Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1989, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1989
CHAPTER 277-H.F.No. 266
An act relating to taxation; making technical
corrections, clarifications and administrative and
enforcement changes to property taxes, premium taxes,
cigarette taxes, sales taxes, motor vehicle excise
taxes, gasoline and special fuel taxes, taxes on
flight property, liquor taxes, marijuana and
controlled substances taxes, lodging taxes, and the
metropolitan solid waste landfill fee; correcting
dates relating to income maintenance aids; providing
for unmarked vehicles for use by the department of
revenue; providing for cancellation of sales tax
permits; providing for sales of unstamped tobacco
products and liquor to Indian tribes; repealing
obsolete or unnecessary terms or provisions; changing
terms; repealing certain gross earnings taxes;
requiring notification of the commissioner prior to
selling cigarettes at prices other than those presumed
by law; changing cigarette distribution licensing
requirements; converting mill rate limitations to
percentages of market value; changing assessor senior
accreditation requirements; exempting certain property
from property taxes; changing requirements for
valuation and tax deferment for certain property;
allowing homestead classification in certain cases;
providing for subordinate service districts;
authorizing the cities of Mankato and Hopkins to
establish special service districts; increasing and
imposing fees; imposing penalties; appropriating
money; amending Minnesota Statutes 1988, sections
3.983, subdivision 3; 16B.54, subdivision 2; 18.022,
subdivision 2; 18.111, subdivision 1; 38.27,
subdivision 1; 40A.15, subdivision 2; 41A.09,
subdivision 3; 69.011, subdivision 2; 69.54; 88.04,
subdivision 3; 93.55, subdivision 4; 110.71,
subdivision 2; 110B.20; 112.61, subdivisions 2, 3, and
8; 124.155, subdivision 2; 124.2139; 138.053; 162.07,
subdivisions 3 and 4; 162.081, subdivision 4; 164.04,
subdivision 3; 164.05, subdivision 1; 168.012,
subdivision 1; 174.27; 193.145, subdivision 2; 237.35;
256.82, subdivision 1; 256.871, subdivision 6;
256B.041, subdivision 5; 270.06; 270.071, subdivision
6; 270.072, subdivisions 2 and 3; 270.075, subdivision
2; 270.12, subdivision 2; 270.485; 270.60; 272.01,
subdivision 2; 272.02, subdivision 1; 273.01; 273.061,
subdivisions 1 and 2; 273.1102, subdivision 3;
273.111, subdivision 3; 273.112, subdivision 3, and by
adding a subdivision; 273.124, subdivisions 1, 8, 9,
12, 13, and by adding a subdivision; 273.13,
subdivisions 22 and 23; 273.135, subdivision 2;
273.1391, subdivision 2; 273.1393; 273.1398,
subdivisions 1, 4, 5, and 6; 275.011, subdivisions 1
and 2; 275.07, subdivision 3; 275.077, subdivision 2;
275.28, subdivision 1; 275.56; 275.58 subdivision 1;
278.01, subdivision 1; 278.03; 278.05, subdivisions 4
and 5; 279.01, subdivisions 1 and 3; 279.37,
subdivision 7; 290A.03, subdivision 12; 296.18,
subdivision 1; 297.01, subdivision 13, and by adding a
subdivision; 297.03, subdivision 6; 297.04,
subdivisions 4, 5, and 6; 297.041, subdivisions 1, 2,
and 4; 297.08, subdivision 1; 297.31, by adding a
subdivision; 297.33, subdivisions 4, 5, 6, 7, and 8;
297A.06; 297A.17; 297A.20; 297A.21, subdivision 4;
297A.25, subdivisions 11 and 16; 297B.01, subdivision
5; 297B.02, subdivision 1; 297B.025, subdivision 2;
297B.03; 297C.03, subdivision 1; 297C.09; 297D.13, by
adding a subdivision; 298.28, subdivisions 3 and 4;
298.282, subdivision 2; 325D.32, subdivision 10;
325D.37, by adding a subdivision; 366.27; 373.40,
subdivisions 4 and 6; 375.167, subdivision 1; 375.18,
subdivision 3; 375.192, subdivision 2; 375.555;
383A.03, subdivision 4; 383A.411, subdivision 5;
383A.49, subdivision 2; 383B.152; 383B.245; 383B.73,
subdivisions 1 and 2; 383C.42, subdivision 1; 398A.04,
subdivision 8; 412.251; 412.531, subdivision 1;
414.035; 414.041, subdivision 7; 426.04; 447.10;
449.06; 449.08; 449.09; 449.10; 450.19; 450.25;
458A.10; 458A.31, subdivision 1; 459.06, subdivision
1; 459.14, subdivision 2, and by adding a subdivision;
462.396, subdivision 2; 469.012, by adding a
subdivision; 469.033, subdivision 6; 469.040,
subdivision 2; 469.053, subdivisions 4 and 6; 469.107,
subdivision 1; 469.174, subdivision 8; 469.175,
subdivision 7; 469.176, subdivision 4c; 469.180,
subdivision 2; 469.187; 469.188; 469.190, subdivision
1; 471.191, subdivision 2; 471.1921; 471.571,
subdivisions 1 and 2; 473.325, subdivision 2; 473.446,
subdivision 1; 473.661, subdivision 3; 473.667,
subdivision 9; 473.671; 473.843, subdivision 1;
473.882, subdivision 3; 473.883, subdivision 6;
475.53, subdivision 4; 477A.011, subdivision 15;
477A.013, subdivision 1; 641.23; Laws 1988, chapter
719, articles 7, section 9; 8, section 37; and 12,
section 29; proposing coding for new law in Minnesota
Statutes, chapters 276; 297; 297A; 297C; 297D; 325D;
and 365B; repealing Minnesota Statutes 1988, sections
38.17; 38.27, subdivision 3; 38.28; 69.36; 275.57;
275.58, subdivision 4; 276.13; 276.14; 295.01,
subdivisions 4, 5, 6, 7, and 8; 295.15; 295.21;
295.23; 295.24; 295.25; 295.27; 295.29; 295.30;
295.31; 297.01, subdivision 15; 297.03, subdivision
12; 297.04, subdivision 10; 297.33, subdivision 13;
297A.19; 297A.253; 297C.03, subdivisions 4 and 4a;
423.376; 423.47; 423.807; 424.12; 424.13; 477A.018;
and 477A.019; Laws 1988, chapter 719, article 8,
section 35.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
DEPARTMENT SALES AND SPECIAL TAXES
Section 1. Minnesota Statutes 1988, section 16B.54,
subdivision 2, is amended to read:
Subd. 2. [VEHICLES.] (a) [ACQUISITION FROM AGENCY;
APPROPRIATION.] The commissioner may direct an agency to make a
transfer of a passenger motor vehicle or truck presently
assigned to it. The transfer must be made to the commissioner
for use in the central motor pool. The commissioner shall
reimburse an agency whose motor vehicles have been paid for with
funds dedicated by the constitution for a special purpose and
which are assigned to the central motor pool. The amount of
reimbursement for a motor vehicle is its average wholesale price
as determined from the midwest edition of the national
automobile dealers association official used car guide.
(b) [PURCHASE.] To the extent that funds are available for
the purpose, the commissioner may purchase or otherwise acquire
additional passenger motor vehicles and trucks necessary for the
central motor pool. The title to all motor vehicles assigned to
or purchased or acquired for the central motor pool is in the
name of the department of administration.
(c) [TRANSFER AT AGENCY REQUEST.] On the request of an
agency, the commissioner may transfer to the central motor pool
any passenger motor vehicle or truck for the purpose of
disposing of it. The department or agency transferring the
vehicle or truck shall be paid for it from the motor pool
revolving account established by this section in an amount equal
to two-thirds of the average wholesale price of the vehicle or
truck as determined from the midwest edition of the National
Automobile Dealers Association official used car guide.
(d) [VEHICLES; MARKING.] The commissioner shall provide for
the uniform marking of all motor vehicles. Motor vehicle colors
must be selected from the regular color chart provided by the
manufacturer each year. The commissioner may further provide by
rule for the use of motor vehicles without uniform coloring or
marking by the governor, the lieutenant governor, the division
of criminal apprehension, arson investigators of the division of
fire marshal in the department of public safety, financial
institutions division of the department of commerce, the
department of revenue, and the office of the attorney general.
Sec. 2. Minnesota Statutes 1988, section 41A.09,
subdivision 3, is amended to read:
Subd. 3. [PAYMENTS FROM FUND.] The commissioner of revenue
shall make cash payments from the development fund to producers
of ethanol or agricultural grade alcohol, for use as a motor
fuel, located in the state. The amount of the payment for each
producer's annual production shall be as follows:
(a) For each gallon of ethanol produced:
(1) For the period beginning July 1, 1986, and ending June
30, 1987, 15 cents per gallon;
(2) For the period beginning July 1, 1987, and ending June
30, 2000, 20 cents per gallon.
(b) For each gallon produced of agricultural grade alcohol
of a purity of at least 50 percent but not more than 90 percent
and designed to be used in conjunction with diesel fuel in an
engine's internal combustion process, for the period beginning
July 1, 1987, and ending June 30, 2000, 11 cents per gallon.
The total payments from the fund to all producers may not
exceed $200,000 during the period beginning July 1, 1986, and
ending June 30, 1987, and may not exceed $10,000,000 in any
fiscal year during the period beginning July 1, 1987, and ending
June 30, 2000. Total payments to any producer from the fund in
any fiscal year may not exceed $3,000,000.
By the last day of October, January, April, and July, each
producer shall file a claim for payment for production during
the preceding three calendar months. The volume of production
must be verified by a certified financial audit performed by an
independent certified public accountant using generally accepted
accounting procedures.
Payments shall be made November 15, February 15, May 15,
and August 15.
Sec. 3. Minnesota Statutes 1988, section 69.011,
subdivision 2, is amended to read:
Subd. 2. [QUALIFICATION FOR FIRE OR POLICE STATE AID.] (a)
In order to qualify to receive fire state aid, on or before July
1 March 15, annually, in conjunction with the financial report
required pursuant to section 69.051, the clerk of each
municipality having a duly organized fire department as provided
in subdivision 4, or the secretary of each independent nonprofit
firefighting corporation having a subsidiary incorporated
firefighters' relief association whichever is applicable, and
the fire chief, shall jointly certify the existence of the
municipal fire department or of the independent nonprofit
firefighting corporation, whichever is applicable, which meets
the minimum qualification requirements set forth in this
subdivision, and the fire personnel and equipment of the
municipal fire department or the independent nonprofit
firefighting corporation as of the preceding December 31.
Certification shall be made to the commissioner on a form
prescribed by the commissioner and shall include any other facts
the commissioner may require. The certification shall be made
to the commissioner in duplicate. Each copy of the certificate
shall be duly executed and deemed an original. The commissioner
shall forward one copy to the auditor of the county wherein the
fire department is located and retain one copy.
(b) On or before July 1 March 15 annually the clerk of each
municipality having a duly organized police department and
having a duly incorporated relief association shall certify that
fact to the county auditor of the county where the police
department is located and to the commissioner on a form
prescribed by the commissioner together with the other facts the
commissioner or auditor may require.
On or before July 1 March 15 annually, the clerk of each
municipality and the auditor of each county employing one or
more peace officers as defined in subdivision 1, clause (h),
shall certify the number of such peace officers to the
commissioner on forms prescribed by the commissioner. Credit
for officers employed less than a full year shall be
apportioned. Each full month of employment of a qualifying
officer during the calendar year shall entitle the employing
municipality or county to credit for 1/12 of the payment for
employment of a peace officer for the entire year. For purposes
of sections 69.011 to 69.051, employment of a peace officer
shall commence when the peace officer is entered on the payroll
of the respective municipal police department or county
sheriff's department. No peace officer shall be included in the
certification of the number of peace officers by more than one
municipality or county for the same month.
Sec. 4. Minnesota Statutes 1988, section 69.54, is amended
to read:
69.54 [SURCHARGE ON PREMIUMS TO RESTORE DEFICIENCY IN
SPECIAL FUND.]
The commissioner shall order and direct a surcharge to be
collected of two percent of the fire, lightning, and sprinkler
leakage gross premiums, less return premiums, on all direct
business received by any licensed foreign or domestic fire
insurance company on property in this city of the first class,
or by its agents for it, in cash or otherwise. This surcharge
shall be due and payable from these companies to the state
treasurer on March 31, May 31, and November 30 October 31 of
each calendar year, and if not paid within 30 days after these
dates, a penalty of ten percent shall accrue thereon and
thereafter this sum and penalty shall draw interest at the rate
of one percent per month until paid.
Sec. 5. Minnesota Statutes 1988, section 168.012,
subdivision 1, is amended to read:
Subdivision 1. (a) The following vehicles are exempt from
the provisions of this chapter requiring payment of tax and
registration fees, except as provided in subdivision 1c:
(1) vehicles owned and used solely in the transaction of
official business by representatives of foreign powers, by the
federal government, the state, or any political subdivision;
(2) vehicles owned and used exclusively by educational
institutions and used solely in the transportation of pupils to
and from such institutions;
(3) vehicles owned by nonprofit charities and used
exclusively to transport handicapped persons for educational
purposes;
(4) vehicles owned and used by honorary consul or consul
general of foreign governments.
(b) Vehicles owned by the federal government, municipal
fire apparatus, police patrols and ambulances, the general
appearance of which is unmistakable, shall not be required to
register or display number plates.
(c) Unmarked vehicles used in general police work, arson
investigations, and passenger vehicles, station wagons, and
buses owned or operated by the department of corrections shall
be registered and shall display passenger vehicle classification
license number plates which shall be furnished by the registrar
at cost. Original and renewal applications for these passenger
vehicle license plates authorized for use in general police work
and for use by the department of corrections must be accompanied
by a certification signed by the appropriate chief of police if
issued to a police vehicle, the appropriate sheriff if issued to
a sheriff's vehicle, the commissioner of corrections if issued
to a department of corrections vehicle, or the appropriate
officer in charge if issued to a vehicle of any other law
enforcement agency. The certification must be on a form
prescribed by the commissioner and state that the vehicle will
be used exclusively for a purpose authorized by this section.
(d) Unmarked vehicles used by the department of revenue in
conducting seizures or criminal investigations must be
registered and must display passenger vehicle classification
license number plates which shall be furnished at cost by the
registrar. Original and renewal applications for these
passenger vehicle license plates must be accompanied by a
certification signed by the commissioner of revenue. The
certification must be on a form prescribed by the commissioner
and state that the vehicles will be used exclusively for the
purposes authorized by this section.
(e) All other motor vehicles shall be registered and
display tax exempt number plates which shall be furnished by the
registrar at cost, except as provided in subdivision 1c. All
vehicles required to display tax exempt number plates shall have
the name of the state department or public subdivision on the
vehicle plainly displayed on both sides thereof in letters not
less than 2-1/2 inches high and one-half inch wide; except that
each state hospital and institution for the mentally ill and
mentally retarded may have one vehicle without the required
identification on the sides of the vehicle. Such identification
shall be in a color giving contrast with that of the part of the
vehicle on which it is placed and shall endure throughout the
term of the registration. The identification must not be on a
removable plate or placard and shall be kept clean and visible
at all times; except that a removable plate or placard may be
utilized on vehicles leased or loaned to a political subdivision.
Sec. 6. Minnesota Statutes 1988, section 270.06, is
amended to read:
270.06 [POWERS AND DUTIES.]
The commissioner of revenue shall:
(1) have and exercise general supervision over the
administration of the assessment and taxation laws of the state,
over assessors, town, county, and city boards of review and
equalization, and all other assessing officers in the
performance of their duties, to the end that all assessments of
property be made relatively just and equal in compliance with
the laws of the state;
(2) confer with, advise and give the necessary
instructions and directions to local assessors and local boards
of review throughout the state as to their duties under the laws
of the state;
(3) direct proceedings, actions, and prosecutions to be
instituted to enforce the laws relating to the liability and
punishment of public officers and officers and agents of
corporations for failure or negligence to comply with the
provisions of the laws of this state governing returns of
assessment and taxation of property, and cause complaints to be
made against local assessors, members of boards of equalization,
members of boards of review, or any other assessing or taxing
officer, to the proper authority, for their removal from office
for misconduct or negligence of duty;
(4) require county attorneys to assist in the commencement
of prosecutions in actions or proceedings for removal,
forfeiture and punishment for violation of the laws of this
state in respect to the assessment and taxation of property in
their respective districts or counties;
(5) require town, city, county, and other public officers
to report information as to the assessment of property,
collection of taxes received from licenses and other sources,
and such other information as may be needful in the work of the
department of revenue, in such form and upon such blanks as the
commissioner may prescribe;
(6) require individuals, copartnerships, companies,
associations, and corporations to furnish information concerning
their capital, funded or other debt, current assets and
liabilities, earnings, operating expenses, taxes, as well as all
other statements now required by law for taxation purposes;
(7) summon witnesses to appear and give testimony, and to
produce books, records, papers and documents relating to any tax
matter which the commissioner may have authority to investigate
or determine. Provided, that any summons which does not
identify the person or persons with respect to whose tax
liability the summons is issued may be served only if (a) the
summons relates to the investigation of a particular person or
ascertainable group or class of persons, (b) there is a
reasonable basis for believing that such person or group or
class of persons may fail or may have failed to comply with any
tax law administered by the commissioner, (c) the information
sought to be obtained from the examination of the records (and
the identity of the person or persons with respect to whose
liability the summons is issued) is not readily available from
other sources, (d) the summons is clear and specific as to the
information sought to be obtained, and (e) the information
sought to be obtained is limited solely to the scope of the
investigation. Provided further that the party served with a
summons which does not identify the person or persons with
respect to whose tax liability the summons is issued shall have
the right, within 20 days after service of the summons, to
petition the district court for the judicial district in which
lies the county in which that party is located for a
determination as to whether the commissioner of revenue has
complied with all the requirements in (a) to (e), and thus,
whether the summons is enforceable. If no such petition is made
by the party served within the time prescribed, the summons
shall have the force and effect of a court order;
(8) To cause the deposition of witnesses residing within or
without the state, or absent therefrom, to be taken, upon notice
to the interested party, if any, in like manner that depositions
of witnesses are taken in civil actions in the district court,
in any matter which the commissioner may have authority to
investigate or determine;
(9) investigate the tax laws of other states and countries
and to formulate and submit to the legislature such legislation
as the commissioner may deem expedient to prevent evasions of
assessment and taxing laws, and secure just and equal taxation
and improvement in the system of assessment and taxation in this
state;
(10) consult and confer with the governor upon the subject
of taxation, the administration of the laws in regard thereto,
and the progress of the work of the department of revenue, and
furnish the governor, from time to time, such assistance and
information as the governor may require relating to tax matters;
(11) transmit to the governor, on or before the third
Monday in December of each even-numbered year, and to each
member of the legislature, on or before November 15 of each even
numbered year, the report of the department of revenue for the
preceding years, showing all the taxable property in the state
and the value of the same, in tabulated form;
(12) inquire into the methods of assessment and taxation
and ascertain whether the assessors faithfully discharge their
duties, particularly as to their compliance with the laws
requiring the assessment of all property not exempt from
taxation;
(13) exercise and perform such further powers and duties
as may be required or imposed upon the commissioner of revenue
by law;
(14) promulgate rules having the force and effect of law,
for the administration and enforcement of the property tax;
(15) execute and administer any agreement with the
secretary of the treasury of the United States regarding the
exchange of information and administration of the tax laws of
both the United States and the state of Minnesota;
(16) administer and enforce the provisions of sections
325.64 to 325.76 325D.30 to 325D.42, the Minnesota unfair
cigarette sales act.; and
(17) authorize the use of unmarked motor vehicles to
conduct seizures or criminal investigations pursuant to the
commissioner's authority.
Sec. 7. Minnesota Statutes 1988, section 270.60, is
amended to read:
270.60 [TAX REFUND AGREEMENTS WITH INDIANS.]
The commissioner of revenue is authorized to enter into a
tax refund agreement with the governing body of any Sioux or
Chippewa reservation in Minnesota. The agreement may provide
for a mutually agreed upon amount as a refund to the governing
body of any sales or excise tax paid by the Indian residents of
a reservation into the state treasury, or for an amount which
measures the economic value of an agreement by the council to
pay the equivalent of the state sales tax on items included in
the sales tax base but exempt on the reservation,
notwithstanding any other law which limits the refundment of
taxes.
The commissioner of revenue is also authorized to enter
into a tax refund agreement with the governing body of any
federally recognized Indian reservation in Minnesota, for refund
of a mutually agreed upon amount of the cigarette taxes
collected from sales on reservations or trust lands of an Indian
tribe to the established governing body of the tribe having
jurisdiction over the reservation or trust land on which the
sale is made.
There is annually appropriated from the general fund to the
commissioner of revenue the amounts necessary to make the
refunds provided in this section.
Sec. 8. Minnesota Statutes 1988, section 296.18,
subdivision 1, is amended to read:
Subdivision 1. [GASOLINE OR SPECIAL FUEL USED IN OTHER
THAN MOTOR VEHICLES.] Any person who shall buy and use gasoline
for a qualifying purpose other than use in motor vehicles,
snowmobiles, or motorboats, or special fuel for a qualifying
purpose other than use in licensed motor vehicles, and who shall
have paid the Minnesota excise tax directly or indirectly
through the amount of the tax being included in the price of the
gasoline or special fuel, or otherwise, shall be reimbursed and
repaid the amount of the tax paid upon filing with the
commissioner a signed claim in writing in the form and
containing the information the commissioner shall require and
accompanied by the original invoice thereof. By signing any
such claim which is false or fraudulent, the applicant shall be
subject to the penalties provided in this section for knowingly
making a false claim. The claim shall set forth the total
amount of the gasoline so purchased and used by the applicant
other than in motor vehicles, or special fuel so purchased and
used by the applicant other than in licensed motor vehicles, and
shall state when and for what purpose it was used. When a claim
contains an error in computation or preparation, the
commissioner is authorized to adjust the claim in accordance
with the evidence shown on the claim or other information
available to the commissioner. The commissioner, on being
satisfied that the claimant is entitled to the payments, shall
approve the claim and transmit it to the commissioner of
finance. No repayment shall be made unless the claim and
invoice shall be filed with the commissioner within one year
from the date of the purchase. The postmark on the envelope in
which the claim is mailed shall determine the date of filing.
The words "gasoline" or "special fuel" as used in this
subdivision do not include aviation gasoline or special fuel for
aircraft. Gasoline or special fuel bought and used for a
"qualifying purpose" means:
(1) Gasoline or special fuel used in carrying on a trade or
business, used on a farm situated in Minnesota, and used for a
farming purpose. "Farm" and "farming purpose" have the meanings
given them in section 6420(c)(2), (3), and (4) of the Internal
Revenue Code of 1954 1986, as amended through December 31, 1983
1988.
(2) Gasoline or special fuel used for off-highway business
use. "Off-highway business use" means any use by a person in
that person's trade, business, or activity for the production of
income. "Off-highway business use" does not include use as a
fuel in a motor vehicle which, at the time of use, is registered
or is required to be registered for highway use under the laws
of any state or foreign country.
(3) Gasoline or special fuel placed in the fuel tanks of
new motor vehicles, manufactured in Minnesota, and shipped by
interstate carrier to destinations in other states or foreign
countries.
Sec. 9. Minnesota Statutes 1988, section 297.041,
subdivision 1, is amended to read:
Subdivision 1. [WHOLESALERS.] Any A wholesaler who
furnishes a surety bond in a sum satisfactory to the
commissioner shall be permitted to may set aside, without
affixing the stamps required by this chapter, that the part of
the wholesaler's stock necessary for the conduct of business in
making to make sales to the established governing body of any an
Indian tribe recognized by the United States Department of
Interior without paying the tax required by this chapter. The
unstamped stock shall be kept separate and apart from stamped
stock. Every wholesaler shall, at the time of When shipping or
delivering any of the unstamped stock to an Indian tribal
organization, the wholesaler shall make a true duplicate invoice
which shall. The invoice must show the complete details of the
sale or delivery and shall transmit. The wholesaler must send
the duplicate to the commissioner not later than the 18th day of
the following calendar month. Failure If the wholesaler fails
to comply with the requirements of this section shall cause, the
commissioner to shall revoke the permission granted to the
wholesaler to maintain keep a stock of unstamped goods which may
be unstamped.
Sec. 10. Minnesota Statutes 1988, section 297.041,
subdivision 2, is amended to read:
Subd. 2. [RETAILERS.] Retailers who are Indian tribal
organizations may maintain keep unstamped stock intended for
sale to qualified purchasers.
Sec. 11. Minnesota Statutes 1988, section 297.041,
subdivision 4, is amended to read:
Subd. 4. [SALES TO NONQUALIFIED BUYERS.] Any A retailer
who sells or otherwise disposes of any unstamped cigarettes
other than to a qualified purchaser shall collect from the buyer
or transferee the tax imposed by section 297.02, subdivision 1,
and remit the tax to the department of revenue at the same time
and manner as required by section 297.07. In the event If the
retailer fails to collect the tax from the buyer or transferee,
or fails to remit the tax, the retailer shall be is personally
responsible for the tax and the commissioner may seize any
cigarettes destined to be delivered to the retailer. The
cigarettes so seized shall be considered contraband and be
subject to the procedures outlined in section 297.08,
subdivision 3. The proceeds of the sale of any such the
cigarettes may, after deducting all costs and expenses, be
applied to any tax liability owed by the retailer after
deducting all costs and expenses.
The provisions of This section shall does not relieve the
buyer or possessor of unstamped cigarettes from personal
liability for the tax.
Sec. 12. [297.335] [SALES TO INDIAN TRIBES.]
Subdivision 1. [WHOLESALERS.] A wholesaler may set aside
the part of the wholesaler's stock necessary to make sales to
the established governing body of an Indian tribe recognized by
the United States Department of the Interior without paying the
tax required by this chapter. When shipping or delivering
untaxed stock to an Indian tribal organization, the wholesaler
shall make a true duplicate invoice. The invoice must show the
complete details of the sale or delivery. The wholesaler must
send the duplicate to the commissioner not later than the 18th
day of the following calendar month. If the wholesaler fails to
comply with this section, the commissioner shall revoke the
permission granted to the wholesaler to keep a stock of untaxed
goods.
Subd. 2. [RETAILERS.] Retailers who are Indian tribal
organizations may keep untaxed stock intended for sale to
qualified purchasers.
Subd. 3. [QUALIFIED PURCHASERS.] A qualified purchaser of
untaxed tobacco means only an enrolled member of the Indian
tribe offering the tobacco for sale.
Subd. 4. [SALES TO NONQUALIFIED BUYERS.] A retailer who
sells or otherwise disposes of untaxed tobacco other than to a
qualified purchaser shall collect from the buyer or transferee
the tax imposed by this chapter and remit the tax to the
department of revenue at the same time and manner as required by
this chapter. If the retailer fails to collect the tax from the
buyer or transferee, or fails to remit the tax, the retailer is
personally responsible for the tax, and the commissioner may
seize any tobacco destined to be delivered to the retailer. The
procedures for seized contraband outlined in section 297.08,
subdivision 3, apply to the seized tobacco. The proceeds of the
sale of the tobacco may be applied to any tax liability owed by
the retailer after deducting all costs and expenses.
This section does not relieve the buyer or possessor of
untaxed tobacco from personal liability for the tax.
Sec. 13. Minnesota Statutes 1988, section 297A.06, is
amended to read:
297A.06 [PERMIT.]
After compliance with sections 297A.04 and 297A.28, when
security is required, the commissioner shall issue to each
applicant a separate permit for each place of business within
Minnesota. A permit shall be valid until canceled or revoked
but shall not be assignable and shall be valid only for the
person in whose name it is issued and for the transaction of
business at the place designated therein. It shall at all times
be conspicuously displayed at the place for which issued.
Sec. 14. [297A.065] [CANCELLATION OF PERMITS.]
The commissioner may cancel a permit when one of the
following conditions occurs:
(1) the permit holder has not filed a sales or use tax
return for one year or more;
(2) the permit holder has not reported any sales or use tax
liability on the permit holder's returns for two or more years;
or
(3) the permit holder requests cancellation of the permit.
Sec. 15. Minnesota Statutes 1988, section 297A.17, is
amended to read:
297A.17 [TAX TO BE COLLECTED; STATUS AS DEBT.]
The use tax required to be collected by the retailer
constitutes a debt owed by the retailer to Minnesota and shall
be a debt from the purchaser to the retailer recoverable at law
in the same manner as other debts. A retailer who does not
maintain a place of business within this state, as defined in
section 297A.21, subdivision 1, shall not be indebted to
Minnesota for amounts of use tax which it was required to
collect but did not collect unless the retailer knew or had been
advised by the commissioner of its obligation to collect the use
tax.
Sec. 16. Minnesota Statutes 1988, section 297A.20, is
amended to read:
297A.20 [VIOLATIONS.]
Any person violating sections section 297A.16, or 297A.18
, or 297A.19 shall be guilty of a misdemeanor.
Sec. 17. Minnesota Statutes 1988, section 297A.21,
subdivision 4, is amended to read:
Subd. 4. [REQUIRED REGISTRATION BY OUT-OF-STATE RETAILER
NOT MAINTAINING PLACE OF BUSINESS IN MINNESOTA.] (a) A retailer
making retail sales from outside this state to a destination
within this state and not maintaining a place of business in
this state shall file an application for a permit pursuant to
section 297A.04 and shall collect and remit the use tax as
provided in section 297A.16 if the retailer engages in the
regular or systematic soliciting of sales from potential
customers in this state by:
(1) the distribution, by mail or otherwise, without regard
to the state from which such distribution originated or in which
the materials were prepared, of catalogs, periodicals,
advertising flyers, or other written solicitations of business
to customers in this state;
(2) display of advertisements on billboards or other
outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals
the circulation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national or
regional publication or a limited regional edition in which this
state is included of a broader regional or national publication
which are not placed in other geographically defined editions of
the same issue of the same publication;
(6) advertisements in regional or national publications in
an edition which is not by its contents geographically targeted
to Minnesota but which is sold over the counter in Minnesota or
by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television
station located in Minnesota; or
(8) any other solicitation by telegraphy, telephone,
computer data base, cable, optic, microwave, or other
communication system.
