Key: (1) language to be deleted (2) new language
Laws of Minnesota 1986 CHAPTER 473-H.F.No. 1886 An act relating to public administration; providing for administration of Hennepin county and Minneapolis public offices; regulating certain property tax appeals; changing notice requirements for special assessments; regulating public funds deposits; amending Minnesota Statutes 1984, sections 144.214, subdivision 1; 278.05, subdivisions 1 and 4; 278.07; 278.08, subdivision 1; 325E.025, subdivision 2; 429.061, subdivision 2; and 475.66, subdivision 2; Minnesota Statutes 1985 Supplement, sections 271.01, subdivision 5; 278.01, subdivision 1; 429.061, subdivision 1; 475.66, subdivision 1; and 475.76, subdivision 1; and Laws 1969, chapter 937, section 1, subdivisions 1, as amended, 9, as amended, 11 and 15, and by adding subdivisions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 1984, section 144.214, subdivision 1, is amended to read: Subdivision 1. [DISTRICTS.] Each county of the state, and the city of St. Paul,and the city of Minneapolis,shall constitute the8988 registration districts of the state. The local registrar in each county shall be the clerk of district court in that county. The local registrar in any city which maintains local registration of vital statistics shall be the health officer. In addition, the state registrar may establish registration districts on United States government reservations, and may appoint a local registrar for each registration district so established. Sec. 2. [CITY EMPLOYEES; TRANSFER.] If section 1 is adopted by the city and county, Hennepin county may employ city personnel who had duties under Minnesota Statutes, section 144.214. The former city employees shall as far as possible retain the benefits, salaries, and rights of their city employment but shall otherwise be subject to Hennepin county personnel rules. Sec. 3. Minnesota Statutes 1985 Supplement, section 271.01, subdivision 5, is amended to read: Subd. 5. [JURISDICTION.] The tax court shall have statewide jurisdiction. Except for an appeal to the supreme court or any other appeal allowed under this subdivision, the tax court shall be the sole, exclusive, and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state, as defined in this subdivision, in those cases that have been appealed to the tax court and in any case that has been transferred by the district court to the tax court. The tax court shall have no jurisdiction in any case that does not arise under the tax laws of the state or in any criminal case or in any case determining or granting title to real property or in any case that is under the jurisdiction of the probate court. The small claims division of the tax court shall have no jurisdiction in any case dealing with property valuation or assessment for property tax purposes until the taxpayer has appealed the valuation or assessment to the town or city board of equalization and to the county board of equalization, except for those taxpayers whose original assessments are determined by the commissioner of revenue.A property owner, other than a public utility, miningcompany, or railroad company for which the original assessmentsare determined by the commissioner of revenue, may not appearbefore the tax court unless a timely appearance in person, bycounsel, or by written communication has been made before thecounty board of equalization as provided in section 274.13, toappeal the assessment of the property, or that he can establishthat he did not receive notice of his market value at least tendays before the county board of review meeting. Notwithstandingthe provisions of this section, if the market value of theproperty is increased or if the classification of the propertyis changed after the notice has been sent to the property owner,the property owner may appear before the tax court without anappearance in person or written communication to the countyboard of equalization.The tax court shall have no jurisdiction in any case involving an order of the state board of equalization unless a taxpayer contests the valuation of his property. Only the taxes, aids and related matters contained in chapters 60A, 69, 124, 270, 272, 273, 274, 275, 276, 277, 278, 279, 285, 287, 288, 290, 290A, 291, 292, 293, 294, 295, 296, 297, 297A, 297B, 298, 299, 299F, 340, 473, 473F, and 477A shall be considered tax laws of this state subject to the jurisdiction of the tax court. This subdivision shall not be construed to prevent an appeal, as provided by law, to an administrative agency, board of equalization, or to the commissioner of revenue. Wherever used in chapter 271, the term commissioner shall mean the commissioner of revenue, unless otherwise specified. Sec. 4. Minnesota Statutes 1985 Supplement, section 278.01, subdivision 1, is amended to read: Subdivision 1. [DETERMINATION OF VALIDITY.] Any person having any estate, right, title, or interest in or lien upon any parcel of land, who claims that such property has been partially, unfairly, or unequally assessed in comparison with other property in the city or county, or that the parcel has been assessed at a valuation greater than its real or actual value, or that the tax levied against