Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1990, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1990
CHAPTER 604-H.F.No. 2478
An act relating to the financing and operation of
government in Minnesota; providing a taxpayer bill of
rights; updating references to the Internal Revenue
Code; imposing an annual fee on corporations and
partnerships; changing the computation of state aids
to local units of governments; modifying the
computation and administration of taxes and property
tax refunds; changing tax rates and providing
exemptions; requiring payment of the prevailing wage
for financial assistance; permitting the cities of
Bloomington and Roseville to impose lodging taxes;
changing truth-in-taxation requirements; modifying the
requirements for the collection and expenditure of tax
increments; requiring studies; imposing and
transferring powers and duties; changing certain
effective dates; allowing the sale of certain
tax-forfeited land in Otter Tail county; authorizing
special levies by the cities of Bayport, Windom,
Rosemount, Maple Grove, Brooklyn Park, Brooklyn
Center, and Coon Rapids, and Goodhue, Koochiching,
Douglas, Mille Lacs, and Becker counties; authorizing
issuance of bonds by the city of Bemidji; Beltrami and
Ramsey counties; special school district No. 1,
Minneapolis; independent school district No. 625, St.
Paul; independent school district No. 709, Duluth;
independent school district No. 316, Coleraine;
independent school district No. 381, Lake Superior;
independent school district No. 695, Chisholm;
independent school district No. 696, Ely; independent
school district No. 697, Eveleth; independent school
district No. 699, Gilbert; independent school district
No. 692, Babbitt; and independent school district No.
710, St. Louis county; providing a fund balance
correction for independent school district No. 624,
White Bear Lake; authorizing transfer of certain
Hennepin county money; appropriating money; amending
Minnesota Statutes 1988, sections 3.885, by adding a
subdivision; 16A.1541; 116.07, subdivision 4h;
124.195, subdivision 7; 136D.27, subdivision 2;
136D.74, subdivision 2a; 136D.87, subdivision 2;
169.86, subdivision 1; 270.07, by adding a
subdivision; 270.70, subdivisions 1, 2, 4, 8, and by
adding subdivisions; 270.701, by adding a subdivision;
270.709, subdivision 1; 271.12; 271.19; 273.124, by
adding subdivisions; 273.1398, by adding a
subdivision; 273.42, subdivision 1; 275.065, by adding
a subdivision; 275.125, subdivision 10; 275.55;
279.06; 281.17; 289A.50, as added, by adding a
subdivision; 290.068, subdivision 1; 290.31,
subdivision 1; 290.9725; 290A.03, subdivision 11, and
by adding a subdivision; 290A.19; 296.02, subdivision
1a; 296.025, subdivision 1a; 297.07, subdivision 5;
297A.01, subdivisions 15 and 16; 297A.25, subdivision
36, and by adding subdivisions; 298.015, subdivision
1; 298.017; 298.05; 298.24, subdivision 1; 469.043,
subdivision 5; 469.059, subdivision 11; 469.129,
subdivision 2; 469.171, by adding a subdivision;
469.174, subdivisions 11, 12, and by adding
subdivisions; 469.175, subdivision 1a, and by adding a
subdivision; 469.176, subdivisions 2 and 3; 469.177,
subdivision 8; 473.845, subdivision 4; 475.53, by
adding a subdivision; 477A.011, by adding
subdivisions; 477A.012, subdivisions 1, 3, and by
adding a subdivision; 477A.013, by adding a
subdivision; 477A.03, subdivision 1; 477A.11,
subdivision 4; 477A.13; 500.24, subdivision 4; 611.20;
611.215, subdivision 1; 611.26, subdivision 3; 611.27;
611.271; and 629.292, subdivision 1; Minnesota
Statutes 1989 Supplement, sections 103B.3369,
subdivisions 5 and 7; 115A.981, subdivision 3; 124.10,
subdivision 2; 124.83, subdivision 6; 136D.27,
subdivision 3; 136D.74, subdivision 2b; 136D.87,
subdivision 3; 270.10, subdivision 1a; 270.69,
subdivision 11; 273.11, subdivision 1; 273.112,
subdivision 3; 273.119, subdivision 2; 278.05,
subdivision 4; 282.01, subdivision 1; 290.01,
subdivision 19; 290.9201, by adding a subdivision;
290A.04, subdivision 5; 375.192, subdivision 2;
462.396, subdivision 2; 469.175, subdivision 4;
469.176, subdivision 4c; 469.177, subdivision 9;
611.26, subdivision 2; Minnesota Statutes Second 1989
Supplement, sections 3.885, subdivision 8; 3.982;
60A.15, subdivision 1; 124.83, subdivision 1; 256.025,
subdivision 4; 272.02, subdivision 4; 273.064;
273.123, subdivision 4; 273.13, subdivisions 22, 23,
24, and 25, as amended; 273.1398, subdivisions 1, 2,
and 6; 273.371, subdivision 1; 275.065, subdivisions
1, 3, and 6; 275.07, subdivisions 1 and 3; 275.50,
subdivision 5; 275.51, subdivisions 3f, as amended,
3h, and 4; 276.04, subdivision 2; 290.05, subdivision
1; 290.06, subdivisions 1 and 21; 290.091, subdivision
2; 290.0921, subdivisions 1, 3, 8, and by adding a
subdivision; 290A.04, subdivisions 2a and 2h; 357.021,
subdivision 1a; 469.171, subdivision 7a; 469.174,
subdivisions 7 and 10; 469.175, subdivisions 3 and 7;
469.176, subdivisions 1 and 4j; 469.177, subdivision
10; 469.190, subdivisions 1, 2, and 3; 473H.10,
subdivision 3; 477A.011, subdivisions 1a and 25;
477A.013, subdivisions 3, 5, and 6; Laws 1959, chapter
462, section 3, subdivision 10, as amended; Laws 1988,
chapter 719, article 12, section 30, as amended; Laws
1989, chapter 326, article 3, section 49; chapter 335,
article 3, sections 38, 44, 54, subdivision 8, and 58,
as amended; chapter 353, section 13; Laws 1989, First
Special Session chapter 1, article 5, section 52; Laws
1990, chapter 480, article 1, section 3, subdivision
14; and article 8, section 18; proposing coding for
new law in Minnesota Statutes, chapters 116J; 134;
270; 273; 289A; 290; and 469; repealing Minnesota
Statutes 1988, sections 115A.09, subdivision 5;
325E.045, subdivisions 3 and 4; Minnesota Statutes
1989 Supplement, sections 115A.922; 115A.923,
subdivisions 2, 3, 4, and 5; 115A.924; 115A.925;
115A.927; 115A.928; 375.192, subdivision 1; 383A.65;
Minnesota Statutes Second 1989 Supplement, sections
273.1398, subdivision 2b; 290.06, subdivision 1a; and
290A.045; Laws 1987, chapter 348, section 51,
subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
TAXPAYERS' BILL OF RIGHTS
Section 1. [270.0602] [BASIS FOR EVALUATION OF DEPARTMENT
OF REVENUE EMPLOYEES.]
The department of revenue must not use tax enforcement
results to impose individual revenue quotas with respect to
employees or their immediate supervisors who are directly
involved in assessment or collection activities. The department
may, however, use individual performance with regard to number
of cases completed and, in the case of collections employees,
dollars collected, as factors in evaluating an employee and not
be considered as failing to comply with this section.
Sec. 2. [270.0603] [DISCLOSURE OF RIGHTS OF TAXPAYERS.]
Subdivision 1. [IN GENERAL.] The commissioner of revenue
shall, as soon as practicable, but not later than 180 days after
the date of enactment of this act, prepare statements that set
forth in simple and nontechnical terms:
(1) the rights and obligations of the department of revenue
and the taxpayer during an audit;
(2) the procedures by which a taxpayer may appeal an
adverse decision of the department, including administrative and
judicial appeals;
(3) the procedures for filing refund claims and filing of
taxpayer complaints; and
(4) the procedures that the department may use in enforcing
the tax laws, including assessment, jeopardy assessment, levy
and distraint, and the filing of liens.
Subd. 2. [TRANSMISSION TO LEGISLATURE.] The commissioner
shall provide drafts of the statements required under
subdivision 1 to the chairs of the house of representatives and
senate tax committees for proposed revisions of the statements.
Subd. 3. [DISTRIBUTION.] The appropriate statement
prepared in accordance with subdivisions 1 and 2 must be
distributed by the commissioner to all taxpayers contacted with
respect to the determination or collection of a tax, other than
the providing of tax forms. Failure to receive the statement
does not invalidate the determination or collection action.
Sec. 3. Minnesota Statutes 1988, section 270.07, is
amended by adding a subdivision to read:
Subd. 6. [ABATEMENT OF PENALTY.] (a) A request for
abatement of penalty under subdivision 1, under section 289A.60,
subdivision 4, or under paragraph (c), must be filed with the
commissioner within 60 days of the date the notice was mailed to
the taxpayer's last known address, stating that a penalty has
been imposed.
(b) If the commissioner issues an order denying a request
for abatement of penalty, the taxpayer may, except as limited
under subdivision 1, file an administrative appeal as provided
in section 289A.65 or appeal to tax court as provided in section
271.06.
If the commissioner does not issue an order on the
abatement request within 60 days from the date the request is
received, the taxpayer may appeal to tax court as provided in
section 271.06.
(c) The commissioner shall abate any part of a penalty or
additional tax charge under section 289A.25, subdivision 2, or
289A.26, subdivision 4, attributable to erroneous advice given
to the taxpayer in writing by an employee of the department
acting in an official capacity, if the advice:
(1) was reasonably relied on and was in response to a
specific written request of the taxpayer; and
(2) was not the result of failure by the taxpayer to
provide adequate or accurate information.
Sec. 4. Minnesota Statutes 1989 Supplement, section
270.10, subdivision 1a, is amended to read:
Subd. 1a. [NOTIFICATION TO TAXPAYER.] At the same time
that notice of the assessment, determination, or order of the
commissioner is given to a taxpayer, the taxpayer must be
notified in writing of the right to appeal to the tax court, and
if applicable, to the small claims division. Except in the case
of mathematical or clerical errors, the notice must contain a
description of the basis for, including applicable law and other
factors considered in the determination, and a listing of the
amounts of tax due, interest, additions to tax, and penalties.
Failure to provide all the required information does not
invalidate the notice for purposes of satisfying statutory
notice requirements if the notice contains sufficient
information to advise the taxpayer that an assessment, order, or
other determination has been made. The taxpayer may request
further clarification within the time provided for appealing the
determination. In any notice of assessment, determination, or
order dealing with property valuation or assessment for property
tax purposes by the commissioner of revenue or a local unit of
government, the taxpayer must be notified in writing that a
taxpayer must appeal to the town or city board of equalization
and to the county board of equalization before appealing to the
small claims division of the tax court, except for those
taxpayers whose original assessments are determined by the
commissioner of revenue.
Sec. 5. [270.272] [PROCEDURES INVOLVING IN-PERSON TAXPAYER
INTERVIEWS.]
Subdivision 1. [RECORDING OF INTERVIEWS.] (a) In
connection with an interview with a taxpayer relating to the
audit or collection of a tax, and on advance request of the
taxpayer, an employee of the department of revenue shall allow
the taxpayer to make an audio recording of the interview at the
taxpayer's expense and with the taxpayer's equipment.
(b) An employee of the department may record an interview
described in paragraph (a) if the taxpayer is informed of the
recording before the interview and a transcript or copy of the
recording is made available to the taxpayer on the taxpayer's
request, provided the department is reimbursed by the taxpayer
for the cost of transcribing or copying the recording.
Subd. 2. [SAFEGUARDS.] (a) Before or at the start of an
initial interview, an employee of the department shall provide
to the taxpayer in the case of an audit interview an explanation
of the audit process and the taxpayer's rights under that
process and, in the case of a collection interview, an
explanation of the collection process and the taxpayer's rights
under that process.
(b) If a taxpayer requests to consult with an attorney,
accountant, agent, preparer, or any other person permitted to
represent the taxpayer before the department at any time during
an interview, except an interview initiated by an administrative
subpoena, the interview must be suspended for no more than 30
days.
Subd. 3. [REPRESENTATIVES HOLDING POWER OF ATTORNEY.] An
attorney, accountant, agent, preparer, or any other person
permitted to represent the taxpayer before the department who
has a written power of attorney executed by the taxpayer may
represent the taxpayer in an interview described in subdivision
1. The taxpayer may be required to accompany the representative
only if an administrative subpoena is issued. In this instance,
with the consent of an immediate supervisor and after ten days'
notice to the representative, the department employee may notify
the taxpayer directly that the employee believes the
representative is unreasonably delaying the examination or
investigation process.
Subd. 4. [NOT TO APPLY TO CERTAIN INVESTIGATIONS.] This
section does not apply to criminal investigations or
investigations relating to the conduct of an employee of the
department.
Sec. 6. [270.273] [TAXPAYER ASSISTANCE ORDERS; TAXPAYER'S
RIGHTS ADVOCATE.]
Subdivision 1. [AUTHORITY TO ISSUE.] On application filed
by a taxpayer with the department of revenue taxpayer's rights
advocate, in the form, manner, and in the time prescribed by the
commissioner, and after thorough investigation, the taxpayer's
rights advocate may issue a taxpayer assistance order if, in the
determination of the taxpayer's rights advocate, the manner in
which the state tax laws are being administered is creating or
will create an unjust and inequitable result for the taxpayer.
Subd. 2. [TERMS OF A TAXPAYER ASSISTANCE ORDER.] A
taxpayer assistance order may require the department to release
property of the taxpayer levied on, cease any action, or refrain
from taking any action to enforce the state tax laws against the
taxpayer, until the issue or issues giving rise to the order
have been resolved.
Subd. 3. [AUTHORITY TO MODIFY OR RESCIND.] A taxpayer
assistance order issued by the taxpayer's rights advocate under
this section may be modified or rescinded by the commissioner.
Subd. 4. [SUSPENSION OF RUNNING OF PERIOD OF
LIMITATION.] The running of the period of limitation with
respect to an action described in subdivision 2 is suspended
from the date of the taxpayer assistance order until the
expiration date of the order or, if modified, the expiration
date of the modified order or, if rescinded, the date of the
rescission.
Subd. 5. [INDEPENDENT ACTION OF TAXPAYER'S RIGHTS
ADVOCATE.] This section does not prevent the taxpayer's rights
advocate from taking action in the absence of an application
under subdivision 1.
Subd. 6. [TAXPAYER'S RIGHTS ADVOCATE.] For purposes of
this section, the term "taxpayer's rights advocate" includes a
designee of the taxpayer's rights advocate. The taxpayer's
rights advocate shall represent the interests of taxpayers who
have grievances against the department in connection with an
audit or collection activity, and shall report directly to the
commissioner. A determination of the taxpayer's rights advocate
under this section to issue or to not issue a taxpayer
assistance order is final, and cannot be appealed to the tax
court or any other court.
Sec. 7. [270.274] [REVIEW OF JEOPARDY ASSESSMENT AND LEVY
PROCEDURES.]
Subdivision 1. [ADMINISTRATIVE REVIEW.] Within five days
after a jeopardy assessment or collection is made to assess or
collect a tax administered by the commissioner of revenue, the
commissioner shall provide the taxpayer with a written statement
of the information relied on in making the assessment or levy.
Within 30 days after the written statement is provided or, if
not provided, within 35 days after the assessment or levy, the
taxpayer may request the commissioner to review the action
taken. After a request for review, the commissioner shall
determine whether the assessment or levy is reasonable and
whether the amount assessed or demanded as a result of the
action is appropriate under the circumstances.
Subd. 2. [JUDICIAL REVIEW.] A determination by the
commissioner under subdivision 1 is appealable to the tax court
in the manner provided by law, and the appeal must be
expeditiously heard by the court. If the court determines that
the making of the assessment or levy is unreasonable, or that
the amount assessed or demanded is inappropriate, the court may
order the commissioner to release the levy, abate the
assessment, redetermine in whole or in part the amount assessed
or demanded, or take other action. A determination by the court
under this subdivision is final and may not be appealed by
either party.
Subd. 3. [BURDEN OF PROOF.] In a proceeding under
subdivision 2, the burden of proving that the assessment or
collection of the tax was jeopardized by delay is on the
commissioner. Regarding the issue of whether the amount
assessed or demanded as a result of the action is appropriate,
the commissioner shall provide a written statement explaining
the basis for determining the amount, and the burden is on the
taxpayer to show that the statement is incorrect or invalid.
Sec. 8. [270.275] [CIVIL DAMAGES FOR FAILURE TO RELEASE
LIEN.]
Subdivision 1. [IN GENERAL.] (a) A taxpayer may bring a
civil action for damages against the commissioner in district
court when an employee or the department has knowingly or
negligently:
(1) failed to release a lien as required by section 270.69,
subdivision 11; or
(2) failed to release a lien within 30 days after
satisfaction of the liability on which the lien is based.
(b) An action under paragraph (a), clause (2), must be
preceded by 30 days written notice by the taxpayer to the
commissioner and the taxpayer's rights advocate that the lien
has not been released. An action under paragraph (a) must be
commenced within two years after the date the right of action
accrued.
Subd. 2. [DAMAGES.] On a finding of liability on the part
of the defendant in an action brought under subdivision 1, the
defendant is liable to the plaintiff in an amount equal to the
sum of actual, direct economic damages sustained by the
plaintiff due to the actions of the defendant, plus the costs of
the action. Damages must be paid in accordance with section
3.736, subdivision 7.
Subd. 3. [MITIGATION OF DAMAGES.] Damages awarded must be
reduced by the amount of the damages that could reasonably have
been mitigated by the plaintiff.
Sec. 9. [270.276] [CIVIL DAMAGES FOR CERTAIN UNAUTHORIZED
COLLECTION ACTIONS.]
Subdivision 1. [IN GENERAL.] If in connection with the
collection of previously determined delinquent taxes from a
taxpayer of a state tax administered by the commissioner of
revenue, an employee of the department recklessly or
intentionally disregards a state tax law or rule, the taxpayer
may bring a civil action for damages against the commissioner in
district court within two years after the date the right of
action accrues.
Subd. 2. [DAMAGES.] On a finding of liability on the part
of the defendant in an action brought under subdivision 1, the
defendant is liable to the plaintiff in an amount equal to the
lesser of $100,000, or the sum of (1) actual, direct economic
damages sustained by the plaintiff as a proximate result of the
reckless or intentional actions of the employee and (2) the
costs of the action. Damages must be paid in accordance with
section 3.736, subdivision 7.
Subd. 3. [LIMITATIONS.] A judgment for damages must not be
awarded under subdivision 2 unless the court determines that the
plaintiff has exhausted the administrative remedies available to
the plaintiff within the department. Damages awarded must be
reduced by the amount of the damages that could reasonably have
been mitigated by the plaintiff.
Subd. 4. [PENALTIES FOR PROCEDURES INSTITUTED PRIMARILY
FOR DELAY.] When it appears to the district court that:
(1) proceedings before it under this section have been
instituted or maintained by the taxpayer primarily for delay;
(2) the taxpayer's position in such proceeding is frivolous
or groundless; or
(3) the taxpayer unreasonably failed to pursue available
administrative remedies,
the district court, in its decision, may require the taxpayer to
pay to the department of revenue a penalty not in excess of
$25,000. The penalty may be assessed and, upon notice and
demand, may be collected in the same manner as a tax.
Sec. 10. Minnesota Statutes 1989 Supplement, section
270.69, subdivision 11, is amended to read:
Subd. 11. [ERRONEOUS LIENS.] After the filing of a notice
of lien under this section on the property or rights to property
of a person, the person may appeal to the commissioner, in the
form and at the time prescribed by the commissioner, alleging an
error in the filing of the lien and requesting its release. If
the commissioner of revenue determines that the filing of the
notice of any lien was erroneous, within 14 days after the
determination, the commissioner must issue a certificate of
release of the lien. The certificate must include a statement
that the filing of the lien was erroneous. In the event that
the claim lien is erroneous and is not released within the
14-day period, reasonable attorney fees shall be paid. Damages
must be paid in accordance with section 3.736, subdivision 7.
Sec. 11. Minnesota Statutes 1988, section 270.70,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY OF COMMISSIONER.] If any tax
payable to the commissioner of revenue or to the department of
revenue is not paid when due, such tax may be collected by the
commissioner of revenue within five years after the date of
assessment of the tax, or if the tax judgment has been filed,
within the statutory period of enforcement of a valid tax
judgment, by a levy upon all property and rights to property,
including any property in the possession of law enforcement
officials, of the person liable for the payment or collection of
such tax (except that which is exempt from execution pursuant to
section 550.37 and amounts received under United States Code,
title 29, chapter 19, as amended through December 31, 1989) or
property on which there is a lien provided in section 270.69.
For this purpose, the term "tax" shall include any penalty,
interest and costs properly payable. The term "levy" includes
the power of distraint and seizure by any means.
Sec. 12. Minnesota Statutes 1988, section 270.70,
subdivision 2, is amended to read:
Subd. 2. [NOTICE AND DEMAND; COLLECTION BY LEVY; JEOPARDY
COLLECTION.] Before a levy is made, notice and demand for
payment of the amount due shall must be given to the person
liable for the payment or collection of the tax at least ten 30
days prior to the levy. If the commissioner has reason to
believe that collection of the tax is in jeopardy, notice and
demand for immediate payment of the tax may be made by the
commissioner. If the tax is not paid, the commissioner may
proceed to collect by levy without regard to the ten day period
provided herein. The notice required under this subdivision
must be sent to the taxpayer's last known address and must
include a brief statement that sets forth in simple and
nontechnical terms:
(1) the administrative appeals available to the taxpayer
with respect to the levy and sale; and
(2) the alternatives available to the taxpayer that can
prevent a levy, including installment payment agreements under
section 270.67, subdivision 2.
Sec. 13. Minnesota Statutes 1988, section 270.70,
subdivision 4, is amended to read:
Subd. 4. [STAY OF SALE.] (a) Where a jeopardy assessment
or any other assessment has been made by the commissioner, the
property seized for collection of the tax shall not be sold
until the time has expired for filing an appeal of the
assessment with the tax court pursuant to chapter 271. If an
appeal has been filed, no sale shall be made unless the taxes
remain unpaid for a period of more than 30 days after final
determination of the appeal by the tax court or by the
appropriate judicial forum.
(b) Notwithstanding clause (a), seized property may be sold
if
(i) the taxpayer consents in writing to the sale, or
(ii) the commissioner determines that the property is
perishable or may become greatly reduced in price or value by
keeping, or that such property cannot be kept without great
expense.
The tax court has jurisdiction to review a determination
made under clause (b)(ii). Review is commenced by motion of the
commissioner or the taxpayer. The order of the court in
response to the motion is reviewable in the same manner as any
other decision of the tax court.
Sec. 14. Minnesota Statutes 1988, section 270.70,
subdivision 8, is amended to read:
Subd. 8. [SURRENDER OF PROPERTY SUBJECT TO LEVY.] Any
person who fails or refuses to surrender without reasonable
cause any property or rights to property subject to levy, upon
demand by the commissioner, shall be liable personally to the
state of Minnesota in an amount equal to the value of the
property or rights not so surrendered, but not exceeding the
amount of taxes for the collection of which such levy has been
made. Any amount recovered under this subdivision shall be
credited against the tax liability for the collection of which
such levy was made. A financial institution need not surrender
funds on deposit until ten days after service of the levy.
Sec. 15. Minnesota Statutes 1988, section 270.70, is
amended by adding a subdivision to read:
Subd. 17. [UNECONOMICAL LEVY.] No levy may be made on
property if the amount of the expenses that the commissioner
estimates would be incurred by the department with respect to
the levy and sale of the property exceeds the fair market value
of the property at the anticipated time of levy.
Sec. 16. Minnesota Statutes 1988, section 270.70, is
amended by adding a subdivision to read:
Subd. 18. [LEVY ON APPEARANCE DATE OF SUBPOENA.] No levy
may be made on the property of a person on the day on which the
person, or an officer or employee of the person, is required to
appear in response to a subpoena issued by the commissioner to
collect unpaid taxes, unless the commissioner determines that
the collection of the tax is in jeopardy.
Sec. 17. Minnesota Statutes 1988, section 270.701, is
amended by adding a subdivision to read:
Subd. 6. [RIGHT TO REQUEST SALE OF SEIZED PROPERTY WITHIN
60 DAYS.] The owner of property seized by levy may request that
the commissioner offer to sell the property within 60 days after
the request, or within a longer period requested by the owner.
The request must be complied with unless the commissioner
determines and notifies the owner within that period that
compliance is not in the best interests of the state of
Minnesota. A determination by the commissioner not to comply
with the request is appealable to the tax court in the manner
provided by law.
Sec. 18. Minnesota Statutes 1988, section 270.709,
subdivision 1, is amended to read:
Subdivision 1. [RELEASE OF LEVY.] It shall be lawful for
the commissioner to release the levy upon all or part of the
property or rights to property levied upon if the commissioner
determines that the release will facilitate the collection of
the liability, but the release shall not operate to prevent any
subsequent levy. The commissioner shall release a levy on all
or part of the property or rights to property levied on and
shall promptly notify the person on whom the levy was made that
the levy has been released if: (1) the liability for which the
levy was made is satisfied or has become unenforceable by lapse
of time; (2) release of the levy will facilitate collection of
the liability; (3) the taxpayer has entered into an installment
payment agreement under section 270.67, subdivision 2, unless
the agreement provides otherwise, or unless release of the levy
will jeopardize the status of the department as a secured
creditor; or (4) the fair market value of the property exceeds
the liability, and release of the levy on a part of the property
can be made without hindering collection. In the case of
tangible personal property essential in carrying on the trade or
business of the taxpayer, the commissioner shall provide for an
expedited determination under this subdivision. A release of
levy under this subdivision does not prevent a subsequent levy
on the property released.
Sec. 19. Minnesota Statutes 1988, section 271.12, is
amended to read:
271.12 [WHEN ORDER EFFECTIVE.]
No order for refundment by the commissioner of revenue, the
appropriate unit of government, or the tax court shall take
effect until the time for appeal therefrom or review thereof by
all parties entitled thereto has expired. Otherwise every order
of the commissioner, the appropriate unit of government, or the
tax court shall take effect immediately upon the filing thereof,
and no appeal therefrom or review thereof shall stay the
execution thereof or extend the time for payment of any tax or
other obligation unless otherwise expressly provided by law;
provided, that in case an order which has been acted upon, in
whole or in part, shall thereafter be set aside or modified upon
appeal, the determination upon appeal or review shall supersede
the order appealed from and be binding upon all parties affected
thereby, and such adjustments as may be necessary to give effect
thereto shall be made accordingly; and provided further, the tax
court may enjoin enforcement of the order of the commissioner
being appealed. If it be finally determined upon such appeal or
review that any person is entitled to refundment of any amount
which has been paid for a tax or other obligation, such amount,
unless otherwise provided by law, shall be paid to the person by
the state treasurer, or other proper officer, out of funds
derived from taxes of the same kind, if available for the
purpose, or out of other available funds, if any, with interest
at the rate specified in section 270.76 from the date of payment
of the tax, unless a different rate of interest is otherwise
provided by law, in which case such other rate shall apply, upon
certification by the commissioner of revenue, the appropriate
unit of government, the tax court or the supreme court.
If, within 120 days after a decision of the tax court
becomes final, the commissioner does not refund the overpayment
determined by the court, together with interest, on motion by
the taxpayer, the tax court shall have jurisdiction to order the
refund of the overpayment and interest, and to award reasonable
litigation costs for bringing the motion. If any tax,
assessment, or other obligation be increased upon such appeal or
review, the increase shall be added to the original amount, and
may be enforced and collected therewith.
Sec. 20. Minnesota Statutes 1988, section 271.19, is
amended to read:
271.19 [COSTS AND DISBURSEMENTS.]
Upon the determination of any appeal under this chapter
before the tax court, or of any review hereunder by the supreme
court, the costs and disbursements may be taxed and allowed in
favor of the prevailing party and against the losing party as in
civil actions. In any case where a person liable for a tax or
other obligation has lost an appeal or review instituted by the
person, and the tax court or court shall determine that the
person instituted the same merely for the purposes of delay, or
that the taxpayer's position in the proceedings is frivolous,
additional costs, commensurate with the expense incurred and
services performed by the agencies of the state in connection
with the appeal, but not exceeding $5,000 in any case, may be
allowed against the taxpayer, in the discretion of the tax court
or court. Costs and disbursements allowed against any such
person shall be added to the tax or other obligation determined
to be due, and shall be payable therewith. To the extent
described in section 3.761, where an award of costs and attorney
fees is authorized under section 3.762, the costs and fees shall
be allowed against the state, including expenses incurred by the
taxpayer to administratively protest or appeal to the department
of revenue the order, decision, or report of the commissioner
that is the subject of the tax court proceedings. Costs and
disbursements allowed against the state or other public agencies
shall be paid out of funds received from taxes or other
obligations of the kind involved in the proceeding, or other
funds of the agency concerned appropriated and available
therefor. Witnesses in proceedings under this chapter shall
receive like fees as in the district court, to be paid in the
first instance by the parties by whom the witnesses were called,
and to be taxed and allowed as herein provided.
Sec. 21. Minnesota Statutes, section 289A.50, as added in
Laws 1990, chapter 480, article 1, section 23, is amended by
adding a subdivision to read:
Subd. 9. [PETITION IN TAX COURT; REFUND OF
INTEREST.] Notwithstanding any other law, within one year after
a decision of the tax court upholding an assessment of the
commissioner of revenue becomes final, if the taxpayer has paid
the assessment in full, plus interest calculated by the
commissioner, the taxpayer may petition the tax court to reopen
the case solely for a determination that the interest paid
exceeds the interest legally due, and if so, the amount of the
overpayment. A determination of overpayment of interest under
this subdivision is a determination of overpayment of tax under
section 271.12, and is reviewable in the same manner as any
other decision of the tax court.
Sec. 22. [ALTERNATIVE DISPUTE RESOLUTION; LETTER RULINGS;
STUDY.]
The commissioner of revenue shall study the cost,
feasibility, and means of implementation of (1) an arbitration
procedure for resolving disputes between taxpayers and the
department of revenue without court litigation, and (2)
publication and dissemination of administrative determinations,
decisions, and rulings of the department of revenue, through the
use of private letter rulings or otherwise. In preparing the
study, the commissioner shall consult with the bar association
and society of certified public accountants. The commissioner
shall report the results of the study to the legislature by
January 7, 1991.
Sec. 23. [EFFECTIVE DATES.]
Section 1 is effective for evaluations occurring on or
after August 1, 1990.
Sections 2 and 22 are effective the day following final
enactment.
Section 3 is effective for advice given on or after August
1, 1990.
Section 4 is effective for notices of assessment issued on
or after August 1, 1990.
Section 5 is effective for interviews occurring on or after
August 1, 1990.
Section 6 is effective for taxpayer assistance applications
filed on or after August 1, 1990.
Section 7 is effective for jeopardy assessments and levies
made on or after August 1, 1990.
Sections 8 and 9 are effective for causes of action arising
on or after August 1, 1990.
Section 10 is effective for liens filed on or after August
1, 1990.
Sections 11, 15, and 16 are effective August 1, 1990.
Sections 12, 14, and 18 are effective for levies issued on
or after August 1, 1990.
Sections 13 and 17 are effective for property seized on or
after August 1, 1990.
Sections 19 and 20 are effective for tax court appeals
filed on or after August 1, 1990.
Section 21 is effective for interest payments made on or
after August 1, 1990.
ARTICLE 2
INCOME, GROSS PREMIUMS,
AND FRANCHISE TAXES
Section 1. Minnesota Statutes Second 1989 Supplement,
section 60A.15, subdivision 1, is amended to read:
Subdivision 1. [DOMESTIC AND FOREIGN COMPANIES.] (a) On or
before April 15, June 15, and December 15 of each year, every
domestic and foreign company, including town and farmers' mutual
insurance companies and domestic mutual insurance companies,
shall pay to the commissioner of revenue installments equal to
one-third of the insurer's total estimated tax for the current
year. Except as provided in paragraph (b), installments must be
based on a sum equal to two percent of the premiums described in
paragraph (c).
(b) For town and farmers' mutual insurance companies and
mutual property and casualty insurance companies other than
those (i) writing life insurance, or (ii) whose total assets at
the end of the preceding calendar year exceed on December 31,
1989, exceeded $1,600,000,000, the installments must be based on
an amount equal to the following percentages of the premiums
described in paragraph (c):
(1) for premiums paid after December 31, 1988, and before
January 1, 1992, one percent; and
(2) for premiums paid after December 31, 1991, one-half of
one percent.
(c) Installments under paragraph (a) or (b) are percentages
of gross premiums less return premiums on all direct business
received by the insurer in this state, or by its agents for it,
in cash or otherwise, during such year, excepting premiums
written for marine insurance as specified in subdivision 6.
(d) Failure of a company to make payments of at least
one-third of either (1) the total tax paid during the previous
calendar year or (2) 80 percent of the actual tax for the
current calendar year shall subject the company to the penalty
and interest provided in this section.
Sec. 2. Minnesota Statutes 1989 Supplement, section
290.01, subdivision 19, is amended to read:
Subd. 19. [NET INCOME.] The term "net income" means the
federal taxable income, as defined in section 63 of the Internal
Revenue Code of 1986, as amended through the date named in this
subdivision, incorporating any elections made by the taxpayer in
accordance with the Internal Revenue Code in determining federal
taxable income for federal income tax purposes, and with the
modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund
thereof, as defined in section 851(a) or 851(h) of the Internal
Revenue Code, federal taxable income means investment company
taxable income as defined in section 852(b)(2) of the Internal
Revenue Code, except that:
(1) the exclusion of net capital gain provided in section
852(b)(2)(A) of the Internal Revenue Code does not apply; and
(2) the deduction for dividends paid under section
852(b)(2)(D) of the Internal Revenue Code must be applied by
allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C)
and 852(b)(5) of the Internal Revenue Code.
The net income of a real estate investment trust as defined
and limited by section 856(a), (b), and (c) of the Internal
Revenue Code means the real estate investment trust taxable
income as defined in section 857(b)(2) of the Internal Revenue
Code.
The Internal Revenue Code of 1986, as amended through
December 31, 1986, shall be in effect for taxable years
beginning after December 31, 1986. The provisions of sections
10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223,
10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the
Omnibus Budget Reconciliation Act of 1987, Public Law Number
100-203, and the provisions of sections 1001, 1002, 1003, 1004,
1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013,
1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137,
6277, and 6282 of the Technical and Miscellaneous Revenue Act of
1988, Public Law Number 100-647, and the provisions of sections
7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of
1989, Public Law Number 101-239, shall be effective at the time
they become effective for federal income tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1987, shall be in effect for taxable years
beginning after December 31, 1987. The provisions of sections
4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011,
6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180,
6182, 6280, and 6281 of the Technical and Miscellaneous Revenue
Act of 1988, Public Law Number 100-647, and the provisions of
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
of 1989, Public Law Number 101-239, shall become effective at
the time they become effective for federal tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1988, shall be in effect for taxable years
beginning after December 31, 1988. The provisions of sections
7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206,
7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622,
7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget
Reconciliation Act of 1989, Public Law Number 101-239, and the
provision of section 1401 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
shall become effective at the time they become effective for
federal tax purposes.
Except as otherwise provided, references to the Internal
Revenue Code in subdivisions 19a to 19g mean the code in effect
for purposes of determining net income for the applicable year.
Sec. 3. Minnesota Statutes Second 1989 Supplement, section
290.05, subdivision 1, is amended to read:
Subdivision 1. The following corporations, individuals,
estates, trusts, and organizations shall be exempted from
taxation under this chapter, provided that every such person or
corporation claiming exemption under this chapter, in whole or
in part, must establish to the satisfaction of the commissioner
the taxable status of any income or activity:
(a) corporations, individuals, estates, and trusts engaged
in the business of mining or producing iron ore and other ores
the mining or production of which is subject to the occupation
tax imposed by section 298.01; but if any such corporation,
individual, estate, or trust engages in any other business or
activity or has income from any property not used in such
business it shall be subject to this tax computed on the net
income from such property or such other business or activity.
Royalty shall not be considered as income from the business of
mining or producing iron ore within the meaning of this section;
(b) the United States of America, the state of Minnesota or
any political subdivision of either agencies or
instrumentalities, whether engaged in the discharge of
governmental or proprietary functions;
(c) any insurance company that is domiciled in a state or
country other than Minnesota that imposes retaliatory taxes,
fines, deposits, penalties, licenses, or fees and that does not
grant, on a reciprocal basis, exemption from such retaliatory
taxes to insurance companies or their agents domiciled in
Minnesota. "Retaliatory taxes" means taxes imposed on insurance
companies organized in another state or country that result from
the fact that an insurance company organized in the taxing
jurisdiction and doing business in the other jurisdiction is
subject to taxes, fines, deposits, penalties, licenses, or fees
in an amount exceeding that imposed by the taxing jurisdiction
upon an insurance company organized in the other state or
country and doing business to the same extent in the taxing
jurisdiction; and
(d) town and farmers' mutual insurance companies and mutual
property and casualty insurance companies, other than those (1)
writing life insurance or (2) whose total assets at the end of
the preceding calendar year exceed on December 31, 1989,
exceeded $1,600,000,000.
Sec. 4. Minnesota Statutes Second 1989 Supplement, section
290.06, subdivision 1, is amended to read:
Subdivision 1. [COMPUTATION, CORPORATIONS.] The franchise
tax imposed upon corporations shall be computed by applying to
their taxable income the rate of 9.5 9.8 percent.
Sec. 5. Minnesota Statutes Second 1989 Supplement, section
290.06, subdivision 21, is amended to read:
Subd. 21. [ALTERNATIVE MINIMUM TAX; FACTORS TAX.] (a) A
corporation is allowed a credit for alternative minimum tax
previously paid for any taxable year in which the corporation
has no tax liability under section 290.092, subdivision 1, and
has an alternative minimum tax credit carryover from a previous
year. The credit allowable in any taxable year equals the
lesser of (1) the excess of the tax under this section
subdivision 1 for the taxable year over the amount computed
under section 290.092, subdivision 1, clause (1), for the
taxable year, or (2) the alternative minimum tax credit
carryover to the taxable year.
(b) The tax imposed under section 290.092, subdivision 1,
for the taxable year is an alternative minimum tax credit
carryover to each of the five taxable years succeeding the
taxable year. The entire amount of the alternative minimum tax
credit must be carried to the earliest taxable year to which the
amount may be carried. The unused portion of the credit must be
carried to the following taxable year. No credit may be carried
to a taxable year more than five years after the taxable year in
which the alternative minimum tax under section 290.092,
subdivision 1, was paid incurred.
(c) For taxable years beginning after December 31, 1989,
qualification for a credit and computation of the amount of the
credit for alternative minimum tax under paragraph (a) must be
determined by computing the alternative minimum tax that would
apply if section 290.092 were in effect for the taxable year.
Sec. 6. Minnesota Statutes 1988, section 290.068,
subdivision 1, is amended to read:
Subdivision 1. [CREDIT ALLOWED.] A corporation, other than
a corporation with a valid election in effect under section
290.9725 1362 of the Internal Revenue Code of 1986, as amended
through December 31, 1989, is allowed a credit against
the portion of the franchise tax imposed by this chapter
computed under section 290.06, subdivision 1, for the taxable
year equal to:
(a) 5 percent of the first $2 million of the excess (if
any) of
(1) the qualified research expenses for the taxable year,
over
(2) the base period research expenses; and
(b) 2.5 percent on all of such excess expenses over $2
million.
Sec. 7. Minnesota Statutes Second 1989 Supplement, section
290.091, subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by
this section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of
the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable
income as defined in section 55(b)(2) of the Internal Revenue
Code;
(2) the taxpayer's itemized deductions allowed in computing
federal alternative minimum taxable income, but excluding the
portion of the Minnesota charitable contribution deduction that
constitutes an item of tax preference under section 57(a)(6) of
the Internal Revenue Code;
(3) to the extent not included in federal alternative
minimum taxable income, the amount of interest income as
provided by section 290.01, subdivision 19a, clause (1); less
the sum of
(i) interest income as defined in section 290.01,
subdivision 19b, clause (1);
(ii) an overpayment of state income tax as provided by
section 290.01, subdivision 19b, clause (2); and
(iii) the amount of investment interest paid or accrued
within the taxable year on indebtedness to the extent that the
amount does not exceed net investment income, as defined in
section 163(d)(4) of the Internal Revenue Code. Interest does
not include amounts deducted in computing federal adjusted gross
income.
In the case of an estate or trust, alternative minimum
taxable income must be computed as provided in section 59(c) of
the Internal Revenue Code.
(b) "Internal Revenue Code" means the Internal Revenue Code
of 1986, as amended through December 31, 1987 1989.
(c) "Investment interest" means investment interest as
defined in section 163(d)(3) of the Internal Revenue Code.
(d) "Tentative minimum tax" equals six percent of
alternative minimum taxable income after subtracting the
exemption amount determined under subdivision 3.
(e) "Regular tax" means the tax that would be imposed under
this chapter (without regard to this section and section
290.032), reduced by the sum of the nonrefundable credits
allowed under this chapter.
(f) "Net minimum tax" means the minimum tax imposed by this
section.
(g) "Minnesota charitable contribution deduction" means a
charitable contribution deduction under section 170 of the
Internal Revenue Code to or for the use of an entity described
in section 290.21, subdivision 3, clauses (a) to (e).
Sec. 8. Minnesota Statutes Second 1989 Supplement, section
290.0921, subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED.] (a) In addition to the taxes
computed under this chapter without regard to this section, the
franchise tax imposed on corporations includes a tax equal to
the excess, if any, for the taxable year of:
(1) seven 5.8 percent of Minnesota alternative minimum
taxable income less the credit allowed under section 290.35,
subdivision 3; over
(2) the tax imposed under section 290.06, subdivision 1,
without regard to this section.
(b) If the sum of the corporation's Minnesota sales and
receipts, property, and payrolls, as defined in section 290.092,
subdivision 4, exceeds $5,000,000, the amount under paragraph
(a), clause (1), is the greater of
(1) $500 or
(2) the amount otherwise determined.
The provisions of this paragraph do not apply to
corporations subject to tax under section 60A.15, subdivision 1;
real estate investment trusts; and regulated investment
companies or a fund thereof.
Sec. 9. Minnesota Statutes Second 1989 Supplement, section
290.0921, subdivision 3, is amended to read:
Subd. 3. [ALTERNATIVE MINIMUM TAXABLE INCOME.]
"Alternative minimum taxable income" is Minnesota net income as
defined in section 290.01, subdivision 19, and includes the
adjustments and tax preference items in sections 56, 57, 58, and
59(d), (e), (f) and (h) of the Internal Revenue Code. If a
corporation files a separate company Minnesota tax return, the
minimum tax must be computed on a separate company basis. If a
corporation is part of a tax group filing a unitary return, the
minimum tax must be computed on a unitary basis. The following
adjustments must be made.
(1) For purposes of the depreciation adjustments under
section 56(a)(1) and 56(g)(4)(A) of the Internal Revenue Code,
the basis for depreciable property placed in service in a
taxable year beginning before January 1, 1990, is the adjusted
basis for federal income tax purposes, including any
modification made in a taxable year under section 290.01,
subdivision 19e, or Minnesota Statutes 1986, section 290.09,
subdivision 7, paragraph (c).
(2) The alternative tax net operating loss deduction under
sections 56(a)(4) and 56(d) of the Internal Revenue Code does
not apply.
(3) The special rule for 100 percent certain dividends
under section 56(g)(4)(C)(ii) of the Internal Revenue Code does
not apply.
(4) The special rule for dividends from section 936
companies under section 56(g)(4)(C)(iii) does not apply.
(5) The tax preference for depletion under section 57(a)(1)
of the Internal Revenue Code does not apply.
(6) The tax preference for intangible drilling costs under
section 57(a)(2) of the Internal Revenue Code must be calculated
without regard to the subtraction under section 290.01,
subdivision 19d, clause (4).
(7) The tax preference for tax exempt interest under
section 57(a)(5) of the Internal Revenue Code does not apply.
(8) The tax preference for charitable contributions of
appreciated property under section 57(a)(6) of the Internal
Revenue Code does not apply.
(9) For purposes of calculating the tax preference for
accelerated depreciation or amortization on certain property
placed in service before January 1, 1987, under section 57(a)(7)
of the Internal Revenue Code, the deduction allowable for the
taxable year is the deduction allowed under section 290.01,
subdivision 19e.