(b) The location within or without this state of vendors
independent of the retailer which provide products or services
to the retailer in connection with its solicitation of customers
within this state, including such products and services as
creation of copy, printing, distribution, and recording, is not
to be taken into account in the determination of whether the
retailer is required to collect use tax. Paragraph (a) shall be
construed without regard to the state from which distribution of
the materials originated or in which they were prepared.
(c) A retailer not maintaining a place of business in this
state shall be presumed, subject to rebuttal, to be engaged in
regular solicitation within this state if it (1) engages in any
of the activities in paragraph (a) and makes 100 or more retail
sales from outside this state to destinations within this state
during a period of 12 consecutive months., or (2) makes ten or
more retail sales totaling more than $100,000 from outside this
state to destinations within this state during a period of 12
consecutive months.
(d) A retailer not maintaining a place of business in this
state shall not be required to collect use tax imposed by any
local governmental unit or subdivision of this state and this
section does not subject such a retailer to any regulation of
any local unit of government or subdivision of this state.
Sec. 18. Minnesota Statutes 1988, section 297A.25,
subdivision 11, is amended to read:
Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from
all sales, including sales in which title is retained by a
seller or a vendor or is assigned to a third party under an
installment sale or lease purchase agreement under section
465.71, of tangible personal property to, and all storage, use
or consumption of such property by, the United States and its
agencies and instrumentalities, the University of Minnesota,
state universities, community colleges, technical institutes,
state academies, and political subdivisions of the state are
exempt. Sales exempted by this subdivision include sales under
section 297A.01, subdivision 3, clause (f). This exemption
shall not apply to building, construction or reconstruction
materials purchased by a contractor or a subcontractor as a part
of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for
use in the construction, alteration or repair of a building or
facility. This exemption does not apply to construction
materials purchased by tax exempt entities or their contractors
to be used in constructing buildings or facilities which will
not be used principally by the tax exempt entities. This
exemption does not apply to the leasing of a motor vehicle as
defined in section 297B.01, subdivision 5, except for leases
entered into by the United States or its agencies or
instrumentalities.
Sec. 19. Minnesota Statutes 1988, section 297A.25,
subdivision 16, is amended to read:
Subd. 16. [SALES TO NONPROFIT GROUPS.] The gross receipts
from the sale of tangible personal property to, and the storage,
use or other consumption of such property by, any corporation,
society, association, foundation, or institution organized and
operated exclusively for charitable, religious or educational
purposes if the property purchased is to be used in the
performance of charitable, religious or educational functions,
or any senior citizen group or association of groups that in
general limits membership to persons age 55 or older and is
organized and operated exclusively for pleasure, recreation and
other nonprofit purposes, no part of the net earnings of which
inures to the benefit of any private shareholders, are exempt.
Sales exempted by this subdivision include sales pursuant to
section 297A.01, subdivision 3, clauses (d) and (f). This
exemption shall not apply to building, construction or
reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type
of contract with a guaranteed maximum price covering both labor
and materials for use in the construction, alteration or repair
of a building or facility. This exemption does not apply to
construction materials purchased by tax exempt entities or their
contractors to be used in constructing buildings or facilities
which will not be used principally by the tax exempt entities.
This exemption does not apply to the leasing of a motor vehicle
as defined in section 297B.01, subdivision 5.
Sec. 20. Minnesota Statutes 1988, section 297B.01,
subdivision 5, is amended to read:
Subd. 5. "Motor vehicle" means any self-propelled vehicle
not operated exclusively upon railroad tracks and any vehicle
propelled or drawn by a self-propelled vehicle and for which
registration is required by chapter 168. Motor vehicle includes
vehicles known as trackless trolleys which are propelled by
electric power obtained from overhead trolley wires but not
operated upon rails, except snowmobiles, for which registration
is required by chapter 168, but not including and motor vehicles
that are purchased on Indian reservations where the tribal
council has entered into a motor vehicle excise tax refund
agreement with the state of Minnesota. Motor vehicle does not
include snowmobiles, house trailers, or manufactured homes.
Sec. 21. Minnesota Statutes 1988, section 297B.02,
subdivision 1, is amended to read:
Subdivision 1. [RATE.] There is imposed an excise tax at
the rate provided in chapter 297A on the purchase price of any
motor vehicle purchased or acquired, either in or outside of the
state of Minnesota, which is required to be registered under the
laws of this state.
The excise tax is also imposed on the purchase price of
motor vehicles purchased or acquired on Indian reservations when
the tribal council has entered into a motor vehicle excise tax
refund agreement with the state of Minnesota.
Sec. 22. Minnesota Statutes 1988, section 297B.025,
subdivision 2, is amended to read:
Subd. 2. [COLLECTOR VEHICLES.] A passenger automobile that
is currently registered under section 168.10, subdivisions
subdivision 1a, 1b, 1c, and 1d, or 1h, shall be taxed under
section 297B.02, subdivision 3, and the registrar shall not
designate as an above-market automobile a passenger automobile
registered under those subdivisions. If the vehicle is
subsequently registered in another class not under section
168.10, subdivision 1a, 1b, 1c, 1d, or 1h, within one year of
the date of registration under those subdivisions, it shall be
subject to the full excise tax imposed under subdivision 1.
Sec. 23. Minnesota Statutes 1988, section 297B.03, is
amended to read:
297B.03 [EXEMPTIONS.]
There is specifically exempted from the provisions of this
chapter and from computation of the amount of tax imposed by it
the following:
(1) Purchase or use, including use under a lease purchase
agreement or installment sales contract made pursuant to section
465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in
and subject to the conditions provided in section 297A.25,
subdivision 18.
(2) Purchase or use of any motor vehicle by any person who
was a resident of another state at the time of the purchase and
who subsequently becomes a resident of Minnesota, provided the
purchase occurred more than 60 days prior to the date such
person began residing in the state of Minnesota.
(3) Purchase or use of any motor vehicle by any person
making a valid election to be taxed under the provisions of
section 297A.211.
(4) Purchase or use of any motor vehicle previously
registered in the state of Minnesota by any corporation or
partnership when such transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code of
1954 1986, as amended through December 31, 1974 1988.
(5) Purchase or use of any vehicle owned by a resident of
another state and leased to a Minnesota based private or for
hire carrier for regular use in the transportation of persons or
property in interstate commerce provided the vehicle is titled
in the state of the owner or secured party, and that state does
not impose a sales or motor vehicle excise tax on motor vehicles
used in interstate commerce.
(6) Purchase or use of a motor vehicle by a private
nonprofit or public educational institution for use as an
instructional aid in automotive training programs operated by
the institution.
Sec. 24. [297C.045] [SALES TO INDIAN TRIBES.]
Subdivision 1. [WHOLESALERS.] A wholesaler may set aside
the part of the wholesaler's stock necessary to make sales to
the established governing body of an Indian tribe recognized by
the United States Department of the Interior, without paying the
tax required by this chapter. When shipping or delivering
untaxed stock to an Indian tribal organization, the wholesaler
shall make a true duplicate invoice. The invoice must show the
complete details of the sale or delivery. The wholesaler must
send the duplicate to the commissioner not later than the 18th
day of the following calendar month. If a wholesaler fails to
comply with the requirements of this section, the commissioner
shall revoke the permission granted to the wholesaler to keep a
stock of untaxed goods.
Subd. 2. [RETAILERS.] Retailers who are Indian tribal
organizations may keep untaxed stock intended for sale to
qualified purchasers.
Subd. 3. [QUALIFIED PURCHASERS.] A qualified purchaser of
untaxed liquor means only an enrolled member of the Indian tribe
that is offering the liquor for sale.
Subd. 4. [SALES TO NONQUALIFIED BUYERS.] A retailer who
sells or otherwise disposes of untaxed liquor other than to a
qualified purchaser shall collect from the buyer or transferee
the tax imposed by this chapter and remit the tax to the
department of revenue at the same time and manner as required by
this chapter. If the retailer fails to collect the tax from the
buyer or transferee, or fails to remit the tax, the retailer is
personally responsible for the tax and the commissioner may
seize any liquor destined to be delivered to the retailer. The
procedures outlined in section 297C.12 apply to the seized
liquor. The proceeds of the sale of the liquor may be applied
to any tax liability owed by the retailer after deducting all
costs and expenses.
This section does not relieve the buyer or possessor of
untaxed liquor from personal liability for the tax.
Sec. 25. [297D.085] [CREDIT FOR PREVIOUSLY PAID TAXES.]
If another state or local unit of government has previously
assessed an excise tax on the marijuana or controlled
substances, the taxpayer must pay the difference between the tax
due under section 297D.08 and the tax previously paid. If the
tax previously paid to the other state or local unit of
government was equal to or greater than the tax due under
section 297D.08, no tax is due. The burden is on the taxpayer
to show that an excise tax on the marijuana or controlled
substances has been paid to another state or local unit of
government.
Sec. 26. Minnesota Statutes 1988, section 297D.13, is
amended by adding a subdivision to read:
Subd. 4. [POSSESSION OF STAMPS.] A stamp denoting payment
of the tax imposed under this chapter must not be used against
the taxpayer in a criminal proceeding, except that the stamp may
be used against the taxpayer in connection with the
administration or civil or criminal enforcement of the tax
imposed under this chapter or any similar tax imposed by another
state or local unit of government.
Sec. 27. Minnesota Statutes 1988, section 325D.32,
subdivision 10, is amended to read:
Subd. 10. (a) "Cost to wholesaler" means the basic cost of
the cigarettes, prior to deducting manufacturer's timely payment
and stamping discounts and any other discounts or rebates, plus
the cost of doing business by the wholesaler, as defined in
sections 325D.30 to 325D.42.
(b) The cost of doing business by the wholesaler is
presumed to be four percent of the basic cost of the cigarettes,
plus cartage to the retail outlet, if furnished or paid for by
the wholesaler, in the absence of proof of a lesser or higher
cost. Such cartage cost is presumed to be one-half of one
percent of the basic cost of the cigarettes in the absence of
proof of a lesser or higher cost.
(c) A wholesaler electing to sell cigarettes at a price
other than that presumed by law must submit to the commissioner
documentation substantiating the actual cost of the cigarettes
before selling at actual cost. For purposes of this paragraph
"actual cost" means basic cost as defined in subdivision 9 plus
the wholesaler's cost of doing business. The commissioner shall
review the documents submitted and, if necessary, request
additional documentation to verify the accuracy of the cost
computations. If, within 15 days of submission of the
documentation, the commissioner has not notified the wholesaler
of any deficiencies in the cost computations, the wholesaler may
begin selling at actual cost. The cost computations are
effective for a period of not more than 12 months beginning 15
days after submission of the documentation. Fifteen days before
expiration of the 12-month period, the wholesaler must submit
new cost documentation for review by the commissioner to
continue selling at less than the price presumed by law. New
cost documentation must also be submitted to the commissioner on
the last day of a month in which the basic cost of cigarettes
increases.
Sec. 28. Minnesota Statutes 1988, section 325D.37, is
amended by adding a subdivision to read:
Subd. 3. Before selling cigarettes at a price set in good
faith to meet competition, a wholesaler shall contact the
commissioner to verify that a competitor has met the
requirements of section 325D.32, subdivision 10, or that a
competitor has contacted the commissioner under this subdivision
in response to a wholesaler who has met the requirements of
section 325D.32, subdivision 10.
Sec. 29. [325D.415] [CIGARETTE DISTRIBUTOR FEES.]
A cigarette distributor as defined in section 297.01,
subdivision 7, shall pay to the commissioner an annual fee as
follows:
(1) a fee of $2,500 is due from those distributors whose
annual cigarette tax collections exceed $2,000,000; and
(2) a fee of $1,200 is due from those distributors whose
annual cigarette tax collections are $2,000,000 or less.
The annual fee must be paid by December 31 of each year.
If the fee is not paid when due, the commissioner shall revoke
or refuse to issue or renew the license under chapter 297. The
annual fee must be deposited into the general fund.
Sec. 30. Minnesota Statutes 1988, section 469.190,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] Notwithstanding section
477A.016 or any other law, a statutory or home rule charter city
may by ordinance, and a town may by the affirmative vote of the
electors at its the annual town meeting, or at a special town
meeting, impose a tax of up to three percent on the gross
receipts from the furnishing for consideration of lodging at a
hotel, motel, rooming house, tourist court, or resort, other
than the renting or leasing of it for a continuous period of 30
days or more. A statutory or home rule charter city may by
ordinance impose the tax authorized under this subdivision on
the camping site receipts of a municipal campground.
Sec. 31. Minnesota Statutes 1988, section 473.843,
subdivision 1, is amended to read:
Subdivision 1. [AMOUNT OF FEE; APPLICATION.] The operator
of a mixed municipal solid waste disposal facility in the
metropolitan area shall pay a fee on solid waste accepted and
disposed at the facility as follows:
(a) A facility that weighs the waste that it accepts must
pay a fee of 50 cents per cubic yard based on equivalent cubic
yards of waste accepted at the entrance of the facility.
(b) A facility that does not weigh the waste but that
measures the volume of the waste that it accepts must pay a fee
of 50 cents per cubic yard of waste accepted at the entrance of
the facility. This fee and the tipping fee must be calculated
on the same basis.
(c) Waste residue from energy and resource recovery
facilities at which solid waste is processed for the purpose of
extracting, reducing, converting to energy, or otherwise
separating and preparing solid waste for reuse is exempt from
one-half of the amount of fee imposed by this subdivision if
there is at least an 85 percent volume reduction in the solid
waste processed. To qualify for exemption under this clause,
waste residue must be brought to a disposal facility
separately. The commissioner of revenue, with the advice and
assistance of the agency, shall prescribe procedures for
determining the amount of waste residue qualifying for exemption.
Sec. 32. [CONTINUATION OF EFFECT.]
The repeal of Minnesota Statutes, sections 477A.018 and
477A.019, in this act shall be deemed to be a part of a repeal
and reenactment under Laws 1987, chapter 291, with the effect
provided in Minnesota Statutes, section 645.37. A statutory or
home rule charter city, county, or town ordinance, resolution,
or vote to impose a tax under Minnesota Statutes 1988, section
477A.018, may continue in effect under the terms of Minnesota
Statutes, section 469.190.
Sec. 33. [COMPLEMENT INCREASE.]
The special taxes division of the department of revenue is
given a complement of two positions for the enforcement of
sections 325D.30 to 325D.42.
Sec. 34. [APPROPRIATION.]
$91,500 is appropriated from the general fund to the
commissioner of revenue for the fiscal year ending June 30,
1990, and $91,500 for fiscal year ending June 30, 1991, for the
enforcement of sections 325D.30 to 325D.42.
Sec. 35. [REPEALER.]
Minnesota Statutes 1988, sections 295.01, subdivisions 4,
5, 6, 7, and 8; 295.15; 295.21; 295.23; 295.24; 295.25; 295.27;
295.29; 295.30; 295.31; 297A.19; 297A.253; 477A.018; and
477A.019, are repealed.
Sec. 36. [EFFECTIVE DATE.]
Sections 1, 2, 4 to 6, 8 to 14, 16, 17, 20 to 25, 27 to 31,
and 35 are effective July 1, 1989. Section 3 is effective for
reports filed in 1990 and thereafter. Section 7 is
retroactively effective July 1, 1988. Section 15 is
retroactively effective June 1, 1988. Sections 18 and 19 are
effective for all sales made after June 30, 1989, but do not
apply to sales of tangible personal property made pursuant to
bona fide written contracts that were enforceable before July 1,
1989, and delivery is made on or before December 31, 1989.
Section 26 is retroactively effective August 1, 1986. Section
32 is retroactively effective August 1, 1987.
ARTICLE 2
PROPERTY TAXES
Section 1. Minnesota Statutes 1988, section 38.27,
subdivision 1, is amended to read:
Subdivision 1. [TAX LEVY; POWERS.] In All counties, in
addition to all other powers now or hereafter by law conferred
upon county boards, authority hereby is given may annually to
levy a tax upon all property subject to taxation and, from time
to time, to appropriate and pay over the proceeds of this tax,
when collected, to any county agricultural society of its county
which is a member of the state agricultural society, to assist
the society in paying its financial obligations now or hereafter
incurred, and for the construction, reconstruction, alteration,
repairs and improvements of necessary buildings.
Sec. 2. Minnesota Statutes 1988, section 93.55,
subdivision 4, is amended to read:
Subd. 4. After the mineral interest has forfeited to the
state pursuant to this section, a person claiming an ownership
interest before the forfeiture may recover the fair market value
of the interest, either: (1) as an alternative claim raised in
the hearing on the order to show cause why the mineral interest
should not forfeit absolutely, with fair market value to be
determined and paid as provided in this subdivision, or (2) in a
separate action brought as follows. An action may be commenced
within six years after the forfeiture entry of judgment under
this section to determine the ownership and the fair market
value of the mineral interests in the property both at the time
of forfeiture and at the time of bringing the action. The
action shall be brought in the manner provided in chapter 559,
for an action to determine adverse claims, to the extent
applicable. The person bringing the action shall serve notice
of the action on the commissioner of natural resources in the
same manner as is provided for service of notice of the action
on a defendant. The commissioner may appear and contest the
allegations of ownership and value in the same manner as a
defendant in such actions. Persons determined by the court to
be owners of the interests at the time of forfeiture to the
state under this section may present to the commissioner of
finance a verified claim for refund of the fair market value of
the interest. A copy of the court's decree shall be attached to
the claim. Thereupon the commissioner of finance shall refund
to the claimant the fair market value at the time of forfeiture,
which is the expiration of the period within which tax
forfeiture would not have been possible had the mineral interest
been properly and timely filed for record under section 93.52,
or at the time of bringing the action, whichever is lesser, less
any taxes, penalties, costs, and interest which could have been
collected during the period following the forfeiture under this
section, had the interest in minerals been valued and assessed
for tax purposes at the time of forfeiture under this section.
There is appropriated from the general fund to the persons
entitled to a refund an amount sufficient to pay the refund.
Sec. 3. Minnesota Statutes 1988, section 124.155,
subdivision 2, is amended to read:
Subd. 2. [ADJUSTMENT TO AIDS.] The amount specified in
subdivision 1 shall be used to adjust the following state aids
and credits in the order listed:
(a) general education aid authorized in section 124A.23;
(b) secondary vocational aid authorized in section 124.573;
(c) special education aid authorized in section 124.32;
(d) secondary vocational aid for handicapped children
authorized in section 124.574;
(e) aid for pupils of limited English proficiency
authorized in section 124.273;
(f) transportation aid authorized in section 124.225;
(g) community education programs aid authorized in section
124.271;
(h) adult education aid authorized in section 124.26;
(i) early childhood family education aid authorized in
section 124.2711;
(j) capital expenditure aid authorized in sections 124.244
and 124.245;
(k) homestead credit under section 273.13 for taxes payable
in 1989 and additional homestead and agricultural credit
guarantee under section 273.1398, subdivision 5, for taxes
payable in 1990 and thereafter;
(l) agricultural credit under section 273.132 for taxes
payable in 1989 and additional homestead and agricultural credit
guarantee under section 273.1398, subdivision 5, for taxes
payable in 1990 and thereafter; and
(m) transition homestead and agricultural credit aid and
disparity reduction aid authorized in section 273.1398,
subdivision 2;
(n) attached machinery aid authorized in section 273.138,
subdivision 3.
The commissioner of education shall schedule the timing of
the adjustments to state aids and credits specified in
subdivision 1, as close to the end of the fiscal year as
possible.
Sec. 4. Minnesota Statutes 1988, section 124.2139, is
amended to read:
124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.]
The commissioner of revenue shall reduce the homestead
credit payments under section 273.13 for fiscal year 1990, and
the sum of the additional homestead and agricultural credit
guarantee, and transition homestead and agricultural credit aid,
and disparity reduction aid payments under section 273.1398 for
fiscal years 1991 and thereafter made to school districts by the
product of:
(1) the district's fiscal year 1984 payroll for coordinated
plan members of the public employees retirement association,
times
(2) the difference between the employer contribution rate
in effect prior to July 1, 1984, and the total employer
contribution rate in effect after June 30, 1984.
Sec. 5. Minnesota Statutes 1988, section 256.82,
subdivision 1, is amended to read:
Subdivision 1. [MONTHLY PAYMENTS.] For the period from
January 1 to June 30, based upon estimates submitted by the
county agency to the state agency, which shall state the
estimated required expenditures for the succeeding month, upon
the direction of the state agency payment shall be made monthly
in advance by the state to the counties of all federal funds
available for that purpose for such succeeding month, together
with an amount of state funds equal to 85 percent of the
difference between the total estimated cost and the federal
funds so available for payments made except as provided for in
section 256.017. Adjustment of any overestimate or
underestimate made by any county shall be made upon the
direction of the state agency in any succeeding month.
Subsequent to July 1 of each year, the state agency shall
reimburse the county agency for the funds expended during the
January 1 to June 30 period except as provided for in section
256.017. For the period from July 1 to December 31 based upon
the estimates submitted by the county agency to the state
agency, which shall state the estimated required expenditures
for the succeeding month, upon the direction of the state
agency, payment shall be made monthly in advance by the state to
the counties of all state and federal funds available for that
purpose for the succeeding month except as provided for in
section 256.017. Payment shall be made on the basis of federal
and state participation rates described in this subdivision.
Adjustment of any overestimate or underestimate made by any
county shall be made upon the direction of the state agency in
any succeeding month. Effective January 1, 1989 1990, the state
rate of participation shall be determined as a percentage that
equals the difference between 100 percent and the percentage
rate of federal financial participation.
Sec. 6. Minnesota Statutes 1988, section 256.871,
subdivision 6, is amended to read:
Subd. 6. [ESTIMATED EXPENDITURES; PAYMENTS.] The county
agency shall submit to the state agency an estimate of
expenditures for each succeeding month in such form as required
by the state agency. For the period from January 1 to June 30,
payment shall be made monthly in advance by the state agency to
the counties, of federal funds available for that purpose for
each succeeding month, together with an amount of state funds
equal to ten percent of the difference between the total
estimated cost and the federal funds so available, except as
provided for in section 256.017. Subsequent to July 1 of each
year the state agency shall reimburse the county agency for the
funds expended during the January 1 to June 30 period, except as
provided for in section 256.017. For the period from July 1 to
December 31, payment shall be made monthly in advance by the
state agency to the counties, of all state and federal funds
available for that purpose for the succeeding month, except as
provided for in section 256.017. Payment shall be made on the
basis of federal and state participation rates described in this
subdivision. Effective January 1, 1989 1990, the state rate of
participation shall be determined as a percentage that equals
the difference between 100 percent and the percentage rate of
federal financial participation. Adjustment of any overestimate
or underestimate made by any county shall be made upon the
direction of the state agency in any succeeding month.
Sec. 7. Minnesota Statutes 1988, section 256B.041,
subdivision 5, is amended to read:
Subd. 5. [PAYMENT BY COUNTY TO STATE TREASURER.] If
required by federal law or rules promulgated thereunder, or by
authorized rule of the state agency, each county shall pay to
the state treasurer the portion of medical assistance paid by
the state for which it is responsible. Effective January 1,
1989 1990, the state rate of participation shall be determined
as a percentage that equals the difference between 100 percent
and the percentage rate of federal financial participation.
For the period from January 1 to June 30, the county shall
advance ten percent of that portion of medical assistance costs
not met by federal funds, based upon estimates submitted by the
state agency to the county agency, stating the estimated
expenditures for the succeeding month. Upon the direction of
the county agency, payment shall be made monthly by the county
to the state for the estimated expenditures for each month.
Adjustment of any overestimate or underestimate based on actual
expenditures shall be made by the state agency by adjusting the
estimate for any succeeding month. Subsequent to July 1 of each
year, the state agency shall reimburse the county agency for the
funds expended during the January 1 to June 30 period, except as
provided for in section 256.017. For the period from July 1 to
December 31, payments will be made by the state agency, except
as provided for in section 256.017, and the county agency will
be advised of the amounts paid monthly.
Sec. 8. Minnesota Statutes 1988, section 270.071,
subdivision 6, is amended to read:
Subd. 6. (a) "Air commerce" means the transportation by
aircraft of persons or property for hire in interstate,
intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed
flights by airline companies operating under authorization from
the United States Civil Aeronautics Board Department of
Transportation.
(b) "Air commerce" also includes but is not limited to an
intermittent or irregularly timed flight, a flight arranged at
the convenience of an airline and the person contracting for the
transportation, or a charter flight. It includes an airline
company making three or more flights in or out of Minnesota
during a calendar year.
(c) "Air commerce" does not include casual transportation
for hire by aircraft commonly owned and used for private
airflight purposes if the person furnishing the transportation
does not hold out to be engaged regularly in transportation for
hire.
Sec. 9. Minnesota Statutes 1988, section 270.072,
subdivision 2, is amended to read:
Subd. 2. [ASSESSMENT OF FLIGHT PROPERTY.] The flight
property of all air carriers operating in Minnesota under a
certificate of public convenience and necessity or under
authorization from the United States Civil Aeronautics Board
Department of Transportation shall be assessed annually by the
commissioner in the manner prescribed by sections 270.071 to
270.079. Aircraft with a gross weight of less than 30,000
pounds and used on intermittent or irregularly timed flights
shall be excluded from the provisions of sections 270.071 to
270.079.
Sec. 10. Minnesota Statutes 1988, section 270.072,
subdivision 3, is amended to read:
Subd. 3. [REPORT BY AIRLINE COMPANY.] Every airline
company engaged in air commerce in this state shall file with
the commissioner on or before the time fixed by the commissioner
a report under oath setting forth specifically the information
prescribed by the commissioner to enable the commissioner to
make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company or
person should be excluded from filing because its activities do
not constitute air commerce as defined herein. A penalty of
five percent of the tax being assessed is imposed on a late
filing of the annual report. If the report is not filed within
30 days, an additional penalty of five percent of the assessed
tax is imposed for each additional 30 days or fraction of 30
days until the return is filed. The penalty imposed under this
section must not exceed the lesser of $25,000 or 25 percent of
the assessed tax.
Sec. 11. Minnesota Statutes 1988, section 270.075,
subdivision 2, is amended to read:
Subd. 2. As soon as practicable and not later than
December 1 next following the levy of the tax, the commissioner
shall give actual notice to the airline company of the gross tax
capacity and of the tax. The taxes imposed under sections
270.071 to 270.079 shall become due and payable on January 1
following the levy thereof. If any tax is not paid on the due
date or, if an appeal is made pursuant to section 270.076,
within 60 days after notice of an increased tax, a late payment
penalty of ten five percent of the unpaid tax shall be assessed.
If the tax remains unpaid for more than 30 days, an additional
penalty of five percent of the unpaid tax is imposed for each
additional 30 days or fraction of 30 days that the tax remains
unpaid. The penalty imposed under this section must not exceed
the lesser of $25,000 or 25 percent of the unpaid tax. The
unpaid tax and penalty shall bear interest at the rate specified
in section 270.75 from the time such tax should have been paid
until paid. All interest and penalties shall be added to the
tax and collected as a part thereof.
Sec. 12. Minnesota Statutes 1988, section 270.12,
subdivision 2, is amended to read:
Subd. 2. The board shall meet annually between July 15 and
October 1 at the office of the commissioner of revenue and
examine and compare the returns of the assessment of the
property in the several counties, and equalize the same so that
all the taxable property in the state shall be assessed at its
market value, subject to the following rules:
(1) The board shall add to the aggregate valuation of the
real property of every county, which the board believes to be
valued below its market value in money, such percent as will
bring the same to its market value in money;
(2) The board shall deduct from the aggregate valuation of
the real property of every county, which the board believes to
be valued above its market value in money, such percent as will
reduce the same to its market value in money;
(3) If the board believes the valuation for a class or
classes of the real property of any town or district in any
county, or the valuation for a class or classes of the real
property of any county not in towns or cities, should be raised
or reduced, without raising or reducing the other real property
of such county, or without raising or reducing it in the same
ratio, the board may add to, or take from, the valuation of a
class or classes in any one or more of such towns or cities, or
of the property not in towns or cities, such percent as the
board believes will raise or reduce the same to its market value
in money;
(4) The board shall add to the aggregate valuation of any
class of personal property of any county, town, or city, which
the board believes to be valued below the market value thereof,
such percent as will raise the same to its market value in
money;
(5) The board shall take from the aggregate valuation of
any class of personal property in any county, town or city,
which the board believes to be valued above the market value
thereof, such percent as will reduce the same to its market
value in money;
(6) The board shall not reduce the aggregate valuation of
all the property of the state, as returned by the several county
auditors, more than one percent on the whole valuation thereof;
(7) When it would be of assistance in equalizing values the
board may require any county auditor to furnish statements
showing assessments of real and personal property of any
individuals, firms, or corporations within the county. The
board shall consider and equalize such assessments and may
increase the assessment of individuals, firms, or corporations
above the amount returned by the county board of equalization
when it shall appear to be undervalued, first giving notice to
such persons of the intention of the board so to do, which
notice shall fix a time and place of hearing. The board shall
not decrease any such assessment below the valuation placed by
the county board of equalization; and
(8) In equalizing values pursuant to this section, the
board shall utilize a 12-month assessment/sales ratio study
conducted by the department of revenue containing only sales
that occurred between October 1 of the year immediately
preceding the previous year to September 30 of the previous
year. The sales prices used in the study must be discounted for
terms of financing. The board shall use the median ratio as the
statistical measure of the level of assessment for any
particular category of property.
Sec. 13. Minnesota Statutes 1988, section 270.485, is
amended to read:
270.485 [SENIOR ACCREDITATION.]