the same is illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so levied, may have the validity of his claim, defense, or objection determined by the district court of the county in which the tax is levied or by the tax court by serving two copies of a petition for such determination upon the county auditor and one copy each on the county treasurer and the county attorney and filing the same, with proof of service, in the office of the clerk of the district court before the 16th day of May of the year in which the tax becomes payable.Aproperty owner, other than a public utility, mining company, orthe railroad company for which the original assessments aredetermined by the commissioner of revenue, may not appear beforethe district court or tax court unless a timely appearance inperson, by counsel, or by written communication has been madebefore the county board of equalization as provided in section274.13, to appeal the assessment of the property, or that he canestablish that he did not receive notice of his market value atleast ten days before the county board of review meeting.Notwithstanding the provisions of this section, if the marketvalue of the property is increased or if the classification ofthe property is changed after the notice has been sent to theproperty owner, the property owner may appear before thedistrict court or tax court without an appearance in person orwritten communication to the county board of equalization.The county auditor shall immediately forward one copy of the petition to the appropriate governmental authority in a home rule charter or statutory city or town in which the property is located if that city or town employs its own certified assessor. A copy of the petition shall also be sent to the school board of the school district in which the property is located. A petition for determination under this section may be transferred by the district court to the tax court. An appeal may also be taken to the tax court under chapter 271 at any time following receipt of the valuation notice required by section 273.121 but prior to May 16 of the year in which the taxes are payable. Sec. 5. Minnesota Statutes 1984, section 278.05, subdivision 1, is amended to read: 278.05 [TRIAL OF ISSUES.] Subdivision 1. The petition, without any answer, return, or other pleading thereto, shall be tried at the next term of court. The tax court or district court shall without delay summarily hear and determine the claims, objections or defenses made by the petition and shall direct judgmentaccordinglyto sustain, reduce or increase the amount of taxes due, and the trial shall disregard technicalities and matters of form not affecting the merits. Sec. 6. Minnesota Statutes 1984, section 278.05, subdivision 4, is amended to read: Subd. 4. [SALES RATIO STUDIES AS EVIDENCE.] The sales ratio studies published by the department of revenue, or any part of the studies, or any copy of the studies or records accumulated to prepare the studies which is prepared by the commissioner of revenue for the equalization aid review committee for use in determining school aids shall be admissible in evidence as a public record without the laying of a foundation if the sales prices used in the study are adjusted for the terms of the sale to reflect market value and are adjusted to reflect the difference in the date of sale compared to the assessment date. Additional evidence relevant to the sales ratio study is also admissible. No sales ratio study received into evidence shall be conclusive or binding on the court and evidence of its reliability or unreliability may be introduced by any party including, but not limited to, evidence of inadequate adjustment of sale prices for terms of financing, inadequate adjustment of sales prices to reflect the difference in the date of sale compared to the assessment date, and inadequate sample size. No reduction in value on the grounds of discrimination shall be granted on the basis of a sales ratio study published by the department of revenue unless (a) the sales prices are adjusted for the terms of the sale to reflect market value, (b) the sales prices are adjusted to reflect the difference in the date of sale compared to the assessment date, and (c) there is an adequate sample size, and(d) the median ratio of the class of property of thesubject property in the same county, city, or town of thesubject property is lower than the assessment ratio of thesubject property by at least ten percent.If the above criteria are met and a reduction in value onthe grounds of discrimination is granted based upon the salesratio study, the reduction shall reflect only the differencebetween the assessment/sales ratio of the subject property and110 percent of the median ratio of the class of property of thesubject property. Sec. 7. Minnesota Statutes 1984, section 278.07, is amended to read: 278.07 [JUDGMENT; AMOUNT; COSTS.] Judgment shall be for the amount of the taxes for the year as the court shall determine the same, less the amount paid thereon, if any. If the tax is sustained in the full amount levied or increased, costs and disbursementsshallmay, in the discretion of the court, be taxed and allowed as in