(10) For purposes of calculating the adjustment for
adjusted current earnings in section 56(g) of the Internal
Revenue Code, the term "alternative minimum taxable income" as
it is used in section 56(g) of the Internal Revenue Code, means
alternative minimum taxable income as defined in this
subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal
Revenue Code.
(11) For purposes of determining the amount of adjusted
current earnings under section 56(g)(3) of the Internal Revenue
Code, no adjustment shall be made under section 56(g)(4) of the
Internal Revenue Code with respect to (i) the amount of foreign
dividend gross-up subtracted as provided in section 290.01,
subdivision 19d, clause (1), (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in
section 290.01, subdivision 19d, clause (10), or (iii) the
amount of royalties, fees or other like income subtracted as
provided in section 290.01, subdivision 19d, clause (11).
Items of tax preference must not be reduced below zero as a
result of the modifications in this subdivision.
Sec. 10. Minnesota Statutes Second 1989 Supplement,
section 290.0921, is amended by adding a subdivision to read:
Subd. 3a. [EXEMPTIONS.] The following entities are exempt
from the tax imposed by this section:
(1) cooperatives taxable under subchapter T of the Internal
Revenue Code or organized under chapter 308 or a similar law of
another state;
(2) corporations subject to tax under section 60A.15,
subdivision 1;
(3) real estate investment trusts;
(4) regulated investment companies or a fund thereof; and
(5) entities having a valid election in effect under
section 860D(b) of the Internal Revenue Code of 1986, as amended
through December 31, 1989.
Sec. 11. Minnesota Statutes Second 1989 Supplement,
section 290.0921, subdivision 8, is amended to read:
Subd. 8. [CARRYOVER CREDIT.] (a) A corporation is allowed
a credit against qualified regular tax for qualified alternative
minimum tax previously paid. The credit is allowable only if
the corporation has no tax liability under this section for the
taxable year and if the corporation has an alternative minimum
tax credit carryover from a previous year. The credit allowable
in a taxable year equals the lesser of
(1) the excess of the qualified regular tax for the taxable
year over the amount computed under subdivision 1, paragraph
(a), clause (1), multiplied by the sum of one plus the surtax
percentage under section 290.06, subdivision 1a, for the taxable
year or
(2) the carryover credit to the taxable year.
(b) For purposes of this subdivision, the following terms
have the meanings given.
(1) "Qualified alternative minimum tax" equals the amount
determined under subdivision 1 for the taxable year multiplied
by the sum of one plus the surtax percentage rate under section
290.06, subdivision 1a. In computing the amount of alternative
minimum tax
(i) the adjustment under section 56(c)(3) of the Internal
Revenue Code must not be made;
(ii) the full amount of the charitable contribution
deduction under section 290.21, subdivision 3, must be deducted
in computing Minnesota alternative minimum taxable income; and
(iii) in the case of a corporation subject to an occupation
tax under section 298.01 the tax preference for depletion under
section 57(a)(1) of the Internal Revenue Code must be deducted
in computing Minnesota alternative minimum taxable income.
(2) "Qualified regular tax" means the tax imposed under
section 290.06, subdivision 1, and a surtax imposed on that tax
under section 290.06, subdivision 1a.
(c) The qualified alternative minimum tax for a taxable
year is an alternative minimum tax credit carryover to each of
the five taxable years succeeding the taxable year. The entire
amount of the credit must be carried to the earliest taxable
year to which the amount may be carried. Any unused portion of
the credit must be carried to the following taxable year. No
credit may be carried to a taxable year in which alternative
minimum tax was paid.
Sec. 12. [290.0922] [MINIMUM FEE; CORPORATIONS.]
Subdivision 1. [IMPOSITION.] (a) In addition to the tax
imposed by this chapter without regard to this section, the
franchise tax imposed on a corporation required to file under
section 290.37, other than a corporation having a valid election
in effect under section 1362 of the Internal Revenue Code of
1986, as amended through December 31, 1989, for the taxable year
includes a tax equal to the following amounts:
If the sum of the corporation's
Minnesota property, payrolls, and sales
or receipts is: the tax equals:
less than $500,000 $0
$ 500,000 to $ 1,000,000 $100
$ 1,000,000 to $ 4,999,999 $300
$ 5,000,000 to $ 9,999,999 $1,000
$10,000,000 to $19,999,999 $2,000
$20,000,000 or more $5,000
(b) A tax is imposed annually beginning in 1990 on a
corporation required to file a return under section 290.41,
subdivision 1, that has a valid election in effect for the
taxable year under section 1362 of the Internal Revenue Code of
1986, as amended through December 31, 1989, and on a partnership
required to file a return under section 290.41, subdivision 1,
other than a partnership that derives over 80 percent of its
income from farming. The tax imposed under this paragraph is
due on or before the due date of the return due under section
290.41, subdivision 1, for the calendar year following the
calendar year in which the tax is imposed. The commissioner
shall prescribe the return to be used for payment of this tax.
The tax under this paragraph is equal to the following amounts:
If the sum of the S corporation's or partnership's
Minnesota property, payrolls, and sales
or receipts is: the tax equals:
less than $500,000 $0
$ 500,000 to $ 1,000,000 $100
$ 1,000,000 to $ 4,999,999 $300
$ 5,000,000 to $ 9,999,999 $1,000
$10,000,000 to $19,999,999 $2,000
$20,000,000 or more $5,000
Subd. 2. [EXEMPTIONS.] The following entities are exempt
from the tax imposed by this section:
(1) corporations exempt from tax under section 290.05 other
than insurance companies exempt under subdivision 1, paragraph
(d);
(2) real estate investment trusts;
(3) regulated investment companies or a fund thereof; and
(4) entities having a valid election in effect under
section 860D(b) of the Internal Revenue Code of 1986, as amended
through December 31, 1989; and
(5) town and farmers' mutual insurance companies.
Entities not specifically exempted by this subdivision are
subject to tax under this section, notwithstanding section
290.05.
Subd. 3. [DEFINITION.] "Minnesota sales or receipts,"
"Minnesota property," and "Minnesota payrolls" have the meanings
given in section 290.092, subdivision 4.
Sec. 13. Minnesota Statutes 1988, section 290.31,
subdivision 1, is amended to read:
Subdivision 1. [PARTNERS, NOT PARTNERSHIP, SUBJECT TO
TAX.] A partnership as such shall not be subject to the income
tax imposed by this chapter, but is subject to the tax imposed
under section 290.0922. Persons carrying on business as
partners shall be liable for income tax only in their separate
or individual capacities.
Sec. 14. Minnesota Statutes 1989 Supplement, section
290.9201, is amended by adding a subdivision to read:
Subd. 11. [EXCEPTION FROM WITHHOLDING FOR PUBLIC
SPEAKERS.] The provisions of subdivisions 7 and 8 shall not be
effective for compensation paid to nonresident public speakers
before January 1, 1992, if the compensation paid to the speaker
is less than $2,000 or is only a payment of the speaker's
expenses.
Sec. 15. Minnesota Statutes 1988, section 290.9725, is
amended to read:
290.9725 [S CORPORATION.]
For purposes of this chapter, the term "S corporation"
means any corporation having a valid election in effect for the
taxable year under section 1362 of the Internal Revenue Code of
1986, as amended through December 31, 1987. An S corporation
shall not be subject to the taxes imposed by this chapter,
except the taxes imposed under sections 290.0922, 290.92,
290.9727, 290.9728, and 290.9729.
Sec. 16. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall substitute the phrase "Internal Revenue Code of
1986, as amended through December 31, 1989" for the words
"Internal Revenue Code of 1986, as amended through December 31,
1988" wherever it occurs in chapters 290, 290A, and 291 except
for the use of the phrase in section 290.01, subdivision 19, and
section 290.92, subdivision 1, paragraph (1).
Sec. 17. [FEDERAL CHANGES.]
The changes made by sections 7841, 7304(a), 7817, 7110,
7815, 7816, 7811(d) of the Omnibus Budget Reconciliation Act of
1989, Public Law Number 101-239, and sections 202, 203, and 204
of Public Law Number 101-140 that affect the computation of
gross income as defined in Minnesota Statutes, section 290.01,
subdivision 20, the credit for research and experimental
expenditures as defined in Minnesota Statutes, section 290.068,
subdivision 2, the credit for state death taxes allowable as
defined in Minnesota Statutes, section 291.03, subdivision 1,
and the federal alternative minimum taxable income as defined in
Minnesota Statutes, section 290.091, subdivision 2, shall be in
effect at the same time they become effective for federal income
and estate tax purposes.
Sec. 18. [SEVERABILITY; INSURANCE TAXATION.]
(a) If the provision of Minnesota Statutes, section 60A.15,
subdivision 1, enacted in section 1, providing a reduced
insurance premiums tax rate to mutual insurance companies is
found by a final nonappealable order of a court of competent
jurisdiction to be unconstitutional or to have an
unconstitutional effect on the application of the insurance
premiums tax to other insurance companies, the legislature
intends that section 1 be invalid and the otherwise applicable
insurance premiums tax rates apply.
(b) If the provision of Minnesota Statutes, section 290.05,
subdivision 1, clause (d), enacted in section 3, exempting a
mutual insurance company from taxation under the corporate
franchise tax is found by a final nonappealable order of a court
of competent jurisdiction to be unconstitutional or to have an
unconstitutional effect on the application of the corporate
franchise tax to other insurance companies, the legislature
intends that the exemption enacted in section 3 be invalid and
the corporate franchise tax apply.
Sec. 19. [ESTIMATED TAXES; EXCEPTION.]
For taxable years beginning after December 31, 1989, but
before January 1, 1991, the commissioner of revenue may not
assess any additions to tax that are the result of a
corporation's failure to make sufficient estimated tax payments
due to the changes in this article.
Sec. 20. [SMALL BUSINESS TAX STUDY.]
The department of revenue shall conduct a study of the
state and local tax burden in relation to ability to pay for
businesses with combined Minnesota property, payroll, and sales
of less than $5,000,000 per year. The study shall present the
state and local tax burden, net of federal income tax
considerations, for representative businesses of various sizes,
legal structures, and levels of profitability. The study shall
relate tax burden to such measures of ability to pay as taxable
income, economic income, assets, and sales. The study shall be
submitted to the chairpersons of the tax committee of the house
of representatives and senate by December 1, 1990.
Sec. 21. [REPEALER.]
Minnesota Statutes Second 1989 Supplement, section 290.06,
subdivision 1a, is repealed.
Sec. 22. [EFFECTIVE DATE.]
Section 1 is effective for premiums paid after December 31,
1989. The provisions of section 12 are effective for taxable
years beginning after December 31, 1990 for insurance companies
domiciled in a state that imposes retaliatory taxes, fines,
deposits, penalties, licenses, or fees. Section 14 is effective
the day following final enactment. The remainder of this
article is effective for taxable years beginning after December
31, 1989, except as otherwise provided.
ARTICLE 3
PROPERTY TAXES
Section 1. Minnesota Statutes 1989 Supplement, section
103B.3369, subdivision 5, is amended to read:
Subd. 5. [FINANCIAL ASSISTANCE.] The board may award
grants to counties only to carry out water resource protection
and management programs identified as priorities in
comprehensive local water plans. Grants may be used to employ
persons and to obtain and use information necessary to:
(1) develop comprehensive local water plans under section
110B.04 that have not received state funding for water resources
planning as provided for in Laws 1987, chapter 404, section 30,
subdivision 5, clause (a); and
(2) implement comprehensive local water plans.
A base grant shall be awarded to a county that levies a tax at
the rate established under section 275.50, subdivision 5,
paragraph (z), in an amount equal to $37,500 less the amount
raised by that levy. If the amount necessary to implement the
local water plan for the county is less than $37,500, the amount
of the base grant shall be the amount that, when added to the
levy amount, equals the amount required to implement the plan.
Sec. 2. Minnesota Statutes 1989 Supplement, section
103B.3369, subdivision 7, is amended to read:
Subd. 7. [RULES.] The board shall adopt rules that:
(1) establish performance criteria for grant administration
for local implementation of state delegated or mandated programs
that recognize regional variations in program needs and
priorities;
(2) recognize the unique nature of state delegated or
mandated programs;
(3) specify that program activities contracted by a county
to another local unit of government are eligible for
funding; and
(4) require that grants from the board may not exceed the
amount matched by participating local units of government; and
(5) specify a process for the board to establish a base
level grant amount that all participating counties may be
eligible to receive.
Sec. 3. Minnesota Statutes 1989 Supplement, section
124.10, subdivision 2, is amended to read:
Subd. 2. The county auditor shall at the time of making
the March and November tax settlements of each year apportion to
the several districts the amount received from liquor licenses,
fines, estrays, and other sources belonging to the general
school fund. The county auditor each year shall apportion to
the school districts within the county the amount received from
powerline taxes under section 273.42, liquor licenses, fines,
estrays, and other sources belonging to the general fund. The
apportionment apportionments shall be made in proportion to each
district's net tax capacity within the county in the prior
year. The apportionments shall be made and amounts distributed
to the school districts at the times provided for the settlement
and distribution of real and personal property taxes under
sections 276.09, 276.11, and 276.111, except that all of the
power line taxes apportioned to a school district from the
county school fund shall be included in the first half
distribution of property taxes to the school district. No
district shall receive any part of the money received from
liquor licenses unless all sums paid for such licenses in such
district are apportioned to the county school fund.
Sec. 4. Minnesota Statutes 1988, section 124.195,
subdivision 7, is amended to read:
Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each
fiscal year state general fund payments for a district
nonoperating fund shall be made at 85 percent of the estimated
entitlement during the fiscal year of the entitlement, unless a
higher rate has been established according to section 121.904,
subdivision 4d. This amount shall be paid in 12 equal monthly
installments. The amount of the actual entitlement, after
adjustment for actual data, minus the payments made during the
fiscal year of the entitlement shall be paid prior to October 31
of the following school year. The commissioner may make advance
payments of homestead and agricultural credit aid for a
district's debt service fund earlier than would occur under the
preceding schedule if the district submits evidence showing a
serious cash flow problem in the fund. The commissioner may
make earlier payments during the year and, if necessary,
increase the percent of the entitlement paid to reduce the cash
flow problem.
Sec. 5. [134.342] [ALLOCATION OF LEVY AUTHORITY.]
Subdivision 1. [AUTHORITY.] A regional public library
system board may adopt a written resolution to assume
responsibility for the allocation of the regional library system
levy authority throughout the region. If adopted, the board
shall furnish a list to the commissioners of revenue and
education by July 1 of the levy year, containing the name of
each member city, town, and county that will be participating in
that regional system.
Subd. 2. [DETERMINATION OF LEVY LIMITATION.] The levy
limitation for a regional library system is equal to the sum of
the total maximum amount allowable for operating regional
library services for all member cities, towns, and counties
within the region subject to the levy limitation under section
275.50, subdivision 5, clause (o). If a member city or town of
a regional library system is not subject to the levy limitations
under sections 275.50 to 275.56, the commissioner of revenue
shall determine a levy limitation for the purposes of this
section as if the member were subject to the provisions of
section 275.50, subdivision 5, clause (o). The commissioner of
revenue shall determine the total maximum amount allowable for
the regional library system and shall certify the total amount
to the regional library board and to the commissioner of
education by August 1 of the levy year.
Subd. 3. [ALLOCATION OF AUTHORITY.] A regional public
library system board that has resolved to allocate library levy
authority among its member cities, towns, and counties shall
allocate the amount, up to the total amount certified to the
board by the commissioner of revenue, and shall notify each
member city, town, and county by August 15 of the levy year of
its respective share of the total library levy for the region.
Each member city, town, or county located in the region shall
levy the amount negotiated and agreed upon by the board and each
member city, town, or county.
The board shall certify to the commissioners of revenue and
education by September 1 of the levy year, the levy amount
allocated to each member city, town, and county in the regional
library system.
Subd. 4. [NON-ALLOCATED REGIONAL LIBRARY LEVY LIMITATION.]
A city, town, or county located within a regional library system
that does not allocate library levy authority under subdivisions
1 to 3 but is subject to the levy limitations under sections
275.50 to 275.56, shall levy according to section 275.50,
subdivision 5, clause (o), to pay the operating costs of a
regional library system.
Sec. 6. Minnesota Statutes 1988, section 169.86,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION FOR PERMIT.] The commissioner,
with respect to highways under the commissioner's jurisdiction,
and local authorities, with respect to highways under their
jurisdiction, may, in their discretion, upon application in
writing and good cause being shown therefor, issue a special
permit, in writing, authorizing the applicant to move a vehicle
or combination of vehicles of a size or weight of vehicle or
load exceeding the maximum specified in this chapter, or
otherwise not in conformity with the provisions of this chapter,
upon any highway under the jurisdiction of the party granting
such permit and for the maintenance of which such party is
responsible.
Permits relating to over-width, over-length manufactured
homes shall not be issued to persons other than manufactured
home dealers or manufacturers for movement of new units owned by
the manufactured home dealer or manufacturer, until the person
has presented a statement from the county auditor and treasurer
where the unit is presently located, stating that all personal
and real property taxes have been paid. Upon payment of the
most recent single year delinquent personal property or current
year taxes only, the county auditor or treasurer must issue a
taxes paid statement to a manufactured home dealer or a
financial institution desiring to relocate a manufactured home
that has been repossessed. This statement must be dated within
30 days of the contemplated move. The statement from the county
auditor and treasurer where the unit is presently located,
stating that all personal and real property taxes have been
paid, may be made by telephone. If the statement is obtained by
telephone, the permit shall contain the date and time of the
telephone call and the names of the persons in the auditor's
office and treasurer's office who verified that all personal and
real property taxes had been paid.
Sec. 7. Minnesota Statutes Second 1989 Supplement, section
272.02, subdivision 4, is amended to read:
Subd. 4. [CONVERSION TO EXEMPT OR TAXABLE USES.] (a) Any
property exempt from taxation on January 2 of any year which,
due to sale or other reason, loses its exemption prior to
December 20 of any year, shall be placed on the current
assessment rolls for that year.
The valuation shall be determined with respect to its value
on January 2 of such year. The classification shall be based
upon the use to which the property was put by the purchaser, or
in the event the purchaser has not utilized the property by
December 20, the intended use of the property, determined by the
county assessor, based upon all relevant facts.
(b) Property subject to tax on January 2 that is acquired
by a governmental entity, church, or educational institution
before August 1 of the year is exempt for that assessment year
if (1) the property is to be used for an exempt purpose under
subdivision 1, clauses (1) to (7), and (2) the property is not
subject to the filing requirement under section 272.025.
Sec. 8. Minnesota Statutes Second 1989 Supplement, section
273.064, is amended to read:
273.064 [EXAMINATION OF LOCAL ASSESSOR'S WORK; COMPLETION
OF ASSESSMENTS.]
The county assessor shall examine the assessment appraisal
records of each local assessor anytime after January 15 December
1 of each year and shall immediately give notice in writing to
the governing body of said district of any deficiencies in the
assessment procedures with respect to the quantity of or quality
of the work done as of that date and indicating corrective
measures to be undertaken and effected by the local assessor not
later than 30 days thereafter. If, upon reexamination of such
records at that time, the deficiencies noted in the written
notice previously given have not been substantially corrected to
the end that a timely and uniform assessment of all real
property in the county will be attained, then the county
assessor with the approval of the county board shall collect the
necessary records from the local assessor and complete the
assessment or employ others to complete the assessment. When
the county assessor has completed the assessments, the local
assessor shall thereafter resume the assessment function within
the district. In this circumstance the cost of completing the
assessment shall be charged against the assessment district
involved. The county auditor shall certify the costs thus
incurred to the appropriate governing body not later than August
1 and if unpaid as of September 1 of the assessment year, the
county auditor shall levy a tax upon the taxable property of
said assessment district sufficient to pay such costs. The
amount so collected shall be credited to the general revenue
fund of the county.
Sec. 9. Minnesota Statutes 1989 Supplement, section
273.11, subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] Except as provided in
subdivisions 6, 8, and 9 or section 273.17, subdivision 1, all
property shall be valued at its market value. The market value
as determined pursuant to this section shall be stated such that
any amount under $100 is rounded up to $100 and any amount
exceeding $100 shall be rounded to the nearest $100. In
estimating and determining such value, the assessor shall not
adopt a lower or different standard of value because the same is
to serve as a basis of taxation, nor shall the assessor adopt as
a criterion of value the price for which such property would
sell at a forced sale, or in the aggregate with all the property
in the town or district; but the assessor shall value each
article or description of property by itself, and at such sum or
price as the assessor believes the same to be fairly worth in
money. The assessor shall take into account the effect on the
market value of property of environmental factors in the
vicinity of the property. In assessing any tract or lot of real
property, the value of the land, exclusive of structures and
improvements, shall be determined, and also the value of all
structures and improvements thereon, and the aggregate value of
the property, including all structures and improvements,
excluding the value of crops growing upon cultivated land. In
valuing real property upon which there is a mine or quarry, it
shall be valued at such price as such property, including the
mine or quarry, would sell for a fair, voluntary sale, for
cash. In valuing real property which is vacant, the fact that
such property is platted shall not be taken into account. An
individual lot of such platted property shall not be assessed in
excess of the assessment of the land as if it were unplatted
until the lot is improved with a permanent improvement all or a
portion of which is located upon the lot, or for a period of
three years after final approval of said plat whichever is
shorter. When a lot is sold or construction begun, the net tax
capacity of that lot or any single contiguous lot fronting on
the same street shall be eligible for reassessment. All
property, or the use thereof, which is taxable under section
272.01, subdivision 2, or 273.19, shall be valued at the market
value of such property and not at the value of a leasehold
estate in such property, or at some lesser value than its market
value.
Sec. 10. Minnesota Statutes 1989 Supplement, 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.
A golf club that has food or beverage facilities or
services must allow equal access to those facilities and
services for both men and women members in all membership
categories at all times. Nothing in this paragraph shall be
construed to require service or access to facilities to persons
under the age of 21 years or require any act that would violate
law or ordinance regarding sale, consumption, or regulation of
alcoholic beverages.
For purposes of this subdivision and subdivision 7a,
discrimination means a pattern or course of conduct and not
linked to an isolated incident.
Sec. 11. Minnesota Statutes 1989 Supplement, section
273.119, subdivision 2, is amended to read:
Subd. 2. [REIMBURSEMENT FOR LOST REVENUE.] The county may
transfer money from the county conservation account created in
section 40A.152 to the county revenue fund to reimburse the fund
for the cost of the property tax credit. The county auditor
shall certify to the commissioner of revenue, as part of the
abstracts of tax lists required to be filed with the
commissioner under section 275.29, the amount of tax lost to the
county from the property tax credit under subdivision 1 and the
extent that the tax lost exceeds funds available in the county
conservation account. Any prior year adjustments must also be
certified in the abstracts of tax lists. The commissioner of
revenue shall review the certifications to determine their
accuracy. The commissioner may make the changes in the
certification that are considered necessary or return a
certification to the county auditor for corrections. The
commissioner shall reimburse each taxing district, other than
school districts, from the Minnesota conservation fund under
section 40A.151 for the taxes lost in excess of the county
account. The payments must be made at the times time provided
in section 477A.015 473H.10, subdivision 3, for payment of local
government aid to taxing jurisdictions in the same proportion
that the ad valorem tax is distributed.
Sec. 12. Minnesota Statutes Second 1989 Supplement,
section 273.123, subdivision 4, is amended to read:
Subd. 4. [STATE REIMBURSEMENT.] The county auditor shall
calculate the tax on the property described in subdivision 2
based on the assessment made on January 2 of the year in which
the disaster or emergency occurred. The difference between the
tax determined on the January 2 gross tax capacity and the tax
actually payable based on the reassessed gross tax capacity
determined under subdivision 2 shall be reimbursed to each
taxing jurisdiction in which the damaged property is located.
The amount shall be certified by the county auditor and reported
to the commissioner of revenue. The commissioner shall make the
payments to the taxing jurisdictions, other than school
districts, containing the property at the time distributions are
made under section 477A.015 473H.10, subdivision 3, in the same
proportion that the ad valorem tax is distributed.
Sec. 13. Minnesota Statutes 1988, section 273.124, is
amended by adding a subdivision to read:
Subd. 3a. [MANUFACTURED HOME PARK COOPERATIVE.] When a
manufactured home park is owned by a corporation or association
organized under chapter 308A, and each person who owns a share
or shares in the corporation or association is entitled to
occupy a lot within the park, the corporation or association may
claim homestead treatment for each lot occupied by a
shareholder. Each lot must be designated by legal description
or number, and each lot is limited to not more than one-half
acre of land for each homestead. The manufactured home park
shall be valued and assessed as if it were homestead property
within class 1 if all of the following criteria are met:
(1) the occupant is using the property as a permanent
residence;
(2) the occupant or the cooperative association is paying
the ad valorem property taxes and any special assessments levied
against the land and structure either directly, or indirectly
through dues to the corporation; and
(3) the corporation or association organized under chapter
308A is wholly owned by persons having a right to occupy a lot
owned by the corporation or association.
A charitable corporation, organized under the laws of
Minnesota with no outstanding stock, and granted a ruling by the
Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to member
residents of the manufactured home park who hold residential
participation warrants entitling them to occupy a lot in the
manufactured home park.
Sec. 14. Minnesota Statutes 1988, section 273.124, is
amended by adding a subdivision to read:
Subd. 15. [RESIDENCE OF DISABLED CHILD OF OWNER.] The
principal residence of an individual who has a permanent
disability as defined in section 290A.03, subdivision 10, shall
be classified as a homestead if the residence is wholly owned by
a parent or both parents of the individual. The application for
homestead benefits must be on a form prescribed by the
commissioner and must contain the information necessary for the
assessor to determine whether homestead classification under
this subdivision is warranted.
Sec. 15. Minnesota Statutes 1988, section 273.124, is
amended by adding a subdivision to read:
Subd. 16. [HOMESTEAD ACQUIRED UNDER EMINENT DOMAIN.] If a
home classified as a homestead under section 273.13, subdivision
22, is acquired from the owner under eminent domain proceedings,
a home purchased by the owner for use as a homestead within six
months of the date of acquisition under eminent domain must be
classified by the assessor as class 1 homestead property under
section 273.13, subdivision 22, for taxes payable in the
following year, notwithstanding the provisions of subdivision
9. The homeowner must apply to the assessor for classification
under this subdivision within 30 days of the purchase of the
home. The homeowner must provide the assessor with the
information necessary for the assessor to determine that the
property qualifies for homestead under this subdivision. The
assessor may require the homeowner to submit an affidavit.
Sec. 16. Minnesota Statutes Second 1989 Supplement,
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 class rate of one percent of its market value and a gross
class rate 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 $110,000 has a class rate of two percent of its
market value. The market value of class 1a property that
exceeds $100,000 $110,000 has a class rate of three 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.
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 class rate of .4 .45
percent of its market value and a gross class rate of .87
percent of its market value. The remaining market value of
class 1b property has a gross or net class rate 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 225 days in the year
preceding the year of assessment, and that includes a portion
used as a homestead by the owner, which includes a dwelling
occupied as a homestead by a shareholder of a corporation that
owns the resort or a partner in a partnership that owns the
resort, even if the title to the homestead is held by the
corporation or partnership. For purposes of this clause,
property is devoted to a commercial purpose on a specific day if
any portion of the property, excluding the portion used
exclusively as a homestead, is used or available for use for
residential occupancy and a fee is charged for residential
occupancy. Class 1c property has a class rate of .4 percent of
the first $32,000 of market value for taxes payable in 1990, .6
percent of the first $32,000 of market value for taxes payable
in 1991, .8 percent of the first $32,000 of market value for
taxes payable in 1992, and one percent of market value in excess
of $32,000 for taxes payable in 1990, 1991, and 1992, and one
percent of total market value for taxes payable in 1993 and
thereafter 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.
Sec. 17. Minnesota Statutes Second 1989 Supplement,
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 has the same class rates as class 1a property under
subdivision 22. If the market value of the house, garage, and
surrounding one acre of land is less than $100,000 $110,000, the
value of the remaining land including improvements equal to the
difference between $100,000 $110,000 and the market value of the
house, garage, and surrounding one acre of land has a net class
rate of .4 .45 percent of market value and a gross class rate of
1.75 percent of market value. The remaining value of class 2a
property over $100,000 $110,000 of market value that does not
exceed 320 acres has a net class rate of 1.3 percent of market
value for taxes payable in 1990, 1.4 percent of market value for
taxes payable in 1991, and 1.5 percent of market value for taxes
payable in 1992 and thereafter, and a gross class rate of 2.25
percent of market value. The remaining property over the
$100,000 $110,000 market value in excess of 320 acres has a
class rate of 1.7 percent of market value for taxes payable in
1990, and 1.6 percent of market value for taxes payable in 1991,
and 1.5 percent of market value for taxes payable in 1992 and
thereafter, and a gross tax capacity of 2.25 percent of market
value.
(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
class rate of 1.7 percent of market value for taxes payable in
1990, and 1.6 percent of market value for taxes payable in 1991,
and 1.5 percent of market value for taxes payable in 1992 and
thereafter, and a gross class rate 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. "Agricultural purposes" as
used in this section means the raising or cultivation of
agricultural products, and includes the commercial boarding of
horses if the commercial boarding of horses is done in
conjunction with the raising or cultivation of agricultural
products.
(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 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. 18. Minnesota Statutes Second 1989 Supplement,
section 273.13, subdivision 24, is amended to read:
Subd. 24. [CLASS 3.] (a) Commercial and industrial
property and utility real and personal property, except class 5
property as identified in subdivision 31, clause (1), is class
3a. It has a class rate of 3.3 percent of the first $100,000 of
market value for taxes payable in 1990, 3.2 percent for taxes
payable in 1991, 3.1 percent for taxes payable in 1992, and
three percent for taxes payable in 1993 and thereafter, and 5.06
percent of the market value over $100,000. In the case of
state-assessed commercial, industrial, and utility property
owned by one person or entity, only one parcel has a reduced
class rate on the first $100,000 of market value. In the case
of other commercial, industrial, and utility property owned by
one person or entity, only one parcel in each county has a
reduced class rate on the first $100,000 of market value.
(b) Employment property defined in section 469.166, during
the period provided in section 469.170, shall constitute class
3b and has a class rate of 2.4 2.3 percent of the first $50,000
of market value and 3.6 percent of the remainder, except that
for employment property located in a border city enterprise zone
designated pursuant to section 469.168, subdivision 4, paragraph
(c), the class rate of the first $100,000 of market value and
the class rate of the remainder is determined under paragraph
(a), unless the governing body of the city designated as an
enterprise zone determines that a specific parcel shall be
assessed pursuant to the first clause of this sentence. The
governing body may provide for assessment under the first clause
of the preceding sentence only for property which is located in
an area which has been designated by the governing body for the
receipt of tax reductions authorized by section 469.171,
subdivision 1.
Sec. 19. Minnesota Statutes Second 1989 Supplement,
section 273.13, subdivision 25, as amended by Laws 1990, chapter
480, article 7, section 7, is amended to read:
Subd. 25. [CLASS 4.] (a) Class 4a is residential real
estate containing four or more units and used or held for use by
the owner or by the tenants or lessees of the owner as a
residence for rental periods of 30 days or more. Class 4a also
includes hospitals licensed under sections 144.50 to 144.56,
other than hospitals exempt under section 272.02, and contiguous
property used for hospital purposes, without regard to whether
the property has been platted or subdivided. Class 4a property
has a class rate of 3.6 percent of market value.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational;
(2) post-secondary student housing not to exceed one acre
of land which is owned by a nonprofit corporation organized
under chapter 317 and is used exclusively by a sorority or
fraternity organization for housing;
(3) manufactured homes not classified under any other
provision;
(4) (3) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b).
Class 4b property has a class rate of 3.0 percent of market
value.
(c) Class 4c property includes:
(1) a structure that is situated on real property that is
used for housing for the elderly or for low and moderate income
families as defined by Title II of the National Housing Act or
the Minnesota housing finance agency law of 1971 or rules
promulgated by the agency pursuant thereto and financed by a
direct federal loan or federally insured loan or a loan made by
the Minnesota housing finance agency pursuant to the provisions
of either of those acts and acts amendatory thereof. This
clause applies only to property of a nonprofit or limited
dividend entity. Property is classified as class 4c under this
clause for 15 years from the date of the completion of the
original construction or substantial rehabilitation, or for the
original term of the loan;
(2) a structure that is:
(i) situated upon real property that is used for housing
lower income families or elderly or handicapped persons, as
defined in section 8 of the United States Housing Act of 1937,
as amended; and
(ii) owned by an entity which has entered into a housing
assistance payments contract under section 8 which provides
assistance for 100 percent of the dwelling units in the
structure, other than dwelling units intended for management or
maintenance personnel. Property is classified as class 4c under
this clause for the term of the housing assistance payments
contract, including all renewals, or for the term of its
permanent financing, whichever is shorter; and
(3) a qualified low-income building that (i) receives a
low-income housing credit under section 42 of the Internal
Revenue Code of 1986, as amended through December 31, 1988; or
(ii) meets the requirements of that section. Classification
pursuant to this clause is limited to buildings the construction
or rehabilitation of which began after May 1, 1988, and to a
term of 15 years.
For all properties described in clauses (1), (2), and (3)
and in paragraph (d), the market value determined by the
assessor must be based on the normal approach to value using
normal unrestricted rents. The land on which these structures
are situated has the class rate given in paragraph (b) if the
structure contains fewer than four units, and the class rate
given in paragraph (a) if the structure contains four or more
units.
(4) a parcel of land, not to exceed one acre, and its
improvements or a parcel of unimproved land, not to exceed one
acre, if it is owned by a neighborhood real estate trust and at
least 60 percent of the dwelling units, if any, on all land
owned by the trust are leased to or occupied by lower income
families or individuals. This clause does not apply to any
portion of the land or improvements used for nonresidential
purposes. For purposes of this clause, a lower income family is
a family with an income that does not exceed 65 percent of the
median family income for the area, and a lower income individual
is an individual whose income does not exceed 65 percent of the
median individual income for the area, as determined by the
United States Secretary of Housing and Urban Development. For
purposes of this clause, "neighborhood real estate trust" means
an entity which is certified by the governing body of the
municipality in which it is located to have the following
characteristics: (a) it is a nonprofit corporation organized
under chapter 317; (b) it has as its principal purpose providing
housing for lower income families in a specific geographic
community designated in its articles or bylaws; (c) it limits
membership with voting rights to residents of the designated
community; and (d) it has a board of directors consisting of at
least seven directors, 60 percent of whom are members with
voting rights and, to the extent feasible, 25 percent of whom
are elected by resident members of buildings owned by the trust;
and
(5) except as provided in subdivision 22, paragraph (c),
real property devoted to temporary and seasonal residential
occupancy for recreation purposes, including real property
devoted to temporary and seasonal residential occupancy for
recreation purposes and not devoted to commercial purposes for
more than 225 days in the year preceding the year of
assessment. For this purpose purposes of this clause, property
is devoted to a commercial use purpose on a specific day if it
any portion of the property is used, or offered available for
use for residential occupancy, and a fee is charged for the use
residential occupancy. Class 4c also includes commercial use
real property used exclusively for recreational purposes in
conjunction with class 4c property devoted to temporary and
seasonal residential occupancy for recreational purposes, up to
a total of two acres, provided the property is not devoted to
commercial recreational use for more than 225 days in the year
preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. Class 4c
property classified in this clause and clause (6) also includes
the remainder of class 1c resorts; and
(6) real property up to a maximum of one acre of land owned
by a nonprofit community service oriented organization; provided
that the property is not used for a revenue-producing activity
for more than six days in the calendar year preceding the year
of assessment and the property is not used for residential
purposes on either a temporary or permanent basis. For purposes
of this clause, a "nonprofit community service oriented
organization" means any corporation, society, association,
foundation, or institution organized and operated exclusively
for charitable, religious, fraternal, civic, or educational
purposes, and which is exempt from federal income taxation
pursuant to section 501(c)(3), (10), or (19) of the Internal
Revenue Code of 1986, as amended through December 31, 1988. For
purposes of this clause, "revenue-producing activities" shall
include but not be limited to property or that portion of the
property that is used as an on-sale intoxicating liquor or
nonintoxicating malt liquor establishment licensed under chapter
340A, a restaurant open to the public, bowling alley, a retail
store, gambling conducted by organizations licensed under
chapter 349, an insurance business, or office or other space
leased or rented to a lessee who conducts a for-profit
enterprise on the premises. Any portion of the property which
is used for revenue-producing activities for more than six days
in the calendar year preceding the year of assessment shall be
assessed as class 3a. The use of the property for social events
open exclusively to members and their guests for periods of less
than 24 hours, when an admission is not charged nor any revenues
are received by the organization shall not be considered a
revenue-producing activity; and
(7) post-secondary student housing of not more than one
acre of land that is owned by a nonprofit corporation organized
under chapter 317 and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or
housing located within two miles of the border of a college
campus; and
(8) manufactured home parks as defined in section 327.14,
subdivision 3.
Class 4c property has a class rate of 2.4 2.3 percent of
market value, except that manufactured home park property under
clause (8) has a class rate of 3 percent of market value for
taxes payable in 1991 and 2.3 percent of market value for taxes
payable in 1992, and thereafter.
(d) Class 4d property includes any structure:
(i) situated on real property that is used for housing for
the elderly or for low and moderate income families as defined
by the farmers home administration;
(ii) located in a municipality of less than 10,000
population; and
(iii) financed by a direct loan or insured loan from the
farmers home administration. Property is classified under this
clause for 15 years from the date of the completion of the
original construction or for the original term of the loan.
The class rates in paragraph (c), clauses (1), (2), and (3)
and this clause apply to the properties described in them, only
in proportion to occupancy of the structure by elderly or
handicapped persons or low and moderate income families as
defined in the applicable laws unless construction of the
structure had been commenced prior to January 1, 1984; or the
project had been approved by the governing body of the
municipality in which it is located prior to June 30, 1983; or
financing of the project had been approved by a federal or state
agency prior to June 30, 1983. Classification under this clause
is only available to property of a nonprofit or limited dividend
entity.
Class 4d property has a class rate of 1.7 percent of market
value for taxes payable in 1990, and two percent of market value
for taxes payable thereafter.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (2); paragraph (c), clause (1), (2), (3), or
(4), is assessed at the class rate applicable to it under
Minnesota Statutes 1988, section 273.13, if it is found to be a
substandard building under section 273.1316. Residential rental
property that would otherwise be assessed as class 4 property
under paragraph (d) is assessed at 2.4 2.3 percent of market
value if it is found to be a substandard building under section
273.1316.
Sec. 20. Minnesota Statutes Second 1989 Supplement,
section 273.1398, subdivision 6, is amended to read:
Subd. 6. [PAYMENT.] The commissioner shall certify the
aids provided in subdivisions 2, 2b, 3, and 5 before December 1,
1989, and October 1 thereafter 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. The disparity reduction credit provided in
subdivision 4 must be paid to taxing jurisdictions other than
school districts at the time provided in section 473H.10,
subdivision 3. Aids and credit reimbursements to school
districts must be certified to the commissioner of education and
paid under section 273.1392. Except for education districts and
secondary cooperatives that receive revenue according to section
124.2721 or 124.575, payment shall not be made to any taxing
jurisdiction that has ceased to levy a property tax nor shall
homestead and agricultural credit aid be payable on the part of
a levy to which homestead and agricultural credit aid was
separately allocated under subdivision 2, paragraph (b), clause
(2), which is no longer levied.
Sec. 21. Minnesota Statutes Second 1989 Supplement,
section 273.371, subdivision 1, is amended to read:
Subdivision 1. [REPORT REQUIRED.] Every electric light,
power, gas, water, express, stage, and transportation company
and pipeline doing business in Minnesota shall annually file
with the commissioner on or before March 31 a report under oath
setting forth the information prescribed by the commissioner to
enable the commissioner to make valuations, recommended
valuations, and equalization required under sections 273.33,
273.35, 273.36, and 273.37. If all the required information is
not available on March 31, the company or pipeline shall file
the information that is available on or before March 31, and the
balance of the information as soon as it becomes available.
Sec. 22. Minnesota Statutes 1988, section 273.42,
subdivision 1, is amended to read:
Subdivision 1. The property set forth in section 273.37,
subdivision 2, consisting of transmission lines of less than 69
kv and transmission lines of 69 kv and above located in an
unorganized township, and distribution lines not taxed as
provided in sections 273.38, 273.40 and 273.41 shall be taxed at
the average tax capacity rate of taxes levied for all purposes
throughout the county after disparity reduction aid is applied,
and shall be entered on the tax lists by the county auditor
against the owner thereof and certified to the county treasurer
at the same time and in the same manner that other taxes are
certified, and, when paid, shall be credited as follows: 50
percent to the general revenue fund of the county and 50 percent
to the general school fund of the county, except that if there
are high voltage transmission lines as defined in section
116C.52, the construction of which was commenced after July 1,
1974 and which are located in unorganized townships within the
county, then the distribution of taxes within this subdivision
shall be credited as follows: 50 percent to the general revenue
fund of the county, 40 percent to the general school fund of the
county and ten percent to a utility property tax credit fund,
which is hereby established.
Sec. 23. Minnesota Statutes Second 1989 Supplement,
section 275.065, subdivision 1, is amended to read:
Subdivision 1. [PROPOSED LEVY.] Notwithstanding any law or
charter to the contrary, on or before September 1, each taxing
authority, other than a school district, shall adopt a proposed
budget and each taxing authority shall certify to the county
auditor the proposed or, in the case of a town, the final
property tax levy for taxes payable in the following year. If
the board of estimate and taxation or any similar board that
establishes maximum tax levies for taxing jurisdictions within a
first class city certifies the maximum property tax levies for
funds under its jurisdiction by charter to the county auditor by
September 1, the city shall be deemed to have certified its
levies for those taxing jurisdictions. For purposes of this
section, "taxing authority" includes all home rule and statutory
cities, towns with a population over 5,000, counties, school
districts, and special taxing districts. The commissioner of
revenue shall determine what constitutes a special taxing
district for purposes of this section. Intermediate school
districts that levy a tax under chapter 136D, joint powers
boards established under sections 124.491 to 124.496, and common
school districts No. 323, Franconia, and No. 815, Prinsburg, are
special taxing districts for purposes of this section.
Sec. 24. Minnesota Statutes Second 1989 Supplement,
section 275.065, subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The
county auditor shall prepare and the county treasurer shall
deliver on or before November 10 each year, by first class mail
to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes and,
in the case of a town, final property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority other than a town
proposes to collect for taxes payable the following year as
required in paragraph (d) or (e) and, for a town, the amount of
its final levy. It must clearly state that each taxing
authority, other than a town or special taxing district, will
hold a public meeting to receive public testimony on the
proposed budget and proposed or final property tax levy, or, in
case of a school district, on the proposed property tax levy.
It must clearly state the time and place of each taxing
authority's meeting and an address where comments will be
received by mail. It must state the time and place for the
continuation of the hearing if the hearing is not completed on
the original date.
(d) Except as provided in paragraph (e), for taxes levied
in 1990 and 1991, the notice must state by county, city or town,
and school district:
(1) the total proposed or, for a town, final property tax
levy for taxes payable the following year after reduction for
state aid;
(2) the percentage increase or decrease from the actual
property tax levy for taxes payable in the current year; and
(3) for counties, cities, and towns, the increase or
decrease in population from the second previous calendar year to
the immediately prior calendar year, as determined by the state
demographer, and for school districts, the increase or decrease
in the number of pupils in average daily membership from the
second previous school year to the immediately prior school year
as determined by the commissioner of education. The data used
to determine the increase or decrease in population under this
clause must be the data used for purposes of the population
adjustment to the levy limit base of the county, city, or town
under section 275.51, subdivision 6.
For purposes of this paragraph, "proposed property taxes
after reduction for state aid" means the taxing authority's levy
certified under section 275.07, subdivision 1.
(e) In the case of a county containing a city of the first
class, or taxing authority lying wholly within a county or
counties containing a city of the first class, for taxes levied
in 1991, and thereafter, and for all counties for taxes levied
in 1992 and thereafter, the notice must state for each parcel:
(1) the market value of the property as defined under
section 272.03, subdivision 8, for property taxes payable in the
following year and for taxes payable the current year;
(2) by county, city or town, school district, the sum of
the special taxing districts, and as a total of the taxing
authorities, including special taxing districts, the proposed
or, for a town, final net tax on the property for taxes payable
the following year and the actual tax for taxes payable the
current year; and
(3) the increase or decrease in the amounts in clause (2)
from taxes payable in the current year to proposed or, for a
town, final taxes payable the following year, expressed as a
dollar amount and as a percentage.