The legislature finds that the property tax system would be
enhanced by requiring that every county assessor and senior
appraiser in the department of revenue's local government
services division obtain senior accreditation from the state
board of assessors. Every senior appraiser, including the
department's regional representatives, by January 1, 1990, or in
the case of a and every county assessor within one year two
years of the first appointment under section 273.061, or by
January 1, 1992, whichever is later, every county assessor and
senior appraiser, including the department's regional
representatives, must obtain senior accreditation from the state
board of assessors. The board shall provide the necessary
courses or training. If a department senior appraiser or
regional representative fails to obtain senior accreditation by
January 1, 1990, the failure shall be grounds for dismissal,
disciplinary action, or corrective action. Except as provided
in section 273.061, subdivision 2, paragraph (c), after December
30, 1989 1991, the commissioner must not approve the appointment
of a county assessor who is not senior accredited by the state
board of assessors. No employee hired by the commissioner as a
senior appraiser or regional representative after June 30, 1987,
shall attain permanent status until the employee obtains senior
accreditation.
Sec. 14. Minnesota Statutes 1988, section 272.01,
subdivision 2, is amended to read:
Subd. 2. (a) When any real or personal property which for
any reason is exempt from ad valorem taxes, and taxes in lieu
thereof, is leased, loaned, or otherwise made available and used
by a private individual, association, or corporation in
connection with a business conducted for profit, there shall be
imposed a tax, for the privilege of so using or possessing such
real or personal property, in the same amount and to the same
extent as though the lessee or user was the owner of such
property.
(b) The tax imposed by this subdivision shall not apply to
(1) property leased or used by way of a concession in or
relative to the use in whole or part of a public park, market,
fairgrounds, port authority, economic development authority
established under chapter 458C, municipal auditorium, municipal
automobile parking facility, airport owned by a city, town,
county, or group thereof but not the airports owned or operated
by the metropolitan airports commission or a city of over 50,000
population or an airport authority therein, municipal museum or
municipal stadium or (2) property constituting or used as a
public pedestrian ramp or concourse in connection with a public
airport or (3) property constituting or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage
claim area in connection with a public airport but not the
airports owned or operated by the metropolitan airports
commission or cities of over 50,000 population or an airport
authority therein. Real estate owned by a municipality in
connection with the operation of a public airport and leased or
used for agricultural purposes shall not be exempt.
(c) Taxes imposed by this subdivision shall be due and
payable as in the case of personal property taxes and such taxes
shall be assessed to such lessees or users of real or personal
property in the same manner as taxes assessed to owners of real
or personal property, except that such taxes shall not become a
lien against the property. When due, the taxes shall constitute
a debt due from the lessee or user to the state, township, city,
county and school district for which the taxes were assessed and
shall be collected in the same manner as personal property
taxes. If property subject to the tax imposed by this
subdivision is leased or used jointly by two or more persons,
each lessee or user shall be jointly and severally liable for
payment of the tax.
(d) The tax on real property of the state or any of its
political subdivisions that is leased by a private individual,
association, or corporation and becomes taxable under this
subdivision or other provision of law must be assessed and
collected as a personal property assessment. The taxes do not
become a lien against the real property.
Sec. 15. Minnesota Statutes 1988, section 272.02,
subdivision 1, is amended to read:
Subdivision 1. All property described in this section to
the extent herein limited shall be exempt from taxation:
(1) all public burying grounds;
(2) all public schoolhouses;
(3) all public hospitals;
(4) all academies, colleges, and universities, and all
seminaries of learning;
(5) all churches, church property, and houses of worship;
(6) institutions of purely public charity except parcels of
property containing structures and the structures described in
section 273.13, subdivision 25, paragraph (c), clause
clauses (1) or, (2), and (3), or paragraph (d), clause (2);
(7) all public property exclusively used for any public
purpose;
(8) except for the taxable personal property enumerated
below, all personal property and the property described in
section 272.03, subdivision 1, paragraphs (c) and (d), shall be
exempt.
The following personal property shall be taxable:
(a) personal property which is part of an electric
generating, transmission, or distribution system or a pipeline
system transporting or distributing water, gas, crude oil, or
petroleum products or mains and pipes used in the distribution
of steam or hot or chilled water for heating or cooling
buildings and structures;
(b) railroad docks and wharves which are part of the
operating property of a railroad company as defined in section
270.80;
(c) personal property defined in section 272.03,
subdivision 2, clause (3);
(d) leasehold or other personal property interests which
are taxed pursuant to section 272.01, subdivision 2; 273.124,
subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were
the fee owner;
(e) manufactured homes and sectional structures; and
(f) flight property as defined in section 270.071.
(9) Real and personal property used primarily for the
abatement and control of air, water, or land pollution to the
extent that it is so used, other than real property used
primarily as a solid waste disposal site.
Any taxpayer requesting exemption of all or a portion of
any equipment or device, or part thereof, operated primarily for
the control or abatement of air or water pollution shall file an
application with the commissioner of revenue. The equipment or
device shall meet standards, rules, or criteria prescribed by
the Minnesota pollution control agency, and must be installed or
operated in accordance with a permit or order issued by that
agency. The Minnesota pollution control agency shall upon
request of the commissioner furnish information or advice to the
commissioner. On determining that property qualifies for
exemption, the commissioner shall issue an order exempting the
property from taxation. The equipment or device shall continue
to be exempt from taxation as long as the permit issued by the
Minnesota pollution control agency remains in effect.
(10) Wetlands. For purposes of this subdivision,
"wetlands" means (1) land described in section 105.37,
subdivision 15, or (2) land which is mostly under water,
produces little if any income, and has no use except for
wildlife or water conservation purposes, provided it is
preserved in its natural condition and drainage of it would be
legal, feasible, and economically practical for the production
of livestock, dairy animals, poultry, fruit, vegetables, forage
and grains, except wild rice. "Wetlands" shall include adjacent
land which is not suitable for agricultural purposes due to the
presence of the wetlands. "Wetlands" shall not include woody
swamps containing shrubs or trees, wet meadows, meandered water,
streams, rivers, and floodplains or river bottoms. Exemption of
wetlands from taxation pursuant to this section shall not grant
the public any additional or greater right of access to the
wetlands or diminish any right of ownership to the wetlands.
(11) Native prairie. The commissioner of the department of
natural resources shall determine lands in the state which are
native prairie and shall notify the county assessor of each
county in which the lands are located. Pasture land used for
livestock grazing purposes shall not be considered native
prairie for the purposes of this clause and section 273.116.
Upon receipt of an application for the exemption and credit
provided in this clause and section 273.116 for lands for which
the assessor has no determination from the commissioner of
natural resources, the assessor shall refer the application to
the commissioner of natural resources who shall determine within
30 days whether the land is native prairie and notify the county
assessor of the decision. Exemption of native prairie pursuant
to this clause shall not grant the public any additional or
greater right of access to the native prairie or diminish any
right of ownership to it.
(12) Property used in a continuous program to provide
emergency shelter for victims of domestic abuse, provided the
organization that owns and sponsors the shelter is exempt from
federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31,
1986, notwithstanding the fact that the sponsoring organization
receives funding under section 8 of the United States Housing
Act of 1937, as amended.
(13) If approved by the governing body of the municipality
in which the property is located, property not exceeding one
acre which is owned and operated by any senior citizen group or
association of groups that in general limits membership to
persons age 55 or older and is organized and operated
exclusively for pleasure, recreation, and other nonprofit
purposes, no part of the net earnings of which inures to the
benefit of any private shareholders; provided the property is
used primarily as a clubhouse, meeting facility, or recreational
facility by the group or association and the property is not
used for residential purposes on either a temporary or permanent
basis.
(14) To the extent provided by section 295.44, real and
personal property used or to be used primarily for the
production of hydroelectric or hydromechanical power on a site
owned by the state or a local governmental unit which is
developed and operated pursuant to the provisions of section
105.482, subdivisions 1, 8, and 9.
(15) If approved by the governing body of the municipality
in which the property is located, and if construction is
commenced after June 30, 1983:
(a) a "direct satellite broadcasting facility" operated by
a corporation licensed by the federal communications commission
to provide direct satellite broadcasting services using direct
broadcast satellites operating in the 12-ghz. band; and
(b) a "fixed satellite regional or national program service
facility" operated by a corporation licensed by the federal
communications commission to provide fixed satellite-transmitted
regularly scheduled broadcasting services using satellites
operating in the 6-ghz. band.
An exemption provided by paragraph (15) shall apply for a period
not to exceed five years. When the facility no longer qualifies
for exemption, it shall be placed on the assessment rolls as
provided in subdivision 4. Before approving a tax exemption
pursuant to this paragraph, the governing body of the
municipality shall provide an opportunity to the members of the
county board of commissioners of the county in which the
facility is proposed to be located and the members of the school
board of the school district in which the facility is proposed
to be located to meet with the governing body. The governing
body shall present to the members of those boards its estimate
of the fiscal impact of the proposed property tax exemption.
The tax exemption shall not be approved by the governing body
until the county board of commissioners has presented its
written comment on the proposal to the governing body, or 30
days has passed from the date of the transmittal by the
governing body to the board of the information on the fiscal
impact, whichever occurs first.
(16) Real and personal property owned and operated by a
private, nonprofit corporation exempt from federal income
taxation pursuant to United States Code, title 26, section
501(c)(3), primarily used in the generation and distribution of
hot water for heating buildings and structures.
(17) Notwithstanding section 273.19, state lands that are
leased from the department of natural resources under section
92.46.
(18) Electric power distribution lines and their
attachments and appurtenances, that are used primarily for
supplying electricity to farmers at retail.
(19) Transitional housing facilities. "Transitional
housing facility" means a facility that meets the following
requirements. (i) It provides temporary housing to parents and
children who are receiving AFDC or parents of children who are
temporarily in foster care. (ii) It has the purpose of
reuniting families and enabling parents to obtain
self-sufficiency, advance their education, get job training, or
become employed in jobs that provide a living wage. (iii) It
provides support services such as child care, work readiness
training, and career development counseling; and a
self-sufficiency program with periodic monitoring of each
resident's progress in completing the program's goals. (iv) It
provides services to a resident of the facility for at least six
months but no longer than one year three years, except residents
enrolled in an educational or vocational institution or job
training program. These residents may receive services during
the time they are enrolled but in no event longer than four
years. (v) It is sponsored by an organization that has received
a grant under either section 256.7365 for the biennium ending
June 30, 1989, or section 462A.07, subdivision 15, for the
biennium ending June 30, 1991, for the purposes of providing the
services in items (i) to (iv). (vi) It is sponsored by an
organization that is exempt from federal income tax under
section 501(c)(3) of the Internal Revenue Code of 1986, as
amended through December 31, 1987. This exemption applies
notwithstanding the fact that the sponsoring organization
receives financing by a direct federal loan or federally insured
loan or a loan made by the Minnesota housing finance agency
under the provisions of either Title II of the National Housing
Act or the Minnesota housing finance agency law of 1971 or rules
promulgated by the agency pursuant to it, and notwithstanding
the fact that the sponsoring organization receives funding under
Section 8 of the United States Housing Act of 1937, as amended.
Sec. 16. Minnesota Statutes 1988, section 273.01, is
amended to read:
273.01 [LISTING AND ASSESSMENT, TIME.]
All real property subject to taxation shall be listed and
at least one-fourth of the parcels listed shall be appraised
each year with reference to their value on January 2 preceding
the assessment so that each parcel shall be reappraised at
maximum intervals of four years. All real property becoming
taxable in any year shall be listed with reference to its value
on January 2 of that year. Except as provided in section
274.01, subdivision 1, all real property assessments shall be
completed two weeks prior to the date scheduled for the local
board of review or equalization and no valuations entered
thereafter shall be of any force and effect. Any changes made
by the assessor after this time must be fully documented and
maintained in a file in the assessor's office and shall be
available for review by any person. A copy of any changes made
during this period shall be sent to the county board. In the
event a valuation and classification is not placed on any real
property by the dates scheduled for the local board of review or
equalization the valuation and classification determined in the
preceding assessment shall be continued in effect and the
provisions of section 273.13 shall, in such case, not be
applicable, except with respect to real estate which has been
constructed since the previous assessment. Real property
containing iron ore, the fee to which is owned by the state of
Minnesota, shall, if leased by the state after January 2 in any
year, be subject to assessment for that year on the value of any
iron ore removed under said lease prior to January 2 of the
following year. Personal property subject to taxation shall be
listed and assessed annually with reference to its value on
January 2; and, if acquired on that day, shall be listed by or
for the person acquiring it.
Sec. 17. Minnesota Statutes 1988, section 273.061,
subdivision 1, is amended to read:
Subdivision 1. [OFFICE CREATED; APPOINTMENT,
QUALIFICATIONS.] Every county in this state shall have a county
assessor. The county assessor shall be appointed by the board
of county commissioners and shall be a resident of this state.
The assessor shall be selected and appointed because of
knowledge and training in the field of property taxation and
appointment shall be approved by the commissioner of revenue
before the same shall become effective. Upon receipt by the
county commissioners of the commissioner of revenue's refusal to
approve an appointment, the term of the appointee shall
terminate at the end of that day. Notwithstanding any law to
the contrary, a county assessor must have senior accreditation
from the state board of assessors by January 1, 1990 1992, or
within one year two years of the assessor's first appointment
under this section, whichever is later.
Sec. 18. Minnesota Statutes 1988, section 273.061,
subdivision 2, is amended to read:
Subd. 2. [TERM; VACANCY.] (a) The terms of county
assessors appointed under this section shall be four years. A
new term shall begin on January 1 of every fourth year after
1973. When any vacancy in the office occurs, the board of
county commissioners, within 30 days thereafter, shall fill the
same by appointment for the remainder of the term, following the
procedure prescribed in subdivision 1. The term of the county
assessor may be terminated by the board of county commissioners
at any time, on charges of inefficiency or neglect of duty by
the commissioner of revenue. If the board of county
commissioners does not intend to reappoint a county assessor who
has been certified by the state board of assessors, the board
shall present written notice to the county assessor not later
than 90 days prior to the termination of the assessor's term,
that it does not intend to reappoint the assessor. If written
notice is not timely made, the county assessor will
automatically be reappointed by the board of county
commissioners.
The commissioner of revenue may recommend to the state
board of assessors the nonrenewal, suspension, or revocation of
an assessor's license as provided in sections 270.41 to 270.53.
(b) In the event of a vacancy in the office of county
assessor, through death, resignation or other reasons, the
deputy (or chief deputy, if more than one) shall perform the
functions of the office. If there is no deputy, the county
auditor shall designate a person to perform the duties of the
office until an appointment is made as provided in clause (a).
Such person shall perform the duties of the office for a period
not exceeding 30 days during which the county board must appoint
a county assessor. Such 30-day period may, however, be extended
by written approval of the commissioner of revenue.
(c) In the case of the first appointment under paragraph
(a) of a county assessor who is accredited but who does not have
senior accreditation, an approval of the appointment by the
commissioner shall be for a term of one year. provisional,
provided that a county assessor appointed to a one-year
provisional term under this paragraph must reapply to the
commissioner at the end of the one-year provisional term. A
provisional term may not exceed two years. The commissioner
shall not approve the appointment for the remainder of the
four-year term unless the assessor has obtained senior
accreditation.
Sec. 19. Minnesota Statutes 1988, section 273.111,
subdivision 3, is amended to read:
Subd. 3. (a) Real estate consisting of ten acres or more
or a nursery or greenhouse qualifying for classification as
class 1b, 2a, or 2b under section 273.13, subdivision 23,
paragraph (d), shall be entitled to valuation and tax deferment
under this section only if it is actively and exclusively
devoted to agricultural use as defined in subdivision 6 and
either:
(1) is the homestead of the owner, or of a surviving
spouse, child, or sibling of the owner or is real estate which
is farmed with the real estate which contains the homestead
property,; or
(2) has been in possession of the applicant, the
applicant's spouse, parent, or sibling, or any combination
thereof, for a period of at least seven years prior to
application for benefits under the provisions of Laws 1969,
chapter 1039, this section, or is real estate which is farmed
with the real estate which qualifies under this clause and is
within two townships or cities or combination thereof from the
qualifying real estate; or
(3) is the homestead of a shareholder in a family farm
corporation as defined in section 500.24, notwithstanding the
fact that legal title to the real estate may be held in the name
of the family farm corporation.; or
(4) is in the possession of a nursery or greenhouse or an
entity owned by a proprietor, partnership, or corporation which
also owns the nursery or greenhouse operations on the parcel or
parcels.
(b) Valuation of real estate under this section is limited
to parcels the ownership of which is in noncorporate entities
except for:
(1) family farm corporations organized pursuant to section
500.24; and
(2) corporations that derive 80 percent or more of their
gross receipts from the wholesale or retail sale of
horticultural or nursery stock.
Corporate entities who previously qualified for tax
deferment pursuant to this section and who continue to otherwise
qualify under subdivisions 3 and 6 for a period of at least
three years following the effective date of this section will
not be required to make payment of the previously deferred
taxes, notwithstanding the provisions of subdivision 9. Sale of
the land prior to the expiration of the three-year period shall
result in payment of deferred taxes as follows: sale within the
first year requires payment of payable 1980, 1981, and 1982
deferred taxes; sale during the second year requires payment of
payable 1981 and 1982 taxes deferred; and sale at any time
during the third year will require payment of payable 1983 taxes
deferred. Deferred taxes shall be paid even if the land
qualifies pursuant to subdivision 11a. Special assessments are
payable at the end of the three-year period or at time of sale,
whichever comes first.
Sec. 20. Minnesota Statutes 1988, section 273.112,
subdivision 3, is amended to read:
Subd. 3. Real estate shall be entitled to valuation and
tax deferment under this section only if it is:
(a) actively and exclusively devoted to golf, skiing or
archery or firearms range recreational use or uses and other
recreational uses carried on at the establishment;
(b) five acres in size or more, except in the case of an
archery or firearms range;
(c)(1) operated by private individuals and open to the
public; or
(2) operated by firms or corporations for the benefit of
employees or guests; or
(3) operated by private clubs having a membership of 50 or
more, provided that the club does not discriminate in membership
requirements or selection on the basis of sex; and
(d) made available, in the case of real estate devoted to
golf, for use without discrimination on the basis of sex during
the time when the facility is open to use by the public or by
members, except that use for golf may be restricted on the basis
of sex no more frequently than one, or part of one, weekend each
calendar month for each sex and no more than two, or part of
two, weekdays each week for each sex.
If a golf club membership allows use of golf course
facilities by more than one adult per membership, the use must
be equally available to all adults entitled to use of the golf
course under the membership, except that use may be restricted
on the basis of sex as permitted in this section. Memberships
that permit play during restricted times may be allowed only if
the restricted times apply to all adults using the
membership. A golf club may not offer a membership or golfing
privileges to a spouse of a member that provides greater or less
access to the golf course than is provided to that person's
spouse under the same or a separate membership in that club,
except that the terms of a membership may provide that one
spouse may have no right to use the golf course at any time
while the other spouse may have either limited or unlimited
access to the golf course.
A golf club may have or create an individual membership
category which entitles a member for a reduced rate to play
during restricted hours as established by the club. The club
must have on record a written request by the member for such
membership.
For purposes of this subdivision and subdivision 7a,
discrimination means a pattern or course of conduct and not
linked to an isolated incident.
Sec. 21. Minnesota Statutes 1988, section 273.112, is
amended by adding a subdivision to read:
Subd. 6a. The commissioner of revenue shall develop and
issue guidelines for qualification by private golf clubs under
this section covering the access to and use of the golf course
by members and other adults so as to be consistent with the
purposes and terms of this section. The guidelines shall be
mailed to the county attorney and assessor of each county not
later than 60 days following the date of enactment of this act.
Within 15 days of receipt of the guidelines from the
commissioner, the assessor shall mail a copy of the guidelines
to each golf club in the county. The guidelines issued under
this subdivision are not subject to the administrative procedure
act under chapter 14.
Sec. 22. Minnesota Statutes 1988, section 273.124,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] Residential real estate
that is occupied and used for the purposes of a homestead by its
owner, who must be a Minnesota resident, is a residential
homestead.
Agricultural land, as defined in section 273.13,
subdivision 23, that is occupied and used as a homestead by its
owner, who must be a Minnesota resident, is an agricultural
homestead.
Dates for establishment of a homestead and homestead
treatment provided to particular types of property are as
provided in this section.
The assessor shall require proof, by affidavit or
otherwise, of the facts upon which classification as a homestead
may be determined.
For purposes of this section, homestead property shall
include property which is used for purposes of the homestead but
is separated from the homestead by a road, street, lot,
waterway, or other similar intervening property. The term "used
for purposes of the homestead" shall include but not be limited
to uses for gardens, garages, or other outbuildings commonly
associated with a homestead, but shall not include vacant land
held primarily for future development. In order to receive
homestead treatment for the noncontiguous property, the owner
shall apply for it to the assessor by July 1 of the year when
the treatment is initially sought. After initial qualification
for the homestead treatment, additional applications for
subsequent years are not required.
In the case of property owned by a married couple in joint
tenancy or tenancy in common, the assessor must not deny
homestead treatment in whole or in part if only one of the
spouses is occupying the property and the other spouse is absent
due to divorce or separation, or is a resident of a nursing home
or a boarding care facility.
If an individual is purchasing property with the intent of
claiming it as a homestead, and is required by the terms of the
financing agreement to have one or both parents shown on the
deed as coowners, the assessor shall allow a full homestead
classification and extend full homestead credit. This provision
only applies to first time purchasers, whether married or
single, or to a person who had previously been married and is
purchasing as a single individual for the first time. The
application for homestead benefits must be on a form prescribed
by the commissioner and must contain the data necessary for the
assessor to determine if full homestead benefits are warranted.
Sec. 23. Minnesota Statutes 1988, section 273.124,
subdivision 8, is amended to read:
Subd. 8. [HOMESTEAD OWNED BY FAMILY FARM CORPORATION OR
PARTNERSHIP.] (a) Each family farm corporation and each
partnership operating a family farm is entitled to class 1b
under section 273.13, subdivision 22, paragraph (b), or class 2a
assessment for one homestead occupied by a shareholder or
partner thereof who is residing on the land and actively engaged
in farming of the land owned by the corporation or partnership.
Homestead treatment applies even if legal title to the property
is in the name of the corporation or partnership and not in the
name of the person residing on it. "Family farm corporation"
and "family farm" have the meanings given in section 500.24,
except that the number of allowable shareholders or partners
under this subdivision shall not exceed 12.
(b) In addition to property specified in paragraph (a), any
other residences owned by corporations or partnerships described
in paragraph (a) which are located on agricultural land and
occupied as homesteads by shareholders or partners who are
actively engaged in farming on behalf of the corporation or
partnership must also be assessed as class 2a property or as
class 1b property under section 273.13, subdivision 22,
paragraph (b), but the property eligible is limited to the
residence itself and as much of the land surrounding the
homestead, not exceeding one acre, as is reasonably necessary
for the use of the dwelling as a home, and does not include any
other structures that may be located on it.
Sec. 24. Minnesota Statutes 1988, section 273.124,
subdivision 9, is amended to read:
Subd. 9. [HOMESTEAD ESTABLISHED AFTER ASSESSMENT DATE.]
Any property that was not used for the purpose of a homestead on
the assessment date, but which was used for the purpose of a
homestead on by June 1 of a year, constitutes class 1 or class
2a to the extent of one-half of the valuation that would have
been includable in class 1 or class 2a.
Any taxpayer meeting the requirements of this subdivision
must notify the county assessor, or the assessor who has the
powers of the county assessor pursuant to section 273.063, in
writing, prior to June 15 of the year of occupancy in order to
qualify under this subdivision.
The county assessor and the county auditor may make the
necessary changes on their assessment and tax records to provide
for proper homestead classification as provided in this
subdivision.
The owner of any property qualifying under this
subdivision, which has not been accorded the benefits of this
subdivision, regardless of whether or not the notification has
been timely filed, may be entitled to receive homestead
classification by proper application as provided in section
270.07 or 375.192.
The county assessor shall publish in a newspaper of general
circulation within the county no later than June 1 of each year
a notice informing the public of the requirement to file an
application for homestead prior to June 15.
Sec. 25. Minnesota Statutes 1988, section 273.124,
subdivision 12, is amended to read:
Subd. 12. [HOMESTEAD OF MEMBER OF UNITED STATES ARMED
FORCES; PEACE CORPS; VISTA.] Real estate actually occupied and
used for the purpose of a homestead by a member of the armed
forces of the United States person, or by a member of that
person's immediate family shall, notwithstanding the absence of
the person, while on active duty with the armed forces of the
United States or the family under such conditions, be classified
as a homestead provided that absence of the owner is solely by
reason of service in the armed forces, and that even though the
person or family is absent if (1) the person or the person's
family is absent solely because the person is on active duty
with the armed forces of the United States, or is serving as a
volunteer under the VISTA or Peace Corps program; (2) the owner
intends to return as soon as discharged or relieved from
service,; and (3) the owner claims it as a homestead. Every A
person who, for the purpose of obtaining or aiding another in
obtaining any benefit under this subdivision, shall knowingly
make makes or submit submits to any an assessor any an
affidavit or other statement which that is false in any material
matter shall be to obtain or aid another in obtaining a benefit
under this subdivision is guilty of a felony.
Sec. 26. Minnesota Statutes 1988, section 273.124,
subdivision 13, is amended to read:
Subd. 13. [SOCIAL SECURITY NUMBER REQUIRED FOR HOMESTEAD
APPLICATION.] Every property owner applying for homestead
classification must furnish to the county assessor that owner's
social security or taxpayer identification number. If the
social security or taxpayer identification number is not
provided, the county assessor shall classify the property as
nonhomestead. The social security numbers of the property
owners are private data on individuals as defined by section
13.02, subdivision 12, but, notwithstanding that section, the
private data may be disclosed to the commissioner of revenue.
At the request of the commissioner, each county must give
the commissioner a list that includes the name and social
security or taxpayer identification number of each property
owner applying for homestead classification.
If, in comparing the lists supplied by the counties, the
commissioner finds that a property owner is claiming more than
one homestead, the commissioner shall notify the appropriate
counties. Within 90 days of the notification, the county
assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does
not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had
been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the
homestead credit under section 273.13 for taxes payable in 1989
and under section 273.1398 for taxes payable in 1990 and
thereafter, the taconite homestead credit, and the supplemental
homestead credit, and the tax reduction resulting from the
agricultural credit under section 273.132 for taxes payable in
1989 and under section 273.1398 for taxes payable in 1990 and
thereafter. The county auditor shall send a notice to the
owners of the affected property, demanding reimbursement of the
homestead benefits plus a penalty equal to 25 percent of the
homestead benefits. The property owners may appeal the county's
determination by filing a notice of appeal with the Minnesota
tax court within 60 days of the date of the notice from the
county.
If the amount of homestead benefits and penalty is not paid
within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount to the succeeding year's tax
list to be collected as part of the property taxes.
Any amount of homestead benefits recovered from the
property owner must be transmitted to the commissioner by the
end of each calendar quarter. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St.
Louis county auditor to be deposited in the taconite property
tax relief account. The amount of penalty collected must be
deposited in the county general fund.
The commissioner will provide suggested homestead
applications to each county. If a property owner has applied
for more than one homestead and the county assessors cannot
determine which property should be classified as homestead, the
county assessors will refer the information to the commissioner.
The commissioner shall make the determination and notify the
counties within 60 days.
In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 27. Minnesota Statutes 1988, section 273.124, is
amended by adding a subdivision to read:
Subd. 14. [AGRICULTURAL HOMESTEADS; SPECIAL
PROVISIONS.] (a) Real estate of less than ten acres that is the
homestead of its owner must be classified as class 2a under
section 273.13, subdivision 23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous
to agricultural land on at least two sides;
(2) its owner also owns a noncontiguous parcel of
agricultural land that is at least 20 acres;
(3) the noncontiguous land is located not farther than two
townships or cities, or a combination of townships or cities
from the homestead; and
(4) the agricultural use value of the noncontiguous land
and farm buildings is equal to at least 50 percent of the market
value of the house, garage and one acre of land.
Homesteads initially classified as class 2a under the
provisions of this subdivision shall remain classified as class
2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same
ownership, the owner owns a noncontiguous parcel of agricultural
land that is at least 20 acres, and the agricultural use value
qualifies under clause (4).
(b) Noncontiguous land shall be included as part of a
homestead under section 273.13, subdivision 23, paragraph (a),
only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther
than two townships or cities or combination thereof from the
homestead.
(c) Agricultural land used for purposes of a homestead and
actively farmed by a person holding a vested remainder interest
in it must be classified as a homestead under section 273.13,
subdivision 23, paragraph (a). If agricultural land is
classified class 2a, any other dwellings on the land used for
purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and
up to one acre of the land surrounding each homestead and
reasonably necessary for the use of the dwelling as a home, must
also be assessed class 2a.
Sec. 28. Minnesota Statutes 1988, section 273.13,
subdivision 22, is amended to read:
Subd. 22. [CLASS 1.] (a) Except as provided in subdivision
23, real estate which is residential and used for homestead
purposes is class 1. The market value of class 1a property must
be determined based upon the value of the house, garage, and
land.
The first $68,000 of market value of class 1a property has
a net tax capacity of one percent of its market value and a
gross tax capacity of 2.17 percent of its market value. The
market value of class 1a property that exceeds $68,000 but does
not exceed $100,000 has a tax capacity of 2.5 percent of its
market value. The market value of class 1a property that
exceeds $100,000 has a tax capacity of 3.3 percent of its market
value.