delinquent tax proceedings and shall be included in the judgment. If the tax so determined shall be less than the amount thereof as levied, the court may, in its discretion, award disbursements to the petitioner, which shall be taxed and allowed and be deducted from the amount of the taxes as determined. If there be no judgment for taxes, a judgment may be entered determining the right of the parties and for the costs and disbursements as taxed and allowed. Sec. 8. Minnesota Statutes 1984, section 278.08, subdivision 1, is amended to read: Subdivision 1. [TAXES DUE.] Whether or not the tax is sustained in full as levied or increased and section 278.03 notwithstanding, the judgment shall include any interest which has accrued on the taxes for failure to pay the taxes or any part of the taxes as provided in sections 279.01 and 279.03. If the tax is reduced, no penalty shall be included in the judgment because of the failure to pay the reduced tax prior to entry of judgment. After the judgment is entered, it shall be subject to interest and penalty at the rates provided in chapter 279 for delinquent payment of property taxes. Sec. 9. Minnesota Statutes 1985, section 325E.025, subdivision 2, is amended to read: Subd. 2. [PAYMENT RESPONSIBILITY FOR UTILITY SERVICE.] A utility shall not: (1) recover or attempt to recover payment for a tenant's outstanding bill or charge from a landlord, property owner or manager, or manufactured home park owner, as defined in section 327C.01, or manufactured home dealer, as defined in section 327B.01, who has not contracted for the service; (2) condition service on payment of an outstanding bill or other charge for utility service due upon the outstanding account of a previous customer or customers when all of the previous customers have vacated the property; or (3) place a lien on the landlord's or owner's property for a tenant's outstanding bill or charge whether created by local ordinance or otherwise. A utility may recover or attempt to recover payment for a tenant's outstanding bill or charge from a property owner where the manager, acting as the owner's agent, contracted for the utility service. Sec. 10. Minnesota Statutes 1985 Supplement, section 429.061, subdivision 1, is amended to read: Subdivision 1. [CALCULATION, NOTICE.] At any time after the expense incurred or to be incurred in making an improvement shall be calculated under the direction of the council, the council shall determine by resolution the amount of the total expense the municipality will pay, other than the amount, if any, which it will pay as a property owner, and the amount to be assessed. If a county proposes to assess within the boundaries of a city for a county state-aid highway or county highway, the resolution must include the portion of the cost proposed to be assessed within the city. The county shall forward the resolution to the city and it may not proceed with the assessment procedure under this section for property within the city unless the city council adopts a resolution approving the assessment. Thereupon the clerk, with the assistance of the engineer or other qualified person selected by the council, shall calculate the proper amount to be specially assessed for the improvement against every assessable lot, piece or parcel of land, without regard to cash valuation, in accordance with the provisions of section 429.051. The proposed assessment roll shall be filed with the clerk and be open to public inspection. The clerk shall thereupon, under the council's direction, publish notice that the council will meet to consider the proposed assessment. Such notice shall be published in the newspaper at least once and shall be mailed to the owner of each parcel described in the assessment roll. For the purpose of giving mailed notice under this subdivision, owners shall be those shown to be such on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer; but other appropriate records may be used for this purpose. Such publication and mailing shall be no less than two weeks prior to such meeting of the council. Except as to the owners of tax exempt property or property taxes on a gross earnings basis, every property owner whose name does not appear on the records of the county auditor or the county treasurer shall be deemed to have waived such mailed notice unless he has requested in writing that the county auditor or county treasurer, as the case may be, include his name on the records for such purpose. Such notice shall state the date, time, and place of such meeting, the general nature of the improvement, the area proposed to be assessed, the amount to be specially assessed against thatparticular lot, piece, or parcel of land, the total amount of the proposed assessment, that the proposed assessment roll is on the file with the clerk, and that written or oral objections thereto by any property owner will be considered. The notice must also state that no appeal may be taken as to the amount of any assessment adopted pursuant to subdivision 2, unless a written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing. The notice shall also state that an owner may appeal an assessment to district court pursuant to section 