as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; providing property tax 1.3 classification reform; providing for state aids to 1.4 local government; proposing a separate property tax 1.5 refund for farm homesteads; increasing the maximum 1.6 property tax refund amounts; providing for property 1.7 tax deferral for senior citizens; appropriating money; 1.8 amending Minnesota Statutes 1996, sections 124A.23, 1.9 subdivision 1; 270B.12, by adding a subdivision; 1.10 273.13, subdivisions 23, 24, 25, and by adding a 1.11 subdivision; 273.1398, subdivisions 1a and 8; 275.065, 1.12 subdivision 3; 276.04, subdivision 2; 290A.03, 1.13 subdivisions 6, 13, and by adding a subdivision; 1.14 290A.04, subdivisions 1, 2, 2a, 6, and by adding a 1.15 subdivision; 477A.011, subdivision 34, and by adding 1.16 subdivisions; 477A.013, subdivisions 1, 8, and 9; 1.17 477A.03, subdivision 2; proposing coding for new law 1.18 as Minnesota Statutes, chapter 290B; repealing 1.19 Minnesota Statutes 1996, sections 273.13, subdivision 1.20 32; and 477A.011, subdivisions 35, 36, and 37; Laws 1.21 1995, chapter 264, article 4, as amended. 1.22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.23 ARTICLE 1 1.24 PROPERTY TAX CLASSIFICATION REFORM 1.25 Section 1. Minnesota Statutes 1996, section 273.13, is 1.26 amended by adding a subdivision to read: 1.27 Subd. 22a. [RESIDENTIAL NONHOMESTEAD.] Class 1d includes: 1.28 (1) residential real estate containing less than four 1.29 units; 1.30 (2) seasonal recreational residential property not used for 1.31 commercial purposes; 1.32 (3) manufactured homes not classified under any other 1.33 provision; and 2.1 (4) a dwelling, garage, and surrounding one acre of 2.2 property on a nonhomestead farm classified under subdivision 23, 2.3 paragraph (b). 2.4 Class 1d property has the same class rates as class 1a 2.5 property under subdivision 22. 2.6 Sec. 2. Minnesota Statutes 1996, section 273.13, 2.7 subdivision 23, is amended to read: 2.8 Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural 2.9 land including any improvements that is homesteaded. The market 2.10 value of the house and garage and immediately surrounding one 2.11 acre of land has the same class rates as class 1a property under 2.12 subdivision 22. The value of the remaining land including 2.13 improvements up to $115,000 has a net class rate of .45 percent 2.14 of market value and a gross class rate of 1.75 percent of market 2.15 value. The remaining value of class 2a property over $115,000 2.16 of market value that does not exceed 320 acres has a net class 2.17 rate of one percent of market value, and a gross class rate of 2.18 2.25 percent of market value. The remaining property over the 2.19 $115,000 market value in excess of 320 acres has a class rate of 2.201.51.25 percent of market value, and a gross class rate of 2.25 2.21 percent of market value. 2.22 (b) Class 2b property is (1) real estate, rural in 2.23 character and used exclusively for growing trees for timber, 2.24 lumber, and wood and wood products; (2) real estate that is not 2.25 improved with a structure and is used exclusively for growing 2.26 trees for timber, lumber, and wood and wood products, if the 2.27 owner has participated or is participating in a cost-sharing 2.28 program for afforestation, reforestation, or timber stand 2.29 improvement on that particular property, administered or 2.30 coordinated by the commissioner of natural resources; (3) real 2.31 estate that is nonhomestead agricultural land; or (4) a landing 2.32 area or public access area of a privately owned public use 2.33 airport. Class 2b property has a net class rate of1.51.25 2.34 percent of market value, and a gross class rate of 2.25 percent 2.35 of market value. 2.36 (c) Agricultural land as used in this section means 3.1 contiguous acreage of ten acres or more, primarily used during 3.2 the preceding year for agricultural purposes. Agricultural use 3.3 may include pasture, timber, waste, unusable wild land, and land 3.4 included in state or federal farm or conservation programs. 3.5 "Agricultural purposes" as used in this section means the 3.6 raising or cultivation of agricultural products. Land enrolled 3.7 in the Reinvest in Minnesota program under sections 103F.505 to 3.8 103F.531 or the federal Conservation Reserve Program as 3.9 contained in Public Law Number 99-198, and consisting of a 3.10 minimum of ten contiguous acres, shall be classified as 3.11 agricultural. Agricultural classification for property shall be 3.12 determined with respect to the use of the whole parcel, and not 3.13 based upon the market value of any residential structures on the 3.14 parcel or contiguous parcels under the same ownership. 3.15 (d) Real estate of less than ten acres used principally for 3.16 raising or cultivating agricultural products, shall be 3.17 considered as agricultural land, if it is not used primarily for 3.18 residential purposes. 3.19 (e) The term "agricultural products" as used in this 3.20 subdivision includes: 3.21 (1) livestock, dairy animals, dairy products, poultry and 3.22 poultry products, fur-bearing animals, horticultural and nursery 3.23 stock described in sections 18.44 to 18.61, fruit of all kinds, 3.24 vegetables, forage, grains, bees, and apiary products by the 3.25 owner; 3.26 (2) fish bred for sale and consumption if the fish breeding 3.27 occurs on land zoned for agricultural use; 3.28 (3) the commercial boarding of horses if the boarding is 3.29 done in conjunction with raising or cultivating agricultural 3.30 products as defined in clause (1); 3.31 (4) property which is owned and operated by nonprofit 3.32 organizations used for equestrian activities, excluding racing; 3.33 and 3.34 (5) game birds and waterfowl bred and raised for use on a 3.35 shooting preserve licensed under section 97A.115. 3.36 (f) If a parcel used for agricultural purposes is also used 4.1 for commercial or industrial purposes, including but not limited 4.2 to: 4.3 (1) wholesale and retail sales; 4.4 (2) processing of raw agricultural products or other goods; 4.5 (3) warehousing or storage of processed goods; and 4.6 (4) office facilities for the support of the activities 4.7 enumerated in clauses (1), (2), and (3), 4.8 the assessor shall classify the part of the parcel used for 4.9 agricultural purposes as class 1b, 2a, or 2b, whichever is 4.10 appropriate, and the remainder in the class appropriate to its 4.11 use. The grading, sorting, and packaging of raw agricultural 4.12 products for first sale is considered an agricultural purpose. 4.13 A greenhouse or other building where horticultural or nursery 4.14 products are grown that is also used for the conduct of retail 4.15 sales must be classified as agricultural if it is primarily used 4.16 for the growing of horticultural or nursery products from seed, 4.17 cuttings, or roots and occasionally as a showroom for the retail 4.18 sale of those products. Use of a greenhouse or building only 4.19 for the display of already grown horticultural or nursery 4.20 products does not qualify as an agricultural purpose. 4.21 The assessor shall determine and list separately on the 4.22 records the market value of the homestead dwelling and the one 4.23 acre of land on which that dwelling is located. If any farm 4.24 buildings or structures are located on this homesteaded acre of 4.25 land, their market value shall not be included in this separate 4.26 determination. 4.27 (g) To qualify for classification under paragraph (b), 4.28 clause (4), a privately owned public use airport must be 4.29 licensed as a public airport under section 360.018. For 4.30 purposes of paragraph (b), clause (4), "landing area" means that 4.31 part of a privately owned public use airport properly cleared, 4.32 regularly maintained, and made available to the public for use 4.33 by aircraft and includes runways, taxiways, aprons, and sites 4.34 upon which are situated landing or navigational aids. A landing 4.35 area also includes land underlying both the primary surface and 4.36 the approach surfaces that comply with all of the following: 5.1 (i) the land is properly cleared and regularly maintained 5.2 for the primary purposes of the landing, taking off, and taxiing 5.3 of aircraft; but that portion of the land that contains 5.4 facilities for servicing, repair, or maintenance of aircraft is 5.5 not included as a landing area; 5.6 (ii) the land is part of the airport property; and 5.7 (iii) the land is not used for commercial or residential 5.8 purposes. 5.9 The land contained in a landing area under paragraph (b), clause 5.10 (4), must be described and certified by the commissioner of 5.11 transportation. The certification is effective until it is 5.12 modified, or until the airport or landing area no longer meets 5.13 the requirements of paragraph (b), clause (4). For purposes of 5.14 paragraph (b), clause (4), "public access area" means property 5.15 used as an aircraft parking ramp, apron, or storage hangar, or 5.16 an arrival and departure building in connection with the airport. 5.17 Sec. 3. Minnesota Statutes 1996, section 273.13, 5.18 subdivision 24, is amended to read: 5.19 Subd. 24. [CLASS 3.] (a)Commercial and industrial5.20property and utility real and personalBusiness property, except 5.21 class 5 property as identified in subdivision 31, clause (1), is 5.22 class 3a and consists of commercial property, industrial 5.23 property, railroad operating property, and utility real and 5.24 personal property. 5.25ItCommercial property has a class rate ofthreetwo 5.26 percent of the first $100,000 of market valuefor taxes payable5.27in 1993 and thereafter,and5.064.6 percent of the market value 5.28 over $100,000. Commercial property includes all business 5.29 property that is not industrial, utility, or railroad operating 5.30 property. 5.31 Industrial property has a class rate of two percent of the 5.32 first $100,000 of market value and 3.3 percent of the market 5.33 value over $100,000. For purposes of this subdivision, 5.34 "industrial property" means property used in manufacturing, 5.35 milling, converting, producing, processing, or fabricating 5.36 tangible property. In the case of property which is used 6.1 partially for commercial and partially for industrial purposes, 6.2 each portion of the property's market value must be separately 6.3 assigned a class rate consistent with its use, provided that not 6.4 more than $100,000 of the commercial property's market value may 6.5 receive the preferential two percent rate. 6.6 Railroad operating property has the same class rate as 6.7 industrial property. 6.8 Utility real and personal property has a class rate of two 6.9 percent on the first $100,000 of market value and 4.6 percent of 6.10 the market value over $100,000. 6.11 In the case of state-assessed commercial, industrial,6.12andor utility property owned by one person or entity, only one 6.13 parcel has a reduced class rate on the first $100,000 of market 6.14 value. In the case of other commercial, industrial, andor 6.15 utility property owned by one person or entity, only one parcel 6.16 in eachcountycity or town has a reduced class rate on the 6.17 first $100,000 of market value, except that: 6.18 (1) if the market value of the parcel is less than 6.19 $100,000, and additional parcels are owned by the same person or 6.20 entity in the same city or townwithin that county, the reduced 6.21 class rate shall be applied up to a combined total market value 6.22 of $100,000 for all parcels owned by the same person or entity 6.23 in the same city or townwithin the county; 6.24 (2) in the case of grain, fertilizer, and feed elevator 6.25 facilities, as defined in section 18C.305, subdivision 1, or 6.26 232.21, subdivision 8, the limitation to one parcel per owner 6.27 percountycity or town for the reduced class rate shall not 6.28 apply, but there shall be a limit of $100,000 of preferential 6.29 value per site of contiguous parcels owned by the same person or 6.30 entity. Only the value of the elevator portion of each parcel 6.31 shall qualify for treatment under this clause. For purposes of 6.32 this subdivision, contiguous parcels include parcels separated 6.33 only by a railroad or public road right-of-way; and 6.34 (3) in the case of property owned by a nonprofit charitable 6.35 organization that qualifies for tax exemption under section 6.36 501(c)(3) of the Internal Revenue Code of 1986, as amended 7.1 through December 31, 1993, if the property is used as a business 7.2 incubator, the limitation to one parcel per owner percounty7.3 city or town for the reduced class rate shall not apply, 7.4 provided that the reduced rate applies only to the first 7.5 $100,000 of value per parcel owned by the organization. As used 7.6 in this clause, a "business incubator" is a facility used for 7.7 the development of nonretail businesses, offering access to 7.8 equipment, space, services, and advice to the tenant businesses, 7.9 for the purpose of encouraging economic development, 7.10 diversification, and job creation in the area served by the 7.11 organization. 7.12 To receive the reduced class rate on additional parcels 7.13 under clause (1), (2), or (3), the taxpayer must notify the 7.14 county assessor that the taxpayer owns more than one parcel that 7.15 qualifies under clause (1), (2), or (3). 