(b) Class 1b property includes real estate or manufactured
homes used for the purposes of a homestead by
(1) any blind person, if the blind person is the owner
thereof or if the blind person and the blind person's spouse are
the sole owners thereof; or
(2) any person, hereinafter referred to as "veteran," who:
(i) served in the active military or naval service of the
United States; and
(ii) is entitled to compensation under the laws and
regulations of the United States for permanent and total
service-connected disability due to the loss, or loss of use, by
reason of amputation, ankylosis, progressive muscular
dystrophies, or paralysis, of both lower extremities, such as to
preclude motion without the aid of braces, crutches, canes, or a
wheelchair; and
(iii) with assistance by the administration of veterans
affairs has acquired a special housing unit with special
fixtures or movable facilities made necessary by the nature of
the veteran's disability, or the surviving spouse of the
deceased veteran for as long as the surviving spouse retains the
special housing unit as a homestead; or
(3) any person who:
(i) is permanently and totally disabled and
(ii) receives 90 percent or more of total income from
(A) aid from any state as a result of that disability; or
(B) supplemental security income for the disabled; or
(C) workers' compensation based on a finding of total and
permanent disability; or
(D) social security disability, including the amount of a
disability insurance benefit which is converted to an old age
insurance benefit and any subsequent cost of living increases;
or
(E) aid under the Federal Railroad Retirement Act of 1937,
United States Code Annotated, title 45, section 228b(a)5; or
(F) a pension from any local government retirement fund
located in the state of Minnesota as a result of that
disability; or
(iii) whose household income as defined in section 290A.03,
subdivision 5, is 150 percent or less of the federal poverty
level.
Property is classified and assessed pursuant to clause (1)
only if the commissioner of jobs and training certifies to the
assessor that the owner of the property satisfies the
requirements of this subdivision. The commissioner of jobs and
training shall provide a copy of the certification to the
commissioner of revenue.
Permanently and totally disabled for the purpose of this
subdivision means a condition which is permanent in nature and
totally incapacitates the person from working at an occupation
which brings the person an income. The first $32,000 market
value of class 1b property has a net tax capacity of .4 percent
of its market value and a gross tax capacity of .87 percent of
its market value. The remaining market value of class 1b
property has a gross or net tax capacity using the rates for
class 1 or class 2a property, whichever is appropriate, of
similar market value.
(c) Class 1c property is commercial use real property that
abuts a lakeshore line and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted
to commercial purposes for more than 200 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner. Class 1c property has a tax
capacity of .9 percent of market value with the following
limitation: the area of the property must not exceed 100 feet
of lakeshore footage for each cabin or campsite located on the
property up to a total of 800 feet and 500 feet in depth,
measured away from the lakeshore.
(d) For taxes levied in 1988, payable in 1989 only, the tax
to be paid on class 1a or class 1b property shall be reduced by
54 percent of the tax imposed on the first $68,000 of market
value. The amount of the reduction shall not exceed $725.
Sec. 29. Minnesota Statutes 1988, section 273.13,
subdivision 23, is amended to read:
Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural
land including any improvements that is homesteaded. The market
value of the house and garage and immediately surrounding one
acre of land that does not exceed $65,000 has a net tax capacity
of .805 percent of market value and a gross tax capacity of 1.75
percent of market value. The excess market value over $65,000
has a tax capacity of 2.2 percent. If the market value of the
house, garage, and surrounding one acre of land is less than
$65,000, the value of the remaining land including improvements
equal to the difference between $65,000 and the market value of
the house, garage, and surrounding one acre of land has a net
tax capacity of 1.12 percent of market value and a gross tax
capacity of 1.75 percent of market value for the first 320 acres
of land and the remaining value over 320 acres has a net tax
capacity of 1.295 percent of market value and a gross tax
capacity of 1.75 percent of market value. The remaining value
of class 2a property over the $65,000 market value that does not
exceed 320 acres has a net tax capacity of 1.44 percent of
market value and a gross tax capacity of 2.25 percent of market
value. The remaining property over the $65,000 market value in
excess of 320 acres has a net tax capacity of 1.665 percent of
market value and a gross tax capacity of 2.25 percent of market
value.
Noncontiguous land shall constitute class 2a only if the
homestead is classified as class 2a and the detached land is
located in the same township or city or not farther than two
townships or cities or combination thereof from the homestead.
Agricultural land used for purposes of a homestead and
actively farmed by a person holding a vested remainder interest
in it must be classified class 2a. If agricultural land is
classified class 2a, any other dwellings on the land used for
purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and
up to one acre of the land surrounding each homestead and
reasonably necessary for the use of the dwelling as a home, must
also be assessed class 2a and is entitled to the homestead
credit.
For taxes levied in 1988, payable in 1989 only, the tax to
be paid on class 2a property and class 1b property under section
273.13, subdivision 22, paragraph (b), used for agricultural
purposes shall be reduced by 54 percent of the tax. The amount
of the reduction shall not exceed $725.
(b) Class 2b property is (1) real estate, rural in
character and used exclusively for growing trees for timber,
lumber, and wood and wood products; and (2) real estate that is
nonhomestead agricultural land. Class 2b property has a net tax
capacity of 1.665 percent of market value and a gross tax
capacity of 2.25 percent of market value.
(c) Agricultural land as used in this section means
contiguous acreage of ten acres or more, primarily used during
the preceding year for agricultural purposes. Agricultural use
may include pasture, timber, waste, unusable wild land, and land
included in federal farm programs.
(d) Real estate of less than ten acres used principally for
raising poultry, livestock, fruit, vegetables or other
agricultural products, including the breeding of fish for sale
and consumption provided that it is located if the fish breeding
occurs on land zoned for agricultural use, shall be considered
as agricultural land, if it is not used primarily for
residential purposes. The term "agricultural products" as used
in the preceding sentence means any of the products identified
in section 273.111, subdivision 6, clause (2). "Agricultural
purposes" as used in this section means the raising or
cultivation of agricultural products.
(e) If a parcel used for agricultural purposes is also used
for commercial or industrial purposes, including but not limited
to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities
enumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used for
agricultural purposes as class 1b, 2a, or 2b, whichever is
appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural
products for first sale is considered an agricultural purpose.
A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail
sales must be classified as agricultural if it is primarily used
for the growing of horticultural or nursery products from seed,
cuttings, or roots and occasionally as a showroom for the retail
sale of those products. Use of a greenhouse or building only
for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
The assessor shall determine and list separately on the
records the market value of the homestead dwelling and the one
acre of land on which that dwelling is located. If any farm
buildings or structures are located on this homesteaded acre of
land, their market value shall not be included in this separate
determination.
Sec. 30. Minnesota Statutes 1988, section 273.135,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1989 only, the amount of the
reduction authorized by subdivision 1 shall be:
(a) In the case of property located within the boundaries
of a municipality which meets the qualifications prescribed in
section 273.134, 66 percent of the net tax up to the taconite
breakpoint plus a percentage equal to the homestead credit
equivalency percentage of the net tax in excess of the taconite
breakpoint, provided that the reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to 95 percent of the base year effective tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10.
(b) In the case of property located within the boundaries
of a school district which qualifies as a tax relief area but
which is outside the boundaries of a municipality which meets
the qualifications prescribed in section 273.134, 57 percent of
the net tax up to the taconite breakpoint plus a percentage
equal to the homestead credit equivalency percentage of the net
tax in excess of the taconite breakpoint, provided that the
reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to 95 percent
of the base year effective tax rate. In no case will the
reduction for each homestead resulting from this credit be less
than $10.
(c)(1) The maximum reduction of the net tax up to the
taconite breakpoint is $225.40 on property described in clause
(a) and $200.10 on property described in clause (b), for taxes
payable in 1985. These maximum amounts shall increase by $15
times the quantity one minus the homestead credit equivalency
percentage per year for taxes payable in 1986 and subsequent
years.
(2) The total maximum reduction of the net tax on property
described in clause (a) is $490 for taxes payable in 1985. The
total maximum reduction for the net tax on property described in
clause (b) is $435 for taxes payable in 1985. These maximum
amounts shall increase by $15 per year for taxes payable in 1986
and thereafter.
For the purposes of this subdivision, "net tax" means the
tax on the property after deduction of any credit under section
273.13, subdivision 22 or 23, "taconite breakpoint" means the
lowest possible net tax for a homestead qualifying for the
maximum reduction pursuant to section 273.13, subdivision 22,
rounded to the nearest whole dollar, "homestead credit
equivalency percentage" means a percentage equal to the
percentage reduction authorized in section 273.13, subdivision
22, "effective tax rate" means tax divided by the market value
of the property, and the "base year effective tax rate" means
the tax on the property after the application of the credits
payable under section 273.13, subdivisions 22 and 23, and this
section for taxes payable in 1988, divided by the market value
of the property. A new parcel of property or a parcel with a
current year classification that is different from its base year
classification has the same base year effective tax rate as an
equivalent homesteaded parcel.
Sec. 31. Minnesota Statutes 1988, section 273.1391,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1989 only, the amount of the
reduction authorized by subdivision 1 shall be:
(a) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a county
with a population of less than 100,000 in which taconite is
mined or quarried and wherein a school district is located which
does meet the qualifications of a tax relief area, and provided
that at least 90 percent of the area of the school district
which does not meet the qualifications of section 273.134 lies
within such county, 57 percent of the net tax up to the taconite
breakpoint plus a percentage equal to the homestead credit
equivalency percentage of the net tax in excess of the taconite
breakpoint on qualified property located in the school district
that does not meet the qualifications of section 273.134,
provided that the amount of said reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to 95 percent of the base year effective tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10. The reduction
provided by this clause shall only be applicable to property
located within the boundaries of the county described therein.
(b) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a school
district in a county containing a city of the first class and a
qualifying municipality, but not in a school district containing
a city of the first class or adjacent to a school district
containing a city of the first class unless the school district
so adjacent contains a qualifying municipality, 57 percent of
the net tax up to the taconite breakpoint plus a percentage
equal to the homestead credit equivalency percentage of the net
tax in excess of the taconite breakpoint, but not to exceed the
maximums specified in clause (c), and shall not exceed an amount
sufficient to reduce the effective tax rate on each parcel of
property to 95 percent of the base year effective tax rate. In
no case will the reduction for each homestead resulting from
this credit be less than $10.
(c)(1) The maximum reduction of the net tax up to the
taconite breakpoint is $200.10 for taxes payable in 1985. This
maximum amount shall increase by $15 multiplied by the quantity
one minus the homestead credit equivalency percentage per year
for taxes payable in 1986 and subsequent years.
(2) The total maximum reduction of the net tax is $435 for
taxes payable in 1985. This total maximum amount shall increase
by $15 per year for taxes payable in 1986 and thereafter.
For the purposes of this subdivision, "net tax" means the
tax on the property after deduction of any credit under section
273.13, subdivision 22 or 23, "taconite breakpoint" means the
lowest possible net tax for a homestead qualifying for the
maximum reduction pursuant to section 273.13, subdivision 22,
rounded to the nearest whole dollar, "homestead credit
equivalency percentage" means a percentage equal to the
percentage reduction authorized in section 273.13, subdivision
22, and "effective tax rate" means tax divided by the market
value of the property, and the "base year effective tax rate"
means the tax on the property after application of the credits
payable under section 273.13, subdivisions 22 and 23, and this
section for taxes payable in 1988, divided by the market value
of the property. A new parcel with a current year
classification that is different from its base year
classification has the same base year effective tax rate as an
equivalent homesteaded parcel.
Sec. 32. Minnesota Statutes 1988, section 273.1393, is
amended to read:
273.1393 [COMPUTATION OF NET PROPERTY TAXES.]
Notwithstanding any other provisions to the contrary, "net"
property taxes are determined by subtracting the credits in the
order listed from the gross tax:
(1) disaster credit as provided in section 273.123;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section
473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) state agricultural credit as provided in section
273.132 disparity reduction credit;
(6) state paid homestead conservation tax credit as
provided in section 273.13 273.119;
(7) taconite homestead credit as provided in section
273.135; and
(8) supplemental homestead credit as provided in section
273.1391.
The combination of all property tax credits must not exceed
the gross tax amount.
Sec. 33. Minnesota Statutes 1988, section 273.1398,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) In this section, the
terms defined in this subdivision have the meanings given them.
(b) "Unique taxing jurisdiction" means the geographic area
subject to the same set of tax capacity rates.
(c) "Gross tax capacity" means the product of the
appropriate percentages of market value listed as gross tax
capacities in section 273.13 and equalized market values.
"Total gross tax capacity" means the gross tax capacities for
all property within the unique taxing jurisdiction. The total
gross tax capacity used shall be reduced by the sum of (1) the
unique taxing jurisdiction's gross tax capacity of commercial
industrial property as defined in section 473F.02, subdivision
3, multiplied by the ratio determined pursuant to section
473F.08, subdivision 6, for the municipality, as defined in
section 473F.02, subdivision 8, in which the unique taxing
jurisdiction is located and (2) the gross tax capacity of the
captured value of tax increment financing districts as defined
in section 469.177, subdivision 2. For purposes of determining
the gross tax capacity of property referred to in clauses (1)
and (2) for disparity reduction aid payable in 1989, the gross
tax capacity before equalization shall equal the property's 1987
assessed value multiplied by 12 percent. Gross tax capacity
cannot be less than zero.
(d) "Net tax capacity" means the product of the appropriate
percentages of market value listed as net tax capacities in
section 273.13 and equalized market values. "Total net tax
capacity" means the net tax capacities for all property within
the unique taxing jurisdiction. The total net tax capacity used
shall be reduced by the sum of (1) the unique taxing
jurisdiction's net tax capacity of commercial industrial
property as defined in section 473F.02, subdivision 3,
multiplied by the ratio determined pursuant to section 473F.08,
subdivision 6, for the municipality, as defined in section
473F.02, subdivision 8, in which the unique taxing jurisdiction
is located and (2) the net tax capacity of the captured value of
tax increment financing districts as defined in section 469.177,
subdivision 2. For purposes of determining the net tax capacity
of property referred to in clauses (1) and (2), the net tax
capacity before equalization shall equal the property's 1987
assessed value multiplied by 12 percent. Net tax capacity
cannot be less than zero.
(e) "Equalized market values" are market values that have
been equalized by dividing the assessor's estimated market value
for the second year prior to that in which the aid is payable by
the assessment sales ratios determined by class in the
assessment sales ratio study conducted by the department of
revenue pursuant to section 124.2131 in the second year prior to
that in which the aid is payable. For computation of aids
payable in 1989 only, if the aggregate assessment sales ratio is
less than or equal to 92 percent, the assessment sales ratios by
class shall be adjusted proportionally so that the aggregate
ratio of the unequalized market values to the equalized market
values equals 92 percent; otherwise the equalized market values
shall equal the unequalized market values divided by the
assessment sales ratio.
(f) "Homestead effective rate" means the product of (i) 46
percent; (ii) 2.17 percent; and (iii) the total tax capacity
rate for taxes payable in 1989 within a unique taxing
jurisdiction multiplied by the 1988 aggregate assessment sales
ratio. A sales ratio of .92 is used if the actual sales ratio
is less than .92.
(g) For purposes of calculating the transition homestead
and agricultural credit aid authorized pursuant to subdivision
2, the "subtraction factor" is the product of (i) a unique
taxing jurisdiction's homestead effective rate; (ii) its net tax
capacity; and (iii) 103.
(h) For purposes of calculating and allocating transition
homestead and agricultural credit aid authorized pursuant to
subdivision 2 and the disparity reduction aid authorized in
subdivision 3, "gross taxes levied on all properties" or "gross
taxes" means the total gross taxes levied on all properties
except that levied on the captured value of tax increment
districts as defined in section 469.177, subdivision 2, and that
levied on the portion of commercial industrial properties'
assessed value or gross tax capacity, as defined in section
473F.02, subdivision 3, subject to the areawide tax as provided
in section 473F.08, subdivision 6, in a unique taxing
jurisdiction before reduction by any credits for taxes payable
in the year prior to that in which the aids are payable. For
purposes of disparity reduction aid only, total gross taxes
shall be reduced by the taxes levied for any school district
referendum levies authorized pursuant to section 124A.03,
subdivision 2, and any school district debt levies authorized
pursuant to section 475.61. Gross taxes levied cannot be less
than zero.
(i) "Income maintenance aids" means:
(1) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(2) preadmission screening and alternative care grants
under section 256B.091, subdivision 8;
(3) general assistance, and work readiness under section
256D.03, subdivision 2;
(4) general assistance medical care under section 256D.03,
subdivision 6;
(5) aid to families with dependent children under section
256.82, subdivision 1, including emergency assistance under
section 256.871, subdivision 6; and funeral expense payments
under section 256.935, subdivision 1; and
(6) supplemental aid under section 256D.36, subdivision 1.
Sec. 34. Minnesota Statutes 1988, section 273.1398,
subdivision 4, is amended to read:
Subd. 4. [DISPARITY REDUCTION CREDIT.] (a) Beginning with
taxes payable in 1989, class 4a, class 3a, and class 3b property
qualifies for a disparity reduction credit if: (1) the property
is located in a border city that has an enterprise zone
designated pursuant to section 469.168, subdivision 4,; (2) the
property is located in cities a city with a population greater
than 2,500 and less than 35,000 according to the 1980 decennial
census which are; (3) the city is adjacent to cities a city in
another state or immediately adjacent to a city adjacent to a
city in another state qualify for disparity reduction credits,
if; and (4) the adjacent city in the other state has a
population of greater than 5,000 and less than 75,000.
(b) The credit is an amount sufficient to reduce (i) the
taxes levied on class 4a property to three percent of the
property's market value and (ii) the tax on class 3a and class
3b property to 3.3 percent of market value.
(b) (c) The county auditor shall annually certify the costs
of the credits to the department of revenue. The department
shall reimburse local governments for the property taxes
foregone as the result of the credits in proportion to their
total levies.
Sec. 35. Minnesota Statutes 1988, section 273.1398,
subdivision 5, is amended to read:
Subd. 5. [ADDITIONAL HOMESTEAD AND AGRICULTURAL CREDIT
GUARANTEE.] Beginning with taxes payable in 1990, each unique
taxing jurisdiction may receive additional homestead and
agricultural credit guarantee payments.
(1) Each year, the commissioner shall certify to the county
auditor the total education aids paid under chapters 124 and
124A, transition homestead and agricultural credit aid and
disparity reduction aid paid under section 273.1398, local
government aid to cities, counties, and towns paid under chapter
477A, and income maintenance aid paid to counties for each
taxing jurisdiction. The county auditor shall apportion each
local government's aids to the unique taxing jurisdiction based
upon the proportion that the unique taxing jurisdiction's tax
capacity bears to the total tax capacity of the local government.
(2) Each year, the county auditor will compute a gross tax
capacity rate for each taxing jurisdiction equal to its total
levy divided by its gross tax capacity. For each unique taxing
jurisdiction, a total gross tax capacity rate will be determined.
This total gross tax capacity rate will be applied against the
gross tax capacity of each property that would have been
eligible for the homestead credit or the agricultural credit for
taxes payable in 1989. A credit amount will be determined for
each parcel based upon the credit rate structure in effect for
taxes payable in 1989. The resulting credit amounts will be
summed for all parcels in the unique taxing jurisdiction.
If the amount determined in clause (2) is greater than the
amount determined in clause (1), the difference will be
additional homestead and agricultural credit guarantee payments
for the unique taxing jurisdiction. The additional credit
amount shall proportionately reduce the tax capacity rates of
all local governments levying taxes within the unique taxing
jurisdiction. The county auditor shall certify the amounts
of all additional credits determined under this section
subdivision in a form prescribed by the commissioner.
Sec. 36. Minnesota Statutes 1988, section 273.1398,
subdivision 6, is amended to read:
Subd. 6. [PAYMENT.] The commissioner shall certify the
aids provided in subdivisions 2 and 3 before September 30 of the
year preceding the distribution year to the county auditor of
the affected local government and pay them and the credit
reimbursements to local governments other than school districts
at the times provided in section 477A.015 for payment of local
government aid to taxing jurisdictions. Aids and credit
reimbursements to school districts must be certified to the
commissioner of education and paid under section 273.1392.
Payment shall not be made to any taxing jurisdiction that has
ceased to levy a property tax nor shall transition homestead and
agricultural credit aid be payable on the part of a levy to
which transition homestead and agricultural credit aid was
separately allocated under subdivision 2, paragraph (b), clause
(2), which is no longer levied.
Sec. 37. Minnesota Statutes 1988, section 275.07,
subdivision 3, is amended to read:
Subd. 3. The county auditor shall adjust each local
government's levy certified under subdivision 1 by the amount of
transition homestead and agricultural credit aid certified by
section 273.1398, subdivision 2. If a local
government's transition homestead and agricultural credit aid
was further allocated between portions of its levy pursuant to
section 273.1398, subdivision 2, paragraph (b)(2), the levy or
fund to which the transition homestead and agricultural credit
aid was allocated is the levy or fund which must be adjusted.
Sec. 38. [276.131] [DISTRIBUTION OF PENALTIES, INTEREST,
AND COSTS.]
The penalties, interest, and costs collected on special
assessments and real and personal property taxes must be
distributed as follows:
(1) all penalties and interest collected on special
assessments against real or personal property must be
distributed to the taxing jurisdiction that levied the
assessment;
(2) 50 percent of all penalties and interest collected on
real and personal property taxes must be distributed to the
county in which the property is located, and the other 50
percent must be distributed to the school district in which the
property is located. The distribution to the school district
must be in accordance with the provisions of section 124.10; and
(3) all costs collected by the county on special
assessments and on delinquent real and personal property taxes
must be distributed to the county in which the property is
located.
Sec. 39. Minnesota Statutes 1988, 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 (1) city, or (2) county, or (3) in the
case of a county containing a city of the first class, the
portion of the county excluding the first class city, 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 the 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 court administrator of
the district court before the 16th day of May of the year in
which the tax becomes payable. 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. 40. Minnesota Statutes 1988, section 278.03, is
amended to read:
278.03 [PAYMENT OF TAX.]
If the proceedings instituted by the filing of the petition
have not been completed before the 16th day of May next
following the filing, the petitioner shall pay to the county
treasurer 50 percent of the tax levied for such year against the
property involved, unless permission to continue prosecution of
the petition without such payment is obtained as herein
provided. If the proceedings instituted by the filing of the
petition have not been completed by the next October 16, or, in
the case of class 1b agricultural homestead, class 2a
agricultural homestead, and class 2c 2b(2) agricultural
nonhomestead property, November 16, the petitioner shall pay to
the county treasurer 50 percent of the unpaid balance of the
taxes levied for the year against the property involved if the
unpaid balance is $2,000 or less and 80 percent of the unpaid
balance if the unpaid balance is over $2,000, unless permission
to continue prosecution of the petition without payment is
obtained as herein provided. The petitioner, upon ten days
notice to the county attorney and to the county auditor, given
at least ten days prior to the 16th day of May or the 16th day
of October, or, in the case of class 1b agricultural homestead,
class 2a agricultural homestead, and class 2c 2b(2) agricultural
nonhomestead property, the 16th day of November, may apply to
the court for permission to continue prosecution of the petition
without payment; and, if it is made to appear
(1) That the proposed review is to be taken in good faith;
(2) That there is probable cause to believe that the
property may be held exempt from the tax levied or that the tax
may be determined to be less than 50 percent of the amount
levied; and
(3) That it would work a hardship upon petitioner to pay
the taxes due,
the court may permit the petitioner to continue prosecution
of the petition without payment, or may fix a lesser amount to
be paid as a condition of continuing the prosecution of the
petition.
Failure to make payment of the amount required when due
shall operate automatically to dismiss the petition and all
proceedings thereunder unless the payment is waived by an order
of the court permitting the petitioner to continue prosecution
of the petition without payment. The county treasurer shall,
upon request of the petitioner, issue duplicate receipts for the
tax payment, one of which shall be filed by the petitioner in
the proceeding.
Sec. 41. Minnesota Statutes 1988, 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 use in determining school education
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. The department of revenue
sales ratio study shall be prima facie evidence of the level of
assessment. 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 same classification of property
in the same county, city, or town as the subject property is
lower than 90 percent, except that in the case of a county
containing a city of the first class, the median ratio for the
county shall be the ratio determined excluding sales from the
first class city within the county.
If a reduction in value on the grounds of discrimination is
granted based on the above criteria, the reduction shall equal
the difference between 90 percent and the median ratio
determined by the court.
Sec. 42. Minnesota Statutes 1988, section 278.05,
subdivision 5, is amended to read:
Subd. 5. Any time after the filing of the petition and
before the trial of the issues raised thereby, when the defense
or claim presented is that the property has been partially,
unfairly, or unequally assessed, or that the parcel has been
assessed at a valuation greater than its real or actual value,
or that a parcel which is classified as homestead under the
provisions of section 273.13, subdivision 22 or 23, has been
assessed at a valuation which exceeds by ten percent or more the
valuation which the parcel would have if it were valued at the
average assessment/sales ratio for real property in the same
class in that portion of the county in which the parcel is
located, for which the commissioner is able to establish and
publish a sales ratio study, the attorney representing the
state, county, city or town in the proceedings may serve on the
petitioner, or the petitioner's attorney, and file with the
court administrator of the district court, an offer to reduce
the valuation of any tract or tracts to a valuation set forth in
the offer. If, within ten days thereafter, the petitioner, or
the attorney, gives notice in writing to the county attorney, or
the attorney for the city or town, that the offer is accepted,
the official notified may file the offer with proof of notice,
and the court administrator shall enter judgment accordingly.
Otherwise, the offer shall be deemed withdrawn and evidence
thereof shall not be given; and, unless a lower valuation than
specified in the offer is found by the court, no costs or
disbursements shall be allowed to the petitioner, but the costs
and disbursements of the state, county, city or town, including
interest at six percent on the tax based on the amount of the
offer from and after the 16th day of October, or, in the case of
class 1b agricultural homestead, class 2a agricultural
homestead, and class 2c 2b(2) agricultural nonhomestead
property, the 16th day of November, of the year the taxes are
payable, shall be taxed in its favor and included in the
judgment and when collected shall be credited to the county
revenue fund, unless the taxes were paid in full before the 16th
day of October, or, in the case of class 1b agricultural
homestead, class 2a agricultural homestead, and class 2c 2b(2)
agricultural nonhomestead property, the 16th day of November, of
the year in which the taxes were payable, in which event
interest shall not be taxable.
Sec. 43. Minnesota Statutes 1988, section 279.01,
subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 3, on May
16, of each year, with respect to property actually occupied and
used as a homestead by the owner of the property, a penalty of
three percent shall accrue and thereafter be charged upon all
unpaid taxes on real estate on the current lists in the hands of
the county treasurer, and a penalty of seven percent on
nonhomestead property, except that this penalty shall not accrue
until June 1 of each year on commercial use real property used
for seasonal residential recreational purposes and classified as
class 4d 1c or 4c, and on other commercial use real property
classified as class 3a, provided that over 60 percent of the
gross income earned by the enterprise on the class 3a property
is earned during the months of May, June, July, and August. Any
property owner of such class 3a property who pays the first half
of the tax due on the property after May 15 and before June 1
shall attach an affidavit to the payment attesting to compliance
with the income provision of this subdivision. Thereafter, for
both homestead and nonhomestead property, on the first day of
each month, up to and including October 1 following, an
additional penalty of one percent for each month shall accrue
and be charged on all such unpaid taxes. When the taxes against
any tract or lot exceed $50, one-half thereof may be paid prior
to May 16; and, if so paid, no penalty shall attach; the
remaining one-half shall be paid at any time prior to October 16
following, without penalty; but, if not so paid, then a penalty
of four percent shall accrue thereon for homestead property and
a penalty of four percent on nonhomestead property. Thereafter,
for homestead property, on the first day of November and
December following, an additional penalty of two percent for
each month shall accrue and be charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of
November and December following, an additional penalty of four
percent for each month shall accrue and be charged on all such
unpaid taxes. If one-half of such taxes shall not be paid prior
to May 16, the same may be paid at any time prior to October 16,
with accrued penalties to the date of payment added, and
thereupon no penalty shall attach to the remaining one-half
until October 16 following.
A county may provide by resolution that in the case of a
property owner that has multiple tracts or parcels with
aggregate taxes exceeding $50, payments may be made in
installments as provided in this subdivision.
The county treasurer may accept payments of more or less
than the exact amount of a tax installment due. If the accepted
payment is less than the amount due, payments must be applied
first to the penalty accrued for the year the payment is made.
Acceptance of partial payment of tax does not constitute a
waiver of the minimum payment required as a condition for filing
an appeal under section 278.03 or any other law, nor does it
affect the order of payment of delinquent taxes under section
280.39.
Sec. 44. Minnesota Statutes 1988, section 279.01,
subdivision 3, is amended to read:
Subd. 3. In the case of class 1b agricultural homestead,
class 2a agricultural homestead property, and class 2c 2b(2)
agricultural nonhomestead property, no penalties shall attach to
the second one-half property tax payment as provided in this
section if paid by November 15. Thereafter for class 1b
agricultural homestead and class 2a homestead property, on
November 16 following, a penalty of six percent shall accrue and
be charged on all such unpaid taxes and on December 1 following,
an additional two percent shall be charged on all such unpaid
taxes. Thereafter for class 2c 2b(2) agricultural nonhomestead
property, on November 16 following, a penalty of eight percent
shall accrue and be charged on all such unpaid taxes and on
December 1 following, an additional four percent shall be
charged on all such unpaid taxes.
If the owner of class 1b agricultural homestead, class 2a,
or class 2c 2b(2) agricultural property receives a consolidated
property tax statement that shows only an aggregate of the taxes
and special assessments due on that property and on other
property not classified as class 1b agricultural homestead,
class 2a, or class 2c 2b(2) agricultural property, the aggregate
tax and special assessments shown due on the property by the
consolidated statement will be due on November 15 provided that
at least 50 percent of the property's market value is classified
class 1b agricultural, class 2a, or class 2c 2b(2) agricultural.