429.081 by serving notice of the appeal upon the mayor or clerk of the municipality within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the mayor or clerk. The notice shall also inform property owners of the provisions of sections 435.193 to 435.195 and the existence of any deferment procedure established pursuant thereto in the municipality. In addition, the notice mailed to the owner must include the following information: (1) the amount to be specially assessed against that particular lot, piece, or parcel of land; (2) the right of the property owner to prepay the entire assessment and the person to whom prepayment must be made; (3) whether partial prepayment of the assessment has been authorized by ordinance; (4) the time within which prepayment may be made without the assessment of interest; and (5) the rate of interest to be accrued if the assessment is not prepaid within the required time period. Sec. 11. Minnesota Statutes 1984, section 429.061, subdivision 2, is amended to read: Subd. 2. [ADOPTION; INTEREST.] At such meeting or at any adjournment thereof the council shall hear and pass upon all objections to the proposed assessment, whether presented orally or in writing. The council may amend the proposed assessment as to any parcel and by resolution adopt the same as the special assessment against the lands named in the assessment roll. Notice of any adjournment of the hearing shall be adequate if the minutes of the meeting so adjourned show the time and place when and where the hearing is to be continued. The council may consider any objection to the amount of a proposed assessment as to a specific parcel of land at an adjourned hearing upon further notice to the affected property owner as it deems advisable. At the adjourned hearing the council or a committee of it may hear further written or oral testimony on behalf of the objecting property owner and may consider further written or oral testimony from appropriate city officials and other witnesses as to the amount of the assessment. The council or committee shall prepare a record of the proceedings at the adjourned hearing and written findings as to the amount of the assessment. The amount of the assessment as finally determined by the council shall become a part of the adopted assessment roll. No appeal may be taken as to the amount of any assessment adopted under this section unless written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing. All objections to the assessments not received at the assessment hearing in the manner prescribed by thissectionsubdivision are waived, unless the failure to object at the assessment hearing is due to a reasonable cause. If the adopted assessment differs from the proposed assessment as to any particular lot, piece, or parcel of land, the clerk must mail to the owner a notice stating the amount of the adopted assessment. Owners must also be notified by mail of any changes adopted by the council in interest rates or prepayment requirements from those contained in the notice of the proposed assessment. The assessment, with accruing interest, shall be a lien upon all private and public property included therein, from the date of the resolution adopting the assessment, concurrent with general taxes; but the lien shall not be enforceable against public property as long as it is publicly owned, and during such period the assessment shall be recoverable from the owner of such property only in the manner and to the extent provided in section 435.19. Except as provided below, all assessments shall be payable in equal annual installments extending over such period, not exceeding 30 years, as the resolution determines, payable on the first Monday in January in each year, but the number of installments need not be uniform for all assessments included in a single assessment roll if a uniform criterion for determining the number of installments is provided by the resolution. The first installment of each assessment shall be included in the first tax rolls completed after its adoption and shall be payable in the same year as the taxes contained therein; except that the payment of the first installment of any assessment levied upon unimproved property may be deferred until a designated future year, or until the platting of the property or the construction of improvements thereon, upon such terms and conditions and based upon such standards and criteria as may be provided by resolution of the council. If special assessments against the property have been deferred pursuant to this subdivision, the governmental unit shall file with the county recorder in the county in which the property is located a certificate containing the legal description of the affected property and of the amount deferred. In any event, every assessment the payment of which is so deferred, when it becomes payable, shall be divided into a number of installments such that the last installment thereof will be payable not more than 30 years after the levy of the assessment. All assessments shall bear interest at such rate as the resolution determines, not exceeding eight percent per annum, except that the rate may in any event equal the average annual interest