(f) The notice must clearly state that the proposed or
final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, school
district levy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified; and
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified.
Sec. 25. Minnesota Statutes 1988, section 275.065, is
amended by adding a subdivision to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city, county, or
school district shall advertise in a newspaper a notice of its
intent to adopt a budget and property tax levy or in the case of
a school district, a property tax levy, at a public hearing.
The notice must be published not less than two days nor more
than six days before the hearing.
The advertisement must be at least one-eighth page in size
of a standard-size or a tabloid-size newspaper, and the
headlines in the advertisement stating the notice of proposed
property taxes and the notice of public hearing must be in a
type no smaller than 24-point. The text of the advertisement
must be no smaller than 18-point, except that the property tax
amounts and percentages may be in 14-point type. The
advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The
advertisement must be published in an official newspaper of
general circulation in the taxing authority. The newspaper
selected must be one of general interest and readership in the
community, and not one of limited subject matter. The
advertisement must appear in a newspaper that is published at
least once per week.
(b) The advertisement must be in the following form, except
that the notice for a school district must not include
references to budget hearings or to adoption of a budget:
"NOTICE OF
PROPOSED PROPERTY TAXES
(City/County/School District) of .........
The governing body of ........ will soon hold budget hearings
and vote on the property taxes for (city/county services that
will be provided in 199-/school district services that will be
provided in 199- and 199-).
The property tax amounts below compare current
(city/county/school district) property taxes and the property
taxes that would be collected in 199- if the budget now being
considered is approved.
199- Proposed 199- 199- Increase
Property Taxes Property Taxes or Decrease
$........ $........ .....%
NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing
and express their opinions on the proposed (city/county/school
district) budget and property taxes. The hearing will be held
on (Month/Day/Year) at (Time) at (Location, Address).
A continuation of the hearing, if necessary, will be held on
(Month/Day/Year) at (Time) at (Location, Address).
Written comments may be directed to (Address)."
Sec. 26. Minnesota Statutes Second 1989 Supplement,
section 275.065, subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]
Between November 15 and December 20, the governing bodies of the
city and county shall each hold a public hearing to adopt its
final budget and property tax levy for taxes payable in the
following year, and the governing body of the school district
shall hold a public hearing to adopt its property tax levy for
taxes payable in the following year.
At the hearing, the taxing authority, other than a school
district, may amend the proposed budget and property tax levy
and must adopt a final budget and property tax levy, and the
school district may amend the proposed property tax levy and
must adopt a final property tax levy.
The adopted property tax levy certified under section
275.07 by a city, county, or school district must not exceed the
proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:
(1) the amount of a school district levy whose voters
approved a referendum to increase taxes under section 124A.03,
subdivision 2, or 124.82, subdivision 3, after the proposed levy
was certified;
(2) the amount of a city or county levy approved by the
voters under section 275.58 after the proposed levy was
certified;
(3) the amount of a levy to pay principal and interest on
bonds issued or approved by the voters under section 475.58
after the proposed levy was certified;
(4) the amount of a levy to pay costs due to a natural
disaster occurring after the proposed levy was certified, if
that amount is approved by the commissioner of revenue under
subdivision 6a; and
(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under subdivision 6a; and
(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of revenue or the
commissioner of education after the proposed levy was certified.
At the hearing the percentage increase in property taxes
proposed by the taxing authority, if any, and the specific
purposes for which property tax revenues are being increased
must be discussed. During the discussion, the governing body
shall hear comments regarding a proposed increase and explain
the reasons for the proposed increase. The public shall be
allowed to speak and to ask questions prior to adoption of any
measures by the governing body. The governing body, other than
the governing body school districts, shall adopt its final
property tax levy prior to adopting its final budget.
The hearing must be held after 5:00 p.m. if scheduled on a
day other than Saturday. No hearing may be held on a Sunday.
The commissioner of revenue county auditor shall provide for the
coordination of hearing dates so that a taxing authority does
not schedule public meetings on the days scheduled for the
hearing by another taxing authority for all taxing authorities
within the county.
By August 1, the county auditor shall notify the clerk of
each school district within the county of the dates that the
county board has designated for its hearing and any continuation
under subdivision 3. By August 15, each school board shall
certify to the county auditors of the counties in which the
school district is located the dates on which it elects to hold
its hearings and any continuations under subdivision 3. If a
school board does not certify the dates by August 15, the
auditor will assign the hearing date. The dates elected or
assigned must not conflict with the county hearing dates. By
August 20, the county auditor shall notify the clerks of the
cities within the county of the dates on which the county and
school districts have elected to hold their hearings. At the
time a city certifies its proposed levy under subdivision 1 it
shall certify the dates on which it elects to hold its hearings
and any continuations under subdivision 3. The city must not
select dates that conflict with those elected by or assigned to
the counties and school districts in which the city is located.
The hearing dates so elected or assigned must be designated
on the notices required under subdivision 3.
This subdivision does not apply to towns and special taxing
districts.
Sec. 27. Minnesota Statutes Second 1989 Supplement,
section 275.07, subdivision 1, is amended to read:
Subdivision 1. The taxes voted by cities, towns, counties,
school districts, and special districts shall be certified by
the proper authorities to the county auditor on or before five
working days after December 20 in each year. A town must
certify the levy adopted by the town board to the county auditor
by September 1 each year. If the town board modifies the levy
at a special town meeting after September 1, the town board must
recertify its levy to the county auditor on or before five
working days after December 20. The taxes certified shall not
be adjusted by the aid received under sections 273.1398,
subdivisions 2 and 3, and 477A.013, subdivision 5. If a city,
town, county, school district, or special district fails to
certify its levy by that date, its levy shall be the amount
levied by it for the preceding year.
Sec. 28. Minnesota Statutes Second 1989 Supplement,
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, except for the
equalization levies defined in section 273.1398, subdivision 2a,
paragraph (a), by the amount of homestead and agricultural
credit aid certified by section 273.1398, subdivision 2, reduced
by the amount under section 273.1398, subdivision 5a, and
equalization aid certified by section 477A.013, subdivision 5.
If a local government's 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 homestead and agricultural credit aid was
allocated is the levy or fund which must be adjusted.
Sec. 29. Minnesota Statutes 1988, section 275.125,
subdivision 10, is amended to read:
Subd. 10. [CERTIFICATION OF LEVY LIMITATIONS.] By August
15, the commissioner shall notify the school districts of their
levy limits. The commissioner shall certify to the county
auditors the levy limits for all school districts headquartered
in the respective counties together with adjustments for errors
in levies not penalized pursuant to subdivision 15 as well as
adjustments to final pupil unit counts.
A school district shall have the right to may require the
commissioner to review the certification and to present evidence
in support of modification of the certification.
The county auditor shall reduce levies for any excess of
levies over levy limitations pursuant to section 275.16. Such
reduction in excess levies may, at the discretion of the school
district, be spread over not to exceed two calendar years.
Sec. 30. Minnesota Statutes Second 1989 Supplement,
section 275.50, subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other law to the contrary for
taxes levied in 1989 1990 payable in 1990 1991 and subsequent
years, "special levies" means those portions of ad valorem taxes
levied by governmental subdivisions to:
(a) for taxes levied in 1990, payable in 1991 and
subsequent years, pay the costs not reimbursed by the state or
federal government, of payments made to or on behalf of
recipients of aid under any public assistance program authorized
by law, and the costs of purchase or delivery of social
services. The aggregate amounts levied under this clause for
the costs of purchase or delivery of social services and income
maintenance programs, other than those identified in section
273.1398, subdivision 1, paragraph (i), are subject to a maximum
increase over the amount levied for the previous year of 12
percent for counties within the metropolitan area as defined in
section 473.121, subdivision 2, or counties outside the
metropolitan area but containing a city of the first class, and
15 percent for other counties. For purposes of this clause,
"income maintenance programs" include income maintenance
programs in section 273.1398, subdivision 1, paragraph (i), to
the extent the county provides benefits under those programs
over the statutory mandated standards. Effective with taxes
levied in 1990, the portion of this special levy for human
service programs identified in section 273.1398, subdivision 1,
paragraph (i), is eliminated;
(b) pay the costs of principal and interest on bonded
indebtedness except on bonded indebtedness issued under section
471.981, subdivisions 4 to 4c, or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due
in the year preceding the year for which the levy limit is
calculated on municipal liquor store bonds;
(c) pay the costs of principal and interest on certificates
of indebtedness, except tax anticipation or aid anticipation
certificates of indebtedness, issued for any corporate purpose
except current expenses or funding an insufficiency in receipts
from taxes or other sources or funding extraordinary
expenditures resulting from a public emergency; and to pay the
cost for certificates of indebtedness issued pursuant to
sections 298.28 and 298.282;
(d) fund the payments made to the Minnesota state armory
building commission pursuant to section 193.145, subdivision 2,
to retire the principal and interest on armory construction
bonds;
(e) provide for the bonded indebtedness portion of payments
made to another political subdivision of the state of Minnesota;
(f) pay the amounts required, in accordance with section
275.075, to correct for a county auditor's error of omission but
only to the extent that when added to the preceding year's levy
it is not in excess of an applicable statutory, special law or
charter limitation, or the limitation imposed on the
governmental subdivision by sections 275.50 to 275.56 in the
preceding levy year;
(g) pay amounts required to correct for an error of
omission in the levy certified to the appropriate county auditor
or auditors by the governing body of a city or town with
statutory city powers in a levy year, but only to the extent
that when added to the preceding year's levy it is not in excess
of an applicable statutory, special law or charter limitation,
or the limitation imposed on the governmental subdivision by
sections 275.50 to 275.56 in the preceding levy year;
(h) pay amounts required by law to be paid to pay the
interest on and to reduce the unfunded accrued liability of
public pension funds in accordance with the actuarial standards
and guidelines specified in sections 356.215 and 356.216 reduced
by 106 percent of the amount levied for that purpose in 1976,
payable in 1977. For the purpose of this special levy, the
estimated receipts expected from the state of Minnesota pursuant
to sections 69.011 to 69.031 or any other state aid expressly
intended for the support of public pension funds shall be
considered as a deduction in determining the required levy for
the normal costs of the public pension funds. No amount of
these aids shall be considered as a deduction in determining the
governmental subdivision's required levy for the reduction of
the unfunded accrued liability of public pension funds;
(i) to compensate the state for the cost of a reassessment
ordered by the commissioner of revenue pursuant to section
270.16;
(j) pay the debt service on tax increment financing revenue
bonds to the extent that revenue to pay the bonds or to maintain
reserves for the bonds is insufficient as a result of the
provisions of Laws 1988, chapter 719, article 5;
(k) pay the cost of hospital care under section 261.21;
(l) pay the unreimbursed costs incurred in the previous
year to satisfy judgments rendered against the governmental
subdivision by a court of competent jurisdiction in any tort
action, or to pay the costs of settlements out of court against
the governmental subdivision in a tort action when substantiated
by a stipulation for the dismissal of the action filed with the
court of competent jurisdiction and signed by both the plaintiff
and the legal representative of the governmental subdivision,
provided that an appeal for the unreimbursed costs under this
clause was approved by the commissioner of revenue under section
275.51, subdivision 3;
(m) pay the expenses reasonably and necessarily incurred in
preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes such as earthquake, fire, flood, wind storm, wave
action, oil spill, water contamination, air contamination, or
drought in accordance with standards formulated by the emergency
services division of the state department of public safety,
provided that an appeal for the expenses incurred under this
clause were approved by the commissioner of revenue under
section 275.51, subdivision 3;
(n) pay a portion of the losses in tax receipts to a city
due to tax abatements or court actions in the year preceding the
current levy year, provided that an appeal for the tax losses
was approved by the commissioner of revenue under section
275.51, subdivision 3. This special levy is limited to the
amount of the losses times the ratio of the nonspecial levies to
total levies for taxes payable in the year the abatements were
granted. County governments are not authorized to claim this
special levy;
(o) pay the operating cost of regional library services
authorized under section 134.34, subject to a maximum increase
over the previous year of the greater of (1) 103 percent
multiplied by one plus the percentage increase determined for
the governmental subdivision under section 275.51, subdivision
3h, clause (b), or (2) six percent. If a governmental
subdivision elected to include some or all of its levy for
libraries within its adjusted levy limit base in the prior year,
but elects to claim the levy as a special levy in the current
levy year, the allowable increase is determined by applying the
greater percentage determined under clause (1) or (2) to the
total amount levied for libraries in the prior levy year. After
levy year 1989, the increase must not be determined using a base
amount other than the amount that could have been levied as a
special levy in the prior year. This limit may be redistributed
according to the provisions of section 134.342. In no event
shall the special levy be less than the minimum levy required
under sections 134.33 and 134.34, subdivisions 1 and 2;
(p) pay the amount of the county building fund levy
permitted under section 373.40, subdivision 6;
(q) pay the county's share of the costs levied in 1989,
1990, and 1991 for the Minnesota cooperative soil survey under
Minnesota Statutes 1988, section 40.07, subdivision 15;
(r) for taxes levied in 1989, payable in 1990 only, pay the
cost incurred for the minimum share required by counties levying
for the first time under section 134.34 as required under
section 134.341. For taxes levied in 1990, and thereafter,
counties levying under this provision must levy under clause
(o), and their allowable increase must be determined with
reference to the amount levied in 1989 under this paragraph;
(s) for taxes levied in 1989, payable in 1990 only, provide
an amount equal to 50 percent of the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990;
(t) for taxes levied in 1990 only by a county in the eighth
judicial district, provide an amount equal to the amount of the
levy, if any, that is required under Laws 1989, chapter 335,
article 3, section 54, subdivision 8;
(u) for taxes levied in 1989, payable in 1990 only, pay the
costs not reimbursed by the state or federal government:
(i) for the costs of purchase or delivery of social
services. The aggregate amounts levied under this item are
subject to a maximum increase over the amount levied in the
previous year of 12 percent for counties within the metropolitan
area as defined in section 473.121, subdivision 2, or counties
outside the metropolitan area but containing a city of the first
class, and 15 percent for other counties.
(ii) for payments made to or on behalf of recipients of aid
under any public assistance program authorized by law. The
aggregate amounts levied under this item are subject to a
maximum increase over the amount levied in the previous year of
12 percent and must be used only for the public assistance
programs; and.
If the amount levied under this paragraph (u) in 1989 is
less than the actual expenditures needed for these programs for
1990, the difference between the actual expenditures and the
amount levied may be levied in 1990 as a special levy. If the
amount levied in 1989 is greater than the actual expenditures
needed for these programs for 1990, the difference between the
amount levied and the actual expenditures shall be deducted from
the 1990 levy limit, payable in 1991;
(v) pay an amount of up to 25 percent of the money sought
for distribution and approved under section 115A.557,
subdivision 3, paragraph (b), clause (3).;
(w) pay the unreimbursed costs of per diem jail or
correctional facilities services paid by the county in the
previous 12-month period ending on July 1 of the current year
provided that the county is operating under a department of
corrections directive that limits the capacity of a county jail
as authorized in section 641.01 or 641.262, or a correctional
facility as defined in section 241.021, subdivision 1, paragraph
(5);
(x) for taxes levied in 1990 and 1991, payable in 1991 and
1992 only, pay the operating or maintenance costs of a county
jail as authorized in section 641.01 or 641.262, or of a
correctional facility as defined in section 241.021, subdivision
1, paragraph (5), to the extent that the county can demonstrate
to the commissioner of revenue that the amount has been included
in the county budget as a direct result of a rule, minimum
requirement, minimum standard, or directive of the department of
corrections. If the county utilizes this special levy, any
amount levied by the county in the previous levy year for the
purposes specified under this clause and included in the
county's previous year's levy limitation computed under section
275.51, shall be deducted from the levy limit base under section
275.51, subdivision 3f, when determining the county's current
year levy limitation. The county shall provide the necessary
information to the commissioner of revenue for making this
determination;
(y) for taxes levied in 1990, payable in 1991 only, pay an
amount equal to the unreimbursed county costs paid in 1989 and
1990 for the purpose of grasshopper control; and, for taxes
levied in 1991 payable in 1992 only, pay an amount equal to the
unreimbursed county costs paid in 1991 for the purpose of
grasshopper control;
(z) for a county, provide an amount needed to fund
comprehensive local water implementation activities under
sections 103B.3361 to 103B.3369 as provided in this clause.
A county may levy an amount not to exceed the water
implementation local tax rate times the adjusted net tax
capacity of the county for the preceding year. The water
implementation local tax rate shall be set by August 1 each year
by the commissioner of revenue for taxes payable in the
following year. As used in this paragraph, the "adjusted net
tax capacity of the county" means the net tax capacity of the
county as equalized by the commissioner of revenue based upon
the results of an assessment/sales ratio study. That rate shall
be the rate, rounded up to the nearest one-thousandth of a
percent, that, when applied to the adjusted net tax capacity for
all counties, raises the amount specified in this clause. The
water implementation local tax rate for taxes levied in 1990
shall be the rate that raises $1,500,000 and the rate for taxes
levied in 1991 shall be the rate that raises $1,500,000. A
county must levy a tax at the rate established under this clause
to qualify for a grant from the board of water and soil
resources under section 103B.3369, subdivision 5;
(aa) pay the unreimbursed county costs for court-ordered
family-based services and court-ordered out-of-home placement
for children to the extent that the county can demonstrate to
the commissioner of revenue that the estimated amount included
in the county's budget for the following levy year is for the
purposes specified under this clause. For purposes of this
special levy, costs for "family-based services" and "out-of-home
placement" means costs resulting from court-ordered targeted
family services designed to avoid out-of-home placement and from
court-ordered out-of-home placement under the provisions of
sections 260.172 and 260.191, which are unreimbursed by the
state or federal government, insurance proceeds, or parental or
child obligations. Any amount levied under this clause must
only be used by the county for the purposes specified in this
clause.
If the county uses this special levy and the county levied
an amount in the previous levy year, for the purposes specified
under this clause, under another special levy or under the levy
limitation in section 275.51, the following adjustments must be
made:
(i) The amount levied in the previous levy year for the
purposes specified under this clause under the levy limitation
in section 275.51 must be deducted from the levy limit base
under section 275.51, subdivision 3f when determining the
current year levy limitation.
(ii) The amount levied in the previous levy year, for the
purposes specified under clause (a) or clause (u) must be
deducted from the previous year's amount used to calculate the
maximum amount allowable under clause (a) in the current levy
year; and
(bb) pay the amounts allowed as special levies under Laws
1989, First Special Session chapter 1, article 5, section 50,
and this act.
If the amount levied in 1989 is less than the actual
expenditures needed for these programs for 1990, the difference
between the actual expenditures and the amount levied may be
levied in 1990 as a special levy. If the amount levied in 1989
is greater than the actual expenditures needed for these
programs for 1990, the difference between the amount levied and
the actual expenditures shall be deducted from the 1990 levy
limit, payable in 1991.
Sec. 31. Minnesota Statutes Second 1989 Supplement,
section 275.51, subdivision 3h, is amended to read:
Subd. 3h. [ADJUSTED LEVY LIMIT BASE.] For taxes levied in
1989 and thereafter, the adjusted levy limit base is equal to
the levy limit base computed pursuant to subdivision 3f,
increased by:
(a) three percent for taxes levied in 1989 and subsequent
years;
(b) a percentage equal to (1) one-half of the greater of
the percentage increases in population or in number of
households, if any, for cities and towns and (2) the lesser of
the percentage increase in population or the number of
households, if any, for counties, using figures derived pursuant
to subdivision 6;
(c) the amount of a permanent increase in the levy limit
base approved at a general or special election held during the
12-month period ending September 30 of the levy year under
section 275.58, subdivisions 1 and 2;
(d) for levy year 1989, for a county which incurred costs
since October 1978, for the litigation of federal land claims
under United States Code, title 18, section 1162; United States
Code, title 25, section 331; and United States Code, title 28,
section 1360; an amount of up to the actual costs incurred by
the county for this purpose. This adjustment shall not exceed
$250,000;
(e) for levy year 1989, an amount of $1,724,000 for Ramsey
county for implementing the local government pay equity act
under sections 471.991 to 471.999. Furthermore, in levy years
1990 and 1991, an additional amount of $862,000 shall be added
to Ramsey county's adjusted levy limit base under this clause
for each of the two years; and
(f) for levy year 1989, an amount equal to the decrease in
a county's 50 percent share of the powerline taxes extended
between taxes payable years 1988 and 1989 under section 273.42,
subdivision 1. The adjustment shall be determined by the
department of revenue.
For taxes levied in 1989, the adjusted levy limit base is
reduced by an amount equal to the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990.
For taxes levied in 1990, the adjusted levy limit base of a
city is reduced by an amount equal to the percent of the city's
revenue base used in determining aid reductions under section
477A.013, subdivision 7. For taxes levied in 1990, the adjusted
levy limit base of a county is reduced by one-half of the amount
equal to the percent of the county's revenue base used in
determining aid reductions under section 477A.012, subdivision 5.
Sec. 32. Minnesota Statutes Second 1989 Supplement,
section 275.51, subdivision 4, is amended to read:
Subd. 4. If the levy made by a governmental subdivision
exceeds the limitation provided in sections 275.50 to 275.56,
except when such excess levy is due to the rounding of the tax
capacity rates of the governmental subdivision in accordance
with section 275.28, subsequent distributions required to be
made by the commissioner of finance from any formula aids
pursuant to sections 477A.011 to 477A.014, or homestead and
agricultural credit aid under section 273.1398, or taconite aids
under sections 298.28 and 298.282 shall be reduced 33 cents for
each full dollar the levy exceeds the limitation. If a penalty
under this subdivision or section 275.55, subdivision 1, is
assessed against taconite aids, then the amount of the penalty
must be distributed as provided in section 298.28, subdivision
11, paragraph (a).
Sec. 33. Minnesota Statutes 1988, section 275.55, is
amended to read:
275.55 [STATE REVIEW AND REGULATION OF LEVIES.]
Subdivision 1. [REVIEW; PENALTIES FOR VIOLATIONS.] The
commissioner of revenue, or designees, shall establish
procedures by which levies of all governmental units shall be
periodically reviewed. The commissioner shall be empowered to
order withholding of state aids where such penalties are
authorized by law, to issue, in accordance with chapter 14,
rulings interpreting sections 275.50 to 275.56, and to take such
other administrative actions as the commissioner deems necessary
in order to carry out the provisions of sections 275.50 to
275.56. If the commissioner of revenue takes administrative
action or any other action authorized by this section to enforce
the provisions of sections 275.50 to 275.56, the commissioner
shall give written notice of such action to the governmental
subdivision affected. Such notice shall specify the actual or
impending violations by the governmental subdivision of sections
275.50 to 275.56 or the rules of the department of revenue
pertaining thereto, describe the corrective action required,
including, in the case of an excess levy, reduction of the
governmental subdivision's levy in the next succeeding levy year
in an amount equal to the amount of the excess levy, set a
reasonable period of time within which the governmental
subdivision shall correct the specified actual or impending
violations and caution the governmental subdivision that if the
specified correction is not made within the time allowed, the
state aids to the governmental subdivision pursuant to sections
477A.011 to 477A.014, or homestead and agricultural credit aid
pursuant to section 273.1398, or taconite aids pursuant to
sections 298.28 and 298.282, as amended, will be reduced as
provided in section 275.51, subdivision 4. The time period
first allowed for correction may be extended by the commissioner
if there is a reasonable basis for delay. County auditors, in
addition to duties otherwise provided by law, shall cooperate
with the commissioner in establishing such procedures and
enforcing the provisions of sections 275.50 to 275.56.
Subd. 2. [EXCESS LEVIES FOR 1992.] Notwithstanding the
provisions of subdivision 1, for a home rule charter city,
statutory city, or town that exceeds its payable 1992 levy
limitation determined under section 275.51, a penalty shall be
imposed consisting of a reduction in state aids payable to the
city or town in 1992. Notwithstanding the provisions of
subdivision 1, for a county that exceeds its payable 1992 levy
limitation determined under section 275.51, a penalty shall be
imposed consisting of a reduction in state aids payable to the
county in 1992. The amount of the penalty imposed on the
county, city, or town and the state aids affected shall be as
determined under section 275.51, subdivision 4.
Sec. 34. Minnesota Statutes Second 1989 Supplement,
section 276.04, subdivision 2, is amended to read:
Subd. 2. [CONTENTS OF TAX STATEMENTS.] (a) The treasurer
shall provide for the printing of the tax statements. The
commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The statement must contain a
tabulated statement of the dollar amount due to each taxing
authority from the parcel of real property for which a
particular tax statement is prepared. The dollar amounts due
the county, township or municipality and school district must be
separately stated. The amounts due other taxing districts, if
any, may be aggregated. The dollar amounts, including the
dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole
odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The statement shall include the following
sentence, printed in upper case letters in boldface print: "THE
STATE OF MINNESOTA DOES NOT RECEIVE ANY PROPERTY TAX REVENUES.
THE STATE OF MINNESOTA REDUCES YOUR PROPERTY TAX BY PAYING
CREDITS AND REIMBURSEMENTS TO LOCAL UNITS OF GOVERNMENT."
(b) The property tax statements for manufactured homes and
sectional structures taxed as personal property shall contain
the same information that is required on the tax statements for
real property.
(c) Real and personal property tax statements must contain
the following information in the order given in this paragraph.
The information must contain the current year tax information in
the right column with the corresponding information for the
previous year in a column on the left:
(1) the property's estimated market value as defined in
section 272.03, subdivision 8;
(2) the property's gross tax, calculated by multiplying the
property's gross tax capacity times the total tax capacity rate
and adding to the result the sum of the aids enumerated in
clause (3);
(3) a total of the following aids:
(i) education aids payable under chapters 124 and 124A;
(ii) local government aids for cities, towns, and counties
under chapter 477A; and
(iii) disparity reduction aid under section 273.1398;
(4) for homestead residential and agricultural properties,
the homestead and agricultural credit aid apportioned to the
property. This amount is obtained by multiplying the total tax
capacity rate by the difference between the property's gross and
net tax capacities under section 273.13. This amount must be
separately stated and identified as "homestead and agricultural
credit." For purposes of comparison with the previous year's
amount for the statement for taxes payable in 1990, the
statement must show the homestead credit for taxes payable in
1989 under section 273.13, and the agricultural credit under
section 273.132 for taxes payable in 1989;
(5) any credits received under sections 273.119; 273.123;
273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
473H.10; and
(6) the net tax payable in the manner required in paragraph
(a).
The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clauses (3)
and (4) that local governments will receive in the following
year. In the case of a county containing a city of the first
class, or a county that has adopted the provisions of Laws 1989,
First Special Session chapter 1, article 9, section 81, for
taxes levied in 1991, and for all counties for taxes levied in
1992 and thereafter, the commissioner must certify this amount
by September 1.
(d) For taxes payable in 1990, the commissioner shall
prescribe language notifying taxpayers that state aid dollars
were transferred from the city or town to the school district.
The language must notify taxpayers that the transfer results in
an increase in city or town taxes and a decrease in school taxes
that is unrelated to spending decisions of the city or town and
school district. The commissioner may prescribe that the amount
of the transfer be stated. The commissioner may provide that
the statement required under this clause be included as a
separate enclosure.
Sec. 35. Minnesota Statutes 1989 Supplement, 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 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 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,
(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 (1) the ratio for the
petitioner's property less five percentage points and (2) the
median ratio determined by the court. In order to receive
relief on the basis of discrimination, the petitioner must
establish the ratio of the assessor's estimated market value to
the actual fair market value for the property.
Sec. 36. Minnesota Statutes 1988, section 281.17, is
amended to read:
281.17 [PERIOD FOR REDEMPTION.]
The period of redemption for all lands sold to the state at
a tax judgment sale shall be three years from the date of sale
to the state of Minnesota if the land is within an incorporated
area unless it is: (a) nonagricultural homesteaded land as
defined in section 273.13, subdivision 22, (b) homesteaded
agricultural land as defined in section 273.13, subdivision 23,
paragraph (a), or (c) seasonal recreational land as defined in
section 273.13, subdivision 25, paragraph (d)(1) or (c)(4), in
which event the period of redemption is five years from the date
of sale to the state of Minnesota.
The period of redemption for homesteaded lands as defined
in section 273.13, subdivision 22, located in a targeted
neighborhood as defined in Laws 1987, chapter 386, article 6,
section 4, and sold to the state at a tax judgment sale is
two three years from the date of sale. The period of redemption
for other all lands located in a targeted neighborhood as
defined in Laws 1987, chapter 386, article 6, section 4, except
homesteaded lands as defined in section 273.13, subdivision 22,
and sold to the state at a tax judgment sale is one year from
the date of sale.
The period of redemption for all other lands sold to the
state at a tax judgment sale shall be five years from the date
of sale.
Sec. 37. Minnesota Statutes 1989 Supplement, section
282.01, subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATION; USE; EXCHANGE.] It is the
general policy of this state to encourage the best use of
tax-forfeited lands, recognizing that some lands in public
ownership should be retained and managed for public benefits
while other lands should be returned to private ownership. All
Parcels of land becoming the property of the state in trust
under the provisions of any law now existing or hereafter
enacted declaring the forfeiture of lands to the state for
taxes, shall be classified by the county board of the county
wherein such in which the parcels lie as conservation or
nonconservation. Such In making the classification shall be
made with consideration, among other things, to the board shall
consider the present use of adjacent lands, the productivity of
the soil, the character of forest or other growth, accessibility
of lands to established roads, schools, and other public
services, their peculiar suitability or desirability for
particular uses and the suitability of the forest resources on
the land for multiple use, sustained yield management. Such The
classification, furthermore, shall aid: to must encourage and
foster a mode of land utilization that will facilitate the
economical and adequate provision of transportation, roads,
water supply, drainage, sanitation, education, and recreation;
to facilitate reduction of governmental expenditures; to
conserve and develop the natural resources; and to foster and
develop agriculture and other industries in the districts and
places best suited thereto to them.
In making such the classification the county board may make
use of such data and information as may be made available by any
office or department of the federal, state, or local
governments, or by any other person or agency
possessing pertinent information pertinent thereto at the time
such the classification is made. Such The lands may be
reclassified from time to time as the county board may deem
consider necessary or desirable, except as to for conservation
lands held by the state free from any trust in favor of any
taxing district.
If any such the lands are located within the boundaries
of any an organized town, with taxable valuation in excess of
$20,000, or incorporated municipality, the classification or
reclassification and sale shall must first be approved by the
town board of such the town or the governing body of such the
municipality insofar as in which the lands are located therein
are concerned. The town board of the town or the governing body
of the municipality will be deemed is considered to have
approved the classification or reclassification and sale if the
county board is not notified of the disapproval of the
classification or reclassification and sale within 90 days of
the date the request for approval was transmitted to the town
board of the town or governing body of the municipality. If the
town board or governing body desires to acquire any parcel lying
in the town or municipality by procedures authorized in this
subdivision, it shall, within 90 days of the request for
classification or reclassification and sale, must file a written
application with the county board to withhold the parcel from
public sale. The application must be filed within 90 days of
the request for classification or reclassification and sale.
The county board shall then withhold the parcel from public sale
for one year.
Subd. 1a. [CONVEYANCE; GENERALLY.] Any Tax-forfeited lands
may be sold by the county board to any an organized or
incorporated governmental subdivision of the state for any
public purpose for which such the subdivision is authorized to
acquire property or may be released from the trust in favor of
the taxing districts upon on application of any a state agency
for any an authorized use at not less than their value as
determined by the county board. The commissioner of revenue may
convey by deed in the name of the state any a tract of
tax-forfeited land held in trust in favor of the taxing
districts, to any a governmental subdivision for any an
authorized public use, provided that if an application is
submitted to the commissioner with which includes a statement of
facts as to the use to be made of the tract and the need
therefor and the recommendation of the county board.
Subd. 1b. [CONVEYANCE; TARGETED NEIGHBORHOOD LANDS.] (a)
Notwithstanding subdivision 1a, in the case of tax-forfeited
lands located in a targeted neighborhood, as defined in section
469.201, subdivision 10, outside the metropolitan area, as
defined in section 473.121, subdivision 2, the commissioner of
revenue shall may convey by deed in the name of the state any
tract of tax-forfeited land held in trust in favor of the taxing
districts, to a political subdivision that submits an
application to the commissioner of revenue and the
recommendation of the county board.
(b) Notwithstanding subdivision 1a, in the case of
tax-forfeited lands located in a targeted neighborhood, as
defined in section 469.201, subdivision 10, in a county in the
metropolitan area, as defined in section 473.121, subdivision 2,
the commissioner of revenue shall convey by deed in the name of
the state any tract of tax-forfeited land held in trust in favor
of the taxing districts, to a political subdivision that submits
an application to the commissioner of revenue and the county
board.
(c) The application under paragraph (a) or (b) must include
a statement of facts as to the use to be made of the tract, the
need therefor, and a resolution, adopted by the governing body
of the political subdivision, finding that the conveyance of a
tract of tax-forfeited land to the political subdivision is
necessary to provide for the redevelopment of land as productive
taxable property.
Subd. 1c. [DEED OF CONVEYANCE.] The deed of
conveyance shall must be upon on a form approved by the attorney
general and shall must be conditioned upon on continued use for
the purpose stated in the application, provided, however, that.
If, however, the governing body of such the governmental
subdivision by resolution determines that some other public use
shall should be made of such the lands, and such the change
of use is approved by the county board and an application
for such change of use is made to, and approved by, the
commissioner, such the changed use may be made of such lands
without the necessity of the governing body conveying the lands
back to the state and securing a new conveyance from the state
to the governmental subdivision for such the new public use.
Subd. 1d. [FAILURE TO USE; CONVEYANCE TO STATE.] Whenever
any When a governmental subdivision to which any tax-forfeited
land has been conveyed for a specified public use as provided in
this section shall fail fails to put such the land to such
that use, or to some other authorized public use as
provided herein in this section, or shall abandon such abandons
that use, the governing body of the subdivision shall authorize
the proper officers to convey the same land, or such portion
thereof the part of the land not required for an authorized
public use, to the state of Minnesota, and such. The officers
shall execute a deed of such conveyance forthwith, which
immediately. The conveyance shall be is subject to the approval
of the commissioner and in its form must be approved by the
attorney general, provided, however, that. A sale, lease,
transfer, or other conveyance of such tax-forfeited lands by a
housing and redevelopment authority, a port authority, an
economic development authority, or a city as authorized by
chapter 469 shall not be is not an abandonment of such use and
such the lands shall not be reconveyed to the state nor shall
they revert to the state. A certificate made by a housing and
redevelopment authority, a port authority, an economic
development authority, or a city referring to a conveyance by it
and stating that the conveyance has been made as authorized by
chapter 469 may be filed with the county recorder or registrar
of titles, and the rights of reverter in favor of the state
provided by this subdivision 1e will then terminate. No vote of
the people shall be is required for such the conveyance.
Subd. 1e. [REVERSION.] In case any such If the
tax-forfeited land shall is not be so conveyed to the state in
accordance with subdivision 1d, the commissioner of revenue
shall by written instrument, in form approved by the attorney
general, declare the same land to have reverted to the state,
and shall serve a notice thereof of reversion, with a copy of
the declaration, by certified mail upon the clerk or recorder of
the governmental subdivision concerned, provided, that. No
declaration of reversion shall be made earlier than five years
from the date of conveyance for failure to put such land to such
the use specified or from the date of abandonment of such that
use if such the lands have been put to such that use. The
commissioner shall file the original declaration in the
commissioner's office, with verified proof of service as herein
required. The governmental subdivision may appeal to the
district court of the county in which the land lies by filing
with the court administrator a notice of appeal, specifying the
grounds of appeal and the description of the land involved,
mailing a copy thereof of the notice of appeal by certified mail
to the commissioner of revenue, and filing a copy thereof for
record with the county recorder or registrar of titles, all
within 30 days after the mailing of the notice of reversion.
The appeal shall be tried by the court in like manner as a civil
action. If no appeal is taken as herein provided in this
subdivision, the declaration of reversion shall be is final.
The commissioner of revenue shall file for record with the
county recorder or registrar of titles, of the county within
which the land lies, a certified copy of the declaration of
reversion and proof of service.
Subd. 1f. [EXCHANGE.] Any A city of the first class now or
hereafter having with a population of 450,000, or over, or its
board of park commissioners, which has acquired tax-forfeited
land for a specified public use pursuant to the terms of under
this section, may convey said the land in exchange for other
land of substantially equal worth located in said the city of
the first class, provided that. The land conveyed to said the
city of the first class now or hereafter having a population of
450,000, or over, or its board of park commissioners, in
exchange shall be is subject to the public use and reversionary
provisions of this section;. The tax-forfeited land so conveyed
shall is thereafter be free and discharged from the public use
and reversionary provisions of this section, provided that
said. The exchange shall in no way affect the mineral or
mineral rights of the state of Minnesota, if any, in the
lands so exchanged.
Sec. 38. Minnesota Statutes 1989 Supplement, 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
$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 include the social security
number of the applicant. The social security number is private
data on individuals as defined by section 13.02, subdivision
12. 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. No reduction, abatement, or
refund of any special assessments made or levied by any
municipality for local improvements shall be made unless it is
also approved by the board of review or similar taxing authority
of the municipality. Before taking action on any reduction or
abatement where the reduction of taxes, costs, penalties, and
interest exceed $10,000, the county board shall give 20 days'
notice to the school board and the municipality in which the
property is located. The notice must describe the property
involved, the actual amount of the reduction being sought, and
the reason for the reduction. If the school board or the
municipality object to the granting of the reduction or
abatement, the county board must refer the abatement or
reduction to the commissioner of revenue with its
recommendation. The commissioner shall consider the abatement
or reduction under section 270.07, subdivision 1.
An appeal may not be taken to the tax court from any order
of the county board made in the exercise of the discretionary
authority granted in this section.
Sec. 39. Minnesota Statutes 1989 Supplement, section
462.396, subdivision 2, is amended to read:
Subd. 2. On or before August 20 each year, 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 each year, 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 the tax,
which shall be an amount bearing the same proportion to the
total levy agreed on by the commission as the net tax capacity
of the county bears to the net tax capacity of the region. For
taxes levied in 1990 and thereafter, the maximum amount amounts
of any levy levies made for the purposes of sections 462.381 to
462.398 shall not exceed 0.00403 percent of market value on all
taxable property in the region. are the following amounts, less
the sum of regional planning grants from the state planning
agency to that region: for Region 1, $180,337; for Region 2,
$150,000; for Region 3, $353,110; for Region 5, $195,865; for
Region 6E, $197,177; for Region 6W, $150,000; for Region 7E,
$158,653; for Region 8, $206,107; for Region 9, $343,572. 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 the taxes with the
commission in the same manner as other taxes are distributed to
political subdivisions.
Sec. 40. Minnesota Statutes 1988, section 469.059,
subdivision 11, is amended to read:
Subd. 11. [PROCEDURE.] Tax-forfeited lands in an
industrial development district that are vested in the state
shall be conveyed to the port authority that is developing the
district for one dollar per tract. The port authority may use
and later resell the land for purposes of sections 469.048 to
469.068.
In conveying tax-forfeited land to a port authority, the
state may not retain a possibility of reverter or right of
reentry as it does under section 282.01, subdivision 1 1e.
The commissioner of revenue shall convey tax-forfeited
parcels in an industrial development district to the port
authority, if the authority petitions for conveyance under
sections 469.048 to 469.068 and pays one dollar per tract.
The attorney general shall approve the form of the deed of
conveyance. The port authority shall receive absolute title to
the tract, subject only to a reservation of minerals and mineral
rights, under section 282.12. The deed of conveyance must not
contain a restriction on the use of the premises. The
conveyance divests the state of all further right, title, claim
or interest in the tracts, except for the reservation of
minerals and mineral rights.
Sec. 41. Minnesota Statutes Second 1989 Supplement,
section 469.171, subdivision 7a, is amended to read:
Subd. 7a. [PROPERTY TAX CREDIT; APPROPRIATION.] There is
annually appropriated from the general fund to the commissioner
of revenue the amounts required to reimburse taxing
jurisdictions for the revenue lost due to the property tax
credit provided in subdivision 1, clause (4). Payment shall be
made to taxing jurisdictions in the same proportion that the ad
valorem tax is distributed. Payment shall be made to taxing
jurisdictions, other than school districts, at the times time
provided in section 477A.015 473H.10, subdivision 3.
Sec. 42. Minnesota Statutes Second 1989 Supplement,
section 473H.10, subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF TAX; STATE REIMBURSEMENT.] (a)
After having determined the market value of all land valued
according to subdivision 2, the assessor shall compute the gross
tax capacity of those properties by applying the appropriate
classification percentages. When computing the rate of tax
pursuant to section 275.08, the county auditor shall include the
gross tax capacity of land as provided in this clause.
(b) The county auditor shall compute the tax on lands
valued according to subdivision 2 and nonresidential buildings
by multiplying the gross tax capacity times the total rate of
tax for all purposes as provided in clause (a).
(c) The county auditor shall then compute the maximum ad
valorem property tax on lands valued according to subdivision 2
and nonresidential buildings by multiplying the gross tax
capacity times 105 percent of the previous year's statewide
average tax capacity rate levied on property located within
townships for all purposes.
(d) The tax due and payable by the owner of preserve land
valued according to subdivision 2 and nonresidential buildings
will be the amount determined in clause (b) or (c), whichever is
less. If the gross tax in clause (c) is less than the gross tax
in clause (b), the state shall reimburse the taxing
jurisdictions for the amount of difference. Residential
buildings shall continue to be valued and classified according
to the provisions of sections 273.11 and 273.13, as they would
be in the absence of this section, and the tax on those
buildings shall not be subject to the limitation contained in
this clause.
The county may transfer money from the county conservation
account created in section 40A.152 to the county revenue fund to
reimburse the fund for the tax lost as a result of this
subdivision or to pay taxing jurisdictions within the county for
the tax lost. The county auditor shall certify to the
commissioner of revenue on or before June 1 the total amount of
tax lost to the county and taxing jurisdictions located within
the county as a result of this subdivision and the extent that
the tax lost exceeds funds available in the county conservation
account. Payments Payment shall be made by the state at the
times provided in section 477A.015 on December 15 to each of the
affected taxing jurisdictions, other than school districts, in
the same proportion that the ad valorem tax is distributed if
the county conservation account is insufficient to make the
reimbursement. There is annually appropriated from the
Minnesota conservation fund under section 40A.151 to the
commissioner of revenue an amount sufficient to make the
reimbursement provided in this subdivision. If the amount
available in the Minnesota conservation fund is insufficient,
the balance that is needed is appropriated from the general fund.
Sec. 43. Minnesota Statutes Second 1989 Supplement,
section 477A.013, subdivision 6, is amended to read:
Subd. 6. [AID ADJUSTMENT.] For calendar year 1990, there
shall be an amount equal to 3.4 percent of the town's or city's
adjusted net tax capacity computed using the net class rates for
taxes payable in 1990 and equalized market values as defined in
section 273.1398, subtracted from the aid amounts computed under
subdivision 1, in the case of towns, and under subdivisions 3
and 5 in the case of cities. For cities, the subtraction will
be made first from the aid computed under subdivision 3. If the
subtraction amount under this section is greater than the aid
amount computed under subdivision 3, the remaining amount will
be subtracted from the aid computed under subdivision 5. The
resulting amounts shall be the town's local government aid or
the city's local government aid and equalization aid for
calendar year 1990. The local government aid and equalization
aid amount for any city or town cannot be less than zero. If
the subtraction amount under this section is greater than the
amount for any town or city computed under subdivisions 1, 3,
and 5, the remaining amount shall be subtracted from the town's
or city's homestead and agricultural credit aid under section
273.1398, subdivision 2.
For purposes of this subdivision, "adjusted net tax
capacity" means the city's total net tax capacity using the net
class rates for taxes payable in 1990 and equalized market
values as defined in section 273.1398, as adjusted for the
contributions and distributions required by chapter 473F in the
case of a city or town located within the metropolitan area and
less the captured value in any tax increment district.
An increase in a city's property tax levy for taxes payable
in 1990 attributable to the amount deducted from the city's aids
under this subdivision is exempt from the city's per capita levy
limit under section 275.11 and, from the city's percentage of
market value levy limit under section 412.251 or 426.04, and
from any limitation on levies under a city charter.
Sec. 44. Laws 1989, chapter 326, article 3, section 49, is
amended to read:
Sec. 49. [EFFECTIVE DATE.]
Section 9 is effective July 1, 1989, but a well
notification is not required to be filed with the commissioner
for construction of a well until after December 31, 1989.