Sec. 45. Minnesota Statutes 1988, section 279.37,
subdivision 7, is amended to read:
Subd. 7. The county auditor's statement and county
treasurer's receipt issued for payment of a deferred
installment, as herein provided for, shall not read for any
specific year's taxes, but shall read for partial or full
release of judgment, as the case may be, and shall show the year
that such judgment was entered. In distributing the taxes
collected in this manner, the county auditor shall apply the
same in the inverse order to that in which such taxes were
levied. All penalties and interest collected under the
provisions of this section shall be apportioned by the county
auditor in accordance with Minnesota Statutes 1941, sections
276.13 and 276.14 section 276.131. A duplicate treasurer's
receipt for payment of a deferred installment, as hereinafter
provided, shall be delivered to the court administrator of the
district court, and the court administrator of the district
court shall credit the amount so paid upon the judgment entered.
Sec. 46. Minnesota Statutes 1988, section 290A.03,
subdivision 12, is amended to read:
Subd. 12. [GROSS RENT.] "Gross rent" means rental paid for
the right of occupancy, at arms-length, of a homestead,
exclusive of charges for any medical services furnished by the
landlord as a part of the rental agreement, whether expressly
set out in the rental agreement or not. If the landlord and
tenant have not dealt with each other at arms-length and the
commissioner determines that the gross rent charged was
excessive, the commissioner may adjust the gross rent to a
reasonable amount for purposes of this chapter.
Any amount paid by a claimant residing in property assessed
pursuant to section 273.13 273.124, subdivision 3, 4, 5, or 6
for occupancy in that property shall be excluded from gross rent
for purposes of this chapter. However, property taxes imputed
to the homestead of the claimant or the dwelling unit occupied
by the claimant that qualifies for homestead treatment pursuant
to section 273.13 273.124, subdivision 3, 4, 5, or 6 shall be
included within the term "property taxes payable" as defined in
subdivision 13, notwithstanding the fact that ownership is not
in the name of the claimant.
Sec. 47. Minnesota Statutes 1988, section 298.28,
subdivision 3, is amended to read:
Subd. 3. [CITIES; TOWNS.] (a) 12.5 cents per taxable ton,
less any amount distributed under subdivision 8, and paragraph
(b), must be allocated to the taconite municipal aid account to
be distributed as provided in section 298.282.
(b) An amount must be allocated to towns or cities that is
annually certified by the county auditor of a county containing
a taconite tax relief area within which there is (1) an
organized township if, as of January 2, 1982, more than 75
percent of the assessed valuation of the township consists of
iron ore or (2) a city if, as of January 2, 1980, more than 75
percent of the assessed valuation of the city consists of iron
ore.
(c) The amount allocated under paragraph (b) will be the
portion of a township's or city's certified levy equal to the
proportion of (1) the difference between 50 percent of January
2, 1982, assessed value in the case of a township and 50 percent
of the January 2, 1980, assessed value in the case of a city and
its current assessed value to (2) the sum of its current
assessed value plus the difference determined in (1), provided
that the amount distributed shall not exceed $55 per capita in
the case of a township or $75 per capita in the case of a city.
For purposes of this limitation, population will be determined
according to the 1980 decennial census conducted by the United
States Bureau of the Census. The county auditor shall extend
the township's or city's levy against the sum of the township's
or city's current assessed value plus the difference between 50
percent of its January 2, 1982, assessed value and its current
assessed value in the case of a township and between 50 percent
of its January 2, 1980, assessed value and its current assessed
value in the case of a city. If the current assessed value of
the township exceeds 50 percent of the township's January 2,
1982, assessed value, or if the current assessed value of the
city exceeds 50 percent of the city's January 2, 1980, assessed
value, this paragraph shall not apply. For purposes of this
paragraph, "assessed value," when used in reference to years
other than 1980 or 1982, means, for distributions for production
year 1989, production taxes payable in 1990, the appropriate
gross tax capacities multiplied by 8.2 and for distributions for
production year 1990 and thereafter, production taxes payable in
1991 and thereafter, the appropriate net tax capacities
multiplied by 10.2.
Sec. 48. [365A.01] [TOWNS; SUBORDINATE SERVICE DISTRICTS;
PURPOSE.]
It is the purpose of sections 48 to 57 to provide a means
by which a town as a unit of general local government can
effectively provide and finance various governmental services
for its residents.
Sec. 49. [365A.02] [DEFINITION.]
"Subordinate service district" means a defined area within
the town in which one or more governmental services or additions
to townwide services are provided by the town specially for the
area and financed from revenues from the area. The boundaries
of a single subordinate service district may not embrace an
entire town.
Sec. 50. [365A.03] [ESTABLISHMENT OF SERVICE DISTRICT.]
Notwithstanding any provision of law requiring uniform
property tax rates on real or personal property within the town,
a town may establish subordinate service districts to provide
and finance a governmental service or function that it is
otherwise authorized to undertake. A function or service to be
provided may include a function or service that the town
ordinarily provides throughout the town only to the extent that
there is an increase in the level of the function or service
provided in the service district over that provided throughout
the town.
Sec. 51. [365A.04] [CREATION BY PETITION.]
Subdivision 1. [PETITION.] A petition signed by at least
50 percent of the property owners in the part of the town
proposed for the subordinate service district may be submitted
to the town board requesting the establishment of a subordinate
service district to provide a service that the town is otherwise
authorized by law to provide. The petition must include the
territorial boundaries of the proposed district and specify the
kinds of services to be provided within the district.
Subd. 2. [PUBLIC HEARING.] Upon receipt of the petition,
and the verification of the signatures by the town clerk, the
town board shall, within 30 days following verification, hold a
public hearing on the question of whether or not the requested
district shall be established.
Subd. 3. [APPROVAL; DISAPPROVAL.] Within 30 days after the
public hearing, the town board by resolution shall approve or
disapprove the establishment of the requested district. A
resolution approving the establishment of the district may
contain amendments or modifications of the district's boundaries
or functions as set forth in the petition.
Sec. 52. [365A.05] [PUBLICATION AND EFFECTIVE DATE.]
Within 20 days after passage of a resolution authorizing
the establishment of a subordinate service district, the town
board shall have the resolution published once in a qualified
newspaper of general circulation within the town. The
resolution must include a general description of the territory
to be included within the district, the kind of service to be
provided, and a statement of how the service will be financed.
A notice must also be mailed to the owner of each parcel within
the area proposed to be included in the district. The notice
shall be sent to the same address as on the property tax
statement. The district shall begin 60 days after publication
or at a later date specified in the resolution.
Sec. 53. [365A.06] [REVERSE REFERENDUM.]
Subdivision 1. [PETITION.] Upon receipt of a petition
signed by at least 25 percent of the property owners within the
territory of the proposed district, before the effective date of
its establishment as specified in section 52, the establishment
shall be in abeyance pending referendum vote within the
boundaries of the proposed district.
Subd. 2. [ELECTION.] The town board shall hold a special
election within the boundaries of the proposed district not less
than 30 nor more than 90 days after receipt of the petition.
The question submitted and voted upon by the property owners
within the territory of the proposed district must be phrased
substantially as follows:
"Shall a subordinate service district be established to
provide (service or services to be provided) financed by
(revenue sources)?"
If a majority of those voting on the question favor
creation of the district, the district shall begin upon
certification of the vote by the town clerk. The town clerk
shall administer the election.
Sec. 54. [365A.07] [EXPANSION OF BOUNDARIES OF A
DISTRICT.]
The town board, upon petition, may enlarge any existing
subordinate service district under the procedures specified in
sections 50 to 53. Only property owners residing in territory
to be added to the district shall be eligible to participate in
an election, unless at least 25 percent of the property owners
residing in the existing district petition to participate, in
which case all property owners residing in the proposed enlarged
district shall be eligible.
Sec. 55. [365A.08] [FINANCING.]
Upon adoption of the next annual budget following the
creation of a subordinate service district the town board shall
include in the budget appropriate provisions for the operation
of the district including either a property tax levied only on
property of the users of the service within the boundaries of
the district or a levy of a service charge against the users of
the service within the district, or a combination of a property
tax and a service charge on the users of the service.
A tax or service charge or a combination of them may be
imposed to finance a function or service in the district that
the town ordinarily provides throughout the town only to the
extent that there is an increase in the level of the function or
service provided in the service district over that provided
throughout the town. In that case, in addition to the townwide
tax levy, an amount necessary to pay for the increase in the
level of the function or service may be imposed in the district.
Sec. 56. [365A.09] [WITHDRAWAL; ELECTION.]
Upon receipt of a petition signed by at least 50 percent of
the property owners in the territory of the subordinate service
district requesting the removal of the district, the town board
shall hold a special election within the service district not
less than 30 nor more than 90 days after the resolution or
receipt of the petition. The question to be submitted and voted
upon by the property owners in the district shall be phrased
substantially as follows:
"Shall the subordinate service district presently
established be removed and the service or services of the town
as provided for the service district be discontinued?"
If a majority of those voting on the question favor the
removal and discontinuance of the services, the service district
shall be removed and the services shall be discontinued upon
certification of the vote by the town clerk. The town clerk
shall administer the election.
Sec. 57. [365A.10] [COORDINATION OF DISTRICTS.]
If a county establishes a subordinate service district in
part of a town under enabling law for counties, a town may not
establish a subordinate service district to provide the same
service in the part of the town served by the county. If a town
establishes a subordinate service district in part of the town
under this chapter or other law, a county may not establish a
subordinate service district to provide the same service in the
part of the town served by the town.
Sec. 58. Minnesota Statutes 1988, section 375.192,
subdivision 2, is amended to read:
Subd. 2. Notwithstanding section 270.07, upon written
application by the owner of the property, if the application
seeks a reduction in estimated market value not in excess of
$2,000 $10,000, the county board may grant the reduction or
abatement of estimated market valuation or taxes and of any
costs, penalties or interest on them as the board deems just and
equitable and order the refund in whole or part of any taxes,
costs, penalties or interest which have been erroneously or
unjustly paid. The application must be approved by the county
assessor, or, if the property is located in a city of the first
or second class having a city assessor, by the city assessor,
and by the county auditor before consideration by the county
board. The methods of obtaining a reduction or abatement of ad
valorem values contained in subdivisions 1 and 2 are in addition
to the method provided in section 270.07.
Sec. 59. Minnesota Statutes 1988, section 459.14, is
amended by adding a subdivision to read:
Subd. 8. [PROPERTY EXEMPT FROM TAXATION.] Any real or
personal property owned, leased, maintained, or operated as a
municipal parking facility under this section is owned, leased,
maintained, or operated for essential public and governmental
purposes, and is exempt from all ad valorem taxes levied by the
state or a political subdivision of the state.
Sec. 60. Minnesota Statutes 1988, section 469.012, is
amended by adding a subdivision to read:
Subd. 12. [PARKING FACILITIES.] An authority may operate
and maintain public parking facilities in connection with any of
its projects.
Sec. 61. Minnesota Statutes 1988, section 469.040,
subdivision 2, is amended to read:
Subd. 2. [LEASED PROPERTY, EXCEPTION.] Notwithstanding the
provisions of subdivision 1, any property other than property to
be operated as a parking facility that the authority leases to
private individuals or corporations for development in
connection with a redevelopment project shall have the same tax
status as if the leased property were owned by the private
individuals or corporations.
Sec. 62. Minnesota Statutes 1988, section 469.174,
subdivision 8, is amended to read:
Subd. 8. [PROJECT.] "Project" means a project as described
in section 469.142; an industrial development district as
described in section 469.058, subdivision 1; an economic
development district as described in section 469.101,
subdivision 1; a project as defined in section 469.002,
subdivision 12; a development district as defined in section
469.125, subdivision 8 9, or any special law; or a project as
defined in section 469.153, subdivision 2, paragraph (a), (b),
or (c).
Sec. 63. Minnesota Statutes 1988, section 469.175,
subdivision 7, is amended to read:
Subd. 7. [CREATION OF HAZARDOUS SUBSTANCE SUBDISTRICT;
RESPONSE ACTIONS.] (a) A municipality or authority which is
creating or has created a tax increment financing district may
establish within the district a hazardous substance subdistrict
upon the notice and after the discussion, public hearing, and
findings required for approval of the original plan. The
geographic area of the subdistrict is made up of any parcels in
the district designated for inclusion by the municipality or
authority that are designated hazardous substance sites, and any
additional parcels in the district designated for inclusion that
are contiguous to the hazardous substances sites except for the
interposition of a right-of-way. Before or at the time of
approval of the tax increment financing plan, the municipality
must make the findings under paragraphs (b) to (d), and set
forth in writing the reasons and supporting facts for each.
(b) Development or redevelopment of the site, in the
opinion of the municipality, would not reasonably be expected to
occur solely through private investment and tax increment
otherwise available, and therefore the hazardous substance
district is deemed necessary.
(c) Other parcels that are not designated hazardous
substance sites are expected to be developed together with a
designated hazardous substance site.
(d) The subdistrict is not larger than, and the period of
time during which increments are elected to be received is not
longer than, that which is necessary in the opinion of the
municipality to provide for the additional costs due to the
designated hazardous substance site.
(e) Upon request by a municipality or authority that has
incurred expenses for removal or remedial actions to implement a
development response action plan, the attorney general may:
(1) bring a civil action on behalf of the municipality or
authority to recover the expenses, including administrative
costs and litigation expenses, under section 115B.04 or other
law; or
(2) assist the municipality or agency in bringing an action
as described in clause (1), by providing legal and technical
advice, intervening in the action, or other appropriate
assistance.
The decision to participate in any action to recover expenses is
at the discretion of the attorney general.
(f) If the attorney general brings an action as provided in
paragraph (e), clause (1), the municipality or authority shall
certify its reasonable and necessary expenses incurred to
implement the development response action plan and shall
cooperate with the attorney general as required to effectively
pursue the action. The certification by the municipality or
authority is prima facie evidence that the expenses are
reasonable and necessary. The attorney general may deduct
litigation expenses incurred by the attorney general from any
amounts recovered in an action brought under paragraph (e),
clause (1). The municipality or authority shall reimburse the
attorney general for litigation expenses not recovered in an
action under paragraph (e), clause (1), and for litigation
expenses incurred to assist in bringing an action under
paragraph (e), clause (1) (2). All money recovered or paid to
the attorney general for litigation expenses under this
paragraph shall be paid to the general fund of the state for
deposit to the account of the attorney general. For the
purposes of this section, "litigation expenses" means attorney
fees and costs of discovery and other preparation for litigation.
(g) The municipality or authority shall reimburse the
pollution control agency for its administrative expenses
incurred to review and approve a development action response
plan and associated activities, and for expenses incurred for
any services rendered to the attorney general to support the
attorney general in actions brought or assistance provided under
paragraph (e). All money paid to the pollution control agency
under this paragraph shall be deposited in the environmental
response, compensation and compliance fund.
(h) Actions taken by a municipality or authority consistent
with a development response action plan are deemed to be
authorized response actions for the purpose of section 115B.17,
subdivision 12. A municipality or agency that takes actions
consistent with a development response action plan qualifies for
the defenses available under sections 115B.04, subdivision 11,
and 115B.05, subdivision 9.
(i) All money recovered by a municipality or authority in
an action brought under paragraph (e) in excess of the amounts
paid to the attorney general and the pollution control agency
must be treated as excess increments and be distributed as
provided in section 469.176, subdivision 2, clause (4), to the
extent the removal and remedial actions were initially financed
with increment revenues.
Sec. 64. Minnesota Statutes 1988, section 469.176,
subdivision 4c, is amended to read:
Subd. 4c. [ECONOMIC DEVELOPMENT DISTRICTS.] Revenue
derived from tax increment from an economic development district
may not be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or assistance in any form to
developments consisting of buildings and ancillary facilities,
if at least 25 percent of the buildings and facilities
(determined on the basis of square footage) are used for the
purposes listed in section 144(a)(8) of the Internal Revenue
Code of 1986 (determined without regard to the 25 percent
restriction in subparagraph (A)). The restrictions under this
paragraph apply only to districts located in development
regions, as defined in section 462.384, with populations in
excess of 1,000,000. Population must be determined under the
provisions of section 477A.011.
Sec. 65. Minnesota Statutes 1988, section 475.53,
subdivision 4, is amended to read:
Subd. 4. [SCHOOL DISTRICTS.] Except as otherwise provided
by law, no school district shall be subject to a net debt in
excess of ten percent of the actual market value of all taxable
property situated within its corporate limits, as computed in
accordance with this subdivision. The county auditor of each
county containing taxable real or personal property situated
within any school district shall certify to the district upon
request the market value of all such property. The commissioner
of revenue shall certify to the district upon request the market
value of railroad property within the district as most recently
determined under section 270.87. Whenever the commissioner of
revenue, in accordance with section 124.2131, subdivision 1, has
determined that the gross tax capacity of any district furnished
by county auditors is not based upon the market value of taxable
property in the district, the commissioner of revenue shall
certify to the district upon request the ratio most recently
ascertained to exist between such value and the actual market
value of property within the district. The actual market value
of property within a district, on which its debt limit under
this subdivision is based, is (a) the value certified by the
county auditors and, where applicable, by the commissioner of
revenue under section 270.87, or (b) this value divided by the
ratio certified by the commissioner of revenue, whichever
results in a higher value.
Sec. 66. Minnesota Statutes 1988, section 477A.011,
subdivision 15, is amended to read:
Subd. 15. [CITY REVENUE.] "City revenue" equals the sum of
(i) the city's aid payable under section 477A.013, in the year
prior to that for which aids are being calculated, and (ii) its
levy for taxes payable in the year prior to that for which aids
are being calculated, and (iii) for aids payable in 1991 and
subsequent years, the city's transition aid payable under
section 273.1398, subdivision 2, in the year prior to that for
which aids are being calculated.
Sec. 67. Minnesota Statutes 1988, section 477A.013,
subdivision 1, is amended to read:
Subdivision 1. [TOWNS.] In calendar year 1988, each town
which had levied for taxes payable in the previous year at least
one mill on the dollar of the assessed value of the town shall
receive a distribution equal to the greater of: (a) 60 percent
of the amount received in 1983 pursuant to Minnesota Statutes
1982, sections 273.138, 273.139, and 477A.011 to 477A.03; or (b)
the amount certified in 1987 pursuant to sections 477A.011 to
477A.03. In calendar year 1989, each town that had levied for
taxes payable in 1988 at least one mill on the dollar of the
assessed value of the town shall receive a distribution equal to
106 percent of the distribution received under Minnesota
Statutes 1987 Supplement, section 477A.013, subdivision 1, in
1988. In calendar year 1990 and subsequent years, each town
that had levied for taxes payable in the prior year a tax
capacity rate of at least .0125 .008 shall receive a
distribution equal to the amount received in 1989 under this
subdivision.
Sec. 68. Laws 1988, chapter 719, article 8, section 37, is
amended to read:
Sec. 37. [EFFECTIVE DATE.]
The part of section 31 that strikes a part of paragraph (c)
is effective June 1, 1990. Section 32 is, and the part of
section 36 that provides approval of 25 additional positions in
the department of human services for food stamp quality control,
are effective June 1, 1989. Except as provided in section 34,
the rest of this article is effective January 1, 1990.
Sec. 69. Laws 1988, chapter 719, article 12, section 29,
is amended to read:
Sec. 29. [TRANSITION RULES.]
(a) The provisions of sections 3, 6, 10, and 14 16 do not
apply to proposed tax increment financing districts for which
the authority called for a public hearing in a resolution dated
March 23, 1987, and for which a public hearing was held on April
28, 1987. The provisions of Minnesota Statutes 1987 Supplement,
sections 469.174, subdivision 10, and 469.176, subdivision 4,
apply to such districts.
(b) The provisions of sections 3, 6, 10, and 14 16 do not
apply to candidate sites in the old highway 8 corridor tax
increment project area, identified in the old highway 8 corridor
plan as approved by an authority on October 14, 1986, if the
requests for certification of the districts are filed with the
county before January 1, 1998. The provisions of Minnesota
Statutes 1987 Supplement, sections 469.174, subdivision 10, and
469.176, subdivision 4, apply to such districts.
(c) The provisions of section 14 16, subdivision 4c, do not
apply to an economic development district located in a
development district approved on November 9, 1987, provided the
request for certification of the tax increment district is
submitted to the county by September 30, 1988.
Sec. 70. [SPECIAL SERVICES DEFINED.]
For purposes of sections 70 and 71, "special services"
means all services rendered or contracted for by the city of
Mankato, including but not limited to:
(1) the repair, maintenance, operation, and construction of
any improvement authorized by Minnesota Statutes, section
429.021;
(2) parking services rendered or contracted for by the
city; and
(3) any other service provided to the public by the city
that is authorized by law or charter.
Sec. 71. [CITY OF MANKATO; ESTABLISHMENT OF SPECIAL
SERVICES DISTRICT.]
The governing body of the city of Mankato may adopt an
ordinance establishing a special service district. The
provisions of Minnesota Statutes, chapter 428A govern the
establishment and operation of special service districts in the
city.
Sec. 72. [LOCAL APPROVAL.]
Sections 70 and 71 are effective the day after compliance
with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of Mankato.
Sec. 73. [SPECIAL SERVICES DEFINED.]
For purposes of sections 73 to 75, "special services" means
all services rendered or contracted for by the city of Hopkins,
including, but not limited to:
(1) the repair, maintenance, operation, and construction of
any improvement authorized by Minnesota Statutes, section
429.021;
(2) parking services rendered or contracted for by the
city; and
(3) any other service provided to the public by the city
that is authorized by law or charter.
Sec. 74. [CITY OF HOPKINS; ESTABLISHMENT OF SPECIAL
SERVICE DISTRICT.]
The governing body of the city of Hopkins may adopt an
ordinance establishing a special service district. The
provisions of Minnesota Statutes, chapter 428A govern the
establishment and operation of special service districts in the
city.
Sec. 75. [LOCAL APPROVAL.]
Sections 73 and 74 are effective the day following
compliance with Minnesota Statutes, section 645.021, subdivision
3, by the governing body of the city of Hopkins.
Sec. 76. Laws 1988, chapter 719, article 7, section 9, is
amended to read:
Sec. 9. [COUNTY ASSESSORS; SENIOR ACCREDITATION.]
Notwithstanding Minnesota Statutes, section 273.061, the
commissioner of revenue's approval on January 1, 1989, of
appointments of assessors who are not senior accredited on
January 1, 1989, shall be for a term of one three years. A
county assessor appointed for a one-year three-year term must
reapply to the commissioner by January 1, 1990 1992, to obtain
the approval of the commissioner for the remainder of the
four-year term.
Sec. 77. [REPEALER.]
(a) Minnesota Statutes 1988, sections 38.17; 38.27,
subdivision 3; and 38.28 are repealed.
(b) Minnesota Statutes 1988, sections 276.13 and 276.14,
are repealed.
(c) Laws 1988, chapter 719, article 8, section 35, is
repealed.
(d) Minnesota Statutes 1988, sections 275.57 and 275.58,
subdivision 4, are repealed.
Sec. 78. [EFFECTIVE DATE.]
Sections 1, 34, 40, 42 to 44, and 77, paragraphs (a) and
(d), are effective for taxes levied in 1988, payable in 1989,
and thereafter except as provided in those sections. Sections 5
to 7 are effective January 1, 1989. Sections 8 to 11 are
effective January 1, 1989, for property assessed in 1989,
payable in 1990, and thereafter. Sections 12, 13, 17, 18, 21,
28, 38, 45, 63, 65, 66, and 77, paragraph (b), are effective the
day following final enactment.
Section 15 is effective the day following final enactment
except the amendments to the transitional housing exemption in
clause (19) are effective for taxes levied in 1989, payable in
1990, and thereafter.
Notwithstanding the May 1 application date in Minnesota
Statutes, section 273.111, subdivision 8, section 19 is
effective for the 1989 assessment, payable in 1990, and
thereafter.
Section 20 is effective for taxes levied in 1989, payable
in 1990, and thereafter. Notwithstanding Minnesota Statutes,
section 273.112, subdivision 6, in order to qualify for
valuation under Minnesota Statutes, section 273.112, for the
1989 assessment, the taxpayer of the property operated by
private clubs under Minnesota Statutes, section 273.112,
subdivision 3, clause (c)(3), must submit an affidavit or other
written verification to the assessor by August 1, 1989, showing
that the bylaws in rules and regulations of the private club
meet the eligibility requirements of section 20 by August 1,
1989.
Sections 30 and 31 are effective for taxes payable in 1989
only. Sections 39 and 41 are effective for appeals filed after
the date of enactment. Section 47 is effective for
distributions for production year 1989, production taxes payable
in 1990, and thereafter. Section 58 is effective July 1, 1989.
Section 64 is effective as provided in Laws 1988, chapter 719,
article 12, section 30, as amended in Laws 1989, chapter 1,
section 11. Section 67 is effective for distributions in
calendar year 1990 and thereafter. Section 68 is effective June
1, 1989. Section 69 is effective May 8, 1988.
Section 77, paragraph (c), is effective for fiscal year
1989. Sections 3, 4, 14, 22, 24 to 27, 29, 33, 35 to 37, and 59
to 61 are effective for taxes levied in 1989, payable in 1990,
and thereafter.
ARTICLE 3
SPECIAL TAXES
Section 1. Minnesota Statutes 1988, section 297.01,
subdivision 13, is amended to read:
Subd. 13. "Stamp" means the adhesive stamp supplied by the
revenue commissioner or the imprint made by a tax meter machine
authorized by the commissioner.
Sec. 2. Minnesota Statutes 1988, section 297.01, is
amended by adding a subdivision to read:
Subd. 16. "Licensing period" means a two-year period
during which licenses are issued. A licensing period begins on
January 1 of each even-numbered year and ends on December 31 of
the following odd-numbered year.
Sec. 3. Minnesota Statutes 1988, section 297.03,
subdivision 6, is amended to read:
Subd. 6. [TAX METER MACHINES; STAMPING MACHINES.] (a)
Before January July 1, 1990, the commissioner may authorize any
person licensed as a distributor to stamp packages with a tax
meter machine, approved by the commissioner, which shall be
provided by the distributor. The commissioner may provide for
the use of such a machine by the distributor, supervise and
check its operation, provide for the payment of the tax on any
package so stamped, subject to the discount provided in
subdivision 5. Except as provided in paragraph (d), the
commissioner may require the furnishing of a corporate surety
bond, check guarantee bond, or certified check in a suitable
amount to guarantee the payment of the tax.
(b) Before January 1, 1990, the commissioner may authorize,
and After December 31, 1989 June 30, 1990, the commissioner
shall require any person licensed as a distributor whose stamp
meter machine is no longer operational to stamp packages with a
heat-applied tax stamping machine, approved by the commissioner,
which shall be provided by the distributor. The commissioner
shall supervise and check the operation of the machines and
shall provide for the payment of the tax on any package so
stamped, subject to the discount provided in subdivision 5. The
commissioner may sell heat-applied stamps on a credit basis
under conditions prescribed by the commissioner. Except as
provided in paragraph (d), the commissioner may require the
furnishing of a corporate surety bond, check guarantee bond, or
certified check in an amount suitable to guarantee payment of
the tax stamps so purchased by a distributor. The stamps shall
be sold by the commissioner at a price which includes the tax
after giving effect to the discount provided in subdivision 5.
The commissioner shall recover the actual costs of the stamps
from the distributor.
(c) If the commissioner finds that a stamping machine is
not printing or affixing a legible stamp on the package, the
commissioner may order the distributor to immediately cease the
stamping process until the machine is functioning properly.
(d) Every prior continuous compliance taxpayer is exempt
from all requirements under this chapter concerning the
furnishing of a bond. This exemption continues for the taxpayer
until the commissioner determines that the taxpayer (1) is
delinquent in the filing of any return, or (2) is delinquent or
deficient in the payment of any uncontested tax liability under
this chapter. At that time that taxpayer is subject to the bond
requirements of this chapter and, as a condition of being
allowed to continue to engage in the business licensed under
this chapter, is required to furnish bond to the commissioner as
provided in this chapter. The taxpayer shall furnish the bond
for a period of two years, after which, if the taxpayer has not
been delinquent in the filing of any returns, or delinquent or
deficient in the paying of any tax under this chapter, the
commissioner may reinstate the person as a prior continuous
compliance taxpayer. A taxpayer who fails to pay an uncontested
tax liability under this chapter may be required to post bond or
other acceptable security with the commissioner guaranteeing the
payment of the uncontested tax liability. The commissioner
shall annually establish the maximum amount of heat applied
stamps or meter units that may be purchased each month.
Notwithstanding any other provisions of this chapter, the tax
due on the return will be based upon actual heat applied stamps
or meter units purchased during the reporting period.
Sec. 4. Minnesota Statutes 1988, section 297.04,
subdivision 4, is amended to read:
Subd. 4. [DISTRIBUTOR'S APPLICATION; FEE, BOND; CERTIFIED
CHECK; SUBJOBBER'S LICENSE.] (a) Except as otherwise provided in
paragraph (b), Each application for a distributor's license
shall be accompanied by a fee of $150 and a corporate surety
bond issued by a surety licensed to do business in this state in
the sum of $1,000, conditioned upon the true and faithful
compliance by the licensee with all of the provisions of this
act. This bond, or a reissue thereof, or a substitute therefor,
shall be kept in full force and effect during the entire period
covered by the license $300. A separate application for license
shall be made for each place of business at which a distributor
proposes to engage in business as such under sections 297.01 to
297.13, provided that a separate application for a subjobber's
license may be made by a licensed distributor for each place of
business (other than that licensed in the distributor's license)
to which the distributor delivers and from which the distributor
sells or distributes stamped cigarettes.
Each application for a subjobber's license shall be
accompanied by a fee of $12 $24.
A distributor or subjobber applying for a license between
July 1 and December 31 during the second year of any year a
two-year licensing period shall be required to pay only one-half
of the license fee provided for herein.
(b) In lieu of the bond required in paragraph (a), a
certified check made payable to the commissioner may be filed
with the commissioner. The department of revenue shall not pay
interest on funds encumbered by the check.
