STATE OF MINNESOTA
EIGHTY-FIFTH SESSION - 2008
_____________________
ONE HUNDRED NINTH DAY
Saint Paul, Minnesota, Wednesday, April 30,
2008
The House of Representatives convened at 10:30 a.m. and was
called to order by Margaret Anderson Kelliher, Speaker of the House.
Prayer was offered by Pastor Chris DeGraff, Grace Lutheran
Church, Andover, Minnesota.
The members of the House gave the pledge of allegiance to the
flag of the United States of America.
The roll was called and the following members were present:
Abeler
Anderson, B.
Anderson, S.
Anzelc
Atkins
Benson
Berns
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Clark
Cornish
Davnie
Dean
DeLaForest
Demmer
Dettmer
Dill
Dittrich
Dominguez
Doty
Drazkowski
Eastlund
Eken
Emmer
Erhardt
Erickson
Faust
Finstad
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hortman
Hosch
Howes
Huntley
Jaros
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kohls
Kranz
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Madore
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Nornes
Norton
Olin
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Rukavina
Ruth
Ruud
Sailer
Scalze
Seifert
Sertich
Severson
Shimanski
Simon
Simpson
Slawik
Slocum
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Tingelstad
Tschumper
Urdahl
Wagenius
Walker
Ward
Wardlow
Welti
Westrom
Winkler
Wollschlager
Zellers
Spk. Kelliher
A quorum was present.
Beard, Hornstein and Moe were excused.
The Chief Clerk proceeded to read the Journal of the preceding
day. Norton moved that further reading
of the Journal be suspended and that the Journal be approved as corrected by
the Chief Clerk. The motion prevailed.
REPORTS
OF CHIEF CLERK
S. F. No. 3096 and
H. F. No. 3669, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
SUSPENSION
OF RULES
Kalin moved that the rules be so far suspended that
S. F. No. 3096 be substituted for H. F. No. 3669
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 3189 and
H. F. No. 3490, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Bigham moved that S. F. No. 3189 be substituted
for H. F. No. 3490 and that the House File be indefinitely
postponed. The motion prevailed.
S. F. No. 3486 and
H. F. No. 3873, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
SUSPENSION
OF RULES
Rukavina moved that the rules be so far suspended that
S. F. No. 3486 be substituted for H. F. No. 3873
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 3715 and
H. F. No. 4014, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Fritz moved that S. F. No. 3715 be substituted
for H. F. No. 4014 and that the House File be indefinitely
postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Carlson
from the Committee on Finance to which was referred:
H. F.
No. 863, A bill for an act relating to global warming and the environment;
requiring adoption of California standards regarding low emission vehicles;
providing for updates to the standards as necessary to comply with the federal
Clean Air Act; amending Minnesota Statutes 2006, section 116.07, subdivision 2.
Reported
the same back with the following amendments:
Delete
everything after the enacting clause and insert:
"Section
1. Minnesota Statutes 2006, section
116.07, subdivision 2, is amended to read:
Subd.
2. Adoption
of standards. (a) The
Pollution Control Agency shall improve air quality by promoting, in the most
practicable way possible, the use of energy sources and waste disposal methods
which produce or emit the least air contaminants consistent with the agency's
overall goal of reducing all forms of pollution. The agency shall
also
adopt standards of air quality, including maximum allowable standards of
emission of air contaminants from motor vehicles, recognizing that due to
variable factors, no single standard of purity of air is applicable to all
areas of the state. In adopting
standards the Pollution Control Agency shall give due recognition to the fact
that the quantity or characteristics of air contaminants or the duration of
their presence in the atmosphere, which may cause air pollution in one area of
the state, may cause less or not cause any air pollution in another area of the
state, and it shall take into consideration in this connection such factors,
including others which it may deem proper, as existing physical conditions,
zoning classifications, topography, prevailing wind directions and velocities,
and the fact that a standard of air quality which may be proper as to an
essentially residential area of the state, may not be proper as to a highly
developed industrial area of the state.
Such standards of air quality shall be premised upon scientific
knowledge of causes as well as effects based on technically substantiated
criteria and commonly accepted practices.
No local government unit shall set standards of air quality which are
more stringent than those set by the Pollution Control Agency.
(b)
The Pollution Control Agency shall adopt rules, as authorized under the federal
Clean Air Act, United States Code, title 42, section 7507, to regulate emission
standards of motor vehicles sold in this state. The rules:
(1)
must be adopted under section 14.388, subdivision 1, clause (3);
(2)
except as provided in clauses (3) to (5), must be identical to and must
incorporate by reference the California low emission vehicle regulations
adopted by the California Air Resources Board under the California Code of
Regulations, title 13, sections 1900 to 2235;
(3)
must not include the zero emission vehicle standards contained in California
Code of Regulations, title 13, section 1962;
(4)
must not include the 15-year or 150,000-mile extended warranty specified in
California Code of Regulations, title 13, section 1962, for partial zero
emission vehicles, provided that partial zero emission vehicles delivered for
sale to Minnesota are equipped with the same quality components as partial zero
emission vehicles supplied to areas where the full 15-year or 150,000-mile
warranty remains in effect. This
section does not amend the requirements of California Code of Regulations,
title 13, section 1962, that indicate the warranty period for a zero emission
energy storage device used for traction power will be ten years;
(5)
must not include any fuel standards set forth in California Code of
Regulations, title 13, sections 2250 et. seq.;
(6)
must be amended as necessary in a timely fashion to minimize the time during
which Minnesota's rules are not identical with California's regulations, as
required under United States Code, title 42, section 7507. Amendments under this clause must be made
under section 14.388, subdivision 1, clause (3); and
(7)
must state that each section of the rules is severable, and that if any section
is held invalid, the remainder will continue in full force and effect.
If
the California emission standards referred to under this section are extended
to off-road vehicles or engines including, but not limited to, all-terrain
vehicles, snowmobiles, boats, aircraft, lawnmowers, tractors, farm machinery,
or construction equipment, this section is no longer effective, and Minnesota
reverts to the federal motor vehicle emissions standards by operation of law
without requiring further executive or legislative branch action.
Any
portion of California's regulations requiring a federal waiver under the Clean
Air Act in order to become effective may not be enforced in Minnesota unless
and until California receives the requisite federal waiver.
At
least 30 days prior to beginning to adopt rules under this paragraph, the
commissioner of the Pollution Control Agency must notify the governor,
commissioner of agriculture, commissioner of commerce, and chairs and ranking
minority members of the senate and house of representatives committees with
primary jurisdiction over agricultural policy and finance, environmental policy
and finance, and commerce policy and finance of the commissioner's intention to
adopt rules under this paragraph.
Beginning
January 1, 2009, and each year thereafter, the commissioner must submit to the
governor, commissioner of agriculture, commissioner of commerce, and chairs and
ranking minority members of the senate and house of representatives committees
with primary jurisdiction over agricultural policy and finance, environmental
policy and finance, and commerce policy and finance a report containing the
following information, to the extent it is available:
(1)
for each motor vehicle manufacturer:
(i)
the makes and models of flexible fuel vehicles offered for sale in Minnesota;
and
(ii)
the percentage of flexible fuel vehicles offered for sale in Minnesota that are
engineered for optimal performance using E85; and
(2)
for each of the 50 states:
(i)
the number of E85 pumps operating;
(ii)
gross sales of E85; and
(iii)
the market share of E85 as a proportion of total fuel purchased for motor
vehicle use.
(c)
The
Pollution Control Agency shall promote solid waste disposal control by
encouraging the updating of collection systems, elimination of open dumps, and
improvements in incinerator practices.
The agency shall also adopt standards for the control of the collection,
transportation, storage, processing, and disposal of solid waste and sewage
sludge for the prevention and abatement of water, air, and land pollution,
recognizing that due to variable factors, no single standard of control is
applicable to all areas of the state.
In adopting standards, the Pollution Control Agency shall give due
recognition to the fact that elements of control which may be reasonable and
proper in densely populated areas of the state may be unreasonable and improper
in sparsely populated or remote areas of the state, and it shall take into
consideration in this connection such factors, including others which it may
deem proper, as existing physical conditions, topography, soils and geology,
climate, transportation, and land use.
Such standards of control shall be premised on technical criteria and
commonly accepted practices.
(d)
The
Pollution Control Agency shall also adopt standards describing the maximum
levels of noise in terms of sound pressure level which may occur in the outdoor
atmosphere, recognizing that due to variable factors no single standard of
sound pressure is applicable to all areas of the state. Such standards shall give due consideration
to such factors as the intensity of noises, the types of noises, the frequency
with which noises recur, the time period for which noises continue, the times
of day during which noises occur, and such other factors as could affect the
extent to which noises may be injurious to human health or welfare, animal or
plant life, or property, or could interfere unreasonably with the enjoyment of
life or property. In adopting
standards, the Pollution Control Agency shall give due recognition to the fact
that the quantity or characteristics of noise or the duration of its presence
in the outdoor atmosphere, which may cause noise pollution in one area of the
state, may cause less or not cause any noise pollution in another area of the
state, and it shall take into consideration in this connection such factors,
including others which it may deem proper, as existing physical conditions,
zoning classifications, topography, meteorological conditions and the fact that
a standard which may be proper in an essentially residential area of the state,
may not be proper as to a highly developed industrial area of the state. Such noise standards shall be premised upon
scientific
knowledge
as well as effects based on technically substantiated criteria and commonly
accepted practices. No local governing
unit shall set standards describing the maximum levels of sound pressure which
are more stringent than those set by the Pollution Control Agency.
(e)
The
Pollution Control Agency shall adopt standards for the identification of
hazardous waste and for the management, identification, labeling,
classification, storage, collection, transportation, processing, and disposal
of hazardous waste, recognizing that due to variable factors, a single standard
of hazardous waste control may not be applicable to all areas of the
state. In adopting standards, the
Pollution Control Agency shall recognize that elements of control which may be
reasonable and proper in densely populated areas of the state may be
unreasonable and improper in sparsely populated or remote areas of the
state. The agency shall consider
existing physical conditions, topography, soils, and geology, climate,
transportation and land use. Standards
of hazardous waste control shall be premised on technical knowledge, and
commonly accepted practices. Hazardous
waste generator licenses may be issued for a term not to exceed five
years. No local government unit shall
set standards of hazardous waste control which are in conflict or inconsistent
with those set by the Pollution Control Agency.
A
person who generates less than 100 kilograms of hazardous waste per month is
exempt from the following agency hazardous waste rules:
(1)
rules relating to transportation, manifesting, storage, and labeling for
photographic fixer and X-ray negative wastes that are hazardous solely because
of silver content; and
(2)
any rule requiring the generator to send to the agency or commissioner a copy
of each manifest for the transportation of hazardous waste for off-site
treatment, storage, or disposal, except that counties within the metropolitan
area may require generators to provide manifests.
Nothing in this paragraph
exempts the generator from the agency's rules relating to on-site accumulation
or outdoor storage. A political
subdivision or other local unit of government may not adopt management requirements
that are more restrictive than this paragraph.
EFFECTIVE DATE. This section is effective July 1, 2009.
Sec.
2. STUDY.
The
commissioner of the Pollution Control Agency shall issue a request for
proposals from academic institutions within the state to complete a study
regarding the implementation of this act.
The study must be submitted to the legislature by February 1, 2009. The study must address the following:
(1)
the differences between California low emission vehicle (LEV) regulations and
federal regulations;
(2)
a summary of the numbers of flexible fuel vehicles (FFV's) sold and the amount
of E85 fuel used in California and other states that have adopted the
California LEV regulations, compared with the numbers of FFV's sold and the
amount ot E85 fuel used in states utilizing federal regulations. The summary should be based on the ratio of
FFV's to gasoline vehicles;
(3)
any negative impact that the California standards would have on the
availability of the purchase of FFV's and E85 in Minnesota;
(4)
recommendations as to how an automaker would certify that E85 is being used in
FFV's;
(5)
an analysis of the extent that California uses survey reports to determine E85
use in FFV's;
(6)
an analysis of using the GM On-Star and similar computer systems to determine
E85 use in FFV's, including the ability of the system to collect the data, the
current availability of On-Star type systems on FFV's and the cost of adding
the technology on those vehicles, and whether collection of the data violates
state privacy laws;
(7)
a summary of national use of high occupancy vehicle (HOV) lanes by vehicles
that operate on alternative fuels, including whether FFV's are permitted to use
HOV lanes and any difficulties in determining the type of fuel being used;
(8)
a review of the evolution of the California LEV regulations and any planned
future changes, including:
(i)
how those changes impact the availability of FFV's and whether they encourage
broader use of renewable fuels;
(ii)
a summary of past, present, and future biofuel use; and
(iii)
a summary of California's transportation planning, including any anticipated
reliance on particular transportation components, such as all-electric
vehicles, use of biodiesel and ethanol fuels, and the like; and
(9)
an analysis of California vehicle and gasoline test methodology and
certifications, including:
(i)
whether FFV's are tested on gasoline grades sold in Minnesota;
(ii)
why FFV's are not tested on E85;
(iii)
what are lifecycle emission impacts associated with E85 use;
(iv)
how California gasoline differs from that of other regions and federally
reformulated gasoline;
(v)
what are the emission impacts of using Minnesota gasoline in
California-certified vehicles, compared with modeled emission impacts; and
(vi)
the impact on Minnesota air pollution if California LEV standards are adopted,
given that California is NOx-limited for ground-level ozone formation and
Minnesota is a VOC-limited air shed.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec.
3. ADOPTION.
The
rules under section 1 must be adopted and made effective by September 30, 2009,
and shall be effective for motor vehicles with a model year of 2013 and
later. The rules adopted under section
1 do not affect collector vehicles or street rods under Minnesota Statutes,
section 168.10."
Delete
the title and insert:
"A
bill for an act relating to air pollution; requiring adoption of emission
standards for motor vehicles; providing for updates as necessary to comply with
the Clean Air Act; requiring reports and a study; amending Minnesota Statutes
2006, section 116.07, subdivision 2."
With
the recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
The report was adopted.
Carlson
from the Committee on Finance to which was referred:
H. F.
No. 2291, A bill for an act relating to education finance; providing full
funding for Telecommunications /Internet access equity aid; appropriating
money.
Reported
the same back with the following amendments:
Delete
everything after the enacting clause and insert:
"Section
1. Minnesota Statutes 2006, section
120B.36, as amended by Laws 2007 chapter 14, article 2, section 11, is amended
to read:
120B.36 SCHOOL ACCOUNTABILITY; APPEALS
PROCESS.
Subdivision
1. School
performance report cards. (a) The
commissioner shall use objective criteria based on levels of student
performance to report at least student academic performance, school safety, two
separate student-to-teacher ratios that clearly indicate the definition of
teacher consistent with sections 122A.06 and 122A.15 for purposes of
determining these ratios, and staff characteristics, with a value-added
component added no later than the 2008-2009 school year. The report must indicate a school's adequate
yearly progress status, and must not set any designations applicable to high-
and low-performing schools due solely to adequate yearly progress status.
(b)
The commissioner shall develop, annually update, and post on the department Web
site school performance report cards.
(c)
The commissioner must make available the first performance report cards by
November 2003, and during the beginning of each school year thereafter.
(d) A
school or district may appeal its adequate yearly progress or other
status determination in writing to the commissioner within 30 days of
receiving the notice of its status. determination. The commissioner must give the affected
school or school district notice and the opportunity for a hearing before an
appeals advisory committee within 30 days after the commissioner receives the
written appeal. The commissioner must
notify the school or district of the date, time, and place of the hearing at
least 21 days before the hearing date.
Within 30 days after the hearing, the appeals advisory committee must
submit a written recommendation to the commissioner regarding whether to grant
or deny the appeal and include the reasons for its recommendation. The commissioner must finally decide an
appeal based on an objective evaluation and must make and transmit to the
school or district the commissioner's evaluation and final decision within 15
days of receiving the advisory committee recommendation. The commissioner, after consulting with the
appeals advisory committee, may postpone the hearing date under special
circumstances. The appeals advisory
committee is composed of five members:
(1)
a representative of a statewide professional teachers organization selected by
the organization;
(2)
a representative of a statewide organization of school administrators selected
by the organization;
(3)
a representative of a statewide parent and teachers organization selected by
the organization;
(4)
a representative of a statewide commerce organization having a significant
interest in kindergarten through grade 12 education selected by the
organization; and
(5)
a representative of a statewide school boards association selected by the
organization.
Membership
terms and removal of members are governed by section 15.059, except that the
terms are three years. The commissioner
may reimburse members for expenses under section 15.059 only if federal funding
is available for this purpose. The
appeals advisory committee does not expire.
The
commissioner must seek the advice of the appeals advisory committee before
deciding an appeal. The commissioner's decision
to uphold or deny an appeal is final.
(e)
School performance report cards data are nonpublic data under section 13.02,
subdivision 9, until not later than ten days after the appeal procedure described
in paragraph (d) concludes. The
department shall annually post school performance report cards to its public
Web site no later than September 1.
Subd.
1a. GRAD
test appeals. (a) Consistent
with this subdivision, the commissioner must collaborate with high school
teachers, high school administrators, parents of high school students, school
district assessment directors, higher education faculty with expertise in
kindergarten through grade 12 education and assessment, and other interested
experts and stakeholders to establish a timely, transparent, and data-based
appeals process that allows school districts, at their discretion, to grant a
diploma to high school seniors in the 2008-2009, 2009-2010, and 2010-2011
school years who do not receive a passing score on the state reading or
mathematics GRAD test.
(b)
A high school student in the 2008-2009, 2009-2010, or 2010-2011 school year who
does not receive a passing score on the state reading or mathematics GRAD test
by April of the student's senior year may appeal to the chief administrator of
the high school where the student is enrolled, in the form and manner the
commissioner determines, requesting that the school district grant the student
a high school diploma without passing the reading or mathematics GRAD
test. The high school administrator, in
collaboration with teachers and other school staff selected by the
administrator, must formally decide whether or not to grant the student a high
school diploma based on multiple, well-understood measures of student learning
that measurement experts have determined to be valid and reliable and that are
available to the educators deciding whether or not to grant the student's
request. School district officials must
use the data that form the bases of the student appeals under this subdivision,
where appropriate, to revise district curriculum to ensure that all students
have an equal opportunity to learn and provide appropriate academic
intervention and remediation to students who fail to pass the state's reading
or mathematics GRAD test.
(c)
The commissioner must evaluate the effectiveness and impact of the appeals
process and recommend to the legislature by February 1, 2011, whether or not to
continue the appeals process under this subdivision. If the commissioner recommends continuing this process, the
commissioner also must recommend student performance levels for the state
reading and mathematics GRAD tests and the appropriate indicators for school
districts to consider in deciding whether or not to grant a diploma to high
school seniors who do not receive a passing score on the state reading or
mathematics GRAD test.
Subd.
2. Adequate
yearly progress data. All data the
department receives, collects, or creates for purposes of determining adequate
yearly progress designations under Public Law 107-110, section 1116, are
nonpublic data under section 13.02, subdivision 9, until not later than ten
days after the appeal procedure described in subdivision 1, paragraph (d),
concludes. Districts must provide parents
sufficiently detailed summary data to permit parents to appeal under Public Law
107-110, section 1116(b)(2). The
department shall annually post adequate yearly progress data to its public Web
site no later than September 1.
Sec.
2. DEPARTMENT
OF EDUCATION REPORT.
The
Department of Education must submit a report to the education committees of the
legislature by January 15, 2009, analyzing existing stand-alone school district
reporting requirements and recommend the elimination of any district reports
that are duplicative of other data already collected by the department."
Delete
the title and insert:
"A
bill for an act relating to education; modifying provisions governing appeals
of graduation test scores; amending Minnesota Statutes 2006, section 120B.36,
as amended."
With
the recommendation that when so amended the bill pass and be re-referred to the
Committee on Ways and Means.
The report was adopted.
Solberg
from the Committee on Ways and Means to which was referred:
H. F.
No. 2351, A bill for an act relating to telecommunications; requiring a study
of the impact of state video franchising in states that have enacted such
legislation; appropriating money.
Reported
the same back with the recommendation that the bill pass.
The report was adopted.
Lenczewski
from the Committee on Taxes to which was referred:
H. F.
No. 3149, A bill for an act relating to taxation; making policy, technical,
administrative, and clarifying changes to various taxes and fees and related
provisions; changing provisions relating to government data practices and debt
collection; providing for compliance with job opportunity building zone
requirements; amending Minnesota Statutes 2006, sections 13.51, subdivision 3;
13.585, subdivision 5; 16D.02, subdivisions 3, 6; 16D.04, subdivision 2;
163.051, subdivision 5; 270A.08, subdivision 1; 270C.33, subdivision 5;
270C.56, subdivision 1; 272.02, subdivisions 13, 20, 21, 27, 31, 38, 49;
272.03, subdivision 3, by adding a subdivision; 273.11, subdivision 8; 273.124,
subdivisions 6, 13, 21; 273.128, subdivision 1; 273.13, subdivisions 22, 23,
25, 33; 274.01, subdivision 3; 274.014, subdivision 3; 276.04, subdivision 2;
287.20, subdivisions 3a, 9, by adding a subdivision; 289A.18, subdivision 1;
289A.55, by adding a subdivision; 289A.60, by adding a subdivision; 290.01,
subdivision 6b; 290.068, subdivision 3; 290.07, subdivision 1; 290.21,
subdivision 4; 290.92, subdivision 26; 290B.04, subdivision 1; 295.50,
subdivision 4; 295.52, subdivision 4; 295.53, subdivision 4a; 296A.07,
subdivision 4; 296A.08, subdivision 3; 296A.16, subdivision 2; 297A.61,
subdivisions 22, 29; 297A.665; 297A.67, subdivision 7; 297A.995, subdivision
10, by adding subdivisions; 297B.01, subdivision 7; 297B.03; 297F.01,
subdivision 8; 297F.21, subdivision 1; 297G.01, subdivision 9; 297H.09;
297I.05, subdivision 12; 469.040, subdivision 4; 469.174, subdivision 10b;
469.177, subdivision 1c; 469.319; 477A.03, subdivision 2a; Minnesota Statutes
2007 Supplement, sections 115A.1314, subdivision 2; 273.1231, subdivision 7, by
adding a subdivision; 273.1232, subdivision 1; 273.1233, subdivisions 1, 3;
273.1234; 273.1235, subdivisions 1, 3; proposing coding for new law in
Minnesota Statutes, chapters 273; 469; repealing Minnesota Statutes 2006,
section 477A.014, subdivision 5; Minnesota Statutes 2007 Supplement, section
477A.014, subdivision 4; Minnesota Rules, parts 8031.0100, subpart 3;
8093.2100.
Reported
the same back with the following amendments:
Delete
everything after the enacting clause and insert:
"ARTICLE
1
HOMESTEAD
CREDIT STATE REFUND
Section
1. Minnesota Statutes 2006, section
273.1384, subdivision 1, is amended to read:
Subdivision
1. Residential
homestead market value credit. (a)
Each county auditor shall determine a homestead credit for each class 1a,
1b, and 2a homestead property within the county equal to 0.4 percent of the
first $76,000 of market value of the property minus .09 percent of the market
value in excess of $76,000. The credit
amount may not be less than zero. In
the case of an agricultural or resort homestead, only the market value of the
house, garage, and immediately surrounding one acre of land is eligible in
determining the property's homestead credit.
In the case of a property that is classified as part homestead and part
nonhomestead, (i) the credit shall apply only to the homestead portion of the
property, but (ii) if a portion of a property is classified as nonhomestead
solely because not all the owners occupy the property, not all the owners have
qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially
computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of
ownership for the owner-occupant spouse is one-half of the couple's ownership
percentage.
(b)
For property taxes payable in 2009 and thereafter, the county auditor shall
determine the amount of the homestead credit under paragraph (a) and this
paragraph. The county auditor shall
report the amount of the credit to the taxpayer on the property tax statement
or in another manner, as authorized by the commissioner of revenue. The amount of the credit allowed for the
property taxes payable year is to be computed as the following percentage of
the credit amount under paragraph (a):
(1)
for property taxes payable in 2009, 100 percent;
(2)
for property taxes payable in 2010, 60 percent;
(3)
for property taxes payable in 2011, 45 percent;
(4)
for property taxes payable in 2012, 30 percent;
(5)
for property taxes payable in 2013, 15 percent; and
(6)
for property taxes payable in 2014 or thereafter, no credit is allowed.
EFFECTIVE DATE. This section is effective beginning for property taxes payable
in 2009.
Sec.
2. Minnesota Statutes 2006, section
276.04, subdivision 2, as amended by Laws 2008, chapter 154, article 2, section
19, is amended to read:
Subd.
2. Contents
of tax statements. (a) The
treasurer shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe
the form of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of
the state tax from the parcel of real property for which a particular tax
statement is prepared. The dollar
amounts attributable to the county, the state tax, the voter approved school
tax, the other local school tax, the township or municipality, and the total of
the metropolitan special taxing districts as defined in section 275.065,
subdivision 3, paragraph (i), must be separately stated. The amounts due all other special taxing
districts, if any, may be aggregated except that any levies made by the
regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
line directly under the appropriate county's levy. If the
county
levy under this paragraph includes an amount for a lake improvement district as
defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount. In the case of Ramsey County, if the county
levy under this paragraph includes an amount for public library service under
section 134.07, the amount attributable for that purpose may be separated from
the remaining county levy amount. The
amount of the tax on homesteads qualifying under the senior citizens' property
tax deferral program under chapter 290B is the total amount of property tax
before subtraction of the deferred property tax amount. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately
stated. The dollar amounts, including
the dollar amount of any special assessments, may be rounded to the nearest
even whole dollar. For purposes of this
section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of
market value excluded under section 273.11, subdivision 16, if any, must also
be listed on the tax statement.
(b)
The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required
on the tax statements for real property.
(c)
Real and personal property tax statements must contain the following
information in the order given in this paragraph. The information must contain the current year tax information in
the right column with the corresponding information for the previous year in a
column on the left:
(1)
the property's estimated market value under section 273.11, subdivision 1;
(2)
the property's taxable market value after reductions under section 273.11,
subdivisions 1a and 16;
(3) the
property's gross tax, before credits; any items required by the
commissioner of revenue under section 273.1384, subdivision 1, paragraph (b);
and
(4)
for homestead residential and agricultural properties, the credits under
section 273.1384;
(5)
any credits received under sections 273.119; 273.123; 273.135; 273.1391;
273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
received under section 273.135 must be separately stated and identified as
"taconite tax relief"; and
(6) (4) the net tax payable in the
manner required in paragraph (a).
(d) If
the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement
notifying taxpayers when the taxing district will begin its budget
deliberations for the current year, and encouraging taxpayers to attend the
hearings. If the county allows notices
to be included in the envelope containing the property tax statement, and if
more than one taxing district relative to a given property decides to include a
notice with the tax statement, the county treasurer or auditor must coordinate
the process and may combine the information on a single announcement.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec.
3. Minnesota Statutes 2006, section
290.01, subdivision 19a, as amended by Laws 2008, chapter 154, article 3,
section 2, and Laws 2008, chapter 154, article 4, section 3, is amended to
read:
Subd.