Section 14 relating to disclosing wells to buyers and
transferees is effective July 1, 1990, on lands other than
tax-forfeited lands, and is effective July 1, 1991, on
tax-forfeited lands.
Section, Sections 31, 32, and 33 are effective July 1,
1990, and limited well contractor licenses and limited well
sealing licenses may not be issued until after that date.
Sections 24 and 33 relating to permits required for
elevator shafts and elevator shaft contractor licenses are
effective July 1, 1990.
Sec. 45. Laws 1989, chapter 353, section 13, is amended to
read:
Sec. 13. [EFFECTIVE DATE.]
This act is effective July 1, 1989. Sections 6 and 9 apply
to state land and tax-forfeited land sold after March 15, 1990
1991.
Sec. 46. [ASSESSMENT OF MANUFACTURED HOME PARKS.]
Subdivision 1. [LIMITED VALUATION INCREASE.] (a)
Notwithstanding Minnesota Statutes, section 273.11, or any other
law to the contrary, the estimated market value of a
manufactured home park, as defined in section 327.14,
subdivision 3, and assessed under section 273.13, subdivision
25, for taxes levied in 1990, may not exceed 133-1/3 percent of
its estimated market value for taxes levied in 1989 as limited
by Laws 1989, First Special Session chapter 1, article 3,
section 32, subdivision 1. The excess market value must be
entered equally in the next two succeeding assessment years.
(b) This subdivision does not apply to increases in value
attributable to improvements made to the real estate since the
January 2, 1989, assessment. It does not apply to property
becoming subject to taxation since the January 2, 1989,
assessment. The limitation in this subdivision applies to any
increase in valuation imposed by the local boards of review
under section 274.01, the county boards of equalization under
section 274.13, and the state board of equalization and the
commissioner of revenue under sections 270.11, 270.12, and
270.16.
Subd. 2. [NOTICE TO PROPERTY OWNER.] (a) If an assessor
has increased the estimated market value of property over that
allowed in subdivision 1, the assessor must reduce the estimated
market value to the amount allowed under subdivision 1.
(b) If an assessor has notified owners of property subject
to subdivision 1 of an increase in estimated market value for
taxes payable in 1991, the assessor must mail notice to the
property owners by July 1, 1990. The notice must state that any
increase in the estimated market value of manufactured home park
land for taxes levied in 1990 over that for taxes levied in 1989
has been limited by this act.
Sec. 47. Laws 1989, First Special Session chapter 1,
article 5, section 52, is amended to read:
Sec. 52. [EFFECTIVE DATE.]
Except as otherwise provided, sections 12 to 19, 27, 35,
45, and 47 are effective for taxes levied in 1989, payable in
1990 and subsequent years. Section 49 is effective upon
approval by the Itasca county board for taxes levied in 1988,
payable in 1989 only. Sections 1, 5, 6, 20, 31, 34, 41, 44, and
51 are effective for taxes levied by cities and towns in 1991,
payable in 1992 and thereafter, and for taxes levied by counties
in 1992, payable in 1993 and thereafter. Sections 2, 4, 7, 9 to
11, 21 to 26, 28 to 30, 32, 33, 36 to 40, 42, and 43 are
effective for taxes levied in 1991 1992, payable in 1992 1993,
and thereafter. Sections 3 and 8 are effective for taxes levied
in 1992, payable in 1993 and thereafter. Section 50 is
effective for taxes payable in 1989 and 1990 only.
Sec. 48. Laws 1990, chapter 480, article 8, section 18, is
amended to read:
Sec. 18. [EFFECTIVE DATE.]
Sections 1 to 8, 10, and 14 15 are effective for taxes
levied in 1989, payable in 1990, and thereafter.
Sections 9, 11 to 13, 15 14, and 16 are effective January
1, 1991.
Section 17 is effective the day following final enactment.
Sec. 49. [CITY OF BAYPORT; LIBRARY LEVY.]
Subdivision 1. [LEVY AUTHORIZED.] Notwithstanding the
limit in Minnesota Statutes, section 275.50, subdivision 5,
clause (o), for taxes levied in 1990, payable in 1991, the city
of Bayport may levy $156,158 to pay operating costs of the city
library. This amount is not subject to the limitations in
Minnesota Statutes, sections 275.50 to 275.56. For taxes levied
in 1991 and thereafter, payable in 1992 and thereafter, the city
may levy as a special levy the amount authorized under Minnesota
Statutes, section 275.50, subdivision 5, clause (o). For
purposes of determining the maximum levy increase under that
section, the amount levied in 1990, payable in 1991, shall be
the base amount.
Subd. 2. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
effective the day after approval by the governing body of the
city of Bayport and its compliance with Minnesota Statutes,
section 645.021, subdivision 3.
Subd. 3. [REVERSE REFERENDUM.] If the Bayport city council
intends to exercise the authority provided by this section in
subsequent years, it shall pass a resolution stating the fact
before January 1, 1991. The resolution must be published for
two successive weeks in the official newspaper of the city or,
if there is no official newspaper, in a newspaper of general
circulation in the city, together with a notice fixing a date
for a public hearing on the matter. The hearing must be held at
least two weeks but not more than four weeks after the first
publication of the resolution. Following the public hearing,
the city may determine to take no further action or adopt a
resolution confirming its intention to exercise the authority.
That resolution must also be published in the official newspaper
of the city or, if there is no official newspaper, in a
newspaper of general circulation in the city. If within 30 days
after publication of the resolution a petition signed by voters
equal in number to five percent of the votes cast in the city in
the last general election requesting a vote on the proposed
resolution is filed with the county auditor, the resolution is
not effective until it has been submitted to the voters at a
general or special election and a majority of votes cast on the
question of approving the resolution are in the affirmative.
The commissioner of revenue shall prepare a suggested form of
question to be presented at the election. The referendum must
be held at a special or general election before December 1, 1991.
Sec. 50. [GOODHUE COUNTY; HISTORICAL SOCIETY LEVY.]
Subdivision 1. [LEVY AUTHORIZED.] For taxes levied in 1990
and 1991, payable in 1991 and 1992, Goodhue county may levy up
to $225,000 each year on property in the county and use the
proceeds of the levy for the county historical society. This
amount is not subject to the limitations in Minnesota Statutes,
sections 275.50 to 275.56.
Subd. 2. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
effective the day after approval by the Goodhue county board and
its compliance with Minnesota Statutes, section 645.021,
subdivision 3.
Subd. 3. [REVERSE REFERENDUM.] If the Goodhue county board
intends to exercise the authority provided by this section in
subsequent years, it shall pass a resolution stating the fact
before January 1, 1991. The resolution must be published for
two successive weeks in the official newspaper of the county or,
if there is no official newspaper, in a newspaper of general
circulation in the county, together with a notice fixing a date
for a public hearing on the matter. The hearing must be held at
least two weeks but not more than four weeks after the first
publication of the resolution. Following the public hearing,
the county may determine to take no further action or adopt a
resolution confirming its intention to exercise the authority.
That resolution must also be published in the official newspaper
of the county or, if there is no official newspaper, in a
newspaper of general circulation in the county. If within 30
days after publication of the resolution a petition signed by
voters equal in number to five percent of the votes cast in the
county in the last general election requesting a vote on the
proposed resolution is filed with the county auditor, the
resolution is not effective until it has been submitted to the
voters at a general or special election and a majority of votes
cast on the question of approving the resolution are in the
affirmative. The commissioner of revenue shall prepare a
suggested form of question to be presented at the election. The
referendum must be held at a special or general election before
December 1, 1991.
Sec. 51. [CITY OF WINDOM; HOSPITAL LEVY.]
Subdivision 1. [LEVY AUTHORIZED.] For taxes levied in 1990
and 1991, payable in 1991 and 1992, the city of Windom may levy
an amount up to $50,000 each year to meet the operating costs of
the operating deficit of the municipal hospital. The annual
amount levied under this section shall not exceed the amount
needed to meet the cost of the operating deficit of the
hospital. This amount is not subject to the limitations in
Minnesota Statutes, sections 275.50 to 275.56.
Subd. 2. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
effective the day after approval by the governing body of the
city of Windom and its compliance with Minnesota Statutes,
section 645.021, subdivision 3.
Subd. 3. [REVERSE REFERENDUM.] If the Windom city council
intends to exercise the authority provided by this section in
subsequent years, it shall pass a resolution stating the fact
before January 1, 1991. The resolution must be published for
two successive weeks in the official newspaper of the city or,
if there is no official newspaper, in a newspaper of general
circulation in the city, together with a notice fixing a date
for a public hearing on the matter. The hearing must be held at
least two weeks but not more than four weeks after the first
publication of the resolution. Following the public hearing,
the city may determine to take no further action or adopt a
resolution confirming its intention to exercise the authority.
That resolution must also be published in the official newspaper
of the city or, if there is no official newspaper, in a
newspaper of general circulation in the city. If within 30 days
after publication of the resolution a petition signed by voters
equal in number to five percent of the votes cast in the city in
the last general election requesting a vote on the proposed
resolution is filed with the county auditor, the resolution is
not effective until it has been submitted to the voters at a
general or special election and a majority of votes cast on the
question of approving the resolution are in the affirmative.
The commissioner of revenue shall prepare a suggested form of
question to be presented at the election. The referendum must
be held at a special or general election before December 1, 1991.
Sec. 52. [KOOCHICHING COUNTY; AMBULANCE SERVICE LEVY.]
For taxes levied in 1990, payable in 1991, and thereafter,
Koochiching County may levy to pay the costs of ambulance
service in a county subordinate service district under Minnesota
Statutes, section 375B.09. This amount is not subject to the
limitations in Minnesota Statutes, sections 275.50 to 275.56.
Sec. 53. [DOUGLAS COUNTY; SOLID WASTE MANAGEMENT LEVY.]
For taxes levied in 1990, payable in 1991, and thereafter,
Douglas county may levy the amount necessary to pay the
principal and interest on department of energy and economic
development loans made to the Pope-Douglas solid waste board on
June 10, 1985, and June 15, 1986, for solid waste management
purposes. The levy must be made as provided under Minnesota
Statutes, section 400.11.
This amount is not subject to the limitations in Minnesota
Statutes, sections 275.50 to 275.56.
If the county utilizes this levy, and any part of the
amount levied by the county in the previous levy year for the
purposes specified under this section was included in the
county's previous year's levy limitation computed under section
275.51, that amount must be deducted from the levy limit base
under section 275.51, subdivision 3f, when determining the
county's current year levy limitation. The county shall provide
the necessary information to the commissioner of revenue for
making this determination.
The levy authority under this section expires when the
principal and interest has been paid.
Sec. 54. [MILLE LACS COUNTY; SPECIAL LEVY.]
For taxes levied in 1990, payable in 1991 only, Mille Lacs
county may levy an amount equal to the expenditures from reserve
funds used in 1990 to pay social service costs. The county must
provide evidence to the commissioner of revenue that
expenditures from reserve funds were made for this purpose.
This levy may not exceed $694,000. This levy is not subject to
the levy limitations in Minnesota Statutes, sections 275.50 to
275.56.
Sec. 55. [BECKER COUNTY; SPECIAL LEVY.]
For taxes levied in 1990, payable in 1991 only, Becker
county may levy an amount equal to expenditures it made from
reserve funds in calendar years 1987 and 1988. For purposes of
this section, the reserves used in calendar year 1987 shall
include money received under the federal revenue sharing program
from previous years. This levy may not exceed $900,000. The
county must provide evidence to the commissioner of revenue that
it was eligible for a levy limit base adjustment for taxes
levied in 1988 for use of reserve funds under Minnesota
Statutes, section 275.51, subdivision 3j and did not receive the
adjustment. This levy is not subject to the levy limitations in
Minnesota Statutes, sections 275.50 to 275.56.
Sec. 56. [GOODHUE COUNTY; SPECIAL LEVY.]
For taxes levied in 1990, payable in 1991 only, Goodhue
county may levy an amount equal to the reduction to its levy
limit base, for taxes levied in 1989, under Minnesota Statutes
Second 1989 Supplement, section 275.51, subdivision 3f,
paragraph (i). This levy is not subject to the levy limitations
in Minnesota Statutes, sections 275.50 to 275.56.
Sec. 57. [BONDS AUTHORIZED.]
Subdivision 1. The governing body of the city of Bemidji
or Beltrami county may sell and issue general obligation bonds
or revenue bonds of the city or the county, respectively, to
finance the construction and betterment of an airport terminal
and other air navigation facilities as defined in Minnesota
Statutes, section 360.013, or of other related facilities,
including hangars, repair shops and other buildings, and
equipment needed for the storage, repair, reconstruction, and
servicing of aircraft. The bonds may be issued by the city or
the county on its own behalf with the consent of both parties,
or with the consent of the other on behalf of both of them. The
bonds must be issued, sold and secured in accordance with
Minnesota Statutes, chapter 475, except as provided in
subdivisions 2 and 3. The facilities to be financed by the
bonds are a public convenience from which a revenue is derived,
and are not indebtedness under chapter 475 or any city charter.
Subd. 2. The aggregate principal amount of all bonds
issued by the city or the county under this section which are
outstanding and undischarged at any time shall not exceed
$400,000.
Subd. 3. If either the city or the county issues bonds on
behalf of both of them, the entity not issuing the bonds may
levy ad valorem taxes on all taxable property within its
corporate limits to pay the principal of and interest on the
bonds as agreed upon before their issuance, and may irrevocably
appropriate the collections of the taxes to the sinking fund
established by the issuing entity for the payment of the bonds.
The entity issuing the bonds may levy ad valorem taxes on all
taxable property within its corporate limits for the years and
in the amounts that, together with any taxes levied and
appropriated by the nonissuing entity, will meet the
requirements of Minnesota Statutes, section 475.61. Neither the
taxes nor any additional taxes levied to eliminate any
deficiencies in the collection thereof are subject to any
limitation established by general or special law or charter as
to rate or amount. The taxes may not be considered in
determining the amount of any other taxes which may be levied
subject to any such limitation.
Subd. 4. (a) After approval of a bond issue under
subdivision 1 or the first approval of a tax levy to pay bond
obligations under subdivision 3, the governing body of the city
for a city action or the county for a county action shall
publish notice of the action in its official publication. The
bonds may be issued and sold or the tax levied without
submitting the question to the voters, unless within 30 days
after the date of publication a petition signed by qualified
voters equal to five percent of the voters who voted in the last
general election in the governmental subdivision is filed with
the city or the county.
(b) If a petition is filed that meets the requirements of
paragraph (a), the bonds may be issued or the tax levied upon
obtaining the approval of a majority of the voters voting on the
question at a special or regular election.
Sec. 58. [RAMSEY COUNTY; AUTHORIZATION FOR BONDS.]
Ramsey county may issue general obligation bonds in one or
more series in an amount not to exceed $2,000,000, in the
aggregate, to finance the restoration of the concourse of the
St. Paul union depot as a facility for the arts and sciences,
the proceeds of which may not be used for that purpose until
$500,000 in operational funding has been committed by other
sources. The bonds shall be issued pursuant to Minnesota
Statutes, chapter 475, except that the bonds shall not be
subject to its election requirements or debt limits. They shall
not be subject to any other debt or tax levy limitations
applicable to the county and shall not be considered in
calculating amounts subject to any other debt or tax levy
limitations. Levies by the county for debt servicing payment
for the retirement of the bonds shall be exempt from and
disregarded in the calculation of all tax levy limitations
applicable to the county.
Sec. 59. [ROSEMOUNT; ARMORY LEVY.]
Subdivision 1. [ARMORY LEVY.] The city of Rosemount in
Dakota county may levy not more than $95,000 per year and
otherwise incur debt obligations under Minnesota Statutes,
chapter 193 or 475 or both, to acquire and better an armory and
to be serviced by the levy without regard to the limits on debt
service and debt otherwise provided by chapter 193 or 475. This
levy amount shall be a special levy under Minnesota Statutes,
section 275.50, subdivision 5, clause (d).
Subd. 2. [REVERSE REFERENDUM.] If the city council
proposes to pay the obligation under subdivision 1, it shall
pass a resolution stating that fact. Thereafter, the resolution
shall be published for two successive weeks in the official
newspaper of the city or, if there is no official newspaper, in
a newspaper of general circulation in the city, together with a
notice fixing a date for a public hearing on the matter. The
hearing shall be held not less than two weeks nor more than four
weeks after the first publication of the resolution. Following
the public hearing, the city may determine to take no further
action or adopt a resolution confirming its intention to
exercise the authority. That resolution shall also be published
in the official newspaper or, if there is no official newspaper,
in a newspaper of general circulation in the city. If within 30
days thereafter a petition signed by voters equal in number to
ten percent of the votes cast in the city in the last general
election requesting a referendum on the proposed resolution is
filed with the county auditor, the resolution shall not be
effective until it has been submitted to the voters at a general
or special election and a majority of votes cast on the question
of approving the resolution are in the affirmative. The
commissioner of revenue shall prepare a suggested form of
question to be presented at the referendum. The referendum must
be held at a special or general election prior to January 1,
1992.
Sec. 60. [JOINT POWERS LEVY; DRUG ENFORCEMENT.]
Notwithstanding Minnesota Statutes, sections 275.50 to
275.56, the cities of Maple Grove, Brooklyn Park, Brooklyn
Center, and Coon Rapids may each levy for taxes levied in 1990,
and thereafter, an amount up to $2 per capita to pay the costs
incurred under a joint powers agreement for the salaries and
benefits of peace officers whose primary responsibilities are to
investigate controlled substance crimes under chapter 152 or to
teach drug abuse resistance education curricula in schools.
Sec. 61. [DEBT SERVICE LEVY FOR CERTAIN CERTIFICATES OF
INDEBTEDNESS.]
Subdivision 1. [LEVY.] Notwithstanding Minnesota Statutes,
section 475.754, if a city has issued certificates of
indebtedness under that section during calendar year 1989 in an
amount not exceeding $150,000 for the purpose of meeting the
unanticipated cost of repairing a major structural defect in a
building that was undergoing renovation for which other
obligations had been issued previously, any levy to pay the debt
service on those certificates shall be a special levy under
Minnesota Statutes, section 275.50, subdivision 5, paragraph (c).
Subd. 2. [REVERSE REFERENDUM.] If the city intends to
exercise the authority provided by subdivision 1 in subsequent
years, it shall pass a resolution stating the fact before
January 1, 1991. The resolution must be published for two
successive weeks in the official newspaper of the city or, if
there is no official newspaper, in a newspaper of general
circulation in the city, together with a notice fixing a date
for a public hearing on the matter. The hearing must be held at
least two weeks but not more than four weeks after the first
publication of the resolution. Following the public hearing,
the city may determine to take no further action or adopt a
resolution confirming its intention to exercise the authority.
That resolution must also be published in the official newspaper
of the city or, if there is no official newspaper, in a
newspaper of general circulation in the city. If within 30 days
after publication of the resolution a petition signed by voters
equal in number to five percent of the votes cast in the city in
the last general election requesting a vote on the proposed
resolution is filed with the county auditor, the resolution is
not effective until it has been submitted to the voters at a
general or special election and a majority of votes cast on the
question of approving the resolution are in the affirmative.
The commissioner of revenue shall prepare a suggested form of
question to be presented at the election. The referendum must
be held at a special or general election before December 1, 1991.
Sec. 62. [HENNEPIN COUNTY; AUTHORITY TO TRANSFER LIGHT
RAIL MONEY.]
Notwithstanding any law to the contrary, the Hennepin
county regional railroad authority may transfer any available
money of the authority, including money in capital accounts, to
Hennepin county to be expended to meet social service costs
during 1990. The authority under this section to transfer the
regional railroad authority levy applies only during calendar
year 1990.
Sec. 63. [1989 POPULATION AND HOUSEHOLD ESTIMATES USED IN
1991 AID AND LEVY CALCULATIONS.]
Subdivision 1. [NOTIFICATION OF
ESTIMATES.] Notwithstanding any other law, for estimates of
population and number of households of local government
subdivisions for 1989 only, under Minnesota Statutes, section
116K.04, subdivision 4, the estimates shall be communicated to
the governing body of each subdivision by September 1, 1990.
Subd. 2. [1991 AID AND LEVY CALCULATIONS.] Notwithstanding
any other law, for local government aids under Minnesota
Statutes, section 273.1398 and chapter 477A and levy limit
calculations under Minnesota Statutes, sections 275.51 to
275.56, for aids and levies payable in 1991 only, for local
governmental subdivisions for which estimates of population and
number of households for calendar year 1989 do not exist as of
July 1, 1990, the following estimates of population and number
of households will be used:
(1) For calculation of homestead and agricultural credit
aid under Minnesota Statutes, section 273.1398, the household
adjustment factor shall be equal to the number of households,
for the most recently available estimate as of September 7,
1990, divided by the number of households from the year previous
to the most recent estimate;
(2) For calculation of levy limits under Minnesota
Statutes, section 275.51, the population or number of households
shall be equal to the most recently available estimate of
population or number of households as of July 1, 1990. If a
more recent estimate of population or number of households
becomes available by October 15, 1990, and use of this more
recent estimate in the levy limit calculation would increase the
levy limit for a governmental subdivision, the commissioner of
revenue shall recompute and recertify this increased levy limit
to the local government subdivision by October 22, 1990; and
(3) For calculation of local government aids under
Minnesota Statutes, chapter 477A, the population and number of
households means the population and number of households as
established by the most recently available estimate as of July
1, 1990.
Subd. 3. [PROPOSED PROPERTY TAX NOTICES.] If, as a result
of a more recent estimate of population or number of households,
a local government's levy limit is increased as provided in
subdivision 2, clause (2), the amount of the increase in the
levy limit may be added to the proposed tax levy for purposes of
the public hearings under Minnesota Statutes, section 275.065,
subdivision 6.
Sec. 64. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall codify in Minnesota Statutes, section 275.50, all
permanent local special levies enacted in 1990.
Sec. 65. [REPEALER.]
(a) Minnesota Statutes 1989 Supplement, section 375.192,
subdivision 1, is repealed.
(b) Minnesota Statutes 1989 Supplement, section 383A.65, is
repealed.
Sec. 66. [EFFECTIVE DATE.]
Sections 3, 36, 37, 40, 44, 45, 47, 48, 62, and 63, are
effective the day following final enactment.
Sections 4, 5, 9, 13 to 19, 23 to 28, 30, 31, 34, 39, 43,
46, 59, and 61, are effective for taxes levied in 1990, payable
in 1991, and thereafter, except as otherwise provided.
Section 6 is effective August 1, 1990.
Section 7 is effective January 1, 1990, and thereafter.
Section 10 is effective for taxes levied in 1990, payable
in 1991, and thereafter. Notwithstanding Minnesota Statutes,
section 273.112, subdivision 6, in order to qualify for
valuation under Minnesota Statutes, section 273.112, for the
1990 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 July 1, 1990, showing
that the bylaws in rules and regulations of the private club
meet the eligibility requirements of section 10 by July 1, 1990.
Sections 11, 12, 20, 22, 32, 33, 41, and 42, are effective
for taxes levied in 1989, payable in 1990, and thereafter.
Section 21 is effective for reports filed in 1990, and
thereafter.
Section 35 is effective for appeals filed after the date of
final enactment.
Sections 38 and 65, paragraph (a), are effective for
reductions or abatements filed with the county board after June
30, 1990.
Section 57 is effective upon approval by a majority of all
members of the Bemidji city council, and by a majority of all
members of the Beltrami county board of commissioners, and
compliance with Minnesota Statutes, section 645.021.
Sections 58 and 65, paragraph (b), are effective the day
after the governing body of the city of St. Paul and the Ramsey
county board have both complied with Minnesota Statutes, section
645.021, subdivision 3.
ARTICLE 4
PROPERTY TAX AIDS AND CREDITS
Section 1. Minnesota Statutes Second 1989 Supplement,
section 256.025, subdivision 4, is amended to read:
Subd. 4. [PAYMENT SCHEDULE.] Beginning July 1, 1991, the
state will reimburse counties, according to the following
payment schedule, for the county share of local agency
expenditures for the programs specified in subdivision 2.
(a) Beginning July 1, 1991, the state will reimburse or pay
the county share of local agency expenditures according to the
reporting cycle as established by the commissioner, for the
programs identified in subdivision 2. Payments for the period
of January 1, 1991, through July 31, 1991, for calendar years
1991, 1992, and 1993 shall be made subsequent to on or before
July 1, 1991 10 in each of those years. Payments for the period
August 1991 through December 1991 for calendar years 1991, 1992,
and 1993 shall be made subsequent to on or before the first
third of each month thereafter through December 31, 1991 in each
of those years.
(b) Payment for 1/24 of the base amount and the January
1992 1994 county share of local agency expenditures growth
amount for the programs identified in subdivision 2 shall be
made during on or before January 1992 3, 1994. For the period
of February 1, 1992 1994, through July 31, 1992 1994, payment of
the base amount shall be made subsequent to on or before July 1,
1992 10, 1994, and payment of the growth amount over the base
amount shall be made monthly on or before the third of each
month. Payments for the period August 1992 1994 through
December 1992 1994 shall be made subsequent to on or before the
first third of each month thereafter through December 31, 1992
1994.
(c) Payment for the county share of local agency
expenditures during January 1993 1995 shall be made during on or
before January 1993 3, 1995. Payment for 1/24 of the base
amount and the February 1993 1995 county share of local agency
expenditures growth amount for the programs identified in
subdivision 2 shall be made during on or before February 1993 3,
1995. For the period of March 1, 1993 1995, through July
31, 1993 1995, payment of the base amount shall be
made subsequent to on or before July 1, 1993 10, 1995, and
payment of the growth amount over the base amount shall be made
monthly on or before the third of each month. Payments for the
period August 1993 1995 through December 1993 1995 shall be made
subsequent to on or before the first third of each month
thereafter through December 31, 1993 1995.
(d) Monthly payments for the county share of local agency
expenditures from January 1994 1996 through February 1994 1996
shall be made subsequent to on or before the first third of each
month through February 1994 1996. Payment for 1/24 of the base
amount and the March 1994 1996 county share of local agency
expenditures growth amount for the programs identified in
subdivision 2 shall be made during on or before March 1994
1996. For the period of April 1, 1994 1996, through July
31, 1994 1996, payment of the base amount shall be
made subsequent to on or before July 1, 1994 10, 1996, and
payment of the growth amount over the base amount shall be
made monthly on or before the third of each month. Payments for
the period August 1994 1996 through December 1994 1996 shall be
made subsequent to on or before the first third of each month
thereafter through December 31, 1994 1996.
(e) Monthly payments for the county share of local agency
expenditures from January 1995 1997 through March 1995 1997
shall be made subsequent to on or before the first third of each
month through March 1995 1997. Payment for 1/24 of the base
amount and the April 1995 1997 county share of local agency
expenditures growth amount for the programs identified in
subdivision 2 shall be made during on or before April 1995 3,
1997. For the period of May 1, 1995 1997, through July 31, 1995
1997, payment of the base amount shall be made subsequent to on
or before July 1, 1995 10, 1997, and payment of the growth
amount over the base amount shall be made monthly on or before
the third of each month. Payments for the period August 1995
1997 through December 1995 1997 shall be made subsequent to on
or before the first third of each month thereafter through
December 31, 1995 1997.
(f) Monthly payments for the county share of local agency
expenditures from January 1996 1998 through April 1996 1998
shall be made subsequent to on or before the first third of each
month through April 1996 1998. Payment for 1/24 of the base
amount and the May 1996 1998 county share of local agency
expenditures growth amount for the programs identified in
subdivision 2 shall be made during on or before May 1996 3,
1998. For the period of June 1, 1996 1998, through July
31, 1996 1998, payment of the base amount shall be
made subsequent to on or before July 1, 1996 10, 1998, and
payment of the growth amount over the base amount shall be
made monthly on or before the third of each month. Payments for
the period August 1996 1998 through December 1996 1998 shall be
made subsequent to on or before the first third of each month
thereafter through December 31, 1996 1998.
(g) Monthly payments for the county share of local agency
expenditures from January 1997 1999 through May 1997 1999 shall
be made subsequent to on or before the first third of each month
through May 1997 1999. Payment for 1/24 of the base amount and
the June 1997 1999 county share of local agency expenditures
growth amount for the programs identified in subdivision 2 shall
be made during on or before June 1997 3, 1999. For the period
of June 1, 1997 1999, through July 31, 1997 1999, payment shall
be made subsequent to on or before July 1, 1997 10, 1999.
Payments for the period August 1997 1999 through December 1997
1999 shall be made subsequent to on or before the first third
of each month thereafter through December 31, 1997 1999.
(h) Effective January 1, 1998 2000, monthly payments for
the county share of local agency expenditures shall be made
subsequent to the first of each month.
Payments under this subdivision are subject to the
provisions of section 256.017.
Sec. 2. Minnesota Statutes Second 1989 Supplement, 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 gross
class rates and estimated 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, (2) the gross tax capacity of the captured value of
tax increment financing districts as defined in section 469.177,
subdivision 2, and (3) the gross tax capacity of transmission
lines deducted from a local government's total gross tax
capacity under section 273.425. Gross tax capacity cannot be
less than zero.
(d) "Net tax capacity" means the product of (i) the
appropriate net class rates for the year in which the aid is
payable, except that for aids payable in 1991 the class rate
applied to class 3 utility real and personal property the class
rate applied shall be 5.38 percent; the class rate applied to
class 4c property and that portion of class 3 property with an
actual net class rate of 2.3 percent shall be 2.4 percent; the
class rates applied to class 2a agricultural homestead property
excluding the house, garage, and one acre shall be .4 percent
for the first $100,000 of value reduced by the value of the
house, garage, and one acre, 1.3 percent for the remaining value
of the first 320 acres, and 1.7 percent for the remaining value
of any acreage in excess of 320 acres; the class rate applied to
class 2b property shall be 1.7 percent; the class rate applied
to class 1b property shall be .4 percent; and the class rate for
the portion of class 1 property and the house, garage, and one
acre portion of class 2a property with a market value in excess
of $100,000 shall be 5.38 percent 3.0 percent, and (ii)
estimated market values for the assessment two years prior to
that in which aid is payable. The reclassification of mobile
home parks as class 4c shall not be considered in determining
net tax capacity for purposes of this paragraph for aids payable
in 1991 or 1992. The reclassification of fraternity and
sorority houses as class 4c shall not be considered in
determining net tax capacity for purposes of this paragraph for
aids payable in 1991. "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, (2) the net tax
capacity of the captured value of tax increment financing
districts as defined in section 469.177, subdivision 2, and (3)
the net tax capacity of transmission lines deducted from a local
government's total net tax capacity under section 273.425. For
purposes of determining the net tax capacity of property
referred to in clauses (1) and (2), the net tax capacity shall
be multiplied by the ratio of the highest class rate for class
3a property for taxes payable in the year in which the aid is
payable to the highest class rate for class 3a property in the
prior year. Net tax capacity cannot be less than zero.
(e) "Previous net tax capacity" means the product of the
appropriate net class rates for the year previous to the year in
which the aid is payable, and estimated market values for the
assessment two years prior to that in which aid is payable.
"Total previous net tax capacity" means the previous net tax
capacities for all property within the unique taxing
jurisdiction. The total previous net tax capacity shall be
reduced by the sum of (1) the unique taxing jurisdiction's
previous 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, (2) the
previous net tax capacity of the captured value of tax increment
financing districts as defined in section 469.177, subdivision
2, and (3) the previous net tax capacity of transmission lines
deducted from a local government's total net tax capacity under
section 273.425. Previous net tax capacity cannot be less than
zero.
(f) "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. The equalized market values
shall equal the unequalized market values divided by the
assessment sales ratio.
(f) (g) "1989 local tax rate" means the quotient derived by
dividing the gross taxes levied within a unique taxing
jurisdiction for taxes payable in 1989 by the gross tax capacity
of the unique taxing jurisdiction for taxes payable in 1989.
For computation of the local tax rate for aid payable in 1991
and subsequent years, gross taxes for taxes payable in 1989
exclude equalized levies as defined in subdivision 2a. For
purposes of computation of the local tax rate only, gross taxes
shall not be adjusted by inflation or household growth.
(h) "Current local tax rate" means the quotient derived by
dividing the taxes levied within a unique taxing jurisdiction
for taxes payable in the year prior to that for which aids are
being calculated by the net tax capacity of the unique taxing
jurisdiction.
(g) (i) For purposes of calculating the homestead and
agricultural credit aid authorized pursuant to subdivision 2,
the "subtraction factor" is the product of (i) a unique taxing
jurisdiction's 1989 local tax rate; (ii) its total net tax
capacity; and (iii) 0.9767.
(h) (j) For purposes of calculating and allocating
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," or "taxes levied" 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. Gross taxes levied on all properties or gross
taxes are before reduction by any credits for taxes payable in
1989. "Gross taxes" are before any reduction for disparity
reduction aid but "taxes levied" are after any reduction for
disparity reduction aid. Gross taxes levied or taxes levied
cannot be less than zero.
For homestead and agricultural credit aid payable in 1991
and subsequent years, "gross taxes" or "gross taxes levied on
all properties" shall mean gross taxes payable in 1989,
excluding taxes defined as "equalized levies" in subdivision 2a,
multiplied by the cost-of-living adjustment factor and the
household adjustment factor.
"Taxes levied" excludes actual amounts levied for purposes
listed in subdivision 2a.
(i) (k) "Human services aids" means:
(1) aid to families with dependent children under sections
256.82, subdivision 1, and 256.935, subdivision 1;
(2) medical assistance under sections 256B.041, subdivision
5, and 256B.19, subdivision 1;
(3) general assistance medical care under section 256D.03,
subdivision 6;
(4) general assistance under section 256D.03, subdivision
2;
(5) work readiness under section 256D.03, subdivision 2;
(6) emergency assistance under section 256.871, subdivision
6;
(7) Minnesota supplemental aid under section 256D.36,
subdivision 1;
(8) preadmission screening and alternative care grants
under section 256B.091;
(9) work readiness services under section 256D.051;
(10) case management services under section 256.736,
subdivision 13;
(11) general assistance claims processing, medical
transportation and related costs; and
(12) medical assistance, medical transportation and related
costs.
(j) "Adjustment factor" means one plus the percentage
change in (1) the ratio of estimated market value of residential
homesteads to the estimated market value of all taxable property
within the city or township containing the unique taxing
jurisdiction based on the assessment one year prior to the year
in which the aid is payable when compared to the same ratio
based on the assessment two years prior to the year in which the
aid is payable. If the market value of farm homesteads exceeds
the market value of residential homesteads in the city or
township containing the unique taxing jurisdiction, "adjusted
factor" means one plus the percentage change in the ratio of the
estimated market value of farm homesteads to the estimated
market value of all taxable property within the city or township
containing the unique taxing jurisdiction based on the
assessment one year prior to the year in which the aid is
payable when compared to the same ratio based on the assessment
two years prior to the year in which the aid is payable. The
adjustment factor cannot be less than one. Estimates of market
value for the assessment one year prior to the year in which the
aid is paid will be made on the basis of the abstract submitted
pursuant to section 270.11. Discrepancies between the estimate
and actual market values will not result in increased or
decreased aid in the year in which the estimates are used to
compute aid.
(k) (l) "Cost-of-living adjustment factor" means the
greater of one or one plus the percentage increase in the
consumer price index minus .36 percent. In no case may the cost
of living adjustment factor exceed 1.0394.
(m) The percentage increase in the consumer price index
means the percentage, if any, by which:
(1) the consumer price index for the calendar year
preceding that in which aid is payable, exceeds
(2) the consumer price index for calendar year 1989.
(l) (n) "Consumer price index for any calendar year" means
the average of the consumer price index as of the close of the
12-month period ending on May 31 of such calendar year.
(m) (o) "Consumer price index" means the last consumer
price index for all-urban consumers published by the department
of labor. For purposes of the preceding sentence, the revision
of the consumer price index which is most consistent with the
consumer price index for calendar year 1989 shall be used.
(n) (p) "Household adjustment factor" means the number of
households for the second most recent year preceding that in
which the aids are payable divided by the 1988 number of
households for the third most recent year. The household
adjustment factor cannot be less than one.
(q) "Growth adjustment factor" means the household
adjustment factor in the case of counties, cities, and towns.
In the case of school districts the growth adjustment factor
means the average daily membership of the school district under
section 124.17, subdivision 2, for the school year ending in the
second most recent year preceding that in which the aids are
payable divided by the average daily membership for the third
most recent year. In the case of special taxing districts, the
growth adjustment factor equals one. The household growth
adjustment factor cannot be less than one.
(r) "Homestead and agricultural credit base" means the
previous year's certified homestead and agricultural credit aid
determined under subdivision 2 plus, for aid payable in 1992,
fiscal disparity homestead and agricultural credit aid under
subdivision 2b.
(s) "Net tax capacity adjustment" means (1) the total
previous net tax capacity minus the total net tax capacity,
multiplied by (2) the unique taxing jurisdiction's current local
tax rate. The net tax capacity adjustment cannot be less than
zero.
(t) "Fiscal disparity adjustment" means the difference
between (1) a taxing jurisdiction's fiscal disparity
distribution levy under section 473F.08, subdivision 3, clause
(a), for taxes payable in the year prior to that for which aids
are being calculated, and (2) the same distribution levy
multiplied by the ratio of the highest class rate for class 3
property for taxes payable in the year prior to that for which
aids are being calculated to the highest class rate for class 3
property for taxes payable in the second prior year to that for
which aids are being calculated. In the case of school
districts, the fiscal disparity distribution levy shall exclude
that part of the levy attributable to equalized school levies as
defined in subdivision 2a.
Sec. 3. Minnesota Statutes Second 1989 Supplement, section
273.1398, subdivision 2, is amended to read:
Subd. 2. [HOMESTEAD AND AGRICULTURAL CREDIT AID.] (a)
Initial For aid payable in 1991, homestead and agricultural
credit aid for each unique taxing jurisdiction equals the total
gross taxes levied on all properties, minus the unique taxing
jurisdiction's subtraction factor. The commissioner of revenue
may, in computing the amount of the homestead and agricultural
credit aid paid in 1990 and subsequent years, adjust the gross
tax capacity, net tax capacity, and gross taxes of a taxing
jurisdiction for taxes payable in 1989 to reflect auditor's
errors in computing taxes payable for 1989 in unique taxing
jurisdictions within independent school district Nos. 720 and
792. Homestead and agricultural credit aid cannot be less than
zero.
(b)(1) The 1990 and 1991 homestead and agricultural credit
aid is allocated to each local government levying taxes in the
unique taxing jurisdiction in the proportion that the local
government's gross taxes bears to the total gross taxes levied
within the unique taxing jurisdiction. The net tax capacity
adjustment is allocated to each local government levying taxes
in the unique taxing jurisdiction in the proportion that the
local government's taxes levied bears to the total taxes levied
in the unique taxing jurisdiction.
(2) The 1990 homestead and agricultural credit aid so
determined for school districts for purposes of general
education levies pursuant to section 124A.23, subdivisions 2 and
2a, and transportation levies pursuant to section 275.125,
subdivisions 5 and 5c, shall be multiplied by the ratio of the
adjusted gross tax capacity based upon the 1988 adjusted gross
tax capacity to the estimated 1987 adjusted gross tax capacity
based upon the 1987 adjusted assessed value.
(3) If a local government's total tax capacity rate for all
funds for taxes payable in 1989 varies within the area in which
it exercises taxing authority, the local government's allocated
homestead and agricultural credit aid must be further allocated
between the part of its levy in respect to which the tax
capacity rate is constant throughout the area in which it
exercises taxing authority and the part of its levy in respect
to which the tax capacity rate varies throughout the area in
which it exercises taxing authority.
(c) The calendar year 1990 homestead and agricultural
credit aid shall be adjusted by the adjustment factor.
(d) Payments under this subdivision to counties in 1990 and
subsequent years and 1991 shall be reduced by the amount
provided in section 477A.012, subdivisions 3, paragraph (d), and
4, paragraph (d), and 5.
(e) Payments under this subdivision to cities and towns in
1990 and 1991 shall be annually reduced by the amount of the
homestead and agricultural credit aid adjustment, if any,
determined for 1990 under section 477A.013, subdivision 6.
(f) Payments under this subdivision to cities in 1990 and
1991 shall be reduced by the amount of the homestead and
agricultural credit aid adjustment, if any, determined for 1990
under section 477A.013, subdivisions 6 and 7.
(g) Payments under this subdivision to special taxing
districts, excluding hospital districts and the regional transit
board defined in section 473.373, in 1990 and 1991 shall be
reduced by an amount equal to 2.35 percent of the amount levied
for taxes payable in 1990, before reduction for homestead and
agricultural credit aid and disparity reduction aid. Payments
under this subdivision to the regional transit board in 1990 and
1991 shall be reduced by $450,000.
(h) Payments under this subdivision to all taxing
jurisdictions in 1992 and subsequent years are equal to the
product of (1) the homestead and agricultural credit aid base,
and (2) the growth adjustment factor, plus the net tax capacity
adjustment and the fiscal disparity adjustment.
Sec. 4. Minnesota Statutes 1988, section 273.1398, is
amended by adding a subdivision to read:
Subd. 2c. [COMPUTATION BY COMMISSIONER.] Notwithstanding
the provisions of subdivisions 1 and 2 requiring the computation
of homestead and agricultural credit aid at the unique taxing
jurisdiction level, the commissioner may, upon consultation with
the chairs of the house tax committee and senate committee on
taxes and tax laws, compute homestead and agricultural credit
aid at a higher level if it would have a negligible impact or if
changes in the composition of unique taxing jurisdictions do not
permit computation at the unique taxing jurisdiction level.
Sec. 5. Minnesota Statutes Second 1989 Supplement, 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
homestead and agricultural credit aid certified by section
273.1398, subdivision 2, reduced by the amount under section
273.1398, subdivision 5a,; fiscal disparity homestead and
agricultural credit aid under section 273.1398, subdivision 2b;
and equalization aid certified by section 477A.013, subdivision
5. If a local government's 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 homestead and agricultural credit aid was
allocated is the levy or fund which must be adjusted.
Sec. 6. Minnesota Statutes Second 1989 Supplement, section
477A.011, subdivision 1a, is amended to read:
Subd. 1a. [CITY.] City means a statutory or home rule
charter city. City also means a town having a population of
5,000 or more for purposes of the aid payable under section
477A.013, subdivision 3. Towns and cities of the first class
are not eligible to be treated as cities for purposes of aid
payable under section 477A.013, subdivision 5 or the aid
adjustment under section 477A.013, subdivision 7.
Sec. 7. Minnesota Statutes Second 1989 Supplement, section
477A.011, subdivision 25, is amended to read:
Subd. 25. [NET TAX CAPACITY.] "Net tax capacity" means for
aids payable under section 477A.013, subdivision 5, (1) the net
tax capacity of a city computed using the net tax capacity class
rates in Minnesota Statutes 1988, section 273.13, for taxes
payable the year prior to the aid distribution, and based on
1988 estimated market values for taxes payable the year prior to
the aid distribution, plus (2) a city's fiscal disparities
distribution tax capacity under section 473F.08, subdivision 2,
paragraph (b), for taxes payable in 1989 the year prior to the
aid distribution. The market value utilized in computing net
tax capacity shall be reduced by the sum of (1) a city's market
value of commercial industrial property as defined in section
473F.02, subdivision 3, multiplied by the ratio determined
pursuant to section 473F.08, subdivision 2, paragraph
(a), and (2) the market value of the captured value of tax
increment financing districts as defined in section 469.177,
subdivision 2, and (3) the market value of transmission lines
deducted from a city's total net tax capacity under section
273.425. The net tax capacity will be computed using equalized
market values.
Sec. 8. Minnesota Statutes 1988, section 477A.011, is
amended by adding a subdivision to read:
Subd. 27. [REVENUE BASE.] "Revenue base" means the amount
levied for taxes payable in 1990 less the special levies under
section 275.50, subdivision 5, clause (u), including the levy on
the fiscal disparity distribution under section 473F.08,
subdivision 3, paragraph (a), and before reduction for the
homestead and agricultural credit aid under section 273.1398,
subdivision 2, equalization aid under section 477A.013,
subdivision 5, and disparity reduction aid under section
273.1398, subdivision 3; plus the local government aid under
sections 477A.011; 477A.012, subdivisions 1 and 3, determined
without regard to subdivision 2; and 477A.013, subdivisions 3
and 6; and the estimated taconite aids used to determine levy
limits for taxes payable in 1990 under section 275.51,
subdivision 3i.
Sec. 9. Minnesota Statutes 1988, section 477A.011, is
amended by adding a subdivision to read:
Subd. 28. [REDUCTION PERCENTAGE.] "Reduction percentage"
is the equal percentage reduction in each county and city
revenue base that is necessary to reduce 1990 aid payments by
$28,000,000 under sections 477A.012, subdivision 5 and 477A.013,
subdivision 7.
Sec. 10. Minnesota Statutes 1988, section 477A.012,
subdivision 1, is amended to read:
Subdivision 1. [AID AMOUNT.] In calendar year 1988 and
calendar years thereafter 1990, each county government shall
receive a distribution equal to the aid amount certified for
1987 pursuant to this subdivision. In calendar year 1991 and
subsequent years, each county government shall receive a
distribution equal to the aid amount it received in 1990 under
this subdivision less the reduction made under subdivision 5.
Sec. 11. Minnesota Statutes 1988, section 477A.012, is
amended by adding a subdivision to read:
Subd. 5. [COUNTY AID ADJUSTMENT.] For calendar year 1990,
a county's aid amount as calculated under subdivisions 1 and 3
is reduced by an amount equal to the product of its revenue base
and the reduction percentage. The amount of aid computed under
this subdivision and subdivisions 1 and 3 cannot be less than
$0. If the subtraction amount under this subdivision is greater
than the amount of aid calculated for any county under
subdivisions 1 and 3, the remaining amount shall be next
subtracted from the county's homestead and agricultural credit
aid under section 273.1398, subdivision 2, and then, if
necessary, from the county's disparity reduction aid under
section 273.1398, subdivision 3.
Sec. 12. Minnesota Statutes Second 1989 Supplement,
section 477A.013, subdivision 3, is amended to read:
Subd. 3. [CITY AID DISTRIBUTION.] In 1989, a city whose
initial aid is greater than $0 will receive the following aid
increases in addition to an amount equal to the local government
aid it received in 1988 under Minnesota Statutes 1987
Supplement, section 477A.013:
(1) for a city whose expenditure/unlimited aid ratio is at
least 1.5, two percent of city revenue;
(2) for a city whose expenditure/unlimited aid ratio is at
least 1.4 but less than 1.5, 2.5 percent of city revenue;
(3) for a city whose expenditure/unlimited aid ratio is at
least 1.3 but less than 1.4, three percent of city revenue;
(4) for a city whose expenditure/unlimited aid ratio is at
least 1.2 but less than 1.3, four percent of city revenue;
(5) for a city whose expenditure/unlimited aid ratio is at
least 1.1 but less than 1.2, five percent of city revenue;
(6) for a city whose expenditure/unlimited aid ratio is at
least 1.05 but less than 1.1, six percent of city revenue;
(7) for a city whose expenditure/unlimited aid ratio is at
least 1.0 but less than 1.05, seven percent of city revenue;
(8) for a city whose expenditure/unlimited aid ratio is at
least .95 but less than 1.0, 7.5 percent of city revenue;
(9) for a city whose expenditure/unlimited aid ratio is at
least .75 but less than .95, 8.5 percent of city revenue; and
(10) for a city whose expenditure/unlimited aid ratio is
less than .75, nine percent of city revenue.
In 1990, a city whose initial aid is greater than $0 will
receive an amount equal to the aid it received under this
section in the year prior to that for which aids are being
calculated plus an aid increase equal to 50 percent of the rates
listed in clauses (1) to (10) multiplied by city revenue.
In 1991 and subsequent years, a city whose initial aid is
greater than $0 will receive an amount equal to the aid it
received under this section in the year prior to that for which
aids are being calculated plus an aid increase equal to 25
percent of the rates listed in clauses (1) to (10) multiplied by
city revenue.
In 1991 and subsequent years, a city will receive an amount
equal to the local government aid it received under this section
in the previous year.
A city's aid increase under this subdivision is limited to
the lesser of (1) 20 percent of its levy for taxes payable in
the year prior to that for which aids are being calculated after
the adjustments provided in section 273.1398, subdivision 2, or
(2) its initial aid amount, or (3) 15 percent of the total local
government aid amount received under this section in the
previous year, provided that no city will receive an increase
that is less than two percent of its 1989 local government aid
for aids payable in 1990.
A city whose initial aid is $0 will receive in 1990 an
amount equal to 102 percent of the local government aid it
received in 1989 under Minnesota Statutes 1988, section
477A.013. A city whose initial aid is $0 will receive in 1991
and subsequent years an amount equal to the aid it received in
the previous year under this section. For purposes of this
subdivision, the term "local government aid" includes does not
include equalization aid for aids payable in 1991 and thereafter
amounts under subdivision 5.
Sec. 13. Minnesota Statutes Second 1989 Supplement,
section 477A.013, subdivision 5, is amended to read:
Subd. 5. [EQUALIZATION AID.] A city is eligible for
equalization aid in 1990 only. The amount of the aid is equal
to (1) the aid amount received under this subdivision in 1990
after the adjustments, if any, under subdivisions 6 and 7, plus
an equalization aid increase equal to the product of (i) a
city's average levy for the three immediately preceding years
less the disparity reduction aids allocated to the city pursuant
to Minnesota Statutes 1988, section 273.1398, subdivision 3, for
the year prior to the aid distribution, and less the
equalization aid it received under this section in the year
prior to that for which the aid is being
calculated, (ii) .36 .30, and (iii) one minus the ratio of the
net tax capacity per capita to 900; less (2) the local
government aid increase for the city under subdivision 3. The
equalization aid increase under this section is limited to 15 12
percent of the total local government aid the city received in
1989 under this section in the prior year. The aid under this
section cannot be less than zero. For the purposes of this
subdivision, "levy" includes a city's levy on fiscal disparities
distribution under section 473F.08, subdivision 3, paragraph (a).
If the amount allocated under section 477A.03, subdivision
1, is insufficient to pay the aid amounts calculated under this
subdivision, the commissioner of revenue shall first
proportionately reduce the equalization aid increase for each
city so that the sum of the equalization aid amounts paid under
this subdivision equals the amount allocated in section 477A.03,
subdivision 1. If the equalization aid increase is reduced to
zero and the amount allocated under section 477A.03, subdivision
1, is still insufficient to pay the aid amounts under this
subdivision, the remaining amount of equalization aid for each
city will be reduced proportionately so that the sum of the aid
paid under this subdivision equals the amount allocated in
section 477A.03, subdivision 1.
Sec. 14. Minnesota Statutes 1988, section 477A.013, is
amended by adding a subdivision to read:
Subd. 7. [1990 CITY AID ADJUSTMENT.] For cities only in
calendar year 1990, there shall be an amount, equal to the
product of a city's revenue base and the reduction percentage,
subtracted from the aid amounts computed under subdivisions 3,
5, and 6. The subtraction will be made first from the local
government aid computed under subdivisions 3 and 6. If the
subtraction amount under this subdivision is greater than the
local government aid computed under subdivisions 3 and 6, the
remaining amount will be subtracted from the equalization aid
computed under subdivisions 5 and 6. The resulting amounts
shall be the city's local government aid and equalization aid
for calendar year 1990. The local government aid and
equalization aid amount for any city cannot be less than zero.
If the subtraction amount under this section is greater than the
aid amount for any city computed under subdivisions 3, 5, and 6,
the remaining amount shall be subtracted next from the city's
homestead and agricultural credit aid under section 273.1398,
subdivision 2, and then, if necessary, from the city's disparity
reduction aid under section 273.1398, subdivision 3.
Sec. 15. Minnesota Statutes 1988, section 477A.03,
subdivision 1, is amended to read:
Subdivision 1. [ANNUAL APPROPRIATION.] A sum sufficient to
discharge the duties imposed by sections 477A.011 to 477A.014 is
annually appropriated from the general fund to the commissioner
of revenue. For aids payable in 1991 and thereafter, the total
amount of equalization aid paid under section 477A.013,
subdivision 5, is limited to $19,485,684.
Sec. 16. Minnesota Statutes 1988, section 477A.11,
subdivision 4, is amended to read:
Subd. 4. "Other natural resources land" means:
(1) any other land presently owned in fee title by the
state and administered by the commissioner, or any tax-forfeited
land, other than platted lots within a city, which is owned by
the state and administered by the commissioner or by the county
in which it is located; and
(2) land leased by the state from the United States of
America through the United States Secretary of Agriculture
pursuant to Title III of the Bankhead Jones Farm Tenant Act,
which land is commonly referred to as land utilization project
land that is administered by the commissioner.
Sec. 17. Minnesota Statutes 1988, section 477A.13, is
amended to read:
477A.13 [TIME OF PAYMENT, DEDUCTIONS.]
Payments to the counties shall be made from the general
fund during the month of July of the year next following
certification. There shall be deducted from amounts paid any
amounts paid to a county or township during the preceding year
pursuant to sections 89.036, 97A.061, subdivisions 1 and 2, and
272.68, subdivision 3 with respect to the lands certified
pursuant to section 477A.12.
Payments under section 477A.12 must also be reduced by the
following percentages of the amounts paid during the preceding
year under section 84A.51:
(1) for the payment made July 15, 1984, 75 percent;
(2) for the payment made July 15, 1985, 50 percent;
(3) for the payment made July 15, 1986, 25 percent; and
(4) for the payment made thereafter, 0 percent.
Sec. 18. [SPECIAL TAXING DISTRICTS; HOMESTEAD AND
AGRICULTURAL CREDIT AID REDUCTION.]
Subdivision 1. [APPLICATION.] This section applies only to
special taxing districts receiving payments of homestead and
agricultural credit aid for taxes payable in 1990 of $150,000 or
more. The section applies only to the homestead and
agricultural aid payments for taxes payable in 1990.
Subd. 2. [DEFINITIONS.] For purposes of this section, the
following terms have the meanings given.
(a) "Budget" means the budget adopted by the special taxing
district to determine its levy for property taxes payable in
1990. It includes changes in the budget formally adopted by the
governing body of the district before March 15, 1990.
(b) "General fund" means the general fund or equivalent
current operating fund of the special taxing district. It does
not include a separate fund to pay for capital improvements and
equipment or other capital costs.
(c) "Projected unreserved fund balance" means for the
district's general fund the sum of the balance at the end of
1989 and the projected revenues for 1990 in its budget, less the
budgeted amount of current, general fund expenditures for 1990.
Current expenditures include budgeted payments to other public
agencies or entities for their operations to the extent that the
source of the payment is derived 25 percent or more from the
district's property tax levy. Federal aid or other nonproperty
tax revenues (other than homestead and agricultural credit aid)
must be excluded from computation of the unreserved fund
balance, if the revenues are passed through or paid to another
entity and the expenditures are also excluded.
(d) "Special taxing district" or "district" means a
political subdivision with the authority to levy property taxes,
other than a city, county, or school district.
Subd. 3. [REPORTING OF RESERVE FUNDS.] By May 15, 1990,
each special taxing district must report to the commissioner of
revenue the following amounts: (1) its projected unreserved
fund balance, (2) the revenues to be derived from its property
tax levy and homestead and agricultural credit aid for taxes
payable in 1990, and (3) the general fund expenditures
authorized by its budget for 1990.
Subd. 4. [REDUCTION IN AID PAYMENTS.] The commissioner
shall reduce the homestead and agricultural credit aid payments
in calendar year 1990 to the district by the amount of the
excess of the projected unreserved fund balance, over the
greater of (1) 50 percent of its levy before reduction for
homestead and agricultural credit aid and disparity reduction
aid or (2) 20 percent of its general fund expenditures
authorized by its 1990 budget. If the commissioner calculates
that the sum of the reductions under this subdivision for all
districts exceeds $4,000,000, the commissioner shall
proportionately reduce the amount for each district so that the
total reduction is $4,000,000.
Sec. 19. [FURTHER REDUCTIONS IN AIDS AND CREDITS.]
If the total of the reductions in aids and credits under
this article and article 5 for fiscal year 1993 is not at least
$175,000,000, the commissioner of revenue shall further reduce
state aids payable to cities, counties, and special taxing
districts by an amount that, when added to the other reductions
of aids and credits under this article, will equal
$175,000,000. Reductions under this section will be made in the
manner provided in sections 3, 11, and 14.
Sec. 20. [LEVY USE FOR REDUCTIONS.]
If the 1990 abstract of tax lists for a county, city, or
special taxing district has not been received by the
commissioner of revenue by June 15, 1990, the commissioner may
use the final levy certified in the report filed under section
275.07, subdivision 4, as a basis for the reduction under
section 3, 11, or 14.
Sec. 21. [REPEALER.]
Minnesota Statutes Second 1989 Supplement, section
273.1398, subdivision 2b, is repealed.
Sec. 22. [EFFECTIVE DATES.]
Sections 1, 3, 8, 9, 11, 14, 18, and 20 are effective for
aids payable in calendar year 1990 and thereafter. Sections 2,
4, 5, 7, 10, 12, 13, 15, and 17 are effective for aids payable
in calendar year 1991 and thereafter. Sections 19 and 21 are
effective for aids payable in calendar year 1992 and
thereafter. That part of section 6 striking a reference to
cities of the first class is effective for aids paid in calendar
year 1991 and thereafter. The rest of section 6 is effective
for aids paid in calendar year 1990 and thereafter. Section 16
is effective July 1, 1990, and applies to payments due on or
after that date.
ARTICLE 5
PROPERTY TAX REFUNDS
Section 1. Minnesota Statutes 1988, section 290A.03,
subdivision 11, is amended to read:
Subd. 11. [RENT CONSTITUTING PROPERTY TAXES.] "Rent
constituting property taxes" means the amount of gross rent
actually paid in cash, or its equivalent, which is attributable
(a) to the property tax paid on the unit or (b) to the amount
paid in lieu of property taxes, in any calendar year by a
claimant for the right of occupancy of the claimant's Minnesota
homestead in the calendar year, and which rent constitutes the
basis, in the succeeding calendar year of a claim for relief
under this chapter by the claimant. The amount of rent
attributable to property taxes paid or payments in lieu made on
the unit shall be determined by multiplying the net tax on the
property where gross rent paid by the claimant for the calendar
year for the unit is located by a fraction, the numerator of
which is the gross rent paid by the claimant for the calendar
year for net tax on the property where the unit is located and
the denominator of which is the gross rent paid for the calendar
year for the property in which the unit is located total
scheduled rent. In no case may the rent constituting property
taxes exceed 50 percent of the gross rent paid by the claimant
during that calendar year. In the case of a claimant who
resides in a unit for which (1) a rent subsidy is paid to, or
for, the claimant based on the income of the claimant or the
claimant's family, or (2) a subsidy is paid to a public housing
authority that owns or operates the claimant's rental unit,
pursuant to United States Code, title 42, section 1437c, 20
percent of gross rent actually paid in cash or its equivalent
shall be the claimant's "rent constituting property taxes
paid." For purposes of this subdivision, "rent subsidy" does
not include any housing assistance received under aid to
families with dependent children, general assistance, Minnesota
supplemental assistance, supplemental security income, or
similar income maintenance programs.
Sec. 2. Minnesota Statutes 1988, section 290A.03, is
amended by adding a subdivision to read:
Subd. 12a. [TOTAL SCHEDULED RENT.] "Total scheduled rent"
means the sum of the monthly rents assigned to the residential
rental units in the property multiplied by 12. The assigned
rents are the rents effective on May 3 for taxes payable in 1990
and April 15 for taxes payable in 1991 and thereafter. The
rents must be an arm's-length rental, including garage rents if
any, but not including charges for medical services furnished by
the landlord as a part of the rental agreement. In determining
total scheduled rent, no deduction is allowed for vacant units,
uncollected rent, or reduced cash rents in units occupied by
employees or agents of the owner.
Sec. 3. Minnesota Statutes Second 1989 Supplement, section
290A.04, subdivision 2a, is amended to read:
Subd. 2a. [RENTERS.] A claimant whose rent constituting
property taxes exceeds the percentage of the household income
stated below must pay an amount equal to the percent of income
shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of
rent constituting property taxes. The state refund equals the
amount of rent constituting property taxes that remain, up to
the maximum state refund amount shown below.
Percent Percent Maximum
Household Income of Income Paid by State
Claimant Refund
$0 to 999 1.0 percent 9 percent $1,000
1,000 to 1,999 1.1 1.0 percent 9 percent $1,000
2,000 to 2,999 1.2 1.0 percent 10 percent $1,000
3,000 to 3,999 1.3 1.0 percent 10 percent $1,000
4,000 to 4,999 1.4 1.1 percent 11 percent $1,000
5,000 to 5,999 1.5 1.2 percent 12 percent $1,000
6,000 to 6,999 1.5 1.2 percent 13 percent $1,000
7,000 to 7,999 1.6 1.3 percent 14 percent $1,000
8,000 to 8,999 1.6 1.3 percent 15 percent $1,000
9,000 to 9,999 1.7 1.4 percent 16 percent $1,000
10,000 to 10,999 1.7 1.4 percent 17 percent $1,000
11,000 to 11,999 1.8 1.5 percent 19 percent $1,000
12,000 to 12,999 1.8 1.5 percent 21 percent $1,000
13,000 to 13,999 1.9 1.6 percent 23 percent $1,000
14,000 to 14,999 2.0 1.7 percent 24 percent $1,000
15,000 to 15,999 2.0 1.8 percent 26 percent $1,000
16,000 to 16,999 2.1 1.8 percent 27 percent $1,000
17,000 to 17,999 2.2 1.9 percent 28 percent $1,000
18,000 to 18,999 2.3 2.0 percent 30 percent $1,000
19,000 to 19,999 2.5 2.2 percent 32 percent $1,000
20,000 to 20,999 2.7 2.4 percent 34 percent $1,000
21,000 to 21,999 2.9 2.6 percent 36 percent $1,000
22,000 to 22,999 3.0 2.7 percent 37 percent $1,000
23,000 to 23,999 3.1 2.8 percent 38 percent $1,000
24,000 to 24,999 3.2 2.9 percent 40 percent $1,000
25,000 to 25,999 3.3 3.0 percent 43 percent $1,000
26,000 to 26,999 3.4 3.1 percent 43 percent $1,000
27,000 to 27,999 3.5 3.2 percent 45 percent $1,000
28,000 to 28,999 3.6 3.3 percent 47 percent $ 900
29,000 to 29,999 3.7 3.4 percent 47 percent $ 800
30,000 to 30,999 3.8 3.5 percent 48 percent $ 700
31,000 to 31,999 3.9 3.5 percent 48 percent $ 600
32,000 to 32,999 4.0 3.5 percent 50 percent $ 500
33,000 to 33,999 4.0 3.5 percent 50 percent $ 300
34,000 to 34,999 4.0 3.5 percent 50 percent $ 100
The payment made to a claimant is the amount of the state
refund calculated under this subdivision. No payment is allowed
if the claimant's household income is $35,000 or more.
Sec. 4. Minnesota Statutes Second 1989 Supplement, section
290A.04, subdivision 2h, is amended to read:
Subd. 2h. (a) If the gross property taxes payable on a
homestead increase more than ten percent over the net property
taxes payable in the prior year on the same property that is
owned by the same owner in both years, and the amount of that
increase is $40 or more for taxes payable in 1990 and 1991, $60
or more for taxes payable in 1992, $80 or more for taxes payable
in 1993, and $100 or more for taxes payable in 1994, a claimant
who is a homeowner shall be allowed an additional refund equal
to the sum of (1) 75 percent of the first $250 of the amount of
the increase over ten percent for taxes payable in 1990 and
1991, 75 percent of the first $275 of the amount of the increase
over ten percent for taxes payable in 1992, 75 percent of the
first $300 of the amount of the increase over ten percent for
taxes payable in 1993, and 75 percent of the first $325 of the
amount of the increase over ten percent for taxes payable in
1994, and (2) 90 percent of the amount of the increase over ten
percent plus $250 for taxes payable in 1990 and 1991, 90 percent
of the amount of the increase over ten percent plus $275 for
taxes payable in 1992, 90 percent of the amount of the increase
over ten percent plus $300 for taxes payable in 1993, and 90
percent of the amount of the increase over ten percent plus $325
for taxes payable in 1994. This subdivision shall not apply to
any increase in the net property taxes payable attributable to
improvements made to the homestead.
(b) For purposes of this subdivision, the following terms
have the meanings given:
(1) "Net property taxes payable" means property taxes
payable after reductions made under sections 273.13,
subdivisions 22 and 23; 273.132; 273.135; 273.1391; and 273.42,
subdivision 2, and any other state paid property tax credits and
after the deduction of tax refund amounts for which the claimant
qualifies pursuant to subdivision 2 and this subdivision.
(2) "Gross property taxes" means net property taxes payable
determined without regard to the refund allowed under this
subdivision.
(c) In addition to the other proofs required by this
chapter, each claimant under this subdivision shall file with
the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other
documents required by the commissioner.
On or before December 1, 1990, and December 1 of each of
the following three years, the commissioner shall estimate the
cost of making the payments provided by this subdivision for
taxes payable in the following year. Notwithstanding the open
appropriation provision of section 290A.23, if the estimated
total refund claims exceed the following amounts for the taxes
payable year designated, the commissioner shall decrease the
percentages of the excess taxes the state will pay and increase
the dollar amount of tax increase which must occur before a
taxpayer qualifies for a refund so that the estimated total
refund claims do not exceed the appropriation limit.
Taxes payable in: Appropriation limit
1991 $7,000,000 $13,000,000
1992 $6,500,000
1993 $6,000,000
1994 $5,500,000
The commissioner shall make the adjustments so that half of
the estimated savings come from decreasing the percentages of
the excess taxes the state will pay and half of the estimated
savings come from increasing the dollar amount of the tax
increase which must occur before a taxpayer qualifies for a
refund. The determinations of the revised percentages and
thresholds by the commissioner are not rules subject to chapter
14.
Sec. 5. Minnesota Statutes 1989 Supplement, section
290A.04, subdivision 5, is amended to read:
Subd. 5. [COMBINED RENTER AND HOMEOWNER REFUND.] In the
case of a claimant who is entitled to a refund in a calendar
year for claims based both on rent constituting property taxes
and property taxes payable, the refund allowable equals the sum
of the refunds allowable, except that the sum may not exceed the
higher of the maximum refund payable either based on rent
constituting property taxes or property taxes payable.
Sec. 6. Minnesota Statutes 1988, section 290A.19, is
amended to read:
290A.19 [OWNER OR MANAGING AGENT TO FURNISH RENT
CERTIFICATE; PENALTY.]
(a) The owner or managing agent of any property for which
rent is paid for occupancy as a homestead shall furnish a
certificate of rent constituting property tax to each person who
is a renter on December 31, in the form prescribed by the
commissioner. If the renter moves prior to December 31, the
owner or managing agent has the option to either provide the
certificate to the renter at the time of moving, or mail the
certificate to the forwarding address if an address has been
provided by the renter. The certificate shall be made available
to the renter not later than January 31 of the year following
the year in which the rent was paid. The owner or managing
agent must retain a duplicate of each certificate or an
equivalent record showing the same information for a period of
three years. The duplicate or other record must be made
available to the commissioner upon request.
(b) Any owner or managing agent who willfully fails to
furnish a certificate to the renter and the commissioner as
required by this section is liable to the commissioner for a
penalty of $100 for each act or failure to act. The penalty
shall be assessed and collected in the manner provided in
chapter 290 for the assessment and collection of income tax. If
the owner or managing agent willfully furnishes certificates
that report total rent constituting property taxes in excess of
the amount of actual property taxes paid on the rented part of a
property, as determined under this section, the owner or
managing agent is liable for a penalty equal to the greater of
(1) $100 or (2) 50 percent of the excess that is reported. If
the owner or managing agent reports a total amount of rent
constituting property taxes that exceeds by ten percent or more
the actual property taxes, the report is deemed to be willful.
(c) If the owner or managing agent elects to provide the
renter with the certificate at the time of moving, rather than
after December 31, the amount of rent constituting property
taxes shall be computed as follows:
(i) The net tax shall be reduced by 1/12 for each month
remaining in the calendar year.
(ii) In calculating the denominator of the fraction
pursuant to section 290A.03, subdivision 11, the gross rent paid
through the last month of claimant's occupancy shall be
substituted for "the gross rent paid for the calendar year for
the property in which the unit is located."
(d) The certificate of rent constituting property taxes
shall include the address of the property, including the county,
and the property tax parcel identification number and any
additional information which the commissioner determines is
appropriate.
(e) (d) If the owner or managing agent fails to provide the
renter with a certificate of rent constituting property taxes,
the commissioner shall allocate the net tax on the building to
the unit on a square footage basis or other appropriate basis as
the commissioner determines. The renter shall supply the
commissioner with a statement from the county treasurer which
gives the amount of property tax on the parcel, the address and
property tax parcel identification number of the property, and
the number of units in the building.
(f) The owner or managing agent must file a copy of the
certificate of rent paid with the commissioner before April 15
of the year following the year in which the rent was paid. The
commissioner may require that (e) By June 30, for taxes payable
in 1990 and May 30 for taxes payable in 1991 and thereafter,
each owner or managing agent shall report to the commissioner on
a single form prescribed by the commissioner the total property
taxes for a net tax pertaining to the rental residential part of
the property and the allocation of the property taxes as rent
constituting property taxes among the renters of the property,
the total scheduled rent, and the fraction computed under
section 290A.03, subdivision 11. A copy of the property tax
statement for taxes payable in that year must be attached.
Sec. 7. [REPEALER.]
Minnesota Statutes Second 1989 Supplement, section
290A.045, is repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 3, and 6 are effective the day following
final enactment for claims based on rent paid in 1990 and
thereafter. Section 4 is effective for property taxes payable
in 1991 and thereafter. Section 5 is effective for claims based
on rent paid in 1990 and thereafter, and property taxes payable
in 1991 and thereafter. Section 7 is effective the day
following final enactment and applies to taxes payable in 1990
and 1991.
ARTICLE 6
SALES AND LODGING TAXES
Section 1. Minnesota Statutes 1988, section 297A.01,
subdivision 15, is amended to read:
Subd. 15. "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used
directly and principally in the production for sale, but not
including the processing, of livestock, dairy animals, dairy
products, poultry and poultry products, fruits, vegetables,
forage, grains and bees and apiary products. "Farm machinery"
includes
(1) machinery for the preparation, seeding or cultivation
of soil for growing agricultural crops and sod, harvesting and
threshing of agricultural products, harvesting or mowing of sod,
and certain machinery for dairy, livestock and poultry farms;
(2) barn cleaners, milking systems, grain dryers, automatic
feeding systems and similar installations, whether or not the
equipment is installed by the seller and becomes part of the
real property;
(3) irrigation equipment sold for exclusively agricultural
use, including pumps, pipe fittings, valves, sprinklers and
other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, except
irrigation equipment which is situated below ground and
considered to be a part of the real property; and
(4) logging equipment, including chain saws used
for commercial logging only if the engine displacement equals or
exceeds five cubic inches; and
(5) primary and backup generator units used to generate
electricity for the purpose of operating farm machinery, as
defined in this subdivision, or providing light or space heating
necessary for the production of livestock, dairy animals, dairy
products, or poultry and poultry products.
Repair or replacement parts for farm machinery shall not be
included in the definition of farm machinery.
Tools, shop equipment, grain bins, feed bunks, fencing
material, communication equipment and other farm supplies shall
not be considered to be farm machinery. "Farm machinery" does
not include motor vehicles taxed under chapter 297B,
snowmobiles, snow blowers, lawn mowers except those used in the
production of sod for sale, garden-type tractors or garden
tillers and the repair and replacement parts for those vehicles
and machines.
Sec. 2. Minnesota Statutes 1988, section 297A.01,
subdivision 16, is amended to read:
Subd. 16. [CAPITAL EQUIPMENT.] Capital equipment means
machinery and equipment and the materials and supplies necessary
to construct or install the machinery or equipment. To qualify
under this definition the capital equipment must be used by the
purchaser or lessee for manufacturing, fabricating, mining,
quarrying, or refining a product to be sold at retail and must
be used for the establishment of a new or the physical expansion
of an existing manufacturing, fabricating, mining, quarrying, or
refining facility in the state. For purposes of this
subdivision, "mining" includes peat mining. Capital equipment
does not include (1) machinery or equipment purchased or leased
to replace machinery or equipment performing substantially the
same function in an existing facility, (2) repair or replacement
parts, or (3) machinery or equipment used to extract, receive,
or store raw materials.
Sec. 3. Minnesota Statutes 1988, section 297A.25,
subdivision 36, is amended to read:
Subd. 36. [INCOMING, INTERSTATE WATS LINES.] The gross
receipts from the sale of long distance telephone services are
exempt, if the service (1) consists of a wide area telephone
line that permits a long distance call to an individual or
business located in Minnesota to be made from a location outside
of Minnesota at no toll charge to the person placing the call;
or (2) entitles a customer, upon payment of a periodic charge
that is determined either as a flat amount or upon the basis of
total elapsed transmission time, to the privilege of an
unlimited number of long distance calls made from a location in
Minnesota to a location outside of Minnesota if the customer is
a qualified provider of telemarketing services. As used in this
subdivision, a "qualified provider of telemarketing services" is
a telemarketing firm that derives at least 80 percent of its
revenues from one or more of the following activities:
soliciting or providing information, soliciting sales or
receiving orders, and conducting research by means of telegraph,
telephone, computer data base, fiber optic, microwave, or other
communication system.
Sec. 4. Minnesota Statutes 1988, section 297A.25, is
amended by adding a subdivision to read:
Subd. 45. [SHIPS USED IN INTERSTATE COMMERCE.] The gross
receipts from sales of repair, replacement, and rebuilding parts
and materials, and lubricants, for ships or vessels used or to
be used principally in interstate or foreign commerce are exempt.
Sec. 5. Minnesota Statutes 1988, section 297A.25, is
amended by adding a subdivision to read:
Subd. 46. [SUPERCOMPUTING COMPLEX.] The gross receipts
from the sales, lease, license to use or consume, or other
transfer of title or possession, or both, whether absolutely or
conditionally, and from the storage, use, or consumption, of
items comprising a supercomputing complex, are exempt where the
purchaser, lessee, licensee, or other user is a corporation all
of whose shares are owned in part by the Regents of the
University of Minnesota and in part by the University of
Minnesota Foundation, an organization exempt from federal
taxation under section 501(c)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1989. For this purpose, a
supercomputing complex means a multi-user mainframe system
having at least 12 linked processors, memory of at least five
billion characters, high-speed interconnectivity, disk storage
of at least 60 billion characters, and related system and
application software, intended for numerically intensive
computing. A supercomputing complex includes, but is not
limited to, the mainframe computers, associated software,
processor controllers, power and coolant units, communications
devices, workstations terminals, display stations, disk drives,
and tape drives.
Sec. 6. Minnesota Statutes Second 1989 Supplement, 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 the annual town meeting, or at a special town
meeting, impose a tax of up to six 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. 7. Minnesota Statutes Second 1989 Supplement, section
469.190, subdivision 2, is amended to read:
Subd. 2. [EXISTING TAXES.] No statutory or home rule
charter city or town may impose a tax under this section upon
transient lodging that, when combined with any tax authorized by
special law or enacted prior to 1972, exceeds a rate of six
three percent.
Sec. 8. Minnesota Statutes Second 1989 Supplement, section
469.190, subdivision 3, is amended to read:
Subd. 3. [DISPOSITION OF PROCEEDS.] Ninety-five percent of
the gross proceeds from the first three percent of any tax
imposed under subdivision 1 shall be used by the statutory or
home rule charter city or town to fund a local convention or
tourism bureau for the purpose of marketing and promoting the
city or town as a tourist or convention center. This
subdivision shall not apply to any statutory or home rule
charter city or town that has a lodging tax authorized by
special law or enacted prior to 1972 at the time of enactment of
this section.
Sec. 9. [BLOOMINGTON LODGING TAX.]
Subdivision 1. [AUTHORIZATION.] Notwithstanding Minnesota
Statutes, section 469.190, 477A.016, or other law, in addition
to the tax authorized in Laws 1986, chapter 391, section 4, the
governing body of the city of Bloomington may impose a tax of up
to one 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, located in the
city. The city may agree with the commissioner of revenue that
a tax imposed under this section shall be collected by the
commissioner together with the tax imposed by Minnesota
Statutes, chapter 297A, and subject to the same interest,
penalties, and other rules and that its proceeds, less the cost
of collection, shall be remitted to the city. The proceeds of
the tax must be used to promote the metropolitan sports area
defined in Minnesota Statutes, section 473.551, subdivision 5.
Subd. 2. [EFFECTIVE DATE.] This section is effective the
day after the filing of a certificate of local approval by the
governing body of the city of Bloomington in compliance with
Minnesota Statutes, section 645.021, subdivision 3.
Sec. 10. [ROSEVILLE LODGING TAX.]
Notwithstanding Minnesota Statutes, section 477A.016, or
other law, in addition to a tax authorized in Minnesota
Statutes, section 469.190, the governing body of the city of
Roseville may impose a tax of up to two 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, located in the city. The city may agree with the
commissioner of revenue that a tax imposed under this section
shall be collected by the commissioner together with the tax
imposed by Minnesota Statutes, chapter 297A, and subject to the
same interest, penalties, and other rules and that its proceeds,
less the cost of collection, shall be remitted to the city. The
proceeds of the tax shall be dedicated to and used to pay the
costs of the construction, debt service, operation, and
maintenance of a public multiuse speed skating/bandy facility
within the city to the extent the costs exceed any revenues
derived from the lease, rental, or operation of the facility.
Sec. 11. [EFFECTIVE DATE.]
Sections 1 to 3 are effective for sales after June 30, 1990.
Section 4 is effective for sales after December 31, 1983.
The provisions of Minnesota Statutes, section 297A.35, apply to
refunds claimed under section 4.
Section 5 is effective for transactions occurring on or
after December 1, 1989.
Sections 6 to 8 are effective February 1, 1990. Any tax
increase adopted by action of a city council after February 1,
1990, under Minnesota Statutes, section 469.190, that results in
a tax rate that exceeds three percent is ineffective the day
following final enactment of this act.
Section 9 is effective the day following final enactment.
Section 10 is effective the day following final enactment,
but only if the legislature authorizes the issuance of bonds for
the construction of the facility during its 1990 session.
ARTICLE 7
TAX INCREMENT FINANCING
Section 1. [273.1399] [REDUCTION IN STATE TAX INCREMENT
FINANCING AID PAYMENTS.]
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Qualifying captured tax capacity" means the following
amounts:
(1) the captured tax capacity of an economic development or
soils condition tax increment financing district for which
certification was requested after April 30, 1990; and
(2) the captured tax capacity of a tax increment financing
district, other than an economic development or soils condition
district, for which certification was requested after April 30,
1990, multiplied by the following percentage based on the number
of years that have elapsed since the district was first
certified (measured from January 2 immediately preceding
certification of the original tax capacity). In no case may the
final amounts be less than zero or greater than the total
captured tax capacity of the district.
Number of Renewal and All other
years Renovation Districts
Districts
0 to 5 0 0
6 12.5 6.25
7 25 12.5
8 37.5 18.75
9 50 25
10 62.5 31.25
11 75 37.5
12 87.5 43.75
13 100 50
14 100 56.25
15 100 62.5
16 100 68.75
17 100 75
18 100 81.25
19 100 87.5
20 100 93.75
21 or more 100 100
In the case of a hazardous substance subdistrict, the
number of years must be measured from the date of certification
of the subdistrict for purposes of the additional captured tax
capacity resulting from the reduction in the subdistrict's or
site's original tax capacity.
(b) The terms defined in section 469.174 have the meanings
given in that section.
Subd. 2. [REPORTING.] The county auditor shall calculate
the qualifying captured tax capacity amount for each municipal
part of each school district in the county and report the
amounts to the commissioner of revenue at the time and in the
manner prescribed by the commissioner.
Subd. 3. [CALCULATION OF EDUCATION AIDS.] For each school
district containing qualifying captured tax capacity, the
commissioner of education shall compute a hypothetical state aid
amount that would be paid to the school district if the
qualifying captured tax capacity were divided by the sales ratio
and included in the school district's adjusted tax capacity for
purposes of calculating state aids. The commissioner of
education shall notify the commissioner of revenue of the
difference between the actual aid paid and the hypothetical aid
amounts calculated for each school district, broken down by the
municipality that approved the tax increment financing district
containing the qualifying captured tax capacity. The resulting
amount is the reduction in state tax increment financing aid.
Subd. 4. [EQUALIZATION FACTOR.] The amount of the
reduction in state tax increment financing aid equals the amount
determined under subdivision 3 less
(1) seventy-five percent of the excess, if any, of the
amount determined under subdivision 3, over
(2) .05 times the municipality's tax capacity, divided by
the sales ratio.
Subd. 5. [LOCAL GOVERNMENT AIDS; HOMESTEAD AND
AGRICULTURAL AID CALCULATIONS.] (a) The reduction in state tax
increment financing aid for a municipality must be deducted
first from the local government aids to be paid to the
municipality. If the deduction exceeds the amount of the local
government aid, the rest must be deducted from the homestead and
agricultural credit aid to be paid to the municipality.
(b) The amount of qualifying captured tax capacity must be
included in adjusted tax capacity for purposes of computing the
local government aid of the municipality that approved the tax
increment financing district.
Sec. 2. Minnesota Statutes 1988, section 469.043,
subdivision 5, is amended to read:
Subd. 5. [CONTINUATION OF REDEVELOPMENT COMPANY
PROVISIONS.] The provisions of Minnesota Statutes 1986, sections
462.591 to 462.705, shall continue in effect with respect to any
redevelopment company project to which a tax exemption had been
granted under Minnesota Statutes 1986, section 462.651, prior to
August 1, 1987, whether or not the project continues to be owned
by a redevelopment company, provided that if the project is not
owned by a redevelopment company or governmental unit, the
exemption shall not be available during any period when the
earnings of the owner from the project annually paid to the
owner or its shareholders for interest, amortization, and
dividends exceeds eight percent of invested capital or equity in
the project.
Sec. 3. Minnesota Statutes 1988, section 469.129,
subdivision 2, is amended to read:
Subd. 2. [REVENUE BONDS.] A city may authorize, issue, and
sell revenue bonds under section 469.178, subdivision 4, to
refund the principal of and interest on general obligation bonds
originally issued to finance a development district, or one or
more series of bonds one of which series was originally issued
to finance a development district, for the purpose of relieving
the city of restrictions on the application of tax increments or
for other purposes authorized by law. The refunding bonds shall
not be subject to the conditions set out in section 475.67,
subdivisions 11 and 12. Tax increments received by the city
with respect to the district may be used to pay the principal of
and interest on the refunding bonds and to pay premiums for
insurance or other security guaranteeing the payment of their
principal and interest when due. Tax increments may be applied
in any manner permitted by section 469.176, subdivisions 2 and 4.
Bonds may not be issued under this subdivision after April 30,
1990.
Sec. 4. Minnesota Statutes Second 1989 Supplement, section
469.174, subdivision 7, is amended to read:
Subd. 7. [ORIGINAL NET TAX CAPACITY.] (a) Except as
provided in paragraph (b), "original net tax capacity" means the
tax capacity of all taxable real property within a tax increment
financing district as most recently certified by the
commissioner of revenue as of the date of the request by an
authority for certification by the county auditor, together with
subsequent adjustments as set forth in section 469.177,
subdivisions 1 and 4. In determining the original net tax
capacity the net tax capacity of real property exempt from
taxation at the time of the request shall be zero, except for
real property which is tax exempt by reason of public ownership
by the requesting authority and which has been publicly owned
for less than one year prior to the date of the request for
certification, in which event the net tax capacity of the
property shall be the net tax capacity as most recently
determined by the commissioner of revenue.
(b) The original net tax capacity of any designated
hazardous substance site or hazardous substance subdistrict
shall be determined as of the date the authority certifies to
the county auditor that the agency or municipality authority has
entered a redevelopment or other agreement for the removal
actions or remedial actions specified in a development response
action plan, or otherwise provided funds to finance the
development response action plan. The original net tax capacity
equals (i) the net tax capacity of the parcel or parcels in the
site or subdistrict, as most recently determined by the
commissioner of revenue, less (ii) the estimated costs of the
removal actions and remedial actions as specified in a
development response action plan to be undertaken with respect
to the parcel or parcels, (iii) but not less than zero.
(c) The original net tax capacity of a hazardous substance
site or subdistrict shall be increased by the amount by which it
was reduced pursuant to paragraph (b), clause (ii), upon
certification by the municipality that the cost of the removal
and remedial actions specified in the development response
action plan, except for long-term monitoring and similar
activities, have been paid or reimbursed.
(d) For purposes of this subdivision, "real property" shall
include any property normally taxable as personal property by
reason of its location on or over publicly owned property.
Sec. 5. Minnesota Statutes Second 1989 Supplement, section
469.174, subdivision 10, is amended to read:
Subd. 10. [REDEVELOPMENT DISTRICT.] (a) "Redevelopment
district" means a type of tax increment financing district
consisting of a project, or portions of a project, within which
the authority finds by resolution that one of the following
conditions, reasonably distributed throughout the district,
exists:
(1) parcels consisting of 70 percent of the area of the
district are occupied by buildings, streets, utilities, or other
improvements and more than 50 percent of the buildings, not
including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance; or
(2) parcels consisting of 70 percent of the area of the
district are occupied by buildings, streets, utilities, or other
improvements and 20 percent of the buildings are structurally
substandard and an additional 30 percent of the buildings are
found to require substantial renovation or clearance in order to
remove such existing conditions as: inadequate street layout,
incompatible uses or land use relationships, overcrowding of
buildings on the land, excessive dwelling unit density, obsolete
buildings not suitable for improvement or conversion, or other
identified hazards to the health, safety, and general well-being
of the community; or
(3) the property consists of vacant, unused, underused,
inappropriately used, or infrequently used railyards, rail
storage facilities, or excessive or vacated railroad
rights-of-way.
(b) For purposes of this subdivision, "structurally
substandard" shall mean containing defects in structural
elements or a combination of deficiencies in essential utilities
and facilities, light and ventilation, fire protection including
adequate egress, layout and condition of interior partitions, or
similar factors, which defects or deficiencies are of sufficient
total significance to justify substantial renovation or
clearance.
A building is not structurally substandard if it is in
compliance with the building code applicable to new buildings or
could be modified to satisfy the building code at a cost of less
than 15 percent of the cost of constructing a new structure of
the same square footage and type on the site. The municipality
may find that a building is not disqualified as structurally
substandard under the preceding sentence on the basis of
reasonably available evidence, such as the size, type, and age
of the building, the average cost of plumbing, electrical, or
structural repairs, or other similar reliable evidence. If the
evidence supports a reasonable conclusion that the building is
not disqualified as structurally substandard, the municipality
may make such a determination without an interior inspection or
an independent, expert appraisal of the cost of repair and
rehabilitation of the building.
(c) For purposes of this subdivision, a parcel is not
occupied by buildings, streets, utilities, or other improvements
unless 15 percent of the area of the parcel contains
improvements.
(d) For districts consisting of two or more noncontiguous
areas, each area must qualify as a redevelopment district under
paragraph (a), clauses (1) to (3), to be included in the
district, and the entire area of the district must satisfy
paragraph (a).
Sec. 6. Minnesota Statutes 1988, section 469.174, is
amended by adding a subdivision to read:
Subd. 10a. [RENEWAL AND RENOVATION DISTRICT.] (a) "Renewal
and renovation district" means a type of tax increment financing
district consisting of a project, or portions of a project,
within which the authority finds by resolution that:
(1)(i) parcels consisting of 70 percent of the area of the
district are occupied by buildings, streets, utilities, or other
improvements; (ii) 20 percent of the buildings are structurally
substandard; and (iii) 30 percent of the other buildings require
substantial renovation or clearance to remove existing
conditions such as: inadequate street layout, incompatible uses
or land use relationships, overcrowding of buildings on the
land, excessive dwelling unit density, obsolete buildings not
suitable for improvement or conversion, or other identified
hazards to the health, safety, and general well-being of the
community; and
(2) the conditions described in clause (1) are reasonably
distributed throughout the geographic area of the district.
(b) For purposes of determining whether a building is
structurally substandard, whether parcels are occupied by
buildings or other improvements, or whether noncontiguous areas
qualify, the provisions of subdivision 10, paragraphs (b), (c),
and (d) apply.