Sec. 5. Minnesota Statutes 1988, section 297.04,
subdivision 5, is amended to read:
Subd. 5. [ISSUANCE.] The commissioner, upon receipt of the
application and bond in proper form, and payment of the license
fee required by subdivision 4, shall, unless otherwise provided
by sections 297.01 to 297.13, issue the applicant a license in
form as prescribed by the commissioner, which said license shall
permit the applicant to whom it is issued to engage in business
as a distributor or subjobber at the place of business shown in
the application.
Sec. 6. Minnesota Statutes 1988, section 297.04,
subdivision 6, is amended to read:
Subd. 6. [EXPIRATION.] Each license issued shall expire on
December 31 following its date of issue the second year of the
licensing period unless sooner revoked by the commissioner or
unless the business with respect to which the license was issued
is transferred. In either case the holder of the license shall
immediately surrender it to the commissioner.
Sec. 7. Minnesota Statutes 1988, section 297.041,
subdivision 1, is amended to read:
Subdivision 1. [WHOLESALERS.] Any wholesaler who furnishes
a surety bond in a sum satisfactory to the commissioner shall be
permitted to set aside, without affixing the stamps required by
this chapter, that part of the wholesaler's stock necessary for
the conduct of business in making sales to the established
governing body of any Indian tribe recognized by the United
States Department of Interior. The unstamped stock shall be
kept separate and apart from stamped stock. Every wholesaler
shall, at the time of shipping or delivering any of the
unstamped stock to an Indian tribal organization, make a true
duplicate invoice which shall show the complete details of the
sale or delivery and shall transmit the duplicate to the
commissioner not later than the 18th day of the following
calendar month. Failure to comply with the requirements of this
section shall cause the commissioner to revoke the permission
granted to the wholesaler to maintain a stock of goods which may
be unstamped.
Sec. 8. Minnesota Statutes 1988, section 297.08,
subdivision 1, is amended to read:
Subdivision 1. [CONTRABAND DEFINED.] The following are
declared to be contraband:
(1) All packages which do not have stamps affixed to them
as provided in sections 297.01 to 297.13 and all devices for the
vending of cigarettes in which such unstamped packages are
found, including all contents contained within the devices.
(2) Any device for the vending of cigarettes and all
packages of cigarettes contained therein, where the device does
not afford at least partial visibility of contents. Where any
package exposed to view does not carry the stamp or imprint
required by sections 297.01 to 297.13, it shall be presumed that
all packages contained in the device are unstamped and
contraband.
(3) Any device for the vending of cigarettes to which the
commissioner or authorized agents have been denied access for
the inspection of contents. In lieu of seizure, the
commissioner or an agent may seal the device to prevent its use
until inspection of contents is permitted.
(4) Any device for the vending of cigarettes which does not
carry the name and address of the owner, plainly marked and
visible from the front of the machine.
(5) Any device including, but not limited to, motor
vehicles, trailers, snowmobiles, airplanes, and boats used with
the knowledge of the owner or of a person operating with the
consent of the owner for the storage or transportation of more
than 5,000 cigarettes which are contraband under this
subdivision. When cigarettes are being transported in the
course of interstate commerce, or are in movement from either a
public warehouse to a distributor upon orders from a
manufacturer or distributor, or from one distributor to another,
the cigarettes are not contraband, notwithstanding the
provisions of clause (1).
Sec. 9. Minnesota Statutes 1988, section 297.31, is
amended by adding a subdivision to read:
Subd. 17. "Licensing period" means a two-year period
during which licenses are issued. A licensing period begins on
January 1 of each even-numbered year and ends on December 31 of
the following odd-numbered year.
Sec. 10. Minnesota Statutes 1988, section 297.33,
subdivision 4, is amended to read:
Subd. 4. (a) Except as otherwise provided in paragraph
(b), Each application for a distributor's license shall be
accompanied by a fee of $37.50 $75. The application shall also
be accompanied by a corporate surety bond issued by a surety
licensed to do business in this state, in the sum of $1,000,
conditioned upon the true and faithful compliance by the
distributor with all the provisions of sections 297.31 to 297.39
and the payment when due of all taxes, penalties, and accrued
interest arising in the ordinary course of business or by reason
of any delinquent money which may be due the state of
Minnesota. This bond shall be in a form to be fixed by the
commissioner and approved by the attorney general. Whenever it
is the opinion of the commissioner that the bond given by a
licensee is inadequate in amount to fully protect the state, the
commissioner shall require either an increase in the amount of
said bond or additional bond, in such amount as the commissioner
deems sufficient. Any bond required by this subdivision, or a
reissue thereof, or a substitute therefor, shall be kept in full
force and effect during the entire period covered by the license.
A separate application for license shall be made for each
place of business at which a distributor proposes to engage in
business as such under sections 297.31 to 297.39. A separate
application for a subjobber's license may be made by a licensed
distributor for each place of business, other than that licensed
in the distributor's license, to which the distributor sells or
distributes tobacco products upon which the tax imposed by this
chapter has been imposed to other than the ultimate consumer.
(b) In lieu of the bond required in paragraph (a), a
certified check may be filed with the commissioner. The check
must be made payable to the commissioner and in an amount to be
established by the commissioner or the commissioner's designee
but not less than twice the average monthly liability of the
taxpayer. The department of revenue shall pay no interest on
funds encumbered by the check.
Sec. 11. Minnesota Statutes 1988, section 297.33,
subdivision 5, is amended to read:
Subd. 5. (a) Each application for a subjobber's license
shall be accompanied by a fee of $10 $20.
(b) All licenses expire on December 31 of the second year
of the licensing period in which they were issued.
Sec. 12. Minnesota Statutes 1988, section 297.33,
subdivision 6, is amended to read:
Subd. 6. A distributor or subjobber applying for a license
between July 1 and December 31 of any during the second year of
a licensing period shall be required to pay only one-half of the
license fee provided for herein.
Sec. 13. Minnesota Statutes 1988, section 297.33,
subdivision 7, is amended to read:
Subd. 7. The commissioner, upon receipt of the application
(and bond, in the case of the distributor) in proper form, and
payment of the license fee required by subdivision 4 or
subdivision 5, shall, unless otherwise provided by sections
297.31 to 297.39, issue the applicant a license in form as
prescribed by the commissioner, which license shall permit the
applicant to whom it is issued to engage in business as a
distributor or subjobber at the place of business shown in the
application. The commissioner shall assign a permit number to
each person licensed as a distributor at the time of issuance of
the first license, which shall be inscribed upon all licenses
issued to that distributor.
Sec. 14. Minnesota Statutes 1988, section 297.33,
subdivision 8, is amended to read:
Subd. 8. Each license issued for any period subsequent to
June 30, 1971 shall expire on December 31 following its date of
issue the second year of the licensing period unless sooner
revoked by the commissioner or unless the business with respect
to which the license was issued is transferred. In either case
the holder of the license shall immediately surrender it to the
commissioner.
Sec. 15. Minnesota Statutes 1988, section 297C.03,
subdivision 1, is amended to read:
Subdivision 1. [MANNER AND TIME OF PAYMENT; PENALTIES;
DEPOSIT OF TAX PROCEEDS.] The tax on wines and distilled spirits
on which the excise tax has not been previously paid must be
paid to the commissioner by persons having on file with the
commissioner a sufficient bond as provided in subdivision 4
liable for the tax on or before the 18th day of the month
following the month in which the first sale is made in this
state by a licensed manufacturer or wholesaler. Every person
liable for the tax on wines or distilled spirits imposed by
section 297C.02 must file with the commissioner on or before the
18th day of the month following first sale in this state by a
licensed manufacturer or wholesaler a return in the form
prescribed by the commissioner, and must keep records and render
reports required by the commissioner. A person liable for any
tax on wines or distilled spirits not having on file a
sufficient bond must pay the tax within 24 hours after first
sale in this state. The commissioner may certify to the
commissioner of public safety any failure to pay taxes when due
as a violation of a statute relating to the sale of intoxicating
liquor for possible revocation or suspension of license.
Sec. 16. Minnesota Statutes 1988, section 297C.09, is
amended to read:
297C.09 [IMPORTATION BY INDIVIDUALS.]
A person, other than a person under the age of 21 years,
entering Minnesota from another state may have in possession one
liter of intoxicating liquor or 288 ounces of malt liquor and a
person entering Minnesota from a foreign country may have in
possession four liters of intoxicating liquor or ten quarts (320
ounces) of malt liquor without the required payment of the
Minnesota excise tax. Amounts in excess of these quantities may
be imported only by a licensee holding the appropriate license
as manufacturer, wholesaler, or importer under section 340A.301
or 340A.302. A collector of commemorative bottles, other than a
person under the age of 21 years, entering Minnesota from
another state may have in possession 12 or fewer commemorative
bottles without the required payment of the Minnesota excise
tax. A person who imports or has in possession untaxed
intoxicating liquor or malt liquor in excess of the quantities
provided for in this section is guilty of a misdemeanor. This
section does not apply to the consignments of alcoholic
beverages shipped into this state by holders of Minnesota import
licenses or Minnesota manufacturers and wholesalers when
licensed by the commissioner of public safety or to common
carriers with licenses to sell intoxicating liquor in more than
one state. A peace officer, the commissioner, or their
authorized agents, may seize untaxed liquor.
Sec. 17. [REPEALER.]
Minnesota Statutes 1988, sections 297.01, subdivision 15;
297.03, subdivision 12; 297.04, subdivision 10; 297.33,
subdivision 13; and 297C.03, subdivisions 4 and 4a, are repealed.
Sec. 18. [EFFECTIVE DATE.]
Sections 1 and 8 are effective July 1, 1990. Sections 2,
4, 6, 9 to 12, and 14 are effective for license applications for
the year 1990 and thereafter, except that sections 4 and 10 are
effective for bonding periods beginning after December 31, 1989,
for provisions applying to bonding requirements. Any bonds for
periods before January 1, 1990, must be kept in full force and
effect until the statute of limitations for those periods has
expired.
Sections 3, 5, 7, 13, 15, and 17 are effective for bonding
periods beginning after December 31, 1989, with the following
exceptions: (1) any bonds for periods before January 1, 1990,
must be kept in full force and effect until the statute of
limitations for those periods has expired, (2) section 17 is
effective July 1, 1990, for provisions applying to stamps and
tax meter machines, (3) section 3 is effective July 1, 1989, for
provisions applying to tax meter machines, and (4) section 3 is
effective July 1, 1990, for provisions applying to meter units.
Section 16 is effective the day following final enactment.
ARTICLE 4
MILL RATE CONVERSIONS
Section 1. Minnesota Statutes 1988, section 3.983,
subdivision 3, is amended to read:
Subd. 3. [MISCELLANEOUS EXCEPTIONS.] A fiscal note need
not be prepared for the cost of a mandated action if the law
containing the mandate:
(a) (1) accommodates a specific local request;
(b) (2) results in no new local government duties;
(c) (3) leads to revenue losses from exemptions to taxes
other than sales, use, or property taxes;
(d) (4) provides only clarifying or conforming,
nonsubstantive changes on local government;
(e) (5) imposes additional net local costs which are minor
(less than $200 for any single local government if the mandate
does not apply statewide or less than one-tenth of a mill
0.00242 percent times the entire market value of taxable
property in the state if the mandate is statewide) and do not
cause a financial burden on local government;
(f) (6) is a legislative mandate or executive order enacted
before July 1, 1985, or a rule initially implementing
legislation enacted before July 1, 1985;
(g) (7) implements something other than a state statute or
executive order, such as a federal, court, or voter-approved
mandate;
(h) (8) appears in rules that are permissive or
discretionary in nature;
(i) (9) defines a new crime or redefines an existing crime
or infraction;
(j) (10) provides, or falls within the purview of existing,
revenue sources or other financing mechanisms; or
(k) (11) results in savings that equal or exceed costs.
Sec. 2. Minnesota Statutes 1988, section 18.022,
subdivision 2, is amended to read:
Subd. 2. [COST.] (a) In order to defray the cost of such
activities, the governing body of any such the political
subdivision may levy a special tax which, except when levied by
a county, shall does not exceed two-thirds mill 0.01596 percent
of taxable market value in any year in excess of charter or
statutory millage limitations, but not in any event more than 50
cents per capita, and any such. The political subdivision may
make such a levy, where necessary, separate from the general
levy and at any time of the year.
(b) If, because of the prevalence of Dutch elm disease, the
governing body of such a the political subdivision is unable to
defray the cost of control activities authorized by this section
within the limits set by this subdivision, the limits set by
this subdivision are increased to 1-1/3 mills 0.03216 percent of
taxable market value, but not in any event more than one dollar
per capita.
Sec. 3. Minnesota Statutes 1988, section 18.111,
subdivision 1, is amended to read:
Subdivision 1. [LEVY LIMIT.] An annual levy of not to
exceed one-third mill on each dollar of gross tax capacity
0.00798 percent of market value may be levied for mosquito
abatement purposes on all taxable property in any governmental
unit undertaking mosquito abatement as provided in sections
18.041 to 18.161. Such The tax shall be certified, levied and
collected in the same manner as other taxes caused to be levied
by the governmental unit.
Sec. 4. Minnesota Statutes 1988, section 40A.15,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBLE RECIPIENTS.] All counties within the
state, municipalities that prepare plans and official controls
instead of a county, and districts are eligible for assistance
under the program. Counties and districts may apply for
assistance on behalf of other municipalities. In order to be
eligible for financial assistance a county or municipality must
agree to levy at least one-half mill on the dollar of gross tax
capacity of property within its jurisdiction 0.01209 percent of
taxable market value for agricultural land preservation and
conservation activities or otherwise spend the equivalent amount
of local money on those activities, or spend $15,000 of local
money, whichever is less.
Sec. 5. Minnesota Statutes 1988, section 88.04,
subdivision 3, is amended to read:
Subd. 3. All towns and cities are hereby authorized and
directed to shall take necessary precautions to prevent the
starting and spreading of forest or prairie fires and to
extinguish the same; and are hereby further authorized to them.
They may levy a tax of not more than 3-1/3 mills 0.08059 percent
of taxable market value annually upon the taxable property of
such municipalities, but in no municipality to. The tax in any
municipality shall not exceed a total of $3,000 in any one year,
which. The tax when collected shall be known as the fire fund
and kept separate and apart from all other funds and used
only in paying to pay all necessary and incidental expenses
incurred in enforcing the provisions of sections 88.03 to
88.21. Not Up to exceed $500 shall be expended in any one year
from any such fire fund for the support of any municipal fire
department. No such municipality shall make any levy for its
fire fund at any time when the same fund contains $5,000 or
more, consisting of including cash on hand or and uncollected
taxes that are not delinquent or both.
Sec. 6. Minnesota Statutes 1988, section 110.71,
subdivision 2, is amended to read:
Subd. 2. The governing body of any city or town may use
any available funds and may levy a special tax of not to exceed
two thirds of one mill, nor the lesser of (1) 0.01596 percent of
taxable market value, or (2) 50 cents per capita, in any year in
addition to all other taxes authorized by law, to carry out the
provisions of subdivisions 1 to 4.
Sec. 7. Minnesota Statutes 1988, section 110B.20, is
amended to read:
110B.20 [EXEMPTION FROM LEVY LIMIT.]
The governing body of any county, municipality, or township
may levy a tax in an amount required to implement sections
110B.01 to 110B.30. A levy to pay the cost of implementing
sections 110B.01 to 110B.30 or to pay the cost of projects or
programs identified in an adopted comprehensive water plan is in
addition to other taxes authorized by law. The amount of the
levy up to .75 mill times the adjusted gross tax capacity of the
county, municipality, or town 0.01813 percent of taxable market
value is exempt from any the per capita limitation on taxes
imposed by chapter 275 section 275.11.
Sec. 8. Minnesota Statutes 1988, section 112.61,
subdivision 2, is amended to read:
Subd. 2. [ORGANIZATIONAL EXPENSE FUND.] The organizational
expense fund consists of an ad valorem tax levy, not to
exceed two-thirds of one mill on each dollar of gross tax
capacity of all taxable property within the district 0.01596
percent of taxable market value, or $60,000, whichever is less.
The funds shall be used for organizational expenses and
preparation of an overall plan for projects and improvements.
The managers of the district may borrow from the affected
counties up to 75 percent of the anticipated funds to be
collected from the organizational expense fund levy and the
counties affected may make the advancements. The advancement of
anticipated funds shall be apportioned among affected counties
in the same ratio as the gross tax capacity of the area of the
counties within the district bears to the gross tax capacity of
the entire district. If an established district is enlarged, an
organizational expense fund may be levied against the area added
to the district in the way provided in this subdivision.
Unexpended funds collected for the organizational expense may be
transferred to the administrative fund and used for the purposes
authorized for it.
Sec. 9. Minnesota Statutes 1988, section 112.61,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATIVE FUND.] The administrative fund
consists of an ad valorem tax levy not to exceed one mill on
each dollar of gross tax capacity of all taxable property within
the district 0.02418 percent of taxable market value, or
$125,000, whichever is less. The funds shall be used for
general administrative expenses and to construct and maintain
projects of common benefit to the district. The managers may
make an annual levy for this fund as provided in section
112.611. In addition to the annual administrative levy, the
managers may annually levy a tax of not to exceed one-third of
one mill 0.00798 percent of taxable market value for a period of
not to exceed 15 consecutive years to pay the cost attributable
to the basic water management features of projects initiated by
petition of a municipality of the district.
Sec. 10. Minnesota Statutes 1988, section 112.61,
subdivision 8, is amended to read:
Subd. 8. [SURVEY AND DATA ACQUISITION FUND.] The survey
and data acquisition fund is established or used only when no
other funds are available to the district to pay to make
necessary surveys and acquire data. The fund consists of an ad
valorem levy the proceeds of a property tax, which can be levied
not more than once every five years, not to exceed one mill on
each dollar of gross tax capacity of all taxable property within
the district 0.02418 percent of taxable market value. The
balance of the survey and data acquisition fund must never
exceed $50,000. In a subsequent proceeding for a work where a
survey has been made, the attributable cost of the survey as
determined by the managers shall be included as a part of the
cost of the work and repaid to the survey and data acquisition
fund.
Sec. 11. Minnesota Statutes 1988, section 138.053, is
amended to read:
138.053 [COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
TOWNS.]
The governing body of any home rule charter or statutory
city or town excepting cities of the first class may appropriate
annually an amount from its general fund of not to exceed one
mill of the gross tax capacity of the taxable property in the
city or town the amount raised by a levy of 0.02418 percent of
taxable market value to be paid to the historical society of
their its respective county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying
on the historical work in said the county. No city or town may
appropriate any funds for the benefit of any historical society
unless such the society shall be is affiliated with and approved
by the Minnesota historical society.
Sec. 12. Minnesota Statutes 1988, section 162.07,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATIONS FOR RURAL COUNTIES.] A two-thirds
of one mill levy An amount equal to a levy of 0.01596 percent on
each rural county's total gross tax capacity taxable market
value for the last preceding calendar year shall be computed and
shall be subtracted from such the county's total estimated
construction costs. The result thereof shall be the money needs
of such the county. For the purpose of this section, "rural
counties" shall be construed to mean means all counties having a
population of less than 175,000.
Sec. 13. Minnesota Statutes 1988, section 162.07,
subdivision 4, is amended to read:
Subd. 4. [COMPUTATION FOR URBAN COUNTIES.] A four-tenths
mill levy An amount equal to a levy of 0.00967 percent on each
urban county's total gross tax capacity taxable market value for
the last preceding calendar year shall be computed and shall be
subtracted from such the county's total estimated construction
costs. The result thereof shall be the money needs of the
county. For the purpose of this section, " urban
counties" shall be construed to mean means all counties having a
population of 175,000 or more.
Sec. 14. Minnesota Statutes 1988, section 162.081,
subdivision 4, is amended to read:
Subd. 4. [PURPOSES.] Money apportioned to a county from
the town road account must be distributed to the treasurer of
each town within the county, according to a distribution formula
adopted by the county board. The formula must take into account
each town's levy for road and bridge purposes, its population
and town road mileage, and other factors as the county board
deems advisable in the interests of achieving equity among the
towns. Distribution of town road funds to the treasurer of the
towns must be made at the same time as the first payment is made
for tax payments received by the county treasurer as provided in
section 276.11. Distribution of funds to town treasurers in a
county which has not adopted a distribution formula under this
subdivision must be made according to a formula prescribed by
the commissioner by rule. A formula adopted by a county board
or by the commissioner must provide that a town, in order to be
eligible for distribution of funds from the town road account in
a calendar year, must have levied in the previous year for road
and bridge purposes at least two mills on the dollar of the
gross tax capacity of the town 0.04835 percent of taxable market
value.
Money distributed to a town under this subdivision may be
expended by the town only for the construction, reconstruction,
and gravel maintenance of town roads within the town.
Sec. 15. Minnesota Statutes 1988, section 164.04,
subdivision 3, is amended to read:
Subd. 3. [EMERGENCIES.] In case of emergency after the
town meeting, but not later than October 1 in the same year, the
town board may levy a tax on the property in the town for road
and bridge purposes, in addition to any tax voted at the annual
town meeting for road and bridge purposes, in an amount not to
exceed 1.6-2/3 mills on the dollar of the gross tax capacity of
the property in the town 0.04028 percent of taxable market value.
Any tax so levied shall forthwith be certified to the county
auditor for extension and collection. The town board may
thereafter pledge the credit of the town by issuing town orders,
not exceeding the amount of the additional tax so levied for
road and bridge purposes, in payment for the emergency work done
or material used on the roads within the town.
Sec. 16. Minnesota Statutes 1988, section 164.05,
subdivision 1, is amended to read:
Subdivision 1. [POWERS.] In any town wherein in which the
voters shall at the annual town meeting vote as hereinafter
provided to authorize the town board so to do so as provided in
this section, the town board may levy and assess on the real and
personal property in the town, other than money and credits
taxed under the provisions of chapter 285, a tax not to exceed
in amount 3-1/3 mills on the dollar of the gross tax capacity of
such property, which tax so levied 0.08051 percent of taxable
market value. The tax shall be known as the town road drainage
tax. Such tax shall be additional to all other taxes which the
town is or may hereafter be authorized to levy, and the amount
of such tax so levied and collected shall be deemed to have been
levied and collected for road and bridge purposes within the
meaning of any law limiting the amount of taxes which may be
levied or voted at the annual town meeting; provided, that in
towns having a gross tax capacity of not less than $1,000,000,
nor more than $8,000,000, and which otherwise come under the
provisions of sections 368.02 to 368.11 the amount of such tax
so levied and collected shall not be deemed to have been levied
and collected for road and bridge purposes within the meaning of
any law limiting the amount of taxes which may be levied or
voted at the annual town meeting.
Sec. 17. Minnesota Statutes 1988, section 174.27, is
amended to read:
174.27 [PUBLIC EMPLOYER COMMUTER VAN PROGRAMS.]
Any statutory or home rule charter city, county, school
district, independent board or agency may acquire or lease
commuter vans, enter into contracts with another public or
private employer to acquire or lease such vans, or purchase such
a service for the use of its employees. The governing body of
any such city, county, or school district may by resolution
establish a commuter van revolving fund to be used to acquire or
lease commuter vans for the use of its employees. Any payments
out of the fund shall be repaid to the fund out of revenues
derived from the use by the employees of the city, county, or
school district, of the vans so purchased or leased. For the
purpose of establishing the fund any city, county, or school
district is authorized to make a one time levy not to exceed one
tenth of a mill 0.00242 percent of taxable market value in
excess of all taxing limitations except the limitations imposed
under sections 275.50 to 275.56, without affecting the amount or
rate of taxes which may be levied by the city, county, or school
district for other purposes or by any local governments in the
area. Any city, county, or school district which establishes a
commuter van acquisition program or contracts for this service
is authorized to levy a tax not to exceed 1/100 mill 0.00024
percent of taxable market value for the purpose of paying the
administrative and promotional costs of the program which levy
shall be in excess of all taxing limitations, without affecting
the amount or rate of taxes which may be levied by the city,
county, or school district for other purposes or by a local
government in the area except the limitations imposed under
sections 275.50 to 275.56. The governing body of any city,
county, or school district may by resolution terminate the
commuter van revolving fund and use the funds for other purposes
authorized by law.
Sec. 18. Minnesota Statutes 1988, section 193.145,
subdivision 2, is amended to read:
Subd. 2. [TAX LEVY, LIMITATION.] A county or municipality
in which an armory has been constructed or is to be constructed
hereunder may by resolution of its governing body irrevocably
provide for levying and collecting annually for a specified
period, not exceeding 40 years, a tax upon all taxable property
therein of such amount as such governing body may determine,
which, unless levied by a county, shall not exceed one-third of
one mill. 0.00798 percent of taxable market value.
The proceeds of such the levy as collected shall be paid to
such the corporation for the purposes herein prescribed. Such
The county or municipality shall have power to may make such tax
the levies and payments and to bind itself thereto by such
resolution of its governing body. The provisions of such the
resolution may be made conditional upon the giving of an
agreement by the adjutant general as authorized in subdivision
4. The obligations of such the county or municipality to levy,
collect, and pay over such the taxes shall not be deemed or
construed to constitute an indebtedness of such the county or
municipality within the meaning of any provision of law or of
its charter limiting its total or net indebtedness, and such
taxes may be levied and collected without regard to any
statutory or charter provision limiting the amount or rate of
taxes which such county or municipality is otherwise authorized
to levy.
Sec. 19. Minnesota Statutes 1988, section 237.35, is
amended to read:
237.35 [TAX LEVY FOR CONSTRUCTION.]
When any town shall have has authorized the construction,
acquiring, operation, or maintenance of a telephone system, as
set forth in sections 237.33 and 237.34, and determined the
amount of money to be raised for that purpose, the town board of
supervisors may levy a tax for the amount of money to be raised
therefor. The annual tax levy for such that purpose shall not
exceed 3 1/3 mills upon the taxable property of such town
0.08051 percent of taxable market value.
Sec. 20. Minnesota Statutes 1988, section 273.1102,
subdivision 3, is amended to read:
Subd. 3. [1988 ADJUSTMENT.] For School districts district
levy limitations or authorities expressed in terms of mills and
adjusted assessed value, their levy limitations in any special
law that is not codified in Minnesota Statutes shall be
converted by the department of education to "equalized gross tax
capacity rates." for taxes payable in 1989 and 1990 and to
equalized net tax capacity rates for taxes payable in 1991 and
thereafter. For purposes of this calculation, the 1987 adjusted
assessed values of the district shall be converted to "adjusted
gross tax capacities" by multiplying the equalized market values
by class of property by the gross tax capacity rates provided in
section 273.13. Each county assessor and the city assessors of
Minneapolis, Duluth, and St. Cloud shall furnish the
commissioner of revenue the 1987 market value for taxes payable
in 1988 for any new classes of property established in this
article. The commissioner shall use those values, and estimate
values where needed, in developing the 1987 tax capacity for
each school district under this section. The requirements of
section 124.2131, subdivisions 1, paragraph (c), and 2 and 3,
shall remain in effect.
Sec. 21. Minnesota Statutes 1988, section 275.011,
subdivision 1, is amended to read:
Subdivision 1. The property tax levied for any purpose
under a special law that is not codified in Minnesota Statutes
or a city charter provision and that is subject to a mill rate
limitation imposed by statute or the special law or city charter
provision, excluding levies subject to mill rate limitations
that use adjusted assessed values determined by the commissioner
of revenue under section 124.2131, must not exceed the following
amount for the years specified:
(a) for taxes payable in 1988, the product of the
applicable mill rate limitation imposed by statute or special
law or city charter provision multiplied by the total assessed
valuation of all taxable property subject to the tax as adjusted
by the provisions of Minnesota Statutes 1986, sections 272.64;
273.13, subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the
property tax levy limitation for the taxes payable year 1988
determined under clause (a) multiplied by (2) an index for
market valuation changes equal to the assessment year 1988 total
market valuation of all taxable property subject to the tax
divided by the assessment year 1987 total market valuation of
all taxable property subject to the tax; and
(c) for taxes payable in 1990 and subsequent years, the
product of (1) the property tax levy limitation for the previous
year determined pursuant to this subdivision multiplied by (2)
an index for market valuation changes equal to the total market
valuation of all taxable property subject to the tax for the
current assessment year divided by the total market valuation of
all taxable property subject to the tax for the previous
assessment year.
For the purpose of determining the property tax levy
limitation for the taxes payable year 1988 and subsequent years
under this subdivision, "total market valuation" means the total
market valuation of all taxable property subject to the tax
without valuation adjustments for fiscal disparities (chapter
473F), tax increment financing (sections 469.174 to 469.179),
and high voltage transmission lines (section 273.425).
Sec. 22. Minnesota Statutes 1988, section 275.011,
subdivision 2, is amended to read:
Subd. 2. A mill rate levy limitation imposed by statute or
a special law or city charter provision that is presently in
effect, excluding those mill rate levy limitations that use
adjusted assessed values determined by the commissioner of
revenue under section 124.2131, shall be construed to allow no
more and no less property taxes than the amount determined under
this section.
Sec. 23. Minnesota Statutes 1988, section 275.077,
subdivision 2, is amended to read:
Subd. 2. The difference between the correct levy and the
erroneous levy shall be added to the township levy for the
subsequent levy year; provided that if the amount of the
difference exceeds five mills 0.12089 percent of taxable market
value, the excess shall be added to the township levy for the
second and later subsequent levy years, not to exceed an
additional levy of five mills 0.12089 percent of taxable market
value in any year, until the full amount of the difference has
been levied. The funds collected from the corrected levies
shall be used to reimburse the county for the payment required
by subdivision 1.
Sec. 24. Minnesota Statutes 1988, section 275.28,
subdivision 1, is amended to read:
Subdivision 1. [AUDITOR TO MAKE.] The county auditor shall
make out the tax lists according to the prescribed form, and to
correspond with the assessment districts. The rate percent
necessary to raise the required amount of the various taxes
shall be calculated on the gross tax capacity of property as
determined by the state board of equalization, but, in
calculating such rates, no rate shall be used resulting in a
fraction other than a decimal fraction, or less than one-tenth
of a mill a gross tax capacity rate of .01 percent or a net tax
capacity rate of .01 percent; and, in extending any tax,
whenever it amounts to the fractional part of a cent, it shall
be made one cent. The tax lists shall also be made out to
correspond with the assessment books in reference to ownership
and description of property, with columns for the valuation and
for the various items of tax included in the total amount of all
taxes set down opposite each description; and. Opposite each
description which has been sold for taxes, and which is subject
to redemption, but not redeemed, shall be placed the words "sold
for taxes." The amount of all special taxes shall be entered in
the proper columns, but the general taxes may be shown by
entering the rate percent of each tax at the head of the proper
columns, without extending the same, in which case a schedule of
the rates percent of such taxes shall be made on the first page
of each tax list. If the auditor shall fail fails to enter on
any such list before its delivery to the treasurer any tax
levied, such the tax may be subsequently entered. The tax lists
shall be deemed completed, and all taxes extended thereon, as of
October 16 annually.
Sec. 25. Minnesota Statutes 1988, section 275.56, is
amended to read:
275.56 [EFFECT UPON OTHER LEVY LIMITS.]
All special and general laws and charter provisions
establishing per capita, mill, tax capacity rate, or other
general limitations on tax levies of governmental subdivisions
are hereby superseded to the extent that they authorize property
taxation in excess of the limitations established by sections
275.50 to 275.56, but otherwise such levy limitations and those
established for special purposes are in no way affected by
sections 275.50 to 275.56.
Sec. 26. Minnesota Statutes 1988, section 275.58,
subdivision 1, is amended to read:
Subdivision 1. Notwithstanding the provisions of sections
275.50 to 275.56, but subject to other law or charter provisions
establishing per capita, mill, tax capacity rate, or other
limitations on the amount of taxes that may be levied, the levy
of a governmental subdivision, as defined by section 275.50,
subdivision 1, may be increased above the limitation imposed by
sections 275.50 to 275.56 in any per capita or dollar amount
which is approved by the majority of voters of the governmental
subdivision voting on the question at a general or special
election. When the governing body of the governmental
subdivision resolves to increase the levy of the governmental
subdivision pursuant to this section, it shall provide for
submission of the proposition of an increase in the levy limit
base per capita or the proposition of an additional levy, as the
case may be, at a general or special election. Notice of such
the election shall be given in the manner required by law. If
the proposition is for an adjustment to the governmental
subdivision's levy limit base per capita, increasing the levy
limit base per capita over the per capita amount established
pursuant to section 275.51, subdivision 3, such the notice shall
state the purpose of such the per capita adjustment and the per
capita amount of such the adjustment. If the proposition is for
an additional levy, such the notice shall state the purpose and
maximum yearly amount of such the additional levy.
Sec. 27. Minnesota Statutes 1988, section 298.28,
subdivision 4, is amended to read:
Subd. 4. [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable
ton plus the increase provided in paragraph (d) must be
allocated to qualifying school districts to be distributed,
based upon the certification of the commissioner of revenue,
under paragraphs (b) and (c).
(b) 5.5 cents per taxable ton must be distributed to the
school districts in which the lands from which taconite was
mined or quarried were located or within which the concentrate
was produced. The distribution must be based on the
apportionment formula prescribed in subdivision 2.
(c)(i) 22 cents per taxable ton, less any amount
distributed under paragraph (e), shall be distributed to a group
of school districts comprised of those school districts wherein
in which the taconite was mined or quarried or the concentrate
produced or in which there is a qualifying municipality as
defined by section 273.134 in direct proportion to school
district indexes as follows: for each school district, its
pupil units determined under section 124.17 for the prior school
year shall be multiplied by the ratio of the average adjusted
gross tax capacity per pupil unit for school districts receiving
aid under this clause as calculated pursuant to chapter 124A for
the school year ending prior to distribution to the adjusted
gross tax capacity per pupil unit of the district. Each
district shall receive that portion of the distribution which
its index bears to the sum of the indices for all school
districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that
receives a distribution under sections 298.018; 298.23 to
298.28, exclusive of any amount received under this clause;
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law
imposing a tax on severed mineral values that is less than the
amount of its levy reduction under section 275.125, subdivision
9, for the second year prior to the year of the distribution
shall receive a distribution equal to the difference; the amount
necessary to make this payment shall be derived from
proportionate reductions in the initial distribution to other
school districts under clause (i).
(d) On July 15, in years prior to 1988, an amount equal to
the increase derived by increasing the amount determined by
paragraph (c) in the same proportion as the increase in the
steel mill products index over the base year of 1977 as provided
in section 298.24, subdivision 1, clause (a), shall be
distributed to any school district described in paragraph (c)
where a levy increase pursuant to section 124A.03, subdivision
2, is authorized by referendum, according to the following
formula. On July 15, 1988, the increase over the amount
established for 1987 shall be determined as if there had been an
increase in the tax rate under section 298.24, subdivision 1,
paragraph (b), according to the increase in the implicit price
deflator. On July 15, 1989, and subsequent years, the increase
over the amount established for the prior year shall be
determined according to the increase in the implicit price
deflator as provided in section 298.24, subdivision 1, paragraph
(a). Each district shall receive the product of:
(i) $150 times the pupil units identified in section
124.17, subdivision 1, enrolled in the second previous year or
the 1983-1984 school year, whichever is greater, less the
product of 1-3/4 mills 0.04231 percent times the district's
taxable valuation market value in the second previous year;
times
(ii) the lesser of:
(A) one, or
(B) the ratio of the amount certified pursuant to section
124A.03, subdivision 2, in the previous year, to the product of
1-3/4 mills 0.04231 percent times the district's
taxable valuation market value in the second previous year.
If the total amount provided by paragraph (d) is
insufficient to make the payments herein required then the
entitlement of $150 per pupil unit shall be reduced uniformly so
as not to exceed the funds available. Any amounts received by a
qualifying school district in any fiscal year pursuant to
paragraph (d) shall not be applied to reduce general education
aid which the district receives pursuant to section 124A.23 or
the permissible levies of the district. Any amount remaining
after the payments provided in this paragraph shall be paid to
the commissioner of iron range resources and rehabilitation who
shall deposit the same in the taconite environmental protection
fund and the northeast Minnesota economic protection trust fund
as provided in subdivision 11.
(e) There shall be distributed to any school district the
amount which the school district was entitled to receive under
section 298.32 in 1975.
Sec. 28. Minnesota Statutes 1988, section 298.282,
subdivision 2, is amended to read:
Subd. 2. (a) Each year following the final determination
of the amount of taxes payable under section 298.24, the
commissioner of revenue shall determine the amount in the
taconite municipal aid account as of July 1 of such that year
and the amount to be distributed to each qualifying municipality
during such the year. The amount to be distributed to each
qualifying municipality shall be determined by determining an
index for each qualifying municipality by subtracting its local
effort tax capacity rate, multiplied by its equalized gross tax
capacity, from its fiscal need factor. For the purposes of this
subdivision, the following terms have the meanings given them
herein. A municipality's "local effort tax capacity rate" means
its fiscal need factor per capita divided by $17 $21 per capita
per mill for each one percent of the gross tax capacity rate or
$17 per capita for each one percent of the net tax capacity rate
for the first $350 of its fiscal need factor per capita; plus
its fiscal need factor per capita divided by $15 $18 per capita
per mill for each one percent of the gross tax capacity rate or
$15 per capita for each one percent of the net tax capacity rate
on that part of its fiscal need factor per capita, if any, in
excess of $350. In no case shall a municipality's local effort
tax capacity rate be less than eight mills. a gross tax capacity
rate of 6.56 percent or a net tax capacity rate of 8.16
percent. A municipality's "equalized captured gross tax
capacity" means its previous year tax capacity, less the tax
capacity in any tax increment district, divided by the
municipality's aggregate sales ratio covering the period ending
two years prior to the year of aid distribution. A
municipality's "fiscal need factor" means the three-year average
of the sum of its municipal levy, taconite aids received under
section 298.28, subdivisions 2, 11, paragraph (b), and this
section and its local government aid distribution amount, for
taxes payable and distribution amounts receivable in the three
years immediately preceding the aid distribution year.
The ratio of the resulting index for each qualifying
municipality to the sum of all qualifying municipalities'
indexes shall be multiplied by the total amount in the taconite
municipal aid account less the amount distributed pursuant to
subdivision 5. For the distribution made in 1987, one-third of
the distribution shall be distributed pursuant to this
subdivision and two-thirds pursuant to Minnesota Statutes 1984,
section 298.282, subdivision 2. For the distribution made in
1988, two-thirds shall be distributed pursuant to this
subdivision and one-third pursuant to Minnesota Statutes 1984,
section 298.282, subdivision 2.
(b) If the distribution under this section, sections
273.138, 298.26 and 298.28, and chapter 477A, to any
municipality would exceed that municipality's levy limit base
for that year, computed pursuant to sections 275.50 to 275.58,
the amount in excess of the levy limit base for that year shall
reduce the amount distributed to the municipality under this
section and this excess amount shall be distributed to the other
qualifying municipalities in the same manner as the distribution
made pursuant to subdivision 2, except that the qualifying
municipality receiving an initial distribution when added to
that received pursuant to sections 273.138, 298.26, 298.28, and
chapter 477A in excess of the qualifying municipality's levy
limit base, shall not receive a distribution nor shall its index
be used in computing the distribution pursuant to this clause.
The distributions to be received in the year in which the taxes
are payable shall be compared to the levy limit base for that
same year. Upon completion of such the determination, the
commissioner of revenue shall certify to the chief clerical
officer of each qualifying municipality the amount which will be
distributed to such the municipality from the taconite municipal
aid account that year.
Sec. 29. Minnesota Statutes 1988, section 366.27, is
amended to read:
366.27 [FIREFIGHTERS' RELIEF; TAX LEVY.]
The town board of any town in this state having therein a
platted portion on which there reside resides 1,200 or more
people, and wherein a duly incorporated firefighters' relief
association is located may each year at the time the tax levies
for the support of the town are made and in addition thereto
levy a tax not to exceed one-third of one mill on all taxable
property within the town 0.00806 percent of taxable market value
for the benefit of such the relief association.
Sec. 30. Minnesota Statutes 1988, section 373.40,
subdivision 4, is amended to read:
Subd. 4. [LIMITATIONS ON AMOUNT.] A county, other than
Hennepin or Ramsey, may not issue bonds under this section if
the maximum amount of principal and interest to become due in
any year on all the outstanding bonds issued pursuant to this
section (including the bonds to be issued) will equal or exceed
one mill multiplied by the taxable gross tax capacity 0.05367
percent of taxable market value of property in the county.
Ramsey county may not issue bonds under this section if the
maximum amount of principal and interest to become due in any
year on all the outstanding bonds issued pursuant to this
section (including the bonds to be issued) will equal or
exceed 1.2 mills multiplied by the taxable gross tax capacity
0.06455 percent of taxable market value of property in the
county. Hennepin county may not issue bonds under this section
if the maximum amount of principal and interest to become due in
any year on all the outstanding bonds issued pursuant to this
section together with the bonds proposed to be issued, will
equal or exceed one-half mill multiplied by the taxable gross
tax capacity 0.02684 percent of taxable market value of the
property in the county. Calculation of the limit must be made
using the taxable gross tax capacity market value for the taxes
payable year in which the obligations are issued and sold. This
section does not limit the authority to issue bonds under any
other special or general law.
Sec. 31. Minnesota Statutes 1988, section 373.40,
subdivision 6, is amended to read:
Subd. 6. [BUILDING FUND LEVY.] (a) If a county other than
Hennepin has an approved capital improvement plan, the county
board may annually levy an amount equal to one mill 0.05367
percent of taxable market value, less the amount levied to pay
principal and interest on bonds issued under this section. If
the Hennepin county board has an approved capital improvement
plan, the county board may annually levy an amount equal to
one-half mill 0.02684 percent of taxable market value, less the
amount levied to pay principal and interest on bonds issued
under this section. The proceeds of this levy must be deposited
in the county building fund under section 373.25 and may only be
expended for capital improvements as provided in the approved
capital improvement plan.
(b) The maximum amount of the levy, when added to the
unexpended balance in the building fund, must not exceed the
projected cost of the remaining improvements in the capital
improvement plan. A levy made under this section is not subject
to any other levy limitation, nor may the levy be included in
the computation of any other levy limitation.
(c) This subdivision and the exercise of levy authority
under it does not supersede or preempt the authority to levy
under section 373.25 or any other law.
Sec. 32. Minnesota Statutes 1988, section 375.167,
subdivision 1, is amended to read:
Subdivision 1. [APPROPRIATIONS.] Notwithstanding any
contrary law, a county board may appropriate from the general
revenue fund to any nonprofit corporation a sum not to exceed
one-fourth of a mill on the dollar of the taxable gross tax
capacity of the county an amount equal to a levy of 0.00604
percent of taxable market value to provide legal assistance to
persons who are unable to afford private legal counsel. This
levy is subject to the levy limits established by sections
275.50 to 275.58.
Sec. 33. Minnesota Statutes 1988, section 375.18,
subdivision 3, is amended to read:
Subd. 3. [COURTHOUSE.] Each county board may erect,
furnish, and maintain a suitable courthouse. No indebtedness
shall be created for a courthouse in excess of 1-2/3 mills on
each dollar of gross tax capacity an amount equal to a levy of
0.04030 percent of taxable market value without the approval of
a majority of the voters of the county voting on the question of
issuing the obligation at an election.
Sec. 34. Minnesota Statutes 1988, section 375.555, is
amended to read:
375.555 [FUNDING.]
To implement the county emergency jobs program, the county
board may expend an amount equal to what would be generated by a
levy of 0.5 mills on all taxable property within the county
0.01209 percent of taxable market value. The money to be
expended may be from any available funds not otherwise earmarked.
Sec. 35. Minnesota Statutes 1988, section 383A.03,
subdivision 4, is amended to read:
Subd. 4. [ICE ARENAS AND GALL'S GOLF COURSE.] Ramsey
county may levy, annually, a tax not to exceed one mill 0.02418
percent of taxable market value for the acquisition and
construction of nine artificial ice arenas and a golf course, to
pay the interest on the bonds as it accrues and to pay the
principal thereof in full at maturity, and not to
exceed one-half mill 0.01209 percent of taxable market value to
provide for the operation of these facilities. The board of
county commissioners shall levy a tax for this purpose.
Sec. 36. Minnesota Statutes 1988, section 383A.411,
subdivision 5, is amended to read:
Subd. 5. In substitution of, but not in addition to,
powers granted to Ramsey county in subdivision 4, Ramsey county
may levy and collect a tax, not to exceed the lesser of
$5,000,000 or two mills, upon all taxable property in Ramsey
county 0.04835 percent of taxable market value to finance the
construction, installation, modification, or improvement of
heating, cooling, and domestic hot water systems serving
buildings owned in whole or part, operated, or maintained by the
county or Ramsey county medical center commission. A levy made
pursuant to this subdivision shall not be subject to any
limitation provided by other law.
Sec. 37. Minnesota Statutes 1988, section 383A.49,
subdivision 2, is amended to read:
Subd. 2. [EMERGENCY APPROPRIATIONS.] To meet a public
emergency affecting life, health, property or the public peace,
and to the extent that there are no available unappropriated
revenues to meet the emergency, the board may, by unanimous
vote, authorize the issuance of emergency notes. These notes
may be renewed from time to time but the emergency notes and
renewals in a fiscal year shall be paid not later than the last
day of the fiscal year next succeeding that in which the
emergency appropriation was made. The issuance and payment of
these notes is subject to the mill limits on taxing power
established by law for Ramsey county.
Sec. 38. Minnesota Statutes 1988, section 383B.152, is
amended to read:
383B.152 [BUILDING AND MAINTENANCE FUND.]
The county board may by resolution levy a direct general ad
valorem tax upon all taxable property in the county to provide
money which shall be kept in a fund known as the county reserve
building and maintenance fund and. Money in the fund shall be
used solely for the construction, maintenance and equipping
of such county buildings as are now or hereafter may be that are
constructed or maintained by the board. The levy shall not be
subject to any limit fixed by any other law except the
limitations imposed in sections 275.50 to 275.56 or by any board
of tax levy or other corresponding body, but shall not exceed a
sum equal to 11/12 mills times the gross tax capacity of all
taxable property in the county in any year 0.02215 percent of
taxable market value, less the amount required by chapter 475 to
be levied in such the year for the payment of the principal of
and interest on all bonds issued pursuant to Extra Session Laws
1967, chapter 47, section 1.
Sec. 39. Minnesota Statutes 1988, section 383B.245, is
amended to read:
383B.245 [MILL LEVY.]
The county board may also levy a tax of not more than
two-thirds mills 0.01612 percent of market value on taxable
property within the county outside of any city in which is
situated a free public library of the city to acquire, better
and construct county library buildings and branches and to pay
principal and interest on bonds issued for that purpose. The
levy of the tax shall not cause the amount of other taxes levied
or to be levied by the county, which are subject to any
limitation, to be reduced in any amount whatsoever.
The county board may by resolution adopted by a
five-sevenths vote issue and sell general obligation bonds of
the county in the manner provided in sections 475.60 to 475.73.
The bonds shall not be subject to the limitations of sections
475.51 to 475.59, but the maturity years and amounts and
interest rates of each series of bonds shall be fixed so that
the maximum amount of principal and interest to become due in
any year, on the bonds of that series and of all outstanding
series issued by or for the purposes of libraries, shall not
exceed an amount equal to two-thirds mills times the gross tax
capacity 0.01612 percent of market value of all taxable property
in the county, which was not taxed in 1987 by any city for the
support of any free public library, as last finally equalized
before the issuance of the new series. When the tax levy
authorized in this section is collected it shall be appropriated
and credited to a debt service fund for the bonds in amounts
required each year in lieu of a countywide tax levy for the debt
service fund under section 475.61.
Sec. 40. Minnesota Statutes 1988, section 383B.73,
subdivision 1, is amended to read:
Subdivision 1. [LEVY.] To provide funds for the purposes
of the Hennepin county park reserve district as set forth in its
annual budget, in lieu of the levies authorized by any other
special law for such purposes, the board of park district
commissioners may levy taxes on all the taxable property in the
county and park district at a rate not exceeding 1.3 mills on
the gross tax capacity thereof 0.03224 percent of market value.
Notwithstanding section 398.16, on or before October 1 of each
year, after public hearing, the board of park district
commissioners shall adopt a budget for the ensuing year and
shall determine the total amount necessary to be raised from ad
valorem tax levies to meet its budget. The board of park
district commissioners shall submit the budget to the county
board. The county board may veto or modify an item contained in
the budget. If the county board determines to veto or to modify
an item in the budget, it must, within 15 days after the budget
was submitted by the district board, state in writing the
specific reasons for its objection to the item vetoed or the
reason for the modification. The park reserve district board,
after consideration of the county board's objections and
proposed modifications, may reapprove a vetoed item or the
original version of an item with respect to which a modification
has been proposed, by a two-thirds majority. If the district
board does not reapprove a vetoed item, the item shall be
deleted from the budget. If the district board does not
reapprove the original version of a modified item, the item
shall be included in the budget as modified by the county
board. After adoption of the final budget and no later than
October 1, the superintendent of the park district shall certify
to the office of the Hennepin county director of tax and public
records exercising the functions of the county auditor the total
amount to be raised from ad valorem tax levies to meet its
budget for the ensuing year. The director of tax and public
records shall add the amount of any levy certified by the
district to other tax levies on the property of the county
within the district for collection by the director of tax and
public records with other taxes. When collected, the director
shall make settlement of such taxes with the district in the
same manner as other taxes are distributed to the other
political subdivisions in Hennepin county. The levy authorized
by this section shall be in addition to any other taxes
authorized by law.
Sec. 41. Minnesota Statutes 1988, section 383B.73,
subdivision 2, is amended to read:
Subd. 2. [BONDS.] To provide funds for the acquisition and
betterment of park properties and facilities of the district in
accordance with plans filed by it under section 398.19, upon
request of the board of park district commissioners by a
resolution or resolutions regularly adopted by a majority of all
members thereof, the board of county commissioners of Hennepin
county may, prior to August 1, 1985, in addition to bonds issued
by the county for this purpose before January 1, 1973, by
resolution issue and sell general obligation bonds of the county
in the manner provided in sections 475.60 to 475.753, in an
aggregate amount not exceeding $2,500,000. Taxes for the
payment of the principal of and interest on such bonds shall be
assessed and extended upon all taxable property in the county.
Such bonds shall not be subject to the limitations of sections
475.51 to 475.59, but the maturity years and amounts and
interest rates of each series of bonds shall be fixed so that
the maximum amount of principal and interest to become due in
any year on the bonds authorized by this law and all bonds
issued by the county for the purposes of the district before
January 1, 1973, shall not exceed an amount equal to
three-tenths of one mill times the gross tax capacity of a levy
of 0.00725 percent of market value on all taxable property in
the county as last finally equalized before the issuance of the
new series. Taxes for the payment of principal and interest on
bonds issued after August 1, 1985 shall be assessed and extended
upon all taxable property in the park district.
Sec. 42. Minnesota Statutes 1988, section 383C.42,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY.] To provide necessary funds to
construct and maintain county or regional juvenile detention
and/or treatment centers and to provide matching funds for any
federal, state or regional grant, the county boards of St.
Louis, Carlton, Cook, Lake, Itasca, Koochiching and Aitkin
counties may levy annually upon all taxable property in their
respective counties, a special tax in excess of any tax capacity
rate, per capita, or other statutory limitation, but such levy
shall that does not exceed 1-1/2 mills 0.01209 percent of market
value.
Sec. 43. Minnesota Statutes 1988, section 398A.04,
subdivision 8, is amended to read:
Subd. 8. [TAXATION.] Before deciding to exercise the power
to tax, the authority shall give six weeks published notice in
all municipalities in the region. If a number of voters in the
region equal to five percent of those who voted for candidates
for governor at the last gubernatorial election present a
petition within nine weeks of the first published notice to the
secretary of state requesting that the matter be submitted to
popular vote, it shall be submitted at the next general
election. The question prepared shall be:
"Shall the regional rail authority have the power to impose
a property tax?
Yes .......
No ........"
If a majority of those voting on the question approve or if
no petition is presented within the prescribed time the
authority may thereafter levy a tax at any annual rate not
exceeding two mills on the gross tax capacity 0.04835 percent of
market value of all taxable property situated within the
municipality or municipalities named in its organization
resolution. Its recording officer shall file in the office of
the county auditor of each county in which territory under the
jurisdiction of the authority is located a certified copy of the
board of commissioners' resolution levying the tax, and each
county auditor shall assess and extend upon the tax rolls of
each municipality named in the organization resolution the
portion of the tax that bears the same ratio to the whole amount
that the gross tax capacity of taxable property in that
municipality bears to the gross tax capacity of taxable property
in all municipalities named in the organization resolution.
Collections of the tax shall be remitted by each county
treasurer to the treasurer of the authority.
Sec. 44. Minnesota Statutes 1988, section 412.251, is
amended to read:
412.251 [ANNUAL TAX LEVY.]
The council shall make its annual tax levy by resolution
within the per capita limits established by statute. The amount
of taxes levied for general city purposes shall not exceed
11-2/3 mills on each dollar of the gross tax capacity of the
property taxable in the city 0.28207 percent of taxable market
value in cities having a gross tax capacity taxable market value
of less than $1,500,000 $6,200,000 and ten mills on each dollar
0.24177 percent of taxable market value in cities having a gross
tax capacity taxable market value of more
than $1,500,000 $6,200,000. In calculating such limit property
used for homestead purposes shall be figured as provided in
section 273.13, subdivision 7a. The following taxes may be
levied in addition to the levies above authorized:
(1) a tax for the payment of principal and interest on
outstanding obligations of the city as provided by sections
475.61, 475.73 and 475.74.;
(2) a tax for the payment of judgments as authorized by
section 465.14.;
(4) (3) a maximum of one-third of one mill 0.00805 percent
of taxable market value but not to exceed $500 to provide
musical entertainment to the public in public buildings or on
public grounds.;
(5) (4) a tax for band purposes as authorized by section
449.09.;
(6) (5) a tax for the support of a municipal forest, as
authorized by section 459.06.;
(7) (6) a tax for advertising purposes, as authorized by
section 469.189.;
(8) (7) a tax for forest fire protection in any city in a
forest area, as authorized by section 88.04.;
(9) (8) a maximum of 1-2/3 mills 0.04030 percent of taxable
market value for the utilities fund in any city whose utilities
are under the jurisdiction of a public utilities
commission. Such The tax shall be levied for the purpose of
paying the cost of the utility service or other services
supplied to the city.;
(10) (9) a tax for the support of a public library, as
authorized by section 134.07.;
(11) (10) a tax for firefighters' relief association
purposes as authorized by sections 69.772, subdivision 4,
69.773, subdivision 5, or other statutes.; and
(12) Such (11) other special taxes as may be authorized by
law.
Nothing in this section shall be construed to reduce levies
of any municipality below the per capita levy spread in 1970.
Sec. 45. Minnesota Statutes 1988, section 412.531,
subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT, TRANSFER; TAX LEVIES.] For
the purpose of carrying out the powers of the park board there
shall be established in the city treasury a special fund to be
called a park fund. The council may transfer to the park
fund such moneys as it shall consider the money it deems
necessary for park purposes. No later than September 1 of each
year the park board shall present to the council in such the
detail as the council shall require requires its estimate of the
financial needs of the board for the ensuing fiscal year. In
any county having a population of more than 200,000 the council
of any city, whether having a park board or not, may annually at
the time of levying other taxes levy a special tax of not to
exceed two-thirds of one mill 0.01620 percent of taxable market
value for park purposes. The proceeds of this tax shall be
placed in the park fund.
Sec. 46. Minnesota Statutes 1988, section 414.035, is
amended to read:
414.035 [DIFFERENTIAL TAXATION.]
Whenever a board order, under section 414.031, 414.0325, or
414.033, annexes part or all of a township to a municipality,
the board may provide that the mill levy tax rate of the
annexing municipality on the area annexed shall be increased in
substantially equal proportions over not more than six years to
equality with the mill levy tax rate on the property already
within the municipality. The appropriate period, if any, shall
be based on the time reasonably required to effectively provide
full municipal services to the annexed area.
Sec. 47. Minnesota Statutes 1988, section 414.041,
subdivision 7, is amended to read:
Subd. 7. [DIFFERENTIAL TAXATION.] Where one municipality
is receiving substantially fewer municipal services, the board
may provide that the mill levy tax rate of such a the
municipality shall be increased in substantially equal
proportions over a period of not more than five years to
equality with the mill levy tax rate in the remainder of the new
municipality, such. The period to shall be determined by the
board on the basis of the period reasonably required effectively
to provide substantially equal municipal services.
Sec. 48. Minnesota Statutes 1988, section 426.04, is
amended to read:
426.04 [TAXES FOR GENERAL PURPOSES.]
The governing body of any home rule charter city of the
third or fourth class in this state is hereby authorized to may
levy taxes annually against the taxable property in any such
city for all general fund purposes, not exceeding 13-1/3 mills
on the dollar of the gross tax capacity of the city, computed as
permitted under section 273.13, subdivision 7a. If 0.32237
percent of taxable market value unless the charter of such the
city authorizes it to levy taxes for general fund purposes in
excess of 13-1/3 mills on the dollar, these provisions shall not
limit any such city that amount. This section does not apply to
a third class city which is contiguous to a city of the first
class located in a different county or to a fourth class city in
a county containing a first class city.
Sec. 49. Minnesota Statutes 1988, section 447.10, is
amended to read:
447.10 [TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.]
The governing body of a city of the first class owning a
hospital may annually levy a tax to operate and maintain the
hospital. The tax must not exceed one-third of one mill on each
dollar of the city's taxable property 0.00806 percent of taxable
market value.
Sec. 50. Minnesota Statutes 1988, section 449.06, is
amended to read:
449.06 [ENTERTAINMENT TAX IN CITIES OF THE FOURTH CLASS.]
The governing body of any city of the fourth class in this
state operating under a home rule charter of commission form of
government, is hereby authorized to annually may levy a tax not
exceeding one-half of one mill on the dollar in excess of
existing mill limitations but not in excess of any existing per
capita limitations against taxable property in the city 0.01209
percent of taxable market value for the purpose of providing
musical entertainments to the public in public buildings or upon
public grounds. The total sum that may be levied or expended in
any year shall not exceed the sum of $3,500.
Sec. 51. Minnesota Statutes 1988, section 449.08, is
amended to read:
449.08 [TAX LEVY FOR MUSICAL ENTERTAINMENTS IN CITIES OF
THE THIRD CLASS.]
The council of any city of the third class is hereby
authorized and empowered to may levy a tax of not exceeding
one-third of one mill on all the taxable property within the
city 0.00806 percent of taxable market value for the purpose of
providing free musical entertainment for the general
public. This tax shall be levied by the council in the same
manner and at the same times as taxes for other purposes are
levied, and shall be collected in the same manner. The proceeds
of this tax shall be used only for the purpose of providing free
musical entertainment for the public. The annual expenditure
for this purpose is hereby limited to the sum of $3,000.
Sec. 52. Minnesota Statutes 1988, section 449.09, is
amended to read:
449.09 [BANDS, ORCHESTRAS OR CHORUSES, TAX LEVY.]
Cities of the second, third, or fourth class, statutory
cities, or towns, however organized, may, when authorized as
hereinafter provided in section 449.10, levy each year a tax not
to exceed one mill 0.02418 percent of taxable market value for
the purpose of providing a fund for the maintenance,
transportation, or employment of a band, orchestra, or chorus
for municipal purposes. No levy by any municipality shall
exceed, in any one year, $10,000 except in cities of the second
class, situated in a county having over 45,000 and less than
49,000 inhabitants according to the 1950 federal census, wherein
such in which the levy shall not exceed $25,000 in any one
year. No levy by any town shall exceed $1,500. All sums shall
be separately levied and when collected these sums shall be paid
into a special fund and used for these purposes. When taxes are
levied and collected for the maintenance or employment of a
band, orchestra, or chorus for municipal purposes and the band,
orchestra, or chorus is discontinued or the city or town by a
vote of the people as now provided by law decide not to employ a
band, orchestra, or chorus, the governing body may transfer the
sums so levied and collected to the general fund;. No levy
shall be made of for any such fund when there is in the fund an
unexpended balance equal to the maximum levy permitted by law
therefor this section.
Sec. 53. Minnesota Statutes 1988, section 449.10, is
amended to read:
449.10 [TAX LEVY ELECTION; PETITION.]
Such The authority shall be initiated by a petition signed
by ten percent of the legal voters of the city or town, as shown
by the last regular municipal election. This petition shall be
filed with the governing body of the city or town, and shall
request that the following question be submitted to the voters:
"Shall a tax of not exceeding .... mills percent of tax capacity
be levied each year for the purpose of furnishing a band,
orchestra, or chorus fund?"
Sec. 54. Minnesota Statutes 1988, section 450.19, is
amended to read:
450.19 [TOURIST CAMPING GROUNDS.]
All cities and towns in the state are hereby authorized and
empowered to A home rule charter or statutory city or town may
establish and maintain public tourist camping grounds and. The
council or other legislative or governing body thereof is hereby
empowered to may acquire, by lease, purchase, or by gift,
suitable lands located either within or without the corporate
limits for use as public tourist camping grounds and to provide
for the equipment, operation, and maintenance of the same. The
amount that may be expended for the maintenance, improvement, or
operation of tourist camping grounds shall not exceed, in
any one year, a sum equal to the amount which may be raised by a
one-third of one mill tax upon the taxable property of the
municipality of 0.00806 percent of taxable market value.
Sec. 55. Minnesota Statutes 1988, section 450.25, is
amended to read:
450.25 [MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
LEVY.]
After the acquirement acquisition of any museum, gallery or
school of arts or crafts, there shall be annually levied and it
shall be the duty of the board of park commissioners of the city
in which it is located any museum, gallery, or school of arts or
crafts to shall cause to be included in the annual tax levy,
upon all the taxable property of the county in which is located
said the museum, gallery, or school of arts or crafts is
located, a tax of .35 mills upon each dollar of the gross tax
capacity of property in the county in which is located said
museum, gallery, or school of arts or crafts subject to
taxation, and of 0.00846 percent of market value. The board
shall certify the levy to the county auditor of the county in
which the museum, gallery, or school of arts or crafts is
situated, and the same it shall be added to, and collected with
and as part of, the general, real, and personal property taxes,
with like penalties and interest, in case of nonpayment and
default, and all provisions of law in respect to the levy,
collection, and enforcement of other taxes shall, so far as
applicable, be followed in respect of these taxes. All of these
taxes, penalties, and interest, when collected, shall be paid to
the city treasurer of the city in which is located said the
museum, gallery, or school of arts or crafts and shall be
credited to a fund to be known and denominated as the park
museum fund, and shall be used only for the purposes specified
in sections 450.23 to 450.25, and for no other purpose. Any
part of the proceeds of the levy not expended for the purposes
specified in section 450.24 may be used for the erection of new
buildings for the same purposes. The tax capacity rate referred
to herein shall be mills as determined after the adoption of
section 273.1102.
Sec. 56. Minnesota Statutes 1988, section 458A.10, is
amended to read:
458A.10 [PROPERTY TAX.]
The commission shall subject to the further provisions
hereof, annually levy a direct tax not to exceed five mills
0.12089 percent of market value on all the taxable property in
the transit area at a rate sufficient to produce an amount
necessary for the purposes of sections 458A.01 to 458A.15, other
than the payment of principal and interest due on any revenue
bonds issued pursuant to section 458A.05. Property taxes levied
under this section shall be certified by the commission to the
county auditors of the transit area, extended, assessed, and
collected in like the manner as provided by law for the regular
property taxes levied by the governing bodies of cities. The
proceeds of the taxes levied under this section shall be
remitted by the respective county treasurers to the treasurer of
the commission, who shall credit the same to the funds of the
commission for use for the purposes of sections 458A.01 to
458A.15 subject to any applicable pledges or limitations on
account of tax anticipation certificates or other specific
purposes. At any time after making a tax levy under this
section and certifying the same it to the county auditors, the
commission may issue general obligation certificates of
indebtedness in anticipation of the collection of such the taxes
upon like procedure and subject to the provisions and
limitations as provided by section 412.261.
Sec. 57. Minnesota Statutes 1988, section 458A.31,
subdivision 1, is amended to read:
Subdivision 1. Notwithstanding anything to the contrary
contained in the charter of the city of Duluth, any ordinance
thereof, or any statute applicable thereto, limiting the amount
levied in any one year for general or special purposes, the city
council of the city of Duluth shall each year, at the time the
tax levies for the support of the city are made, levy a tax on
all taxable property in an amount not to exceed three mills in
any year 0.07253 percent of taxable market value, by ordinance.
An ordinance fixing the levy shall take effect immediately upon
its passage and approval. The proceeds from such of the levy
shall be paid into the city treasury, and shall be deposited in
the operating fund provided for in section 458A.24, subdivision
3.
Sec. 58. Minnesota Statutes 1988, section 459.06,
subdivision 1, is amended to read:
Subdivision 1. [ACCEPT DONATIONS.] Any county, city, or
town in this state, may by resolution of the its governing body
thereof, may accept donations of land that such the governing
body may deem deems to be better adapted for the production of
timber and wood than for any other purpose, for a forest, and
may manage the same it on forestry principles. The donor of not
less than 100 acres of any such land shall be entitled to have
the same land perpetually bear the donor's name. The governing
body of any city, or town in this state, when funds are
available or have been levied therefor, may, when authorized by
a majority vote by ballot of the voters voting at any general or
special city election or town meeting where such the question is
properly submitted, purchase or obtain by condemnation
proceedings, and preferably at the sources of streams, any tract
of land for a forest which is better adapted for the production
of timber and wood than for any other purpose, and which is
conveniently located for the purpose, and manage the same it on
forestry principles;. The selection of such the lands and the
plan of management thereof shall have the approval of must be
approved by the director of lands and forestry. Such The city
or town is authorized to may levy and collect an annual a tax
of not exceeding 1-2/3 mills on the dollar of its real estate
gross tax capacity, in addition to all other taxes authorized or
permitted by law, 0.04030 percent of taxable market value to
procure and maintain such forests.
Sec. 59. Minnesota Statutes 1988, section 459.14,
subdivision 2, is amended to read:
Subd. 2. [FINANCING.] Any such The municipality may pay
for any portion of the cost of providing automobile parking
facilities by:
(a) (1) appropriating moneys therefor money as authorized
in subdivision 1;
(b) (2) levying a tax, not exceeding one-sixth of one mill
in any one year, on all taxable property in the municipality
0.00403 percent of taxable market value;
(c) (3) levying special assessments against benefited
property;
(d) (4) appropriating any or all net revenues derived from
the operation of its parking facilities;
(e) (5) classifying the users of such the facilities as a
subject for taxation, and imposing taxes thereon computed
according to the extent of use of the facilities;
(f) (6) imposing reasonable rates, rents, fees and charges
for the use of any on-street or off-street parking privilege or
facility, which may be in excess of actual cost of operation,
maintenance, regulation and supervision of parking at the
particular location where the privilege is exercised;
(g) (7) leasing any off-street facilities at specified or
determinable rents to be paid to the municipality under a lease
made as hereinafter authorized and limited provided in
subdivision 4;
(h) (8) borrowing money and issuing bonds as authorized and
limited by subdivision 3; or
(i) (9) any combination of all or any of the foregoing.
Sec. 60. Minnesota Statutes 1988, section 462.396,
subdivision 2, is amended to read:
Subd. 2. On or before August 20, 1971, and each year
thereafter, the commission shall submit its proposed budget for
the ensuing calendar year showing anticipated receipts,
disbursements and ad valorem tax levy with a written notice of
the time and place of the public hearing on the proposed budget
to each county auditor and municipal clerk within the region and
those town clerks who in advance have requested a copy of the
budget and notice of public hearing. On or before October 1,
1971, and each year thereafter, the commission shall adopt,
after a public hearing held not later than September 20, a
budget covering its anticipated receipts and disbursements for
the ensuing year and shall decide upon the total amount
necessary to be raised from ad valorem tax levies to meet its
budget. After adoption of the budget and no later than October
1, the secretary of the commission shall certify to the auditor
of each county within the region the county share of such the
tax, which shall be an amount bearing the same proportion to the
total levy agreed on by the commission as the gross tax capacity
of the county bears to the gross tax capacity of the region.
The maximum amount of any levy made for the purposes of sections
462.381 to 462.398 shall not exceed one-sixth of one mill on
each dollar of gross tax capacity of 0.00403 percent of market
value on all taxable property in the region. The auditor of
each county in the region shall add the amount of any levy made
by the commission within the limits imposed by this subdivision
to other tax levies of the county for collection by the county
treasurer with other taxes. When collected the county treasurer
shall make settlement of such the taxes with the commission in
the same manner as other taxes are distributed to political
subdivisions. The levy authorized by this section shall be in
addition to any other county taxes authorized by law.
Sec. 61. Minnesota Statutes 1988, section 469.033,
subdivision 6, is amended to read:
Subd. 6. [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.]
All of the territory included within the area of operation of
any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in
this subdivision. All of the taxable property, both real and
personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied
under this subdivision. Subject to the consent by resolution of
the governing body of the city in and for which it was created,
an authority may levy each year a special tax upon all taxable
property, both real and personal, within that taxing district.
The authority shall cause certify the tax so levied each year to
be certified to the auditor of the county in which the taxing
district is located on or before October 10 each year. The tax
shall be extended, spread, and included with and as a part of
the general taxes for state, county, and municipal purposes by
the county auditor, to be collected and enforced therewith,
together with the penalty, interest, and costs. As the tax,
including any penalties, interest, and costs, is collected by
the county treasurer it shall be accumulated and kept in a
separate fund to be known as the "housing and redevelopment
project fund." The money in the fund shall be turned over to
the authority at the same time and in the same manner that the
tax collections for the city are turned over to the city, and
shall be expended and applied only for the purposes of sections
469.001 to 469.047, and for no other purpose. It shall be paid
out upon vouchers signed by the chair of the authority or an
authorized representative. The amount of the special tax levy
shall be an amount approved by the governing body of the city,
but shall not exceed ten cents on each $100 of gross tax
capacity in the area of operation, .0081 percent of taxable
market value except that in cities of the first class having a
population of less than 200,000, the special tax levy shall not
exceed five cents on each $100 of gross tax capacity in the area
of operation .00403 percent of taxable market value. The
authority may levy an additional levy, not to exceed one cent on
each $100 of gross tax capacity in the area of operation .0008
percent of taxable market value, to be used to defray costs of
providing informational service and relocation assistance as set
forth in section 462.445, subdivision 4. The authority shall
each year formulate and file a budget in accordance with the
budget procedure of the city in the same manner as required of
executive departments of the city or, if no budgets are required
to be filed, by August 1. The amount of the tax levy for the
following year shall be based on that budget and shall be
approved by the governing body.
Sec. 62. Minnesota Statutes 1988, section 469.053,
subdivision 4, is amended to read:
Subd. 4. [MANDATORY CITY LEVY.] A city shall, at the
request of the port authority, levy a tax in any year for the
benefit of the port authority. The tax must not exceed .75 mill
times the gross tax capacity of taxable property in the
city 0.01813 percent of taxable market value. The tax is not
subject to levy limits. The amount levied must be paid by the
city treasurer to the treasurer of the port authority, to be
spent by the authority.
Sec. 63. Minnesota Statutes 1988, section 469.053,
subdivision 6, is amended to read:
Subd. 6. [DISCRETIONARY CITY LEVY.] Upon request of a port
authority, the port authority's city may levy a tax to be spent
by and for its port authority. The tax must enable the port
authority to carry out efficiently and in the public interest
sections 469.048 to 469.068 to create and develop industrial
development districts. The levy must not be for more than 7/60
of one mill on each dollar of gross tax capacity of taxable
property in the city 0.00282 percent of taxable market value.
The county treasurer shall pay the proceeds of the tax to the
port authority treasurer. The money may be spent by the
authority in performance of its duties to create and develop
industrial development districts. In spending the money the
authority must judge what best serves the public interest. The
levy in this subdivision is in addition to the levy in
subdivision 4 and is not subject to levy limits.
Sec. 64. Minnesota Statutes 1988, section 469.107,
subdivision 1, is amended to read:
Subdivision 1. [CITY TAX LEVY.] A city may, at the request
of the authority, levy a tax in any year for the benefit of the
authority. The tax must be for not more than .75 mill times the
gross tax capacity of taxable property in the city 0.01813
percent of taxable market value. The tax is not subject to levy
limits. The amount levied must be paid by the city treasurer to
the treasurer of the authority, to be spent by the authority.
Sec. 65. Minnesota Statutes 1988, section 469.180,
subdivision 2, is amended to read:
Subd. 2. [TAX LEVIES.] Notwithstanding any law, the county
board of any county may appropriate from the general revenue
fund a sum not to exceed 1/30 of a mill on the gross tax
capacity of the a county levy of 0.00080 percent of taxable
market value to carry out the purposes of this section.
Sec. 66. Minnesota Statutes 1988, section 469.187, is
amended to read:
469.187 [EXPENDITURE FOR PUBLICITY; PUBLICITY BOARD; FIRST
CLASS CITIES.]
Any city of the first class may expend money for city
publicity purposes. The city may levy a tax, at a rate not
exceeding 1/30 of one mill upon the gross tax capacity of the
taxable property of the city 0.00080 percent of taxable market
value. The proceeds of the levy shall be expended in the manner
and for the city publicity purposes the council directs. The
council may establish and provide for a publicity board or
bureau to administer the fund, subject to the conditions and
limitations the council prescribes by ordinance.
Sec. 67. Minnesota Statutes 1988, section 469.188, is
amended to read:
469.188 [TAX FOR ADVERTISING RESOURCES; CITIES OF SECOND OR
THIRD CLASS.]
The governing body of any city of the second or third class
in this state may levy a tax of not to exceed one-third of one
mill against the taxable property in the city 0.00806 percent of
taxable market value for the purpose of advertising
agricultural, industrial business, and all other resources of
the community subject to the city's levy limits.
Sec. 68. Minnesota Statutes 1988, section 471.191,
subdivision 2, is amended to read:
Subd. 2. Any such city may issue bonds pursuant to chapter
475, for the acquisition and betterment of land, buildings, and
facilities for the purpose of carrying out the powers granted by
this section. Such bonds, unless authorized as general
obligations of the issuer pursuant to approval of the electors
or pursuant to another law or charter provision permitting such
issuance without an election, shall be payable solely from the
income of land, buildings, and facilities used or useful for the
operation of the program, but may be secured by a pledge to the
bondholders, or to a trustee, of all income and revenues of
whatsoever nature derived from any such land, buildings, and
facilities, as a first charge on the gross revenues thereof to
the extent necessary to pay the bonds and interest thereon when
due and to accumulate and maintain an additional reserve for
that purpose in an amount equal to the total amount of such
payments to become due in any fiscal year. In this event the
governing body of the issuer may by resolution or trust
indenture define the land, buildings, or facilities, the
revenues of which are pledged, and establish covenants and
agreements to be made by the issuer for the security of the
bonds, including a covenant that the issuer will establish,
maintain, revise when necessary, and collect charges for all
services, products, use, and occupancy of the land, buildings,
and facilities, in the amounts and at the times required to
produce the revenues pledged, and also sufficient, with any
other funds appropriated by the governing body from time to
time, to provide adequately for the operation and maintenance of
the land, buildings, and facilities. From and After the
issuance of any bonds for which revenues are so pledged, the
governing body of the issuer shall provide in its budget each
year for any anticipated deficiency in the revenues available
for such operation and maintenance. For this purpose any issuer
other than a city of the first class may levy a tax of not more
than two-thirds of one mill on the gross tax capacity of all
taxable property within its corporate limits 0.01612 percent of
taxable market value, in excess of taxes which may otherwise be
levied within legal and charter limitations, provided such the
excess levy is approved by a majority of its electors voting
on such the question at a regular or special election. The
authority to levy additional taxes granted herein shall not
apply to cities or towns in which the gross tax capacity
consists in part of iron ore or lands containing taconite or
semitaconite.
Sec. 69. Minnesota Statutes 1988, section 471.1921, is
amended to read:
471.1921 [CITIES AND TOWNS; PLAYGROUNDS AND RECREATION; TAX
LEVY.]
Whenever any city or town in which the gross tax capacity
consists in part of iron ore or lands containing taconite or
semitaconite operates a program of public recreation and
playgrounds or other recreational facilities and expends funds
for the operation of the program pursuant to sections 471.15 to
471.19, in addition to funds otherwise provided therefor, the
governing body of the city or town may levy a tax in excess of
any charter or statutory limitation, except the limitation
imposed in sections 275.50 to 275.58, for the support of this
program of public recreation and playgrounds as follows:
(a) (1) in cities the council or governing body may levy a
tax of not exceeding two-ninths of a mill and not exceeding the
lesser of (i) 0.00537 percent of taxable market value; (ii) $3
per capita and not exceeding; or (iii) $15,000.; and
(b) (2) in towns the governing body may levy a tax of not
exceeding two-ninths of a mill and not exceeding the lesser of
(i) 0.00537 percent of taxable market value; or (ii) $10,000.
Sec. 70. Minnesota Statutes 1988, section 471.571,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] This section applies to each
city in which the gross tax capacity of real and personal
property consists in part of iron ore or lands containing
taconite or semitaconite and in which the total gross tax
capacity taxable market value of real and personal property
exceeds $200,000 $2,500,000.
Sec. 71. Minnesota Statutes 1988, section 471.571,
subdivision 2, is amended to read:
Subd. 2. [CREATION OF FUND, TAX LEVY.] The governing body
of such the city may create a permanent improvement and
replacement fund to be maintained by an annual tax levy. The
governing body may levy a tax in excess of any charter or
statutory limitation and in excess of the per capita limitation
imposed under section 275.11 for the support of such the
permanent improvement and replacement fund, but not exceeding
the following:
(a) In cities having a population of not more than 500
inhabitants, the lesser of $20 per capita or 3-1/3 mills 0.08059
percent of taxable market value;
(b) In cities having a population of more than 500 and less
than 2500, the greater of $12.50 per capita or $10,000 but not
exceeding 3-1/3 mills 0.08059 percent of taxable market value;
(c) In cities having a population of more than 2500
inhabitants, the greater of $10 per capita or $31,500 but not
exceeding 3-1/3 mills 0.08059 percent of taxable market value.
Sec. 72. Minnesota Statutes 1988, section 473.325,
subdivision 2, is amended to read:
Subd. 2. The metropolitan council shall sell and issue
such the bonds in the manner provided in chapter 475, and shall
have the same powers and duties as a municipality issuing bonds
under that law, except that the approval of a majority of the
electors shall not be required and the net debt
limitations therein shall not apply. The terms of each series
of such bonds shall be fixed so that the amount of principal and
interest on all outstanding and undischarged bonds, together
with the bonds proposed to be issued, due in any year shall not
exceed .5 mills times the gross tax capacity 0.01209 percent of
market value of all taxable property in the metropolitan area as
last finally equalized prior to a proposed issue. The bonds
shall be secured in accordance with section 475.61, subdivision
1, and any taxes required for their payment shall be levied by
the council, shall not affect the amount or rate of taxes which
may be levied by the council for other purposes, shall be spread
against all taxable property in the metropolitan area and shall
not be subject to limitation as to rate or amount. Any taxes
certified by the council to the county auditors for collection
shall be reduced by the amount received by the council from the
commissioner of finance or the federal government for the
purpose of paying the principal and interest on bonds to which
the levy relates. The council shall certify the fact and amount
of all money so received to the county auditors, and the
auditors shall reduce the levies theretofore previously made for
such the bonds in the manner and to the extent provided in
section 475.61, subdivision 3.
Sec. 73. Minnesota Statutes 1988, section 473.446,
subdivision 1, is amended to read:
Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.]
For the purposes of sections 473.404 to 473.449 and the
metropolitan transit system, except as otherwise provided in
this subdivision, the regional transit board shall levy each
year upon all taxable property within the metropolitan transit
taxing district, defined in subdivision 2, a transit tax
consisting of:
(a) an amount which shall be used for payment of the
expenses of operating transit and paratransit service and to
provide for payment of obligations issued by the commission
under section 473.436, subdivision 6;
(b) an additional amount, if any, as the board determines
to be necessary to provide for the full and timely payment of
its certificates of indebtedness and other obligations
outstanding on July 1, 1985, to which property taxes under this
section have been pledged; and
(c) an additional amount necessary to provide full and
timely payment of certificates of indebtedness, bonds, including
refunding bonds or other obligations issued or to be issued
under section 473.39 by the council for purposes of acquisition
and betterment of property and other improvements of a capital
nature and to which the council or board has specifically
pledged tax levies under this clause.
The property tax levied by the regional transit board for
general purposes under clause (a) must not exceed the following
amount for the years specified:
(1) for taxes payable in 1988, the product of two mills
multiplied by the total assessed valuation of all taxable
property located within the metropolitan transit taxing district
as adjusted by the provisions of Minnesota Statutes 1986,
sections 272.64; 273.13, subdivision 7a; and 275.49;
(2) for taxes payable in 1989, the product of (i) the
regional transit board's property tax levy limitation for
general purposes for the taxes payable year 1988 determined
under clause (1) multiplied by (ii) an index for market
valuation changes equal to the assessment year 1988 total market
valuation of all taxable property located within the
metropolitan transit taxing district divided by the assessment
year 1987 total market valuation of all taxable property located
within the metropolitan transit taxing district; and
(3) for taxes payable in 1990 and subsequent years, the
product of (i) the regional transit board's property tax levy
limitation for general purposes for the previous year determined
under this subdivision multiplied by (ii) an index for market
valuation changes equal to the total market valuation of all
taxable property located within the metropolitan transit taxing
district for the current assessment year divided by the total
market valuation of all taxable property located within the
metropolitan transit taxing district for the previous assessment
year.
For the purpose of determining the regional transit board's
property tax levy limitation for general purposes for the taxes
payable year 1988 and subsequent years under this subdivision,
"total market valuation" means the total market valuation of all
taxable property within the metropolitan transit taxing district
without valuation adjustments for fiscal disparities (chapter
473F), tax increment financing (sections 469.174 to 469.179),
and high voltage transmission lines (section 273.425).
The county auditor shall reduce the tax levied pursuant to
this subdivision on all property within statutory and home rule
charter cities and towns that receive full peak service and
limited off-peak service by an amount equal to the tax levy that
would be produced by applying a rate of 0.5 mills 0.01209
percent of market value on the property. The county auditor
shall reduce the tax levied pursuant to this subdivision on all
property within statutory and home rule charter cities and towns
that receive limited peak service by an amount equal to the tax
levy that would be produced by applying a rate of 0.75 mills
0.01813 percent of market value on the property. The amounts so
computed by the county auditor shall be submitted to the
commissioner of revenue as part of the abstracts of tax lists
required to be filed with the commissioner under section
275.29. Any prior year adjustments shall also be certified in
the abstracts of tax lists. The commissioner shall review the
certifications to determine their accuracy and may make changes
in the certification as necessary or return a certification to
the county auditor for corrections. The commissioner shall pay
to the regional transit board the amounts certified by the
county auditors on the dates provided in section 273.1398.
There is annually appropriated from the general fund in the
state treasury to the department of revenue the amounts
necessary to make these payments in fiscal year 1987 and
thereafter.
For the purposes of this subdivision, "full peak and
limited off-peak service" means peak period regular route
service, plus weekday midday regular route service at intervals
longer than 60 minutes on the route with the greatest frequency;
and "limited peak period service" means peak period regular
route service only.
Sec. 74. Minnesota Statutes 1988, section 473.661,
subdivision 3, is amended to read:
Subd. 3. In any budget certified by the commissioners,
pursuant to any of the provisions of under this section, the
amount included for operation and maintenance shall not exceed
an amount which, when extended against the gross tax capacity of
property then taxable therefor under the provisions of section
473.621, subdivision 5, will require a levy at the a rate
of one-third of one mill upon such gross tax capacity 0.00806
percent of market value. Taxes levied by the corporation shall
not affect the amount or rate of taxes which may be levied by
any other local government unit within the metropolitan area
under the provisions of any law or charter.
Sec. 75. Minnesota Statutes 1988, section 473.667,
subdivision 9, is amended to read:
Subd. 9. [ADDITIONAL TAXES.] Nothing herein shall prevent
the commission from levying a tax not to exceed in any year 1/20
of one mill on the gross tax capacity of 0.00121 percent of
market value on taxable property within its taxing jurisdiction,
over and above in addition to any levies found necessary for the
debt service fund as authorized by section 473.671. Nothing
herein shall prevent the levy and appropriation for purposes of
the commission of any other tax on property or on any income,
transaction, or privilege, when and if authorized by law. All
collections of any taxes so levied shall be included in the
revenues appropriated for the purposes referred to in this
section, unless otherwise provided in the law authorizing such
the levies; but no covenant as to the continuance or as to the
rate and amount of any such levy shall be made with the holders
of the commission's bonds unless specifically authorized by law.
Sec. 76. Minnesota Statutes 1988, section 473.671, is
amended to read:
473.671 [LIMIT OF TAX LEVY.]
The taxes levied against the property of the metropolitan
area in any one year shall not exceed one-third of one mill upon
the gross tax capacity thereof 0.00806 percent of taxable market
value, exclusive of the taxes it may be necessary to levy levied
to pay the principal or interest on any bonds or indebtedness of
said the city issued by it under the provisions of Laws 1943,
chapter 500, and exclusive of any amounts required taxes levied
to pay the share of such the city for payments on bonded
indebtedness of the corporation provided for in Laws 1943,
chapter 500. The levy of taxes authorized in Laws 1943, chapter
500, shall be in addition to the maximum rate allowed to be
levied to defray the cost of government under the provisions of
the charter of any city affected by Laws 1943, chapter 500.
Sec. 77. Minnesota Statutes 1988, section 473.882,
subdivision 3, is amended to read:
Subd. 3. [TAX.] After adoption of the ordinance under
subdivision 2, a local government unit may annually levy a tax
on all taxable property in the district for the purposes for
which the tax district is established. The tax levied may not
exceed one mill 0.02418 percent of market value on taxable
property located in rural towns other than urban towns, unless
allowed by resolution of the town electors. The proceeds of the
tax shall be paid into a fund reserved for these purposes. Any
proceeds remaining in the reserve fund at the time the tax is
terminated or the district is dissolved shall be transferred and
irrevocably pledged to the debt service fund of the local unit
to be used solely to reduce tax levies for bonded indebtedness
of taxable property in the district. A tax levied in accordance
with this subdivision for paying capital costs is a levy for the
payment of principal and interest on bonded indebtedness within
the meaning of section 275.50, subdivision 5, clause (e).
Sec. 78. Minnesota Statutes 1988, section 473.883,
subdivision 6, is amended to read:
Subd. 6. [TAX.] For the payment of principal and interest
on the bonds issued under subdivision 5 and the payment required
under subdivision 4, the county shall irrevocably pledge and
appropriate the proceeds of an ad valorem a tax levied on all
taxable property located within the territory of the watershed
management organization or minor watershed unit for which the
bonds are issued. Each year until the reserve for payment of
the bonds is sufficient to retire the bonds, the county shall
levy on all taxable property in the territory of the
organization or unit, without respect to any statutory or other
limitation on taxes, an amount of taxes sufficient to pay
principal and interest on the bonds and to restore any
deficiencies in reserves required to be maintained for payment
of the bonds. The tax levied on rural towns other than urban
towns may not exceed one mill 0.02418 percent of taxable market
value, unless approved by resolution of the town electors. If
at any time the amounts available from the levy on property in
the territory of the organization are insufficient to pay
principal and interest on the bonds when due, the county shall
make payment from any available funds in the county treasury.
The amount of any taxes which are required to be levied outside
of the territory of the watershed management organization or
unit or taken from the general funds of the county to pay
principal or interest on the bonds shall be reimbursed to the
county from taxes levied within the territory of the watershed
management organization or unit.
Sec. 79. Minnesota Statutes 1988, section 641.23, is
amended to read:
641.23 [FUNDS, HOW PROVIDED.]
Before any contract is made for the erection of a county
jail, sheriff's residence, or both, the county board shall
either levy a sufficient tax to provide the necessary funds, or
issue county bonds therefor in accordance with the provisions of
chapter 475, provided that the amount of all bonds issued for
this purpose and interest on them which are due and payable in
any year shall not exceed an amount equal to four mills times
the gross tax capacity 0.09671 percent of market value of
taxable property within the county, as last determined before
the bonds are issued.
Sec. 80. [REPEALER.]
Minnesota Statutes 1988, sections 69.36; 423.376; 423.47;
423.807; 424.12; and 424.13, are repealed.
Sec. 81. [EFFECTIVE DATE.]
Sections 30, 35, 39, 41, 72, 78, and 79 are effective for
bonds and other obligations issued after June 30, 1989, provided
that the limitations in those sections include the amount of
debt service on obligations issued before that date. Section 33
is effective for obligations issued after the date of enactment
of this act.
Presented to the governor May 23, 1989
Signed by the governor May 25, 1989, 6:00 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes