect to affect the validity
140.14of the judgment and sale.
140.15EFFECTIVE DATE.This section is effective for lists and notices required after
140.16December 31, 2013.

140.17    Sec. 16. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:
140.18    Subd. 2. Approval; recording. The commissioner shall approve all initial
140.19applications that qualify under this chapter and shall notify qualifying homeowners on or
140.20before December 1. The commissioner may investigate the facts or require confirmation
140.21in regard to an application. The commissioner shall record or file a notice of qualification
140.22for deferral, including the names of the qualifying homeowners and a legal description
140.23of the property, in the office of the county recorder, or registrar of titles, whichever is
140.24applicable, in the county where the qualifying property is located. The notice must state
140.25that it serves as a notice of lien and that it includes deferrals under this section for future
140.26years. The commissioner shall prescribe the form of the notice. Execution of the notice
140.27by the original or facsimile signature of the commissioner or a delegate entitles them to
140.28be recorded, and no other attestation, certification, or acknowledgment is necessary. The
140.29homeowner shall pay the recording or filing fees for the notice, which, notwithstanding
140.30section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
140.31EFFECTIVE DATE.This section is effective for notices that are both executed
140.32and recorded after June 30, 2013.

140.33    Sec. 17. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
140.34    Subd. 3. Occupation tax; other ores. Every person engaged in the business of
140.35mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
141.1taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
141.2in this subdivision. For purposes of this subdivision, mining includes the application of
141.3hydrometallurgical processes. Hydrometallurgical processes are processes that extract
141.4the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
141.5recover the ore, metal, or mineral. The tax is determined in the same manner as the tax
141.6imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17,
141.7subdivision 4 , and 290.191, subdivision 2, do not apply, and the occupation tax must
141.8be computed by applying to taxable income the rate of 2.45 percent. A person subject
141.9to occupation tax under this section shall apportion its net income on the basis of the
141.10percentage obtained by taking the sum of:
141.11(1) 75 percent of the percentage which the sales made within this state in connection
141.12with the trade or business during the tax period are of the total sales wherever made in
141.13connection with the trade or business during the tax period;
141.14(2) 12.5 percent of the percentage which the total tangible property used by the
141.15taxpayer in this state in connection with the trade or business during the tax period is of
141.16the total tangible property, wherever located, used by the taxpayer in connection with the
141.17trade or business during the tax period; and
141.18(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
141.19in this state or paid in respect to labor performed in this state in connection with the trade
141.20or business during the tax period are of the taxpayer's total payrolls paid or incurred in
141.21connection with the trade or business during the tax period.
141.22The tax is in addition to all other taxes.
141.23EFFECTIVE DATE.This section is effective the day following final enactment.

141.24    Sec. 18. Minnesota Statutes 2012, section 298.018, is amended to read:
141.25298.018 DISTRIBUTION OF PROCEEDS.
141.26    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid
141.27under sections 298.015 and 298.016 on ores, metals, or minerals and energy resources
141.28 mined or extracted within the taconite assistance area defined in section 273.1341, shall
141.29be allocated as follows:
141.30(1) five percent to the city or town within which the minerals or energy resources
141.31are mined or extracted;
141.32(2) ten percent to the taconite municipal aid account to be distributed as provided
141.33in section 298.282;
142.1(3) ten percent to the school district within which the minerals or energy resources
142.2are mined or extracted;
142.3(4) 20 percent to a group of school districts comprised of those school districts
142.4wherein the mineral or energy resource was mined or extracted or in which there is a
142.5qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion
142.6to school district indexes as follows: for each school district, its pupil units determined
142.7under section 126C.05 for the prior school year shall be multiplied by the ratio of the
142.8average adjusted net tax capacity per pupil unit for school districts receiving aid under
142.9this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
142.10ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
142.11Each district shall receive that portion of the distribution which its index bears to the sum
142.12of the indices for all school districts that receive the distributions;
142.13(5) 20 percent to the county within which the minerals or energy resources are
142.14mined or extracted;
142.15(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
142.16distributed as provided in sections 273.134 to 273.136;
142.17(7) five percent to the Iron Range Resources and Rehabilitation Board for the
142.18purposes of section 298.22;
142.19(8) five percent to the Douglas J. Johnson economic protection trust fund; and
142.20(9) five percent to the taconite environmental protection fund.
142.21The proceeds of the tax shall be distributed on July 15 each year.
142.22    Subd. 2. Outside taconite assistance area. The proceeds of the tax paid under
142.23sections 298.015 and 298.016 on ores, metals, or minerals and energy resources mined
142.24or extracted outside of the taconite assistance area defined in section 273.1341, shall
142.25be deposited in the general fund.
142.26EFFECTIVE DATE.This section is effective the day following final enactment.

142.27    Sec. 19. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:
142.28    Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic
142.29and corporate and may:
142.30    (1) Sue and be sued.
142.31    (2) Acquire and hold real and personal property for the use of the county, and lands
142.32sold for taxes as provided by law.
142.33    (3) Purchase and hold for the benefit of the county real estate sold by virtue of
142.34judicial proceedings, to which the county is a party.
143.1    (4) Sell, lease, and convey real or personal estate owned by the county, and give
143.2contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
143.3conducive to the interests of the county's inhabitants.
143.4    (5) Make all contracts and do all other acts in relation to the property and concerns
143.5of the county necessary to the exercise of its corporate powers.
143.6    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease
143.7of a residence acquired for the furtherance of an approved capital improvement project, nor
143.8any contract or option for it, shall be valid, without first advertising for bids or proposals in
143.9the official newspaper of the county for three consecutive weeks and once in a newspaper
143.10of general circulation in the area where the property is located. The notice shall state the
143.11time and place of considering the proposals, contain a legal description of any real estate,
143.12and a brief description of any personal property. Leases that do not exceed $15,000 for any
143.13one year may be negotiated and are not subject to the competitive bid procedures of this
143.14section. All proposals estimated to exceed $15,000 in any one year shall be considered at
143.15the time set for the bid opening, and the one most favorable to the county accepted, but the
143.16county board may, in the interest of the county, reject any or all proposals.
143.17    (c) Sales of personal property the value of which is estimated to be $15,000 or
143.18more shall be made only after advertising for bids or proposals in the county's official
143.19newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
143.20time it posts on its Web site or publishes in a trade journal, the county must publish in the
143.21official newspaper, either as part of the minutes of a regular meeting of the county board
143.22or in a separate notice, a summary of all requests for bids or proposals that the county
143.23advertises on its Web site or in a trade journal. After publication in the official newspaper,
143.24on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
143.25the electronic selling process authorized in section 471.345, subdivision 17. Sales of
143.26personal property the value of which is estimated to be less than $15,000 may be made
143.27either on competitive bids or in the open market, in the discretion of the county board.
143.28"Web site" means a specific, addressable location provided on a server connected to the
143.29Internet and hosting World Wide Web pages and other files that are generally accessible
143.30on the Internet all or most of a day.
143.31    (d) Notwithstanding anything to the contrary herein, the county may, when acquiring
143.32real property for county highway right-of-way, exchange parcels of real property of
143.33substantially similar or equal value without advertising for bids. The estimated values for
143.34these parcels shall be determined by the county assessor.
143.35(e) Notwithstanding anything in this section to the contrary, the county may, when
143.36acquiring real property for purposes other than county highway right-of-way, exchange
144.1parcels of real property of substantially similar or equal value without advertising for
144.2bids. The estimated values for these parcels must be determined by the county assessor
144.3or a private appraisal performed by a licensed Minnesota real estate appraiser. For the
144.4purpose of determining for the county the estimated values of parcels proposed to be
144.5exchanged, the county assessor need not be licensed under chapter 82B. Before giving
144.6final approval to any exchange of land, the county board shall hold a public hearing on
144.7the exchange. At least two weeks before the hearing, the county auditor shall post a
144.8notice in the auditor's office and the official newspaper of the county of the hearing that
144.9contains a description of the lands affected.
144.10    (f) If real estate or personal property remains unsold after advertising for and
144.11consideration of bids or proposals the county may employ a broker to sell the property.
144.12The broker may sell the property for not less than 90 percent of its appraised market value
144.13as determined by the county. The broker's fee shall be set by agreement with the county but
144.14may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
144.15    (g) A county or its agent may rent a county-owned residence acquired for the
144.16furtherance of an approved capital improvement project subject to the conditions set
144.17by the county board and not subject to the conditions for lease otherwise provided by
144.18paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
144.19    (h) In no case shall lands be disposed of without there being reserved to the county
144.20all iron ore and other valuable minerals in and upon the lands, with right to explore for,
144.21mine and remove the iron ore and other valuable minerals, nor shall the minerals and
144.22mineral rights be disposed of, either before or after disposition of the surface rights,
144.23otherwise than by mining lease, in similar general form to that provided by section 93.20
144.24for mining leases affecting state lands. The lease shall be for a term not exceeding 50
144.25years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
144.262,240 pounds, and fix a minimum amount of royalty payable during each year, whether
144.27mineral is removed or not. Prospecting options for mining leases may be granted for
144.28periods not exceeding one year. The options shall require, among other things, periodical
144.29showings to the county board of the results of exploration work done.
144.30    (i) Notwithstanding anything in this subdivision to the contrary, the county may,
144.31when selling real property owned in fee simple that cannot be improved because of
144.32noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
144.33proceed to sell the nonconforming parcel without advertising for bid. At the county's
144.34discretion, the real property may be restricted to sale to adjoining landowners or may be
144.35sold to any other interested party. The property shall be sold to the highest bidder, but in no
144.36case shall the property be sold for less than 90 percent of its fair market value as determined
145.1by the county assessor. All owners of land adjoining the land to be sold shall be given a
145.2written notice at least 30 days before the sale. This paragraph shall be liberally construed to
145.3encourage the sale of nonconforming real property and promote its return to the tax roles.
145.4EFFECTIVE DATE.This section is effective the day following final enactment.