rate on bonds issued to finance the improvement for which the assessments are levied. To the first installment of each assessment shall be added interest on the entire assessment from a date specified in the resolution levying the assessment, not earlier than the date of the resolution, until December 31 of the year in which the first installment is payable, and to each subsequent installment shall be added interest for one year on all unpaid installments; or alternatively, any assessment may be made payable in equal annual installments including principal and interest, each in the amount annually required to pay the principal over such period with interest at such rate as the resolution determines, not exceeding the maximum period and rate specified above. In the latter event no prepayment shall be accepted under subdivision 3 without payment of all installments due to and including December 31 of the year of prepayment, together with the original principal amount reduced only by the amounts of principal included in such installments, computed on an annual amortization basis. When payment of an assessment is deferred, as authorized in this subdivision, interest thereon for the period of deferment may be made payable annually at the same times as the principal installments of the assessment would have been payable if not deferred; or interest for this period may be added to the principal amount of the assessment when it becomes payable; or, if so provided in the resolution levying the assessment, interest thereon to December 31 of the year before the first installment is payable may be forgiven. Sec. 12. Minnesota Statutes 1985 Supplement, section 475.66, subdivision 1, is amended to read: Subdivision 1. All debt service funds shall be deposited and secured as provided in chapter 118, except for amounts invested as authorized in this section, and may be deposited in interest bearing accounts, and such deposits may be evidenced by certificates of deposit with fixed maturities. Sufficient cash for payment of principal, interest, and redemption premiums when due with respect to the obligations for which any debt service fund is created shall be provided by crediting to the fund the collections of tax, special assessment, or other revenues appropriated for that purpose, and depositing all such receipts in a depository bank or banks duly qualified according to law or investing and reinvesting such receipts in securities authorized in this section. Time deposits shall be withdrawable and certificates of deposit and investments shall mature and shall bear interest payable at times and in amounts which, in the judgment of the governing body or its treasurer or other officer or committee to which it has delegated investment decisions, will provide cash at the times and in the amounts required for the purposes of the debt service fund, provided however, that the governing body may authorize the purchase of longer term investments subject to an agreement to repurchase such investments at times and prices sufficient to yield the amounts estimated to be so required. Repurchase agreements may be entered into with (1) a bank qualified as depository of money held in the debt service fund, or with; (2) any national or state bank in the United States which is a member of the federal reserve system and whose combined capital and surplus equals or exceeds $10,000,000, or; (3) a primary reporting dealer in United States government securities to the federal reserve bank of New York; or (4) a securities broker-dealer having its principal executive office in Minnesota, licensed pursuant to chapter 80A, or an affiliate of it, regulated by the Securities and Exchange Commission and maintaining a combined capital and surplus of $40,000,000 or more, exclusive of subordinated debt. Sec. 13. Minnesota Statutes 1984, section 475.66, subdivision 2, is amended to read: Subd. 2. Investments may be held in safekeeping with (1) any federal reserve bank,; (2) any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including but not limited to the bank from which the investment is purchased,or; (3) a primary reporting dealer in United States government securities to the federal reserve bank of New York,; or (4) a securities broker-dealer described in subdivision 1; provided that the municipality's ownership of all securities in which the fund is invested is evidenced by written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, and serial numbers or other distinguishing marks. Sec. 14. Minnesota Statutes 1985 Supplement, section 475.76, subdivision 1, is amended to read: Subdivision 1. A reverse repurchase agreement may be entered into by a municipality, subject to the provisions of this section, only with (1) a bank qualified as depository of funds of the municipality, or with; (2) any national or state bank in the United States which is a member of the Federal Reserve System and whose combined capital and surplus equals or exceeds $10,000,000, or with; (3) a primary reporting dealer in United States government securities to the federal reserve bank of New York; or (4) a securities broker-dealer described in section 475.66, subdivision 1. Sec. 15. Laws 