7.16(b) Employment property defined in section 469.166, during7.17the period provided in section 469.170, shall constitute class7.183b and has a class rate of 2.3 percent of the first $50,000 of7.19market value and 3.6 percent of the remainder, except that for7.20employment property located in a border city enterprise zone7.21designated pursuant to section 469.168, subdivision 4, paragraph7.22(c), the class rate of the first $100,000 of market value and7.23the class rate of the remainder is determined under paragraph7.24(a), unless the governing body of the city designated as an7.25enterprise zone determines that a specific parcel shall be7.26assessed pursuant to the first clause of this sentence. The7.27governing body may provide for assessment under the first clause7.28of the preceding sentence only for property which is located in7.29an area which has been designated by the governing body for the7.30receipt of tax reductions authorized by section 469.171,7.31subdivision 1.7.32 (b) Employment property defined in section 469.166, during 7.33 the period provided in section 469.170, and employment property 7.34 defined in section 469.168, subdivision 4, paragraph (c), shall 7.35 constitute class 3b and has a class rate of two percent of the 7.36 first $100,000 of market value and 3.3 percent of the remainder. 8.1 (c) Structures which are (i) located on property classified 8.2 as class 3a, (ii) constructed under an initial building permit 8.3 issued after January 2, 1996, (iii) located in a transit zone as 8.4 defined under section 473.3915, subdivision 3, (iv) located 8.5 within the boundaries of a school district, and (v) not 8.6 primarily used for retail or transient lodging purposes, shall 8.7 have a class rate of four percent on that portion of the market 8.8 value in excess of $100,000 and any market value under $100,000 8.9 that does not qualify for the three percent class rate under 8.10 paragraph (a). As used in item (v), a structure is primarily 8.11 used for retail or transient lodging purposes if over 50 percent 8.12 of its square footage is used for those purposes. The four 8.13 percent rate shall also apply to improvements to existing 8.14 structures that meet the requirements of items (i) to (v) if the 8.15 improvements are constructed under an initial building permit 8.16 issued after January 2, 1996, even if the remainder of the 8.17 structure was constructed prior to January 2, 1996. For the 8.18 purposes of this paragraph, a structure shall be considered to 8.19 be located in a transit zone if any portion of the structure 8.20 lies within the zone. If any property once eligible for 8.21 treatment under this paragraph ceases to remain eligible due to 8.22 revisions in transit zone boundaries, the property shall 8.23 continue to receive treatment under this paragraph for a period 8.24 of three years. 8.25 Sec. 4. Minnesota Statutes 1996, section 273.13, 8.26 subdivision 25, is amended to read: 8.27 Subd. 25. [CLASS 4.] (a) Class 4a is residential real 8.28 estate containing four or more units and used or held for use by 8.29 the owner or by the tenants or lessees of the owner as a 8.30 residence for rental periods of 30 days or more. Class 4a also 8.31 includes hospitals licensed under sections 144.50 to 144.56, 8.32 other than hospitals exempt under section 272.02, and contiguous 8.33 property used for hospital purposes, without regard to whether 8.34 the property has been platted or subdivided. Class 4a property 8.35 in a city with a population of 5,000 or less, that is (1) 8.36 located outside of the metropolitan area, as defined in section 9.1 473.121, subdivision 2, or outside any county contiguous to the 9.2 metropolitan area, and (2) whose city boundary is at least 15 9.3 miles from the boundary of any city with a population greater 9.4 than 5,000 has a class rate of 2.3 percent of market valuefor9.5taxes payable in 1996 and thereafter. All other class 4a 9.6 property has a class rate of 3.4 percent of market valuefor9.7taxes payable in 1996 and thereafter. For purposes of this 9.8 paragraph, population has the same meaning given in section 9.9 477A.011, subdivision 3. 9.10(b) Class 4b includes:9.11(1) residential real estate containing less than four9.12units, other than seasonal residential, and recreational;9.13(2) manufactured homes not classified under any other9.14provision;9.15(3) a dwelling, garage, and surrounding one acre of9.16property on a nonhomestead farm classified under subdivision 23,9.17paragraph (b).9.18Class 4b property has a class rate of 2.8 percent of market9.19value for taxes payable in 1992, 2.5 percent of market value for9.20taxes payable in 1993, and 2.3 percent of market value for taxes9.21payable in 1994 and thereafter.9.22(c)(b) Class 4c property includes: 9.23 (1) a structure that is: 9.24 (i) situated on real property that is used for housing for 9.25 the elderly or for low- and moderate-income families as defined 9.26 in Title II, as amended through December 31, 1990, of the 9.27 National Housing Act or the Minnesota housing finance agency law 9.28 of 1971, as amended, or rules promulgated by the agency and 9.29 financed by a direct federal loan or federally insured loan made 9.30 pursuant to Title II of the Act; or 9.31 (ii) situated on real property that is used for housing the 9.32 elderly or for low- and moderate-income families as defined by 9.33 the Minnesota housing finance agency law of 1971, as amended, or 9.34 rules adopted by the agency pursuant thereto and financed by a 9.35 loan made by the Minnesota housing finance agency pursuant to 9.36 the provisions of the act. 10.1 This clause applies only to property of a nonprofit or 10.2 limited dividend entity. Property is classified as class 4c 10.3 under this clause for 15 years from the date of the completion 10.4 of the original construction or substantial rehabilitation, or 10.5 for the original term of the loan. 10.6 (2) a structure that is: 10.7 (i) situated upon real property that is used for housing 10.8 lower income families or elderly or handicapped persons, as 10.9 defined in section 8 of the United States Housing Act of 1937, 10.10 as amended; and 10.11 (ii) owned by an entity which has entered into a housing 10.12 assistance payments contract under section 8 which provides 10.13 assistance for 100 percent of the dwelling units in the 10.14 structure, other than dwelling units intended for management or 10.15 maintenance personnel. Property is classified as class 4c under 10.16 this clause for the term of the housing assistance payments 10.17 contract, including all renewals, or for the term of its 10.18 permanent financing, whichever is shorter; and 10.19 (3) a qualified low-income building as defined in section 10.20 42(c)(2) of the Internal Revenue Code of 1986, as amended 10.21 through December 31, 1990, that (i) receives a low-income 10.22 housing credit under section 42 of the Internal Revenue Code of 10.23 1986, as amended through December 31, 1990; or (ii) meets the 10.24 requirements of that section and receives public financing, 10.25 except financing provided under sections 469.174 to 469.179, 10.26 which contains terms restricting the rents; or (iii) meets the 10.27 requirements of section 273.1317. Classification pursuant to 10.28 this clause is limited to a term of 15 years. The public 10.29 financing received must be from at least one of the following 10.30 sources: government issued bonds exempt from taxes under 10.31 section 103 of the Internal Revenue Code of 1986, as amended 10.32 through December 31, 1993, the proceeds of which are used for 10.33 the acquisition or rehabilitation of the building; programs 10.34 under section 221(d)(3), 202, or 236, of Title II of the 10.35 National Housing Act; rental housing program funds under Section 10.36 8 of the United States Housing Act of 1937 or the market rate 11.1 family graduated payment mortgage program funds administered by 11.2 the Minnesota housing finance agency that are used for the 11.3 acquisition or rehabilitation of the building; public financing 11.4 provided by a local government used for the acquisition or 11.5 rehabilitation of the building, including grants or loans from 11.6 federal community development block grants, HOME block grants, 11.7 or residential rental bonds issued under chapter 474A; or other 11.8 rental housing program funds provided by the Minnesota housing 11.9 finance agency for the acquisition or rehabilitation of the 11.10 building. 11.11 For all properties described in clauses (1), (2), and (3) 11.12 and in paragraph(d)(c), the market value determined by the 11.13 assessor must be based on the normal approach to value using 11.14 normal unrestricted rents unless the owner of the property 11.15 elects to have the property assessed under Laws 1991, chapter 11.16 291, article 1, section 55. If the owner of the property elects 11.17 to have the market value determined on the basis of the actual 11.18 restricted rents, as provided in Laws 1991, chapter 291, article 11.19 1, section 55, the property will be assessed at the rate 11.20 provided for class 1d or class 4aor class 4b property, as 11.21 appropriate. Properties described in clauses (1)(ii), (3), and 11.22 (4) may apply to the assessor for valuation under Laws 1991, 11.23 chapter 291, article 1, section 55. The land on which these 11.24 structures are situated has the class rate given inparagraph11.25(b)subdivision 22a if the structure contains fewer than four 11.26 units, and the class rate given in paragraph (a) if the 11.27 structure contains four or more units. This clause applies only 11.28 to the property of a nonprofit or limited dividend entity. 11.29 (4) a parcel of land, not to exceed one acre, and its 11.30 improvements or a parcel of unimproved land, not to exceed one 11.31 acre, if it is owned by a neighborhood real estate trust and at 11.32 least 60 percent of the dwelling units, if any, on all land 11.33 owned by the trust are leased to or occupied by lower income 11.34 families or individuals. This clause does not apply to any 11.35 portion of the land or improvements used for nonresidential 11.36 purposes. For purposes of this clause, a lower income family is 12.1 a family with an income that does not exceed 65 percent of the 12.2 median family income for the area, and a lower income individual 12.3 is an individual whose income does not exceed 65 percent of the 12.4 median individual income for the area, as determined by the 12.5 United States Secretary of Housing and Urban Development. For 12.6 purposes of this clause, "neighborhood real estate trust" means 12.7 an entity which is certified by the governing body of the 12.8 municipality in which it is located to have the following 12.9 characteristics: 12.10 (a) it is a nonprofit corporation organized under chapter 12.11 317A; 12.12 (b) it has as its principal purpose providing housing for 12.13 lower income families in a specific geographic community 12.14 designated in its articles or bylaws; 12.15 (c) it limits membership with voting rights to residents of 12.16 the designated community; and 12.17 (d) it has a board of directors consisting of at least 12.18 seven directors, 60 percent of whom are members with voting 12.19 rights and, to the extent feasible, 25 percent of whom are 12.20 elected by resident members of buildings owned by the trust; and 12.21 (5) except as provided in subdivision 22, paragraph (c), 12.22 real property devoted to temporary and seasonal residential 12.23 occupancy for recreation purposes, including real property 12.24 devoted to temporary and seasonal residential occupancy for 12.25 recreation purposes and not devoted to commercial purposes for 12.26 more than 250 days in the year preceding the year of 12.27 assessment. For purposes of this clause, property is devoted to 12.28 a commercial purpose on a specific day if any portion of the 12.29 property is used for residential occupancy, and a fee is charged 12.30 for residential occupancy. Class 4c also includes commercial 12.31 use real property used exclusively for recreational purposes in 12.32 conjunction with class 4c property devoted to temporary and 12.33 seasonal residential occupancy for recreational purposes, up to 12.34 a total of two acres, provided the property is not devoted to 12.35 commercial recreational use for more than 250 days in the year 12.36 preceding the year of assessment and is located within two miles 13.1 of the class 4c property with which it is used. Class 4c 13.2 property classified in this clause also includes the remainder 13.3 of class 1c resorts. Owners of real property devoted to 13.4 temporary and seasonal residential occupancy for recreation 13.5 purposes and all or a portion of which was devoted to commercial 13.6 purposes for not more than 250 days in the year preceding the 13.7 year of assessment desiring classification as class 1c or 4c, 13.8 must submit a declaration to the assessor designating the cabins 13.9 or units occupied for 250 days or less in the year preceding the 13.10 year of assessment by January 15 of the assessment year. Those 13.11 cabins or units and a proportionate share of the land on which 13.12 they are located will be designated class 1c or 4c as otherwise 13.13 provided. The remainder of the cabins or units and a 13.14 proportionate share of the land on which they are located will 13.15 