145.5    Sec. 20. REPEALER.
145.6Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, are
145.7repealed.
145.8EFFECTIVE DATE.This section is effective the day following final enactment."
145.9Delete the title and insert:
145.11relating to property taxation; modifying the definition of income for the property
145.12tax refund; decreasing the threshold percentage for the homestead credit
145.13refund for homeowners and the property tax refund for renters; increasing
145.14the maximum refunds for renters; changing property tax aids and credits;
145.15modifying pension aids; providing pension funding; modifying definitions for
145.16property taxes; authorizing economic development powers; imposing a tax
145.17on extraction and processing of fracturing sand; requiring a study of the Iron
145.18Range fiscal disparities program; authorizing local sales taxes; modifying the
145.19definition of market value for tax, debt, and other purposes; making policy
145.20and technical changes to property tax provisions; providing criminal penalties;
145.21appropriating money;amending Minnesota Statutes 2012, sections 38.18;
145.2240A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by
145.23adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245,
145.24subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5;
145.25103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4;
145.26103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 117.025, subdivision 7;
145.27123A.455, subdivision 1; 127A.48, subdivision 1; 138.053; 144F.01, subdivision
145.284; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.06, subdivision 6;
145.29165.10, subdivision 1; 270.077; 270.41, subdivision 5; 270C.34, subdivision 1;
145.30272.01, subdivision 2; 272.02, subdivision 97, by adding subdivisions; 272.03,
145.31subdivision 9, by adding subdivisions; 273.032; 273.11, subdivision 1, by adding
145.32a subdivision; 273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13,
145.33subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1;
145.34273.372, subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2;
145.35275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13,
145.3615; 276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision;
145.37279.02; 279.06, subdivision 1; 287.05, by adding a subdivision; 287.08;
145.38287.23, subdivision 1; 290A.03, subdivision 3; 290A.04, subdivisions 2, 2a, 4;
145.39290B.04, subdivision 2; 298.01, subdivision 3; 298.018; 298.28, subdivisions
145.404, 6, 9a; 298.75, subdivision 2; 353G.08, subdivision 2; 365.025, subdivision
145.414; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01;
145.42373.01, subdivision 1; 373.40, subdivisions 1, 4; 375.167, subdivision 1; 375.18,
145.43subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383E.20;
145.44383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05,
145.45subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1;
145.46430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision
145.471; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions
145.484, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a
145.49subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, by adding a subdivision;
146.1469.180, subdivision 2; 469.187; 469.190, subdivision 7, by adding a subdivision;
146.2469.206; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2;
146.3473.629; 473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711,
146.4subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivision 10,
146.5by adding a subdivision; 475.521, subdivision 4; 475.53, subdivisions 1, 3,
146.64; 475.58, subdivision 2; 475.73, subdivision 1; 477A.011, subdivisions 20,
146.730, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013,
146.8subdivisions 8, 9, by adding a subdivision; 477A.03, subdivisions 2a, 2b, by
146.9adding a subdivision; 641.23; 641.24; 645.44, by adding a subdivision; Laws
146.101988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 9,
146.11section 46, subdivision 2, as amended; Laws 1999, chapter 243, article 6, section
146.1211; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions
146.132, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as amended; article
146.147, section 19, subdivision 3, as amended; Laws 2010, chapter 389, article 1,
146.15section 12; proposing coding for new law in Minnesota Statutes, chapters 116C;
146.16287; 290A; 297I; proposing coding for new law as Minnesota Statutes, chapter
146.17297J; repealing Minnesota Statutes 2012, sections 272.69; 273.11, subdivisions
146.181a, 22; 276A.01, subdivision 11; 383A.80, subdivision 4; 383B.80, subdivision
146.194; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19,
146.2021, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions 11, 12; 477A.0133;
146.21477A.0134; Laws 2006, chapter 259, article 11, section 3, as amended."