Sec. 7. Minnesota Statutes 1988, section 469.174,
subdivision 11, is amended to read:
Subd. 11. [HOUSING DISTRICT.] "Housing district" means a
type of tax increment financing district which consists of a
project, or a portion of a project, intended for occupancy, in
part, by persons or families of low and moderate income, as
defined in chapter 462A, Title II of the National Housing Act of
1934, the National Housing Act of 1959, the United States
Housing Act of 1937, as amended, Title V of the Housing Act of
1949, as amended, any other similar present or future federal,
state, or municipal legislation, or the regulations promulgated
under any of those acts. A project does not qualify under this
subdivision if the fair market value of the improvements which
are constructed for commercial uses or for uses other than low
and moderate income housing consists of more than one-third 20
percent of the total fair market value of the planned
improvements in the development plan or agreement. The fair
market value of the improvements may be determined using the
cost of construction, capitalized income, or other appropriate
method of estimating market value.
Sec. 8. Minnesota Statutes 1988, section 469.174,
subdivision 12, is amended to read:
Subd. 12. [ECONOMIC DEVELOPMENT DISTRICT.] "Economic
development district" means a type of tax increment financing
district which consists of any project, or portions of a
project, not meeting the requirements found in the definition of
redevelopment district, renewal and renovation district, soils
condition district, mined underground space development
district, or housing district, but which the authority finds to
be in the public interest because:
(1) it will discourage commerce, industry, or manufacturing
from moving their operations to another state or municipality;
or
(2) it will result in increased employment in the
municipality state; or
(3) it will result in preservation and enhancement of the
tax base of the municipality state.
Sec. 9. Minnesota Statutes 1988, section 469.174, is
amended by adding a subdivision to read:
Subd. 21. [CREDIT ENHANCED BONDS.] "Credit enhanced bonds"
means special obligation bonds that are:
(1) payable primarily from tax increments (i) derived from
a tax increment financing district within which the activity, as
defined in section 469.1763, subdivision 1, financed by at least
75 percent of the bond proceeds is located and (ii) estimated on
the date of issuance to be sufficient to pay when due the debt
service on the bonds, and
(2) further secured by tax increments (i) derived from one
or more tax increment financing districts and (ii) determined by
the issuer to be necessary in order to make the marketing of the
bonds feasible.
Sec. 10. Minnesota Statutes 1988, section 469.175,
subdivision 1a, is amended to read:
Subd. 1a. [INCLUSION OF COUNTY ROAD COSTS.] (a) The county
board may require the authority to pay all or a portion of the
cost of county road improvements out of increment revenues, if
the following conditions occur:
(1) the proposed tax increment financing plan or an
amendment to the plan contemplates construction of a development
that will, in the judgment of the county, substantially increase
the use of county roads requiring construction of road
improvements or other road costs; and
(2) the proposed tax increment financing district is a
soils condition district; and
(3) the road improvements or other road costs, are not
scheduled for construction within five years under the county
capital improvement plan or other formally adopted county plan,
and in the opinion of the county, would not reasonably be
expected to be needed within the reasonably foreseeable future
if the tax increment financing plan were not implemented.
(b) If the county elects to use increments to finance the
road improvements, the county must notify the authority and
municipality within 30 days after receipt of the information on
the proposed tax increment district under subdivision 2. The
notice must include the estimated cost of the road improvements
and schedule for construction and payment of the cost. The
authority must include the improvements in the tax increment
financing plan. The improvements may be financed with the
proceeds of tax increment bonds or the authority and the county
may agree that the county will finance the improvements with
county funds to be repaid in installments, with or without
interest, out of increment revenues. If the cost of the road
improvements and other project costs exceed the projected amount
of the increment revenues, the county and authority shall
negotiate an agreement, modifying the development plan or
proposed road improvements that will permit financing of the
costs before the tax increment financing plan may be approved.
Sec. 11. Minnesota Statutes Second 1989 Supplement,
section 469.175, subdivision 3, is amended to read:
Subd. 3. [MUNICIPALITY APPROVAL.] A county auditor shall
not certify the original net tax capacity of a tax increment
financing district until the tax increment financing plan
proposed for that district has been approved by the municipality
in which the district is located. If an authority that proposes
to establish a tax increment financing district and the
municipality are not the same, the authority shall apply to the
municipality in which the district is proposed to be located and
shall obtain the approval of its tax increment financing plan by
the municipality before the authority may use tax increment
financing. The municipality shall approve the tax increment
financing plan only after a public hearing thereon after
published notice in a newspaper of general circulation in the
municipality at least once not less than ten days nor more than
30 days prior to the date of the hearing. The published notice
must include a map of the area of the district from which
increments may be collected and, if the project area includes
additional area, a map of the project area in which the
increments may be expended. The hearing may be held before or
after the approval or creation of the project or it may be held
in conjunction with a hearing to approve the project. Before or
at the time of approval of the tax increment financing plan, the
municipality shall make the following findings, and shall set
forth in writing the reasons and supporting facts for each
determination:
(1) that the proposed tax increment financing district is a
redevelopment district, a renewal or renovation district, a
mined underground space development district, a housing
district, a soils condition district, or an economic development
district; if the proposed district is a redevelopment
district or a renewal or renovation district, the reasons and
supporting facts for the determination that the district meets
the criteria of section 469.174, subdivision 10, paragraph (a),
clauses (1) to (5) and (2), or subdivision 10a, must be retained
and made available to the public by the authority until the
district has been terminated.
(2) that the proposed development or redevelopment, in the
opinion of the municipality, would not reasonably be expected to
occur solely through private investment within the reasonably
foreseeable future and therefore the use of tax increment
financing is deemed necessary.
(3) that the tax increment financing plan conforms to the
general plan for the development or redevelopment of the
municipality as a whole.
(4) that the tax increment financing plan will afford
maximum opportunity, consistent with the sound needs of the
municipality as a whole, for the development or redevelopment of
the project by private enterprise.
(5) that the municipality elects the method of tax
increment computation set forth in section 469.177, subdivision
3, clause (b), if applicable.
When the municipality and the authority are not the same,
the municipality shall approve or disapprove the tax increment
financing plan within 60 days of submission by the authority, or
the plan shall be deemed approved. When the municipality and
the authority are not the same, the municipality may not amend
or modify a tax increment financing plan except as proposed by
the authority pursuant to subdivision 4. Once approved, the
determination of the authority to undertake the project through
the use of tax increment financing and the resolution of the
governing body shall be conclusive of the findings therein and
of the public need for the financing.
Sec. 12. Minnesota Statutes 1989 Supplement, section
469.175, subdivision 4, is amended to read:
Subd. 4. [MODIFICATION OF PLAN.] (a) A tax increment
financing plan may be modified by an authority, provided that
any reduction or enlargement of geographic area of the project
or tax increment financing district, increase in amount of
bonded indebtedness to be incurred, including a determination to
capitalize interest on the debt if that determination was not a
part of the original plan, or to increase or decrease the amount
of interest on the debt to be capitalized, increase in the
portion of the captured net tax capacity to be retained by the
authority, increase in total estimated tax increment
expenditures or designation of additional property to be
acquired by the authority shall be approved upon the notice and
after the discussion, public hearing, and findings required for
approval of the original plan; provided that if an authority
changes the type of district from housing, redevelopment, or
economic development to another type of district, this change
shall not be considered a modification but shall require the
authority to follow the procedure set forth in sections 469.174
to 469.179 for adoption of a new plan, including certification
of the net tax capacity of the district by the county auditor.
If a redevelopment district or a renewal and renovation district
is enlarged, the reasons and supporting facts for the
determination that the addition to the district meets the
criteria of section 469.174, subdivision 10, paragraph (a),
clauses (1) to (5) and (2), or subdivision 10a, must be
documented. The requirements of this paragraph do not apply if
(1) the only modification is elimination of parcels from the
project or district and (2)(A) the current net tax capacity of
the parcels eliminated from the district equals or exceeds the
net tax capacity of those parcels in the district's original net
tax capacity or (B) the authority agrees that, notwithstanding
section 469.177, subdivision 1, the original net tax capacity
will be reduced by no more than the current net tax capacity of
the parcels eliminated from the district. The authority must
notify the county auditor of any modification that reduces or
enlarges the geographic area of a district or a project area.
(b) The geographic area of a tax increment financing
district may be reduced, but shall not be enlarged after five
years following the date of certification of the original net
tax capacity by the county auditor or after August 1, 1984, for
tax increment financing districts authorized prior to August 1,
1979.
Sec. 13. Minnesota Statutes Second 1989 Supplement,
section 469.175, subdivision 7, is amended to read:
Subd. 7. [CREATION OF HAZARDOUS SUBSTANCE SUBDISTRICT;
RESPONSE ACTIONS.] (a) An 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 or modification to 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 substance sites, including
parcels that are contiguous to the site except for the
interposition of a right-of-way. Before or at the time of
approval of the tax increment financing plan or plan
modification providing for the creation of the hazardous
substance subdistrict, the authority 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 authority, 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 authority to provide for the additional costs due
to the designated hazardous substance site.
(e) Upon request by an 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 authority to
recover the expenses, including administrative costs and
litigation expenses, under section 115B.04 or other law; or
(2) assist the authority 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 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 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 authority shall reimburse the attorney
general for litigation expenses not recovered in an action under
paragraph (e), clause (1), but only from the additional tax
increment required to be used as described in section 469.176,
subdivision 4e. The authority must reimburse the attorney
general for litigation expenses incurred to assist in bringing
an action under paragraph (e), clause (2), but only from amounts
recovered by the authority in an action or, if the amounts are
insufficient, from the additional tax increment required to be
used as described in section 469.176, subdivision 4e. 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 authority shall reimburse the pollution control
agency for its administrative expenses incurred to review and
approve a development action response plan. The authority must
reimburse the pollution control agency 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), but only from amounts recovered by the
municipality or authority in an action brought under paragraph
(e) or from the additional tax increment required to be used as
described in section 469.176, subdivision 4e. 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 an authority consistent with a
development response action plan are deemed to be authorized
response actions for the purpose of section 115B.17, subdivision
12. An authority 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 an 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. 14. Minnesota Statutes 1988, section 469.175, is
amended by adding a subdivision to read:
Subd. 8. [PAYMENT OF DEBT SERVICE ON CREDIT ENHANCED
BONDS.] A tax increment financing plan may provide for the use
of the tax increment to pay, or secure payment of, debt service
on credit enhanced bonds issued to finance any project located
within the boundaries of the municipality, whether or not the
tax increment financing district from which the increment is
derived is located within the boundaries of the project.
Sec. 15. Minnesota Statutes Second 1989 Supplement,
section 469.176, subdivision 1, is amended to read:
Subdivision 1. [DURATION OF TAX INCREMENT FINANCING
DISTRICTS.] (a) Subject to the limitations contained in
paragraphs (b) to (g), any tax increment financing district as
to which bonds are outstanding, payment for which the tax
increment and other revenues have been pledged, shall remain in
existence at least as long as the bonds continue to be
outstanding. The municipality may, at the time of approval of
the initial tax increment financing plan, provide for a shorter
maximum duration limit than specified in paragraphs (b) to (g).
The specified limit applies in place of the otherwise applicable
limit.
(b) The tax increment pledged to the payment of the bonds
and interest thereon may be discharged and the tax increment
financing district may be terminated if sufficient funds have
been irrevocably deposited in the debt service fund or other
escrow account held in trust for all outstanding bonds to
provide for the payment of the bonds at maturity or date of
redemption and interest thereon to the maturity or redemption
date.
(c) For bonds issued pursuant to section 469.178,
subdivisions 2 and 3, the full faith and credit and any taxing
powers of the municipality or authority shall continue to be
pledged to the payment of the bonds until the principal of and
interest on the bonds has been paid in full.
(d) No tax increment shall be paid to an authority for a
tax increment financing district after three years from the date
of certification of the original net tax capacity of the taxable
real property in the district by the county auditor or after
August 1, 1982, for tax increment financing districts authorized
prior to August 1, 1979, unless within the three-year period (1)
bonds have been issued pursuant to section 469.178, or in aid of
a project pursuant to any other law, except revenue bonds issued
pursuant to sections 469.152 to 469.165, prior to August 1,
1979, or (2) the authority has acquired property within the
district, or (3) the authority has constructed or caused to be
constructed public improvements within the district.
(e) No tax increment shall in any event be paid to the
authority from a redevelopment district (1) after 25 years from
date of receipt by the authority of the first tax increment,
after 25 years from the date of the receipt for a housing
district, after 25 years from the date of the receipt for a
mined underground space development district, redevelopment
district, or housing district, (2) after 15 years after receipt
by the authority of the first increment for a renewal and
renovation district, (3) after 12 years from approval of the tax
increment financing plan for a soils condition district, and (4)
after eight years from the date of the receipt, or ten years
from approval of the tax increment financing plan, whichever is
less, for an economic development district.
For tax increment financing districts created prior to
August 1, 1979, no tax increment shall be paid to the authority
after April 1, 2001, or the term of a nondefeased bond or
obligation outstanding on April 1, 1990, secured by increments
from the district or project area, whichever time is greater,
provided that in no case will a tax increment be paid to an
authority after August 1, 2009, from such a district. If a
district's termination date is extended beyond April 1, 2001,
because bonds were outstanding on April 1, 1990, with maturities
extending beyond April 1, 2001, the following restrictions
apply. No increment collected from the district may be expended
after April 1, 2001, except to pay or defease (i) bonds issued
before April 1, 1990, or (ii) bonds issued to refund the
principal of the outstanding bonds and pay associated issuance
costs, provided the average maturity of the refunding bonds does
not exceed the bonds refunded.
(f) Modification of a tax increment financing plan pursuant
to section 469.175, subdivision 4, shall not extend the
durational limitations of this subdivision.
(g) If a parcel of a district is part of a designated
hazardous substance site or a hazardous substance subdistrict,
tax increment may be paid to the authority from the parcel for
longer than the period otherwise provided by this subdivision.
The extended period for collection of tax increment begins on
the date of receipt of the first tax increment from the parcel
that is more than any tax increment received from the parcel
before the date of the certification under section 469.175,
subdivision 7, paragraph (b), and received after the date of
certification to the county auditor described in section
469.175, subdivision 7, paragraph (b). The extended period for
collection of tax increment is the lesser of: (1) 25 years from
the date of commencement of the extended period; or (2) the
period necessary to recover the costs of removal actions or
remedial actions specified in a development response action plan.
Sec. 16. Minnesota Statutes 1988, section 469.176,
subdivision 2, is amended to read:
Subd. 2. [EXCESS TAX INCREMENTS.] (a) In any year in which
the tax increment exceeds the amount necessary to pay the costs
authorized by the tax increment financing plan, including the
amount necessary to cancel any tax levy as provided in section
475.61, subdivision 3, the authority shall use the excess amount
to do any of the following: (1) prepay any outstanding bonds,
(2) discharge the pledge of tax increment therefor, (3) pay into
an escrow account dedicated to the payment of such bond, or (4)
return the excess amount to the county auditor who shall
distribute the excess amount to the municipality, county, and
school district in which the tax increment financing district is
located in direct proportion to their respective tax capacity
rates. The county auditor must report to the commissioner of
education the amount of any excess tax increment distributed to
a school district within 30 days of the distribution.
(b) The amounts distributed to a city or county must be
deducted from the levy limits of the governmental unit for the
following year. In calculating the levy limit base for later
years, the amount deducted must be treated as a local government
aid payment.
Sec. 17. Minnesota Statutes 1988, section 469.176,
subdivision 3, is amended to read:
Subd. 3. [LIMITATION ON ADMINISTRATIVE EXPENSES.] (a) For
districts for which certification was requested before August 1,
1979, or after June 30, 1982, no tax increment shall be used to
pay any administrative expenses for a project which exceed ten
percent of the total tax increment expenditures authorized by
the tax increment financing plan or the total tax increment
expenditures for the project, whichever is less.
(b) For districts for which certification was requested
after July 31, 1979, and before July 1, 1982, no tax increment
shall be used to pay administrative expenses, as defined in
Minnesota Statutes 1980, section 273.73, for a project which
exceeds five percent of the total tax increment expenditures
authorized by the tax increment financing plan or the total tax
increment expenditures for the project, whichever is less.
Sec. 18. Minnesota Statutes 1989 Supplement, section
469.176, subdivision 4c, is amended to read:
Subd. 4c. [ECONOMIC DEVELOPMENT DISTRICTS.] (a) 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 ten 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 a purpose other
than:
(1) the manufacturing or production of tangible personal
property, including processing resulting in the change in
condition of the property;
(2) warehousing, storage, and distribution of property, but
excluding retail sales;
(3) research and development or telemarketing if that
activity is the exclusive use of the property; or
(4) tourism facilities, if the tourism facility is not
located in a development regions region, as defined in section
462.384, with populations a population in excess of 1,000,000.
The percentage of buildings and facilities that may be used
for nonqualifying purposes is increased above ten percent, but
not over 25 percent, to the extent the nonqualifying square
footage is directly related to and in support of the qualifying
activity.
(b) Population must be determined under the provisions of
section 477A.011. Tourism facilities are limited to hotel and
motel properties, including ancillary restaurants, convention
and meeting facilities, amusement parks, recreation facilities,
cultural facilities, marinas, and parks. The city must find
that the tourism facilities are intended primarily to serve
individuals outside of the development region.
(c) If the authority financed the construction of
improvements with increment revenues for a site on which the
authority expected qualifying facilities to be constructed and
nonqualified property was constructed on the site in excess of
the amount permitted under paragraph (a) within five years after
the district was created, the developer of the nonqualified
property must pay to the authority an amount equal to 90 percent
of the benefit resulting from the improvements. The amount
required to be paid may not exceed the proportionate cost of the
improvements, including capitalized interest, that was financed
with increment revenues. The payment must be used to prepay or
discharge bonds under section 469.176, subdivision 2, paragraph
(a), clauses (1) to (3). If no bonds are outstanding, the
payment shall be distributed as an excess increment. "Benefit"
has the meaning given in chapter 429.
(d) Notwithstanding the provisions of this subdivision,
revenue derived from tax increment from an economic development
district may be used to provide improvements, loans, subsidies,
grants, interest rate subsidies, or assistance in any form for
up to 5,000 square feet of commercial and retail facilities
within the municipal jurisdiction of a home rule charter or
statutory city that has a population of 5,000 or less. The
5,000 square feet limitation is cumulative and applies to all
facilities in all the economic development districts within the
municipal jurisdiction.
Sec. 19. Minnesota Statutes Second 1989 Supplement,
section 469.176, subdivision 4j, is amended to read:
Subd. 4j. [REDEVELOPMENT DISTRICTS.] At least 90 percent
of the revenues derived from tax increments from a redevelopment
district or renewal and renovation district must be used to
finance the cost of correcting conditions that allow designation
of redevelopment and renewal and renovation districts under
section 469.174, subdivision 10. These costs include acquiring
properties containing structurally substandard buildings or
improvements, acquiring adjacent parcels necessary to provide a
site of sufficient size to permit development, demolition of
structures, clearing of the land, and installation of utilities,
roads, sidewalks, and parking facilities for the site. The
allocated administrative expenses of the authority may be
included in the qualifying costs.
Sec. 20. [469.1762] [ARBITRATION OF DISPUTES OVER COUNTY
COSTS.]
If the county and the authority or municipality are unable
to agree on either (1) the need for or cost of road improvements
under section 469.175, subdivision 1a, or (2) the amount of
county administrative costs under section 469.176, subdivision
4h, and the county or municipality demands arbitration, the
matter must be submitted to binding arbitration in accordance
with sections 572.08 to 572.30 and the rules of the American
Arbitration Association. Within 30 days after the demand for
arbitration, the parties shall each select an arbitrator or
agree upon a single arbitrator. If the parties each select an
arbitrator, the two arbitrators shall select a third arbitrator
within 45 days after the demand for arbitration. Each party
shall pay the fees and expenses of the arbitrator it selected
and the parties shall share equally the expenses of the third
arbitrator or an arbitrator agreed upon mutually by the parties.
Sec. 21. [469.1763] [RESTRICTIONS ON POOLING; FIVE-YEAR
LIMIT.]
Subdivision 1. [DEFINITIONS.] (a) For purposes of this
section, the following terms have the meanings given.
(b) "Activities" means acquisition of property, clearing of
land, site preparation, soils correction, removal of hazardous
waste or pollution, installation of utilities, construction of
public or private improvements, and other similar activities,
but only to the extent that tax increment revenues may be spent
for such purposes under other law. Activities do not include
allocated administrative expenses, but do include engineering,
architectural, and similar costs of the improvements in the
district.
(c) "Third party" means an entity other than (1) the person
receiving the benefit of assistance financed with tax
increments, or (2) the municipality or the development authority
or other person substantially under the control of the
municipality.
Subd. 2. [EXPENDITURES OUTSIDE DISTRICT.] (a) For each tax
increment financing district, an amount equal to at least 75
percent of the revenue derived from tax increments paid by
properties in the district must be expended on activities in the
district or to pay bonds, to the extent that the proceeds of the
bonds were used to finance activities in the district or to pay,
or secure payment of, debt service on credit enhanced bonds.
Not more than 25 percent of the revenue derived from tax
increments paid by properties in the district may be expended,
through a development fund or otherwise, on activities outside
of the district but within the defined geographic area of the
project except to pay, or secure payment of, debt service on
credit enhanced bonds. The revenue derived from tax increments
for the district that are expended on costs under section
469.176, subdivision 4h, paragraph (b), may be deducted first
before calculating the percentages that must be expended within
and without the district.
(b) In the case of a housing district, a housing project,
as defined in section 469.174, subdivision 11, is an activity in
the district.
Subd. 3. [FIVE-YEAR RULE.] (a) Revenues derived from tax
increments are considered to have been expended on an activity
within the district under subdivision 2 only if one of the
following occurs:
(1) before or within five years after certification of the
district, the revenues are actually paid to a third party with
respect to the activity;
(2) bonds, the proceeds of which must be used to finance
the activity, are issued and sold to a third party before or
within five years after certification and the revenues are spent
to repay the bonds;
(3) binding contracts with a third party are entered into
for performance of the activity before or within five years
after certification of the district and the revenues are spent
under the contractual obligation; or
(4) costs with respect to the activity are paid before or
within five years after certification of the district and the
revenues are spent to reimburse a party for payment of the costs.
(b) For purposes of this subdivision, bonds include
subsequent refunding bonds if one of two tests is met: (1) the
proceeds of the original refunded bonds were spent on activities
within five years after the district was certified or (2) the
original refunded bonds are issued within five years after the
district was certified and the proceeds are expended on
activities within a reasonable temporary period within the
meaning of the use of that term under section 148(c)(1) of the
Internal Revenue Code.
Subd. 4. [USE OF REVENUES FOR DECERTIFICATION.] Beginning
with the sixth year following certification of the district, 75
percent of the revenues derived from tax increments paid by
properties in the district that remain after the expenditures
permitted under subdivision 3 must be used only to pay
outstanding bonds, as defined in subdivision 3, paragraph (a),
clause (2), and paragraph (b) or contracts, as defined in
subdivision 3, paragraph (a), clauses (3) and (4). When the
outstanding bonds have been defeased and when sufficient money
has been set aside to pay contractual obligations as defined in
subdivision 3, paragraph (a), clauses (3) and (4), the district
must be decertified and the pledge of tax increment discharged.
Sec. 22. Minnesota Statutes 1988, section 469.177,
subdivision 8, is amended to read:
Subd. 8. [ASSESSMENT AGREEMENTS.] An authority may, upon
entering into a development or redevelopment agreement pursuant
to section 469.176, subdivision 5, enter into a written
assessment agreement in recordable form with the a developer or
redeveloper of property within the tax increment financing
district which establishes a minimum market value of the land
and completed improvements to be constructed thereon until a
specified termination date, which date shall be not later than
the date upon which tax increment will no longer be remitted to
the authority pursuant to section 469.176, subdivision 1. The
assessment agreement shall be presented to the county assessor,
or city assessor having the powers of the county assessor, of
the jurisdiction in which the tax increment financing district
is located. The assessor shall review the plans and
specifications for the improvements to be constructed, review
the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minimum
market value contained in the assessment agreement appears, in
the judgment of the assessor, to be a reasonable estimate, shall
execute the following certification upon the agreement:
The undersigned assessor, being legally responsible
for the assessment of the above described property
upon completion of the improvements to be
constructed thereon, hereby certifies that the market
value assigned to the land and improvements upon
completion shall not be less than $........... .
Upon transfer of title of the land to be developed or
redeveloped from the authority to the developer or redeveloper,
the assessment agreement, together with a copy of this
subdivision, shall be filed for record and recorded in the
office of the county recorder or filed in the office of the
registrar of titles of the county where the real estate or any
part thereof is situated. Upon completion of the improvements
by the developer or redeveloper, the assessor shall value the
property pursuant to section 273.11, except that the market
value assigned thereto shall not be less than the minimum market
value contained in the assessment agreement. Nothing herein
shall limit the discretion of the assessor to assign a market
value to the property in excess of the minimum market value
contained in the assessment agreement nor prohibit the developer
or redeveloper from seeking, through the exercise of
administrative and legal remedies, a reduction in market value
for property tax purposes; provided, however, that the developer
or redeveloper shall not seek, nor shall the city assessor, the
county assessor, the county auditor, any board of review, any
board of equalization, the commissioner of revenue, or any court
of this state grant a reduction of the market value below the
minimum market value contained in the assessment agreement
during the term of the agreement filed of record regardless of
actual market values which may result from incomplete
construction of improvements, destruction, or diminution by any
cause, insured or uninsured, except in the case of acquisition
or reacquisition of the property by a public entity. Recording
or filing of an assessment agreement complying with the terms of
this subdivision shall constitute notice of the agreement to any
subsequent purchaser or encumbrancer of the land or any part
thereof, whether voluntary or involuntary, and shall be binding
upon them.
Sec. 23. Minnesota Statutes 1989 Supplement, section
469.177, subdivision 9, is amended to read:
Subd. 9. [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET
TAX CAPACITY.] (a) If the amount of tax paid on captured net tax
capacity exceeds the amount of tax increment, the county auditor
shall distribute the excess to the municipality, county, and
school district as follows: each governmental unit's share of
the excess equals
(1) the total amount of the excess for the tax increment
financing district, multiplied by
(2) a fraction, the numerator of which is the current tax
capacity rate of the governmental unit less the governmental
unit's tax capacity rate for the year the original tax capacity
rate for the district was certified (in no case may this amount
be less than zero) and the denominator of which is the sum of
the numerators for the municipality, county, and school district.
If the entire increase in the tax capacity rate is attributable
to a taxing district, other than the municipality, county, or
school district, then the excess must be distributed to the
municipality, county, and school district in proportion to their
respective tax capacity rates.
The school district's tax rate must be divided into the
portion of the tax rate attributable (1) to state equalized
levies, and (2) unequalized levies. Equalized levies mean the
levies identified in section 273.1398, subdivision 2a, and
unequalized levies mean the rest of the school district's
levies. The calculations under clause (2) must determine the
amount of excess taxes attributable to each portion of the
school district's tax rate. If one of the portions of the
change in the school district tax rate is less than zero and the
combined change is greater than zero, the combined rate must be
used and all the school district's share of excess taxes
allocated to that portion of the tax rate.
(b) The amounts distributed shall be deducted in computing
the levy limits of the taxing district for the succeeding
taxable year. In the case of a school district, only the
proportion of the excess taxes attributable to unequalized
levies that are subject to a fixed dollar amount levy limit
shall be deducted from the levy limit.
(c) In the case of distributions to a school district that
are attributable to state equalized levies, the county auditor
shall report amounts distributed to the commissioner of
education in the same manner as provided for excess increments
under section 469.176, subdivision 2, and the distribution shall
be treated as an excess increment for purposes of section
124.214, subdivision 3 be deducted from the school district's
state aid payments.
Sec. 24. Minnesota Statutes Second 1989 Supplement,
section 469.177, subdivision 10, is amended to read:
Subd. 10. [PAYMENT TO SCHOOL FOR REFERENDUM LEVY.] (a) The
provisions of this subdivision apply to tax increment financing
districts and projects for which certification was requested
before May 1, 1988, that are located in a school district in
which the voters have approved new tax capacity rates or an
increase in tax capacity rates after the tax increment financing
district was certified.
(b) (1) If there are no outstanding bonds on May 1, 1988,
to which increment from the district is pledged, or (2) if the
referendum is approved after May 1, 1988, and there are no bonds
outstanding at the time the referendum is approved, that were
issued before May 1, 1988, or (3) if the referendum increasing
the tax capacity rate was approved after the most recent issue
of bonds to which increment from the district is pledged. If
clause (1) or (2) applies, the authority must annually pay to
the school district an amount of increment equal to the
increment that is attributable to the increase in the tax
capacity rate under the referendum.
(2) If clause (3) applies (1) does not apply, upon approval
by a majority vote of the governing body of the municipality and
the school board, the authority must pay to the school district
an amount of increment equal to the increment that is
attributable to the increase in the tax capacity rate under the
referendum.
(c) The amounts of these increments may be expended and
must be treated by the school district in the same manner as
provided for the revenues derived from the referendum levy
approved by the voters. The provisions of this subdivision
apply to projects for which certification was requested before,
on, and after August 1, 1979.
Sec. 25. [469.1771] [VIOLATIONS.]
Subdivision 1. [ENFORCEMENT.] (a) The commissioner of
revenue shall enforce the provisions of sections 469.174 to
469.179. In addition, the owner of taxable property located in
the city, town, school district, or county in which the tax
increment financing district is located may bring suit for
equitable relief or for damages, as provided in subdivisions 3
and 4, arising out of a failure of a municipality or authority
to comply with the provisions of sections 469.174 to 469.179, or
related provisions of chapter 469. The prevailing party in a
suit filed under the preceding sentence is entitled to costs,
including reasonable attorney fees.
(b) The responsibility for financial and compliance
auditing of political subdivisions' use of tax increment
financing remains with the state auditor. If the state auditor
finds evidence that an authority or municipality has violated a
provision of the law for which a remedy is provided under this
section, the state auditor shall forward the relevant
information to the commissioner of revenue. The commissioner of
revenue may audit an authority's use of tax increment financing.
Subd. 2. [COLLECTION OF INCREMENT.] If an authority
includes or retains a parcel of property in a tax increment
financing district that does not qualify for inclusion or
retention within the district, the authority must pay to the
county auditor an amount of money equal to the increment
collected from the property for the year or years. The property
must be eliminated from the original and captured tax capacity
of the district effective for the current property tax
assessment year. This subdivision does not apply to a failure
to decertify a district required by the duration limits under
section 469.176, subdivision 1.
Subd. 3. [EXPENDITURE OF INCREMENT.] If an authority
expends revenues derived from tax increments, including the
proceeds of tax increment bonds, (1) for a purpose that is not a
permitted project under section 469.176, (2) for a purpose that
is not permitted under section 469.176 for the district from
which the increment was received, or (3) on activities outside
of the geographic area in which the revenues may be expended
under this chapter, the authority must pay to the county auditor
an amount equal to the expenditures made in violation of the law.
Subd. 4. [LIMITATIONS.] (a) If the increments are pledged
to repay bonds that were issued before the lawsuit was filed
under this section, the damages under this section may not
exceed the greatest of (1) the damages under subdivision 2 or 3,
(2) ten percent of the expenditures or revenues derived from
increment, or (3) the amount of available revenues after paying
debt services due on the bonds.
(b) The court may abate all or part of the amount if it
determines the action was taken in good faith and would work an
undue hardship on the municipality.
Subd. 5. [DISPOSITION OF PAYMENTS.] If the authority does
not have sufficient increments or other available moneys to make
a payment required by this section, the municipality that
approved the district must use any available moneys to make the
payment including the levying of property taxes. Money received
by the county auditor under this section must be distributed as
excess increments under section 469.176, subdivision 2,
paragraph (a), clause (4). No distributions may be made to the
municipality that approved the tax increment financing district.
Subd. 6. [APPLICATION.] This section applies to increments
collected from tax increment financing districts and projects
for which certification was requested before, on, and after
August 1, 1979.
Sec. 26. [469.1781] [REQUIRED EXPENDITURES FOR
NEIGHBORHOOD REVITALIZATION.]
(a) The provisions of this section apply to a city of the
first class if the following conditions are met:
(1) the city refunded bonds and revenues, derived from
increment from a district for which certification was requested
before August 1, 1979, were pledged to pay the bonds;
(2) the refunding bonds were issued after April 1, 1988,
and before April 1, 1990;
(3) the refunded bonds' obligations were due and payable in
full by the calendar year 2002 and the refunding bonds'
obligations are payable, in whole or part, during the calendar
years 2001 through 2009; and
(4) the city had in place during 1989 an ordinance
providing for excess increments to be distributed under section
469.176, subdivision 2, paragraph (a), clause (4), and the city
modified the ordinance to eliminate all or part of the
distributions of excess increments.
(b) For calendar years 1990 through 2001, in each year the
city must expend for a neighborhood revitalization program, as
established under section 27, an amount of revenues derived from
tax increments equal to at least:
(1) the amount of the additional principal and interest
payments that would have been due for the year on the refunded
bonds, if the bonds had not been refunded; and
(2) the amount of money which would have been distributed
as excess increments under the city ordinance had it not been
modified.
Sec. 27. [469.1831] [NEIGHBORHOOD REVITALIZATION PROGRAMS;
FIRST CLASS CITIES.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the following terms have the meanings given them.
(b) "Neighborhood action plan" means the plan developed
with the participation of neighborhood residents under
subdivision 6.
(c) "Neighborhood revitalization program" or "program"
means the program developed under subdivision 5.
(d) "Neighborhood revitalization program money" or "program
money" means the money derived from tax increments required to
be expended on the program under section 26, paragraph (b).
Subd. 2. [ESTABLISHMENT.] A city of the first class may
establish a neighborhood revitalization program authorizing the
expenditure of neighborhood revitalization program money. The
activities of a program must preserve and enhance within the
neighborhood private and public physical infrastructure, public
health and safety, economic vitality, the sense of community,
and social benefits.
Subd. 3. [PURPOSES; QUALIFYING COSTS.] (a) A neighborhood
revitalization program may provide for expenditure of program
money for the following purposes:
(1) to eliminate blighting influences by acquiring and
clearing or rehabilitating properties that the city finds have
caused or will cause a decline in the value of properties in the
area or will increase the probability that properties in the
area will be allowed to physically deteriorate;
(2) to assist in the development of industrial properties
that provide employment opportunities paying a livable income to
the residents of the neighborhood and that will not adversely
affect the overall character of the neighborhood;
(3) to rehabilitate, renovate, or replace neighborhood
commercial and retail facilities necessary to maintain
neighborhood vitality;
(4) to eliminate health hazards through the removal of
hazardous waste and pollution and return of land to productive
use, if the responsible party is unavailable or unable to pay
for the cost;
(5) to rehabilitate existing housing and encourage
homeownership;
(6) to construct new housing, where appropriate;
(7) to rehabilitate and construct new low-income,
affordable rental housing;
(8) to remove vacant and boarded up houses; and
(9) to rehabilitate or construct public facilities
necessary to carry out the purpose of the program.
Subd. 4. [PROGRAM MONEY; DISTRIBUTION AND
RESTRICTIONS.] (a) Neighborhood revitalization program money may
only be expended in accordance with the program for a purpose
listed in subdivision 3 or this subdivision. Program money may
not be used in those project areas of the city where private
investment is occurring without public sector assistance, except
in cases where program money is being used to remove or
rehabilitate structurally substandard or obsolete buildings.
Revenues derived from tax increments may only be expended for
the purposes otherwise permitted by law, except that
notwithstanding any law to the contrary, the city must pay at
least the following amount of program money, including revenues
derived from tax increments: (1) 15 percent to the school
district, (2) 7.5 percent to the county, and (3) 7.5 percent for
social services. Payment must be made to the county and school
district within 15 days after the city receives the distribution
of increment revenues, provided that the payment for calendar
year 1990 may be made at any time during the year. Payment to
the county for social services delivery shall be paid only after
approval of program and spending plans under paragraph (b).
Payment to the school district for education programs and
services shall be paid only after approval of program and
spending plans under paragraph (b).
(b) The money distributed to the county in a calendar year
must be deducted from the county's levy limit for the following
calendar year. In calculating the county's levy limit base for
later years, the amount deducted must be treated as a local
government aid payment.
The city must notify the commissioner of education of the
amount of the payment made to the school district for the year.
The commissioner shall deduct from the school district's state
education aid payments one-half of the amount received by the
school district.
The program money paid to the school district must be
expended for additional education programs and services in
accordance with the program. The amounts expended by the school
district may not replace existing services.
The money for social services must be paid to the county
for the cost of the provision of social services under the plan,
as approved by the policy board and the county board.
(c) The city must expend on housing programs and related
purposes as provided by the program at least 75 percent of the
program money, after deducting the payments to the school
district and county.
(d) Notwithstanding any other provisions of law to the
contrary, for a city of the first class qualifying under section
469.1781, paragraph (a), program money may be expended anywhere
within the city by the authority for a purpose permitted by this
section for any political subdivision.
Subd. 5. [NEIGHBORHOOD REVITALIZATION PROGRAM;
CONTENTS.] (a) The neighborhood revitalization program must be
developed based on the following general principles:
(1) the social needs of neighborhood residents,
particularly lower income residents, must be addressed to
provide a safe and healthy environment for neighborhood
residents, provide for the self-sufficiency of families, and
increase the economic and social stability of neighborhoods;
(2) the children residing in the neighborhoods must be
given the opportunity for a quality education and the needs of
each neighborhood must be addressed individually wherever
possible; and
(3) the physical structure of the neighborhoods must be
enhanced by providing safe and suitable housing and
infrastructure to increase the desirability of neighborhoods as
places to live.
(b) The neighborhood revitalization program must include
the following:
(1) the identification of the neighborhoods that require
assistance through the program;
(2) a strategy of the citizen participation required under
subdivision 6;
(3) the neighborhood action plans required under
subdivision 6;
(4) the activities of participating organizations
undertaken to address the general principles; and
(5) an evaluation of the success of the neighborhood action
plans.
Subd. 6. [CITIZEN PARTICIPATION REQUIRED.] (a) The
neighborhood revitalization program must be developed with the
process outlined in this subdivision.
(b) The development of the program must include the
preparation of neighborhood action plans. The city must
organize neighborhood planning workshops to prepare the
neighborhood action plans. The neighborhood workshops must
include the participation of, whenever possible, all populations
and interests in each neighborhood including renters,
homeowners, people of color, business owners, representatives of
neighborhood institutions, youth, and the elderly. The
neighborhood action plan must be submitted to the policy board
established under paragraph (c). The city must provide
available resources, information, and technical assistance to
prepare the neighborhood action plans.
(c) Each city that develops a program must establish a
policy board whose membership includes members of the city
council, county board, school board, and citywide library and
park board where they exist appointed by the respective
governing bodies; the mayor or designee of the mayor; and a
representative from the city's house of representatives
delegation and a representative from the city's state senate
delegation appointed by the respective delegation. The policy
board may also include representatives of citywide community
organizations, neighborhood organizations, business owners,
labor, and neighborhood residents. The elected officials who
are members of the policy board may appoint the other members of
the board.
(d) The policy board shall review, modify where
appropriate, and approve, in whole or in part, the neighborhood
action plans and forward its recommendations for final action to
the governing bodies represented on the policy board. The
governing bodies shall review, modify where appropriate, and
give final approval, in whole or in part, to those actions over
which they have programmatic jurisdiction.
Subd. 7. [REVIEW OF PROGRAM COMPLIANCE.] The policy board
must periodically review the activities funded with program
money to determine if the expenditure of the program money is in
compliance with the neighborhood revitalization program.
Sec. 28. Laws 1988, chapter 719, article 12, section 30,
as amended by Laws 1989, chapter 1, section 11, is amended to
read:
Sec. 30. [EFFECTIVE DATES.]
Sections 2, 5, 6, 7, 14, 16, subdivision 4e, 17, and the
provisions of section 15 relating to the duration of hazardous
substance sites and subdistricts are effective for hazardous
substance sites and subdistricts designated and created after
the day following final enactment. Except as otherwise
specifically provided, sections 1, 3, 4, 8 to 12, 16, and 20 to
23, and the provisions of section 15 applying to soils condition
districts are effective for districts and amendments adding
geographic area to an existing district for which the request
for certification was filed with the county auditor after May 1,
1988. Sections 13, 15, 16, subdivision 4g, 18, 24, and 25, and
the provisions of section 21 allowing a change in the fiscal
disparities election are effective May 1, 1988, except as
otherwise specifically provided. Section 16, subdivision 4h, is
effective beginning with administrative costs incurred on May 1,
1990, and notwithstanding Minnesota Statutes, section 469.179,
applies to districts and project areas for which certification
was requested before August 1, 1979. Section 16, subdivision
4i, is effective for districts for which the request for
certification is filed with the county after May 1, 1988, and to
all increment collected after January 1, 1990. Sections 26 to
28 are effective upon approval by the city council of the city
of Virginia and compliance with Minnesota Statutes, section
645.021. Section 29 is effective the day following final
enactment.
Sec. 29. [EXPENDITURE AND REPORT ON NEIGHBORHOOD
REVITALIZATION; CITY OF MINNEAPOLIS.]
Subdivision 1. [EXPENDITURE.] The city of Minneapolis
shall reserve $10,000,000 in 1990 and $20,000,000 each year from
1991 to 2009 from tax increment and other revenues generated
from the Minneapolis community development agency common
project, adopted December 30, 1989, to be expended in
neighborhood revitalization. None of these revenues shall be
expended in 1990.
Subd. 2. [REVIEW AND REPORT.] By January 1, 1991, the city
shall review the collaborative process provided under section
27, subdivision 6, involving the county board and school board
and citizens in developing priorities for addressing problems of
neighborhoods, including housing, safety, drugs, jobs, and
education. The city shall report to the legislature by February
1, 1991, on the collaborative process including any changes the
city recommends, proposed expenditure of funds, and scope of
coordinated activities by county, school, and city.
Sec. 30. [TRANSITION RULES.]
Subdivision 1. [CIRCLE PINES.] Section 21 does not apply
to a tax increment financing district created in the city of
Circle Pines, if the request for certification is filed by June
30, 1990, to the extent increments are used to clear substandard
housing and construct a senior citizen housing project located
outside of the district.
Subd. 2. [ECONOMIC DEVELOPMENT; MIXED USE.] Sections 8,
18, and 21 do not apply to tax increment financing districts
established in a development district approved by an authority
under Minnesota Statutes, sections 469.124 to 469.134 on
February 27, 1989, if the request for certification is filed by
May 1, 1992.
Subd. 3. [COMMERCIAL DEVELOPMENT.] Sections 15 and 21 do
not apply to tax increment financing districts established in a
development district approved by an authority under Minnesota
Statutes, sections 469.124 to 469.134 on April 24, 1989, if the
request for certification is filed by June 1, 1991.
Subd. 4. [MEDICAL FACILITIES.] Section 18 does not apply
to a tax increment financing district in the city of Mankato to
provide assistance to a clinic, medical office, or related
facilities, adjacent to a nonprofit hospital, if the request for
certification is filed by September 30, 1990.
Subd. 5. [LAKEVILLE.] Sections 8 and 18 do not apply to
tax increment financing districts in the city of Lakeville
created within I-35 Redevelopment Project No. 1 and which are
approved by the city, if the request for certification is filed
by September 30, 1990.
Subd. 6. [BURNSVILLE.] Sections 8 and 18 do not apply to a
tax increment financing district established by the city of
Burnsville for a development consisting of an amphitheatre and
solid waste transfer station, if the request for certification
is filed by September 30, 1990.
Subd. 7. [COOK COUNTY.] Section 21 does not apply to an
authority in Cook county for tax increment financing districts
established in a project created by law prior to April 30, 1990,
if the request for certification is filed by May 1, 1992.
Sec. 31. [EFFECTIVE DATE.]
(a) Section 1 is effective for school year 1991-1992 and
for homestead and agricultural credit aid and local government
aids for taxes payable in 1991. Sections 2 to 4, 13, 17, 20,
22, 24, and 26 to 30 are effective May 1, 1990. Sections 5 to
12, 14, 15, 18, 19, and 21 are effective for districts for which
certification is requested after April 30, 1990. Sections 16
and 23 are effective for distributions of excess taxes or tax
increments received after December 31, 1990. Section 25 is
effective for violations occurring after December 31, 1990.
(b) Notwithstanding paragraph (a) or section 1, sections 1,
5 to 12, 14, 15, 18, 19, and 21 apply to a district, if the
request for certification was made after March 31, 1990, and
before May 1, 1990, and none of the following actions were taken
by June 1, 1991: (1) the authority entered into a development
agreement for a site located in the district, (2) bonds were
issued to finance project costs, or (3) the authority acquired
property in the district after April 1, 1990.