be designated as class 3a. The first $100,000 of the market 13.16 value of the remainder of the cabins or units and a 13.17 proportionate share of the land on which they are located shall 13.18 haveathe same class rateof three percentas the first 13.19 $100,000 of market value of commercial property under 13.20 subdivision 24, paragraph (a). The owner of property desiring 13.21 designation as class 1c or 4c property must provide guest 13.22 registers or other records demonstrating that the units for 13.23 which class 1c or 4c designation is sought were not occupied for 13.24 more than 250 days in the year preceding the assessment if so 13.25 requested. The portion of a property operated as a (1) 13.26 restaurant, (2) bar, (3) gift shop, and (4) other nonresidential 13.27 facility operated on a commercial basis not directly related to 13.28 temporary and seasonal residential occupancy for recreation 13.29 purposes shall not qualify for class 1c or 4c; 13.30 (6) real property up to a maximum of one acre of land owned 13.31 by a nonprofit community service oriented organization; provided 13.32 that the property is not used for a revenue-producing activity 13.33 for more than six days in the calendar year preceding the year 13.34 of assessment and the property is not used for residential 13.35 purposes on either a temporary or permanent basis. For purposes 13.36 of this clause, a "nonprofit community service oriented 14.1 organization" means any corporation, society, association, 14.2 foundation, or institution organized and operated exclusively 14.3 for charitable, religious, fraternal, civic, or educational 14.4 purposes, and which is exempt from federal income taxation 14.5 pursuant to section 501(c)(3), (10), or (19) of the Internal 14.6 Revenue Code of 1986, as amended through December 31, 1990. For 14.7 purposes of this clause, "revenue-producing activities" shall 14.8 include but not be limited to property or that portion of the 14.9 property that is used as an on-sale intoxicating liquor or 3.2 14.10 percent malt liquor establishment licensed under chapter 340A, a 14.11 restaurant open to the public, bowling alley, a retail store, 14.12 gambling conducted by organizations licensed under chapter 349, 14.13 an insurance business, or office or other space leased or rented 14.14 to a lessee who conducts a for-profit enterprise on the 14.15 premises. Any portion of the property which is used for 14.16 revenue-producing activities for more than six days in the 14.17 calendar year preceding the year of assessment shall be assessed 14.18 as class 3a. The use of the property for social events open 14.19 exclusively to members and their guests for periods of less than 14.20 24 hours, when an admission is not charged nor any revenues are 14.21 received by the organization shall not be considered a 14.22 revenue-producing activity; 14.23 (7) post-secondary student housing of not more than one 14.24 acre of land that is owned by a nonprofit corporation organized 14.25 under chapter 317A and is used exclusively by a student 14.26 cooperative, sorority, or fraternity for on-campus housing or 14.27 housing located within two miles of the border of a college 14.28 campus; and 14.29 (8) manufactured home parks as defined in section 327.14, 14.30 subdivision 3. 14.31 Except as otherwise provided in clause (5), class 4c 14.32 property has a class rate of 2.3 percent of market value, except 14.33 that(i) for each parcel of seasonal residential recreational14.34property not used for commercial purposes under clause (5) the14.35first $72,000 of market value on each parcel has a class rate of14.361.75 percent for taxes payable in 1997 and 1.5 percent for taxes15.1payable in 1998 and thereafter, and the market value of each15.2parcel that exceeds $72,000 has a class rate of 2.5 percent, and15.3(ii)manufactured home parks assessed under clause (8) have a 15.4 class rate of two percentfor taxes payable in 1996, and15.5thereafter. 15.6(d)(c) Class 4d property includes: 15.7 (1) a structure that is: 15.8 (i) situated on real property that is used for housing for 15.9 the elderly or for low and moderate income families as defined 15.10 by the Farmers Home Administration; 15.11 (ii) located in a municipality of less than 10,000 15.12 population; and 15.13 (iii) financed by a direct loan or insured loan from the 15.14 Farmers Home Administration. Property is classified under this 15.15 clause for 15 years from the date of the completion of the 15.16 original construction or for the original term of the loan. 15.17 The class rates in paragraph(c)(b), clauses (1), (2), and 15.18 (3) and this clause apply to the properties described in them, 15.19 only in proportion to occupancy of the structure by elderly or 15.20 handicapped persons or low and moderate income families as 15.21 defined in the applicable laws unless construction of the 15.22 structure had been commenced prior to January 1, 1984; or the 15.23 project had been approved by the governing body of the 15.24 municipality in which it is located prior to June 30, 1983; or 15.25 financing of the project had been approved by a federal or state 15.26 agency prior to June 30, 1983. For those properties, 4c or 4d 15.27 classification is available only for those units meeting the 15.28 requirements of section 273.1318. 15.29 Classification under this clause is only available to 15.30 property of a nonprofit or limited dividend entity. 15.31 In the case of a structure financed or refinanced under any 15.32 federal or state mortgage insurance or direct loan program 15.33 exclusively for housing for the elderly or for housing for the 15.34 handicapped, a unit shall be considered occupied so long as it 15.35 is actually occupied by an elderly or handicapped person or, if 15.36 vacant, is held for rental to an elderly or handicapped person. 16.1 (2) For taxes payable in 1992, 1993, and 1994, only, 16.2 buildings and appurtenances, together with the land upon which 16.3 they are located, leased by the occupant under the community 16.4 lending model lease-purchase mortgage loan program administered 16.5 by the Federal National Mortgage Association, provided the 16.6 occupant's income is no greater than 60 percent of the county or 16.7 area median income, adjusted for family size and the building 16.8 consists of existing single family or duplex housing. The lease 16.9 agreement must provide for a portion of the lease payment to be 16.10 escrowed as a nonrefundable down payment on the housing. To 16.11 qualify under this clause, the taxpayer must apply to the county 16.12 assessor by May 30 of each year. The application must be 16.13 accompanied by an affidavit or other proof required by the 16.14 assessor to determine qualification under this clause. 16.15 (3) Qualifying buildings and appurtenances, together with 16.16 the land upon which they are located, leased for a period of up 16.17 to five years by the occupant under a lease-purchase program 16.18 administered by the Minnesota housing finance agency or a 16.19 housing and redevelopment authority authorized under sections 16.20 469.001 to 469.047, provided the occupant's income is no greater 16.21 than 80 percent of the county or area median income, adjusted 16.22 for family size, and the building consists of two or less 16.23 dwelling units. The lease agreement must provide for a portion 16.24 of the lease payment to be escrowed as a nonrefundable down 16.25 payment on the housing. The administering agency shall verify 16.26 the occupants income eligibility and certify to the county 16.27 assessor that the occupant meets the income criteria under this 16.28 paragraph. To qualify under this clause, the taxpayer must 16.29 apply to the county assessor by May 30 of each year. For 16.30 purposes of this section, "qualifying buildings and 16.31 appurtenances" shall be defined as one or two unit residential 16.32 buildings which are unoccupied and have been abandoned and 16.33 boarded for at least six months. 16.34 Class 4d property has a class rate of two percent of market 16.35 value except that property classified under clause (3), shall 16.36 have the same class rate as class 1a property. 17.1(e)(d) Residential rental property that would otherwise be 17.2 assessed as class 4 property under subdivision 22a, clauses (1) 17.3 and (4); paragraph (a);paragraph (b), clauses (1) and (3);17.4 paragraph(c)(b), clause (1), (2), (3), or (4), is assessed at 17.5 the class rate applicable to it under Minnesota Statutes 1988, 17.6 section 273.13, if it is found to be a substandard building 17.7 under section 273.1316. Residential rental property that would 17.8 otherwise be assessed as class 4 property under 17.9 paragraph(d)(c) is assessed at 2.3 percent of market value if 17.10 it is found to be a substandard building under section 273.1316. 17.11(f)(e) Class 4e property consists of the residential 17.12 portion of any structure located within a city that was 17.13 converted from nonresidential use to residential use, provided 17.14 that: 17.15 (1) the structure had formerly been used as a warehouse; 17.16 (2) the structure was originally constructed prior to 1940; 17.17 (3) the conversion was done after December 31, 1995, but 17.18 before January 1, 2003; and 17.19 (4) the conversion involved an investment of at least 17.20 $25,000 per residential unit. 17.21 Class 4e property has a class rate of 2.3 percent, provided 17.22 that a structure is eligible for class 4e classification only in 17.23 the 12 assessment years immediately following the conversion. 17.24 Sec. 5. [TIF GRANTS; APPROPRIATIONS.] 17.25 (a) The commissioner of revenue shall pay grants to 17.26 municipalities for deficits in tax increment financing districts 17.27 caused by the changes in class rates under this article. 17.28 Municipalities must submit applications for the grants in a form 17.29 prescribed by the commissioner by no later than March 1 for 17.30 taxes payable during the calendar year. The maximum grant 17.31 equals the lesser of: 17.32 (1) the reduction in the tax increment financing district's 17.33 revenues derived from increment resulting from the class rate 17.34 reductions under this article; and 17.35 (2) the municipality's total available tax increments, 17.36 including those from previous years, less the amount due during 18.1 the calendar year to pay bonds issued and sold before and 18.2 binding contracts entered into before the day following final 18.3 enactment of this act. 18.4 If the total applications for grants exceed the amount 18.5 available under the appropriation, the commissioner shall 18.6 proportionately reduce the grant for each municipality. These 18.7 grants are available for calendar years 1998, 1999, and 2000. 18.8 (b) $20,000,000 is appropriated to the commissioner of 18.9 revenue for purposes of this section. This appropriation does 18.10 not cancel until June 30, 2001. 18.11 Sec. 6. [ASSESSORS' REPORTS.] 18.12 By July 1, 1997, each county assessor and the city 18.13 assessors of Duluth, Minneapolis, and St. Cloud shall report 18.14 separately to the commissioner of revenue for the 1996 18.15 assessment year the market values by city and town of: 18.16 (1) industrial property as defined in section 2, split 18.17 between the value receiving a class rate of three percent and 18.18 the value receiving a class rate of 4.6 percent; 18.19 (2) commercial property as defined in section 2, split 18.20 between the value receiving a class rate of three percent and 18.21 the value receiving a class rate of 4.6 percent; and 18.22 (3) residential nonhomestead property under Minnesota 18.23 Statutes 1996, section 273.13, subdivision 25, paragraph (b), 18.24 clause (1), up to $72,000 market value and over $72,000 market 18.25 value. 18.26 The commissioner of revenue shall prescribe the form of the 18.27 report. The commissioner shall review the reports and may make 18.28 any changes the commissioner determines necessary or return the 18.29 report to the assessor for corrections. 18.30 Sec. 7. [NET TAX CAPACITY ADJUSTMENTS.] 18.31 Using the information reported under section 6, the 18.32 commissioner of revenue shall: 18.33 (1) reduce the 1971 base value for each municipality under 18.34 Minnesota Statutes, chapter 473F, by the same proportion as the 18.35 overall reduction in commercial-industrial net tax capacity for 18.36 assessment year 1996 resulting from the changes made in this 19.1 article; 19.2 (2) reduce the 1995 base value for each municipality under 19.3 Minnesota Statutes, chapter 276A, by the same proportion as the 19.4 overall reduction in commercial-industrial net tax capacity for 19.5 assessment year 1996 resulting from the changes made in this 19.6 article; and 19.7 (3) adjust the net tax capacities for each school district 19.8 under Minnesota Statutes, section 124.2131, subdivision 1, to 19.9 reflect the class rates contained in this article. 19.10 By August 1, 1997, the commissioner of revenue shall 19.11 certify to the administrative auditor under chapters 276A and 19.12 473F and each affected county assessor the revised base values 19.13 determined under clauses (1) and (2). 19.14 Sec. 8. [REPEALER.] 19.15 Minnesota Statutes 1996, section 273.13, subdivision 32, is 19.16 repealed. 19.17 Sec. 9. [EFFECTIVE DATE.] 19.18 Sections 1 to 4 and 8 are effective for taxes payable in 19.19 1998 and subsequent years. 19.20 ARTICLE 2 19.21 STATE AIDS 19.22 Section 1. Minnesota Statutes 1996, section 124A.23, 19.23 subdivision 1, is amended to read: 19.24 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 19.25 commissioner shall establish the general education tax rate by 19.26 July 1 of each year for levies payable in the following year. 19.27 The general education tax capacity rate shall be a rate, rounded 19.28 up to the nearest tenth of a percent, that, when applied to the 19.29 adjusted net tax capacity for all districts, raises the amount 19.30 specified in this subdivision. The general education tax rate 19.31 shall be the rate that raises$1,054,000,000 for fiscal year19.321996 and$1,359,000,000 for fiscalyearyears 1997 and 1998 and 19.33 $1,258,000,000 for fiscal year 1999 and later fiscal years. The 19.34 general education tax rate may not be changed due to changes or 19.35 corrections made to a district's adjusted net tax capacity after 19.36 the tax rate has been established. 20.1 Sec. 2. Minnesota Statutes 1996, section 273.1398, 20.2 subdivision 1a, is amended to read: 20.3 Subd. 1a. [TAX BASE DIFFERENTIAL.] (a) For aids payable in 20.4 1997, the tax base differential is 0.25 percent of the 20.5 assessment year 1995 taxable market value of class 4c 20.6 noncommercial seasonal recreational residential property up to 20.7 $72,000. 20.8 (b) For aids payable in 1998, the tax base differential is 20.90.25 percentthe sum of the following percentages of the 20.10 assessment year 1996 taxable market value of the following 20.11 classes of property, excluding that portion of any property's 20.12 value which is captured value of a tax increment financing 20.13 district as defined in section 469.177, subdivision 2: 20.14 (i) 0.75 percent of class4c1d noncommercial seasonal 20.15 recreational residential property up to $72,000., 20.16 (ii) 0.5 percent of class 1d noncommercial seasonal 20.17 recreational residential property over $72,000, 20.18 (iii) 1.3 percent of class 1d residential nonhomestead 20.19 property up to $72,000, 20.20 (iv) 0.3 percent of class 1d residential nonhomestead 20.21 property over $72,000, 20.22 (v) 0.25 percent of class 2a and 2b agricultural property 20.23 which has a class rate of 1.5 percent for taxes payable in 1997, 20.24 (vi) one percent of all class 3a 20.25 commercial/industrial/public utility property up to $100,000 20.26 value which has a class rate of three percent for taxes payable 20.27 in 1997, 20.28 (vii) 1.3 percent of all class 3a industrial property as 20.29 defined in section 273.13, subdivision 24, paragraph (a), which 20.30 has a class rate of 4.6 percent for taxes payable in 1997, 20.31 (viii) 0.3 percent of all class 3b enterprise zone property 20.32 up to $50,000 in value, 20.33 (ix) 0.3 percent of all class 3b enterprise zone property 20.34 over $50,000 in value, 20.35 (x) one percent of all class 3b border city enterprise zone 20.36 property up to $100,000 value which has a class rate of three 21.1 percent for taxes payable in 1997, and 21.2 (xi) 1.3 percent of all class 3b border city enterprise 21.3 zone property which has a class rate of 4.6 percent for taxes 21.4 payable in 1997. 21.5 For properties lying within the area defined in section 21.6 473F.02, subdivision 2, the value of properties in clauses (vi) 21.7 to (xi) must be reduced by the ratio determined under section 21.8 473F.08, subdivision 6. 21.9 For properties lying within the area defined in section 21.10 276A.01, subdivision 2, the value of properties in clauses (vi) 21.11 to (xi) must be reduced by the ratio determined under section 21.12 276A.06, subdivision 7. 21.13 Sec. 3. Minnesota Statutes 1996, section 273.1398, 21.14 subdivision 8, is amended to read: 21.15 Subd. 8. [APPROPRIATION.] An amount sufficient to pay the 21.16 aids and credits provided under this section for school 21.17 districts, intermediate school districts, or any group of school 21.18 districts levying as a single taxing entity, is annually 21.19 appropriated from the general fund to the commissioner of 21.20 children, families, and learning. An amount sufficient to pay 21.21 the aids and credits provided under this section for counties, 21.22 cities,towns,and special taxing districts is annually 21.23 appropriated from the general fund to the commissioner of 21.24 revenue. A jurisdiction's aid amount may be increased or 21.25 decreased based on any prior year adjustments for homestead 21.26 credit or other property tax credit or aid programs. 21.27 Sec. 4. Minnesota Statutes 1996, section 477A.011, is 21.28 amended by adding a subdivision to read: 21.29 Subd. 3b. [SPRAWL POPULATION.] For a city with a 21.30 population of 5,000 or more which is located outside of the 21.31 metropolitan area, "sprawl population" is the total population 21.32 of all municipalities and unorganized townships that have a 21.33 geographic center closer to the geographic center of the city 21.34 than to the geographic center of any other city with a 21.35 population of 5,000 or more. For a city with a population less 21.36 than 5,000, or a city located in the metropolitan area, the 22.1 sprawl population is zero. 22.2 Sec. 5. Minnesota Statutes 1996, section 477A.011, is 22.3 amended by adding a subdivision to read: 22.4 Subd. 3c. [ADJUSTED POPULATION.] "Adjusted population" is 22.5 the sum of a city's population plus five percent of the city's 22.6 sprawl population. 22.7 Sec. 6. Minnesota Statutes 1996, section 477A.011, is 22.8 amended by adding a subdivision to read: 22.9 Subd. 20a. [NET TAX CAPACITY PER CAPITA.] "Net tax 22.10 capacity per capita" is equal to a city's net tax capacity 22.11 divided by the city's population. 22.12 Sec. 7. Minnesota Statutes 1996, section 477A.011, is 22.13 amended by adding a subdivision to read: 22.14 Subd. 32a. [POVERTY PERCENTAGE.] "Poverty percentage" for 22.15 a city is 100 times the ratio of the number of households below 22.16 the poverty line to the total number of households in the city 22.17 according to the most recent federal census. 22.18 Sec. 8. Minnesota Statutes 1996, section 477A.011, is 22.19 amended by adding a subdivision to read: 22.20 Subd. 33a. [CITY DECLINE FACTOR.] "City decline factor" is 22.21 the product of the city's (1) pre-1940 housing percentage, (2) 22.22 commercial industrial percentage, and (3) population decline 22.23 percentage. 22.24 Sec. 9. Minnesota Statutes 1996, section 477A.011, 22.25 subdivision 34, is amended to read: 22.26 Subd. 34. [CITY REVENUE NEED PER CAPITA.] (a) For a city 22.27 with a population equal to or greater than 2,500, "city revenue 22.28 need per capita" is the sum of (1)3.4623126.110762 times the 22.29 pre-1940 housing percentage; plus (2)2.0938265.744915 times 22.30 the commercial industrial percentage; plus (3)6.8625520.024686 22.31 times thepopulationcity declinepercentagefactor; plus 22.32 (4).000269.784552 times thecity population; plus (5) 152.014122.33 poverty percentage. 22.34 (b) For a city with a population less than 2,500, "city 22.35 revenue need per capita" is the sum of (1) 1.795919 times the 22.36 pre-1940 housing percentage; plus (2) 1.562138 times the 23.1 commercial industrial percentage; plus (3) 4.177568 times the 23.2 population decline percentage; plus (4) 1.04013 times the 23.3 transformed population; minus (5) 107.475. 23.4 (c)TheCity revenue need per capita cannot be less than 23.5 zero. 23.6 (d) For calendar year 1995 and subsequent years, the city 23.7 revenue need per capita for a city with a population less than 23.8 2,500, as determined in paragraphs(a) to(b) and (c), is 23.9 multiplied by the ratio of the annual implicit price deflator 23.10 for state and local government purchases, as prepared by the 23.11 United States Department of Commerce, for the most recently 23.12 available year to the 1993 implicit price deflator for state and 23.13 local government purchases. 23.14 (e) For calendar year 1999 and subsequent years, the city 23.15 revenue need per capita for a city with a population of 2,500 or 23.16 more, as determined in paragraphs (a) and (c), is multiplied by 23.17 the ratio of the annual implicit price deflator for state and 23.18 local government purchases, as prepared by the United States 23.19 Department of Commerce, for the most recent available year to 23.20 the 1996 implicit price deflator for state and local government 23.21 purchases. 23.22 Sec. 10. Minnesota Statutes 1996, section 477A.011, is 23.23 amended by adding a subdivision to read: 23.24 Subd. 38. [NEED ADJUSTMENT FACTOR.] The "need adjustment 23.25 factor" for a city equals the square root of the ratio of (1) 23.26 735 less the city's net tax capacity per capita, to (2) 100. If 23.27 the city's net tax capacity per capita is greater than 735, its 23.28 need adjustment factor is zero. 23.29 Sec. 11. Minnesota Statutes 1996, section 477A.011, is 23.30 amended by adding a subdivision to read: 23.31 Subd. 39. [ACRES.] The "number of acres in a town" are the 23.32 number of acres of land in the town, according to the most 23.33 recent federal census, adjusted for any annexations and 23.34 detachments as provided in section 477A.014, subdivision 1. 23.35 Sec. 12. Minnesota Statutes 1996, section 477A.011, is 23.36 amended by adding a subdivision to read: 24.1 Subd. 40. [AGRICULTURAL NET TAX CAPACITY.] The 24.2 "agricultural net tax capacity" for a town is equal to the net 24.3 tax capacity for all property in the town that is classified as 24.4 2a or 2b under section 273.13, subdivision 23, except that 24.5 property classified as 2b under section 273.13, subdivision 23, 24.6 paragraph (b), clause (4), does not qualify as agricultural 24.7 property for purposes of this subdivision. 24.8 Sec. 13. Minnesota Statutes 1996, section 477A.013, 24.9 subdivision 1, is amended to read: 24.10 Subdivision 1. [TOWNS.]In 1994 each town that had levied24.11for taxes payable in the prior year a local tax rate of at least24.12.008 shall receive a distribution equal to the amount it24.13received in 1993 under this section before any nonpermanent24.14reductions made under section 477A.0132. In 1995 each town that24.15had levied for taxes payable in 1993 a local tax rate of at24.16least .008 shall receive a distribution equal to 102 percent of24.17the amount it received in 1994 under this section before any24.18increases or reductions under sections 16A.711, subdivision 5,24.19and 477A.0132. In 1996 and subsequent years each town that had24.20levied for taxes payable in 1993 a local tax rate of at least24.21.008 shall receive a distribution equal to the amount it24.22received in the previous year under this section, adjusted for24.23inflation as provided under section 477A.03, subdivision 3.In 24.24 calendar year 1998 and subsequent years, the amount of aid that 24.25 a town receives is equal to (1) the aid factor multiplied by the 24.26 number of acres in the town, less (2) 0.10 multiplied by the 24.27 difference between the town's net tax capacity and its 24.28 agricultural net tax capacity. In 1998 the aid factor is $1. 24.29 In 1999 and subsequent years the aid factor is the aid factor 24.30 from the previous year adjusted for inflation as provided under 24.31 section 477A.03, subdivision 3. If the town's agricultural net 24.32 tax capacity is less than 40 percent of its total net tax 24.33 capacity the amount of aid it receives is zero. No town may 24.34 have an aid amount less than zero. 24.35 Sec. 14. Minnesota Statutes 1996, section 477A.013, 24.36 subdivision 8, is amended to read: 25.1 Subd. 8. [CITY FORMULA AID.] In calendar year19941998 25.2 and subsequent years, the formula aid for a city is equal tothe25.3need increase percentage multiplied by the difference between25.4(1) the city's revenue need multiplied by its population, and25.5(2) the city's net tax capacity multiplied by the tax effort25.6ratethe product of (1) a scaling factor, (2) the city's 25.7 adjusted population, and (3) the sum of (i) 80, (ii) 0.7 25.8 multiplied by the city's revenue need per capita, (iii) -0.2 25.9 multiplied by the city's net tax capacity per capita, and (iv) 25.10 the city's revenue need per capita multiplied by its need 25.11 adjustment factor. No city may have a formula aid amount less 25.12 than zero. Theneed increase percentagescaling factor must be 25.13 the same for all cities. 25.14Notwithstanding the prior sentence, in 1995 only, the need25.15increase percentage for a city shall be twice the need increase25.16percentage applicable to other cities if:25.17(1) the city, in 1992 or 1993, transferred an amount from25.18governmental funds to their sewer and water fund, and25.19(2) the amount transferred exceeded their net levy for25.20taxes payable in the year in which the transfer occurred.25.21 The applicableneed increase percentage or percentages25.22 scaling factor must be calculated by the department of revenue 25.23 so that the total of the aid under subdivision 9 equals the 25.24 total amount available for aid under section 477A.03. 25.25 Sec. 15. Minnesota Statutes 1996, section 477A.013, 25.26 subdivision 9, is amended to read: 25.27 Subd. 9. [CITY AID DISTRIBUTION.] (a) In calendar year 25.2819941998 and thereafter, each city shall receive an aid 25.29 distribution equal tothe sum of (1) the city formula aid under25.30subdivision 8, and (2) its city aid baseits city formula aid 25.31 subject to the limit in paragraph (b). 25.32 (b)The percentage increase for a first class city in25.33calendar year 1995 and thereafter shall not exceed the25.34percentage increase in the sum of the aid to all cities under25.35this section in the current calendar year compared to the sum of25.36the aid to all cities in the previous year.26.1(c)The total aid for any city, except a first class city,26.2 shall not exceed the sum of (1)ten25 percent of the city's net 26.3 levy for the year prior to the aid distribution plus (2) its 26.4 total aid in the previous year before anyincreases ordecreases 26.5 undersections 16A.711, subdivision 5, andsection 477A.0132. 26.6(d) Notwithstanding paragraph (c), in 1995 only, for cities26.7which in 1992 or 1993 transferred an amount from governmental26.8funds to their sewer and water fund in an amount greater than26.9their net levy for taxes payable in the year in which the26.10transfer occurred, the total aid shall not exceed the sum of (1)26.1120 percent of the city's net levy for the year prior to the aid26.12distribution plus (2) its total aid in the previous year before26.13any increases or decreases under sections 16A.711, subdivision26.145, and 477A.0132.26.15 (c) Notwithstanding paragraphs (a) and (b), if a city with 26.16 a population of 2,500 or more has a reduction in its net tax 26.17 capacity of 20 percent or more in an assessment year compared to 26.18 the previous year, the following limits and minimums shall apply: 26.19 (1) for aid distributed in the year immediately following 26.20 the assessment year of the net tax capacity loss, the aid may 26.21 not increase by more than an amount equal to the product of (i) 26.22 17 percent plus a percent equal to the percent loss in net tax 26.23 capacity and (ii) the city's net levy for the year prior to the 26.24 aid distribution; 26.25 (2) for aid distributed in the five years following the 26.26 assessment year of the net tax capacity loss, the aid may not be 26.27 less than an amount equal to the following: 26.28 (i) for the first year, the amount of the net tax capacity 26.29 loss multiplied by the city tax rate from the previous year; 26.30 (ii) for the second year, 80 percent of the minimum amount 26.31 guaranteed in the first year; 26.32 (iii) for the third year, 60 percent of the minimum amount 26.33 guaranteed in the first year; 26.34 (iv) for the fourth year, 40 percent of the minimum amount 26.35 guaranteed in the first year; 26.36 (v) for the fifth year, 20 percent of the minimum amount 27.1 guaranteed in the first year. 27.2 A city must notify the commissioner of revenue by July 1 of 27.3 the year prior to the first year it would qualify for provisions 27.4 under this paragraph in order to be eligible for aid adjustments 27.5 under this paragraph. The city must also furnish the 27.6 commissioner with any information needed to administer the 27.7 provisions of this paragraph. 27.8 Sec. 16. Minnesota Statutes 1996, section 477A.03, 27.9 subdivision 2, is amended to read: 27.10 Subd. 2. [ANNUAL APPROPRIATION.] A sum sufficient to 27.11 discharge the duties imposed by sections 477A.011 to 477A.014 is 27.12 annually appropriated from the general fund to the commissioner 27.13 of revenue. For aids payable in19961998 and thereafter, the 27.14 total aids paid under sections477A.013, subdivision 9,27.15 477A.0121 and 477A.0122 are the amounts certified to be paid in 27.16 the previous year, adjusted for inflation as provided under 27.17 subdivision 3. Aid payments tocountiescities under section 27.18477A.0121477A.013, subdivision 9, are limited to$20,265,000 in27.191996$449,344,394 in 1998.Aid payments to counties under27.20section 477A.0121 are limited to $27,571,625 in 1997.For aid 27.21 payable in19981999 and thereafter, the total aids paid under 27.22 section477A.0121477A.013, subdivision 9, are the amounts 27.23 certified to be paid in the previous year, adjusted for 27.24 inflation as provided under subdivision 3. 27.25 Sec. 17. [AID REDUCTIONS.] 27.26 Calendar year 1998 homestead and agricultural credit aid 27.27 under Minnesota Statutes, section 273.1398, subdivision 2, to 27.28 each county, city, and school district shall be permanently 27.29 reduced by an amount equal to one percent of the jurisdiction's 27.30 1996 adjusted net tax capacity. For the purposes of this 27.31 section, a jurisdiction's "adjusted net tax capacity" is 27.32 determined under the methodology specified for school districts 27.33 in Minnesota Statutes, section 124.2131. The reduction shall be 27.34 made after all adjustments under Minnesota Statutes, section 27.35 273.1398, subdivision 2, have been made. 27.36 Sec. 18. [REPEALER.] 28.1 Minnesota Statutes 1996, section 477A.011, subdivisions 35, 28.2 36, and 37, are repealed. 28.3 Sec. 19. [EFFECTIVE DATE.] 28.4 This article is effective for aids payable in 1998 and 28.5 thereafter. 28.6 ARTICLE 3 28.7 PROPERTY TAX REFUND 28.8 Section 1. Minnesota Statutes 1996, section 290A.03, 28.9 subdivision 6, is amended to read: 28.10 Subd. 6. [HOMESTEAD.] "Homestead" means: 28.11 the dwelling occupied as the claimant's principal residence 28.12 and so much of the land surrounding it, not exceeding ten acres, 28.13 as is reasonably necessary for use of the dwelling as a home and 28.14 any other property used for purposes of a homestead as defined 28.15 in section 273.13, subdivision 22, except foragricultural land28.16assessed as part of a homestead pursuant to section 273.13,28.17subdivision 23, "homestead" is limited to 320 acres or, where28.18the farm homestead is rented, one acrea farm homestead under 28.19 subdivision 6a. The homestead may be owned or rented and may be 28.20 a part of a multidwelling or multipurpose building and the land 28.21 on which it is built. 28.22 A manufactured home, as defined in section 273.125, 28.23 subdivision 8, or a park trailer taxed as a manufactured home 28.24 under section 168.012, subdivision 9, assessed as personal 28.25 property may be a dwelling for purposes of this subdivision. 28.26 Sec. 2. Minnesota Statutes 1996, section 290A.03, is 28.27 amended by adding a subdivision to read: 28.28 Subd. 6a. [FARM HOMESTEAD.] "Farm homestead" means the 28.29 house occupied as the claimant's principal residence, garage, 28.30 and up to 320 acres of the agricultural land assessed as part of 28.31 the homestead under section 273.13, subdivision 23, paragraph 28.32 (a), including any other improvements located on the land. 28.33 Sec. 3. Minnesota Statutes 1996, section 290A.03, 28.34 subdivision 13, is amended to read: 28.35 Subd. 13. [PROPERTY TAXES PAYABLE.] "Property taxes 28.36 payable" means the property tax exclusive of special 29.1 assessments, penalties, and interest payable on a claimant's 29.2 homestead or farm homestead before reductions made under section 29.3 273.13 but after deductions made under sections 273.135, 29.4 273.1391, 273.42, subdivision 2, and any other state paid 29.5 property tax credits in any calendar year. In the case of a 29.6 claimant who makes ground lease payments, "property taxes 29.7 payable" includes the amount of the payments directly 29.8 attributable to the property taxes assessed against the parcel 29.9 on which the house is located. No apportionment or reduction of 29.10 the "property taxes payable" shall be required for the use of a 29.11 portion of the claimant's homestead or farm homestead for a 29.12 business purpose if the claimant does not deduct any business 29.13 depreciation expenses for the use of a portion of the 29.14 homestead or farm homestead in the determination of federal 29.15 adjusted gross income. For homesteads which are manufactured 29.16 homes as defined in section 273.125, subdivision 8, and for 29.17 homesteads which are park trailers taxed as manufactured homes 29.18 under section 168.012, subdivision 9, "property taxes payable" 29.19 shall also include the amount of the gross rent paid in the 29.20 preceding year for the site on which the homestead is located, 29.21 which is attributable to the net tax paid on the site. The 29.22 amount attributable to property taxes shall be determined by 29.23 multiplying the net tax on the parcel by a fraction, the 29.24 numerator of which is the gross rent paid for the calendar year 29.25 for the site and the denominator of which is the gross rent paid 29.26 for the calendar year for the parcel. When a homestead or farm 29.27 homestead is owned by two or more persons as joint tenants or 29.28 tenants in common, such tenants shall determine between them 29.29 which tenant may claim the property taxes payable on the 29.30 homestead or farm homestead. If they are unable to agree, the 29.31 matter shall be referred to the commissioner of revenue whose 29.32 decision shall be final. Property taxes are considered payable 29.33 in the year prescribed by law for payment of the taxes. 29.34 In the case of a claim relating to "property taxes 29.35 payable," the claimant must have owned and occupied the 29.36 homestead or farm homestead on January 2 of the year in which 30.1 the tax is payable and (i) the property must have been 30.2 classified as homestead property pursuant to section 273.13, 30.3 subdivision 22 or 23, on or before December 15 of the assessment 30.4 year to which the "property taxes payable" relate; or (ii) the 30.5 claimant must provide documentation from the local assessor that 30.6 application for homestead classification has been made on or 30.7 before December 15 of the year in which the "property taxes 30.8 payable" were payable and that the assessor has approved the 30.9 application. 30.10 Sec. 4. Minnesota Statutes 1996, section 290A.04, 30.11 subdivision 1, is amended to read: 30.12 Subdivision 1. A refund shall be allowed each claimant in 30.13 the amount that property taxes payable or rent constituting 30.14 property taxes exceed the percentage of the household income of 30.15 the claimant specified in subdivision 2or, 2a, or 2j in the 30.16 year for which the taxes were levied or in the year in which the 30.17 rent was paid as specified in subdivision 2or, 2a, or 2j. If 30.18 the amount of property taxes payable or rent constituting 30.19 property taxes is equal to or less than the percentage of the 30.20 household income of the claimant specified in subdivision 2or, 30.21 2a, or 2j in the year for which the taxes were levied or in the 30.22 year in which the rent was paid, the claimant shall not be 30.23 eligible for a state refund pursuant to this section. 30.24 Sec. 5. Minnesota Statutes 1996, section 290A.04, 30.25 subdivision 2, is amended to read: 30.26 Subd. 2. [HOMEOWNERS.] A claimant whose property taxes 30.27 payable on a homestead as defined in section 290A.03, 30.28 subdivision 6, are in excess of the percentage of the household 30.29 income stated below shall pay an amount equal to the percent of 30.30 income shown for the appropriate household income level along 30.31 with the percent to be paid by the claimant of the remaining 30.32 amount of property taxes payable. The state refund equals the 30.33 amount of property taxes payable that remain, up to the state 30.34 refund amount shown below. 30.35 Percent Percent Maximum 30.36 Household Income of Income Paid by State 30.37 Claimant Refund 31.1$0 to 1,0291.2 percent18 percent$44031.21,030 to 2,0591.3 percent18 percent$44031.32,060 to 3,0991.4 percent20 percent$44031.43,100 to 4,1291.6 percent20 percent$44031.54,130 to 5,1591.7 percent20 percent$44031.65,160 to 7,2291.9 percent25 percent$44031.77,230 to 8,2592.1 percent25 percent$44031.88,260 to 9,2892.2 percent25 percent$44031.99,290 to 10,3192.3 percent30 percent$44031.1010,320 to 11,3492.4 percent30 percent$44031.1111,350 to 12,3892.5 percent30 percent$44031.1212,390 to 14,4492.6 percent30 percent$44031.1314,450 to 15,4792.8 percent35 percent$44031.1415,480 to 16,5093.0 percent35 percent$44031.1516,510 to 17,5493.2 percent40 percent$44031.1617,550 to 21,6693.3 percent40 percent$44031.1721,670 to 24,7693.4 percent45 percent$44031.1824,770 to 30,9593.5 percent45 percent$44031.1930,960 to 36,1193.5 percent45 percent$44031.2036,120 to 41,2793.7 percent50 percent$44031.2141,280 to 58,8294.0 percent50 percent$44031.2258,830 to 59,8594.0 percent50 percent$31031.2359,860 to 60,8894.0 percent50 percent$21031.2460,890 to 61,9294.0 percent50 percent$10031.25 $0 to 1,059 1.2 percent 18 percent $850 31.26 1,060 to 2,119 1.3 percent 18 percent $850 31.27 2,120 to 3,188 1.4 percent 20 percent $850 31.28 3,189 to 4,247 1.6 percent 20 percent $850 31.29 4,248 to 5,307 1.7 percent 20 percent $850 31.30 5,308 to 7,435 1.9 percent 25 percent $850 31.31 7,436 to 8,495 2.0 percent 25 percent $850 31.32 8,496 to 9,554 2.1 percent 25 percent $850 31.33 9,555 to 10,613 2.1 percent 30 percent $850 31.34 10,614 to 11,673 2.2 percent 30 percent $850 31.35 11,674 to 12,742 2.2 percent 30 percent $850 31.36 12,743 to 14,861 2.3 percent 30 percent $850 31.37 14,862 to 15,920 2.4 percent 35 percent $850 31.38 15,921 to 16,979 2.6 percent 35 percent $850 31.39 16,980 to 18,049 2.8 percent 40 percent $850 31.40 18,050 to 22,286 3.0 percent 40 percent $850 31.41 22,287 to 25,474 3.2 percent 45 percent $850 31.42 25,475 to 31,840 3.3 percent 45 percent $850 31.43 31,841 to 37,147 3.5 percent 45 percent $850 31.44 37,148 to 42,453 3.7 percent 50 percent $850 31.45 42,454 to 60,502 4.0 percent 50 percent $850 31.46 60,503 to 61,561 4.0 percent 50 percent $600 31.47 61,562 to 62,621 4.0 percent 50 percent $300 31.48 62,622 to 63,689 4.0 percent 50 percent $100 31.49 The payment made to a claimant shall be the amount of the 31.50 state refund calculated under this subdivision. No payment is 31.51 allowed if the claimant's household income is$61,930$63,690 or 31.52 more. 31.53 Sec. 6. Minnesota Statutes 1996, section 290A.04, 31.54 subdivision 2a, is amended to read: 31.55 Subd. 2a. [RENTERS.] A claimant whose rent constituting 31.56 property taxes exceeds the percentage of the household income 31.57 stated below must pay an amount equal to the percent of income 31.58 shown for the appropriate household income level along with the 31.59 percent to be paid by the claimant of the remaining amount of 32.1 rent constituting property taxes. The state refund equals the 32.2 amount of rent constituting property taxes that remain, up to 32.3 the maximum state refund amount shown below. 32.4 Percent Percent Maximum 32.5 Household Income of Income Paid by State 32.6 Claimant Refund 32.7$0 to 3,0991.0 percent5 percent$1,03032.83,100 to 4,1291.0 percent10 percent$1,03032.94,130 to 5,1591.1 percent10 percent$1,03032.105,160 to 7,2291.2 percent10 percent$1,03032.117,230 to 9,2891.3 percent15 percent$1,03032.129,290 to 10,3191.4 percent15 percent$1,03032.1310,320 to 11,3491.4 percent20 percent$1,03032.1411,350 to 13,4191.5 percent20 percent$1,03032.1513,420 to 14,4491.6 percent20 percent$1,03032.1614,450 to 15,4791.7 percent25 percent$1,03032.1715,480 to 17,5491.8 percent25 percent$1,03032.1817,550 to 18,5791.9 percent30 percent$1,03032.1918,580 to 19,6092.0 percent30 percent$1,03032.2019,610 to 20,6392.2 percent30 percent$1,03032.2120,640 to 21,6692.4 percent30 percent$1,03032.2221,670 to 22,7092.6 percent35 percent$1,03032.2322,710 to 23,7392.7 percent35 percent$1,03032.2423,740 to 24,7692.8 percent35 percent$1,03032.2524,770 to 25,7992.9 percent40 percent$1,03032.2625,800 to 26,8393.0 percent40 percent$1,03032.2726,840 to 27,8693.1 percent40 percent$1,03032.2827,870 to 28,8993.2 percent40 percent$1,03032.2928,900 to 29,9293.3 percent45 percent$93032.3029,930 to 30,9593.4 percent45 percent$83032.3130,960 to 31,9993.5 percent45 percent$72032.3232,000 to 33,0293.5 percent50 percent$62032.3333,030 to 34,0593.5 percent50 percent$52032.3434,060 to 35,0893.5 percent50 percent$31032.3535,090 to 36,1193.5 percent50 percent$10032.36 $0 to 3,189 1.0 percent 5 percent $2,000 32.37 3,190 to 4,249 1.0 percent 10 percent $2,000 32.38 4,250 to 6,369 1.1 percent 10 percent $2,000 32.39 6,370 to 7,439 1.2 percent 10 percent $2,000 32.40 7,440 to 9,549 1.3 percent 10 percent $2,000 32.41 9,550 to 10,609 1.4 percent 10 percent $2,000 32.42 10,610 to 11,669 1.4 percent 10 percent $2,000 32.43 11,670 to 13,799 1.5 percent 10 percent $2,000 32.44 13,800 to 14,859 1.6 percent 10 percent $2,000 32.45 14,860 to 15,919 1.7 percent 10 percent $2,000 32.46 15,920 to 18,049 1.8 percent 10 percent $2,000 32.47 18,050 to 19,109 1.9 percent 10 percent $2,000 32.48 19,110 to 20,169 2.0 percent 10 percent $2,000 32.49 20,170 to 21,229 2.2 percent 15 percent $2,000 32.50 21,230 to 22,289 2.4 percent 15 percent $2,000 32.51 22,290 to 23,359 2.6 percent 15 percent $2,000 32.52 23,360 to 24,419 2.7 percent 15 percent $2,000 32.53 24,420 to 25,469 2.8 percent 15 percent $2,000 32.54 25,470 to 26,529 2.9 percent 20 percent $2,000 32.55 25,530 to 27,599 3.0 percent 20 percent $2,000 32.56 27,600 to 28,659 3.1 percent 20 percent $2,000 32.57 28,660 to 29,719 3.2 percent 20 percent $2,000 32.58 27,720 to 30,779 3.3 percent 25 percent $1,920 32.59 30,780 to 31,839 3.4 percent 25 percent $1,700 32.60 31,840 to 32,909 3.5 percent 25 percent $1,480 32.61 32,910 to 33,969 3.5 percent 30 percent $1,280 32.62 33,970 to 35,029 3.5 percent 30 percent $1,080 32.63 35,030 to 37,149 3.5 percent 30 percent $ 640 32.64 36,090 to 39,999 3.5 percent 30 percent $ 200 32.65 The payment made to a claimant is the amount of the state 32.66 refund calculated under this subdivision. No payment is allowed 33.1 if the claimant's household income is$36,120$40,000 or more. 33.2 Sec. 7. Minnesota Statutes 1996, section 290A.04, is 33.3 amended by adding a subdivision to read: 33.4 Subd. 2j. [FARM HOMESTEADS.] A claimant whose property 33.5 taxes payable on a farm homestead as defined in section 290A.03, 33.6 subdivision 6a, are in excess of the percentage of the household 33.7 income stated in this subdivision shall pay an amount equal to 33.8 the percent of income shown for the appropriate household income 33.9 level along with the percent to be paid by the claimant of the 33.10 remaining amount of property taxes payable. The state refund 33.11 equals the amount of property taxes payable that remain, up to 33.12 the state refund amount shown in this subdivision. 33.13 Household Income Percent Percent Maximum 33.14 of Income Paid by State 33.15 Claimant Refund 33.16 $0 to 1,059 1.2 percent 18 percent $500 33.17 1,060 to 2,119 1.3 percent 18 percent $500 33.18 2,120 to 3,188 1.4 percent 20 percent $500 33.19 3,189 to 4,247 1.6 percent 20 percent $500 33.20 4,248 to 5,307 1.7 percent 20 percent $500 33.21 5,308 to 7,435 1.9 percent 25 percent $500 33.22 7,436 to 8,495 2.0 percent 25 percent $500 33.23 8,496 to 9,554 2.1 percent 25 percent $500 33.24 9,555 to 10,613 2.1 percent 30 percent $500 33.25 10,614 to 11,673 2.2 percent 30 percent $500 33.26 11,674 to 12,742 2.2 percent 30 percent $500 33.27 12,743 to 14,861 2.3 percent 30 percent $500 33.28 14,862 to 15,920 2.4 percent 35 percent $500 33.29 15,921 to 16,979 2.6 percent 35 percent $500 33.30 16,980 to 18,049 2.8 percent 40 percent $500 33.31 18,050 to 22,286 3.0 percent 40 percent $500 33.32 22,287 to 25,474 3.2 percent 45 percent $500 33.33 25,475 to 31,840 3.3 percent 45 percent $500 33.34 31,841 to 37,147 3.5 percent 45 percent $500 33.35 37,148 to 42,453 3.7 percent 50 percent $500 33.36 42,454 to 60,502 4.0 percent 50 percent $500 33.37 60,503 to 61,561 4.0 percent 50 percent $400 33.38 61,562 to 62,621 4.0 percent 50 percent $300 33.39 62,622 to 63,689 4.0 percent 50 percent $100 33.40 The payment made to a claimant shall be the amount of the 33.41 state refund calculated under this subdivision. No payment is 33.42 allowed if the claimant's household income is $63,690 or more. 33.43 Sec. 8. Minnesota Statutes 1996, section 290A.04, 33.44 subdivision 6, is amended to read: 33.45 Subd. 6. [INFLATION ADJUSTMENT.] Beginning for property 33.46 tax refunds payable in calendar year19961999, the commissioner 33.47 shall annually adjust the dollar amounts of the income 33.48 thresholds and the maximum refunds under subdivisions 2and, 2a, 33.49 and 2j for inflation. The commissioner shall make the inflation 34.1 adjustments in accordance with section 290.06, subdivision 2d, 34.2 except that for purposes of this subdivision the percentage 34.3 increase shall be determined from the year ending on August 31, 34.419941997, to the year ending on August 31 of the year preceding 34.5 that in which the refund is payable. The commissioner shall use 34.6 the appropriate percentage increase to annually adjust the 34.7 income thresholds and maximum refunds under subdivisions 2and, 34.8 2a, and 2j for inflation without regard to whether or not the 34.9 income tax brackets are adjusted for inflation in that year. 34.10 The commissioner shall round the thresholds and the maximum 34.11 amounts, as adjusted to the nearest $10 amount. If the amount 34.12 ends in $5, the commissioner shall round it up to the next $10 34.13 amount. 34.14 The commissioner shall annually announce the adjusted 34.15 refund schedule at the same time provided under section 290.06. 34.16 The determination of the commissioner under this subdivision is 34.17 not a rule under the administrative procedure act. 34.18 Sec. 9. [REPEALER.] 34.19 Laws 1995, chapter 264, article 4, as amended by Laws 1996, 34.20 chapter 471, article 3, is repealed. Notwithstanding Minnesota 34.21 Statutes 1996, section 645.34, the sections of statutes amended 34.22 by the repealed Laws 1995, chapter 264, article 4, as amended by 34.23 Laws 1996, chapter 471, article 3, remain in effect as if not so 34.24 amended. 34.25 Sec. 10. [EFFECTIVE DATE.] 34.26 Sections 1 to 8 are effective for refunds claimed for 34.27 property taxes payable in 1998 and thereafter. Section 9 is 34.28 effective the day following final enactment. 34.29 ARTICLE 4 34.30 SENIOR CITIZENS PROPERTY TAX DEFERRAL 34.31 Section 1. Minnesota Statutes 1996, section 270B.12, is 34.32 amended by adding a subdivision to read: 34.33 Subd. 12. [PROPERTY TAX DEFERRAL.] The commissioner may 34.34 disclose to a county auditor and treasurer, and to their 34.35 designated agents or employees, the annual deferral amounts and 34.36 the cumulative deferral and interest as determined by the 35.1 commissioner under chapter 290B for each parcel of homestead 35.2 property in the county that is enrolled in the senior citizen 35.3 property tax deferral program under chapter 290B. 35.4 Sec. 2. Minnesota Statutes 1996, section 275.065, 35.5 subdivision 3, is amended to read: 35.6 Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 35.7 county auditor shall prepare and the county treasurer shall 35.8 deliver after November 10 and on or before November 24 each 35.9 year, by first class mail to each taxpayer at the address listed 35.10 on the county's current year's assessment roll, a notice of 35.11 proposed property taxes and, in the case of a town, final 35.12 property taxes. 35.13 (b) The commissioner of revenue shall prescribe the form of 35.14 the notice. 35.15 (c) The notice must inform taxpayers that it contains the 35.16 amount of property taxes each taxing authority other than a town 35.17 proposes to collect for taxes payable the following year and, 35.18 for a town, the amount of its final levy. It must clearly state 35.19 that each taxing authority, including regional library districts 35.20 established under section 134.201, and including the 35.21 metropolitan taxing districts as defined in paragraph (i), but 35.22 excluding all other special taxing districts and towns, will 35.23 hold a public meeting to receive public testimony on the 35.24 proposed budget and proposed or final property tax levy, or, in 35.25 case of a school district, on the current budget and proposed 35.26 property tax levy. It must clearly state the time and place of 35.27 each taxing authority's meeting and an address where comments 35.28 will be received by mail. 35.29 (d) The notice must state for each parcel: 35.30 (1) the market value of the property as determined under 35.31 section 273.11, and used for computing property taxes payable in 35.32 the following year and for taxes payable in the current year; 35.33 and, in the case of residential property, whether the property 35.34 is classified as homestead or nonhomestead. The notice must 35.35 clearly inform taxpayers of the years to which the market values 35.36 apply and that the values are final values; 36.1 (2) by county, city or town, school district excess 36.2 referenda levy, remaining school district levy, regional library 36.3 district, if in existence, the total of the metropolitan special 36.4 taxing districts as defined in paragraph (i) and the sum of the 36.5 remaining special taxing districts, and as a total of the taxing 36.6 authorities, including all special taxing districts, the 36.7 proposed or, for a town, final net tax on the property for taxes 36.8 payable the following year and the actual tax for taxes payable 36.9 the current year. If a school district has certified under 36.10 section 124A.03, subdivision 2, that a referendum will be held 36.11 in the school district at the November general election, the 36.12 county auditor must note next to the school district's proposed 36.13 amount that a referendum is pending and that, if approved by the 36.14 voters, the tax amount may be higher than shown on the notice. 36.15 For the purposes of this subdivision, "school district excess 36.16 referenda levy" means school district taxes for operating 36.17 purposes approved at referendums, including those taxes based on 36.18 net tax capacity as well as those based on market value. 36.19 "School district excess referenda levy" does not include school 36.20 district taxes for capital expenditures approved at referendums 36.21 or school district taxes to pay for the debt service on bonds 36.22 approved at referenda. In the case of the city of Minneapolis, 36.23 the levy for the Minneapolis library board and the levy for 36.24 Minneapolis park and recreation shall be listed separately from 36.25 the remaining amount of the city's levy. In the case of a 36.26 parcel where tax increment or the fiscal disparities areawide 36.27 tax under chapter 276A or 473F applies, the proposed tax levy on 36.28 the captured value or the proposed tax levy on the tax capacity 36.29 subject to the areawide tax must each be stated separately and 36.30 not included in the sum of the special taxing districts; and 36.31 (3) the increase or decrease in the amounts in clause (2) 36.32 from taxes payable in the current year to proposed or, for a 36.33 town, final taxes payable the following year, expressed as a 36.34 dollar amount and as a percentage. 36.35 For purposes of this section, the amount of the tax on 36.36 homesteads qualifying under the senior citizens' property tax 37.1 deferral program under chapter 290B is the total amount of 37.2 property tax before subtraction of the deferred property tax 37.3 amount. 37.4 (e) The notice must clearly state that the proposed or 37.5 final taxes do not include the following: 37.6 (1) special assessments; 37.7 (2) levies approved by the voters after the date the 37.8 proposed taxes are certified, including bond referenda, school 37.9 district levy referenda, and levy limit increase referenda; 37.10 (3) amounts necessary to pay cleanup or other costs due to 37.11 a natural disaster occurring after the date the proposed taxes 37.12 are certified; 37.13 (4) amounts necessary to pay tort judgments against the 37.14 taxing authority that become final after the date the proposed 37.15 taxes are certified; and 37.16 (5) the contamination tax imposed on properties which 37.17 received market value reductions for contamination. 37.18 (f) Except as provided in subdivision 7, failure of the 37.19 county auditor to prepare or the county treasurer to deliver the 37.20 notice as required in this section does not invalidate the 37.21 proposed or final tax levy or the taxes payable pursuant to the 37.22 tax levy. 37.23 (g) If the notice the taxpayer receives under this section 37.24 lists the property as nonhomestead and the homeowner provides 37.25 satisfactory documentation to the county assessor that the 37.26 property is owned and used as the owner's homestead, the 37.27 assessor shall reclassify the property to homestead for taxes 37.28 payable in the following year. 37.29 (h) In the case of class 4 residential property used as a 37.30 residence for lease or rental periods of 30 days or more, the 37.31 taxpayer must either: 37.32 (1) mail or deliver a copy of the notice of proposed 37.33 property taxes to each tenant, renter, or lessee; or 37.34 (2) post a copy of the notice in a conspicuous place on the 37.35 premises of the property. 37.36 The notice must be mailed or posted by the taxpayer by 38.1 November 27 or within three days of receipt of the notice, 38.2 whichever is later. A taxpayer may notify the county treasurer 38.3 of the address of the taxpayer, agent, caretaker, or manager of 38.4 the premises to which the notice must be mailed in order to 38.5 fulfill the requirements of this paragraph. 38.6 (i) For purposes of this subdivision, subdivisions 5a and 38.7 6, "metropolitan special taxing districts" means the following 38.8 taxing districts in the seven-county metropolitan area that levy 38.9 a property tax for any of the specified purposes listed below: 38.10 (1) metropolitan council under section 473.132, 473.167, 38.11 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 38.12 (2) metropolitan airports commission under section 473.667, 38.13 473.671, or 473.672; and 38.14 (3) metropolitan mosquito control commission under section 38.15 473.711. 38.16 For purposes of this section, any levies made by the 38.17 regional rail authorities in the county of Anoka, Carver, 38.18 Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 38.19 398A shall be included with the appropriate county's levy and 38.20 shall be discussed at that county's public hearing. 38.21 (j) For taxes levied in 1996, payable in 1997 only, in the 38.22 case of a statutory or home rule charter city or town that 38.23 exercises the local levy option provided in section 473.388, 38.24 subdivision 7, the notice of its proposed taxes may include a 38.25 statement of the amount by which its proposed tax increase for 38.26 taxes payable in 1997 is attributable to its exercise of that 38.27 option, together with a statement that the levy of the 38.28 metropolitan council was decreased by a similar amount because 38.29 of the exercise of that option. 38.30 Sec. 3. Minnesota Statutes 1996, section 276.04, 38.31 subdivision 2, is amended to read: 38.32 Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer 38.33 shall provide for the printing of the tax statements. The 38.34 commissioner of revenue shall prescribe the form of the property 38.35 tax statement and its contents. The statement must contain a 38.36 tabulated statement of the dollar amount due to each taxing 39.1 authority from the parcel of real property for which a 39.2 particular tax statement is prepared. The dollar amounts due 39.3 the county, township or municipality, the total of the 39.4 metropolitan special taxing districts as defined in section 39.5 275.065, subdivision 3, paragraph (i), school district excess 39.6 referenda levy, remaining school district levy, and the total of 39.7 other voter approved referenda levies based on market value 39.8 under section 275.61 must be separately stated. The amounts due 39.9 all other special taxing districts, if any, may be 39.10 aggregated. The amount of the tax on homesteads qualifying 39.11 under the senior citizens' property tax deferral program under 39.12 chapter 290B is the total amount of property tax before 39.13 subtraction of the deferred property tax amount. For the 39.14 purposes of this subdivision, "school district excess referenda 39.15 levy" means school district taxes for operating purposes 39.16 approved at referenda, including those taxes based on net tax 39.17 capacity as well as those based on market value. "School 39.18 district excess referenda levy" does not include school district 39.19 taxes for capital expenditures approved at referendums or school 39.20 district taxes to pay for the debt service on bonds approved at 39.21 referenda. The amount of the tax on contamination value imposed 39.22 under sections 270.91 to 270.98, if any, must also be separately 39.23 stated. The dollar amounts, including the dollar amount of any 39.24 special assessments, may be rounded to the nearest even whole 39.25 dollar. For purposes of this section whole odd-numbered dollars 39.26 may be adjusted to the next higher even-numbered dollar. The 39.27 amount of market value excluded under section 273.11, 39.28 subdivision 16, if any, must also be listed on the tax 39.29 statement. The statement shall include the following sentence, 39.30 printed in upper case letters in boldface print: "THE STATE OF 39.31 MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES. THE STATE 39.32 OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING CREDITS AND 39.33 REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT." 39.34 (b) The property tax statements for manufactured homes and 39.35 sectional structures taxed as personal property shall contain 39.36 the same information that is required on the tax statements for 40.1 real property. 40.2 (c) Real and personal property tax statements must contain 40.3 the following information in the order given in this paragraph. 40.4 The information must contain the current year tax information in 40.5 the right column with the corresponding information for the 40.6 previous year in a column on the left: 40.7 (1) the property's estimated market value under section 40.8 273.11, subdivision 1; 40.9 (2) the property's taxable market value after reductions 40.10 under section 273.11, subdivisions 1a and 16; 40.11 (3) the property's gross tax, calculated by multiplying the 40.12 property's gross tax capacity times the total local tax rate and 40.13 adding to the result the sum of the aids enumerated in clause 40.14 (4); 40.15 (4) a total of the following aids: 40.16 (i) education aids payable under chapters 124 and 124A; 40.17 (ii) local government aids for cities, towns, and counties 40.18 under chapter 477A; and 40.19 (iii) disparity reduction aid under section 273.1398; 40.20 (5) for homestead residential and agricultural properties, 40.21 the homestead and agricultural credit aid apportioned to the 40.22 property. This amount is obtained by multiplying the total 40.23 local tax rate by the difference between the property's gross 40.24 and net tax capacities under section 273.13. This amount must 40.25 be separately stated and identified as "homestead and 40.26 agricultural credit." For purposes of comparison with the 40.27 previous year's amount for the statement for taxes payable in 40.28 1990, the statement must show the homestead credit for taxes 40.29 payable in 1989 under section 273.13, and the agricultural 40.30 credit under section 273.132 for taxes payable in 1989; 40.31 (6) any credits received under sections 273.119; 273.123; 40.32 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 40.33 473H.10, except that the amount of credit received under section 40.34 273.135 must be separately stated and identified as "taconite 40.35 tax relief";and40.36 (7) any deferred property tax amount under the senior 41.1 citizens' property tax deferral program under chapter 290B, as 41.2 well as the total deferred amount plus accrued interest; and 41.3 (8) the net tax payable in the manner required in paragraph 41.4 (a). 41.5 (d) If the county uses envelopes for mailing property tax 41.6 statements and if the county agrees, a taxing district may 41.7 include a notice with the property tax statement notifying 41.8 taxpayers when the taxing district will begin its budget 41.9 deliberations for the current year, and encouraging taxpayers to 41.10 attend the hearings. If the county allows notices to be 41.11 included in the envelope containing the property tax statement, 41.12 and if more than one taxing district relative to a given 41.13 property decides to include a notice with the tax statement, the 41.14 county treasurer or auditor must coordinate the process and may 41.15 combine the information on a single announcement. 41.16 The commissioner of revenue shall certify to the county 41.17 auditor the actual or estimated aids enumerated in clauses (3) 41.18 and (4) that local governments will receive in the following 41.19 year. In the case of a county containing a city of the first 41.20 class, for taxes levied in 1991, and for all counties for taxes 41.21 levied in 1992 and thereafter, the commissioner must certify 41.22 this amount by September 1. 41.23 Sec. 4. [290B.02] [CITATION.] 41.24 This program shall be named the "senior citizens' property 41.25 tax deferral program." 41.26 Sec. 5. [290B.03] [DEFERRAL OF PROPERTY TAXES.] 41.27 Subdivision 1. [PROGRAM QUALIFICATIONS.] If the net tax 41.28 payable on class 1 property as defined in section 273.13, 41.29 subdivision 22, and that part of class 2a property as defined in 41.30 section 273.13, subdivision 23, consisting of the house, garage, 41.31 and surrounding one acre of land, is greater than its net tax 41.32 payable for the base year, the amount of the increase may be 41.33 deferred under this section, if all of the following conditions 41.34 are met: 41.35 (1) the property must be owned and occupied as a homestead 41.36 by a person 68 years of age or older. In the case of a married 42.1 couple, only one of the spouses has to be at least 68 years old 42.2 at the time the first property tax deferral is granted, 42.3 regardless of whether the property is titled in the name of one 42.4 spouse or both spouses, or titled in another way that permits 42.5 the property to have homestead status; 42.6 (2) the homestead must have been owned and occupied as the 42.7 homestead of at least one of the qualifying homeowners for at 42.8 least ten years prior to the year the initial application is 42.9 filed; 42.10 (3) there are no delinquent property taxes, penalties, or 42.11 interest on the homesteaded property; 42.12 (4) there are no delinquent special assessments on the 42.13 homesteaded property; 42.14 (5) there are no state or federal tax liens or judgment 42.15 liens on the homesteaded property; 42.16 (6) there are no mortgages or other liens on the property 42.17 that secure future advances, except for those subject to credit 42.18 limits that result in compliance with clause (7); and 42.19 (7) the total unpaid balances of debts secured by mortgages 42.20 and other liens on the property, including unpaid special 42.21 assessments, but not including property taxes payable during the 42.22 year does not exceed 75 percent of the assessor's estimated 42.23 market value for the year. 42.24 Subd. 2. [QUALIFYING HOMESTEAD; DEFINED.] Qualifying 42.25 homestead property is defined as the dwelling occupied as the 42.26 homeowner's principal residence and so much of the land 42.27 surrounding it, not exceeding one acre, as is reasonably 42.28 necessary for use of the dwelling as a home and any other 42.29 property used for purposes of a homestead as defined in section 42.30 273.13, subdivisions 22 and 23. The homestead may be part of a 42.31 multidwelling building and the land on which it is built. 42.32 Sec. 6. [290B.04] [APPLICATION FOR DEFERRAL.] 42.33 Subdivision 1. [INITIAL APPLICATION.] A taxpayer meeting 42.34 the program qualifications under section 290B.03 may apply to 42.35 the commissioner of revenue for the deferral of taxes. The 42.36 application is due on or before July 1 for deferral of the 43.1 following year's property taxes. A taxpayer may apply in the 43.2 year in which the taxpayer becomes 68 years old, provided that 43.3 no deferral of property taxes will be made until the calendar 43.4 year after the taxpayer becomes 68 years old. The application 43.5 shall be prescribed by the commissioner of revenue and shall 43.6 include the following items and any other information which the 43.7 commissioner deems necessary: 43.8 (1) the name, address, and social security number of the 43.9 owner or owners; 43.10 (2) a copy of the property tax statement for the current 43.11 payable year for the homesteaded property; 43.12 (3) the initial year of ownership and occupancy as a 43.13 homestead; and 43.14 (4) information on any mortgage loans or other amounts 43.15 secured by mortgages or other liens against the property, for 43.16 which purpose the commissioner may require the applicant to 43.17 provide a copy of the mortgage note, the mortgage, or a 43.18 statement of the balance owing on the mortgage loan provided by 43.19 the mortgage holder. The commissioner may require the 43.20 appropriate documents in connection with obtaining and 43.21 confirming information on unpaid amounts secured by other liens. 43.22 The application must state that program participation is 43.23 voluntary. The application must also state program 43.24 participation includes authorization for the deferred amount for 43.25 each year and for the cumulative deferral and interest to appear 43.26 on each year's property tax statement as public data. 43.27 Subd. 2. [APPROVAL; RECORDING.] The commissioner shall 43.28 approve all initial applications that qualify under this chapter 43.29 and shall notify qualifying homeowners on or before December 1. 43.30 The commissioner may investigate the facts or require 43.31 confirmation in regard to an application. The commissioner 43.32 shall record or file a notice of qualification for deferral, 43.33 including the names of the qualifying homeowners and a legal 43.34 description of the property, in the office of the county 43.35 recorder, or registrar of titles, whichever is applicable, in 43.36 the county where the qualifying property is located. The notice 44.1 must state that it serves as a notice of lien and that it 44.2 includes deferrals under this section for future years. The 44.3 homeowner shall pay the recording or filing fees. 44.4 Subd. 3. [SUBSEQUENT YEARS.] A taxpayer whose initial 44.5 application has been approved under subdivision 2 need not 44.6 complete an annual certification to remain enrolled in the 44.7 program. 44.8 Sec. 7. [290B.05] [DEFERRED PROPERTY TAX AMOUNT; MAXIMUM.] 44.9 Subdivision 1. [DEFERRED TAX AMOUNT.] The difference 44.10 between the net property taxes payable on the qualifying 44.11 homestead and the net property taxes payable for the base year 44.12 is the "deferred property tax amount" for that taxes payable 44.13 year. The deferred tax amounts must not include any special 44.14 assessments levied by any local unit of government. Any tax 44.15 attributable to new improvements made to the property after the 44.16 initial application has been approved under section 290B.04, 44.17 subdivision 2, must be excluded when determining any subsequent 44.18 deferred property tax amounts. No tax shall be deferred in any 44.19 year in which the homeowner does not meet the program 44.20 qualifications in section 290B.03. 44.21 Subd. 2. [MAXIMUM DEFERRAL.] The maximum allowable total 44.22 deferral is equal to 75 percent of the assessor's estimated 44.23 market value for the year, less (1) the balance of any mortgage 44.24 loans and other amounts secured by liens against the property at 44.25 the time of application, including any unpaid special 44.26 assessments but not including property taxes payable during the 44.27 year; and (2) any outstanding deferral and interest. 44.28 Subd. 3. [CERTIFICATION BY COMMISSIONER.] On or before 44.29 December 1, the commissioner shall certify to the county auditor 44.30 of the county in which the qualifying homesteads are located (1) 44.31 each qualifying homestead's base tax; (2) each qualifying 44.32 homestead's maximum allowable deferral under subdivision 2; and 44.33 (3) each qualifying homestead's cumulative deferral and interest 44.34 for all years preceding the next taxes payable year. 44.35 Subd. 4. [CALCULATION OF DEFERRED PROPERTY TAX AMOUNT.] 44.36 When final property tax amounts for the following year have been 45.1 determined, the county auditor shall calculate the "deferred 45.2 property tax amount." The county auditor shall annually, on or 45.3 before April 15, certify to the commissioner of revenue the 45.4 property tax deferral amounts determined under this subdivision 45.5 by property and by owner. 45.6 Subd. 5. [LIMITATION ON TOTAL AMOUNT OF DEFERRED TAXES.] 45.7 On or before September 1 of each year, the commissioner shall 45.8 request, and each county or city assessor shall provide, the 45.9 current year's estimated market value of each property on the 45.10 list supplied by the commissioner that may be eligible for 45.11 deferral under this section for taxes payable in the following 45.12 year. The total amount of deferred taxes and interest on a 45.13 property, when added to (1) the balance owing on any mortgages 45.14 on the property at the time of initial application; and (2) 45.15 other amounts secured by liens on the property at the time of 45.16 the initial application, may not exceed 75 percent of the 45.17 assessor's current estimated market value of the property. 45.18 Sec. 8. [290B.06] [PROPERTY TAX REFUNDS.] 45.19 For purposes of qualifying for the regular property tax 45.20 refund or the special refund for homeowners under chapter 290A, 45.21 the qualifying tax is the full amount of taxes, including the 45.22 deferred portion of the tax. Any regular or special property 45.23 tax refund awarded based upon those property taxes must be taken 45.24 first as a deduction from the amount of the deferred tax for 45.25 that year, and second as a deduction against any outstanding 45.26 deferral from previous years, rather than as a cash payment to 45.27 the homeowner. The commissioner shall cancel any current year's 45.28 deferral or previous years' deferral and interest that is offset 45.29 by the property tax refunds. If the total of the regular and the 45.30 special property tax refund amounts exceeds the sum of the 45.31 deferred tax for the current year and cumulative deferred tax 45.32 and interest for previous years, the commissioner shall then 45.33 remit the excess amount to the homeowner. On or before the date 45.34 on which the commissioner issues property tax refunds, the 45.35 commissioner shall notify program participants of any reduction 45.36 in the deferred amount for the current and previous years 46.1 resulting from property tax refunds. 46.2 Sec. 9. [290B.07] [LIEN; DEFERRED PORTION.] 46.3 Payment by the state to the county treasurer of taxes 46.4 deferred under this section is deemed a loan from the state to 46.5 the program participant. The interest is equal to 80 percent of 46.6 the interest rate determined under section 270.75, subdivision 46.7 5. The commissioner shall compute the interest and maintain 46.8 records of the total deferred amount and interest for each 46.9 participant. Interest shall accrue beginning September 1 of the 46.10 payable year for which the taxes are deferred. The lien created 46.11 under section 272.31 continues to secure payment by the 46.12 taxpayer, or by the taxpayer's successors or assigns, of the 46.13 amount deferred, including interest, with respect to all years 46.14 for which amounts are deferred. The lien for deferred taxes and 46.15 interest has the same priority as any other lien under section 46.16 272.31, except that liens, including mortgages, recorded or 46.17 filed prior to the recording or filing of the notice under 46.18 section 290B.04, subdivision 2, have priority over the lien for 46.19 deferred taxes and interest. A seller's interest in a contract 46.20 for deed, in which a qualifying homeowner is the purchaser or an 46.21 assignee of the purchaser, has priority over deferred taxes and 46.22 interest on deferred taxes, regardless of whether the contract 46.23 for deed is recorded or filed. The lien for deferred taxes and 46.24 interest for future years has the same priority as the lien for 46.25 deferred taxes and interest for the first year, which is always 46.26 higher in priority than any mortgages or other liens filed, 46.27 recorded, or created after the notice recorded or filed under 46.28 section 290B.04, subdivision 2. The county treasurer or auditor 46.29 shall maintain records of the deferred portion and shall list 46.30 the amount of deferred taxes for the year and the cumulative 46.31 deferral and interest for all previous years as a lien against 46.32 the property on the property tax statement. In any 46.33 certification of unpaid taxes for a tax parcel, the county 46.34 auditor shall clearly distinguish between taxes payable in the 46.35 current year, deferred taxes and interest, and delinquent 46.36 taxes. Payment of the deferred portion becomes due and owing at 47.1 the time specified in section 290B.08. Upon receipt of the 47.2 payment, the commissioner shall issue a receipt for it to the 47.3 person making the payment upon request and shall notify the 47.4 auditor of the county in which the parcel is located, within ten 47.5 days, identifying the parcel to which the payment applies. Upon 47.6 receipt by the commissioner of revenue of collected funds in the 47.7 amount of the deferral, the state's loan to the program 47.8 participant is deemed paid in full. 47.9 Sec. 10. [290B.08] [PARTIAL PAYMENT.] 47.10 A homeowner may pay all or part of the deferred taxes to 47.11 the commissioner of revenue. 47.12 Sec. 11. [290B.09] [TERMINATION OF DEFERRAL; PAYMENT OF 47.13 DEFERRED TAXES.] 47.14 Subdivision 1. [TERMINATION.] (a) The deferral of taxes 47.15 granted under this chapter terminates when one of the following 47.16 occurs: 47.17 (1) the property is sold or transferred; 47.18 (2) the death of the qualifying homeowner, except that in 47.19 the case of a married couple, both spouses must be deceased; 47.20 (3) the property no longer qualifies as a homestead; or 47.21 (4) the homeowner notifies the commissioner in writing that 47.22 the homeowner desires to terminate participation in the program. 47.23 (b) A property is not terminated from the program because 47.24 no deferred property tax amount is determined on the homestead 47.25 for any given year after the homestead's initial enrollment into 47.26 the program. 47.27 Subd. 2. [PAYMENT UPON TERMINATION.] Upon the termination 47.28 of the deferral under subdivision 1, the amount of deferred 47.29 taxes and interest plus the recording or filing fees under both 47.30 section 290B.04, subdivision 2, and this subdivision becomes due 47.31 and payable to the commissioner within 90 days of termination of 47.32 the deferral. No additional interest is due on the deferral if 47.33 timely paid. On receipt of payment, the commissioner shall 47.34 within ten days notify the auditor of the county in which the 47.35 parcel is located, identifying the parcel to which the payment 47.36 applies and shall remit the recording or filing fees under 48.1 section 290B.04, subdivision 2, and this subdivision to the 48.2 auditor. A notice of termination of deferral, containing the 48.3 legal description and the recording or filing data for the 48.4 notice of qualification for deferral under section 290B.04, 48.5 subdivision 2, shall be prepared and recorded or filed by the 48.6 county auditor in the same office in which the notice of 48.7 qualification for deferral under section 290B.04, subdivision 2, 48.8 was recorded or filed, and the county auditor shall mail a copy 48.9 of the notice of termination to the property owner. The 48.10 property owner shall pay the recording or filing fees. Upon 48.11 recording or filing of the notice of termination of deferral, 48.12 the notice of qualification for deferral under section 290B.04, 48.13 subdivision 2, and the lien created by it are discharged. If 48.14 the deferral is not timely paid, the penalty, interest, lien, 48.15 forfeiture, and other rules for the collection of ad valorem 48.16 property taxes apply. 48.17 Sec. 12. [290B.10] [STATE REIMBURSEMENT.] 48.18 Subdivision 1. [DETERMINATION; PAYMENT.] The commissioner 48.19 of revenue shall determine the deferred amount of property tax 48.20 in each county, basing determinations on a review of abstracts 48.21 of tax lists submitted by the county auditors under section 48.22 275.29. The commissioner may make changes in the abstracts of 48.23 tax lists as deemed necessary. The commissioner of revenue, 48.24 after such review, shall pay the deferred amount of property tax 48.25 to each county treasurer on or before August 31. 48.26 At least once each year, the commissioner shall report to 48.27 the county auditor the total cumulative amount of deferred taxes 48.28 and interest that constitute a lien against the property. 48.29 The county treasurer shall distribute as part of the 48.30 October settlement the funds received as if they had been 48.31 collected as a part of the property tax. 48.32 Subd. 2. [APPROPRIATION.] An amount sufficient to pay the 48.33 total amount of property tax determined under subdivision 1 is 48.34 annually appropriated from the general fund to the commissioner 48.35 of revenue. 48.36 Sec. 13. [EFFECTIVE DATE.] 49.1 Sections 1 to 12 are effective the day following final 49.2 enactment for deferral of property taxes payable in 1999, and 49.3 thereafter.