19a. Additions to federal taxable income. For individuals, estates, and trusts, there shall be added to
federal taxable income:
(1)(i)
interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota exempt from federal income
taxes under the Internal Revenue Code or any other federal statute; and
(ii)
exempt-interest dividends as defined in section 852(b)(5) of the Internal
Revenue Code, except the portion of the exempt-interest dividends derived from
interest income on obligations of the state of Minnesota or its political or
governmental subdivisions, municipalities, governmental agencies or
instrumentalities, but only if the portion of the exempt-interest dividends
from such Minnesota sources paid to all shareholders represents 95 percent or
more of the exempt-interest dividends that are paid by the regulated investment
company as defined in section 851(a) of the Internal Revenue Code, or the fund
of the regulated investment company as defined in section 851(g) of the
Internal Revenue Code, making the payment; and
(iii)
for the purposes of items (i) and (ii), interest on obligations of an Indian
tribal government described in section 7871(c) of the Internal Revenue Code
shall be treated as interest income on obligations of the state in which the
tribe is located;
(2)
the amount of (i) income or sales and use taxes paid or accrued within
the taxable year under this chapter and the amount of taxes based on net income
paid or sales and use taxes paid to any other state or to any province or
territory of Canada, and (ii) the amount of real and personal property taxes
paid or accrued within the taxable year, to the extent allowed as a
deduction under section 63(d) of the Internal Revenue Code, but the addition
may not be more than the amount by which the itemized deductions as allowed
under section 63(d) of the Internal Revenue Code exceeds the amount of the
standard deduction as defined in section 63(c) of the Internal Revenue
Code. For the purpose of this
paragraph, the disallowance of itemized deductions under section 68 of the
Internal Revenue Code of 1986, income or sales and use tax is the last itemized
deduction disallowed, real property tax is the second to last itemized
deduction disallowed, and personal property tax is the third to last itemized
deduction disallowed;
(3)
the capital gain amount of a lump sum distribution to which the special tax
under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law
99-514, applies;
(4)
the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province
or territory of Canada, to the extent allowed as a deduction in determining
federal adjusted gross income. For the
purpose of this paragraph, income taxes do not include the taxes imposed by
sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and
290.9729;
(5)
the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the
subtraction allowed under subdivision 19b, clause (1);
(6)
the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the
income under section 6242(a)(2) of the Internal Revenue Code;
(7) 80
percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of
this clause, if the taxpayer has an activity that in the taxable year generates
a deduction for depreciation under section 168(k) and the activity generates a
loss for the taxable year that the taxpayer is not allowed to claim for the
taxable year, "the depreciation allowed under section 168(k)" for the
taxable year is limited to excess of the depreciation claimed by the activity
under section 168(k) over the amount of the loss from the activity that is not
allowed in the taxable year. In
succeeding taxable years when the losses not allowed in the taxable year are
allowed, the depreciation under section 168(k) is allowed;
(8) 80
percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the
Internal Revenue Code of 1986, as amended through December 31, 2003;
(9) to
the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;
(10)
the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;
(11)
the amount of expenses disallowed under section 290.10, subdivision 2;
(12)
for taxable years beginning after December 31, 2006, and before January 1,
2008, the amount deducted for qualified tuition and related expenses under
section 222 of the Internal Revenue Code, to the extent deducted from gross
income; and
(13)
for taxable years beginning after December 31, 2006, and before January 1,
2008, the amount deducted for certain expenses of elementary and secondary
school teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the
extent deducted from gross income.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2008.
Sec.
4. Minnesota Statutes 2006, section
290A.03, subdivision 13, is amended to read:
Subd.
13. Property taxes payable.
"Property taxes payable" means the property tax exclusive of
special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391,
273.42, subdivision 2, and any other state paid property tax credits in any
calendar year, and after any refund claimed and allowable under section
290A.04, subdivision 2h, that is first payable in the year that the property
tax is payable. Beginning for
property taxes payable in 2009, the amount of the credit under section
273.1384, subdivision 1, must not be deducted in computing property taxes
payable. In the case of a claimant
who makes ground lease payments, "property taxes payable" includes
the amount of the payments directly attributable to the property taxes assessed
against the parcel on which the house is located. No apportionment or reduction of the "property taxes
payable" shall be required for the use of a portion of the claimant's
homestead for a business purpose if the claimant does not deduct any business
depreciation expenses for the use of a portion of the homestead in the
determination of federal adjusted gross income. For homesteads which are manufactured homes as defined in section
273.125, subdivision 8, and for homesteads which are park trailers taxed as
manufactured homes under section 168.012, subdivision 9, "property taxes
payable" shall also include 19 percent of the gross rent paid in the
preceding year for the site on which the homestead is located. When a homestead is owned by two or more
persons as joint tenants or tenants in common, such tenants shall determine
between them which tenant may claim the property taxes payable on the
homestead. If they are unable to agree,
the matter shall be referred to the commissioner of revenue whose decision
shall be final. Property taxes are
considered payable in the year prescribed by law for payment of the taxes.
In the
case of a claim relating to "property taxes payable," the claimant
must have owned and occupied the homestead on January 2 of the year in which
the tax is payable and (i) the property must have been classified as homestead
property pursuant to section 273.124, on or before December 15 of the
assessment year to which the "property taxes payable" relate; or (ii)
the claimant must provide documentation from the local assessor that
application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and
that the assessor has approved the application.
EFFECTIVE DATE. This section is effective beginning for refund claims based on
property taxes payable in 2009.
Sec.
5. Minnesota Statutes 2006, section
290A.04, subdivision 2h, is amended to read:
Subd.
2h. Additional refund. (a) If
the gross property taxes payable on a homestead increase more than 12 percent
over the property taxes payable in the prior year on the same property that is
owned and occupied by the same owner on January 2 of both years, and the amount
of that increase is $100 or more, a claimant who is a homeowner shall be
allowed an additional refund equal to 60 percent of the amount of the increase
over the greater of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to improvements made
to the homestead after the assessment date for the prior year's taxes. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to the termination of
valuation exclusions under section 273.11, subdivision 16, or to the
reduction in and elimination of the homestead market value credit under section
273.1384, subdivision 1, paragraph (b).
The maximum
refund allowed under this subdivision is $1,000.
(b)
For purposes of this subdivision "gross property taxes payable" means
property taxes payable determined without regard to the refund allowed under
this subdivision.
(c) In
addition to the other proofs required by this chapter, each claimant under this
subdivision shall file with the property tax refund return a copy of the
property tax statement for taxes payable in the preceding year or other
documents required by the commissioner.
(d)
Upon request, the appropriate county official shall make available the names
and addresses of the property taxpayers who may be eligible for the additional
property tax refund under this section.
The information shall be provided on a magnetic computer disk. The county may recover its costs by charging
the person requesting the information the reasonable cost for preparing the
data. The information may not be used
for any purpose other than for notifying the homeowner of potential eligibility
and assisting the homeowner, without charge, in preparing a refund claim.
EFFECTIVE DATE. This section is effective for claims based on property taxes
payable in 2009 and thereafter.
Sec.
6. Minnesota Statutes 2006, section
290A.04, is amended by adding a subdivision to read:
Subd.
2k. Homestead
credit state refund. (a) A
claimant who is a homeowner is entitled to a state refund of the amount of the
property taxes payable in excess of two percent of the claimant's household
income, based on the percentage and maximum for the appropriate household
income level shown below. The refund
amount determined from the table must be reduced further by the amount of the
homestead market value credit under section 273.1384, subdivision 1, paragraph
(b), but not to an amount that is less than zero.
Household Income Refund Percentage Maximum State Refund
0 to $5,399 90
percent $2,500
5,400 to 18,899 85 percent 2,500
18,900
to 26,999 80
percent 2,500
27,000
to 32,399 70
percent 2,500
32,400 to 37,799 65 percent 2,500
37,800 to 45,899 60 percent 2,500
45,900 to 64,699 55 percent 2,500
64,700 to 80,899 50 percent 2,300
80,900 to 94,399 45 percent 2,100
94,400 to 99,299 40 percent 1,900
99,300 to 104,099 35 percent 1,700
104,100 to 115,599 30 percent 1,500
115,600 to 127,199 25 percent 1,250
127,200 to 134,099 25 percent 1,000
134,100 to 138,799 25 percent 750
138,800 to 144,399 25 percent 500
144,400 to 200,000 25 percent 250
(b) No payment is allowed under paragraph (a) if the claimant's
household income is more than $200,000.
EFFECTIVE DATE. This section is effective beginning for claims based on
property taxes payable in 2009.
Sec. 7. Minnesota Statutes
2006, section 290A.04, is amended by adding a subdivision to read:
Subd. 2l. Revenue neutrality. (a)
No later than August 1st of each year, beginning in 2010, the commissioner must
calculate the amount of revenue estimated to be raised in the next fiscal year
through the phaseout of the residential homestead market value credit in
section 273.1384, subdivision 1, paragraph (b), and the disallowance of the
deduction of real and personal property taxes in section 290.01, subdivision
19a, clause (2). The commissioner must
also estimate the total amount estimated to be paid to homeowners in refunds
based on taxes payable in the next calendar year under the homestead credit
state refund in subdivision 2k, and the amount that would have been paid in
refunds based on taxes payable in the next calendar year under the homeowner
property tax refund if section 290A.04, subdivision 2, had not been repealed.
(b) If the commissioner estimates that more revenue will be raised in
the next fiscal year through the phaseout of the residential homestead market
value credit and the disallowance of the real and personal property tax
deduction than will be paid in increased refunds under the homestead credit
state refund as compared with the repealed homeowner property tax refund, and
if the revenue raised exceeds the additional refunds to be paid by more than
$5,000,000, then the commissioner must adjust the maximum refunds allowed under
subdivision 2k for refunds based on taxes payable in the next calendar
year. The adjustment applies to the
maximum refunds after the inflation adjustment provided in subdivision 4. The commissioner must adjust the maximum
refunds for all income ranges proportionately, rounded to the nearest $10
amount as provided in subdivision 4, paragraph (b), so that the amount
estimated to be paid in refunds based on taxes payable in the next calendar
year approximates but does not exceed the revenue estimated to be raised
through the phaseout of the residential homestead market value credit and the
disallowance of the real and personal property tax deduction in the next fiscal
year. The determination of the commissioner
under this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE DATE. This section is effective the day following final enactment,
for refunds based on property taxes payable in 2011 and following years.
Sec. 8. Minnesota Statutes
2006, section 290A.04, subdivision 3, is amended to read:
Subd. 3. Table. The commissioner of
revenue shall construct and make available to taxpayers a comprehensive table
showing the property taxes to be paid and refund allowed at various levels
of income and assessment. The
table shall follow the schedule of income percentages, maximums and other
provisions specified in subdivision 2 this section, except that
the commissioner may graduate the transition between income brackets. All refunds shall be computed in accordance
with tables prepared and issued by the commissioner of revenue.
The commissioner shall include on the form an appropriate space or
method for the claimant to identify if the property taxes paid are for a
manufactured home, as defined in section 273.125, subdivision 8, paragraph (c),
or a park trailer taxed as a manufactured home under section 168.012,
subdivision 9.
Sec. 9. Minnesota Statutes
2006, section 290A.04, subdivision 4, is amended to read:
Subd. 4. Inflation adjustment. (a)
Beginning for property tax refunds payable in calendar year 2002
2010, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a subdivision
2k for inflation. The commissioner
shall make the inflation adjustments in accordance with section 1(f) of the
Internal Revenue Code, except that for purposes of this subdivision the
percentage increase shall be determined from the year ending on June 30, 2000
2008, to the year ending on June 30 of the year preceding that in which the
refund is payable. The commissioner
shall use the appropriate percentage increase to annually adjust the income
thresholds and maximum refunds under subdivisions 2 and 2a subdivision
2k for inflation without regard to whether or not the income tax brackets
are adjusted for inflation in that year.
The commissioner shall round the thresholds and the maximum amounts, as
adjusted to the nearest $10 amount. If
the amount ends in $5, the commissioner shall round it up to the next $10
amount.
The commissioner shall annually announce the adjusted refund schedule
at the same time provided under section 290.06. The determination of the commissioner under this subdivision is
not a rule under the Administrative Procedure Act.
(b) Beginning for property tax refunds payable in calendar year 2002,
the commissioner shall annually adjust the dollar amounts of the income
thresholds and the maximum refunds under subdivision 2a for inflation. The commissioner shall make the inflation
adjustments in accordance with section 1(f) of the Internal Revenue Code,
except that for purposes of this subdivision the percentage increase shall be
determined from the year ending on June 30, 2000, to the year ending on June 30
of the year preceding that in which the refund is payable. The commissioner shall use the appropriate
percentage increase to annually adjust the income thresholds and maximum
refunds under subdivision 2a for inflation without regard to whether or not the
income tax brackets are adjusted for inflation in that year. The commissioner shall round the thresholds
and the maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner
shall round it up to the next $10 amount.
The commissioner shall annually announce the adjusted refund schedule at
the same time provided under section 290.06.
The determination of the commissioner under this subdivision is not a
rule under the Administrative Procedure Act.
EFFECTIVE DATE. This section is effective beginning for claims based on
property taxes payable in 2010.
Sec. 10. REPEALER.
Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, are
repealed.
EFFECTIVE DATE. This section is effective for claims based on property taxes
payable in 2009 and thereafter.
ARTICLE 2
AIDS TO LOCAL GOVERNMENTS
Section 1. Minnesota Statutes
2006, section 477A.011, subdivision 34, is amended to read:
Subd. 34. City revenue need. (a) For
a city with a population equal to or greater than 2,500, "city revenue
need" is the sum of (1) 5.0734098 times the pre-1940 housing percentage;
plus (2) 19.141678 times the population decline percentage; plus (3) 2504.06334
times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan
area factor; minus (6) 49.10638 times the household size.
(b) For a city with a population less than 2,500, "city revenue
need" is the sum of (1) 2.387 times the pre-1940 housing percentage; plus
(2) 2.67591 times the commercial industrial percentage; plus (3) 3.16042 times
the population decline percentage; plus (4) 1.206 times the transformed
population; minus (5) 62.772.
(c) For a city with a population of 2,500 or more and a population in
one of the most recently available five years that was less than 2,500,
"city revenue need" is the sum of (1) its city revenue need
calculated under paragraph (a) multiplied by its transition factor; plus (2)
its city revenue need calculated under the formula in paragraph (b) multiplied
by the difference between one and its transition factor. For purposes of this paragraph, a city's
"transition factor" is equal to 0.2 multiplied by the number of years
that the city's population estimate has been 2,500 or more. This provision only applies for aids payable
in calendar years 2006 to 2008 to cities with a 2002 population of less than
2,500. It applies to any city for aids
payable in 2009 and thereafter. The
city revenue need under this paragraph may not be less than 290.
(d) The city revenue need cannot be less than zero.
(e) For aids certified in 2010 and subsequent years, the city revenue
need is equal to the average of (1) the city's revenue need calculated under
paragraphs (a) to (d) based on data available by January 1 in the year the aid
is certified, and (2) its revenue need calculated under paragraphs (a) to (d)
based on data available by January 1 in the previous year.
(e)
(f) For
calendar year 2005 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (d) (e), is multiplied by the
ratio of the annual implicit price deflator for government consumption
expenditures and gross investment for state and local governments as prepared
by the United States Department of Commerce, for the most recently available
year to the 2003 implicit price deflator for state and local government
purchases.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 2. Minnesota Statutes
2006, section 477A.011, subdivision 36, as amended by Laws 2008, chapter 154,
article 1, section 1, is amended to read:
Subd. 36. City aid base. (a) Except
as otherwise provided in this subdivision, "city aid base" is zero.
(b) The city aid base for any city with a population less than 500 is
increased by $40,000 for aids payable in calendar year 1995 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $40,000 for aids payable in
calendar year 1995 only, provided that:
(i) the average total tax capacity rate for taxes payable in 1995
exceeds 200 percent;
(ii) the city portion of the tax capacity rate exceeds 100 percent; and
(iii) its city aid base is less than $60 per capita.
(c) The city aid base for a city is increased by $20,000 in 1998 and
thereafter and the maximum amount of total aid it may receive under section
477A.013, subdivision 9, paragraph (c), is also increased by $20,000 in
calendar year 1998 only, provided that:
(i) the city has a population in 1994 of 2,500 or more;
(ii) the city is located in a county, outside of the metropolitan area,
which contains a city of the first class;
(iii) the city's net tax capacity used in calculating its 1996 aid
under section 477A.013 is less than $400 per capita; and
(iv) at least four percent of the total net tax capacity, for taxes
payable in 1996, of property located in the city is classified as railroad
property.
(d) The city aid base for a city is increased by $200,000 in 1999 and
thereafter and the maximum amount of total aid it may receive under section
477A.013, subdivision 9, paragraph (c), is also increased by $200,000 in
calendar year 1999 only, provided that:
(i) the city was incorporated as a statutory city after December 1,
1993;
(ii) its city aid base does not exceed $5,600; and
(iii) the city had a population in 1996 of 5,000 or more.
(e) The city aid base for a city is increased by $450,000 in 1999 to
2008 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $450,000 in calendar year
1999 only, provided that:
(i) the city had a population in 1996 of at least 50,000;
(ii) its population had increased by at least 40 percent in the
ten-year period ending in 1996; and
(iii) its city's net tax capacity for aids payable in 1998 is less than
$700 per capita.
(f)
(e) The
city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section
477A.013, subdivision 9, paragraph (c), is also increased by $150,000 in
calendar year 2000 only, provided that:
(1) the city has a population that is greater than 1,000 and less than
2,500;
(2) its commercial and industrial percentage for aids payable in 1999
is greater than 45 percent; and
(3) the total market value of all commercial and industrial property in
the city for assessment year 1999 is at least 15 percent less than the total
market value of all commercial and industrial property in the city for
assessment year 1998.
(g)
(f) The
city aid base for a city is increased by $200,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $200,000 in calendar year
2000 only, provided that:
(1) the city had a population in 1997 of 2,500 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid
under section 477A.013 is less than $650 per capita;
(3) the pre-1940 housing percentage of the city used in calculating
1999 aid under section 477A.013 is greater than 12 percent;
(4) the 1999 local government aid of the city under section 477A.013 is
less than 20 percent of the amount that the formula aid of the city would have
been if the need increase percentage was 100 percent; and
(5) the city aid base of the city used in calculating aid under section
477A.013 is less than $7 per capita.
(h)
(g) The
city aid base for a city is increased by $102,000 in 2000 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision
9, paragraph (c), is also increased by $102,000 in calendar year 2000 only,
provided that:
(1) the city has a population in 1997 of 2,000 or more;
(2) the net tax capacity of the city used in calculating its 1999 aid
under section 477A.013 is less than $455 per capita;
(3) the net levy of the city used in calculating 1999 aid under section
477A.013 is greater than $195 per capita; and
(4) the 1999 local government aid of the city under section 477A.013 is
less than 38 percent of the amount that the formula aid of the city would have
been if the need increase percentage was 100 percent.
(i)
(h) The
city aid base for a city is increased by $32,000 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $32,000 in calendar year
2001 only, provided that:
(1) the city has a population in 1998 that is greater than 200 but less
than 500;
(2) the city's revenue need used in calculating aids payable in 2000
was greater than $200 per capita;
(3) the city net tax capacity for the city used in calculating aids
available in 2000 was equal to or less than $200 per capita;
(4) the city aid base of the city used in calculating aid under section
477A.013 is less than $65 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than
zero.
(j)
(i) The
city aid base for a city is increased by $7,200 in 2001 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision
9, paragraph (c), is also increased by $7,200 in calendar year 2001 only,
provided that:
(1) the city had a population in 1998 that is greater than 200 but less
than 500;
(2) the city's commercial industrial percentage used in calculating
aids payable in 2000 was less than ten percent;
(3) more than 25 percent of the city's population was 60 years old or
older according to the 1990 census;
(4) the city aid base of the city used in calculating aid under section
477A.013 is less than $15 per capita; and
(5) the city's formula aid for aids payable in 2000 was greater than
zero.
(k)
(j) The
city aid base for a city is increased by $45,000 in 2001 and thereafter and by
an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
total aid it may receive under section 477A.013, subdivision 9, paragraph (c),
is also increased by $45,000 in calendar year 2001 only, and by $50,000 in
calendar year 2002 only, provided that:
(1) the net tax capacity of the city used in calculating its 2000 aid
under section 477A.013 is less than $810 per capita;
(2) the population of the city declined more than two percent between
1988 and 1998;
(3) the net levy of the city used in calculating 2000 aid under section
477A.013 is greater than $240 per capita; and
(4) the city received less than $36 per capita in aid under section
477A.013, subdivision 9, for aids payable in 2000.
(l)
(k) The
city aid base for a city with a population of 10,000 or more which is located
outside of the seven-county metropolitan area is increased in 2002 and
thereafter, and the maximum amount of total aid it may receive under section
477A.013, subdivision 9, paragraph (b) or (c), is also increased in calendar
year 2002 only, by an amount equal to the lesser of:
(1)(i) the total population of the city, as determined by the United
States Bureau of the Census, in the 2000 census, (ii) minus 5,000, (iii) times
60; or
(2) $2,500,000.
(m)
(l) The
city aid base is increased by $50,000 in 2002 and thereafter, and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $50,000 in calendar year 2002 only,
provided that:
(1) the city is located in the seven-county metropolitan area;
(2) its population in 2000 is between 10,000 and 20,000; and
(3) its commercial industrial percentage, as calculated for city aid
payable in 2001, was greater than 25 percent.
(n)
(m) The
city aid base for a city is increased by $150,000 in calendar years 2002 to
2011 and by an additional $75,000 in calendar years 2009 to 2014 and the
maximum amount of total aid it may receive under section 477A.013, subdivision
9, paragraph (c), is also increased by $150,000 in calendar year 2002 only and
by $75,000 in calendar year 2009 only, provided that:
(1) the city had a population of at least 3,000 but no more than 4,000
in 1999;
(2) its home county is located within the seven-county metropolitan
area;
(3) its pre-1940 housing percentage is less than 15 percent; and
(4) its city net tax capacity per capita for taxes payable in 2000 is
less than $900 per capita.
(o)
(n) The
city aid base for a city is increased by $200,000 beginning in calendar year
2003 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, paragraph (c), is also increased by $200,000 in calendar year
2003 only, provided that the city qualified for an increase in homestead and
agricultural credit aid under Laws 1995, chapter 264, article 8, section 18.
(p)
(o) The
city aid base for a city is increased by $200,000 in 2004 only and the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, is
also increased by $200,000 in calendar year 2004 only, if the city is the site
of a nuclear dry cask storage facility.
(q)
(p) The
city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $10,000 in calendar year 2004 only, if the city was included in a
federal major disaster designation issued on April 1, 1998, and its pre-1940
housing stock was decreased by more than 40 percent between 1990 and 2000.
(r)
(q) The
city aid base for a city is increased by $30,000 in 2009 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $25,000 in calendar year 2006 only if the city had a population in
2003 of at least 1,000 and has a state park for which the city provides rescue
services and which comprised at least 14 percent of the total geographic area
included within the city boundaries in 2000.
(s) The city aid base for a city with a population less than 5,000 is
increased in 2006 and thereafter and the minimum and maximum amount of total
aid it may receive under this section is also increased in calendar year 2006
only by an amount equal to $6 multiplied by its population.
(t)
(r) The
city aid base for a city is increased by $80,000 in 2009 and thereafter and the
minimum and maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:
(1) as of May 1, 2006, at least 25 percent of the tax capacity of the
city is proposed to be placed in trust status as tax-exempt Indian land;
(2) the placement of the land is being challenged administratively or
in court; and
(3) due to the challenge, the land proposed to be placed in trust is
still on the tax rolls as of May 1, 2006.
(u)
(s) The
city aid base for a city is increased by $100,000 in 2007 and thereafter and
the minimum and maximum total amount of aid it may receive under this section
is also increased in calendar year 2007 only, provided that:
(1) the city has a 2004 estimated population greater than 200 but less
than 2,000;
(2) its city net tax capacity for aids payable in 2006 was less than
$300 per capita;
(3) the ratio of its pay 2005 tax levy compared to its city net tax
capacity for aids payable in 2006 was greater than 110 percent; and
(4) it is located in a county where at least 15,000 acres of land are
classified as tax-exempt Indian reservations according to the 2004 abstract of
tax-exempt property.
(v)
(t) The
city aid base for a city is increased by $30,000 in 2009 only, and the maximum
total aid it may receive under section 477A.013, subdivision 9, is also
increased by $30,000 in calendar year 2009, only if the city had a population
in 2005 of less than 3,000 and the city's boundaries as of 2007 were formed by
the consolidation of two cities and one township in 2002.
(u) The city aid base for a city is increased by $100,000 in 2009 and
thereafter, and the maximum total aid it may receive under section 477A.013,
subdivision 9, is also increased by $100,000 in calendar year 2009 only, if the
city had a city net tax capacity for aids payable in 2007 of less than $150 per
capita and the city experienced flooding on March 14, 2007, that resulted in
evacuation of at least 40 homes.
(v) The city aid base for a city is increased by $200,000 in 2009 to
2013, and the maximum total aid it may receive under section 477A.013,
subdivision 9, is also increased by $200,000 in calendar year 2009 only, if the
city:
(1) is located outside of the Minneapolis-St. Paul standard
metropolitan statistical area;
(2) has a 2005 population greater than 7,000 but less than 8,000; and
(3) has a 2005 net tax capacity per capita of less than $500.
(w) The city aid base is increased by $80,000 in calendar years 2009 to
2018 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9, is increased by $80,000 in calendar year 2009 only, provided
that:
(1) the city is located in the seven-county metropolitan area;
(2) its population in 2006 is less than 200; and
(3) the percentage of its housing stock built before 1940, according to
the 2000 United States Census, is greater than 40 percent.
(x) The city aid base for a city is increased by $100,000 in 2009 and
thereafter and the minimum and maximum total amount of aid it may receive under
this section is also increased by $100,000 in calendar year 2009 only, provided
that:
(1) the city is located in the metropolitan area and its 2006
population is less than 2,500;
(2) at least 25 percent of its housing was built before 1940 and at
least 50 percent of its housing is rental housing, according to the 2000 United
States census;
(3) the median household income in the city is 80 percent or less than
the median household income in the metropolitan area and 50 percent or less
than the median household income for all cities contiguous to that city,
according to the 2000 United States Census; and
(4) at least 60 percent of the land and water acres in the city are
classified as tax-exempt property, according to its 2008 planning document.
(y) The city aid base is increased by $90,000 in calendar year 2009
only and the minimum and maximum total amount of aid it may receive under
section 477A.013, subdivision 9, is also increased by $90,000 in calendar year
2009 only, provided that the city is located in the seven-county metropolitan
area, has a 2006 population between 5,000 and 7,000 and has a 1997 population
of over 7,000.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 3. Minnesota Statutes
2006, section 477A.011, is amended by adding a subdivision to read:
Subd. 41. Small city aid base.
(a) "Small city aid base" for a city with a population less
than 5,000 is equal to $9 multiplied by its population. The small city aid base for all other cities
is equal to zero.
(b) For calendar year 2010 and subsequent years, the small city aid
base for a city, as determined in paragraph (a), is multiplied by the ratio of
the annual implicit price deflator for government consumption expenditures and
gross investment for state and local governments as prepared by the United
States Department of Commerce for the most recently available year to the 2007
implicit price deflator for state and local government purchases.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 4. Minnesota Statutes
2006, section 477A.011, is amended by adding a subdivision to read:
Subd. 42. City jobs base. (a)
"City jobs base" for a city with a population of 5,000 or more is
equal to the product of (1) $30, (2) the number of jobs per capita in the city,
and (3) its population. For cities with
a population less than 5,000, the city jobs base is equal to zero. For a city receiving aid under section
477A.011, subdivision 36, paragraph (l), its city jobs base is reduced by the
lesser of one-half of the amount of aid received under that paragraph or $1,200,000. No city's jobs base may exceed $5,000,000
under this paragraph.
(b) For calendar year 2010 and subsequent years, the city jobs base for
a city, as determined in paragraph (a), is multiplied by the ratio of the
annual implicit price deflator for government consumption expenditures and gross
investment for state and local governments as prepared by the United States
Department of Commerce for the most recently available year to the 2007
implicit price deflator for state and local government purchases.
(c) For purposes of this subdivision, "jobs per capita in the
city" means (1) the average annual number of employees in the city based
on the data from the Quarterly Census of Employment and Wages, as reported by
the Department of Employment and Economic Development, for the most recent calendar
year available as of January 1 of the year in which the aid is calculated,
divided by (2) the city's population for the same calendar year as the
employment data.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 5. Minnesota Statutes
2006, section 477A.0124, subdivision 5, is amended to read:
Subd. 5. County transition aid. (a) For
2005, a county is eligible for transition aid equal to the amount, if any, by
which:
(1) the difference between:
(i) the aid the county received under subdivision 1 in 2004, divided by
the total aid paid to all counties under subdivision 1, multiplied by
$205,000,000; and
(ii) the amount of aid the county is certified to receive in 2005 under
subdivisions 3 and 4;
exceeds:
(2) three percent of the county's adjusted net tax capacity.
A county's aid under this
paragraph may not be less than zero.
(b) In 2006, a county is eligible to receive two-thirds of the
transition aid it received in 2005.
(c) In 2007, For 2009 and each year thereafter, a county is eligible to
receive one-third of the transition aid it received in 2005
2007.
(d) No county shall receive aid under this subdivision after 2007.
(b) In 2009 only, a county with (1) a 2006 population less than 30,000,
and (2) an average Part I crimes per capita greater than 3.9 percent based on
factors used in determining county program aid payable in 2008, shall receive
$100,000.
(c) For aids payable in 2009, 2010, and 2011 only, $250,000 each year
shall be distributed to any county in which (1) the 2006 estimated population
exceeds 30,000, and (2) the 2006 percentage of households receiving food stamps
exceeds 15 percent, based on data used in computing county program aids for
aids payable in 2008 and the 2006 estimated household count according to the
state demographer. The aid must be used
to meet the county's cost of out-of-home placement programs.
EFFECTIVE DATE. This section is effective for aids payable in 2009 and
thereafter.
Sec. 6. Minnesota Statutes 2006,
section 477A.013, subdivision 1, is amended to read:
Subdivision 1. Towns.
In 2002, no In calendar year 2009 and subsequent years, each
organized town is eligible for a distribution under this subdivision
equal to $100 plus the product of the town aid factor multiplied by its
population. Each county with one or
more unorganized townships shall receive $100 plus the product of the town aid
factor multiplied by the total population in all unorganized townships in the
county.
The "town aid factor" is the same for all towns and must be
calculated by the Department of Revenue so that the total aid under this
subdivision equals the total amount available for aid under section 477A.03.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 7. Minnesota Statutes
2006, section 477A.013, subdivision 8, as amended by Laws 2008, chapter 154,
article 1, section 2, is amended to read:
Subd. 8. City formula aid. In
calendar year 2004 2009 and subsequent years, the formula aid for
a city is equal to the sum of (1) its city jobs base, (2) its small city aid
base, and (3) the need increase percentage multiplied by the difference
between (1) (i) the city's revenue need multiplied by its
population, and (2) (ii) the sum of the city's net tax capacity
multiplied by the tax effort rate.
No city may have a formula
aid amount less than zero. The need
increase percentage must be the same for all cities.
The applicable need increase percentage must be calculated by the Department
of Revenue so that the total of the aid under subdivision 9 equals the total
amount available for aid under section 477A.03 after the subtraction under
section 477A.014, subdivisions 4 and 5.
For aids payable in 2009 only, a city's revenue need, population, net
tax capacity, and tax effort rate will be based on the data available for
calculating these factors for aids payable in 2008.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 8. Minnesota Statutes
2006, section 477A.013, subdivision 9, as amended by Laws 2008, chapter 154,
article 1, section 3, is amended to read:
Subd. 9. City aid distribution. (a)
In calendar year 2009 and thereafter, each city shall receive an aid
distribution equal to the sum of (1) the city formula aid under subdivision 8,
and (2) its city aid base, and (3) one-half of the difference between
its total aid in the previous year under this subdivision and its city aid base
in the previous year.
(b) For aids payable in 2010 and thereafter, each city shall receive
an aid distribution equal to (1) the city aid formula under subdivision 8, (2)
its city aid base, and (3) its formula aid under subdivision 8 in the previous
year, prior to any adjustments under this subdivision 2009 only, the
total aid for any city shall not exceed the sum of (1) 40 percent of the
city's net levy for the year prior to the aid distribution, plus (2) its total
aid in the previous year.
(c) For aids payable in 2009 2010 and thereafter, the total
aid for any city shall not exceed the sum of (1) ten percent of the city's net
levy for the year prior to the aid distribution plus (2) its total aid in the
previous year. For aids payable in 2009
and thereafter, the total aid for any city with a population of 2,500 or more
may not be less than its total aid under this section in the previous year
minus the lesser of $15 multiplied by its population, or ten percent of its net
levy in the year prior to the aid distribution.
(d) For aids payable in 2009 2010 and thereafter, the
total aid for a city with a population less than 2,500 must not be less than
the amount it was certified to receive in the previous year minus the lesser of
$15 multiplied by its population, or five percent of its 2003 certified aid
amount. For aids payable in 2009
only the total aid for a city with a population less than 2,500 must not be
less than what it received under this section in the previous year unless its
total aid in calendar year 2008 was aid under section 477A.011, subdivision 36,
paragraph (s), in which case its minimum aid is zero.
(e) If a city's net tax capacity used in calculating aid under this
section has decreased in any year by more than 25 percent from its net tax
capacity in the previous year due to property becoming tax-exempt Indian land,
the city's maximum allowed aid increase under paragraph (c) shall be increased
by an amount equal to (1) the city's tax rate in the year of the aid
calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 9. Minnesota Statutes
2006, section 477A.03, is amended to read:
477A.03 APPROPRIATION.
Subd. 2. Annual appropriation. A sum
sufficient to discharge the duties imposed by sections 477A.011 to 477A.014 is
annually appropriated from the general fund to the commissioner of revenue.
Subd. 2a. Cities. For aids payable in
2004 2009 and thereafter, the total aids aid paid
under section 477A.013, subdivision 9, are limited to $429,000,000 is
$534,148,487. For aids payable in 2005,
the total aids paid under section 477A.013, subdivision 9, are limited to
$437,052,000. For aids payable in 2006
and thereafter, the total aids paid under section 477A.013, subdivision 9, is
limited to $485,052,000 2009 only, an additional $1,000,000 shall be
retained by the commissioner and used to make payments under section 10.
Subd. 2b. Counties. (a) For aids
payable in calendar year 2005 and thereafter, the total aids paid to counties
under section 477A.0124, subdivision 3, are limited to $100,500,000. For aids payable in 2009 and
thereafter, the total aid payable under section 477A.0124, subdivision 3, is
$110,500,000 minus one-half of the total aid amount determined under section
477A.0124, subdivision 5, paragraph (a).
Each calendar year, $500,000 shall be retained
by the commissioner of revenue to make reimbursements to the
commissioner of finance for payments made under section 611.27. For calendar year 2004, the amount shall be
in addition to the payments authorized under section 477A.0124, subdivision
1. For calendar year 2005 and
subsequent years, the amount shall be deducted from the appropriation under
this paragraph. The reimbursements
shall be to defray the additional costs associated with court-ordered counsel
under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next
distribution of county need aid that is certified to the county auditors for
the purpose of property tax reduction for the next taxes payable year.
(b) For aids payable in 2005 2009 and thereafter, the
total aids aid under section 477A.0124, subdivision 4, are
limited to $105,000,000 is $115,132,923 minus one-half of the total aid
amount determined under section 477A.0124, subdivision 5, paragraph (a). For aids payable in 2006 and thereafter,
the total aid under section 477A.0124, subdivision 4, is limited to
$105,132,923. The commissioner of
finance shall bill the commissioner of revenue for the cost of preparation of
local impact notes as required by section 3.987, not to exceed $207,000 in
fiscal year 2004 and thereafter. The
commissioner of education shall bill the commissioner of revenue for the cost
of preparation of local impact notes for school districts as required by
section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner of revenue shall deduct the
amounts billed under this paragraph from the appropriation under this
paragraph. The amounts deducted are
appropriated to the commissioner of finance and the commissioner of education
for the preparation of local impact notes.
Subd. 2c. Towns. For aids
payable in 2009 and thereafter, the total aid under section 477A.013,
subdivision 1, is $3,000,000.
EFFECTIVE DATE. This section is effective for aids payable in calendar year
2009 and thereafter.
Sec. 10. CITY FORECLOSURE GRANTS.
For calendar 2009 only, a city with a concentration of foreclosures
within the city or within a zip code area of a city in calendar year 2007 may
receive a grant under this section. A
"concentration of foreclosures" means that the percent of housing in
foreclosure within the area is at least 50 percent higher than the average
percent of housing in foreclosure in the metropolitan area, as defined in
Minnesota Statutes, section 473.121, subdivision 2. The city must apply to the commissioner of revenue by December
30, 2008, on the form prescribed by the commissioner. The grant will be paid with other aids paid in calendar year
2009, as prescribed in Minnesota Statutes, section 477A.015.
The commissioner of revenue shall consult with the commissioner of the
Housing Finance Agency to develop a form for cities to use when applying for
grants under this section and to determine whether applications qualify. The appropriation for the grants under
Minnesota Statutes, section 477A.03, shall be divided between successful
applicants based on the number of foreclosures in the area meeting the
concentration criteria. No city may
receive a grant of more than $250,000.
All decisions by the commissioner regarding grant qualification and
amount shall be final. The grant must
be used to fund inspection and public safety costs associated with housing
foreclosures.
EFFECTIVE DATE. This section is effective for grants made in calendar year
2009.
Sec. 11. STUDY OF AIDS TO LOCAL GOVERNMENTS.
The chairs of the senate and house of representatives committees with
jurisdiction over taxes shall each appoint five members to a study group of the
tax committees to examine the current system of aids to local governments and
make recommendations on improvements to the system. Of the five members appointed by each chair, two must be members
of the tax committee, one of whom is a majority party member and one of whom is
a minority party member. The remaining
members must represent local units of government. The chairs of the divisions of the tax committees having
jurisdiction over property taxes shall also be members and shall serve as
cochairs of the study group. The study
shall include, but not be limited to, consideration of existing disparities in
the distribution of local
government aid, the relationship of need for city aid to other sources
of revenue such as local sales taxes, an analysis of current law need and
capacity factors as well as alternative need factors, alternative analytical
methods for determining correlations between factors and need, the formula used
to calculate aid for small cities, and volatility in the local government aid
distribution. The group must report on
its specific recommendations to the legislature by December 15, 2010.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 12. REPEALER.
Minnesota Statutes 2006, section 477A.014, subdivision 5, and Minnesota
Statutes 2007 Supplement, section 477A.014, subdivision 4, are repealed.
EFFECTIVE DATE. This section is effective for aid payable in 2009 and
thereafter.
ARTICLE 3
INCOME AND ESTATE TAXES
Section 1. Minnesota Statutes
2006, section 270C.56, subdivision 3, is amended to read:
Subd. 3. Procedure for assessment.
The commissioner may assess liability for the taxes described in
subdivision 1 against a person liable under this section. The assessment may be based upon information
available to the commissioner. It must
be made within the prescribed period of limitations for assessing the
underlying tax, or within one year after the date of an order assessing underlying
tax, whichever period expires later. An
order assessing personal liability under this section is reviewable under
section 270C.35 and is appealable to Tax Court. If any portion of the liability shown on the order is paid
after the time for appealing the order has expired, a claim for refund may be
made, but only if filed within 120 days after the first payment of the
liability.
If a person has been assessed under this section for an amount for a
given period and the time for appeal has expired or there has been a final
determination that the person is liable, collection action is not stayed
pursuant to section 270C.33, subdivision 5, for subsequent assessments of
additional amounts for the same person for the same period and tax type.
EFFECTIVE DATE. This section is effective for orders issued on or after the
day following final enactment.
Sec. 2. Minnesota Statutes
2006, section 289A.19, subdivision 2, is amended to read:
Subd. 2. Corporate franchise and mining company taxes. Corporations or mining companies shall
receive an extension of seven months or the amount of time granted by the
Internal Revenue Service, whichever is longer, for filing the return of a
corporation subject to tax under chapter 290 or for filing the return of a
mining company subject to tax under sections 298.01 and 298.015. Interest on any balance of tax not paid when
the regularly required return is due must be paid at the rate specified in
section 270C.40, from the date such payment should have been made if no extension
was granted, until the date of payment of such tax.
If a corporation or mining company does not:
(1) pay at least 90 percent of the amount of tax shown on the return on
or before the regular due date of the return, the penalty prescribed by section
289A.60, subdivision 1, shall be imposed on the unpaid balance of tax; or
(2) pay the balance due shown on the regularly required return on or
before the extended due date of the return, the penalty prescribed by section
289A.60, subdivision 1, shall be imposed on the unpaid balance of tax from the
original due date of the return.
EFFECTIVE DATE. This section is effective the day following final enactment
and applies to any federal extension that allows filing after that date.
Sec. 3. Minnesota Statutes 2006,
section 289A.19, is amended by adding a subdivision to read:
Subd. 7. Federal extensions. When
an extension of time to file a partnership or S corporation tax return is
granted by the Internal Revenue Service, the commissioner shall grant an automatic
extension to file the comparable Minnesota return for that period. An extension granted under this subdivision
does not affect the due date for making payments of tax.
EFFECTIVE DATE. This section is effective the day following final enactment
and applies to any federal extension that allows filing after that date.
Sec. 4. Minnesota Statutes
2006, section 289A.40, subdivision 1, is amended to read:
Subdivision 1. Time limit; generally. Unless otherwise provided in this chapter, a
claim for a refund of an overpayment of state tax must be filed within the
latest of the following time periods that apply:
(1) 3-1/2
years from the date prescribed for filing the return, plus any extension of
time granted for filing the return, but only if filed within the extended time,;
or
(2) one
year from the date of an order assessing tax under section 270C.33 or an order
determining an appeal under section 270C.35, subdivision 8, or one year from
the date of a return made by the commissioner under section 270C.33,
subdivision 3, upon payment in full of the tax, penalties, and interest shown
on the order or return made by the commissioner, whichever period expires
later. Claims for refund, except
for taxes under chapter 297A, filed after the 3-1/2 year period but within the
one-year period are limited to the amount of the tax, penalties, and interest
on the order or return made by the commissioner and to issues determined by the
order or return made by the commissioner.
In the case of assessments under section 289A.38, subdivision 5 or 6,
claims for refund under chapter 297A filed after the 3-1/2 year period but
within the one-year period are limited to the amount of the tax, penalties, and
interest on the order or return made by the commissioner that are due for the
period before the 3-1/2 year period.; or
(3) 120 days after the first payment of any portion of a tax liability
shown on a return made by the commissioner under section 270C.33, subdivision
3, or shown on an order of assessment where no return has been filed under
section 270C.33, subdivision 4, paragraph (a), clause (2). Claims for refund filed after the 3-1/2 year
period and the one-year period but within the 120-day period are limited to the
amount paid during the 120-day period.
This clause does not apply to returns or orders which have previously
been the subject of a denied claim for refund or an administrative appeal.
EFFECTIVE DATE. The right to file a claim for refund under this section is
effective July 1, 2008. For claims
filed before October 31, 2008, this section is effective retroactively to
payments made after December 31, 2007.
Sec. 5. Minnesota Statutes
2006, section 290.01, subdivision 29, is amended to read:
Subd. 29. Taxable income. The term
"taxable income" means:
(1) for individuals, estates, and trusts, the same as taxable net
income;
(2) for corporations, the taxable net income less
(i) the net operating loss deduction under section 290.095;
(ii) the dividends received deduction under section 290.21, subdivision
4;
(iii) the exemption for operating in a job opportunity building zone
under section 469.317;
(iv) the exemption for operating in a biotechnology and health sciences
industry zone under section 469.337; and
(v) the exemption for operating in an international economic
development zone under section 469.326; plus
(vi) Minnesota development subsidies.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2008.
Sec. 6. Minnesota Statutes
2006, section 290.01, is amended by adding a subdivision to read:
Subd. 33. Minnesota development subsidies. (a) "Minnesota development subsidies" means the
greater of the following amounts:
(1) one-half of the amount deducted by the taxpayer in computing
federal taxable income for the taxable year, as property taxes, business
expenses or otherwise, that is attributable to property taxes paid by the
taxpayer, either directly or indirectly through a lease or otherwise, on
property located in a tax increment financing district, as defined in section
469.174, or that receives an abatement under sections 469.1813 to 469.1815, if
the owner of the property or a related party has entered a development or
similar agreement with respect to the increment district or derives a benefit
from the abatement by its property having access to or use of public
improvements financed with the abatement or otherwise; or
(2) the amount of payments received by the taxpayer under a development
or similar agreement that provides for payments or reimbursements from the
proceeds of increments from a tax increment financing district or from an
abatement under sections 469.1813 to 469.1815, but excluding reimbursements
under a development action response plan, as defined in section 469.174,
subdivision 17, to pay for its costs incurred to fund removal or remedial
actions.
(b) For purposes of this subdivision, "tax increment financing
district" excludes:
(1) a housing district, as defined in section 469.174, subdivision 11;
(2) a soils condition district, as defined in section 469.174,
subdivision 19; and
(3) a hazardous substance subdistrict, as defined in section 469.174,
subdivision 23.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2008.
Sec. 7. Minnesota Statutes 2006,
section 290.06, is amended by adding a subdivision to read:
Subd. 35. Investment tax credit.
(a) A credit is allowed against the tax imposed by this chapter for a
qualified taxpayer's investment in a qualified new business venture. The credit equals 25 percent of the
taxpayer's investment made in the business, but may not exceed the least of:
(1) the liability for tax under this chapter, including the alternative
minimum taxes in sections 290.091 and 290.0921;
(2) $25,000 for an individual not part of a partnership; or
(3) $300,000 for a pass-through entity or C corporation.
(b) For purposes of this subdivision, "qualified taxpayer"
means:
(1) an accredited investor within the meaning of Regulation D of the
Securities and Exchange Commission, Code of Federal Regulations, title 17,
section 230.501(a), whether part of a pass-through entity or not; and
(2) an accredited investor who does not own, control, or hold power to
vote 20 percent or more of the outstanding securities of the qualified business
venture in which the eligible investment is proposed.
(c) For purposes of this paragraph, "commissioner" means the
commissioner of employment and economic development. Qualified taxpayers must apply to the commissioner for
certification. The application must be
in the form and made under the procedures specified by the commissioner. The commissioner may provide certificates
entitling qualified taxpayers to tax credits under this subdivision. The maximum amount of credits for which the
commissioner may issue certificates in each taxable year is $2,000,000 for
qualified business ventures in a qualified high technology field, as defined in
paragraph (g), $2,000,000 for qualified business ventures in biotechnology and
medical devices, as defined in paragraph (h), and $2,000,000 for qualified
business ventures in qualified green manufacturing, as defined in paragraph
(i). In awarding certificates under
this paragraph, the commissioner must award them to qualified taxpayers in the
order in which the applications are received in each of the categories.
(d) Each pass-through entity must provide each investor a statement
indicating the investor's share of the credit amount certified to the
pass-through entity under paragraph (c) based on its share of the pass-through
entity's assets. The credit shall not
exceed $25,000 for each individual part of a pass-through entity.
(e) If the amount of the credit under this subdivision in any taxable
year exceeds the limitation under paragraph (a), clause (1), the excess is a
credit carryover to each of the ten succeeding years but may not exceed $25,000
for an individual not part of a partnership and $300,000 for a pass-through
entity or C corporation. The entire
amount of the excess unused credit must be carried first to the earliest of the
taxable years to which the credit may be carried, and then to each successive
year to which the credit may be carried.
The amount of the unused credit that may be added under this paragraph
may not exceed the taxpayer's liability for tax less the credit for the taxable
year.
(f) Unless otherwise provided under the rules of the Department of
Employment and Economic Development, a business is a qualified business venture
for purposes of this subdivision only if the business satisfies all of the
following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in
Minnesota;
(3) the business is engaged in, or is committed to engage in:
(i) using advanced technology to add value to a product, process, or
service in a qualified high technology field or qualified biotechnology or
medical device field;
(ii) conducting research in and development of a product, process, or
service in a qualified high technology field or qualified biotechnology or
medical device field; or
(iii) developing a new product, process, or service in a qualified high
technology field or qualified biotechnology or medical device field;
(4) the business is not engaged in real estate development, insurance,
banking, lending, lobbying, political consulting, information technology
consulting, wholesale or retail trade, leisure, hospitality, transportation,
construction, ethanol production from corn, or professional services provided
by attorneys, accountants, business consultants, physicians, or health care
consultants;
(5) the business has fewer than 25 employees;
(6) the business has not been in operation for more than ten
consecutive years;
(7) the business has not received more than $1,000,000 in investments
that have qualified for and received tax credits under this section;
(8) the business has less than $1,000,000 in annual gross sales
receipts;
(9) the business is not a subsidiary or an affiliate of a business that
employs more than 100 employees or has gross sales receipts for the previous
year of more than $1,000,000, computed by aggregating all of the employees and
gross sales receipts of the business entities affiliated with the business; and
(10) the business has not received private equity investments of more
than $2,000,000.
(g) For purposes of this subdivision, "qualified high technology
field" includes, but is not limited to, aerospace, agricultural
processing, alternative energy, environmental engineering, food technology,
cellulosic ethanol, information technology, green manufacturing, materials
science technology, nanotechnology, and telecommunications, but excludes
business qualifying under the definitions in paragraphs (h) and (i).
(h) For purposes of this subdivision, "qualified biotechnology or
medical device field" means the business of manufacturing, processing,
assembling, researching or developing biotechnology or medical device products,
including biotechnology and device products used in agriculture.
(i) For purposes of this subdivision, "qualified green
manufacturing" means a business whose primary business activity is
production of products, processes, methods, technologies, or services intended
to do one or more of the following:
(1) to increase the use of energy from renewable sources, as defined in
section 216B.1691;
(2) to increase the energy efficiency of the electric utility
infrastructure system or to increase energy conservation related to electricity
use, as provided in sections 216B.2401 and 216B.241;
(3) to reduce greenhouse gas emissions, as defined in section 216H.01,
subdivision 2, or to mitigate greenhouse gas emissions through, but not limited
to, carbon capture, storage, or sequestration;
(4) to monitor, protect, restore, and preserve the quality of surface
waters; and
(5) to expand use of biofuels, including expanding the feasibility or
reducing the cost of producing biofuels or the types of equipment, machinery,
and vehicles that can use biofuels.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 8. Minnesota Statutes
2006, section 290.068, subdivision 1, is amended to read:
Subdivision 1. Credit allowed. A corporation, other than a corporation
treated as an "S" corporation under section 290.9725, is allowed a
credit against the portion of the franchise tax computed under section 290.06,
subdivision 1, for the taxable year equal to:
(a) 5 3 percent of the first $2,000,000 of the excess (if
any) of
(1) the qualified research expenses for the taxable year, over
(2) the base amount; and
(b) 2.5 1.5 percent on all of such excess expenses over
$2,000,000.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 9. Minnesota Statutes
2006, section 290.068, subdivision 3, is amended to read:
Subd. 3. Limitation; carryover.
(a)(1) The credit, other than the special credit under subdivision 7,
for the taxable year shall not exceed the liability for tax. "Liability
for tax" for purposes of this section means the tax imposed under this
chapter for the taxable year reduced by the sum of the nonrefundable credits
allowed under this chapter.
(2) In the case of a corporation which is a partner in a partnership,
the credit, other than the special credit under subdivision 7, allowed
for the taxable year shall not exceed the lesser of the amount determined under
clause (1) for the taxable year or an amount (separately computed with respect
to the corporation's interest in the trade or business or entity) equal to the
amount of tax attributable to that portion of taxable income which is allocable
or apportionable to the corporation's interest in the trade or business or
entity.
(b) If the amount of the credit determined under this section, other
than the special credit under subdivision 7, for any taxable year exceeds
the limitation under clause (a), the excess shall be a research credit
carryover to each of the 15 succeeding taxable years. The entire amount of the excess unused credit for the taxable
year shall be carried first to the earliest of the taxable years to which the
credit may be carried and then to each successive year to which the credit may
be carried. The amount of the unused
credit which may be added under this clause shall not exceed the taxpayer's
liability for tax less the research credit for the taxable year.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 10. Minnesota Statutes
2006, section 290.068, is amended by adding a subdivision to read:
Subd. 7. Special credit; small businesses. (a) A qualified business is allowed a tax credit equal to 20
percent of qualified research expenditures incurred for the taxable year or the
amount of tax credit certificates issued under paragraph (e), whichever is
less.
(b) For purposes of this subdivision and subdivision 8, a
"qualified business" is a corporation, individual, or partnership
that:
(1) had no more than 25 full-time equivalent employees in this state
during the preceding taxable year; and
(2) is engaged in or is committed to engage in a qualified high
technology field.
(c) For purposes of applying the requirement under paragraph (b),
clause (1), all of the employees of the unitary business, as that term is used
in section 290.17, subdivision 4, must be taken into account and
"full-time equivalent" has the meaning given in section 469.318,
subdivision 2.
(d) For purposes of this subdivision, "qualified high technology
field" includes but is not limited to aerospace, agricultural processing,
alternative energy, biotechnology, defense, drug delivery, environmental
engineering, food technology, cellulosic ethanol, information technology, green
manufacturing, materials science technology, medical devices, nanotechnology,
pharmaceutical technology, and telecommunications. Unless otherwise provided under the rules of the Department of
Employment and Economic Development, a business is a qualified business venture
for purposes of this subdivision only if the business satisfies all of the following
conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in
Minnesota;
(3) the business is engaged in, or is committed to engage in:
(i) using advanced technology to add value to a product, process, or
service in a qualified high technology field;
(ii) conducting research in and development of a product, process, or
service in a qualified high technology field; or
(iii) developing a new product, process, or service in a qualified high
technology field;
(4) the business is not engaged in real estate development, insurance,
banking, lending, lobbying, political consulting, information technology
consulting, wholesale or retail trade, leisure, hospitality, transportation, construction,
ethanol production from corn, or professional services provided by attorneys,
accountants, business consultants, physicians, or health care consultants;
(5) the business has not been in operation for more than ten
consecutive years; and
(6) the business had less than $1,000,000 in annual gross sales
receipts in the preceding taxable year.
(e) For purposes of this paragraph, "commissioner" means the
commissioner of employment and economic development. Qualified businesses must apply to the commissioner for
certification. The application must be
in the form and made under the procedures specified by the commissioner. The commissioner may provide certificates
entitling qualified taxpayers to tax credits under this subdivision. The maximum amount of credits for which the
commissioner may issue certificates in each taxable year is $3,000,000. In awarding certificates under this
paragraph, the commissioner must award them to qualified taxpayers in the order
in which the applications are received.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 11. Minnesota Statutes
2006, section 290.068, is amended by adding a subdivision to read:
Subd. 8. Special credit; appropriation. (a) If the amount of the special credit under subdivision 7
for any taxable year exceeds the liability for tax, the commissioner shall
refund the excess to the taxpayer.
(b) An amount sufficient to pay the refunds required by this
subdivision is annually appropriated to the commissioner of revenue from the
general fund.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 12. Minnesota Statutes
2006, section 290.091, subdivision 2, as amended by Laws 2008, chapter 154,
article 4, section 7, is amended to read:
Subd. 2. Definitions. For purposes
of the tax imposed by this section, the following terms have the meanings
given:
(a) "Alternative minimum taxable income" means the sum of the
following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as
defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal
alternative minimum taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the
Internal Revenue Code:;
(A) for taxable years beginning before January 1, 2006, to the extent
that the deduction exceeds 1.0 percent of adjusted gross income;
(B) for taxable years beginning after December 31, 2005, to the full
extent of the deduction.
For purposes of this clause, "adjusted gross income" has the
meaning given in section 62 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the
Internal Revenue Code, with respect to each property (as defined in section 614
of the Internal Revenue Code), to the extent not included in federal
alternative minimum taxable income, the excess of the deduction for depletion
allowable under section 611 of the Internal Revenue Code for the taxable year
over the adjusted basis of the property at the end of the taxable year
(determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable
income, the amount of the tax preference for intangible drilling cost under
section 57(a)(2) of the Internal Revenue Code determined without regard to
subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable
income, the amount of interest income as provided by section 290.01,
subdivision 19a, clause (1); and
(6) the amount of addition required by section 290.01, subdivision 19a,
clauses (7) to (9), (11), and (12);
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b,
clause (1);
(2) an overpayment of state income tax as provided by section 290.01,
subdivision 19b, clause (2), to the extent included in federal alternative
minimum taxable income;
(3) the amount of investment interest paid or accrued within the
taxable year on indebtedness to the extent that the amount does not exceed net
investment income, as defined in section 163(d)(4) of the Internal Revenue
Code. Interest does not include amounts
deducted in computing federal adjusted gross income; and
(4) amounts subtracted from federal taxable income as provided by
section 290.01, subdivision 19b, clauses (6) and (9) to (16).
In the case of an estate or trust, alternative minimum taxable income
must be computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as
defined in section 163(d)(3) of the Internal Revenue Code.
(c) "Tentative minimum tax" equals 6.4 percent of alternative
minimum taxable income after subtracting the exemption amount determined under
subdivision 3.
(d) "Regular tax" means the tax that would be imposed under
this chapter (without regard to this section and section 290.032), reduced by
the sum of the nonrefundable credits allowed under this chapter.
(e) "Net minimum tax" means the minimum tax imposed by this
section.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2007.
Sec. 13. Minnesota Statutes
2006, section 290.92, subdivision 1, is amended to read:
Subdivision 1. Definitions. (1) Wages. For purposes of this section, the term
"wages" means the same as that term is defined in section 3401(a) and
(f) of the Internal Revenue Code, except that provisions of section 530 of
Public Law 95-600, as amended, do not apply.
(2) Payroll period. For purposes of this section the term
"payroll period" means a period for which a payment of wages is
ordinarily made to the employee by the employee's employer, and the term
"miscellaneous payroll period" means a payroll period other than a
daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual
payroll period.
(3) Employee. For purposes of this section the term
"employee" means any resident individual performing services for an
employer, either within or without, or both within and without the state of
Minnesota, and every nonresident individual performing services within the
state of Minnesota, the performance of which services constitute, establish,
and determine the relationship between the parties as that of employer and employee. As used in the preceding sentence, the term
"employee" includes an officer of a corporation, and an officer,
employee, or elected official of the United States, a state, or any political
subdivision thereof, or the District of Columbia, or any agency or
instrumentality of any one or more of the foregoing.
(4) Employer. For purposes of this section the term
"employer" means any person, including individuals, fiduciaries,
estates, trusts, partnerships, limited liability companies, and corporations
transacting business in or deriving any income from sources within the state of
Minnesota for whom an individual performs or performed any
service, of whatever nature, as the employee of such person, except
that if the person for whom the individual performs or performed the services
does not have control of the payment of the wages for such services, the term
"employer," except for purposes of paragraph (1), means the person
having control of the payment of such wages.
As used in the preceding sentence, the term "employer"
includes any corporation, individual, estate, trust, or organization which is
exempt from taxation under section 290.05 and further includes, but is not
limited to, officers of corporations who have control, either individually or
jointly with another or others, of the payment of the wages.
(5) Number of withholding
exemptions claimed. For purposes of
this section, the term "number of withholding exemptions claimed"
means the number of withholding exemptions claimed in a withholding exemption
certificate in effect under subdivision 5, except that if no such certificate
is in effect, the number of withholding exemptions claimed shall be considered
to be zero.
EFFECTIVE DATE. This section is effective for wages paid after December 31,
2008.
Sec. 14. Minnesota Statutes
2006, section 291.03, subdivision 1, is amended to read:
Subdivision 1. Tax amount. The tax imposed shall be an amount equal to the proportion of the
maximum credit for state death taxes computed under section 2011 of the Internal
Revenue Code, as amended through December 31, 2000, but using Minnesota
adjusted taxable estate instead of federal adjusted taxable estate, as the
Minnesota gross estate bears to the value of the federal gross estate. The tax determined under this paragraph
shall not be greater than the amount computed by applying the rates and
brackets under section 2001(c) of the Internal Revenue Code to the sum of
the Minnesota adjusted gross taxable estate and subtracting
adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
Code, and then subtracting the federal credit allowed under section 2010 of
the Internal Revenue Code of 1986, as amended through December 31, 2000. For the purposes of this section, expenses
which are deducted for federal income tax purposes under section 642(g) of the
Internal Revenue Code as amended through December 31, 2002, are not allowable
in computing the tax under this chapter.
EFFECTIVE DATE. This section is effective retroactively as a clarification and
applies to estates of decedents dying after December 31, 2005.
Sec. 15. REPEALER.
Minnesota Statutes 2006, section 290.191, subdivision 4, is repealed.
EFFECTIVE DATE. This section is effective for taxable years beginning after
December 31, 2008.
ARTICLE 4
LOCAL DEVELOPMENT
Section 1. [116J.8732] SEED CAPITAL INVESTMENT
CREDIT; COMMISSIONER'S RESPONSIBILITIES.
Subdivision 1. Scope. This
section establishes rules that businesses must satisfy to qualify for the seed
capital investment credit under section 290.06, subdivision 34, and the
commissioner's responsibility for certifying the qualifying businesses.
Subd. 2. Definitions. (a)
For purposes of this section and section 290.06, subdivision 34, the following
terms have the meanings given.
(b) "Border city" means a city qualifying to designate a
border city development zone under section 469.1731.
(c) "Pass-through entity" means a corporation that for the
applicable tax year is treated as an S corporation or a general partnership,
limited partnership, limited liability partnership, trust, or limited liability
company and which for the applicable taxable year is not taxed as a corporation
under chapter 290.
(d) "Primary sector business" means a qualified business that
through the employment of knowledge or labor adds value to a product, process,
or service and increases revenues to a Minnesota business generated by sales of
products or services to customers outside of the state or increases revenues to
a qualified business the customers of which previously were unable to acquire,
or had limited availability of the product or service from a Minnesota
provider.
(e) "Qualified business" means a business certified by the
commissioner as meeting the requirements of subdivision 3.
Subd. 3. Qualified business. (a)
The commissioner shall certify whether a business that has requested to become
a qualified business meets the requirements of paragraph (b).
(b) For purposes of this section, a qualified business must be a
primary sector business, other than a real estate investment trust, that:
(1) is incorporated or its satellite operation is incorporated as a
for-profit corporation or is a partnership, limited partnership, limited
liability company, limited liability partnership, or joint venture;
(2) is in compliance with the requirements for filings with the
commissioner of commerce under the securities laws of this state;
(3) has Minnesota residents as a majority of its employees in its
principal office or the satellite operation, which is located in a border city;
(4) has its principal office in a border city and has the majority of
its business activity performed in a border city, except sales activity, or has
a significant operation in a border city that has or is projected to have more
than ten employees or $150,000 of sales annually; and
(5) relies on innovation, research, or the development of new products
and processes in its plans for growth and profitability.
(c) The commissioner shall establish the necessary forms and procedures
for certifying qualified businesses.
(d) A qualified business may apply to the commissioner for a
recertification. Only one
recertification is available to a qualified business. The application for recertification must be filed with the
commissioner within 90 days before the original certification expiration
date. The recertification issued by the
director must comply with the provisions of paragraph (e).
(e) The commissioner shall issue a certification letter to a business
the commissioner determines is a qualified business. The certification letter must include:
(1) the certification effective date; and
(2) the certification expiration date, which may not be more than four
years from the certification effective date.
Subd. 4. Seed capital investment credit reporting. Within 30 days after the date that an
investment in a qualified business is purchased, the qualified business shall
file with the commissioner and the commissioner of revenue and provide to the
investor completed forms prescribed by the commissioner of revenue that show as
to each investment in the qualified business the following:
(1) the name, address, and Social Security number of the taxpayer who
made the investment; and
(2) the dollar amount paid for the investment by the taxpayer.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes
2006, section 216B.1612, is amended by adding a subdivision to read:
Subd. 9. Local government and political subdivision powers. A Minnesota political subdivision or
local government may plan, develop, purchase, acquire, construct, and own a
C-BED project and may sell output from that project as provided for in this
section. A Minnesota political
subdivision or local government may operate, maintain, improve, and expand the
C-BED project subject to any restrictions in this section.
Sec. 3. [216F.09] COUNTY; WIND ENERGY CONVERSION SYSTEM.
A county may own, construct, acquire, purchase, issue bonds and
certificates of indebtedness for, maintain, and operate a wind energy
conversion system, or a portion of a wind energy conversion system. A county may purchase and sell electricity
from a wind energy conversion system only at wholesale on terms and conditions
as the county board deems is in the best interests of the public. With respect to any wind energy conversion
system, or any portion of a wind energy conversion system, a county may
exercise the powers granted to a municipal power agency and to a city under
sections 453.52, subdivisions 1, 6, and 9; 453.54, subdivision 10; 453.58,
subdivision 4; and 453.59, except that output from that wind energy conversion
system may not be sold, transmitted, or distributed at retail, or provided for
end use from an offsite facility by the county. A county's onsite generation authorized under this subdivision is
limited to a total of ten megawatts.
Nothing in this section modifies the exclusive service territories or
exclusive right to serve as provided in sections 216B.37 to 216B.43.
Sec. 4. Minnesota Statutes 2007
Supplement, section 268.19, subdivision 1, is amended to read:
Subdivision 1. Use of data. (a) Except as provided by this section, data gathered from any
person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in
section 13.02, subdivisions 9 and 12, and may not be disclosed except according
to a district court order or section 13.05.
A subpoena is not considered a district court order. These data may be disseminated to and used
by the following agencies without the consent of the subject of the data:
(1) state and federal agencies specifically authorized access to the
data by state or federal law;
(2) any agency of any other state or any federal agency charged with
the administration of an unemployment insurance program;
(3) any agency responsible for the maintenance of a system of public
employment offices for the purpose of assisting individuals in obtaining
employment;
(4) the public authority responsible for child support in Minnesota or
any other state in accordance with section 256.978;
(5) human rights agencies within Minnesota that have enforcement
powers;
(6) the Department of Revenue to the extent necessary for its duties
under Minnesota laws;
(7) public and private agencies responsible for administering publicly
financed assistance programs for the purpose of monitoring the eligibility of
the program's recipients;
(8) the Department of Labor and Industry and the Division of Insurance
Fraud Prevention in the Department of Commerce for uses consistent with the
administration of their duties under Minnesota law;
(9) local and state welfare agencies for monitoring the eligibility of
the data subject for assistance programs, or for any employment or training
program administered by those agencies, whether alone, in combination with
another welfare agency, or in conjunction with the department or to monitor and
evaluate the statewide Minnesota family investment program by providing data on
recipients and former recipients of food stamps or food support, cash
assistance under chapter 256, 256D, 256J, or 256K, child care assistance under
chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
(10) local and state welfare agencies for the purpose of identifying
employment, wages, and other information to assist in the collection of an
overpayment debt in an assistance program;
(11) local, state, and federal law enforcement agencies for the purpose
of ascertaining the last known address and employment location of an individual
who is the subject of a criminal investigation;
(12) the United States Citizenship and Immigration Services has access
to data on specific individuals and specific employers provided the specific
individual or specific employer is the subject of an investigation by that
agency;
(13) the Department of Health for the purposes of epidemiologic
investigations; and
(14) the Department of Corrections for the purpose of postconfinement
employment tracking of individuals who had been committed to the custody of the
commissioner of corrections.; and
(15) the state auditor to the extent necessary to conduct audits of job
opportunity building zones as required under section 469.3201.
(b) Data on individuals and employers that are collected, maintained,
or used by the department in an investigation under section 268.182 are
confidential as to data on individuals and protected nonpublic data not on
individuals as defined in section 13.02, subdivisions 3 and 13, and must not be
disclosed except under statute or district court order or to a party named in a
criminal proceeding, administrative or judicial, for preparation of a defense.
(c) Data gathered by the department in the administration of the
Minnesota unemployment insurance program must not be made the subject or the
basis for any suit in any civil proceedings, administrative or judicial, unless
the action is initiated by the department.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes
2006, section 270B.15, is amended to read:
270B.15 DISCLOSURE TO
LEGISLATIVE AUDITOR AND STATE AUDITOR.
(a) Returns
and return information must be disclosed to the legislative auditor to the
extent necessary for the legislative auditor to carry out sections 3.97 to
3.979.
(b) The commissioner must disclose return information, including the
report required under section 289A.12, subdivision 15, to the state auditor to
the extent necessary to conduct audits of job opportunity building zones as
required under section 469.3201.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes
2006, section 289A.12, is amended by adding a subdivision to read:
Subd. 15. Report of job opportunity zone benefits; penalty for failure to file
report. (a) By October 15 of
each year, every qualified business, as defined under section 469.310,
subdivision 11, must file with the commissioner, on a form prescribed by the
commissioner, a report listing the tax benefits under section 469.315 received
by the business for the previous year.
(b) The commissioner shall send notice to each business that fails to
timely submit the report required under paragraph (a). The notice shall demand that the business
submit the report within 60 days. Where
good cause exists, the commissioner may extend the period for submitting the
report as long as a request for extension is filed by the business before the
expiration of the 60-day period. The
commissioner shall notify the commissioner of the Department of Employment and
Economic Development and the appropriate job opportunity subzone administrator
whenever notice is sent to a business under this paragraph.
(c) A business that fails to submit the report as required under
paragraph (b) is no longer a qualified business under section 469.310,
subdivision 11, and is subject to the repayment provisions of section 469.319.
EFFECTIVE DATE. This section is effective beginning with reports required to
be filed October 15, 2008.
Sec. 7. Minnesota Statutes
2006, section 290.06, is amended by adding a subdivision to read:
Subd. 34. Seed capital investment credit. (a) An individual, estate, or trust is allowed a credit
against the tax imposed by this chapter for investments in a qualifying
business certified under section 116J.8732, subdivision 3. The credit equals 45 percent of the amount
invested by the taxpayer in qualified businesses during the taxable year. The credit must not exceed $112,500 for each
taxable year.
(b) A pass-through entity that invests in a qualified business must be
considered to be the taxpayer for purposes of the investment limitations in
this subdivision and the amount of the credit allowed with respect to a
pass-through entity's investment in a qualified business must be determined at
the pass-through entity level. The
amount of the total credit determined at the pass-through entity level must be
allowed to the members in proportion to their respective interests in the
pass-through entity.
(c) An investment made in a qualified business from the assets of a
retirement plan is deemed to be the retirement plan participant's investment
for the purpose of this subdivision if a separate account is maintained for the
plan participant and the participant directly controls where the account assets
are invested.
(d) The investment must be made on or after the certification effective
date and must be at risk in the business to be eligible for the tax credit
under this subdivision. An investment for
which a credit is received under this subdivision must remain in the qualified
business for at least three years.
Investments placed in escrow do not qualify for the credit.
(e) The entire amount of an investment for which a credit is claimed
under this subdivision must be expended by the qualified business for plant,
equipment, research and development, marketing and sales activity, or working
capital for the qualified business.
(f) A taxpayer who owns a controlling interest in the qualified business
or who receives more than 50 percent of the taxpayer's gross annual income from
the qualified business is not entitled to a credit under this subdivision. A member of the immediate family of a
taxpayer disqualified by this subdivision is not entitled to the credit under
this subdivision. For purposes of this
subdivision, "immediate family" means the taxpayer's spouse, parent,
sibling, or child or the spouse of any such person.
(g) The commissioner may disallow any credit otherwise allowed under
this subdivision if any representation by a business in the application for
certification as a qualified business proves to be false or if the taxpayer or
qualified business fails to satisfy any conditions under this subdivision or
section 116J.8732 or any conditions consistent with those requirements
otherwise determined by the commissioner.
The commissioner has four years after the due date of the return or
after the return was filed, whichever period expires later, to audit the credit
and assess additional tax that may be found due to failure to comply with the
provisions of this subdivision and section 116J.8732. The amount of any credit disallowed by the commissioner that
reduced the taxpayer's income tax liability for any or all applicable tax
years, plus penalty and interest as provided under chapter 289A, must be paid
by the taxpayer.
(h) If the amount of the credit under this subdivision for any taxable
year exceeds the limitations under paragraph (a), the excess is a credit
carryover to each of the four succeeding taxable years. The entire amount of the excess unused
credit for the taxable year must be carried first to the earliest of the
taxable years to which the credit may be carried. The amount of the unused credit that may be added under this paragraph
may not exceed the taxpayer's liability for tax, less the credit for the
taxable year. Each year, the aggregate
amount of seed capital investment tax credit allowed for investments under this
subdivision is limited to allocations that a border city has available for tax
reductions in border city enterprise zones under section 469.169. The city must annually notify the
commissioner of the amount of its section 469.169 allocations that it wishes to
use to provide credits under this paragraph and the commissioner, after
verifying the available allocation, shall implement the limit under this
paragraph. If investments in qualified
businesses reported to the commissioner exceed the limit on credits for
investments imposed by this subdivision, the credit must be allowed to
taxpayers in the chronological order of their investments in qualified
businesses as determined from the forms filed under section 116J.8732.
EFFECTIVE DATE. This section is effective July 1, 2008, for taxable years
beginning after December 31, 2007, and only applies to investments made after
the qualified business has been certified by the commissioner of employment and
economic development.
Sec. 8. [373.48] FINANCING ENERGY PURCHASE CONTRACTS AND PARTICIPATION IN
GENERATION AND TRANSMISSION PROJECTS.
Subdivision 1. Definitions. For
the purpose of this section, "project" means a facility that
generates electricity from renewable energy sources listed in section
216B.1691, subdivision 1, paragraph (a), clause (1).
Subd. 2. Energy purchase contracts; generation projects. A county may, for itself or in
cooperation with other counties, enter into agreements for the purchase of
electrical energy from one or more projects, and may enter into agreements with
a utility for the purchase and sale of the electrical energy so purchased. Agreements may be for a term of one year to
20 years. A county may also acquire an
ownership interest in a project and may enter into agreements for the purchase
and sale of electrical energy produced.
A county may not sell, transmit, or distribute the electrical energy at
retail or provide for end use from an offsite facility by the county or
counties of the electrical energy. A
county's onsite generation authorized under this subdivision is limited to a
total of ten megawatts. Nothing in this
section modifies the exclusive service territories or exclusive right to serve
as provided in sections 216B.37 to 216B.43.
The energy to be purchased by a county under agreements entered into
under this section and the energy produced by the county's interest in projects
shall not in any year exceed the total amount of energy used by the county for
its own facilities in the immediately preceding year, regardless of the source
from which energy was obtained.
Subd. 3. Joint purchase of energy and acquisition of generation projects;
financing. A county may
enter into agreements under section 471.59 with other counties for joint
purchase of energy or joint acquisition of interests in projects. A county may annually levy an ad valorem tax
for the purpose of paying the cost of energy purchased or acquiring interests
in projects in an amount not exceeding 0.015 percent of the market value of
taxable property in the county. A county
that enters into a multiyear agreement for purchase of energy or acquires an
interest in a project may finance the estimated cost of the energy to be
purchased during the term of the agreement or the cost to the county of the
interest in the project by the issuance of general obligation bonds of the
county, provided that the annual debt service on all bonds issued under this
section, together with the amounts to be paid by the county in any year for the
purchase of energy under agreements entered into under this section, shall not
exceed the amount of taxes authorized by this section. An agreement entered into under section
471.59 as provided by this section may provide that each county shall issue
bonds to pay their respective shares of the cost of the projects, or that one
of the counties shall issue bonds to pay the full costs of the project, and
that the other participating counties shall levy the tax authorized under this
subdivision and pledge the collections of the tax to the county that issues the
bonds. Bonds issued under this section
may be issued without an election and shall not constitute net debt of any
participating county.
Sec. 9. Minnesota Statutes
2006, section 383E.20, is amended to read:
383E.20 BONDING FOR COUNTY
LIBRARY BUILDINGS.
The Anoka County Board may, by resolution adopted by a four-sevenths
vote, issue and sell general obligation bonds of the county in the manner
provided in chapter 475 to acquire, better, and construct county library
buildings. The bonds shall not be
subject to the requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
rates of each series of bonds shall be fixed so that the maximum amount of
principal and interest to become due in any year, on the bonds of that series
and of all outstanding series issued by or for the purposes of libraries, shall
not exceed an amount equal to the lesser of (i) .01 percent of the
taxable market value of all taxable property in the county, excluding any
taxable property taxed by any city for the support of any free public library,
or (ii) $1,250,000. When the tax
levy authorized in this section is collected, it shall be appropriated and
credited to a debt service fund for the bonds.
The tax levy for the debt service fund under section 475.61 shall be
reduced by the amount available or reasonably anticipated to be available in
the fund to make payments otherwise payable from the levy pursuant to section
475.61.
EFFECTIVE DATE. This section is effective the day after the governing body of
Anoka County and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 10. Minnesota Statutes
2006, section 469.033, subdivision 6, is amended to read:
Subd. 6. Operation area as taxing district, special tax. All of the territory included within the
area of operation of any authority shall constitute a taxing district for the
purpose of levying and collecting special benefit taxes as provided in this
subdivision. All of the taxable
property, both real and personal, within that taxing district shall be deemed
to be benefited by projects to the extent of the special taxes levied under
this subdivision. Subject to the
consent by resolution of the governing body of the city in and for which it was
created, an authority may levy a tax upon all taxable property within that
taxing district. The tax shall be
extended, spread, and included with and as a part of the general taxes for
state, county, and municipal purposes by the county auditor, to be collected
and enforced therewith, together with the penalty, interest, and costs. As the tax, including any penalties,
interest, and costs, is collected by the county treasurer it shall be
accumulated and kept in a separate fund to be known as the "housing and
redevelopment project fund." The money in the fund shall be turned over to
the authority at the same time and in the same manner that the tax collections
for the city are turned over to the city, and shall be expended
only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by
the chair of the authority or an authorized representative. The amount of the levy shall be an amount
approved by the governing body of the city, but shall not exceed 0.0144
0.02 percent of taxable market value for the current levy year,
notwithstanding section 273.032.
The authority shall each year formulate and file a budget in accordance
with the budget procedure of the city in the same manner as required of
executive departments of the city or, if no budgets are required to be filed,
by August 1. The amount of the tax levy
for the following year shall be based on that budget.
EFFECTIVE DATE. This section is effective for property taxes payable in 2009.
Sec. 11. Minnesota Statutes
2006, section 469.177, is amended by adding a subdivision to read:
Subd. 13. Correction of errors.
(a) If the county auditor, as a result of an error or mistake,
decertifies a district, fails to certify a district, incorrectly certifies a
district, or otherwise fails to correctly compute the amount of increment, the
county auditor may undertake one or more of the following actions to correct
the error or mistake:
(1) certify the original tax capacity of the affected parcels at the
appropriate value for a later taxes payable year and extend the duration of the
district, in whole or in part, to compensate;
(2) recertify the affected parcels and extend duration of the district,
in whole or in part, to compensate;
(3) recertify or correct the original tax capacity rate for the district;
or
(4) take other appropriate action so that the amount of increment
compensates for or offsets the error or mistake and correctly reflects
application of the law.
(b) At least 30 days before exercising authority under this
subdivision, the county auditor must notify the authority and the municipality,
in writing, of the intent to do so, including supporting information to
describe reason for the proposed action.
The authority and municipality may waive the time requirement of this
paragraph. If the city or the authority
objects before expiration of the 30-day period, the matter must be submitted to
the commissioner of revenue for a decision or resolution of the dispute. The commissioner of revenue shall consult
with the Office of the State Auditor before making a decision.
(c) The county auditor must notify the commissioner of revenue and the
Office of the State Auditor of corrections made under this subdivision. The notification must be made in the form
and manner and at the time prescribed by the commissioner. The commissioner shall incorporate the
corrections in the tax increment financing district tax list supplement, as
appropriate.
EFFECTIVE DATE. This section is effective the day following final enactment
and applies to all tax increment financing districts, regardless of when the
request for certification was made.
Sec. 12. Minnesota Statutes
2006, section 469.312, is amended by adding a subdivision to read:
Subd. 6. Termination of designation of qualified business. No person will be deemed to be a
qualified business eligible for the benefits provided in sections 469.310 to
469.320 unless the person has entered into a business subsidy agreement with a
local government unit as provided in section 469.310, subdivision 11, prior to
June 1, 2008.
Sec. 13. Minnesota Statutes
2006, section 469.319, is amended to read:
469.319 REPAYMENT OF TAX
BENEFITS BY BUSINESSES THAT NO LONGER OPERATE IN A ZONE.
Subdivision 1. Repayment obligation. A business must repay the amount of the
total tax reduction benefits listed in section 469.315 and any
refund under section 469.318 in excess of tax liability, received during
the two years immediately before it (1) ceased to operate in the
zone, if the business:
(1) received tax reductions authorized by section 469.315; and
(2)(i) did not meet the goals specified in an agreement entered into
with the applicant that states any obligation the qualified business must
fulfill in order to be eligible for tax benefits. The commissioner of employment and economic development may
extend for up to one year the period for meeting any goals provided in an
agreement. The applicant may extend the
period for meeting other goals by documenting in writing the reason for the extension
and attaching a copy of the document to its next annual report to the
commissioner of employment and economic development; or
(ii) ceased to operate its facility located within the job opportunity
building zone
perform a substantial level of activities described in the business subsidy agreement,
or (2) otherwise ceases ceased to be or is not
a qualified business, other than those subject to the provisions of section
469.3191.
Subd. 1a. Repayment obligation of businesses not operating in zone. Persons that receive benefits without operating
a business in a zone are subject to repayment under this section if the
business for which those benefits relate is subject to repayment under this
section. Such persons are deemed to
have ceased performing in the zone on the same day that the qualified business
for which the benefits relate becomes subject to repayment under subdivision 1.
Subd. 2. Definitions. (a) For
purposes of this section, the following terms have the meanings given.
(b) "Business" means any person who that received
tax benefits enumerated in section 469.315.
(c) "Commissioner" means the commissioner of revenue.
(d) "Persons that receive benefits without operating a business in
a zone" means persons that claim benefits under section 469.316,
subdivision 2 or 4, as well as persons that own property leased by a qualified
business and are eligible for benefits under section 272.02, subdivision 64, or
297A.68, subdivision 37, paragraph (b).
Subd. 3. Disposition of repayment.
The repayment must be paid to the state to the extent it represents a
state tax reduction and to the county to the extent it represents a property
tax reduction. Any amount repaid to the
state must be deposited in the general fund.
Any amount repaid to the county for the property tax exemption must be
distributed to the local governments taxing authorities with
authority to levy taxes in the zone in the same manner provided for
distribution of payment of delinquent property taxes. Any repayment of local sales taxes must be repaid to the
commissioner for distribution to the city or county imposing the local
sales tax.
Subd. 4. Repayment procedures. (a)
For the repayment of taxes imposed under chapter 290 or 297A or local taxes
collected pursuant to section 297A.99, a business must file an amended return
with the commissioner of revenue and pay any taxes required to be repaid within
30 days after ceasing to do business in the zone becoming subject to
repayment under this section. The
amount required to be repaid is determined by calculating the tax for the
period or periods for which repayment is required without regard to the
exemptions and credits allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business
must pay any taxes required to be repaid to the motor vehicle registrar, as
agent for the commissioner of revenue, within 30 days after ceasing to do
business in the zone becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall
prepare a tax statement for the business, applying the applicable tax extension
rates for each payable year and provide a copy to the business and to the
taxpayer of record. The business
must pay the taxes to the county treasurer within 30 days after receipt of the
tax statement. The business or the
taxpayer of record may appeal the valuation and determination of the
property tax to the Tax Court within 30 days after receipt of the tax
statement.
(d) The provisions of chapters 270C and 289A relating to the
commissioner's authority to audit, assess, and collect the tax and to hear
appeals are applicable to the repayment required under paragraphs (a) and
(b). The commissioner may impose civil
penalties as provided in chapter 289A, and the additional tax and penalties are
subject to interest at the rate provided in section 270C.40, from 30 days after
ceasing to do business in the job opportunity building zone becoming
subject to repayment under this section until the date the tax is paid.
(e) If a property tax is not repaid under paragraph (c), the county
treasurer shall add the amount required to be repaid to the property taxes
assessed against the property for payment in the year following the year in
which the treasurer discovers that the business ceased to operate in the job
opportunity building zone auditor provided the statement under paragraph
(c).
(f) For determining the tax required to be repaid, a tax
reduction of a state or local sales or use tax is deemed to have been
received on the date that the tax would have been due if the taxpayer had
not been entitled to the exemption or on the date a refund was issued for a
refundable tax credit. good or service was purchased or first put to a
taxable use. In the case of an income
tax or franchise tax, including the credit payable under section 469.318, a
reduction of tax is deemed to have been received for the two most recent tax
years that have ended prior to the date that the business became subject to
repayment under this section. In the
case of a property tax, a reduction of tax is deemed to have been received for
the taxes payable in the year that the business became subject to repayment
under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d)
any time within two years after the business ceases to operate in the job
opportunity building zone becomes subject to repayment under subdivision
1, or within any period of limitations for the assessment of tax under
section 289A.38, whichever period is later.
The county auditor may send the statement under paragraph (c) any
time within three years after the business becomes subject to repayment under
subdivision 1.
(h) A business is not entitled to any income tax or franchise tax
benefits, including refundable credits, for any part of the year in which the
business becomes subject to repayment under this section nor for any year
thereafter. Property is not exempt from
tax under section 272.02, subdivision 64, for any taxes payable in the year
following the year in which the property became subject to repayment under this
section nor for any year thereafter. A
business is not eligible for any sales tax benefits beginning with goods or
services purchased or first put to a taxable use on the day that the business
becomes subject to repayment under this section.
Subd. 5. Waiver authority. (a) The
commissioner may waive all or part of a repayment required under subdivision
1, if the commissioner, in consultation with the commissioner of employment
and economic development and appropriate officials from the local government
units in which the qualified business is located, determines that requiring
repayment of the tax is not in the best interest of the state or the local
government units and the business ceased operating as a result of circumstances
beyond its control including, but not limited to:
(1) a natural disaster;
(2) unforeseen industry trends; or
(3) loss of a major supplier or customer.
(b)(1) The commissioner shall waive repayment required under
subdivision 1a if the commissioner has waived repayment by the operating
business under subdivision 1, unless the person that received benefits without
having to operate a business in the zone was a contributing factor in the
qualified business becoming subject to repayment under subdivision 1;
(2) the commissioner shall waive the repayment required under
subdivision 1a, even if the repayment has not been waived for the operating
business if:
(i) the person that received benefits without having to operate a
business in the zone and the business that operated in the zone are not related
parties as defined in section 267(b) of the Internal Revenue Code of 1986, as
amended through December 31, 2007; and
(ii) actions of the person were not a contributing factor in the
qualified business becoming subject to repayment under subdivision 1.
Subd. 6. Reconciliation. Where this
section is inconsistent with section 116J.994, subdivision 3, paragraph (e), or
6, or any other provisions of sections 116J.993 to 116J.995, this section
prevails.
EFFECTIVE DATE. The amendment to subdivision 4, paragraph (c), of this section
is effective the day following final enactment. The amendment to subdivision 4, paragraph (f), is effective
retroactively from January 1, 2008, and applies to all businesses that become
subject to this section in 2008. The
rest of this section is effective retroactively from January 1, 2004, except
that for violations that occur before the day following final enactment, this
section does not apply if the business has repaid the benefits or the
commissioner has granted a waiver.
Sec. 14. [469.3191] BREACH OF AGREEMENTS BY BUSINESSES THAT CONTINUE TO
OPERATE IN ZONE.
(a) A "business in violation of its business subsidy agreement but
not subject to section 469.319" means a business that is operating in
violation of the business subsidy agreement but maintains a level of operations
in the zone that does not subject it to the repayment provisions of section
469.319, subdivision 1, clause (1).
(b) A business described in paragraph (a) that does not sign a new or
amended business subsidy agreement, as authorized under paragraph (h), is
subject to repayment of benefits under section 469.319 from the day that it
ceases to perform in the zone a substantial level of activities described in
the business subsidy agreement.
(c) A business described in paragraph (a) ceases being a qualified
business after the last day that it has to meet the goals stated in the
agreement.
(d) A business is not entitled to any income tax or franchise tax
benefits, including refundable credits, for any part of the year in which the
business is no longer a qualified business under paragraph (c), and
thereafter. A business is not eligible
for sales tax benefits beginning with goods or services purchased or put to a
taxable use on the day that it is no longer a qualified business under
paragraph (c). Property is not exempt
from tax under section 272.02, subdivision 64, for any taxes payable in the
year following the year in which the business is no longer a qualified business
under paragraph (c), and thereafter.
(e) A business described in paragraph (a) that wants to resume
eligibility for benefits under section 469.315 must request that the
commissioner of employment and economic development determine the length of
time that the business is ineligible for benefits. The commissioner shall determine the length of ineligibility by
applying the proportionate level of performance under the agreement to the
total duration of the zone as measured from the date that the business subsidy
agreement was executed. The length of
time must not be less than one full year for each tax benefit listed in section
469.315. The commissioner of employment
and economic development and the appropriate local government officials shall
consult with the commissioner of revenue to ensure that the period of
ineligibility includes at least one full year of benefits for each tax.
(f) The length of ineligibility determined under paragraph (e) must be applied
by reducing the zone duration for the property by the duration of the
ineligibility.
(g) The zone duration of property that has been adjusted under
paragraph (f) must not be altered again to permit the business additional
benefits under section 469.315.
(h) A business described in paragraph (a) becomes eligible for benefits
available under section 469.315 by entering into a new or amended business
subsidy agreement with the appropriate local government unit. The new or amended agreement must cover a
period beginning from the date of ineligibility under the original business
subsidy agreement, through the zone duration determined by the commissioner
under paragraph (f). No exemption of
property taxes under section 272.02, subdivision 64, is available under the new
or amended agreement for property taxes due or paid before the date of the
final execution of the new or amended agreement, but unpaid taxes due after
that date need not be paid.
(i) A business that violates the terms of an agreement authorized under
paragraph (h) is permanently barred from seeking benefits under section 469.315
and is subject to the repayment provisions under section 469.319 effective from
the day that the business ceases to operate as a qualified business in the zone
under the second agreement.
EFFECTIVE DATE. This section is effective retroactively from January 1,
2004. For violations that occur before
the day following final enactment, this section does not apply if the business
has repaid the benefits or the commissioner has granted a waiver.
Sec. 15. [469.3192] PROHIBITION AGAINST AMENDMENTS TO BUSINESS SUBSIDY
AGREEMENT.
Except as authorized under section 469.3191, under no circumstance
shall terms of any agreement required as a condition for eligibility for
benefits listed under section 469.315 be amended to change job creation, job
retention, or wage goals included in the agreement.
EFFECTIVE DATE. This section is effective the day following final enactment
and applies to all agreements executed before, on, or after the effective date.
Sec. 16. [469.3193] CERTIFICATION OF CONTINUING ELIGIBILITY FOR JOBZ
BENEFITS.
(a) By December 1 of each year, every qualified business must certify
to the commissioner of revenue, on a form prescribed by the commissioner of
revenue, whether it is in compliance with any agreement required as a condition
for eligibility for benefits listed under section 469.315. A business that fails to submit the
certification, or any business, including those still operating in the zone,
that submits a certification that the commissioner of revenue later determines
materially misrepresents the business's compliance with the agreement, is
subject to the repayment provisions under section 469.319 from January 1 of the
year in which the report is due or the date that the business became subject to
section 469.319, whichever is earlier.
Any such business is permanently barred from obtaining benefits under
section 469.315. For purposes of this
section, the bar applies to an entity and also applies to any individuals or
entities that have an ownership interest of at least 20 percent of the entity.
(b) Before the sanctions under paragraph (a) apply to a business that
fails to submit the certification, the commissioner of revenue shall send notice
to the business, demanding that the certification be submitted within 30 days
and advising the business of the consequences for failing to do so. The commissioner of revenue shall notify the
commissioner of employment and economic development and the appropriate job
opportunity subzone administrator whenever notice is sent to a business under
this paragraph.
(c) The certification required under this section is public.
(d) The commissioner of revenue shall promptly notify the commissioner
of employment and economic development of all businesses that certify that they
are not in compliance with the terms of their business subsidy agreement and
all businesses that fail to file the certification.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes
2006, section 469.3201, is amended to read:
469.3201 JOBZ EXPENDITURE
LIMITATIONS; AUDITS STATE AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING
ZONES AND BUSINESS SUBSIDY AGREEMENTS.
The Tax Increment Financing, Investment and Finance Division of the
Office of the State Auditor must annually audit the creation and operation of
all job opportunity building zones and business subsidy agreements entered into
under Minnesota Statutes, sections 469.310 to 469.320. To the extent necessary to perform this
audit, the state auditor may request from the commissioner of revenue tax
return information of taxpayers who are eligible to receive tax benefits
authorized under section 469.315. To
the extent necessary to perform this audit, the state auditor may request from
the commissioner of employment and economic development wage detail report
information required under section 268.044 of taxpayers eligible to receive tax
benefits authorized under section 469.315.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 18. Minnesota Statutes
2006, section 473.39, is amended by adding a subdivision to read:
Subd. 1n. Obligations. After
July 1, 2008, in addition to other authority in this section, the council may
issue certificates of indebtedness, bonds, or other obligations under this
section in an amount not exceeding $33,000,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital
improvement program and for related costs, including the costs of issuance and
sale of the obligations.
EFFECTIVE DATE. This section is effective July 1, 2008, and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 19. Laws 1995, chapter
264, article 5, section 46, subdivision 2, is amended to read:
Subd. 2. Limitation on use of tax increments. (a) All revenues derived from tax increments must be used
in accordance with the housing replacement district plan. The revenues must be used solely to pay the
costs of site acquisition, relocation, demolition of existing structures, site
preparation, and pollution abatement on parcels identified in the housing
replacement district plan, as well as public improvements and administrative
costs directly related to those parcels.
(b) Notwithstanding paragraph (a), the city of Minneapolis may use
revenues derived from tax increments from its housing replacement district for
activities related to parcels not identified in the housing replacement plan,
but which would qualify for inclusion under section 45, subdivision 1,
paragraph (b), clauses (1) to (3).
(c) Notwithstanding paragraph (a), or any other provisions of sections
44 to 47, the Crystal Economic Development Authority may use revenues derived
from tax increments from its housing replacement districts numbers one and two
as if those districts were housing districts under Minnesota Statutes, section
469.174, subdivision 11, provided that eligible activities may be located
anywhere in the city without regard to the boundaries of housing replacement
district numbers one and two or any project area.
EFFECTIVE DATE. This section applies to revenues from the housing replacement
districts, regardless of when they were received, and is effective the day
following final enactment and for the city of Minneapolis, upon compliance by
the governing body of the city of Minneapolis with Minnesota Statutes, section
645.021, subdivision 3, and, for the city of Crystal, upon compliance by the
governing body of the city of Crystal with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 20. Laws 2003, chapter
127, article 10, section 31, subdivision 1, is amended to read:
Subdivision 1. District extension. (a) The governing body of the city of
Hopkins may elect to extend the duration of its redevelopment tax increment
financing district 2-11 by up to four additional years.
(b) Notwithstanding any law to the contrary, effective upon approval of
this subdivision, no increments may be spent on activities located outside of
the area of the district, other than to pay administrative expenses.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 21. Laws 2006, chapter
259, article 10, section 14, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) "City" means the city of Minneapolis.
(b) "Homeless assistance tax increment district" means a
contiguous area of the city that:
(1) is no larger than six eight acres;
(2) is located within the boundaries of a city municipal development
district; and
(3) contains at least two shelters for homeless persons that have been
owned or operated by nonprofit corporations that (i) are qualified charitable
organizations under section 501(c)(3) of the United States Internal Revenue
Code, (ii) have operated such homeless facilities within the district for at
least five years, and (iii) have been recipients of emergency services grants
under Minnesota Statutes, section 256E.36.
EFFECTIVE DATE. This section is effective upon compliance by the city of
Minneapolis with Minnesota Statutes, section 645.021.
Sec. 22. Laws 2008, chapter
154, article 9, section 23, is amended to read:
Sec. 23. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.
(a) If the city elects upon the adoption of a tax increment financing
plan for a district, the rules under this section apply to a redevelopment tax
increment financing district established by the city of Fridley or the housing
and redevelopment authority of the city.
The redevelopment tax increment district includes the following parcels
and adjacent railroad property and shall be referred to as the Northstar
Transit Station District: parcel
numbers 223024120010, 223024120009, 223024120017, 223024120016, 223024120018,
223024120012, 223024120011, 223024120005, 223024120004, 223024120003,
223024120013, 223024120008, 223024120007, 223024120006, 223024130005,
223024130010, 223024130011, 223024130003, 153024440039, 153024440037,
153024440041, 153024440042, 223024110013, 223024110016, 223024110017,
223024140008, 223024130002, 223024420004, 223024410002, 223024410003,
223024110008, 223024110007, 223024110019, 223024110018, 223024110003,
223024140003, 223024140009, 223024140002, 223024140010, and 223024410007.
(b) The requirements for qualifying a redevelopment tax increment
district under Minnesota Statutes, section 469.174, subdivision 10, do not
apply to the parcels located within the Northstar Transit Station District,
which are deemed eligible for inclusion in a redevelopment tax increment
district.
(c) In addition to the costs permitted by Minnesota Statutes, section
469.176, subdivision 4j, eligible expenditures within the Northstar Transit
Station District include those costs necessary to provide for the construction
and land acquisition for a tunnel under the Burlington Northern Santa Fe
railroad tracks to allow access to the Northstar Commuter Rail.
(d) Notwithstanding the provisions of Minnesota Statutes, section
469.1763, subdivision 2, the city of Fridley may expend increments generated
from its tax increment financing districts Nos. 11, 12, and 13 for costs
permitted by paragraph (c) and Minnesota Statutes, section 469.176, subdivision
4j, outside the boundaries of tax increment financing districts Nos. 11, 12,
and 13, but only within the Northstar Transit Station District.
(e) The five-year rule under Minnesota Statutes, section 469.1763,
subdivision 3, does not apply to the Northstar Transit Station District or to
tax increment financing districts Nos. 11, 12, and 13.
(f) The use of revenues for decertification under Minnesota Statutes,
section 469.1763, subdivision 4, does not apply to tax increment financing
districts Nos. 11, 12, and 13.
EFFECTIVE DATE. This section is effective upon approval by the governing body
of the city of Fridley and upon compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 23. Laws 2008, chapter
154, article 9, section 24, is amended to read:
Sec. 24. CITY OF NEW BRIGHTON; TAX INCREMENT FINANCING; EXPENDITURES OUTSIDE
DISTRICT.
Subdivision 1. Expenditures outside district. Notwithstanding the provisions of Minnesota Statutes, section
469.1763, subdivision 2, the city of New Brighton may expend increments
generated from its tax increment financing district No. 26 to facilitate
eligible activities as permitted by Minnesota Statutes, section 469.176,
subdivision 4e, outside the boundaries of tax increment financing district No.
26, but only within the area described in Laws 1998, chapter 389, article 11,
section 24, subdivision 1, and commonly referred to as the Northwest
Quadrant. Minnesota Statutes, section
469.1763, subdivisions 3 and 4, do not apply to expenditures permitted by this
section.
Subd. 2. District duration extension. Notwithstanding the provisions of Minnesota Statutes, section
469.176, subdivision 1b, or any other law to the contrary, the duration limits
that apply to redevelopment tax increment financing districts numbers 31 and 32
established under Laws 1998, chapter 389, article 11, section 24, and hazardous
substance subdistricts numbers 31A and 32A established under Minnesota
Statutes, sections 469.174 to 469.1799, are extended by four years.
EFFECTIVE DATE. This section is effective upon approval by the governing body
of the city of New Brighton and compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 24. CITY OF AUSTIN; TAX INCREMENT FINANCING AUTHORITY.
Notwithstanding the requirements of Minnesota Statutes, section
469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of tax increment financing district and
notwithstanding the provisions of any other law, the governing body of the city
of Austin may use tax increments from its Tax Increment Financing District No.
9 to reimburse the city's housing and redevelopment authority for money spent
disposing of soils and debris in the tax increment financing district, as
required by the Minnesota Pollution Control Agency.
EFFECTIVE DATE. This section is effective upon compliance by the governing
body of the city of Austin with the requirements of Minnesota Statutes, section
645.021.
Sec. 25. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
The requirements of Minnesota Statutes, section 469.1763, subdivision
3, that activities must be undertaken within a five-year period from the date
of certification of a tax increment financing district, are increased to a
ten-year period for the Port Authority of the City of Bloomington's Tax
Increment Financing District No. 1-I, Bloomington Central Station.
EFFECTIVE DATE. This section is effective upon compliance by the governing
body of the Port Authority of the City of Bloomington with the requirements of Minnesota
Statutes, section 645.021.
Sec. 26. CITY OF DULUTH; EXTENSION OF TIME FOR ACTIVITY IN TAX INCREMENT
FINANCING DISTRICT NO. 20.
The requirements of Minnesota Statutes, section 469.1763, subdivision
3, that activities must be undertaken within a five-year period from the date
of certification of a tax increment financing district, must be considered to
be met for Duluth Economic Development Authority Tax Increment Financing
District No. 20 if the activities are undertaken within ten years from the date
of certification of the district.
EFFECTIVE DATE. This section is effective upon compliance by the governing
body of the city of Duluth with the requirements of Minnesota Statutes, section
645.021.
Sec. 27. CITY OF DULUTH; EXTENSION OF TIME FOR ACTIVITY IN TAX INCREMENT
FINANCING DISTRICT NO. 21.
The requirements of Minnesota Statutes, section 469.1763, subdivision
3, that activities must be undertaken within a five-year period from the date
of certification of a tax increment financing district, must be considered to
be met for Duluth Economic Development Authority Tax Increment Financing
District No. 21 if the activities are undertaken within ten years from the date
of certification of the district.
EFFECTIVE DATE. This section is effective upon compliance by the governing
body of the city of Duluth with the requirements of Minnesota Statutes, section
645.021.
Sec. 28. CITY OF WELLS; DISPOSITION OF TIF REVENUES.
Notwithstanding the provisions of Minnesota Statutes, section 469.174,
subdivision 25, the following are deemed not to be "increments,"
"tax increments," or "revenues derived from tax increment"
for purposes of the redevelopment district in the city of Wells, identified as
Downtown Development Program 1, for amounts received after decertification of
the district:
(1) rents paid by private tenants for use of a building acquired in
whole or in part with tax increments; and
(2) proceeds from the sale of the building.
EFFECTIVE DATE. This section is effective upon compliance by the governing
body of the city of Wells with the requirements of Minnesota Statutes, section
645.021.
Sec. 29. MULTICOUNTY HOUSING AND REDEVELOPMENT AUTHORITY LEVY AUTHORITY.
Notwithstanding Minnesota Statutes, section 469.033, subdivision 6, or
any other law to the contrary, the governing body of the Northwest Minnesota
Multicounty Housing and Redevelopment Authority, upon approval by a two-thirds
majority of all its members, may levy an amount not to exceed 25 percent of the
total levy permitted under Minnesota Statutes, section 469.033, subdivision 6,
without approval of that levy by the governing body of the city or county
within which the authority operates.
The authority to levy the remainder of the total levy permitted under
that provision remains subject to approval by the governing body of the city or
county. For purposes of the levy
authorized under this section only, the Northwest Minnesota Multicounty Housing
and Redevelopment Authority is considered a special taxing jurisdiction as
provided in Minnesota Statutes, section 275.066.
EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable in
2009, and is repealed effective for taxes levied in 2013, payable in 2014, and
thereafter.
Sec. 30. CITY OF OAKDALE; ORIGINAL TAX CAPACITY.
(a) The provisions of this section apply to redevelopment tax increment
financing districts created by the Housing and Redevelopment Authority in and
for the city of Oakdale in the areas comprised of the parcels with the
following parcel identification numbers:
(1) 3102921320053; 3102921320054; 3102921320055; 3102921320056;
3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059;
3102921320060; and 3102921320061; and (2) 3102921330005 and 3102921330004.
(b) For a district subject to this section, the Housing and
Redevelopment Authority may, when requesting certification of the original tax
capacity of the district under Minnesota Statutes, section 469.177, elect to
have the original tax capacity of the district be certified as the tax capacity
of the land.
(c) The authority to request certification of a district under this
section expires on July 1, 2013.
EFFECTIVE DATE; LOCAL
APPROVAL. This section is effective upon approval
by the governing body of the city of Oakdale and compliance with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 31. DEED GRANTS.
$1,500,000 is appropriated to the commissioner of the Department of
Employment and Economic Development from the general fund for fiscal year 2009
for the purpose of making grants of $750,000 each to the cities of Minneapolis
and Saint Paul for capital improvements or related costs of the Target Center
and RiverCentre facilities.
ARTICLE 5
PROPERTY TAXES
Section 1. Minnesota Statutes
2006, section 216B.1646, is amended to read:
216B.1646 RATE REDUCTION
ADJUSTMENT; PROPERTY TAX REDUCTION CHANGE.
(a) The commission shall, by any method the commission finds
appropriate, reduce adjust the rates each electric utility
subject to rate regulation by the commission charges its customers to reflect,
on an ongoing basis, the amount by which each utility's property tax,
including the state general tax, if applicable, on the personal property of
its electric system from taxes payable in 2001 to taxes payable in 2002 is
reduced or pipeline system transporting or distributing natural gas is
changed under this act. The
commission must ensure that, to the extent feasible, each dollar of personal
property tax reduction allocated to Minnesota consumers retroactive to
January 1, 2002, change in taxes payable in 2009 and subsequent years
results in a dollar of savings adjustment to the utility's customers
rates. A utility may voluntarily
pass on any additional property tax savings allocated in the same manner as
approved by the commission under this paragraph. The adjustment under
this paragraph is outside of a general rate case proceeding under section
216B.16.
(b) By April 10, 2002, Each utility shall may
submit a filing to the commission containing:
(1) certified information regarding the utility's property tax savings
change allocated to Minnesota retail customers; and
(2) a proposed method of passing these savings on adjusting
rates to Minnesota retail customers.
The utility shall provide
the information in clause (1) to the commissioner of revenue at the same
time. The commissioner shall notify the
commission within 30 days as to the accuracy of the property tax data submitted
by the utility.
(c) For purposes of this section, "personal property" means
tools, implements, and machinery of the generating plant. It does not apply to transformers,
transmission lines, distribution lines, or any other tools, implements, and
machinery that are part of an electric substation, wherever located an
electric system or of a pipeline system transporting or distributing natural
gas.
Sec. 2. Minnesota Statutes
2006, section 270C.85, subdivision 2, is amended to read:
Subd. 2. Powers and duties. The
commissioner shall have and exercise the following powers and duties in
administering the property tax laws.
(a) Confer with, advise, and give the necessary instructions and
directions to local assessors and local boards of review throughout the state
as to their duties under the laws of the state.
(b) Direct proceedings, actions, and prosecutions to be instituted to
enforce the laws relating to the liability and punishment of public officers
and officers and agents of corporations for failure or negligence to comply
with the provisions of the property tax laws, and cause complaints to be made
against local assessors, members of boards of equalization, members of boards
of review, or any other assessing or taxing officer, to the proper authority,
for their removal from office for misconduct or negligence of duty.
(c) Require county attorneys to assist in the commencement of
prosecutions in actions or proceedings for removal, forfeiture, and punishment,
for violation of the property tax laws in their respective districts or
counties.
(d) Require town, city, county, and other public officers to report
information as to the assessment of property, and such other information as may
be needful in the work of the commissioner, in such form as the commissioner
may prescribe.
(e) Transmit to the governor, on or before the third Monday in December
of each even-numbered year, and to each member of the legislature, on or before
November 15 of each even-numbered year, the report of the department for the
preceding years, showing all the taxable property subject to the property tax
laws and the value of the same, in tabulated form.
(f) Inquire into the methods of assessment and taxation and ascertain
whether the assessors faithfully discharge their duties.
(g) Assist local assessors in determining the estimated market value of
industrial special-use property. For
purposes of this paragraph, "industrial special-use property" means
property that:
(1) is designed and equipped for a particular type of industry;
(2) is not easily adapted to some other use due to the unique nature of
the facilities;
(3) has facilities totaling at least 75,000 square feet in size; and
(4) has a total estimated market value of $10,000,000 or greater based
on the assessor's preliminary determination.
EFFECTIVE DATE. This section is effective for assessment year 2009 and thereafter,
for taxes payable in 2010 and thereafter.
Sec. 3. Minnesota Statutes
2006, section 272.02, is amended by adding a subdivision to read:
Subd. 85. Fergus Falls historical zone. (a) Property located in the area of the campus of the former
state regional treatment center in the city of Fergus Falls, including the five
buildings and associated land that were acquired by the city prior to January
1, 2007, is exempt from ad valorem taxes levied under chapter 275.
(b) The exemption applies for 15 calendar years from the date specified
by resolution of the governing body of the city of Fergus Falls. For the final three assessment years of the
duration limit, the exemption applies to the following percentages of estimated
market value of the property:
(1) for the third to the last assessment year of the duration, 75
percent;
(2) for the second to the last assessment year of the duration, 50
percent; and
(3) for the last assessment year of the duration, 25 percent.
EFFECTIVE DATE. This section is effective for property taxes payable in 2009
and thereafter.
Sec. 4. Minnesota Statutes
2006, section 272.02, is amended by adding a subdivision to read:
Subd. 86. Electric generation facility; personal property. (a) Notwithstanding subdivision 9, paragraph
(a), attached machinery and other personal property which is part of a
simple-cycle combustion-turbine electric generation facility that exceeds 150
megawatts of installed capacity and that meets the requirements of this
subdivision is exempt. At the time of
construction, the facility must:
(1) utilize natural gas as a primary fuel;
(2) be owned by an electric generation and transmission cooperative;
(3) be located within one mile of an existing 16-inch natural gas
pipeline and a 69-kilovolt and a 230-kilovolt high-voltage electric
transmission line;
(4) be designed to provide peaking, emergency backup, or contingency
services;
(5) have received a certificate of need under section 216B.243
demonstrating demand for its capacity; and
(6) have received by resolution the approval from the governing bodies
of the county and the city in which the proposed facility is to be located for
the exemption of personal property under this subdivision.
(b) Construction of the facility must be commenced after January 1,
2008, and before January 1, 2012.
Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections
appurtenant to the property or the facility.
EFFECTIVE DATE. This section is effective for the 2008 assessment payable in
2009 and thereafter.
Sec. 5. [273.0645] COMMISSIONER REVIEW OF LOCAL ASSESSMENT PRACTICES.
The commissioner of revenue must review the assessment practices in a
taxing jurisdiction if requested in writing by a qualifying number of property
owners in that taxing jurisdiction. The
request must be signed by the greater of:
(1) one percent of the property owners; or
(2) five property owners.
The request must identify the city, town, or county and describe why a
review is sought for that taxing jurisdiction.
The commissioner must conduct the review in a reasonable amount of time
and report the findings to the county board of the affected county, to the
affected city council or town board, if the review is for a specific city or
town, and to the property owner designated in the request as the person to
receive the report on behalf of all the property owners who signed the
request. The commissioner must also
provide the report electronically to all property owners who signed the request
and provided an e-mail address in order to receive the report electronically.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes
2006, section 273.11, subdivision 1, is amended to read:
Subdivision 1. Generally. Except as provided in this section or section 273.17, subdivision
1, all property shall be valued at its market value. The market value as determined pursuant to this section shall be
stated such that any amount under $100 is rounded up to $100 and any amount
exceeding $100 shall be rounded to the nearest $100. In estimating and determining such value, the assessor shall not
adopt a lower or different standard of value because the same is to serve as a
basis of taxation, nor shall the assessor adopt as a criterion of value the
price for which such property would sell at a forced sale, or in the aggregate
with all the property in the town or district; but the assessor shall value
each article or description of property by itself, and at such sum or price as
the assessor believes the same to be fairly worth in money. The assessor shall take into account the
effect on the market value of property of environmental factors in the vicinity
of the property, and the market value effect of foreclosed property on all
property in the vicinity due to the foreclosures. In assessing any tract or lot of real property, the value of the
land,
exclusive of structures and improvements, shall be determined, and also
the value of all structures and improvements thereon, and the aggregate value
of the property, including all structures and improvements, excluding the value
of crops growing upon cultivated land.
In valuing real property upon which there is a mine or quarry, it shall
be valued at such price as such property, including the mine or quarry, would
sell for at a fair, voluntary sale, for cash, if the material being mined or
quarried is not subject to taxation under section 298.015 and the mine or
quarry is not exempt from the general property tax under section 298.25. In valuing real property which is vacant,
platted property shall be assessed as provided in subdivision 14. All property, or the use thereof, which is
taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the
market value of such property and not at the value of a leasehold estate in
such property, or at some lesser value than its market value.
EFFECTIVE DATE. This section is effective for the 2009 assessment and
thereafter.
Sec. 7. Minnesota Statutes
2006, section 273.11, subdivision 1a, is amended to read:
Subd. 1a. Limited market value. In
the case of all property classified as agricultural homestead or nonhomestead,
residential homestead or nonhomestead, timber, or noncommercial seasonal
residential recreational, the assessor shall compare the value with the taxable
portion of the value determined in the preceding assessment.
For assessment years 2004, 2005, and 2006, the amount of the increase
shall not exceed the greater of (1) 15 percent of the value in the preceding
assessment, or (2) 25 percent of the difference between the current assessment
and the preceding assessment.
For assessment year years 2007 through 2009, the
amount of the increase shall not exceed the greater of (1) 15 percent of the
value in the preceding assessment, or (2) 33 percent of the difference between
the current assessment and the preceding assessment.
For assessment year 2008 2010, the amount of the increase
shall not exceed the greater of (1) 15 percent of the value in the preceding
assessment, or (2) 50 percent of the difference between the current assessment
and the preceding assessment.
This limitation shall not apply to increases in value due to
improvements. For purposes of this
subdivision, the term "assessment" means the value prior to any
exclusion under subdivision 16.
The provisions of this subdivision shall be in effect through
assessment year 2008 2010 as provided in this subdivision.
For purposes of the assessment/sales ratio study conducted under
section 127A.48, and the computation of state aids paid under chapters 122A,
123A, 123B, 124D, 125A, 126C, 127A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16, shall be used.
EFFECTIVE DATE. This section is effective for assessment year 2008 and
thereafter, for taxes payable in 2009 and thereafter.
Sec. 8. Minnesota Statutes
2006, section 273.11, subdivision 14b, is amended to read:
Subd. 14b. Vacant land platted on or after August 1, 2001; located in
nonmetropolitan counties. (a)
All land platted on or after (i) August 1, 2001, and located in a
nonmetropolitan county, or (ii) August 1, 2008, and located in a
metropolitan county, and not improved with a permanent structure, shall be
assessed as provided in this subdivision.
The assessor shall determine the market value of each individual lot
based upon the highest and best use of the property as unplatted land. In establishing the market value of the
property, the assessor shall consider the sale price of the unplatted land or
comparable sales of unplatted land of similar use and similar availability of
public utilities.
(b) The market value determined in paragraph (a) shall be increased as
follows for each of the seven assessment years immediately following the final
approval of the plat: one-seventh of
the difference between the property's unplatted market value as determined
under paragraph (a) and the market value based upon the highest and best use of
the land as platted property shall be added in each of the seven subsequent
assessment years.
(c) Any increase in market value after the first assessment year
following the plat's final approval shall be added to the property's market
value in the next assessment year.
Notwithstanding paragraph (b), if the property is sold or
transferred, or construction begins before the expiration of the seven
years in paragraph (b), that lot shall be eligible for revaluation in the next
assessment year. The market value of a
platted lot determined under this subdivision shall not exceed the value of
that lot based upon the highest and best use of the property as platted land.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 9. Minnesota Statutes
2006, section 273.11, is amended by adding a subdivision to read:
Subd. 14c. Vacant land platted on or after August 1, 2001, and prior to August
1, 2008; located in metropolitan county; phase-in readjusted. (a) All land platted on or after August
1, 2001, and prior to August 1, 2008, located in a metropolitan county and not
improved with a structure shall be eligible for the phase-in assessment
schedule under this section. Based upon
the assessor's records, the assessor shall obtain the estimated market value of
each individual lot based upon the highest and best use of the property as
unplatted land for the assessment year that the property was platted. In establishing the market value of the
property, the assessor shall have considered the sale price of the unplatted
land or comparable sales of unplatted land of similar use and similar
availability of public utilities.
(b) The market value determined in paragraph (a) plus one-seventh of
the difference between the property's unplatted market value as determined
under paragraph (a) and the market value based upon the highest and best use of
the land as platted property in the current year, multiplied by the number of
assessment years since the property was platted, shall be added in each of the
subsequent assessment years.
(c) Notwithstanding paragraph (b), if the property is sold or
transferred, or construction begins before the expiration of the phase-in in
paragraph (b), that lot shall be eligible for revaluation in the next
assessment year. The market value of a
platted lot determined under this subdivision shall not exceed the value of
that lot based upon the highest and best use of the property as platted land.
(d) For purposes of this section, "metropolitan county" means
the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 10. Minnesota Statutes
2006, section 273.11, is amended by adding a subdivision to read:
Subd. 24. Rural vacant land abutting public waters. (a) Any property that:
(1) is located in a township;
(2) is classified as either (i) agricultural property under section
273.13, subdivision 23, paragraph (b), or (ii) rural vacant land under section
273.13, subdivision 23, paragraph (c), contiguous to agricultural property
under the same ownership with at least two-thirds of the acreage used for
agricultural purposes;
(3) is not enrolled in the Minnesota agricultural property tax law
under section 273.111; and
(4) abuts public waters in whole or in part,
shall be valued by the
assessor on the same basis as rural vacant land of the same quality that does
not abut public waters, until some action is taken to develop the land as
specified in paragraph (c).
(b) In each assessment year, the assessor shall determine the estimated
market value of the property as provided under subdivision 1, taking into
consideration its highest and best use.
For each year that the property is classified under this subdivision,
the property tax statement shall include a notice that the property is being
taxed under a reduced valuation that will terminate under certain conditions.
(c) An owner of property meeting the criteria of this subdivision must
notify the county assessor within 30 days of applying for a development permit
from the county or local zoning board.
If development permits are not required, an owner of property meeting
the criteria of this subdivision must notify the assessor prior to all or any
portion of the property being platted or subdivided.
(d) When any of the conditions specified in paragraph (c) occurs,
additional taxes shall be imposed in an amount equal to: (1) the average of the difference between
the amount of taxes actually levied on the property in the current year and the
two prior years, and the amount of taxes that would have been levied in the
current year and the two prior years based on the estimated market value
determined under paragraph (b); (2) multiplied by seven or the number of years
that the property has qualified under this subdivision, whichever is less. The additional taxes shall be extended
against the property on the tax list for the current year, provided that no
interest or penalties shall be levied on the additional taxes if timely
paid. For purposes of this subdivision,
"public waters" means a meandered lake as defined under section
103G.005, subdivision 15, paragraph (a), clause (3).
EFFECTIVE DATE. This section is effective for the 2009 assessment and
thereafter.
Sec. 11. Minnesota Statutes
2006, section 273.11, is amended by adding a subdivision to read:
Subd. 25. Limit on taxable valuation; certain restored homes. A homestead property that either (i) has
gone through foreclosure or (ii) is located within a disaster or emergency area
and sustained physical damage of at least $5,000 in the disaster or emergency
is eligible for valuation limitation under this subdivision. To qualify for the limitation, the property
must:
(i) have been restored or rebuilt within 18 months of the foreclosure
or the disaster or emergency;
(ii) have a gross living area that does not exceed 130 percent of the
gross living area prior to the foreclosure or the disaster or emergency; and
(iii) have an estimated market value that exceeds its taxable market
value for the assessment year of the foreclosure or the disaster or emergency
by at least $20,000, due to the restoration or reconstruction.
In the first assessment year following the restoration or
reconstruction, the taxable value shall be equal to three-quarters of its
taxable value in the assessment year of the foreclosure or disaster or
emergency, plus one-quarter of its current estimated market value. In the second assessment year following the
restoration or reconstruction, the taxable value shall be equal to one-half of
its taxable value in the assessment year of the foreclosure or disaster or
emergency, and one-half of its current estimated market value. In the third assessment year following the
restoration or reconstruction, the taxable value shall be equal to one-quarter
of its taxable value in the assessment year of the foreclosure or disaster or
emergency, and three-quarters of its current estimated market value. For the three assessment years immediately
following the restoration or reconstruction, the property is not subject to the
valuation limit under subdivision 1a.
For the purposes of this subdivision:
(i) "disaster or emergency area" means an area in which the
president of the United States or the administrator of the Small Business Administration
has determined that a disaster exists pursuant to federal law;
(ii) "gone through foreclosure" means that a foreclosure sale
has been held and that the person who owned the home prior to the sale did not
redeem it from the sale under section 580.23; and
(iii) "gross living area" means the square footage of the
home that would customarily be used as living space.
EFFECTIVE DATE. This section is effective for assessment year 2009 and
thereafter.
Sec. 12. Minnesota Statutes
2006, section 273.111, subdivision 3, as amended by Laws 2008, chapter 154,
article 13, section 26, is amended to read:
Subd. 3. Requirements. (a) Real
estate consisting of ten three acres or more or a nursery or
greenhouse, and qualifying for classification as class 1b, 2a, or 2b
under section 273.13, shall be entitled to valuation and tax deferment under
this section only if it is primarily devoted to agricultural use, and
meets the qualifications in subdivision 6, and either:
(1) is the homestead of the owner, or of a surviving spouse, child, or
sibling of the owner or is real estate which is farmed with the real estate
which contains the homestead property; or
(2) has been in possession of the applicant, the applicant's spouse,
parent, or sibling, or any combination thereof, for a period of at least seven
years prior to application for benefits under the provisions of this section,
or is real estate which is farmed with the real estate which qualifies under
this clause and is within four townships or cities or combination thereof from
the qualifying real estate; or
(3) is the homestead of a shareholder in a family farm corporation
as defined in an individual who is part of an entity in compliance with
section 500.24, notwithstanding the fact that legal title to the real estate
may be held in the name of the family farm corporation; or
(4) is in the possession of a nursery or greenhouse or an entity owned
by a proprietor, partnership, or corporation which also owns the nursery or
greenhouse operations on the parcel or parcels, provided that only the acres
used to produce nursery stock qualify for treatment under this section.
(b) Valuation of real estate under this section is limited to
parcels the ownership of which is in noncorporate entities except for:
(1) family farm corporations organized pursuant to section 500.24; and
(2) corporations that derive 80 percent or more of their gross receipts
from the wholesale or retail sale of horticultural or nursery stock.
(c)
Land that previously qualified for tax deferment under this section and no
longer qualifies because it is not primarily used for agricultural purposes but
would otherwise qualify under subdivisions Minnesota Statutes 2006,
section 273.111, subdivision 3 and 6, for a period of at
least three years will not be required to make payment of the previously
deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to the expiration of
the three-year period requires payment of deferred taxes as follows: sale in
the year the land no longer qualifies requires payment of the current year's
deferred taxes plus payment of deferred taxes for the two prior years; sale
during the second year the land no longer qualifies requires payment of the
current year's deferred taxes plus
payment of the deferred taxes for the prior year; and sale during the
third year the land no longer qualifies requires payment of the current year's
deferred taxes. Deferred taxes shall be
paid even if the land qualifies pursuant to subdivision 11a. When such property is sold or no longer
qualifies under this paragraph, or at the end of the three-year period,
whichever comes first, all deferred special assessments plus interest are
payable in equal installments spread over the time remaining until the last maturity
date of the bonds issued to finance the improvement for which the assessments
were levied. If the bonds have matured,
the deferred special assessments plus interest are payable within 90 days. The provisions of section 429.061,
subdivision 2, apply to the collection of these installments. Penalties are not imposed on any such
special assessments if timely paid.
EFFECTIVE DATE. This section is effective for assessment year 2009, taxes
payable in 2010 and thereafter.
Sec. 13. Minnesota Statutes 2006, section 273.111, is
amended by adding a subdivision to read:
Subd. 3a. Property no longer
eligible for deferment. Real
estate that qualifies for tax deferment under this section for assessment year
2008, but which does not qualify for the current assessment year due to changes
in qualification requirements under this act, shall continue to qualify until
the land is sold or transferred, provided that the property continues to meet
the requirements of Minnesota Statutes 2006, section 273.111, subdivision 3.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter.
Sec. 14. Minnesota Statutes 2006, section 273.111,
subdivision 4, is amended to read:
Subd. 4. Determination
of value. (a) The value of
any real estate described in subdivision 3 shall upon timely application by the
owner, in the manner provided in subdivision 8, be determined solely with
reference to its appropriate agricultural classification and value
notwithstanding sections 272.03, subdivision 8, and 273.11. In determining the value for ad valorem
tax purposes, the assessor shall use sales data for agricultural lands located
outside the seven metropolitan counties having similar soil types, number of
degree days, and other similar agricultural characteristics. Furthermore, the assessor shall not
consider any added values resulting from nonagricultural factors. In order to account for the presence of
nonagricultural influences that may affect the value of agricultural land, the
commissioner of revenue shall develop a fair and uniform method of determining
agricultural values for each county in the state that are consistent with this
subdivision. The commissioner shall
annually assign the resulting values to each county, and these values shall be
used as the basis for determining the agricultural value for all properties in
the county qualifying for tax deferment under this section.
(b) In the case of property
qualifying for tax deferment only under subdivision 3a, the value shall be
based on the value in effect for assessment year 2008, multiplied by the ratio
of the total taxable market value of all property in the county for the current
assessment year divided by the total taxable market value of all property in
the county for assessment year 2008.
EFFECTIVE DATE. This section is effective for assessment year 2009 and
thereafter.
Sec. 15. Minnesota Statutes 2006, section 273.111,
subdivision 8, is amended to read:
Subd. 8. Application. Application for deferment of taxes and
assessment under this section shall be filed by May 1 of the year prior to the
year in which the taxes are payable.
Any application filed hereunder and granted shall continue in effect for
subsequent years until the property no longer qualifies. Such application shall be filed with the
assessor of the taxing district in which the real property is located on such
form as may be prescribed by the commissioner of revenue. The assessor may require proof by affidavit
or otherwise that the property qualifies under subdivisions subdivision
3 and 6.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter.
Sec. 16. Minnesota Statutes
2006, section 273.111, subdivision 9, is amended to read:
Subd. 9. Additional taxes. When real
property which is being, or has been valued and assessed under this section no
longer qualifies under subdivisions subdivision 3 and 6
or 3a, the portion no longer qualifying shall be subject to additional
taxes, in the amount equal to the average difference between the taxes
determined in accordance with subdivision 4, and the amount determined under
subdivision 5, for the current year and the two preceding years, multiplied
by seven or the number of years enrolled under section 273.111, whichever is
less. Provided, however, that the
amount determined under subdivision 5 shall not be greater than it would have
been had the actual bona fide sale price of the real property at an
arm's-length transaction been used in lieu of the market value determined under
subdivision 5. Such additional taxes
shall be extended against the property on the tax list for the current year,
provided, however, that no interest or penalties shall be levied on such
additional taxes if timely paid, and provided further, that such additional
taxes shall only be levied with respect to the last three years that the said
property has been valued and assessed under this section.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter.
Sec. 17. Minnesota Statutes
2006, section 273.111, subdivision 11, is amended to read:
Subd. 11. Special local assessments.
The payment of special local assessments levied after June 1, 1967, for
improvements made to any real property described in subdivision 3 together with
the interest thereon shall, on timely application as provided in subdivision 8,
be deferred as long as such property meets the conditions contained in subdivisions
subdivision 3 and 6 or 3a or is transferred to an
agricultural preserve under sections 473H.02 to 473H.17. If special assessments against the property
have been deferred pursuant to this subdivision, the governmental unit shall
file with the county recorder in the county in which the property is located a
certificate containing the legal description of the affected property and of
the amount deferred. When such property
no longer qualifies under subdivisions subdivision 3 and 6
or 3a, all deferred special assessments plus interest shall be payable in
equal installments spread over the time remaining until the last maturity date
of the bonds issued to finance the improvement for which the assessments were
levied. If the bonds have matured, the
deferred special assessments plus interest shall be payable within 90 days. The provisions of section 429.061,
subdivision 2, apply to the collection of these installments. Penalty shall not be levied on any such
special assessments if timely paid.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter.
Sec. 18. Minnesota Statutes
2006, section 273.111, subdivision 11a, is amended to read:
Subd. 11a. Continuation of tax treatment upon sale. When real property qualifying under subdivisions
subdivision 3 and 6 is sold, no additional taxes or deferred special
assessments plus interest shall be extended against the property provided the
property continues to qualify pursuant to subdivisions subdivision
3 and 6, and provided the new owner files an application for continued
deferment within 30 days after the sale.
For purposes of meeting the income requirements of subdivision 6, the
property purchased shall be considered in conjunction with other qualifying
property owned by the purchaser.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter.
Sec. 19. [273.1115] AGGREGATE RESOURCE PRESERVATION PROPERTY TAX LAW.
Subdivision 1. Definitions. For
purposes of this section, "commercial aggregate deposit" and
"actively mined" have the meanings given them in section 273.13,
subdivision 23, paragraph (l).
Subd. 2. Requirement. Real
estate is entitled to valuation under this section only if all of the following
requirements are met:
(1) the property is classified 1a, 1b, 2a, or 2b property under section
273.13, subdivisions 22 and 23;
(2) the property is at least ten contiguous acres, when the application
is filed under subdivision 3;
(3) the owner has filed a completed application for deferment as
specified in subdivision 3 with the county assessor in the county in which the
property is located;
(4) there are no delinquent taxes on the property; and
(5) a covenant on the land restricts its use as provided in subdivision
3, clause (4).
Subd. 3. Application. Application
for valuation deferment under this section must be filed by May 1 of the
assessment year. Any application filed
and granted continues in effect for subsequent years until the property no
longer qualifies, provided that supplemental affidavits under subdivision 8 are
timely filed. The application must be
filed with the assessor of the county in which the real property is located on
such form as may be prescribed by the commissioner of revenue. The application must be executed and
acknowledged in the manner required by law to execute and acknowledge a deed
and must contain at least the following information and any other information
the commissioner deems necessary:
(1) the legal description of the area;
(2) the name and address of owner;
(3) a copy of the affidavit filed under section 273.13, subdivision 23,
paragraph (l), when property is classified as:
(i) 1b under section 273.13, subdivision 22, paragraph (b);
(ii) 2a under section 273.13, subdivision 23;
(iii) 2b under section 273.13, subdivision 23; or
(iv) 2e under section 273.13, subdivision 23, paragraph (l).
The application must include a similar document with the same
information as contained in the affidavit under section 273.13, subdivision 23,
paragraph (l); and
(4) a statement of proof from the owner that the land contains a
restrictive covenant limiting its use for the property's surface to that which
exists on the date of the application and limiting its future use to the
preparation and removal of the commercial aggregate deposit under its
surface. To qualify under this clause,
the covenant must be binding on the owner or the owner's successor or assignee,
and run with the land, except as provided in subdivision 5 allowing for the
cancellation of the covenant under certain conditions.
Subd. 4. Determination of value.
Upon timely application by the owner as provided in subdivision 3, notwithstanding
sections 272.03, subdivision 8, and 273.11, the value of any qualifying land
described in subdivision 3 must be valued as if it were agricultural property,
using a per acre valuation equal to the current assessment year's average per
acre valuation of agricultural land in the county. The assessor shall not consider any additional value resulting
from potential alternative and future uses of the property. The buildings located on the land shall be
valued by the assessor in the normal manner.
Subd. 5. Cancellation of covenant.
The covenant required under subdivision 3 may be canceled in two
ways:
(1) by the owner beginning with the next subsequent assessment year
provided that the additional taxes as determined under subdivision 7 are paid by
the owner at the time of cancellation; or
(2) by the city or town in which the property is located beginning with
the next subsequent assessment year, if the city council or town board:
(i) changes the conditional use of the property;
(ii) revokes the mining permit; or
(iii) changes the zoning to disallow mining.
No additional taxes are imposed on the property under this clause.
Subd. 6. County termination. Within
two years of the effective date of this section, a county may, following notice
and public hearing, terminate application of this section in the county. The termination is effective upon adoption
of a resolution of the county board. A
county has 60 days from receipt of the first application for enrollment under
this section to notify the applicant and any subsequent applicants of the
county's intent to begin the process of terminating application of this section
in the county. The county must act on
the termination within six months. Upon
termination by a vote of the county board, all applications received prior to
and during notification of intent to terminate shall be deemed void. If the county board does not act on the
termination within six months of notification, all applications for valuation
for deferment received shall be deemed eligible for consideration to be
enrolled under this section. Following
this initial 60-day grace period, a termination applies prospectively and does
not affect property enrolled under this section prior to the termination
date. A county may reauthorize
application of this section by a resolution of the county board revoking the
termination.
Subd. 7. Additional taxes. When
real property which has been valued and assessed under this section no longer
qualifies, the portion of the land classified under subdivision 2, clause (1),
is subject to additional taxes. The
additional tax amount is determined by:
(1) computing the difference between (i) the current year's taxes
determined in accordance with subdivision 4, and (ii) an amount as determined
by the assessor based upon the property's current year's estimated market value
of like real estate at its highest and best use and the appropriate local tax
rate; and
(2) multiplying the amount determined in clause (1) by the number of
years the land was in the program under this section. The current year's estimated market value as determined by the
assessor must not exceed the market value that would result if the property was
sold in an arms-length transaction and must not be greater than it would have
been had the actual bona fide sale price of the property been used in lieu of
that market value. The additional taxes
must be extended against the property on the tax list for the current year,
except that interest or penalties must not be levied on these additional taxes
if timely paid. The additional tax
under this subdivision must not be imposed on that portion of the property
which has actively been mined and has been removed from the program based upon
the supplemental affidavits filed under subdivision 8.
Subd. 8. Supplemental affidavits; mining activity on land. When any portion of the property begins
to be actively mined, the owner must file a supplemental affidavit within 60
days from the day any aggregate is removed stating the number of acres of the
property that is actively being mined.
The acres actively being mined shall be (1) valued and classified
under section 273.13, subdivision 24, in the next subsequent assessment year,
and (2) removed from the aggregate resource preservation property tax
program under this section. The
additional taxes under subdivision 7 must not be imposed on the acres that are
actively being mined and have been removed from the
program under this section.
Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the
Department of Natural Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the
minimum acreage change is five acres, even if the actual mining activity
constitutes less than five acres.
Failure to file the affidavits timely shall result in the property
losing its valuation deferment under this section, and additional taxes must be
imposed as calculated under subdivision 7.
Subd. 9. Lien. The
additional tax imposed by this section is a lien upon the property assessed to
the same extent and for the same duration as other taxes imposed upon property
within this state and, when collected, must be distributed in the manner
provided by law for the collection and distribution of other property taxes.
Subd. 10. Continuation of tax treatment upon sale. When real property qualifying under
subdivision 2 is sold, additional taxes must not be extended against the
property if the property continues to qualify under subdivision 2, and the new
owner files an application with the assessor for continued deferment within 30
days after the sale.
EFFECTIVE DATE. This section is effective for taxes assessed in 2009, payable
in 2010, and thereafter, except that for the 2009 assessment year, the
application date under subdivision 5 shall be September 1, 2009, and
subdivision 6 is effective the day following final enactment.
Sec. 20. [273.113] TAX CREDIT FOR PROPERTY IN BOVINE TUBERCULOSIS MANAGEMENT
ZONES.
Subdivision 1. Definition. For
the purposes of this section, "bovine tuberculosis management zone"
means the area within the ten-mile radius around the five presumptive tuberculosis-positive
deer sampled during the fall 2006 hunter-harvested surveillance effort.
Subd. 2. Eligibility; credit on agricultural land; cattle herds. Land classified as class 2a or 2b under
section 273.13, subdivision 23, located in a bovine tuberculosis management
zone is eligible for a property tax credit if the property owner has eradicated
a cattle herd that had been kept on that land for at least part of the year in
order to prevent the onset or spread of bovine tuberculosis. The net credit is equal to that portion of
the tax relating to the market value of the land on the parcels where the herd
had been located after all other applicable credits have been deducted. To initially qualify for the tax credit, the
property owner shall file an application with the county by January 2 of the
year following the calendar year when the herd was eradicated. The credit must be given for each taxes
payable year following the calendar year when the herd was eradicated and must
terminate for all taxes payable years beginning after the calendar year when a
new herd of cattle was placed on the land or as provided in subdivision 5. The auditor shall indicate the amount of the
property tax reduction on the property tax statement of each taxpayer receiving
a credit under this section.
Notwithstanding section 276.04, subdivision 3, property tax statements
of properties eligible for a credit under this section must be mailed no later
than April 15.
Subd. 3. Eligibility; credit on hunting land; deer and elk herds. Land located in a bovine tuberculosis
management zone that is primarily used for hunting purposes is eligible for a
property tax credit if (1) the property owner or the Department of Natural
Resources has eradicated the deer and elk herd on that land in order to prevent
the onset or spread of bovine tuberculosis, (2) the property owner adheres
strictly to the deer and elk feeding ban, and (3) the property owner makes
every effort to keep their land free of deer and elk. The net credit is equal to the property tax on the parcel where
the herd had been located after all other applicable credits have been
deducted. The credit is only on that
portion of the tax relating to the market value of the land. To initially qualify for the tax credit, the
property owner shall file an application with the county by January 2 of the
year following the calendar year when the deer or elk herd was eradicated. To receive the tax credit in subsequent
years, the property owner shall file by January 2 of each subsequent year until
the state is upgraded to a bovine tuberculosis status of modified accredited
advanced. The county board must approve
the application before the credit is allowed.
The credit is for
each taxes payable year following the calendar year when the deer or
elk herd was eradicated and must terminate as provided in subdivision 5. The auditor shall indicate the amount of the
property tax reduction on the property tax statement of each taxpayer receiving
a credit under this section.
Notwithstanding section 276.04, subdivision 3, property tax statements
of properties eligible for a credit under this section must be mailed no later
than April 15.
Subd. 4. Reimbursement for lost revenue; appropriations. The county auditor shall certify to the
commissioner of revenue, as part of the abstracts of tax lists required to be
filed with the commissioner under section 275.29, the amount of tax lost to the
county from the property tax credit under this section after all other
applicable credits have been deducted.
Any prior year adjustments must also be certified in the abstracts of
tax lists. The commissioner of revenue
shall review the certifications to determine their accuracy. The commissioner may make the changes in the
certification that are considered necessary or return a certification to the
county auditor for corrections. The
commissioner shall reimburse each taxing district for the taxes lost. The payments must be made at the time
provided in section 273.1398, subdivision 6, for payment to taxing jurisdictions
in the same proportion that the ad valorem tax is distributed. The amount necessary to make the
reimbursements under this section is annually appropriated from the general
fund to the commissioner of revenue.
The credits paid under this section shall be deducted from the tax due
on the property as provided in section 273.1393.
Subd. 5. Termination of credit.
The credit provided under this section ceases to be available
beginning with any assessment year following the date when the United States Department
of Agriculture publishes notice in the Federal Register that the state is
upgraded to a bovine tuberculosis status of modified accredited advanced.
EFFECTIVE DATE. This section is effective beginning with taxes payable in
2009.
Sec. 21. Minnesota Statutes
2006, section 273.121, as amended by Laws 2008, chapter 154, article 13,
section 28, is amended to read:
273.121 VALUATION OF REAL
PROPERTY, NOTICE.
Subdivision 1. Notice. Any county
assessor or city assessor having the powers of a county assessor, valuing or
classifying taxable real property shall in each year notify those persons whose
property is to be included on the assessment roll that year if the person's
address is known to the assessor, otherwise the occupant of the property. The notice shall be in writing and shall be
sent by ordinary mail at least ten days before the meeting of the local board
of appeal and equalization under section 274.01 or the review process
established under section 274.13, subdivision 1c. Upon written request by the owner of the property, the assessor
may send the notice in electronic form or by electronic mail instead of on
paper or by ordinary mail. It shall
contain: (1) the market value for the
current and prior assessment, (2) the limited market value under section
273.11, subdivision 1a, for the current and prior assessment, (3) the
qualifying amount of any improvements under section 273.11, subdivision 16, for
the current assessment, (4) the market value subject to taxation after
subtracting the amount of any qualifying improvements for the current
assessment, (5) the classification of the property for the current and prior
assessment, (6) a note that if the property is homestead and at least 45 years
old, improvements made to the property may be eligible for a valuation
exclusion under section 273.11, subdivision 16, (7) the assessor's office
address, and (8) the dates, places, and times set for the meetings of the local
board of appeal and equalization, the review process established under section
274.13, subdivision 1c, and the county board of appeal and equalization. The commissioner of revenue shall specify
the form of the notice. The assessor
shall attach to the assessment roll a statement that the notices required by
this section have been mailed. Any
assessor who is not provided sufficient funds from the assessor's governing
body to provide such notices, may make application to the commissioner of
revenue to finance such notices. The
commissioner of revenue shall conduct an investigation and, if satisfied that
the assessor does not have the necessary funds, issue a certification to the
commissioner of finance of the amount necessary to provide such notices. The commissioner of finance shall issue a warrant
for such amount and shall deduct such amount from any state payment to such
county or municipality. The necessary
funds to make such payments are hereby appropriated. Failure to receive the notice shall in no way affect the validity
of the assessment, the resulting tax, the procedures of any board of review or
equalization, or the enforcement of delinquent taxes by statutory means.
Subd. 2. Availability of data.
The notice must state where the information on the property is
available, the times when the information may be viewed by the public, and the
county's Web site address.
EFFECTIVE DATE. This section is effective for notices prepared in 2009 and
thereafter.
Sec. 22. Minnesota Statutes
2006, section 273.124, subdivision 1, is amended to read:
Subdivision 1. General rule. (a) Residential real estate that is occupied and used for the
purposes of a homestead by its owner, who must be a Minnesota resident, is a
residential homestead.
Agricultural land, as defined in section 273.13, subdivision 23, that
is occupied and used as a homestead by its owner, who must be a Minnesota
resident, is an agricultural homestead.
Dates for establishment of a homestead and homestead treatment provided
to particular types of property are as provided in this section.
Property held by a trustee under a trust is eligible for homestead
classification if the requirements under this chapter are satisfied.
The assessor shall require proof, as provided in subdivision 13, of the
facts upon which classification as a homestead may be determined. Notwithstanding any other law, the assessor
may at any time require a homestead application to be filed in order to verify
that any property classified as a homestead continues to be eligible for
homestead status. Notwithstanding any
other law to the contrary, the Department of Revenue may, upon request from an
assessor, verify whether an individual who is requesting or receiving homestead
classification has filed a Minnesota income tax return as a resident for the
most recent taxable year for which the information is available.
When there is a name change or a transfer of homestead property, the
assessor may reclassify the property in the next assessment unless a homestead
application is filed to verify that the property continues to qualify for
homestead classification.
(b) For purposes of this section, homestead property shall include
property which is used for purposes of the homestead but is separated from the
homestead by a road, street, lot, waterway, or other similar intervening
property. The term "used for
purposes of the homestead" shall include but not be limited to uses for
gardens, garages, or other outbuildings commonly associated with a homestead,
but shall not include vacant land held primarily for future development. In order to receive homestead treatment for
the noncontiguous property, the owner must use the property for the purposes of
the homestead, and must apply to the assessor, both by the deadlines given in
subdivision 9. After initial
qualification for the homestead treatment, additional applications for
subsequent years are not required.
(c) Residential real estate that is occupied and used for purposes of a
homestead by a relative of the owner is a homestead but only to the extent of
the homestead treatment that would be provided if the related owner occupied
the property. For purposes of this
paragraph and paragraph (g), "relative" means a parent, stepparent,
child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
or niece. This relationship may be by
blood or marriage. Property that has
been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current
owner will not be reclassified as a homestead unless it is occupied as a homestead
by the owner; this prohibition also applies to property that, in the absence of
this paragraph, would have been classified as seasonal residential recreational
property at the time when the residence was constructed. Neither the related occupant nor the owner
of the property may claim a property tax refund under chapter 290A for a
homestead occupied by a relative. In
the case of a residence located on agricultural land, only the house, garage,
and immediately surrounding one acre of land shall be classified as a homestead
under this paragraph, except as provided in paragraph (d).
(d) Agricultural property that is occupied and used for purposes of a
homestead by a relative of the owner, is a homestead, only to the extent of the
homestead treatment that would be provided if the related owner occupied the
property, and only if all of the following criteria are met:
(1) the relative who is occupying the agricultural property is a son,
daughter, brother, sister, grandson, granddaughter, father, or mother of
the owner of the agricultural property or a son, daughter, brother, sister, grandson,
or granddaughter of the spouse of the owner of the agricultural property;
(2) the owner of the agricultural property must be a Minnesota
resident;
(3) the owner of the agricultural property must not receive homestead
treatment on any other agricultural property in Minnesota; and
(4) the owner of the agricultural property is limited to only one
agricultural homestead per family under this paragraph.
Neither the related occupant nor the owner of the property may claim a
property tax refund under chapter 290A for a homestead occupied by a relative
qualifying under this paragraph. For
purposes of this paragraph, "agricultural property" means the house,
garage, other farm buildings and structures, and agricultural land.
Application must be made to the assessor by the owner of the
agricultural property to receive homestead benefits under this paragraph. The assessor may require the necessary proof
that the requirements under this paragraph have been met.
(e) In the case of property owned by a property owner who is married,
the assessor must not deny homestead treatment in whole or in part if only one
of the spouses occupies the property and the other spouse is absent due
to: (1) marriage dissolution
proceedings, (2) legal separation, (3) employment or self-employment in another
location, or (4) other personal circumstances causing the spouses to live
separately, not including an intent to obtain two homestead classifications for
property tax purposes. To qualify under
clause (3), the spouse's place of employment or self-employment must be at
least 50 miles distant from the other spouse's place of employment, and the
homesteads must be at least 50 miles distant from each other. Homestead treatment, in whole or in part,
shall not be denied to the owner's spouse who previously occupied the residence
with the owner if the absence of the owner is due to one of the exceptions
provided in this paragraph.
(f) The assessor must not deny homestead treatment in whole or in part
if:
(1) in the case of a property owner who is not married, the owner is
absent due to residence in a nursing home, boarding care facility, or an
elderly assisted living facility property as defined in section 273.13,
subdivision 25a, and the property is not otherwise occupied; or
(2) in the case of a property owner who is married, the owner or the
owner's spouse or both are absent due to residence in a nursing home, boarding
care facility, or an elderly assisted living facility property as defined in
section 273.13, subdivision 25a, and the property is not occupied or is
occupied only by the owner's spouse.
(g) If an individual is purchasing property with the intent of claiming
it as a homestead and is required by the terms of the financing agreement to
have a relative shown on the deed as a co-owner, the assessor shall allow a
full homestead classification. This
provision only applies to first-time purchasers, whether married or single, or
to a person who had previously been married and is purchasing as a single
individual for the first time. The
application for homestead benefits must be on a form prescribed by the
commissioner and must contain the data necessary for the assessor to determine
if full homestead benefits are warranted.
(h) If residential or agricultural real estate is occupied and used for
purposes of a homestead by a child of a deceased owner and the property is
subject to jurisdiction of probate court, the child shall receive relative homestead
classification under paragraph (c) or (d) to the same extent they would be
entitled to it if the owner was still living, until the probate is
completed. For purposes of this
paragraph, "child" includes a relationship by blood or by marriage.
(i) If a single-family home, duplex, or triplex classified as either
residential homestead or agricultural homestead is also used to provide
licensed child care, the portion of the property used for licensed child care
must be classified as a part of the homestead property.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 23. Minnesota Statutes
2007 Supplement, section 273.124, subdivision 14, is amended to read:
Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten acres that is the homestead
of its owner must be classified as class 2a under section 273.13, subdivision
23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous on at least
two sides to (i) agricultural land, (ii) land owned or administered by the
United States Fish and Wildlife Service, or (iii) land administered by the
Department of Natural Resources on which in lieu taxes are paid under sections
477A.11 to 477A.14;
(2) its owner also owns a noncontiguous parcel of agricultural land
that is at least 20 acres;
(3) the noncontiguous land is located not farther than four townships
or cities, or a combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and farm
buildings is equal to at least 50 percent of the market value of the house,
garage, and one acre of land.
Homesteads initially classified as class 2a under the provisions of
this paragraph shall remain classified as class 2a, irrespective of subsequent
changes in the use of adjoining properties, as long as the homestead remains
under the same ownership, the owner owns a noncontiguous parcel of agricultural
land that is at least 20 acres, and the agricultural use value qualifies under
clause (4). Homestead classification
under this paragraph is limited to property that qualified under this paragraph
for the 1998 assessment.
(b)(i) Agricultural property consisting of at least 40 acres shall be
classified as the owner's homestead, to the same extent as other agricultural
homestead property, if all of the following criteria are met:
(1) the owner, the owner's spouse, the son or daughter of the owner or
owner's spouse, the brother or sister of the owner or owner's spouse, or
the grandson or granddaughter of the owner or the owner's spouse, is actively
farming the agricultural property, either on the person's own behalf as an
individual or on behalf of a partnership operating a family farm, family farm
corporation, joint family farm venture, or limited liability company of which
the person is a partner, shareholder, or member;
(2) both the owner of the agricultural property and the person who is
actively farming the agricultural property under clause (1), are Minnesota
residents;
(3) neither the owner nor the spouse of the owner claims another
agricultural homestead in Minnesota; and
(4) neither the owner nor and the person actively
farming the property lives farther than four townships or cities, or a
combination of four townships or cities, from the agricultural property,
must live either in the county where the agricultural property is located or in
a county contiguous to the county where the agricultural property is located,
except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively
farming the agricultural property, may live more than four townships or
cities, or combination of four townships or cities further from the
agricultural property than in the county or county contiguous to the
property.
The relationship under this paragraph may be either by blood or
marriage.
(ii) Real property held by a trustee under a trust is eligible for
agricultural homestead classification under this paragraph if the
qualifications in clause (i) are met, except that "owner" means the
grantor of the trust.
(iii) Property containing the residence of an owner who owns qualified
property under clause (i) shall be classified as part of the owner's agricultural
homestead, if that property is also used for noncommercial storage or drying of
agricultural crops.
(c) Noncontiguous land shall be included as part of a homestead under
section 273.13, subdivision 23, paragraph (a), only if the homestead is classified
as class 2a and the detached land is located in the same township or city,
or not farther than four townships or cities or combination thereof from
county or in a county contiguous to the homestead. Any taxpayer of these noncontiguous lands
must notify the county assessor that the noncontiguous land is part of the
taxpayer's homestead, and, if the homestead is located in another county, the
taxpayer must also notify the assessor of the other county.
(d) Agricultural land used for purposes of a homestead and actively
farmed by a person holding a vested remainder interest in it must be classified
as a homestead under section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
any other dwellings on the land used for purposes of a homestead by persons
holding vested remainder interests who are actively engaged in farming the
property, and up to one acre of the land surrounding each homestead and
reasonably necessary for the use of the dwelling as a home, must also be assessed
class 2a.
(e) Agricultural land and buildings that were class 2a homestead
property under section 273.13, subdivision 23, paragraph (a), for the 1997
assessment shall remain classified as agricultural homesteads for subsequent
assessments if:
(1) the property owner abandoned the homestead dwelling located on the
agricultural homestead as a result of the April 1997 floods;
(2) the property is located in the county of Polk, Clay, Kittson,
Marshall, Norman, or Wilkin;
(3) the agricultural land and buildings remain under the same ownership
for the current assessment year as existed for the 1997 assessment year and
continue to be used for agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is
within 30 miles of one of the parcels of agricultural land that is owned by the
taxpayer; and
(5) the owner notifies the county assessor that the relocation was due
to the 1997 floods, and the owner furnishes the assessor any information deemed
necessary by the assessor in verifying the change in dwelling. Further notifications to the assessor are
not required if the property continues to meet all the requirements in this
paragraph and any dwellings on the agricultural land remain uninhabited.
(f) Agricultural land and buildings that were class 2a homestead
property under section 273.13, subdivision 23, paragraph (a), for the 1998
assessment shall remain classified agricultural homesteads for subsequent
assessments if:
(1) the property owner abandoned the homestead dwelling located on the
agricultural homestead as a result of damage caused by a March 29, 1998,
tornado;
(2) the property is located in the county of Blue Earth, Brown,
Cottonwood, LeSueur, Nicollet, Nobles, or Rice;
(3) the agricultural land and buildings remain under the same ownership
for the current assessment year as existed for the 1998 assessment year;
(4) the dwelling occupied by the owner is located in this state and is
within 50 miles of one of the parcels of agricultural land that is owned by the
taxpayer; and
(5) the owner notifies the county assessor that the relocation was due
to a March 29, 1998, tornado, and the owner furnishes the assessor any
information deemed necessary by the assessor in verifying the change in
homestead dwelling. For taxes payable
in 1999, the owner must notify the assessor by December 1, 1998. Further notifications to the assessor are
not required if the property continues to meet all the requirements in this
paragraph and any dwellings on the agricultural land remain uninhabited.
(g) Agricultural property consisting of at least 40 acres of a family
farm corporation, joint family farm venture, family farm limited liability
company, or partnership operating a family farm as described under subdivision
8 shall be classified homestead, to the same extent as other agricultural
homestead property, if all of the following criteria are met:
(1) a shareholder, member, or partner of that entity is actively
farming the agricultural property;
(2) that shareholder, member, or partner who is actively farming the
agricultural property is a Minnesota resident;
(3) neither that shareholder, member, or partner, nor the spouse of
that shareholder, member, or partner claims another agricultural homestead in
Minnesota; and
(4) that shareholder, member, or partner does not live farther than
four townships or cities, or a combination of four townships or cities, from
the agricultural property lives in the county where the agricultural
property is located or in a county contiguous to the county where the property
is located.
Homestead treatment applies under this paragraph for property leased to
a family farm corporation, joint farm venture, limited liability company, or
partnership operating a family farm if legal title to the property is in the
name of an individual who is a member, shareholder, or partner in the entity.
(h) To be eligible for the special agricultural homestead under this
subdivision, an initial full application must be submitted to the county
assessor where the property is located.
Owners and the persons who are actively farming the property shall be
required to complete only a one-page abbreviated version of the application in
each subsequent year provided that none of the following items have changed since
the initial application:
(1) the day-to-day operation, administration, and financial risks
remain the same;
(2) the owners and the persons actively farming the property continue
to live within the four townships or city criteria the county or a
contiguous county and are Minnesota residents;
(3) the same operator of the agricultural property is listed with the
Farm Service Agency;
(4) a Schedule F or equivalent income tax form was filed for the most
recent year;
(5) the property's acreage is unchanged; and
(6) none of the property's acres have been enrolled in a federal or
state farm program since the initial application.
The owners and any persons who are actively farming the property must
include the appropriate Social Security numbers, and sign and date the
application. If any of the specified
information has changed since the full application was filed, the owner must
notify the assessor, and must complete a new application to determine if the
property continues to qualify for the special agricultural homestead. The commissioner of revenue shall prepare a
standard reapplication form for use by the assessors.
(i) Agricultural land and buildings that were class 2a homestead
property under section 273.13, subdivision 23, paragraph (a), for the 2007
assessment shall remain classified agricultural homesteads for subsequent
assessments if:
(1) the property owner abandoned the homestead dwelling located on the
agricultural homestead as a result of damage caused by the August 2007 floods;
(2) the property is located in the county of Dodge, Fillmore, Houston,
Olmsted, Steele, Wabasha, or Winona;
(3) the agricultural land and buildings remain under the same ownership
for the current assessment year as existed for the 2007 assessment year;
(4) the dwelling occupied by the owner is located in this state and is
within 50 miles of one of the parcels of agricultural land that is owned by the
taxpayer; and
(5) the owner notifies the county assessor that the relocation was due
to the August 2007 floods, and the owner furnishes the assessor any information
deemed necessary by the assessor in verifying the change in homestead
dwelling. For taxes payable in 2009,
the owner must notify the assessor by December 1, 2008. Further notifications to the assessor are
not required if the property continues to meet all the requirements in this
paragraph and any dwellings on the agricultural land remain uninhabited.
EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
thereafter, except that the provision extending the homestead to brothers and
sisters is effective for taxes payable in 2009 and thereafter.
Sec. 24. Minnesota Statutes
2006, section 273.13, subdivision 23, as amended by Laws 2008, chapter 154,
article 2, section 12, is amended to read:
Subd. 23. Class 2. (a) Class 2a
property is agricultural land including any improvements An agricultural
homestead consists of class 2a agricultural land that is homesteaded,
along with any class 2b rural vacant land that is contiguous to the class 2a
land. The market value of the house
and garage and immediately surrounding one acre of land has the same class
rates as class 1a or 1b property under subdivision 22. The value of the remaining land including
improvements up to the first tier valuation limit of agricultural homestead
property has a net class rate of 0.55 0.5 percent of market
value. The remaining property over the
first tier has a class rate of one percent of market value. For purposes of this subdivision, the
"first tier valuation limit of agricultural homestead property" and
"first tier" means the limit certified under section 273.11,
subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or
portions thereof, that are agricultural land and buildings. Class 2a property has a net class rate of
one percent of market value, unless it is part of an agricultural homestead
under paragraph (a). Class 2a property
may contain an incidental amount of property that would otherwise be classified
as 2b, including but not limited to sloughs, wooded wind shelters, acreage
abutting ditches, and other similar land impractical for the assessor to value
separately from the rest of the property.
(c)
Class 2b property is (1) rural vacant land consists of parcels of
property, or portions thereof, that are unplatted real estate, rural in
character and not used for agricultural purposes, including land used exclusively
for growing trees for timber, lumber, and wood and wood products; (2) real
estate that is not improved with a structure and is used exclusively for
growing trees for timber, lumber, and wood and wood products, if the owner has
participated or is participating in a cost-sharing program for afforestation,
reforestation, or timber stand improvement on that particular property,
administered or coordinated by the commissioner of natural resources; (3) real
estate that is nonhomestead agricultural land; or (4) a landing area or public
access area of a privately owned public use airport, provided that the
presence of a minor, ancillary nonresidential structure as defined by the
commissioner of revenue does not disqualify the property from classification
under this paragraph and provided that any parcel improved with a structure
that is not a minor, ancillary nonresidential structure may be
split-classified, provided that the acreage assigned to the split parcel with
the structure is at least 20 acres.
Class 2b property has a net class rate of one percent of market value,
except that unplatted property described in clause (1) or (2) has a net class
rate of .65 percent if it consists unless it is part of an agricultural
homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
(d) Class 2c managed forest land consists of no less than ten
20 and no more than 1,920 acres and statewide per taxpayer that
is being managed under a forest management plan that meets the requirements of
chapter 290C, but is not enrolled in the sustainable forest resource management
incentive program. It has a class
rate of .65 percent, provided that the owner of the property must apply to
the assessor annually to receive the reduced class rate and provide the
information required by the assessor to verify that the property qualifies for
the reduced rate. The commissioner
of natural resources must concur that the land is qualified. The commissioner of natural resources shall
annually provide county assessors verification information on a timely basis.
(c)
(e)
Agricultural land as used in this section means contiguous acreage of ten
acres or more, property used during the preceding year for
agricultural purposes. "Agricultural purposes" as used in this
section means the raising or, cultivation, drying, or storage
of agricultural products for sale, or the storage of machinery or equipment
used in support of agricultural production. For a property to be classified as agricultural based only on
the drying or storage of agricultural products, the products being dried or
stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also
includes enrollment in the Reinvest in Minnesota program under sections
103F.501 to 103F.535 or the federal Conservation Reserve Program as contained
in Public Law 99-198 if the property was classified as agricultural (i) under
this subdivision for the assessment year 2002 or (ii) in the year prior to its
enrollment. Contiguous acreage on
the same parcel, or contiguous acreage on an immediately adjacent parcel under
the same ownership, may also qualify as agricultural land, but only if it is
pasture, timber, waste, unusable wild land, or land included in state or
federal farm programs. Agricultural
classification for property shall be determined excluding the house, garage,
and immediately surrounding one acre of land, and shall not be based upon
the market value of any residential structures on the parcel or contiguous
parcels under the same ownership.
(d)
(f) Real
estate of less than five acres, excluding the house, garage, and immediately
surrounding one acre of land, of less than ten acres which is exclusively
and intensively used for raising or cultivating agricultural products, shall be
considered as agricultural land qualifies as class 2a if:
(i) the entire parcel is tilled or pastured to produce an agricultural
product for sale in three of the last five years;
(ii) the acres are used primarily for drying or storage of grain or
storage of machinery or equipment used to support agricultural activities on
other parcels of property operated by the same farming entity;
(iii) the land mass contains a nursery, provided only those acres used
to produce nursery stock are considered agricultural land;
(iv) the parcel is used exclusively as a livestock or poultry
confinement process; or
(v) the parcel is used primarily for market farming; for purposes of
this paragraph, "market farming" means the cultivation of one or more
fruits or vegetables or production of animal or other agricultural products for
sale to local markets by the farmer or an organization with which the farmer is
affiliated.
(g) Land
shall be classified as agricultural even if all or a portion of the
agricultural use of that property is the leasing to, or use by another person
for agricultural purposes.
Classification under this subdivision is not determinative for
qualifying under section 273.111.
(h) The
property classification under this section supersedes, for property tax
purposes only, any locally administered agricultural policies or land use
restrictions that define minimum or maximum farm acreage.
(e)
(i) The
term "agricultural products" as used in this subdivision includes
production for sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry
products, fur-bearing animals, horticultural and nursery stock, fruit of all
kinds, vegetables, forage, grains, bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on
land zoned for agricultural use;
(3) the commercial boarding of horses if the boarding is done in
conjunction with raising or cultivating agricultural products as defined in
clause (1);
(4) property which is owned and operated by nonprofit organizations
used for equestrian activities, excluding racing;
(5) game birds and waterfowl bred and raised for use on a shooting
preserve licensed under section 97A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody
crops, and not sold for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the
Minnesota Department of Agriculture under chapter 28A as a food processor.
(f)
(j) If a
parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in
clauses (1), (2), and (3),
the assessor shall classify
the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b,
whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and
packaging of raw agricultural products for first sale is considered an
agricultural purpose. A greenhouse or
other building where horticultural or nursery products are grown that is also
used for the conduct of retail sales must be classified as agricultural if it
is primarily used for the growing of horticultural or nursery products from
seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or
building only for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
The assessor shall determine and list separately on the records the
market value of the homestead dwelling and the one acre of land on which that
dwelling is located. If any farm
buildings or structures are located on this homesteaded acre of land, their
market value shall not be included in this separate determination.
(g)
(k) Class 2d airport landing area consists of a landing area or public access
area of a privately owned public use airport.
To
qualify for classification under this paragraph (b), clause (4),
a privately owned public use airport must be licensed as a public airport under
section 360.018. For purposes of
this paragraph (b), clause (4), "landing area" means that
part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes
runways, taxiways, aprons, and sites upon which are situated landing or
navigational aids. A landing area also
includes land underlying both the primary surface and the approach surfaces
that comply with all of the following:
(i) the land is properly cleared and regularly maintained for the
primary purposes of the landing, taking off, and taxiing of aircraft; but that
portion of the land that contains facilities for servicing, repair, or
maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a
landing area under this paragraph (b), clause (4), must be
described and certified by the commissioner of transportation. The certification is effective until it is
modified, or until the airport or landing area no longer meets the requirements
of this paragraph (b), clause (4). For purposes of this paragraph (b), clause (4),
"public access area" means property used as an aircraft parking ramp,
apron, or storage hangar, or an arrival and departure building in connection
with the airport.
(l) Class 2e consists of land with a commercial aggregate deposit that
is actively being mined and is not otherwise classified as class 2a or 2b. To qualify for classification under this
paragraph, the property must be at least ten contiguous acres in size and the
owner of the property must record with the county recorder of the county in
which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate
deposit that is not actively being mined but is present on the entire parcel
enrolled;
(3) documentation that the conditional use under the county or local
zoning ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of
government or the mining activity is allowed under local ordinance. The disclosure must include a statement from
a registered professional geologist, engineer, or soil scientist delineating
the deposit and certifying that it is a commercial aggregate deposit.
For purposes of this section and section 273.1115, "commercial
aggregate deposit" means a deposit that will yield crushed stone or sand
and gravel that is suitable for use as a construction aggregate; and
"actively mined" means the removal of top soil and overburden in
preparation for excavation or excavation of a commercial deposit.
(m) When any portion of the property under this subdivision or
subdivision 22 begins to be actively mined, the owner must file a supplemental
affidavit within 60 days from the day any aggregate is removed stating the
number of acres of the property that is actively being mined. The acres actively being mined must be (1)
valued and classified under subdivision 24 in the next subsequent assessment
year, and (2) removed from the aggregate resource preservation property tax
program under section 273.1115, if the land was enrolled in that program. Copies of the original affidavit and all
supplemental affidavits must be filed with the county assessor, the local
zoning administrator, and the Department of Natural Resources, Division of Land
and Minerals. A supplemental affidavit
must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual
mining activity constitutes less than five acres.
EFFECTIVE DATE. The portion of this section reducing the agricultural class
rate, and expanding the definition of "agricultural purposes" in
paragraph (e) and "agricultural products" in paragraph (h), is
effective for taxes payable in 2009 and thereafter. The remainder of the section is effective for taxes payable in
2010 and thereafter.
Sec. 25. Minnesota Statutes
2006, section 273.13, subdivision 24, is amended to read:
Subd. 24. Class 3. (a) Commercial and
industrial property and utility real and personal property is class 3a.
(1) Except as otherwise provided, each parcel of commercial,
industrial, or utility real property has a class rate of 1.5 percent of the
first tier of market value, and 2.0 percent of the remaining market value. In the case of contiguous parcels of
property owned by the same person or entity, only the value equal to the
first-tier value of the contiguous parcels qualifies for the reduced class
rate, except that contiguous parcels owned by the same person or entity shall
be eligible for the first-tier value class rate on each separate business
operated by the owner of the property, provided the business is housed in a
separate structure. For the purposes of
this subdivision, the first tier means the first $150,000 of market value. Real property owned in fee by a utility for
transmission line right-of-way shall be classified at the class rate for the
higher tier.
For purposes of this subdivision, parcels are considered to be
contiguous even if they are separated from each other by a road, street,
waterway, or other similar intervening type of property. Connections between parcels that consist of
power lines or pipelines do not cause the parcels to be contiguous. Property owners who have contiguous parcels
of property that constitute separate businesses that may qualify for the
first-tier class rate shall notify the assessor by July 1, for treatment
beginning in the following taxes payable year.
(2) All Personal property that is: (i) part of an electric generation, transmission, or
distribution system; or (ii), including tools, implements, and
machinery, has a class rate of 2.4 percent for taxes payable in 2009, and 2.8
percent for taxes payable in 2010 and thereafter.
(3) Personal property that is either:
(i) part
of a pipeline system transporting or distributing water, gas, crude oil, or
petroleum products; and (iii) not described in clause (3), and all,
including tools, implements, and machinery, or (ii) part of an electric
transmission or distribution system, including tools, implements, and
machinery, has a class rate of 2.0 percent for taxes payable in 2009 and
thereafter.
(4) Railroad
operating property has a class rate as provided under clause (1) for the first
tier of market value and the remaining market value. In the case of multiple parcels in one county that are owned by
one person or entity, only one first tier amount is eligible for the reduced
rate.
(3) The entire market value of personal property that is: (i) tools, implements, and machinery of an
electric generation, transmission, or distribution system; (ii) tools,
implements, and machinery of a pipeline system transporting or distributing
water, gas, crude oil, or petroleum products; or (iii) the (5) Personal property
consisting of
mains and pipes used in the distribution of steam or hot or chilled water for
heating or cooling buildings, has a class rate as provided under clause (1) for
the remaining market value in excess of the first tier.
(b) Employment property defined in section 469.166, during the period
provided in section 469.170, shall constitute class 3b. The class rates for class 3b property are
determined under paragraph (a).
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 26. Minnesota Statutes
2006, section 273.13, subdivision 25, as amended by Laws 2008, chapter 154,
article 2, section 13, is amended to read:
Subd. 25. Class 4. (a) Class 4a is
residential real estate containing four or more units and used or held for use
by the owner or by the tenants or lessees of the owner as a residence for
rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed
under sections 144.50 to 144.56, other than hospitals exempt under section
272.02, and contiguous property used for hospital purposes, without regard to
whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25
percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does
not qualify as class 4bb, other than seasonal residential recreational
property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b) containing two
or three units; and
(4)
is
unimproved property that is classified residential as determined under
subdivision 33.
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit
up to three units, other than seasonal residential recreational property; and
(2) a single family dwelling, garage, and surrounding one acre
of property on a nonhomestead farm classified under subdivision 23, paragraph
(b), containing up to three units; and
(3) manufactured homes not classified under any other provision.
Class 4bb property has the same class rates as class 1a property under
subdivision 22.
Property that has been classified as seasonal residential recreational
property at any time during which it has been owned by the current owner or
spouse of the current owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), or subdivision
23, paragraph (b), clause (1), real and personal property devoted to temporary
and seasonal residential occupancy for recreation purposes, including real and
personal property devoted to temporary and seasonal residential occupancy for
recreation purposes and not devoted to commercial purposes for more than 250
days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial
purpose on a specific day if any portion of the property is used for
residential occupancy, and a fee is charged for residential occupancy. Class 4c property must contain three or more
rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual
camping site equipped with water and electrical hookups for recreational
vehicles. Class 4c property must
provide recreational activities such as renting ice fishing houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment; provide marina
services, launch services, or guide services; or sell bait and fishing
tackle. A camping pad offered for rent
by a property that otherwise qualifies for class 4c is also class 4c regardless
of the term of the rental agreement, as long as the use of the camping pad does
not exceed 250 days. In order for a
property to be classified as class 4c, seasonal residential recreational for
commercial purposes, at least 40 percent of the annual gross lodging receipts
related to the property must be from business conducted during 90 consecutive
days and either (i) at least 60 percent of all paid bookings by lodging guests
during the year must be for periods of at least two consecutive nights; or (ii)
at least 20 percent of the annual gross receipts must be from charges for
rental of fish houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment, or charges for marina services, launch services, and guide
services, or the sale of bait and fishing tackle. For purposes of this determination, a paid booking of five or
more nights shall be counted as two bookings.
Class 4c also includes commercial use real property used exclusively for
recreational purposes in conjunction with class 4c property devoted to
temporary and seasonal residential occupancy for recreational purposes, up to a
total of two acres, provided the property is not devoted to commercial
recreational use for more than 250 days in the year preceding the year of
assessment and is located within two miles of the class 4c property with which
it is used. Owners of real and personal
property devoted to temporary and seasonal residential occupancy for recreation
purposes and all or a portion of which was devoted to commercial purposes for
not more than 250 days in the year preceding the year of assessment desiring
classification as class 4c, must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year
preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c as
otherwise provided. The remainder of
the cabins or units and a proportionate share of the land on which they are
located will be designated as class 3a.
The owner of property desiring designation as class 4c property must
provide guest registers or other records demonstrating that the units for which
class 4c designation is sought were not occupied for more than 250 days in the
year preceding the assessment if so requested.
The portion of a property operated as a (1) restaurant, (2) bar, (3)
gift shop, (4) conference center or meeting room, and (5) other nonresidential
facility operated on a commercial basis not directly related to temporary and
seasonal residential occupancy for recreation purposes does not qualify for
class 4c;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a
membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically
charged by municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3,
paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in
conjunction with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used
by a nonprofit community service oriented organization and that is not used for
residential purposes on either a temporary or permanent basis, qualifies for
class 4c provided that it meets either of the following:
(i) the property is not used for a revenue-producing activity for more
than six days in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and
donations at least equal to the property's previous year's property taxes and
the property is allowed to be used for public and community meetings or events
for no charge, as appropriate to the size of the facility.
For purposes of this clause,
(A) "charitable contributions and donations" has the same
meaning as lawful gambling purposes under section 349.12, subdivision 25,
excluding those purposes relating to the payment of taxes, assessments, fees,
auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization"
means any corporation, society, association, foundation, or institution
organized and operated exclusively for charitable, religious, fraternal, civic,
or educational purposes, and which is exempt from federal income taxation
pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue Code of
1986, as amended through December 31, 1990; and
(D) "revenue-producing activities" shall include but not be
limited to property or that portion of the property that is used as an on-sale
intoxicating liquor or 3.2 percent malt liquor establishment licensed under
chapter 340A, a restaurant open to the public, bowling alley, a retail store,
gambling conducted by organizations licensed under chapter 349, an insurance
business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property
qualifying under item (i) which is used for revenue-producing activities for
more than six days in the calendar year preceding the year of assessment shall
be assessed as class 3a. The use of the
property for social events open exclusively to members and their guests for
periods of less than 24 hours, when an admission is not charged nor any
revenues are received by the organization shall not be considered a
revenue-producing activity.
The organization shall maintain records of its charitable contributions
and donations and of public meetings and events held on the property and make
them available upon request any time to the assessor to ensure
eligibility. An organization meeting
the requirement under item (ii) must file an application by May 1 with the
assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;
(4) postsecondary student housing of not more than one acre of land
that is owned by a nonprofit corporation organized under chapter 317A and is
used exclusively by a student cooperative, sorority, or fraternity for
on-campus housing or housing located within two miles of the border of a
college campus;
(5) manufactured home parks as defined in section 327.14, subdivision
3;
(6) real property that is actively and exclusively devoted to indoor
fitness, health, social, recreational, and related uses, is owned and operated
by a not-for-profit corporation, and is located within the metropolitan area as
defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar
not exempt under section 272.01, subdivision 2, and the land on which it is
located, provided that:
(i) the land is on an airport owned or operated by a city, town,
county, Metropolitan Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting
the use of the leased premise, prohibits commercial activity performed at the
hangar.
If a hangar classified under this clause is sold after June 30, 2000, a
bill of sale must be filed by the new owner with the assessor of the county
where the property is located within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located,
provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor
with a signed agreement restricting the use of the premises, prohibiting
commercial use or activity performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner
for homestead purposes, and that is also a place of lodging, if all of the
following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay
for periods of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is
incorporated in the basic room rate;
(iii) meals are not provided to the general public except for special
events on fewer than seven days in the calendar year preceding the year of the
assessment; and
(iv) the owner is the operator of the property.
The market value subject to
the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess
of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by
the owner must be classified as class 1a property under subdivision 22.
Class 4c property has a class rate of 1.5 percent of market value,
except that (i) each parcel of seasonal residential recreational property not
used for commercial purposes has the same class rates as class 4bb property,
(ii) manufactured home parks assessed under clause (5) have the same class rate
as class 4b property, (iii) commercial-use seasonal residential recreational
property has a class rate of one percent for the first $500,000 of market
value, and 1.25 percent for the remaining market value, (iv) the market value
of property described in clause (4) has a class rate of one percent, (v) the
market value of property described in clauses (2) and (6) has a class rate of
1.25 percent, and (vi) that portion of the market value of property in clause
(9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified
to the assessor by the Housing Finance Agency under section 273.128,
subdivision 3. If only a portion of the
units in the building qualify as low-income rental housing units as certified
under section 273.128, subdivision 3, only the proportion of qualifying units
to the total number of units in the building qualify for class 4d. The remaining portion of the building shall
be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the
qualifying low-income rental housing units are to the total units in the
building. For all properties qualifying
as class 4d, the market value determined by the assessor must be based on the
normal approach to value using normal unrestricted rents.
Class 4d property has a class rate of 0.75 percent.
EFFECTIVE DATE. This section is effective for assessment year 2008 and
thereafter, and for taxes payable in 2009 and thereafter.
Sec. 27. Minnesota Statutes
2006, section 273.13, subdivision 33, is amended to read:
Subd. 33. Classification of unimproved property. (a) All real property that is not improved with a structure must
be classified according to its current use.
(b) Except as provided in subdivision 23, paragraph (c), real
property that is not improved with a structure and for which there is no
identifiable current use must be classified according to its highest and best
use permitted under the local zoning ordinance. If the ordinance permits more than one use, the land must be
classified according to the highest and best use permitted under the
ordinance. If no such ordinance exists,
the assessor shall consider the most likely potential use of the unimproved
land based upon the use made of surrounding land or land in proximity to the
unimproved land.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 28. [273.1388] PROPERTY TAX CREDIT FOR LEASED LAND.
Noncommercial seasonal residential recreational property located on
land leased from a governmental unit or agency is eligible for a property tax
credit equal to 25 percent of the annual lease payment. Eligible taxpayers must file an application
with the county auditor prior to November 1 of the year in which the property
taxes are payable. The application
shall be on a form prescribed by the commissioner of revenue, and must include
such evidence as the county deems necessary of the annual lease payment for the
period corresponding to the taxes payable year. The county may either pay the credit directly to the property
owner or subtract it as a credit on the property tax statement, whichever it
considers to be more administratively cost-efficient. If the county makes a direct payment of the credit to the property
owner, the county must pay the credit by August 1 of the year in which the
taxes are payable or within 45 days of receipt of the application, whichever is
later.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 29. Minnesota Statutes
2007 Supplement, section 273.1393, is amended to read:
273.1393 COMPUTATION OF NET
PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net"
property taxes are determined by subtracting the credits in the order listed
from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) homestead and agricultural credits as provided in section 273.1384;
(8) taconite homestead credit as provided in section 273.135; and
(9) supplemental homestead credit as provided in section 273.1391;
and
(10) bovine tuberculosis management credit as provided in section
273.113.
The combination of all property tax credits must not exceed the gross
tax amount.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 30. Minnesota Statutes
2006, section 274.14, is amended to read:
274.14 LENGTH OF SESSION;
RECORD.
The board may meet on any ten consecutive meeting days in June, after
the second Friday in June. The actual
meeting dates must be contained on the valuation notices mailed to each
property owner in the county as provided in section 273.121. For this purpose, "meeting days"
is defined as any day of the week excluding Saturday and Sunday. At the board's discretion, "meeting
days" may include Saturday. No
action taken by the county board of review after June 30 is valid, except for
corrections permitted in sections 273.01 and 274.01. The county auditor shall keep an accurate record of the
proceedings and orders of the board.
The record must be published like other proceedings of county
commissioners. A copy of the published
record must be sent to the commissioner of revenue, with the abstract of
assessment required by section 274.16.
For counties that conduct either regular board of review meetings or
open book meetings, at least one of the meeting days must include a meeting
that does not end before 7:00 p.m. For
counties that require taxpayer appointments for the board of review,
appointments must include some available times that extend until at least 7:00
p.m. The county may have a Saturday
meeting in lieu of, or in addition to, the extended meeting times under this
paragraph.
Sec. 31. Minnesota Statutes
2006, section 275.025, subdivision 1, is amended to read:
Subdivision 1. Levy amount. The state general levy is levied against commercial-industrial
property and seasonal residential recreational property, as defined in this
section. The state general levy base
amount is $592,000,000 for taxes payable in 2002. For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by
the sum of one plus the rate of increase, if any, in the implicit price deflator
for government consumption expenditures and gross investment for state and
local governments prepared by the Bureau of Economic Analysts of the United
States Department of Commerce for the 12-month period ending March 31 of the
year prior to the year the taxes are payable.
The tax under this section is not treated as a local tax rate under
section 469.177 and is not the levy of a governmental unit under chapters 276A
and 473F.
In setting the rate, the commissioner shall exclude the tax capacity of
property described in section 473.625 from the tax base. The commissioner shall increase or decrease the
preliminary or final rate for a year as necessary to account for errors and tax
base changes that affected a preliminary or final rate for either of the two
preceding years. Adjustments are
allowed to the extent that the necessary information is available to the
commissioner at the time the rates for a year must be certified, and for the
following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial
or seasonal residential recreational property reported on the abstracts of tax
lists submitted under section 275.29 that was not reported on the abstracts of
assessment submitted under section 270C.89 for the same year.
The commissioner may, but
need not, make adjustments if the total difference in the tax levied for the
year would be less than $100,000.
EFFECTIVE DATE. This section is effective beginning for property taxes payable
in 2009.
Sec. 32. Minnesota Statutes
2006, section 275.025, subdivision 2, is amended to read:
Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, "commercial-industrial tax
capacity" means the tax capacity of all taxable property classified as
class 3 or class 5(1) under section 273.13, except for electric generation
attached machinery under class 3 and property described in section 473.625. County commercial-industrial tax capacity
amounts are not adjusted for the captured net tax capacity of a tax increment
financing district under section 469.177, subdivision 2, the net tax capacity
of transmission lines deducted from a local government's total net tax capacity
under section 273.425, or fiscal disparities contribution and distribution net
tax capacities under chapter 276A or 473F.
EFFECTIVE DATE. This section is effective beginning for taxes payable in 2009.
Sec. 33. Minnesota Statutes
2007 Supplement, section 275.065, subdivision 1, is amended to read:
Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to
the contrary, on or before September 15 1, each taxing authority,
other than a school district, shall adopt a proposed budget and shall certify
to the county auditor the proposed or, in the case of a town, the final
property tax levy for taxes payable in the following year.
(b) On or before September 30 15, each school district
that has not mutually agreed with its home county to extend this date shall
certify to the county auditor the proposed property tax levy for taxes payable
in the following year. Each school
district that has agreed with its home county to delay the certification of its
proposed property tax levy must certify its proposed property tax levy for the
following year no later than October 7 September 22. The school district shall certify the
proposed levy as:
(1) a specific dollar amount by school district fund, broken down
between voter-approved and non-voter-approved levies and between referendum
market value and tax capacity levies; or
(2) the maximum levy limitation certified by the commissioner of
education according to section 126C.48, subdivision 1.
(c) If the board of estimate and taxation or any similar board that
establishes maximum tax levies for taxing jurisdictions within a first class
city certifies the maximum property tax levies for funds under its jurisdiction
by charter to the county auditor by September 15 1, the city
shall be deemed to have certified its levies for those taxing jurisdictions.
(d) For purposes of this section, "taxing authority" includes
all home rule and statutory cities, towns, counties, school districts, and
special taxing districts as defined in section 275.066. Intermediate school districts that levy a
tax under chapter 124 or 136D, joint powers boards established under sections
123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No.
815, Prinsburg, are also special taxing districts for purposes of this section.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 34. Minnesota Statutes
2007 Supplement, section 275.065, subdivision 1a, is amended to read:
Subd. 1a. Overlapping jurisdictions.
In the case of a taxing authority lying in two or more counties, the
home county auditor shall certify the proposed levy and the proposed local tax
rate to the other county auditor by October 5, unless the home county has
agreed to delay the certification of its proposed property tax levy, in which
case the home county auditor shall certify the proposed levy and the proposed
local tax rate to the other county auditor by October 10 September 5. The home county auditor must estimate the
levy or rate in preparing the notices required in subdivision 3, if the other
county has not certified the appropriate information. If requested by the home county auditor, the other county auditor
must furnish an estimate to the home county auditor.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 35. Minnesota Statutes
2006, section 275.065, subdivision 1c, is amended to read:
Subd. 1c. Levy; shared, merged, consolidated services. If two or more taxing authorities are in the
process of negotiating an agreement for sharing, merging, or consolidating
services between those taxing authorities at the time the proposed levy is to
be certified under subdivision 1, each taxing authority involved in the
negotiation shall certify its total proposed levy as provided in that
subdivision, including a notification to the county auditor of the specific
service involved in the agreement which is not yet finalized. The affected taxing authorities may amend
their proposed levies under subdivision 1 until October September 10
for levy amounts relating only to the specific service involved.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 36. Minnesota Statutes
2006, section 275.065, is amended by adding a subdivision to read:
Subd. 1d. Failure to certify proposed levy. If a taxing authority fails to certify its proposed levy by
the due dates specified under subdivisions 1, 1a, and 1c, the county auditor
shall use the authority's previous year's final levy under section 275.07,
subdivision 1, for purposes of determining its proposed property tax notices
and public advertisements under this section.
EFFECTIVE DATE. This section is effective for notices prepared in 2008, for
property taxes payable in 2009 and thereafter.
Sec. 37. Minnesota Statutes
2007 Supplement, section 275.065, subdivision 3, is amended to read:
Subd. 3. Notice of proposed property taxes.
(a) The county auditor shall prepare and the county treasurer shall
deliver after November 10 October 15 and on or before November
October 24 each year, by first class mail to each taxpayer at the address
listed on the county's current year's assessment roll, a notice of proposed
property taxes.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of
property taxes each taxing authority proposes to collect for taxes payable the
following year. In the case of a town,
or in the case of the state general tax, the final tax amount will be its
proposed tax. In the case of taxing
authorities required to hold a public meeting under subdivision 6, the notice
must clearly state that each taxing authority, including regional library
districts established
under section 134.201, and including the metropolitan taxing districts
as defined in paragraph (i), but excluding all other special taxing districts
and towns, will hold a public meeting to receive public testimony on the
proposed budget and proposed or final property tax levy, or, in case of a
school district, on the current budget and proposed property tax levy. It must clearly state the time and place of
each taxing authority's meeting, a telephone number for the taxing authority
that taxpayers may call if they have questions related to the notice, and an
address where comments will be received by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section
273.11, and used for computing property taxes payable in the following year and
for taxes payable in the current year as each appears in the records of the
county assessor on November October 1 of the current year; and,
in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice
must clearly inform taxpayers of the years to which the market values apply and
that the values are final values;
(2) the items listed below, shown separately by county, city or town,
and state general tax, net of the residential and agricultural homestead credit
under section 273.1384, voter approved school levy, other local school levy,
and the sum of the special taxing districts, and as a total of all taxing
authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake
improvement district as defined under sections 103B.501 to 103B.581, the amount
attributable for that purpose must be separately stated from the remaining
county levy amount.
In the case of a town or the state general tax, the final tax shall
also be its proposed tax unless the town changes its levy at a special town
meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a
referendum will be held in the school district at the November general
election, the county auditor must note next to the school district's proposed
amount that a referendum is pending and that, if approved by the voters, the
tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the levy for Minneapolis
Park and Recreation shall be listed separately from the remaining amount of the
city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately
from the remaining amount of the city's levy.
In the case of Ramsey County, any amount levied under section 134.07 may
be listed separately from the remaining amount of the county's levy. In the case of a parcel where tax increment
or the fiscal disparities areawide tax under chapter 276A or 473F applies, the
proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not
included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the
current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads
qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the
deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do
not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are
certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday
after the first Monday in November of the levy year as provided under section
275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural
disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing
authority that become final after the date the proposed taxes are certified;
and
(6) the contamination tax imposed on properties which received market
value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor
to prepare or the county treasurer to deliver the notice as required in this
section does not invalidate the proposed or final tax levy or the taxes payable
pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the
property as nonhomestead, and satisfactory documentation is provided to the
county assessor by the applicable deadline, and the property qualifies for the
homestead classification in that assessment year, the assessor shall reclassify
the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for
lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to
each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of
the property.
The notice must be mailed or posted by the taxpayer by November
October 27 or within three days of receipt of the notice, whichever is
later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the
premises to which the notice must be mailed in order to fulfill the
requirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and 6,
"metropolitan special taxing districts" means the following taxing
districts in the seven-county metropolitan area that levy a property tax for
any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249,
473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or
473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail
authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
Washington under chapter 398A shall be included with the appropriate county's
levy and shall be discussed at that county's public hearing.
(j) The governing body of a county, city, or school district may, with
the consent of the county board, include supplemental information with the
statement of proposed property taxes about the impact of state aid increases or
decreases on property tax increases or decreases and on the level of services
provided in the affected jurisdiction.
This supplemental information may include information for the following
year, the current year, and for as many consecutive preceding years as deemed
appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator
for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation
and local services that the governing body of the county, city, or school
district may deem appropriate to include.
The information may be presented using tables, written narrative, and
graphic representations and may contain instruction toward further sources of
information or opportunity for comment.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 38. Minnesota Statutes
2006, section 275.065, is amended by adding a subdivision to read:
Subd. 3b. Supplemental notice of proposed levy increases. (a) If a city that has a population of
more than 2,500 or a county proposes a levy that would cause a levy plus aid
increase greater than the threshold increase calculated under paragraph (b), it
shall prepare and deliver by first class mail a supplemental proposed property
tax notice to each property taxpayer in the taxing jurisdiction, as described
in this subdivision.
(b) The threshold increase in the proposed property tax levy plus aid
is equal to the levy plus aid amount in the previous year, multiplied by the
sum of (i) one percent, (ii) the percentage growth, if any, in the population
in the taxing jurisdiction for the most recent available year, (iii) the
percentage increase in the total market value in the taxing jurisdiction due to
new construction of commercial and industrial property, and (iv) the percentage
increase in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments as prepared by the United
States Department of Commerce for the most recent 12-month period ending March
of the levy year.
(c) The supplemental proposed notice must show the taxing
jurisdiction's (1) levy plus aid amount for the previous year, (2) its
threshold levy plus aid increase indicating that this increase is calculated to
reflect reasonable growth adjusting for population increases, increased demand
from new business, and inflation, (3) the aid amount corresponding to the
proposed levy year, (4) the proposed property tax increase, and (5) the amount
the proposed increase in levy plus aid exceeds the threshold increase. The notice must contain a description of why
the jurisdiction needs to raise property taxes above the threshold amount and
how the taxing jurisdiction plans to spend the additional revenue.
(d) For purposes of this subdivision, "aid" means county
program aid under section 477A.0124 or local government aid under section
477A.013.
EFFECTIVE DATE. This section is effective for taxes payable in 2009 and
thereafter.
Sec. 39. Minnesota Statutes
2006, section 275.065, subdivision 6, is amended to read:
Subd. 6. Public hearing; adoption of budget and levy. (a) For purposes of this section, the
following terms shall have the meanings given:
(1) "Initial hearing" means the first and primary hearing
held to discuss the taxing authority's proposed budget and proposed property
tax levy for taxes payable in the following year, or, for school districts, the
current budget and the proposed property tax levy for taxes payable in the
following year.
(2) "Continuation hearing" means a hearing held to complete
the initial hearing, if the initial hearing is not completed on its scheduled
date.
(3) "Subsequent hearing" means the hearing held to adopt the
taxing authority's final property tax levy, and, in the case of taxing
authorities other than school districts, the final budget, for taxes payable in
the following year.
(b) Between November 29 9 and December 20 1,
the governing bodies of a city that has a population over 500, county,
metropolitan special taxing districts as defined in subdivision 3, paragraph
(i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy
for taxes payable in the following year, and the governing body of the school
district shall hold an initial public hearing to review its current budget and
proposed property tax levy for taxes payable in the following year. The metropolitan special taxing districts
shall be required to hold only a single joint initial public hearing, the
location of which will be determined by the affected metropolitan
agencies. A city, county, metropolitan
special taxing district as defined in subdivision 3, paragraph (i), regional
library district established under section 134.201, or school district is not
required to hold a public hearing under this subdivision unless its proposed
property tax levy for taxes payable in the following year, as certified under
subdivision 1, has increased over its final property tax levy for taxes payable
in the current year by a percentage that is greater than the percentage
increase in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of
Economic Analysts of the United States Department of Commerce for the 12-month
period ending March 31 of the current year.
(c) The initial hearing must be held after 5:00 p.m. if scheduled on a
day other than Saturday. No initial
hearing may be held on a Sunday.
(d) At the initial hearing under this subdivision, the percentage
increase in property taxes proposed by the taxing authority, if any, and the
specific purposes for which property tax revenues are being increased must be
discussed. During the discussion, the
governing body shall hear comments regarding a proposed increase and explain
the reasons for the proposed increase.
The public shall be allowed to speak and to ask questions. At the public hearing, the school district
must also provide and discuss information on the distribution of its revenues
by revenue source, and the distribution of its spending by program area.
(e) If the initial hearing is not completed on its scheduled date, the
taxing authority must announce, prior to adjournment of the hearing, the date,
time, and place for the continuation of the hearing. The continuation hearing must be held at least five business days
but no more than 14 business days after the initial hearing. A continuation hearing may not be held later
than December 20 except as provided in paragraphs (f) and (g). A continuation hearing must be held after
5:00 p.m. if scheduled on a day other than Saturday. No continuation hearing may be held on a Sunday.
(f) The governing body of a county shall hold its initial hearing on
the first second Thursday in December November each
year, and may hold additional initial hearings on other dates before December 20
1 if necessary for the convenience of county residents. If the county needs a continuation of its
hearing, the continuation hearing shall be held on the third Tuesday in December. If the third Tuesday in December falls on
December 21, the county's continuation hearing shall be held on Monday,
December 20 November.
(g) The metropolitan special taxing districts shall hold a joint
initial public hearing on the first Wednesday of December. A continuation hearing, if necessary, shall
be held on the second Wednesday of December even if that second Wednesday is
after December 10.
(h) The county auditor shall provide for the coordination of initial and
continuation hearing dates for all school districts and cities within the
county to prevent conflicts under clauses (i) and (j).
(i) By August 10, each school board and the board of the regional
library district shall certify to the county auditors of the counties in which
the school district or regional library district is located the dates on which
it elects to hold its initial hearing and any continuation hearing. If a school board or regional library district
does not certify these dates by August 10, the auditor will assign the initial
and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation
hearing dates of the county or the metropolitan special taxing districts.
(j) By August 20, the county auditor shall notify the clerks of the
cities within the county of the dates on which school districts and regional
library districts have elected to hold their initial and continuation
hearings. At the time a city certifies
its proposed levy under subdivision 1 it shall certify the dates on which it
elects to hold its initial hearing and any continuation hearing. Until September 15, the first and
second Mondays Monday of December are is reserved
for the use of the cities. If a city
does not certify its hearing dates by September 15, the auditor shall assign
the initial and continuation hearing dates.
The dates elected or assigned for the initial hearing must not conflict
with the initial hearing dates of the county, metropolitan special taxing districts,
regional library districts, or school districts within which the city is
located. To the extent possible, the
dates of the city's continuation hearing should not conflict with the
continuation hearing dates of the county, metropolitan special taxing
districts, regional library districts, or school districts within which the
city is located. This paragraph does
not apply to cities of 500 population or less.
(k) The county initial hearing date and the city, metropolitan special
taxing district, regional library district, and school district initial hearing
dates must be designated on the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
(l) At a subsequent hearing, each county, school district, city over
500 population, and metropolitan special taxing district may amend its proposed
property tax levy and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and
must adopt a final budget at the subsequent hearing. The final property tax levy must be adopted prior to adopting the
final budget. A school district is not
required to adopt its final budget at the subsequent hearing. The subsequent hearing of a taxing authority
must be held on a date subsequent to the date of the taxing authority's initial
public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following
the continuation hearing or on a date subsequent to the continuation
hearing. The subsequent hearing may be
held at a regularly scheduled board or council meeting or at a special meeting
scheduled for the purposes of the subsequent hearing. The subsequent hearing of a taxing authority does not have to be
coordinated by the county auditor to prevent a conflict with an initial
hearing, a continuation hearing, or a subsequent hearing of any other taxing
authority. All subsequent hearings must
be held prior to five working days after December 20 of the levy year. The date, time, and place of the subsequent
hearing must be announced at the initial public hearing or at the continuation
hearing.
(m) The property tax levy certified under section 275.07 by a city of
any population, county, metropolitan special taxing district, regional library
district, or school district must not exceed the proposed levy determined under
subdivision 1, except by an amount up to the sum of the following amounts:
(1) the amount of a school district levy whose voters approved a
referendum to increase taxes under section 123B.63, subdivision 3, or 126C.17,
subdivision 9, after the proposed levy was certified;
(2) the amount of a city or county levy approved by the voters after
the proposed levy was certified;
(3) the amount of a levy to pay principal and interest on bonds
approved by the voters under section 475.58 after the proposed levy was
certified;
(4) the amount of a levy to pay costs due to a natural disaster
occurring after the proposed levy was certified, if that amount is approved by
the commissioner of revenue under subdivision 6a;
(5) the amount of a levy to pay tort judgments against a taxing
authority that become final after the proposed levy was certified, if the
amount is approved by the commissioner of revenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to the taxing
authority by the commissioner of education or the commissioner of revenue after
the proposed levy was certified; and
(7) the amount required under section 126C.55.
(n) This subdivision does not apply to towns and special taxing
districts other than regional library districts and metropolitan special taxing
districts.
(o) Notwithstanding the requirements of this section, the employer is
required to meet and negotiate over employee compensation as provided for in
chapter 179A.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 40. Minnesota Statutes
2006, section 275.065, subdivision 8, is amended to read:
Subd. 8. Hearing. Notwithstanding
any other provision of law, Ramsey County, the city of St. Paul, and
Independent School District No. 625 are authorized to and shall hold their
initial public hearing jointly. The
hearing must be held on during the week of the second Tuesday of December
November each year. The
advertisement required in subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the
requirements of this section.
Ramsey County is authorized to hold an additional initial hearing or
hearings as provided under this section, provided that any additional hearings
must not conflict with the initial or continuation hearing dates of the other
taxing districts. However, if Ramsey
County elects not to hold such additional initial hearing or hearings, the
joint initial hearing required by this subdivision must be held in a St. Paul
location convenient to residents of Ramsey County.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter,
except that proposed notices and hearings held in 2008 may be held during the
week of the second Tuesday of December.
Sec. 41. Minnesota Statutes
2006, section 275.065, subdivision 9, is amended to read:
Subd. 9. Aitkin County and school district hearing. Notwithstanding any other law, Aitkin County
and Independent School District No. 1, and the city of Aitkin, or any two of
them, may hold their initial public hearing jointly. The hearing must be held on the second Tuesday of December
November each year. The
advertisement required in subdivision 5a may be a joint advertisement. The hearing is otherwise subject to the requirements
of this section.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 42. Minnesota Statutes
2006, section 275.065, subdivision 10, is amended to read:
Subd. 10. Nobles County; joint initial public hearing. Notwithstanding any other law, Nobles
County, the city of Worthington, and Independent School District No. 518,
Worthington, or any two of them, may hold their initial public hearing
jointly. The hearing must be held on
the second Tuesday of December November each year. The advertisement required in subdivision 5a
may be a joint advertisement. The
hearing is otherwise subject to the requirements of this section.
EFFECTIVE DATE. This section is effective for proposed notices and hearings
held in 2009 and thereafter, for property taxes payable in 2010 and thereafter.
Sec. 43. Minnesota Statutes
2006, section 282.08, is amended to read:
282.08 APPORTIONMENT OF
PROCEEDS TO TAXING DISTRICTS.
The net proceeds from the sale or rental of any parcel of forfeited
land, or from the sale of products from the forfeited land, must be apportioned
by the county auditor to the taxing districts interested in the land, as
follows:
(1) the portion required to pay any amounts included in the appraised
value under section 282.01, subdivision 3, as representing increased value due
to any public improvement made after forfeiture of the parcel to the state, but
not exceeding the amount certified by the clerk of the municipality
appropriate governmental authority must be apportioned to the municipal
governmental subdivision entitled to it;
(2) the portion required to pay any amount included in the appraised
value under section 282.019, subdivision 5, representing increased value due to
response actions taken after forfeiture of the parcel to the state, but not
exceeding the amount of expenses certified by the Pollution Control Agency or
the commissioner of agriculture, must be apportioned to the agency or the
commissioner of agriculture and deposited in the fund from which the expenses
were paid;