ARTICLE 8
EDUCATION FUNDING
Section 1. Minnesota Statutes Second 1989 Supplement,
section 124.83, subdivision 1, is amended to read:
Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive
health and safety revenue a district, including an intermediate
district, must submit to the commissioner of education an
application for aid and levy by June 1 in the previous school
year. The application may be for hazardous substance removal,
fire code compliance, or life safety repairs. The application
must include a health and safety program adopted by the school
district board. The program must include the estimated cost of
the program by fiscal year.
Sec. 2. Minnesota Statutes 1989 Supplement, section
124.83, subdivision 6, is amended to read:
Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] Health and
safety revenue may be used only for approved expenditures
necessary to correct fire safety hazards, life safety hazards,
or for the removal or encapsulation of asbestos from school
buildings or property, asbestos-related repairs, cleanup and
disposal of polychlorinated biphenyls found in school buildings
or property, or the cleanup, removal, disposal, and repairs
related to storing heating fuel or transportation fuels such as
alcohol, gasoline, fuel oil, and special fuel, as defined in
section 296.01. The revenue may not be used for a building or
property or part of a building or property used for
post-secondary instruction or administration or for a purpose
unrelated to elementary and secondary education.
Sec. 3. Minnesota Statutes 1988, section 136D.27,
subdivision 2, is amended to read:
Subd. 2. [PROHIBITED LEVIES.] Notwithstanding section
136D.24 or any other law to the contrary, the joint school board
may not certify, either itself, to any participating district,
or to any cooperating school district, any levies for any
purpose, except the levies authorized by subdivision 1, sections
124.83, subdivision 4, 127.05, 275.125, subdivisions 8c and 14a,
275.48, and 475.61, and for the joint school board's obligations
under section 268.06, subdivision 25, for which a levy is
authorized by section 275.125, subdivision 4.
Sec. 4. Minnesota Statutes 1989 Supplement, section
136D.27, subdivision 3, is amended to read:
Subd. 3. [PROHIBITED STATE AIDS.] Notwithstanding section
136D.24 or any law to the contrary, the department of education
shall not pay, unless explicitly authorized by statute, any
state aid, grant, credit, or other money to the joint school
board, except the aid, credit, or money authorized by sections
121.201, 123.3514, 124.252, 124.32, 124.573, 124.574, and
124.646, 124.83, and chapter 273.
Sec. 5. Minnesota Statutes 1988, section 136D.74,
subdivision 2a, is amended to read:
Subd. 2a. [PROHIBITED LEVIES.] Notwithstanding
subdivisions 2 and 4, section 136D.73, subdivision 3, or any
other law to the contrary, the intermediate school board may not
certify, either itself, to any participating district, or to any
cooperating school district, any levies for any purpose, except
the levies authorized by subdivision 1, sections 124.83,
subdivision 4, 127.05, 275.125, subdivisions 8c and 14a, 275.48,
and 475.61, and for the intermediate school board's obligations
under section 268.06, subdivision 25, for which a levy is
authorized by section 275.125, subdivision 4.
Sec. 6. Minnesota Statutes 1989 Supplement, section
136D.74, subdivision 2b, is amended to read:
Subd. 2b. [PROHIBITED STATE AIDS.] Notwithstanding
subdivision 4 or any law to the contrary, the department of
education shall not pay, unless explicitly authorized, any state
aid, grant, credit, or other money to the intermediate school
board, except the aid, credit, or money authorized by sections
121.201, 123.3514, 124.252, 124.32, 124.573, 124.574, and
124.646, 124.83, and chapter 273.
Sec. 7. Minnesota Statutes 1988, section 136D.87,
subdivision 2, is amended to read:
Subd. 2. [PROHIBITED LEVIES.] Notwithstanding section
136D.84 or any other law to the contrary, the joint school board
may not certify, either itself, to any participating district,
or to any cooperating school district, any levies for any
purpose, except the levies authorized by subdivision 1, sections
124.83, subdivision 4, 127.05, 275.125, subdivisions 8c and 14a,
275.48, and 475.61, and for the joint school board's obligations
under section 268.06, subdivision 25, for which a levy is
authorized by section 275.125, subdivision 4.
Sec. 8. Minnesota Statutes 1989 Supplement, section
136D.87, subdivision 3, is amended to read:
Subd. 3. [PROHIBITED STATE AIDS.] Notwithstanding section
136D.24 or any law to the contrary, the department of education
shall not pay, unless explicitly authorized, any state aid,
grant, credit, or other money to the joint school board, except
for aid, credit, or money authorized by sections 121.201,
123.3514, 124.252, 124.32, 124.573, 124.574, and
124.646, 124.83, and chapter 273.
Sec. 9. Laws 1959, chapter 462, section 3, subdivision 10,
as renumbered, as amended by Laws 1963, chapter 645, section 3,
Laws 1967, chapter 661, section 3, Laws 1969, chapter 994,
section 1, Laws 1975, chapter 320, section 1, Laws 1980, chapter
525, section 2, and Laws 1989, chapter 329, article 5, section
17, is amended to read:
Subd. 10. [SPECIAL SCHOOL DISTRICT NO. 1; MINNEAPOLIS,
CITY OF; EXTENDING BONDING AUTHORITY.] As used in this act the
word "project" shall mean any proposed new or enlarged school
building site, any proposed new school building or any proposed
new addition to a school building, and "undertaking" shall mean
any other purpose for which bonds may be issued as authorized in
this subdivision. Subject to the limitations of subdivision 11,
the special independent school district of Minneapolis may issue
and sell bonds with the approval of 53 percent of the electors
voting on the question at a general school district election or
at a school district election held at the same time and place
within the district as a state general or primary election, as
determined by the board of education. Subject to the provisions
of subdivision 11, the school district may also by a two-thirds
majority vote of all the members of its board of education and
without any election by the voters of the district, issue and
sell in each calendar year bonds of the district in an amount
not to exceed one-half of one percent of the assessed value of
the taxable property in the district (plus, for calendar year
1990 years 1990 to 1996, an amount not to exceed $7,500,000;
with an additional provision that any amount of bonds so
authorized for sale in a specific year and not sold can be
carried forward and sold in the year immediately following);
provided, however, that the board shall submit the list of
projects and undertakings to be financed by a proposed issue to
the city planning commission as provided in subdivision 11(c).
All bonds of the school district shall be payable in not more
than 30 years. The proceeds of the sale of the bonds shall be
used only for the rehabilitating, remodeling, expanding and
equipping of existing school buildings and for the acquisition
of sites, construction and equipping of new school buildings,
and for acquisition and betterment purposes, and no part of the
proceeds shall be used for maintenance. The provisions of this
act shall apply to the issuance and sale of the bonds and to the
purposes for which the bonds may be issued notwithstanding any
provisions to the contrary in any other existing law relating
thereto.
Sec. 10. [ST. PAUL BONDING AUTHORIZATION; TAX LEVY FOR
DEBT SERVICE.]
Subdivision 1. [BONDING AUTHORIZATION.] To provide funds
to acquire or better facilities, independent school district No.
625 may by two-thirds majority vote of all the members of the
board of directors issue general obligation bonds in one or more
series in calendar years 1990 and 1991 as provided in this
section. The aggregate principal amount of any bonds issued
under this section for each calendar year must not exceed
$9,000,000. Issuance of the bonds is not subject to Minnesota
Statutes, section 475.58 or 475.59. As with other bonds issued
by independent school district No. 625, the first sentence of
Minnesota Statutes, section 475.53, subdivision 5, does not
apply to issuance of the bonds. The bonds must otherwise be
issued as provided in Minnesota Statutes, chapter 475. The
authority to issue bonds under this section is in addition to
any bonding authority authorized by Minnesota Statutes, chapter
124, or other law. The amount of bonding authority authorized
under this section must be disregarded in calculating the
bonding limit of Minnesota Statutes, chapter 124, or any other
law other than Minnesota Statutes, section 475.53, subdivision 4.
Subd. 2. [TAX LEVY FOR DEBT SERVICE.] To pay the principal
of and interest on bonds issued under subdivision 1, independent
school district No. 625 must levy a tax annually in an amount
sufficient under Minnesota Statutes, section 475.61,
subdivisions 1 and 3, to pay the principal of and interest on
the bonds. The tax authorized under this section is in addition
to the taxes authorized to be levied under Minnesota Statutes,
chapter 124A or 275, or other law.
Subd. 3. [EFFECTIVE DATE; LOCAL APPROVAL.] Subdivisions 1
and 2 are effective the day after the governing body of
independent school district No. 625 complies with Minnesota
Statutes, sections 645.021, subdivision 3.
Sec. 11. [DULUTH BONDING.]
Subdivision 1. [BONDING AUTHORIZATION.] To provide funds
for the acquisition and betterment, as defined in Minnesota
Statutes, section 475.51, subdivisions 7 and 8, of existing and
new facilities, independent school district No. 709 may, by
two-thirds majority vote of all the members of the school board,
issue general obligation bonds in one or more series in calendar
years 1990 and 1991 as provided in this section. The aggregate
principal amount of any bonds issued under this section for
calendar years 1990 and 1991 may not exceed $9,600,000.
Issuance of the bonds is not subject to Minnesota Statutes,
section 475.58 or 475.59. As with other bonds issued by
independent school district No. 709, Minnesota Statutes, section
475.53, subdivision 5, does not apply to issuance of the bonds.
If the school board proposes to issue bonds under this section,
it must publish a resolution describing the proposed bond issue
once each week for two successive weeks in a legal newspaper
published in the city of Duluth. The bonds may be issued
without the submission of the question of their issue to the
electors unless within 30 days after the second publication of
the resolution a petition requesting an election signed by a
number of people residing in the school district equal to 15
percent of the people registered to vote in the last general
election in the school district is filed with the recording
officer. If such a petition is filed, no bonds shall be issued
under this section unless authorized by a majority of the
electors voting on the question at the next general or special
election called to decide the issue. The bonds must otherwise
be issued as provided in Minnesota Statutes, chapter 475. The
authority to issue bonds under this section is in addition to
any bonding authority authorized by Minnesota Statutes, chapter
124, or other law. The amount of bonding authority authorized
under this section must be disregarded in calculating the
bonding limit of chapter 124 or any other law other than
Minnesota Statutes, section 475.53, subdivision 4, as made
applicable to independent school district No. 709 by Laws 1973,
chapter 266.
Subd. 2. [TAX LEVY FOR DEBT SERVICE.] To pay the principal
of and interest on bonds issued under subdivision 1, independent
school district No. 709 shall levy a tax in an amount sufficient
under Minnesota Statutes, section 475.61, subdivisions 1 and 3,
to pay the principal of and interest on the bonds. The tax
authorized under this section is in addition to the taxes
authorized to be levied under Minnesota Statutes, chapter 124A
or 275, or other law.
Sec. 12. [TAXPAYER NOTIFICATION.]
Subdivision 1. [APPLICABILITY.] This section applies to
any newly authorized bonding authority granted under section 9
or 10. This newly authorized bonding authority is in addition
to any existing bonding authority of a school district.
Subd. 2. [MEETING.] A school board must hold a public
meeting in each state senate district that is located wholly or
partly within the boundaries of the school district. The school
board must hold the public meeting to obtain comments and
recommendations from residents on the proposed sale of newly
authorized bonds described under subdivision 1. The meeting
must be in addition to any other scheduled meeting of the school
board or its committees. The meeting must be held in an
accessible place and at a convenient time for the majority of
residents in the affected state senate district. Meetings must
be held in each state senate district each year the district
sells bonds beginning with calendar year 1990.
Subd. 3. [NOTICE.] A school board must prepare and have
delivered by mail a notice of the public meeting on the proposed
sale of newly authorized bonds to each senate district postal
patron residing within the school district. The notice must be
mailed at least 15 days but not more than 30 days prior to the
scheduled date of the meeting required for each state senate
district under subdivision 2. Notice of the meeting in each
state senate district also must be posted in the administrative
office of the school district and must be published in the
official newspaper of the city in which the school district is
located twice during the 14 days preceding the date of the
meeting.
The notice must contain the following information:
(1) the proposed amount of bonds to be issued;
(2) the dollar amount of the levy increase necessary to pay
the principal and interest on the newly authorized bonds;
(3) the estimated levy amount and net tax capacity rate
necessary to make the debt service payments on any existing
outstanding debt;
(4) the projected effects on individual property types.
The notice must show the projected annual dollar increase and
net tax capacity rate increase for a representative range of
residential homestead, residential nonhomestead, apartment, and
commercial-industrial properties located within each state
senate district; and
(5) the required levy and principal and interest on all
outstanding bonds in addition to the bonds proposed under clause
(1).
Subd. 4. [BOND AUTHORIZATION.] A school board may vote to
issue bonds newly authorized under section 9 or 10 only after
complying with the requirements under subdivisions 2 and 3, and
an official record of all the meetings in the school district
has been filed with the commissioner of education.
Sec. 13. [COLERAINE, LAKE SUPERIOR, CHISHOLM, ELY,
EVELETH, GILBERT, BABBITT, AND ST. LOUIS COUNTY SCHOOL DISTRICT
BONDS.]
Subdivision 1. [AUTHORIZATION.] Independent school
district No. 316, Coleraine, may issue bonds in an aggregate
principal amount not exceeding $950,000; independent school
district No. 381, Lake Superior, may issue bonds in an aggregate
principal amount not exceeding $300,000; independent school
district No. 695, Chisholm, may issue bonds in an aggregate
principal amount not exceeding $3,500,000; independent school
district No. 696, Ely, may issue bonds in an aggregate principal
amount not exceeding $1,000,000; independent school district No.
697, Eveleth, may issue bonds in an aggregate principal amount
not exceeding $3,500,000; independent school district No. 699,
Gilbert, may issue bonds in an aggregate principal amount not
exceeding $1,000,000; and independent school district No. 692,
Babbitt, may issue bonds in an aggregate principal amount not
exceeding $500,000.
Subd. 2. [AUTHORIZATION.] Independent school district No.
710, St. Louis county, may issue bonds in an aggregate amount
not to exceed $1,750,000.
Subd. 3. [USES; PROCESS.] The bonds authorized under
subdivisions 1 and 2 may be issued in addition to any bonds
already issued or authorized. The proceeds of the bonds shall
be used to provide funds to construct, equip, furnish, remodel,
rehabilitate, and acquire land for school facilities and
buildings and to pay any architects', engineers', and legal fees
incidental to those purposes or the sale. Except as permitted
by this section, the bonds shall be authorized, issued, sold,
executed, and delivered in the manner provided by Minnesota
Statutes, chapter 475. A referendum on the question of issuing
the bonds authorized under subdivision 2 is not required. A
resolution of the board levying taxes for the payment of the
bonds and interest on them as authorized by this section and
pledging the proceeds of the levies for the payment of the bonds
and interest on them shall be deemed to be in compliance with
the provisions of chapter 475 with respect to the levying of
taxes for their payment.
Subd. 4. [APPROPRIATION.] There is annually appropriated
from the distribution of taconite production tax revenues to the
taconite environmental protection fund pursuant to Minnesota
Statutes, section 298.28, subdivision 11, and to the northeast
Minnesota economic protection trust pursuant to section 298.28,
subdivisions 9 and 11, in equal shares, an amount sufficient to
pay when due 80 percent of the principal and interest on the
bonds issued under subdivision 1 and 100 percent of the
principal and interest on the bonds issued under subdivision 2.
If the annual distribution to the northeast Minnesota economic
protection trust is insufficient to pay its share after
fulfilling any obligations of the trust under Minnesota
Statutes, section 298.225 or 298.293, the deficiency shall be
appropriated from the taconite environmental protection fund.
Subd. 5. [DISTRICT OBLIGATIONS.] Bonds issued under
authority of this section shall be the general obligations of
the school district, for which its full faith and credit and
unlimited taxing powers shall be pledged. If there are any
deficiencies in the amount received pursuant to subdivision 4,
they shall be made good by general levies, not subject to limit,
on all taxable properties in the district in accordance with
Minnesota Statutes, section 475.74. If any deficiency levies
are necessary, the school board may effect a temporary loan or
loans on certificates of indebtedness issued in anticipation of
them to meet payments of principal or interest on the bonds due
or about to become due.
Subd. 6. [DISTRICT LEVY.] The school board of each school
district authorized to issue bonds under subdivision 1 shall by
resolution levy on all property in the school district subject
to the general ad valorem school tax levies, and not subject to
taxation under Minnesota Statutes, sections 298.23 to 298.28, a
direct annual ad valorem tax for each year of the term of the
bonds in amounts that, if collected in full, will produce the
amounts needed to meet when due 20 percent of the principal and
interest payments on the bonds. A copy of the resolution shall
be filed, and the necessary taxes shall be extended, assessed,
collected, and remitted in accordance with Minnesota Statutes,
section 475.61.
Subd. 7. [LEVY LIMITATIONS.] Taxes levied pursuant to this
section shall be disregarded in the calculation of any other tax
levies or limits on tax levies provided by other law.
Subd. 8. [BONDING LIMITATIONS.] Bonds may be issued under
authority of this section notwithstanding any limitations upon
the indebtedness of a district, and their amounts shall not be
included in computing the indebtedness of a district for any
purpose, including the issuance of subsequent bonds and the
incurring of subsequent indebtedness.
Subd. 9. [TERMINATION OF APPROPRIATION.] The appropriation
authorized in subdivision 4 shall terminate upon payment or
maturity of the last of those bonds.
Subd. 10. [LOCAL APPROVAL.] This section is effective for
independent school district No. 316, the day after its governing
body complies with Minnesota Statutes, section 645.021,
subdivision 3, and for independent school district No. 381, the
day after its governing body complies with Minnesota Statutes,
section 645.021, subdivision 3, and for independent school
district No. 695, the day after its governing body complies with
Minnesota Statutes, section 645.021, subdivision 3, and for
independent school district No. 696, the day after its governing
body complies with Minnesota Statutes, section 645.021,
subdivision 3, and for independent school district No. 697, the
day after its governing body complies with Minnesota Statutes,
section 645.021, subdivision 3, and for independent school
district No. 699, the day after its governing body complies with
Minnesota Statutes, section 645.021, subdivision 3, and for
independent school district No. 692, the day after its governing
body complies with Minnesota Statutes, section 645.021,
subdivision 3, and for independent school district No. 710, the
day after its governing body complies with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 14. [FUND BALANCE CORRECTION.]
Independent school district No. 624, White Bear Lake, is
eligible for reinstatement of the foundation levy lost through
the fund balance reduction provisions of the foundation formula
for the 1985-1986, 1986-1987, and 1987-1988 school years if the
fund balance reduction was the result of either referendum
revenues added to the net unappropriated general fund balance or
a transfer of funds from the capital expenditure account to the
general fund. The district may make a special levy in an amount
not to exceed the amount of the levy reduction caused by the
tier two foundation levy reductions for the 1985-1986,
1986-1987, and 1987-1988 school years, but not to exceed
$1,289,418. The district may levy part of the amount:
(1) in 1990 and the remainder in 1991; or
(2) in 1990 and 1991 and the remainder in 1992.
The district may not receive foundation aid, general education
aid, or any other aid as a result of levying under this section.
ARTICLE 9
COURT FUNDING
Section 1. Minnesota Statutes Second 1989 Supplement,
section 275.50, subdivision 5, is amended to read:
Subd. 5. Notwithstanding any other law to the contrary for
taxes levied in 1989 payable in 1990 and subsequent years,
"special levies" means those portions of ad valorem taxes levied
by governmental subdivisions to:
(a) for taxes levied in 1990, payable in 1991 and
subsequent years, pay the costs not reimbursed by the state or
federal government, of payments made to or on behalf of
recipients of aid under any public assistance program authorized
by law, and the costs of purchase or delivery of social
services. The aggregate amounts levied under this clause for
the costs of purchase or delivery of social services and income
maintenance programs, other than those identified in section
273.1398, subdivision 1, paragraph (i), are subject to a maximum
increase over the amount levied for the previous year of 12
percent for counties within the metropolitan area as defined in
section 473.121, subdivision 2, or counties outside the
metropolitan area but containing a city of the first class, and
15 percent for other counties. For purposes of this clause,
"income maintenance programs" include income maintenance
programs in section 273.1398, subdivision 1, paragraph (i), to
the extent the county provides benefits under those programs
over the statutory mandated standards. Effective with taxes
levied in 1990, the portion of this special levy for human
service programs identified in section 273.1398, subdivision 1,
paragraph (i), is eliminated;
(b) pay the costs of principal and interest on bonded
indebtedness except on bonded indebtedness issued under section
471.981, subdivisions 4 to 4c, or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due
in the year preceding the year for which the levy limit is
calculated on municipal liquor store bonds;
(c) pay the costs of principal and interest on certificates
of indebtedness, except tax anticipation or aid anticipation
certificates of indebtedness, issued for any corporate purpose
except current expenses or funding an insufficiency in receipts
from taxes or other sources or funding extraordinary
expenditures resulting from a public emergency; and to pay the
cost for certificates of indebtedness issued pursuant to
sections 298.28 and 298.282;
(d) fund the payments made to the Minnesota state armory
building commission pursuant to section 193.145, subdivision 2,
to retire the principal and interest on armory construction
bonds;
(e) provide for the bonded indebtedness portion of payments
made to another political subdivision of the state of Minnesota;
(f) pay the amounts required, in accordance with section
275.075, to correct for a county auditor's error of omission but
only to the extent that when added to the preceding year's levy
it is not in excess of an applicable statutory, special law or
charter limitation, or the limitation imposed on the
governmental subdivision by sections 275.50 to 275.56 in the
preceding levy year;
(g) pay amounts required to correct for an error of
omission in the levy certified to the appropriate county auditor
or auditors by the governing body of a city or town with
statutory city powers in a levy year, but only to the extent
that when added to the preceding year's levy it is not in excess
of an applicable statutory, special law or charter limitation,
or the limitation imposed on the governmental subdivision by
sections 275.50 to 275.56 in the preceding levy year;
(h) pay amounts required by law to be paid to pay the
interest on and to reduce the unfunded accrued liability of
public pension funds in accordance with the actuarial standards
and guidelines specified in sections 356.215 and 356.216 reduced
by 106 percent of the amount levied for that purpose in 1976,
payable in 1977. For the purpose of this special levy, the
estimated receipts expected from the state of Minnesota pursuant
to sections 69.011 to 69.031 or any other state aid expressly
intended for the support of public pension funds shall be
considered as a deduction in determining the required levy for
the normal costs of the public pension funds. No amount of
these aids shall be considered as a deduction in determining the
governmental subdivision's required levy for the reduction of
the unfunded accrued liability of public pension funds;
(i) to compensate the state for the cost of a reassessment
ordered by the commissioner of revenue pursuant to section
270.16;
(j) pay the debt service on tax increment financing revenue
bonds to the extent that revenue to pay the bonds or to maintain
reserves for the bonds is insufficient as a result of the
provisions of Laws 1988, chapter 719, article 5;
(k) pay the cost of hospital care under section 261.21;
(l) pay the unreimbursed costs incurred in the previous
year to satisfy judgments rendered against the governmental
subdivision by a court of competent jurisdiction in any tort
action, or to pay the costs of settlements out of court against
the governmental subdivision in a tort action when substantiated
by a stipulation for the dismissal of the action filed with the
court of competent jurisdiction and signed by both the plaintiff
and the legal representative of the governmental subdivision,
provided that an appeal for the unreimbursed costs under this
clause was approved by the commissioner of revenue under section
275.51, subdivision 3;
(m) pay the expenses reasonably and necessarily incurred in
preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes such as earthquake, fire, flood, wind storm, wave
action, oil spill, water contamination, air contamination, or
drought in accordance with standards formulated by the emergency
services division of the state department of public safety,
provided that an appeal for the expenses incurred under this
clause were approved by the commissioner of revenue under
section 275.51, subdivision 3;
(n) pay a portion of the losses in tax receipts to a city
due to tax abatements or court actions in the year preceding the
current levy year, provided that an appeal for the tax losses
was approved by the commissioner of revenue under section
275.51, subdivision 3. This special levy is limited to the
amount of the losses times the ratio of the nonspecial levies to
total levies for taxes payable in the year the abatements were
granted. County governments are not authorized to claim this
special levy;
(o) pay the operating cost of regional library services
authorized under section 134.34, subject to a maximum increase
over the previous year of the greater of (1) 103 percent
multiplied by one plus the percentage increase determined for
the governmental subdivision under section 275.51, subdivision
3h, clause (b), or (2) six percent. If a governmental
subdivision elected to include some or all of its levy for
libraries within its adjusted levy limit base in the prior year,
but elects to claim the levy as a special levy in the current
levy year, the allowable increase is determined by applying the
greater percentage determined under clause (1) or (2) to the
total amount levied for libraries in the prior levy year. After
levy year 1989, the increase must not be determined using a base
amount other than the amount that could have been levied as a
special levy in the prior year. In no event shall the special
levy be less than the minimum levy required under sections
134.33 and 134.34, subdivisions 1 and 2;
(p) pay the amount of the county building fund levy
permitted under section 373.40, subdivision 6;
(q) pay the county's share of the costs levied in 1989,
1990, and 1991 for the Minnesota cooperative soil survey under
Minnesota Statutes 1988, section 40.07, subdivision 15;
(r) for taxes levied in 1989, payable in 1990 only, pay the
cost incurred for the minimum share required by counties levying
for the first time under section 134.34 as required under
section 134.341. For taxes levied in 1990, and thereafter,
counties levying under this provision must levy under clause
(o), and their allowable increase must be determined with
reference to the amount levied in 1989 under this paragraph;
(s) for taxes levied in 1989, payable in 1990 only, provide
an amount equal to 50 percent of the estimated amount of the
reduction in aids to a county under sections 273.1398,
subdivision 2, paragraph (d), and 477A.012, subdivision 3, for
aids payable in 1990;
(t) for taxes levied in 1990 only by a county in the eighth
judicial district, provide an amount equal to the amount of the
levy, if any, that is required under Laws 1989, chapter 335,
article 3, section 54, subdivision 8, as amended by section 14;
(u) for taxes levied in 1989, payable in 1990 only, pay the
costs not reimbursed by the state or federal government:
(i) for the costs of purchase or delivery of social
services. The aggregate amounts levied under this item are
subject to a maximum increase over the amount levied in the
previous year of 12 percent for counties within the metropolitan
area as defined in section 473.121, subdivision 2, or counties
outside the metropolitan area but containing a city of the first
class, and 15 percent for other counties.
(ii) for payments made to or on behalf of recipients of aid
under any public assistance program authorized by law. The
aggregate amounts levied under this item are subject to a
maximum increase over the amount levied in the previous year of
12 percent and must be used only for the public assistance
programs; and
(v) pay an amount of up to 25 percent of the money sought
for distribution and approved under section 115A.557,
subdivision 3, paragraph (b), clause (3).
If the amount levied in 1989 is less than the actual
expenditures needed for these programs for 1990, the difference
between the actual expenditures and the amount levied may be
levied in 1990 as a special levy. If the amount levied in 1989
is greater than the actual expenditures needed for these
programs for 1990, the difference between the amount levied and
the actual expenditures shall be deducted from the 1990 levy
limit, payable in 1991.
Sec. 2. Minnesota Statutes Second 1989 Supplement, section
275.51, subdivision 3f, as amended by Laws 1990, chapter 480,
article 7, section 19, is amended to read:
Subd. 3f. [LEVY LIMIT BASE.] (a) The property tax levy
limit base for governmental subdivisions for taxes levied in
1988 shall be equal to the total actual levy for taxes payable
in 1988 with additions and subtractions as specified in
paragraphs (b) and (c).
(b) The amounts to be added to the actual 1988 levy are (1)
the amount of local government aid the governmental subdivision
was certified to receive in 1988 under sections 477A.011 to
477A.014, (2) its 1988 taconite aids under sections 298.28 and
298.282, and (3) its 1988 wetlands and native prairie
reimbursements under Minnesota Statutes 1986, sections 273.115,
subdivision 3, and 273.116, subdivision 3.
(c) The amounts to be subtracted from the actual 1988 levy
are (1) any special levies claimed for taxes payable in 1988
pursuant to Laws 1987, chapter 268, article 5, section 12,
subdivision 4, clauses (1), (2), (3), and (4); and (2) for a
governmental subdivision participating in a regional library
system receiving grants from the department of education under
section 134.34, the amount levied for taxes payable in 1988 for
the operating costs of a public library service.
(d) For taxes levied in 1989 and subsequent years, a
governmental subdivision's levy limit base is equal to its
adjusted levy limit base for the preceding year, provided that
for taxes levied in 1989, the amount of the administrative
reimbursement aid received in 1988 shall be added to the base.
(e) For taxes levied by a county in 1989, the levy limit
base determined under paragraph (d) shall be reduced by an
amount equal to 90 percent of the cost of public defender
services for felonies and gross misdemeanors and the costs of
law clerks in the county that are assumed by the state during
calendar year 1990, less 103 percent of one-half the amount of
fees collected by the courts in the county during calendar year
1988. For taxes levied in 1990, the levy limit base determined
under paragraph (d) shall first be increased by the product of
(1) the amount deducted under this paragraph for taxes levied in
1989 and (2) the adjustments under subdivision 3h, paragraphs
(a) and (b) for taxes levied in 1989, and then shall be reduced
by an amount equal to the cost of public defender services for
felonies and gross misdemeanors and the cost of law clerks in
the county that are assumed by the state during calendar year
1991, less the amount of fees collected by the courts in the
county during calendar year 1989, computed at the rate of $30
for civil and probate filings and $20 for marriage dissolutions.
(f) For taxes levied in 1989 only, by a county that is
located in the eighth judicial district, the levy limit base
determined under paragraphs (d) and (e) shall be further reduced
by an amount equal to 90 percent of the cost of operation of the
trial courts in the county during calendar year 1990 that are
assumed by the state and for which an appropriation is provided,
less 103 percent of the sum of (1) the remaining one-half of the
amount of fees and (2) 100 percent of the amount of fines
collected by the courts in the county during calendar year
1988. For taxes levied in 1990 only by those counties, the levy
limit base determined under paragraphs (d) and (e) shall first
be increased by the product of (1) the amount deducted under
this paragraph for taxes levied in 1989 and (2) the adjustments
under subdivision 3h, paragraphs (a) and (b) for taxes levied in
1989, and then shall be reduced by an amount equal to the cost
of operation of the trial courts in the county during the first
six months of calendar year 1991 that are assumed by the state
less 50 percent of the amount of fines collected by the courts
during calendar year 1989.
(g) By October 15, 1989, the board of public defense shall
determine and certify to the commissioner of revenue the pro
rata share for each county of the state-financed public defense
services described in paragraph (e) during the six-month period
beginning July 1, 1990. By October 15, 1989, the supreme court
shall determine and certify to the department of revenue for
each county the pro rata share for each county of the cost of
providing law clerks during the three-month period beginning
October 1, 1990, plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during calendar year 1990.
By July 15, 1990, the board of public defense shall
determine and certify to the department of revenue the pro rata
share for each county of the state-financed public defense
services described in paragraph (e) during calendar year 1991.
By July 15, 1990, the supreme court shall determine and certify
to the department of revenue for each county the pro rata share
for each county of the cost of providing law clerks during
calendar year 1991 plus, for each county located in the eighth
judicial district, the cost of operation of the trial courts
during the first six months of 1991.
(h) For taxes levied in a county in 1991, the levy limit
base shall be reduced by an amount equal to the cost in the
county of court reporters, judicial officers, and district court
referees and the expenses of law clerks and court reporters as
authorized in sections 484.545, subdivision 3, and 486.05,
subdivisions 1 and 1a, as certified by the supreme court
pursuant to section 477A.012, subdivision 4.
(i) If a governmental subdivision received an adjustment to
its levy limit base for taxes levied in 1988 under section
275.51, subdivision 3j, its levy limit base for taxes levied in
1989 must be reduced by the lesser of (1) the adjustment under
section 275.51, subdivision 3j, or (2) the difference between
its (i) levy limit for taxes levied in 1988 and its (ii) total
actual levy for taxes levied in 1988 minus any special levies
claimed for taxes levied in 1988 under section 275.50,
subdivision 5.
Sec. 3. Minnesota Statutes Second 1989 Supplement, section
357.021, subdivision 1a, is amended to read:
Subd. 1a. (a) Every person, including the state of
Minnesota and all bodies politic and corporate, who shall
transact any business in the district court, shall pay to the
court administrator of said court the sundry fees prescribed in
subdivision 2. When the public authority responsible for child
support enforcement is a party to any action or proceeding in
the district court or according to section 518.551, subdivision
10, no fee is required under this section. The court
administrator shall transmit the fees monthly to the county
treasurer who shall forward the funds to the state treasurer for
deposit in the state treasury and credit to the general fund.
(b) In a county which has a screener-collector position,
fees paid by a county pursuant to this subdivision shall be
transmitted monthly to the county treasurer, who shall apply the
fees first to reimburse the county for the amount of the salary
paid for the screener-collector position. The balance of the
fees collected shall then be forwarded to the state treasurer
for deposit in the state treasury and credited to the general
fund. A screener-collector position for purposes of this
paragraph is an employee whose function is to increase the
collection of fines and to review the incomes of potential
clients of the public defender, in order to verify eligibility
for that service.
(c) No fee is required under this section from the public
authority or the party the public authority represents in an
action for:
(1) child support enforcement, medical assistance
enforcement, or establishment of parentage in the district
court, or child or medical support enforcement conducted by an
administrative law judge in an administrative hearing under
section 518.551, subdivision 10;
(2) civil commitment under chapter 253B;
(3) the appointment of a public conservator or public
guardian or any other action under chapters 252A and 525;
(4) wrongfully obtaining public assistance under section
256.98 or 256D.07, or recovery of overpayments of public
assistance;
(5) court relief under chapter 260;
(6) forfeiture of property under sections 609.531 to
609.5317;
(7) recovery of amounts issued by political subdivisions or
public institutions under sections 246.52, 252.27, 256.045,
256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, and
260.251, or other sections referring to other forms of public
assistance; or
(8) restitution under section 611A.04.
Sec. 4. Minnesota Statutes 1988, section 477A.012,
subdivision 3, is amended to read:
Subd. 3. [AID OFFSET FOR COURT COSTS.] (a) There shall be
deducted from the payment to a county under this section an
amount representing the cost to the state for assumption of the
cost (1) of district court administration and operation of the
trial court information system in the county and, (2) in the
case of Hennepin and Ramsey counties, of public defense services
in juvenile and misdemeanor cases in the county and (3) in the
case of a county that is located in the eighth judicial
district, of the cost of operation of the trial courts in the
county during calendar year 1991 less the amount of any special
levy under Laws 1989, chapter 335, article 3, section 54,
subdivision 8, as amended by section 14. The amount of the
amount of the deduction shall be computed as provided in this
subdivision.
(b) By October 15, 1989, the board of public defense shall
determine and certify to the department of revenue the cost of
the state-financed public defense services in juvenile and
misdemeanor cases for Hennepin and Ramsey counties during the
fiscal year beginning the following July 1. By October 15,
1989, the supreme court shall determine and certify to the
department of revenue for each county, except counties located
in the eighth judicial district, the pro rata estimated share
for each county of district court administration and trial court
information system costs during the fiscal year beginning on the
following July 1.
(c) One-half of the amount computed under paragraph (b) for
each county shall be deducted from each payment to the county
under section 477A.015 in 1990 and each subsequent year.
One-half of the sum of the amounts computed under paragraph (f)
shall be deducted from each payment to a county located in the
eighth judicial district under section 477A.015 in 1991 only;
except that, if the legislature in its 1991 session does not
appropriate funds for the operation of the trial courts in the
eighth judicial district for the period July 1, 1991, through
December 31, 1991, only 25 percent of the sum of the amounts
computed under paragraph (f) shall be deducted from each payment
to each county in the eighth judicial district.
(d) If the amount computed under paragraph (b) plus, if
applicable, the amount deducted under paragraph (e), exceeds the
amount payable to a county under subdivision 1, the excess shall
be deducted from the aid payable to the county under section
273.1398, subdivision 2.
(e) By July 15, 1990, the board of public defense and the
supreme court shall determine and certify to the department of
revenue the final actual budgeted amounts for the activities
described in paragraph (b). If the amount certified under
paragraph (b) is greater than the amount certified under this
paragraph, the excess shall be deducted from the aid payable to
the county in 1991 and each subsequent year under this section.
If the amount certified under paragraph (b) is less than the
amount certified under this paragraph, the difference shall be
added to the aid payable to the county in 1991 and each
subsequent year under this section.
(f) By August 15, 1990, the supreme court shall determine
and certify to the department of revenue for each county located
in the eighth judicial district, the county's pro rata estimated
share of the operation of the trial courts in the county for
calendar year 1991, less an amount equal to the fees and fines
collected by the trial courts in the county during calendar year
1989. By August 15, 1990, the board of public defense shall
determine and certify to the department of revenue for each of
those counties, the county's pro rata estimated share of the
base funding for the cost of court-appointed defense services
other than those specified in section 275.51, subdivision 3f,
for calendar year 1991.
Sec. 5. Minnesota Statutes 1988, section 611.20, is
amended to read:
611.20 [SUBSEQUENT ABILITY TO PAY COUNSEL.]
If at any time after the state public defender or a
district public defender has been directed to act, the court
having jurisdiction in the matter is satisfied that the
defendant or other person is financially able to obtain counsel
or to make partial payment for the representation, the court may
terminate the appointment of the public defender, unless the
person so represented is willing to pay therefor. If a public
defender continues the representation, the court shall direct
payment for such representation as the interests of justice may
dictate. Any payments directed by the court shall be deposited
with recorded by the court administrator thereof and the court
administrator shall forthwith remit the amount thereof to the
treasurer of the governmental unit chargeable with the
compensation of such public defender for deposit in the treasury
to the credit of the general revenue fund of such governmental
unit or units, who shall transfer the payments to the
governmental unit responsible for the costs of the public
defender.
If at any time after appointment a public defender should
have reason to believe that a defendant is financially able to
obtain counsel or to make partial payment for counsel, it shall
be the public defender's duty to so advise the court so that
appropriate action may be taken.
Sec. 6. Minnesota Statutes 1988, section 611.215,
subdivision 1, is amended to read:
Subdivision 1. [STRUCTURE; MEMBERSHIP.] (a) The state
board of public defense is a part of, but is not subject to the
administrative control of, the judicial branch of government.
The state board of public defense shall consist of seven members
including:
(1) a district court judge appointed by the supreme court;
(2) four attorneys admitted to the practice of law, well
acquainted with the defense of persons accused of crime, but not
employed as prosecutors, appointed by the supreme court; and
(3) two public members appointed by the governor.
(b) All members shall demonstrate an interest in
maintaining a high quality, independent defense system for those
who are unable to obtain adequate representation. The terms,
compensation, and removal of members shall be as provided in
section 15.0575. The chair shall be elected by the members from
among the membership for a term of two years.
(c) In addition, the state board of public defense shall
consist of an 11-member a nine-member ad hoc board when
considering the appointment of district public defenders under
section 611.26, subdivision 2. The terms of district public
defenders currently serving shall terminate in accordance with
the staggered term schedule set forth in section 611.26,
subdivision 2.
Sec. 7. Minnesota Statutes 1989 Supplement, section
611.26, subdivision 2, is amended to read:
Subd. 2. The state board of public defense shall appoint a
district public defender. When appointing a district public
defender, the state board of public defense membership shall be
increased to include two judges of the district and two county
commissioners of the counties within the district. The
additional members shall serve only in the capacity of selecting
the district public defender. The judges within the district
shall elect their two ad hoc members. The two county
commissioners within the district shall be selected by the
county boards of the counties within the district. The ad hoc
state board of public defense shall appoint a district public
defender only after requesting and giving reasonable time to
receive any recommendations from the public, the local bar
association, and the judges of the district, and the county
commissioners within the district. Each district public
defender shall be a qualified attorney, licensed to practice law
in this state. The district public defender shall be appointed
for a term of four years, beginning November 1, pursuant to the
following staggered term schedule: (1) in 1987, the third and
eighth districts; (2) in 1988, the first and tenth districts;
(3) in 1989, the fifth and ninth districts; (4) in 1990, the
sixth and seventh districts; (5) in 1991, the second, fourth
third, and eighth districts; and (6) in 1992, the first, third
fourth, and tenth districts. The district public defenders
shall serve for staggered four-year terms and may be removed for
cause upon the order of the state board of public defense.
Vacancies in the office shall be filled by the appointing
authority for the unexpired term.
Sec. 8. Minnesota Statutes 1988, section 611.26,
subdivision 3, is amended to read:
Subd. 3. The compensation of the district public defender
shall be set by the board of public defense. The compensation
of each assistant district public defender shall be set by the
district public defender with the approval of the board of
public defense. The compensation for district public defenders
may not exceed the prevailing compensation for county attorneys
within the district, and the compensation for assistant district
public defenders may not exceed the prevailing compensation for
assistant county attorneys within the district. To assist the
board of public defense in determining prevailing compensation
under this subdivision, counties shall include in their review
and comment on proposed district public defender budgets provide
to the board information on the compensation of county
attorneys, including salaries and benefits, rent, secretarial
staff, and other pertinent budget data. For purposes of this
subdivision, compensation means salaries, cash payments, and
employee benefits including paid time off and group insurance
benefits, and other direct and indirect items of compensation
including the value of office space provided by the employer.
Sec. 9. Minnesota Statutes 1988, section 611.27, is
amended to read:
611.27 [FINANCING THE OFFICES OF DISTRICT PUBLIC DEFENDER.]
Subdivision 1. (a) The total compensation and expenses,
including office equipment and supplies, of the district public
defender are to be paid by the county or counties comprising the
judicial district.
(b) A district public defender shall annually submit a
comprehensive budget to the state board of public defense. The
budget shall be in compliance with standards and forms required
by the board and must, at a minimum, include detailed
substantiation as to all revenues and expenditures. The
district public defender shall, at times and in the form
required by the board, submit reports to the board concerning
its operations, including the number of cases handled and funds
expended for these services.
Within ten days after an assistant district public defender
is appointed, the district public defender shall certify to the
state board of public defense the compensation that has been
recommended for the assistant.
(c) The state board of public defense shall transmit the
proposed budget of each district public defender to the
respective district court administrators and county budget
officers for comment before the board's final approval of the
budget. The board shall determine and certify to the respective
county boards a final comprehensive budget for the office of the
district public defender that includes all expenses. After the
board determines the allocation of the state funds authorized
pursuant to paragraph (e), the board shall apportion the
expenses of the district public defenders among the several
counties and each county shall pay its share in monthly
installments. The county share is the proportion of the total
expenses that the population in the county bears to the total
population in the district as determined by the last federal
census. If the district public defender or an assistant
district public defender is temporarily transferred to a county
not situated in that public defender's judicial district, said
county shall pay the proportionate part of that public
defender's expenses for the services performed in said county.
(d) Reimbursement for actual and necessary travel expenses
in the conduct of the office of the district public defender
shall be charged to either (1) the general expenses of the
office, (2) the general expenses of the district for which the
expenses were incurred if outside the district, or (3) the
office of the state public defender if the services were
rendered for that office.
(e) Money appropriated to the state board of public defense
for the board's administration, for the state public defender,
for the judicial district public defenders, and the public
defender must be spent with the approval of the state board of
public defense for the board's administration and for thestate
public defender and public defense corporations in amounts
determined by the board for the public defense corporations
shall be expended as determined by the board. Funds may also be
distributed by the state board of public defense to district
public defenders including those in Hennepin and Ramsey
counties. In making distributions to district public defenders,
priority must be given, to the extent feasible and reasonable,
to those districts having the greatest number of felonies and
gross misdemeanors, and to those districts having the greatest
number of distressed counties designated under section
297A.257. The board shall further consider each district's
number of dispositions, such as jury trials, court trials and
guilty pleas, the number of court appearances, and other
trial-related financial data, and any special needs of districts
organized in the calendar year 1987 In distributing funds to
district public defenders, the board shall consider the results
of the weighted case load study.
Subd. 2. The state board of public defense, after
consultation with the county boards receiving an appropriation
from the legislature for payment of district public defender
costs, shall designate the county officials of one or more
counties county within the district as a host county to pay
reimburse the expenses of the district public defender. A
county selected by the board must serve as the designee. The
county share assessed under subdivision 1 against each county of
the district must be paid to the county treasurer of the
designated county. The board may reimburse the
designated counties county for extra costs incurred. The board
must provide for a revolving fund in the custody of the
officials of the designated county into which each county must
pay an initial deposit and its respective share of the expenses
of the office of district public defender and from which the
expenses of said office shall be paid in the manner provided in
Laws 1965, chapter 869.