1969, chapter 937, section 1, subdivision 1, as amended by Laws 1973, chapter 132, section 1, Laws 1974, chapter 105, section 1, Laws 1978, chapter 652, section 1, Laws 1980, chapter 448, section 1, and Laws 1982, chapter 491, section 1, is amended to read: Section 1. [MINNEAPOLIS, CITY OF; PERSONNEL.] Subdivision 1. Notwithstanding any provisions of the Minneapolis city charter, veterans preference act, or civil service rule, law, or regulation to the contrary, the positions referred to in subdivisions 2 to1718 of this section shall be in the unclassified service of the city of Minneapolis, and any person presently holding or who shall hereafter be appointed to any of such positions shall serve at the pleasure of the appointing authority indicated in the respective subdivision. Except as herein otherwise provided such persons shall be eligible for the same employee benefits as persons in the classified service. Any incumbent of a position referred to in subdivisions 9 to 16and, subdivision 17, clause (b), and subdivision 18 shall be appointed to the position on the effective date of the subdivisions, and shall have the right to return to his permanent civil service classification pursuant to Laws 1969, Chapter 937, Section 2, except that an incumbent holding a position under subdivision 14 shall not be terminated by the appointing authority for 270 days following the effective date of subdivision 14. For 270 days after the first 270 days the appointing authority under subdivision 14 shall not terminate an incumbent without a vote of approval by a majority of the city council. Sec. 16. Laws 1969, chapter 937, section 1, subdivision 9, as added by Laws 1982, chapter 491, section 2, and amended by Laws 1983, chapter 220, section 1, is amended to read: Subd. 9. The city coordinator of the city of Minneapolis may appoint a person to the following positions to perform the duties and services he may direct: (a) Purchasing agent; (b) Management information services director;(c) Director of labor relations;(d) Director of affirmative action;(e)(c) Manager of auditorium;(f)(d) Director of federal programs;(g)(e) Legislative liaison;(h)(f) Director of energy programs;(i)(g) Manager of licenses and consumer services;(j)(h) Manager, finance - city council;(k)(i) Officer, cable communications. Sec. 17. Laws 1969, chapter 937, section 1, is amended by adding a subdivision to read: Subd. 9a. The city council shall by ordinance indicate the manner in which the following positions are appointed: (a) Director of federal employment and training; (b) Director of inspections; (c) Director of women/minorities business enterprise; (d) Government relations representative; (e) Risk manager; (f) Deputy finance officer; (g) Assistant budget director; (h) Assistant manager of auditorium; (i) Manager of sales and marketing at auditorium; (j) Director of community crime prevention; (k) Deputy purchasing director; (l) Urban corps. coordinator; (m) Assistant director of licenses; (n) Manager of employee benefits; (o) Director of Public Information; (p) Internal auditor; (q) Director of labor relations; (r) Director of affirmative action. The appointing authority shall not terminate an incumbent holding a position listed under clause (b) for 270 days following the effective date of this act, except for misfeasance or malfeasance in office. For 270 days after the first 270 days, the appointing authority shall not terminate an incumbent holding a position listed under this subdivision, except for misfeasance or malfeasance in office, without vote of approval of a majority of the council. Sec. 18. Laws 1969, chapter 937, section 1, subdivision 11, as added by Laws 1982, chapter 491, section 2, is amended to read: Subd. 11. The city clerk of the city of Minneapolis may appoint: (1) an assistant city clerk to perform the duties and services he may direct; and (2) the director of elections. Sec. 19. Laws 1969, chapter 937, section 1, subdivision 15, as added by Laws 1982, chapter 491, section 2, is amended to read: Subd. 15. The health commissioner of the city of Minneapolis may appoint: (1) seven bureau directors; (2) health physicians; and (3) the assistant director of dentistry to perform the duties and services he may direct. Sec. 20. Laws 1969, chapter 937, section 1, is amended by adding a subdivision to read: Subd. 18. The director of civil rights may appoint the manager of civil rights to perform the duties and services the director may direct. Sec. 21. [EFFECTIVE DATES.] Subdivision 1. Sections 1 and 2 are effective the day after the governing bodies of the city of Minneapolis and Hennepin county comply with Minnesota Statutes, section 645.021, subdivision 3. Subd. 2. Sections 3 to 8 are effective for assessments in 1986 and thereafter. Subd. 3. Section 9 is effective retroactive to August 1, 1985. Subd. 4. Sections 10 and 11 are effective for assessments prepared after the date of final enactment of this act. Subd. 5. Sections 15 to 20 are effective the day after the governing body of the city of Minneapolis complies with Minnesota Statutes, section 645.021, subdivision 3. Approved April 1, 1986
Official Publication of the State of Minnesota
Revisor of Statutes