Subd. 3. If the state public defender or a district public
defender deems it necessary to make a motion for a new trial, to
take an appeal, or other postconviction proceedings in order to
properly represent a defendant or other person whom that public
defender had been directed to represent, that public defender
may use the transcripts of the testimony and other proceedings
filed with the court administrator of the district court as
provided by section 243.49.
Subd. 4. [COUNTY PORTION OF COSTS.] The effective date of
this section shall be January 1, 1966. That portion of
subdivision 1 directing counties to pay the costs of public
defense service shall not be in effect between July 1, 1990, and
July 1, 1991. This subdivision only relates to costs associated
with felony and gross misdemeanor public defense services and
all public defense services in the second, fourth, and eighth
judicial districts.
Sec. 10. Minnesota Statutes 1988, section 611.271, is
amended to read:
611.271 [COPIES OF DOCUMENTS; FEES.]
The court administrators of all courts and justices of
peace shall furnish upon the request of the office of district
public defender or the state public defender copies of any
documents in their possession and shall bill the office of the
state public defender for these copies after they have been
furnished. The fees for such documents shall be $2 plus 12
cents for each page of the documents furnished at no charge to
the public defender.
Sec. 11. Minnesota Statutes 1988, section 629.292,
subdivision 1, is amended to read:
Subdivision 1. [REQUEST FOR DISPOSITION; NOTIFICATION OF
PRISONER.] (a) Any person who is imprisoned in a penal or
correctional institution or other facility in the department of
corrections of this state may request final disposition of any
untried indictment or information complaint pending against the
person in this state. The request shall be in writing addressed
to the court in which the indictment or information complaint is
pending and to the prosecuting attorney charged with the duty of
prosecuting it, and shall set forth the place of imprisonment.
(b) The commissioner of corrections or other official
designated by the commissioner having custody of prisoners shall
promptly inform each prisoner in writing of the source and
nature of any untried indictment or information complaint
against the prisoner of which the commissioner of corrections or
such official had knowledge or notice and of the prisoner's
right to make a request for final disposition thereof.
(c) Failure of the commissioner of corrections or other
such official to inform a prisoner, as required by this section,
within one year after a detainer has been filed at the
institution shall entitle the prisoner to a final dismissal of
the indictment or information complaint with prejudice.
Sec. 12. Laws 1989, chapter 335, article 3, section 38, is
amended to read:
Sec. 38. [TRANSITION, PUBLIC DEFENDERS; SECOND AND FOURTH
DISTRICTS.]
The district public defender defenders of the second and
fourth judicial district districts serving on July 1, 1989,
shall continue in office until the expiration of the term to
which appointed or until August 1, 1991, whichever date is later
their terms.
The district public defender of the fourth judicial
district serving on July 1, 1989, shall continue in office until
the expiration of the term to which appointed or until August 1,
1991, whichever date is later.
Sec. 13. Laws 1989, chapter 335, article 3, section 44, is
amended to read:
Sec. 44. [APPLICATION.]
Sections 45 to 54, except the parts of section 54, that by
their terms have broader application, apply only in the eighth
judicial district for the period from January 1, 1990, to June
30 December 31, 1991.
Those parts of section 54, having broader application,
apply statewide for the period from July 1, 1989, to June 30
December 31, 1991.
Sec. 14. Laws 1989, chapter 335, article 3, section 54,
subdivision 8, is amended to read:
Subd. 8. [LEVY.] During the pilot project For taxes
payable in 1991 only the counties that make up the eighth
judicial district shall continue to levy for and pay the costs
to operate the eighth judicial district and public defense
services that the state does not fund during the eighth district
project. The supreme court shall certify to the counties on or
before October 1 of each year August 15, 1990, the amount
necessary in excess of the state-funded eighth district project
costs. The counties are responsible on a per capita prorated
basis for the costs that the state is not assuming. These
include but are not limited to capital costs, rent, and other
associated costs. The county administrator of each of the
counties shall consult with the supreme court and the eighth
judicial district administrator regarding these costs before
setting county budgets and levies for calendar year 1990. Each
county shall pay its assessed share to the state court
administrator for the operation of the pilot project on or
before May 15, 1991.
Sec. 15. Laws 1989, chapter 335, article 3, section 58, as
amended by Laws 1989, chapter 356, section 67, and Laws 1989,
First Special Session chapter 1, article 5, section 48,
subdivision 3, is amended to read:
Subd. 3. [JANUARY 1, 1991; ALL DISTRICTS.] That portion of
section 6 which amends the first sentence of Minnesota Statutes
1989 Supplement, section 357.021, subdivision 1a, requiring
counties to pay filing fees in district court actions is
effective January 1, 1991 1992, for counties in all judicial
districts.
ARTICLE 10
MISCELLANEOUS
Section 1. Minnesota Statutes Second 1989 Supplement,
section 3.885, subdivision 8, is amended to read:
Subd. 8. [POLITICAL SUBDIVISION REPORTING.] No later than
November 15, 1990 1991, the commission shall make
recommendations to appropriate standing committees of the
legislature on any changes in uniform accounting and financial
reporting methods necessary to assure public and legislative
oversight of expenditures by cities, counties, towns, and
special service districts. The recommendations shall consider
opportunities for on-line access by appropriate state officers
to political subdivision accounts. In preparing these
recommendations, the commission shall consult with the state
auditor, the legislative auditor, and the commissioners of
finance and revenue.
Sec. 2. Minnesota Statutes 1988, section 3.885, is amended
by adding a subdivision to read:
Subd. 9. [LOCAL GOVERNMENT RULE APPEALS.] Any local
government may appeal to the commission to review any existing
or proposed rule as defined in section 14.02, subdivision 4, on
the grounds that the rule imposes a fiscal or administrative
burden on local governments which is unnecessary in order for
the local governments to accomplish the statewide policy goals
and requirements of the statute authorizing the rule. As used
in this subdivision, a "local government" is a county, home rule
charter or statutory city, or town. The commission may hold a
public hearing on a local government's appeal of a rule and may,
on the basis of testimony received at the public hearing,
suspend any rule by affirmative vote of at least half of its
members. The procedures provided in sections 14.40, subdivision
4, 14.42, and 14.43, shall apply to suspension of rules under
this subdivision.
Sec. 3. Minnesota Statutes Second 1989 Supplement, section
3.982, is amended to read:
3.982 [FISCAL NOTES FOR STATE-MANDATED ACTIONS.]
When a bill proposing a new or expanded mandate on a
political subdivision is introduced and referred to a standing
committee, the head of each affected department or agency of the
state government shall the commissioner of finance shall
determine whether the bill proposes a new or expanded mandate on
a political subdivision. If the commissioner determines that a
new or expanded mandate is proposed, the commissioner shall
direct the appropriate department or agency of state government
to prepare a fiscal note identifying the projected fiscal impact
of the bill on state government and on the affected political
subdivisions. The commissioner of finance shall be responsible
for coordinating the fiscal note process, for assuring the
accuracy and completeness of the note, and for ensuring that
fiscal notes are prepared, delivered, and updated as provided in
this section. The fiscal note shall categorize mandates as
program or nonprogram mandates and shall include estimates of
the levy impacts of the mandates. To the extent that the bill
would impose new fiscal obligations on political subdivisions,
the note shall indicate the efforts made to reduce those
obligations, including consultations made with representatives
of the political subdivisions. Chairs of legislative committees
receiving bills on rereferrals from other legislative committees
may request that fiscal notes be amended to reflect amendments
made to the bills by prior committee action. Preparation of the
fiscal notes required in this section shall be consistent with
section 3.98. The commissioner of finance shall periodically
report to and consult with the legislative commission on
planning and fiscal policy on the issuance of the notes.
Sec. 4. Minnesota Statutes 1988, section 16A.1541, is
amended to read:
16A.1541 [ADDITIONAL REVENUES; PRIORITY.]
If on the basis of a forecast of general fund revenues and
expenditures the commissioner of finance determines that there
will be a positive unrestricted budgetary general fund balance
at the close of the biennium, the commissioner of finance must
allocate money to the budget and cash flow reserve account until
the total amount in the account equals five percent of total
general fund appropriations for the current biennium as
established by the most recent legislative session. Beginning
in November 1990, forecast unrestricted budgetary general fund
balances are first appropriated to restore the budget and cash
flow reserve account to $550,000,000 and then to reduce the
property tax levy recognition percent under section 121.904,
subdivision 4a, to 27 percent before money is allocated to the
budget and cash flow reserve account under the preceding
sentence.
The amounts necessary to meet the requirements of this
section are appropriated from the general fund.
Sec. 5. Minnesota Statutes 1989 Supplement, section
115A.981, subdivision 3, is amended to read:
Subd. 3. [AGENCY REPORT.] The agency shall report to the
legislative commission on waste management by July 1 of each
year on the viability of the state's waste processing and
disposal capability, the status of competitive forces in the
market including recycling, composting, waste reduction and
incineration, the extent to which existing fees for services are
sufficient for facility development, engineering, environmental
and safety factors, the progress of the industry in meeting the
state's waste management goals, and recommendations for
regulations to ensure protection of human health and the
environment. In preparing the report, the agency shall consider
information received under subdivision 2.
The report must also include:
(1) statewide and facility by facility estimates of the
total potential costs and liabilities associated with solid
waste disposal facilities for closure and postclosure care,
response costs under chapter 115B, and any other potential
costs, liabilities, or financial responsibilities;
(2) statewide and facility by facility requirements for
proof of financial responsibility under section 116.07,
subdivision 4h; and
(3) an annual update addressing how each facility is
meeting its financial responsibility under section 116.07,
subdivision 4h.
Sec. 6. Minnesota Statutes 1988, section 116.07,
subdivision 4h, is amended to read:
Subd. 4h. [FINANCIAL RESPONSIBILITY RULES.] (a) The agency
shall adopt rules requiring the operator or owner of a solid
waste disposal facility to submit to the agency proof of the
operator's or owner's financial capability to provide reasonable
and necessary response during the operating life of the facility
and for 20 years after closure, and to provide for the closure
of the facility and postclosure care required under agency
rules. Proof of financial responsibility is required of the
operator or owner of a facility receiving an original permit or
a permit for expansion after adoption of the rules. Within 180
days of the effective date of the rules or by July 1, 1987,
whichever is later, proof of financial responsibility is
required of an operator or owner of a facility with a remaining
capacity of more than five years or 500,000 cubic yards that is
in operation at the time the rules are adopted. Compliance with
the rules is a condition of obtaining or retaining a permit to
operate the facility.
(b) The agency shall amend the rules adopted under
paragraph (a) to allow a municipality, as defined in section
475.51, subdivision 2, including a sanitary district, that owns
or operates a solid waste disposal facility that was in
operation on May 15, 1989, to meet its financial responsibility
for all or a portion of the contingency action portion of the
reasonable and necessary response costs at the facility through
its authority to issue bonds, provided that the method developed
in the rules will ensure that when funds are needed for a
contingency action, sufficient bonds can and will be issued by
the municipality to meet its responsibility. The rules must
include at least:
(1) a requirement that the governing body of the
municipality enact an ordinance that clearly accepts
responsibility for the costs of contingency action at the
facility and that reserves, during the operating life of the
facility and for 20 years after closure, a portion of the debt
limit of the municipality, as established under section 475.53
or other law, that is equal to the total contingency action
costs calculated under the rules;
(2) a requirement that the municipality assure that all
collectors that haul to the facility implement a plan for
reducing solid waste by using volume-based pricing, recycling
incentives, or other means;
(3) a requirement that when a municipality opts under the
rules to meet a portion of its financial responsibility by
relying on its authority to issue bonds, it shall also begin
setting aside funds that will cover a portion of the potential
contingency action costs at the facility, the amount to be
determined by the agency for each facility based on at least the
amount of waste deposited in the disposal facility each year,
and the likelihood and potential timing of conditions arising at
the facility that will necessitate response action; and
(4) a requirement that a municipality have and consistently
maintain an investment grade bond rating as a condition of using
bonding authority to meet financial responsibility under this
section.
(c) Counties shall comply with existing financial
responsibility rules until those rules are amended under
paragraph (b), and, after that time, counties shall comply with
the amended rules. The method for proving financial
responsibility developed under paragraph (b) may not be applied
to a new solid waste disposal facility or to expansion of an
existing facility.
Sec. 7. [116J.871] [FINANCIAL ASSISTANCE LIMITATIONS;
PREVAILING WAGE.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the following terms have the meanings given them.
(b) "Economic development" means financial assistance
provided to a person directly or to a local unit of government
or nonprofit organization on behalf of a person who is engaged
in the manufacture or sale of goods and services. Economic
development does not include (i) financial assistance for
rehabilitation of existing housing or (ii) financial assistance
for new housing construction in which total financial assistance
at a single project site is less than $100,000.
(c) "Financial assistance" means (i) a grant awarded by a
state agency for economic development related purposes if a
single business receives $200,000 or more of the grant proceeds;
(ii) a loan or the guaranty or purchase of a loan made by a
state agency for economic development related purposes if a
single business receives $500,000 or more of the loan proceeds;
or (iii) a reduction, credit, or abatement of a tax assessed
under chapter 297A where the tax reduction, credit, or abatement
applies to a geographic area smaller than the entire state and
was granted for economic development related purposes.
Financial assistance does not include payments by the state of
aids and credits under chapter 273 or 477A to a political
subdivision.
(d) "Project site" means the location where improvements
are made that are financed in whole or in part by the financial
assistance; or the location of employees that receive financial
assistance in the form of employment and training services as
defined in section 268.0111, subdivision 4, or customized
training from a technical college.
(e) "State agency" means any agency defined under section
16B.01, subdivision 2, the Greater Minnesota Corporation, and
the iron range resources and rehabilitation board.
Subd. 2. [PREVAILING WAGE REQUIRED.] A state agency may
provide financial assistance to a person only if the person
receiving or benefiting from the financial assistance certifies
to the commissioner of labor and industry that laborers and
mechanics at the project site during construction, installation,
remodeling, and repairs for which the financial assistance was
provided will be paid the prevailing wage rate as defined in
section 177.42, subdivision 6.
Subd. 3. [PREVAILING WAGE; PENALTY.] It is a misdemeanor
for a person who has certified that prevailing wages will be
paid to laborers and mechanics under subdivision 2 to
subsequently fail to pay the prevailing wage. This misdemeanor
is punishable by a fine of not more than $700, or imprisonment
for not more than 90 days, or both. Each day a violation of
this subdivision continues is a separate offense.
Subd. 4. [NOTIFICATION.] A state agency shall notify any
person applying for financial assistance from the state agency
of the requirements under subdivision 2 and of the penalties
under subdivision 3.
Subd. 5. [EXCEPTION.] Nothing in this section denies any
financial assistance granted to or qualified for by a person
whose construction, installation, remodeling, or repairs
commenced prior to August 1, 1990.
Sec. 8. [STUDY OF PREVAILING WAGE SYSTEM.]
Subdivision 1. [STUDY REQUIRED; CONTENTS.] The management
analysis division of the department of administration shall
study and evaluate the prevailing wage system in this state.
The study must analyze:
(1) whether the method of determining prevailing wage rates
is adequate and reasonable;
(2) whether current enforcement of the law is consistent
with the intent of Minnesota Statutes, sections 177.41 to
177.44; and
(3) the variations in prevailing wage rates among counties
in Minnesota and between Minnesota and federal prevailing wage
rates.
Subd. 2. [REPORT.] The commissioner of administration
shall report its findings to the legislature by February 1, 1991.
Subd. 3. [APPROPRIATION.] $100,000 is appropriated from
the general fund to the commissioner of administration to meet
the cost of conducting the study.
Sec. 9. [270.0682] [TAX INCIDENCE REPORTS.]
Subdivision 1. [BIENNIAL REPORT.] The commissioner of
revenue shall report to the legislature by March 1 of each
odd-numbered year on the overall incidence of the income tax,
sales and excise taxes, and property tax. The report shall
present information on the distribution of the tax burden (1)
for the overall income distribution, using a systemwide
incidence measure such as the Suits index or other appropriate
measures of equality and inequality, (2) by income classes,
including at a minimum deciles of the income distribution, and
(3) by other appropriate taxpayer characteristics.
Subd. 2. [BILL ANALYSES.] At the request of the chair of
the house tax committee or the senate committee on taxes and tax
laws, the commissioner of revenue shall prepare an incidence
impact analysis of a bill or a proposal to change the tax system
which increases, decreases, or redistributes taxes by more than
$20,000,000. To the extent data is available on the changes in
the distribution of the tax burden that are affected by the bill
or proposal, the analysis shall report on the incidence effects
that would result if the bill were enacted. The report may
present information using systemwide measures, such as Suits or
other similar indexes, by income classes, taxpayer
characteristics, or other relevant categories. The report may
include analyses of the effect of the bill or proposal on
representative taxpayers. The analysis must include a statement
of the incidence assumptions that were used in computing the
burdens.
Subd. 3. [INCOME MEASURE.] The incidence analyses shall
use the broadest measure of economic income for which reliable
data is available.
Sec. 10. Minnesota Statutes 1988, section 279.06, is
amended to read:
279.06 [COPY OF LIST AND NOTICE.]
Subdivision 1. [LIST AND NOTICE.] Within five days after
the filing of such list, the court administrator shall return a
copy thereof to the county auditor, with a notice prepared and
signed by the court administrator, and attached thereto, which
may be substantially in the following form:
State of Minnesota )
) ss.
County of ............... )
District Court
.......... Judicial District.
The state of Minnesota, to all persons, companies, or
corporations who have or claim any estate, right, title, or
interest in, claim to, or lien upon, any of the several parcels
of land described in the list hereto attached:
The list of taxes and penalties on real property for the
county of ............................... remaining delinquent
on the first Monday in January, 19....., has been filed in the
office of the court administrator of the district court of said
county, of which that hereto attached is a copy. Therefore,
you, and each of you, are hereby required to file in the office
of said court administrator, on or before the 20th day after the
publication of this notice and list, your answer, in writing,
setting forth any objection or defense you may have to the
taxes, or any part thereof, upon any parcel of land described in
the list, in, to, or on which you have or claim any estate,
right, title, interest, claim, or lien, and, in default thereof,
judgment will be entered against such parcel of land for the
taxes on such list appearing against it, and for all penalties,
interest, and costs. Based upon said judgment, the land shall
be sold to the state of Minnesota on the second Monday in May,
19... The period of redemption for all lands sold to the state
at a tax judgment sale shall be three years from the date of
sale to the state of Minnesota if the land is within an
incorporated area unless it is: (a) nonagricultural homesteaded
land as defined in section 273.13, subdivision 22; (b)
homesteaded agricultural land as defined in section 273.13,
subdivision 23, paragraph (a); or (c) seasonal recreational land
as defined in section 273.13, subdivision 25, paragraph (d)(1)
or (c)(4), in which event the period of redemption is five years
from the date of sale to the state of Minnesota.
The period of redemption for all other lands sold to the
state at a tax judgment sale shall be five years from the date
of sale.
Inquiries as to the proceedings set forth above can be made
to the county auditor of ..... county whose address is ..... .
(Signed) .............................................,
Court Administrator of the District Court of the County
of ....................................................
(Here insert list.)
The list referred to in the notice shall be substantially
in the following form:
List of real property for the county of
......................., on which taxes remain delinquent on the
first Monday in January, 19...:
Town of (Fairfield),
Township (40), Range (20),
Names (and
Current Filed
Addresses) for
the Taxpayers
and Fee Owners
and in Addition
Those Parties
Who Have Filed
Their Addresses Tax
Pursuant to Subdivision of Parcel Total Tax
section 276.041 Section Section Number and Penalty
$ cts.
John Jones S.E. 1/4 of S.W. 1/4 10 23101 2.20
(825 Fremont
Fairfield, MN
55000)
Bruce Smith That part of N.E. 1/4
(2059 Hand of S.W. 1/4 desc. as
Fairfield, follows: Beg. at the
MN 55000) S.E. corner of said
and N.E. 1/4 of S.W. 1/4;
Fairfield thence N. along the E.
State Bank line of said N.E. 1/4
(100 Main of S.W. 1/4 a distance
Street of 600 ft.; thence W.
Fairfield, parallel with the S.
MN 55000) line of said N.E. 1/4
of S.W. 1/4 a distance
of 600 ft.; thence S.
parallel with said E.
line a distance of 600
ft. to S. line of said
N.E. 1/4 of S.W. 1/4;
thence E. along said S.
line a distance of 600
ft. to the point of
beg. ............... 21 33211 3.15
As to platted property, the form of heading shall conform
to circumstances and be substantially in the following form:
City of (Smithtown)
Brown's Addition, or Subdivision
Names (and
Current Filed
Addresses) for
the Taxpayers
and Fee Owners
and in Addition
Those Parties
Who have Filed
Their Addresses Tax
Pursuant to Parcel Total Tax
section 276.041 Lot Block Number and Penalty
$ cts
John Jones 15 9 58243 2.20
(825 Fremont
Fairfield,
MN 55000)
Bruce Smith 16 9 58244 3.15
(2059 Hand
Fairfield,
MN 55000)
and
Fairfield
State Bank
(100 Main Street
Fairfield,
MN 55000)
The names, descriptions, and figures employed in
parentheses in the above forms are merely for purposes of
illustration.
The name of the town, township, range or city, and addition
or subdivision, as the case may be, shall be repeated at the
head of each column of the printed lists as brought forward from
the preceding column.
Errors in the list shall not be deemed to be a material
defect to affect the validity of the judgment and sale.
Subd. 2. [FORM OF LIST AND NOTICE.] Notwithstanding the
provisions of subdivision 1, the commissioner of revenue shall
prescribe the form of the list and notice required under
subdivision 1. The form shall contain the information required
under subdivision 1, but shall be organized and presented in a
manner easily read and understood. The print must be easily
read and contain standard use of capital and lower-case
letters. The court administrator shall use the form prescribed
by the commissioner for purposes of this section.
Sec. 11. [289A.65] [ADMINISTRATIVE REVIEW.]
Subdivision 1. [TAXPAYER RIGHT TO RECONSIDERATION.] A
taxpayer may obtain reconsideration by the commissioner of an
order assessing tax, a denial of a request for abatement of
penalty, or a denial of a claim for refund by filing an
administrative appeal under subdivision 4. A taxpayer cannot
obtain reconsideration under this section if the action taken by
the commissioner is the outcome of an administrative appeal.
Subd. 2. [APPEAL BY TAXPAYER.] A taxpayer who wishes to
seek administrative review must follow the procedures in
subdivision 4.
Subd. 3. [NOTICE DATE.] For purposes of this section, the
term "notice date" means the date of the order adjusting the tax
or order denying a request for abatement, or, in the case of a
denied refund, the date of the notice of denial.
Subd. 4. [TIME AND CONTENT FOR ADMINISTRATIVE APPEAL.]
Within 60 days after the notice date, the taxpayer must file a
written appeal with the commissioner. The appeal need not be in
any particular form but must contain the following information:
(1) name and address of the taxpayer;
(2) if a corporation, the state of incorporation of the
taxpayer, and the principal place of business of the
corporation;
(3) the Minnesota identification number or social security
number of the taxpayer;
(4) the type of tax involved;
(5) the date;
(6) the tax years or periods involved and the amount of tax
involved for each year or period;
(7) the findings in the notice that the taxpayer disputes;
(8) a summary statement that the taxpayer relies on for
each exception; and
(9) the taxpayer's signature or signature of the taxpayer's
duly authorized agent.
Subd. 5. [EXTENSIONS.] When requested in writing and
within the time allowed for filing an administrative appeal, the
commissioner may extend the time for filing an appeal for a
period not more than 30 days from the expiration of the 60 days
from the notice date.
Subd. 6. [DETERMINATION OF APPEAL.] On the basis of
applicable law and available information, the commissioner shall
determine the validity, if any, in whole or part of the appeal
and notify the taxpayer of the decision. This notice must be in
writing and contain the basis for the determination.
Subd. 7. [AGREEMENT DETERMINING TAX LIABILITY.] When it
appears to be in the best interests of the state, the
commissioner may settle any taxes, penalties, or interest that
the commissioner has under consideration by virtue of an appeal
filed under this section. An agreement must be in writing and
signed by the commissioner and the taxpayer, or the taxpayer's
representative authorized by the taxpayer to enter into an
agreement. The agreement must be filed in the office of the
commissioner.
Subd. 8. [APPEAL OF AN ADMINISTRATIVE DETERMINATION.]
Following the determination or settlement of an appeal and
notwithstanding any period of limitations for making assessments
or other determinations to the contrary, the commissioner must
issue an order reflecting that disposition. If the statute of
limitations for making assessments or other determinations would
have expired before the issuance of this order, except for this
section, the order is limited to issues or matters contained in
the appealed determination. Except in the case of an agreement
determining tax under this section, the order is appealable to
the Minnesota tax court under section 271.06.
Subd. 9. [APPEAL WHERE NO DETERMINATION.] If the
commissioner does not make a determination within six months of
the filing of an administrative appeal, the taxpayer may elect
to appeal to tax court.
Subd. 10. [EXEMPTION FROM ADMINISTRATIVE PROCEDURE ACT.]
This section is not subject to chapter 14.
Sec. 12. Minnesota Statutes 1988, section 296.02,
subdivision 1a, is amended to read:
Subd. 1a. [EXCEPTIONS.] The provisions of subdivision 1 do
not apply to (1) gasoline purchased by a transit system owned by
one or more statutory or home rule charter cities or
towns receiving financial assistance under section 174.24 or
473.384, or (2) to sales of compressed natural gas or propane
for use in vehicles displaying a valid annual alternate fuel
permit.
Sec. 13. Minnesota Statutes 1988, section 296.025,
subdivision 1a, is amended to read:
Subd. 1a. [EXCEPTIONS.] The provisions of subdivision 1 do
not apply to (1) special fuel purchased by a transit system
owned by one or more statutory or home rule charter cities or
towns receiving financial assistance under section 174.24 or
473.384, or (2) to sales of compressed natural gas or propane
for use in vehicles displaying a valid annual alternate fuel
permit.
Sec. 14. Minnesota Statutes 1988, section 297.07,
subdivision 5, is amended to read:
Subd. 5. [OFFSET.] Upon audit, if a distributor's return
reflects an overpayment, the overpayment may only be offset
against an additional tax liability for the month immediately
preceding or immediately after the month of
overpayment. overage, the overage shall be offset against a
shortage, if any, in the month immediately preceding the month
of the overage. If any overage remains after that offset, the
remainder may only be offset against a shortage, if any, in the
month immediately following the month of the overage.
Sec. 15. Minnesota Statutes 1988, section 298.015,
subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED.] A person engaged in the
business of mining shall pay to the state of Minnesota for
distribution as provided in section 298.018 a net proceeds tax
equal to two percent of the net proceeds from mining in
Minnesota. The tax applies to all mineral and energy resources
mined or extracted within the state of Minnesota except for
sand, silica sand, gravel, building stone, crushed rock,
limestone, granite, dimension granite, dimension stone,
horticultural peat, clay, soil, iron ore, and taconite
concentrates. The tax is in addition to all other taxes
provided for by law. The tax is due by June 15 of the year
succeeding the calendar year covered by the report required by
section 298.05.
Sec. 16. Minnesota Statutes 1988, section 298.017, is
amended to read:
298.017 [DEDUCTIONS.]
Subdivision 1. [DEDUCTIONS NOT ALLOWED.] For purposes of
calculating the net proceeds under section 298.015, the
following expenses are not deductible: (1) all sales,
marketing, and interest expenses; (2) all insurance expense and
taxes, except as specifically provided in this section; (3) all
administrative expenses outside of Minnesota; (4) any research
expense prior to production; (5) all funds set aside during
production years to pay for reclamation expenses after
production ends; (6) royalty expenses, depletion allowances, and
cost of mining land.
Subd. 2. [DEDUCTIONS ALLOWED.] (a) In calculating the net
proceeds for the purpose of determining the tax provided in
section 298.015, only those expenses specifically allowed in
this subdivision may be deducted from gross proceeds. The
carryback or carryforward of deductions shall not be allowed.
(b) Ordinary and necessary expenses actually paid for the
mining, production, processing, beneficiation, smelting, or
refining of metal or mineral products for:
(1) labor, including wages, salaries, fringe benefits,
unemployment and workers' compensation insurance;
(2) machinery, equipment, and supplies, including any sales
and use tax paid on it, except that machinery and equipment
subject to depreciation shall only be deductible under clause
(b)(3);
(3) depreciation as defined and allowed by section 167 of
the Internal Revenue Code of 1986, as amended through December
31, 1986; and
(4) administrative expenses inside Minnesota; and
(5) reclamation costs actually incurred in Minnesota and
paid in a year of production, including the payment of bonds
required by the provisions of an environmental permit issued by
the state of Minnesota
are deductible.
(c) Ordinary and necessary expenses of transporting metal
or mineral products are allowed as a deduction if the costs are
included in the sale price of the products.
(d) Expenses of exploration, research, or development in
this state for the mining and processing of minerals within
Minnesota paid in a production year are deductible in the
production year.
(e) Expenses of exploration and development in Minnesota
incurred prior to production must be amortized and deducted on a
straight-line basis over the first five years of production.
Sec. 17. Minnesota Statutes 1988, section 298.05, is
amended to read:
298.05 [MINING COMPANIES TO REPORT ANNUALLY.]
Every person engaged in such mining or production of ores
shall, annually, on or before the first day of March 15, file
with the commissioner of revenue, under oath, a correct report,
in such form and containing such information as the commissioner
may require, covering the preceding calendar year.
Sec. 18. Minnesota Statutes 1988, section 298.24,
subdivision 1, is amended to read:
Subdivision 1. (a) For concentrate produced in 1986 and
1987 1990 there is hereby imposed upon taconite and iron
sulphides, and upon the mining and quarrying thereof, and upon
the production of iron ore concentrate therefrom, and upon the
concentrate so produced, a tax of $1.90 $1.975 per gross ton of
merchantable iron ore concentrate produced therefrom.
(b) Except as provided in paragraph (c), For concentrates
produced in 1988 1991 and subsequent years, the tax rate shall
be equal to the preceding year's tax rate plus an amount equal
to the preceding year's tax rate multiplied by the percentage
increase in the implicit price deflator from the fourth quarter
of the second preceding year to the fourth quarter of the
preceding year. "Implicit price deflator" for the gross
national product means the implicit price deflator prepared by
the bureau of economic analysis of the United States Department
of Commerce.
(c) The provisions of paragraph (b) will not be in effect
for concentrates produced in 1988 if the 1988 production is not
less than 34,000,000 tons. If the provisions of paragraph (b)
are not in effect for concentrates produced in a year, the rate
of the tax for that year's production will be the rate of the
tax imposed on the previous year's production. The tax shall be
imposed on the average of the production for the current year
and the previous two years. The rate of the tax imposed will be
the current year's tax rate. This clause shall not apply in the
case of the closing of a taconite facility if the property taxes
on the facility would be higher if this clause and section
298.25 were not applicable.
(d) If the tax or any part of the tax imposed by this
subdivision is held to be unconstitutional, a tax
of $1.90 $1.975 per gross ton of merchantable iron ore
concentrate produced shall be imposed.
(e) Consistent with the intent of this subdivision to
impose a tax based upon the weight of merchantable iron ore
concentrate, the commissioner of revenue may indirectly
determine the weight of merchantable iron ore concentrate
included in fluxed pellets by subtracting the weight of the
limestone, dolomite, or olivine derivatives or other basic flux
additives included in the pellets from the weight of the
pellets. For purposes of this paragraph, "fluxed pellets" are
pellets produced in a process in which limestone, dolomite,
olivine, or other basic flux additives are combined with
merchantable iron ore concentrate. No subtraction from the
weight of the pellets shall be allowed for binders, mineral and
chemical additives other than basic flux additives, or moisture.
Sec. 19. Minnesota Statutes 1988, section 469.171, is
amended by adding a subdivision to read:
Subd. 11. [LIMITATIONS; LAST EIGHT MONTHS OF
DURATION.] This subdivision applies only to state tax reductions
first authorized by the municipality to be provided to a
business within eight months of the expiration of the enterprise
zone's designation.
Before agreeing with a business to provide tax reductions,
the municipality must submit the proposed tax reductions to the
commissioner for approval. The commissioner shall review and
analyze the proposal in light of, at least, (1) the proposed
investment that the business will make in the zone, (2) the
number and quality of new jobs that will be created in the zone,
(3) the overall positive impact on economic activity in the
zone, and (4) the extent to which the impacts in clauses (1) to
(3) are dependent upon providing the state tax reductions to the
business. The commissioner shall disapprove the proposal if the
commissioner determines the public benefits of increased
investment and employment resulting from the tax reductions is
disproportionately small relative to the cost of the state tax
reductions. If the commissioner disapproves of the proposal,
the tax reductions are not allowed to the business.
If the municipality submits the proposal to the
commissioner before expiration of the zone designation, the
authority to grant the tax reductions continues until the
commissioner acts on the proposal.
Sec. 20. Minnesota Statutes 1988, section 473.845,
subdivision 4, is amended to read:
Subd. 4. [EXPENDITURE NOTIFICATION AND COMMISSION
RECOMMENDATION.] (a) The commissioner shall notify the chair and
the director of the legislative commission on waste management
before making expenditures from the fund.
(b) The legislative commission on waste management shall
make recommendations to the standing legislative committees on
finance and appropriations about appropriations from the fund.
Sec. 21. Minnesota Statutes 1988, section 475.53, is
amended by adding a subdivision to read:
Subd. 7. [DEBT LIMIT RESERVATION.] A municipality may, by
ordinance, reserve a portion of its unencumbered debt limit for
the purpose of providing proof of financial responsibility for
the contingency action portion of the response costs at a solid
waste disposal facility, subject to the rules adopted by the
pollution control agency under section 116.07, subdivision 4h.
Reservation of a portion of a municipality's debt limit under
this subdivision may not be revoked by the municipality until
the expiration of the required time period for maintaining proof
of financial responsibility or the municipality adopts and
adequately funds, as of the date of implementation, an alternate
method of financial responsibility under the rules of the
agency, whichever occurs earlier. If the municipality reserves
its debt limit under this subdivision, the debt limit is
computed as if the municipality had issued obligations, subject
to the limit, in the amount of the reservation specified in the
ordinance. Notwithstanding the amount of market value in the
municipality, the reserved amount of the limit is available for
issuance of bonds to pay the municipality's response costs.
Sec. 22. Minnesota Statutes 1988, section 500.24,
subdivision 4, is amended to read:
Subd. 4. [REPORTS.] (a) The chief executive officer of
every pension or investment fund, corporation, or limited
partnership, except a family farm corporation or a family farm
limited partnership, that holds any interest in agricultural
land or land used for the breeding, feeding, pasturing, growing,
or raising of livestock, dairy or poultry, or products thereof,
or land used for the production of agricultural crops or fruit
or other horticultural products, other than a bona fide
encumbrance taken for purposes of security, or which is engaged
in farming or proposing to commence farming in this state after
May 20, 1973, shall file with the commissioner of agriculture a
report containing the following information and documents:
(1) The name of the pension or investment fund,
corporation, or limited partnership and its place of
incorporation, certification, or registration;
(2) The address of the pension or investment plan
headquarters or of the registered office of the corporation in
this state, the name and address of its registered agent in this
state and, in the case of a foreign corporation or limited
partnership, the address of its principal office in its place of
incorporation, certification, or registration;
(3) The acreage and location listed by quarter-quarter
section, township and county of each lot or parcel of land in
this state owned or leased by the pension or investment fund,
limited partnership, or corporation and used for the growing of
crops or the keeping or feeding of poultry or livestock;
(4) The names and addresses of the officers,
administrators, directors or trustees of the pension or
investment fund, or of the officers, shareholders owning more
than ten percent of the stock, including the percent of stock
owned by each such shareholder, and the members of the board of
directors of the corporation, and the general and limited
partners and the percentage of interest in the partnership by
each partner;
(5) The farm products which the pension or investment fund,
limited partnership, or corporation produces or intends to
produce on its agricultural land;
(6) With the first report, a copy of the title to the
property where the farming operations are or will occur
indicating the particular exception claimed under subdivision 3,
clauses (a) to (r); and
(7) With the first or second report, a copy of the
conservation plan proposed by the soil and water conservation
district, and with subsequent reports a statement of whether the
conservation plan was implemented.
The report of a corporation seeking to qualify hereunder as
a family farm corporation, an authorized farm corporation, a
family farm partnership, or authorized farm partnership shall
contain the following additional information: The number of
shares or the partnership interests owned by persons residing on
the farm or actively engaged in farming, or their relatives
within the third degree of kindred according to the rules of the
civil law or their spouses; the name, address and number of
shares owned by each shareholder or partnership interests owned
by each partner; and a statement as to percentage of gross
receipts of the corporation derived from rent, royalties,
dividends, interest and annuities. No pension or investment
fund, limited partnership, or corporation shall commence farming
in this state until the commissioner of agriculture has
inspected the report and certified that its proposed operations
comply with the provisions of this section.
(b) Every pension or investment fund, limited partnership,
or corporation as described in clause (a) shall, prior to April
15 of each year, file with the commissioner of agriculture a
report containing the information required in clause (a), based
on its operations in the preceding calendar year and its status
at the end of the year. A pension or investment fund, limited
partnership, or corporation that does not file the report by
April 15 must pay a $500 civil penalty. The penalty is a lien
on the land being farmed under subdivision 3 until the penalty
is paid.
(c) The commissioner or the commissioner's authorized
representative may enter into a written agreement with a person
required to file a report under this subdivision who, for good
cause shown, has failed to make a timely filing. An agreement
must be construed as a "no contest" pleading and may encompass a
reduction or waiver of the civil penalty for late filing. The
agreement is final and conclusive with respect to the civil
penalty, except upon a showing of fraud or malfeasance or
misrepresentation of a material fact. The matter agreed upon in
the agreement may not be reopened or modified by an officer,
employee, or agent of the state. The commissioner may enter
into an agreement under this paragraph only once for each
corporation or partnership.
(d) Failure to file a required report, or the willful
filing of false information, shall constitute a gross
misdemeanor.
Sec. 23. Laws 1990, chapter 480, article 1, section 3,
subdivision 14, is amended to read:
Subd. 14. [VOTER REGISTRATION FORM.] The commissioner
shall insert securely in the individual income tax return form
or instruction booklet distributed for an odd-numbered year a
voter registration form, returnable to the secretary of state.
The form shall be designed according to rules adopted by the
secretary of state. This requirement applies to forms and
booklets supplied to post offices, banks, and other outlets, as
well as to those mailed directly to taxpayers.
Sec. 24. [SALE OF TAX-FORFEITED LAND; OTTER TAIL COUNTY.]
(a) Notwithstanding Minnesota Statutes, section 282.018,
Otter Tail county may sell the tax-forfeited lands bordering
public water and described in paragraph (c), under the remaining
provisions of Minnesota Statutes, chapter 282.
(b) The conveyance must be in a form approved by the
attorney general.
(c) The lands that may be conveyed are located in Otter
Tail county and are described as:
(1) Lot 13, Sylvanus Crest, Clitherall Township;
(2) Lot 14, Sylvanus Crest, Clitherall Township;
(3) Government Lot 8, Section 32, Township 133, Range 43;
(4) A .36 acre tract of land in Government Ten (10) of
Section Four (4), Township One Hundred Thirty-four (134) North,
Range Thirty-nine (39) West of the 5th P.M., described as
follows: Beginning at a point (iron stake) located as follows:
Commencing at the northwest corner (iron) of Lot Seventy-one
(71) of "Pleasure Park Beach" subdivision, plat of which is on
file and of record in the office of Register of Deeds of Otter
Tail County, Minn.; thence proceeding South sixty-six degrees
ten minutes West (S 66 degrees 10'W) one hundred thirty-two and
five tenths (132.5) feet and South sixty-six degrees forty-one
minutes West (S 66 degrees 41'W) one hundred fifty (150.0) feet
to the point of beginning; thence running by the following four
courses and distances, viz: South twenty-four degrees fourteen
minutes East (S 24 degrees 14'E) one hundred ninety-nine and six
tenths (199.6) feet to an iron stake on the shoreline of Otter
Tail Lake; South fifty-five degrees nineteen minutes West (S 55
degrees 19'W) seventy-five (75.0) feet along the shoreline of
said lake, to an iron stake; North twenty-four degrees
thirty-four minutes West (N 24 degrees 34'W) two hundred
fourteen and four tenths (214.4) feet to an iron stake; and
North sixty-six degrees forty-one minutes East (N 66 degrees
41'E) seventy-five (75.0) feet to the point of beginning;
(5) All of Lot 1, Except North 10 feet, Quiram's Beach,
Star Lake Township;
(6) Lot 1, Silent Acres, Dora Township.
(d) The county has determined that these lands have little
or no potential use as a public access or for other types of
public ownership and will realize a higher and better use under
private ownership.
Sec. 25. [CANCELLATION OF HAYLIFT PROGRAM DEBTS.]
Any remaining balance on a department of agriculture
account receivable resulting from operation of the 1989 drought
emergency farm haylift program which the department is required
to collect is canceled on the effective date of this section.
Sec. 26. [115A.923] [Subd. 1a.] [PAYMENT OF THE GREATER
MINNESOTA LANDFILL CLEANUP FEE.]
The operator of a disposal facility in greater Minnesota
shall pay the fee required under Minnesota Statutes, section
115A.923, subdivision 1, to the county or sanitary district
where the facility is located, except that the operator of a
facility that is owned by a statutory or home rule city shall
pay the fee to the city that owns the facility. The county,
city, or sanitary district may use the revenue from the fee only
for the purposes specified in section 115A.919.
Sec. 27. [APPROPRIATION TO STEARNS COUNTY FOR KIDNAPPING
INVESTIGATION COST.]
$100,000 is appropriated from the general fund to the
commissioner of public safety for a grant to Stearns county for
the investigation of criminal activity connected with a
kidnapping.
Sec. 28. [METRODOME ATHLETIC EVENTS.]
$500,000 is appropriated to the commissioner of trade and
economic development to provide part of the state's contribution
for the state to host the International Special Olympics in 1991
and the world championship football game sponsored by the
national football league in 1992. $250,000 is for each event
for fiscal year 1991. Metrodome facilities must be provided to
both events at no charge. This appropriation does not cancel
and is available through fiscal year 1992.
Sec. 29. [DEPARTMENT OF REVENUE APPROPRIATION.]
There is appropriated from the general fund to the
commissioner of revenue the following amounts for the
administration of this act.
Total Fiscal year 1990 Fiscal year 1991
$400,000 $125,000 $275,000
Summary by purpose
Tax incidence study $ 50,000
Corporate AMT $105,000
Taxpayer bill of rights $125,000 $ 25,000
Tax increment financing $ 45,000
Renters' credit $ 50,000
The appropriation for administration of the taxpayer bill
of rights for fiscal year 1990 is available until June 30, 1991.
Sec. 30. [APPROVED COMPLEMENT.]
The approved complement of the department of revenue is
increased by three for fiscal year 1991.
Sec. 31. [BUDGET RESERVE REDUCED.]
Upon adjournment sine die of the 1990 legislature, the
commissioner of finance, with the approval of the governor,
shall reduce the amount in the budget and cash flow reserve
account established in Minnesota Statutes, section 16A.15,
subdivision 6, as needed to balance general fund expenditures
with revenues for the biennium ending June 30, 1991.
Notwithstanding section 16A.15, subdivision 1, paragraph (a),
the commissioner need not consult with the legislative advisory
commission before making the reduction.
Sec. 32. [REPEALER.]
(a) Minnesota Statutes 1988, sections 115A.09, subdivision
5; 325E.045, subdivisions 3 and 4; Minnesota Statutes 1989
Supplement, sections 115A.922; 115A.923, subdivisions 2, 3, 4,
and 5; 115A.924; 115A.925; 115A.927; and 115A.928 are repealed.
Laws 1987, chapter 348, section 51, subdivision 5, is
repealed.
(b) Section 2 is repealed.
Sec. 33. [EFFECTIVE DATE.]
Section 11 is effective for assessments or other
determinations made on or after August 1, 1990. Sections 12 and
13 are effective for purchases after December 31, 1990.
Sections 14, 24, and 25 are effective the day following final
enactment. Sections 15 and 16 are effective for taxable years
beginning after June 30, 1990. Section 17 is effective for
taxable years beginning after December 31, 1990. Section 22 is
effective the day following final enactment, but the provision
allowing for an agreement concerning reduction or waiver of a
civil penalty for late filing applies to a filing due April 15,
1989, or thereafter. Section 32, paragraph (b), is effective
July 1, 1992.
Presented to the governor April 28, 1990
Signed by the governor May 7, 1990, 10:06 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes