Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1992, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1992
CHAPTER 511-H.F.No. 2940
An act relating to the financing and operation of
government in Minnesota; revising the operation of the
local government trust fund; modifying the
administration, computation, collection, and
enforcement of taxes; imposing taxes; changing tax
rates, bases, credits, exemptions, withholding, and
payments; modifying aids to local governments;
authorizing and modifying provisions relating to
property tax classifications and levies; reducing the
amount in the budget and cash flow reserve account;
authorizing imposition of local taxes; updating
references to the Internal Revenue Code; modifying
provisions relating to political campaign contribution
refunds; changing certain bonding and local government
finance provisions; changing definitions; making
technical corrections and clarifications; enacting
provisions relating to certain cities, counties,
school districts, special taxing districts, and
watershed districts; appropriating money; amending
Minnesota Statutes 1990, sections 60A.15, subdivision
1; 60A.19, subdivision 6; 103B.241; 103B.255, by
adding a subdivision; 103B.335; 103F.221, subdivision
3; 124.2131, subdivision 1; 174.27; 216C.06, by adding
a subdivision; 256E.06, by adding a subdivision;
270.07, subdivision 3; 270.075, subdivision 1; 270.69,
by adding a subdivision; 270A.05; 270A.07,
subdivisions 1 and 2; 270A.11; 270B.01, subdivision 8;
270B.12, by adding a subdivision; 271.06, subdivision
7; 272.115; 273.11, by adding subdivisions; 273.1104,
subdivision 1; 273.135, subdivision 2; 273.1391,
subdivision 2; 274.19, subdivision 8; 274.20,
subdivisions 1, 2, and 4; 275.065, subdivisions 1a and
4; 275.125, subdivision 10; 278.02; 279.37,
subdivision 1; 281.23, subdivision 8; 282.01,
subdivision 7; 282.012; 282.016; 282.09, subdivision
1; 282.241; 282.36; 289A.11, subdivision 3; 289A.25,
by adding a subdivision; 289A.26, subdivisions 3, 4,
7, and 9; 289A.50, subdivision 5; 290.05, subdivision
4; 290.091, subdivision 6; 290.0922, subdivision 2;
290.9201, subdivision 11; 290.923, by adding a
subdivision; 290A.03, subdivision 8; 290A.19; 290A.23;
297A.07; 297A.14, subdivision 1; 297A.15, subdivisions
5 and 6; 297A.25, subdivisions 7, 11, 24, 34, 45, and
by adding subdivisions; 297B.01, subdivision 8;
298.24, subdivision 1; 298.28, by adding a
subdivision; 299F.21, subdivision 1; 327C.01, by
adding a subdivision; 327C.12; 373.40, subdivision 7;
381.12, subdivision 2; 383.06; 383B.152; 398A.06,
subdivision 2; 401.02, subdivision 3; 401.05; 462A.22,
subdivision 1; 469.004, subdivisions 1 and 1a;
469.034; 469.107, subdivision 2; 469.153, subdivision
2; 469.177, subdivision 1a; 471.571, subdivision 2;
473.388, subdivision 4; 473.446, subdivision 1;
473.711, subdivision 2; 473.714; 473H.10, subdivision
3; 477A.013, subdivision 5; 488A.20, subdivision 4;
541.07; 641.24; Minnesota Statutes 1991 Supplement,
sections 4A.02; 16A.15, subdivision 6; 16A.711,
subdivisions 3, 4, and by adding a subdivision;
47.209; 69.021, subdivisions 5 and 6; 124A.23,
subdivision 1; 256.025, subdivisions 3 and 4; 256E.05,
subdivision 3; 256E.09, subdivision 6; 270A.04,
subdivision 2; 270A.08, subdivision 2; 271.21,
subdivision 6; 272.02, subdivision 1; 273.124,
subdivisions 1, 6, 9, and 13; 273.13, subdivisions 22,
25, and 33; 273.1398, subdivisions 5, 6, and 7;
273.1398, 273.1399; 275.065, subdivisions 1, 3, 5a,
and 6; 275.125, subdivisions 5 and 6j; 275.61; 277.01,
subdivision 1; 277.17; 278.01, subdivision 1; 278.05,
subdivision 6; 279.01, subdivision 1; 279.03,
subdivision 1a; 281.17; 289A.18, subdivision 4;
289A.20, subdivisions 1 and 4; 289A.26, subdivisions 1
and 6; 289A.37, subdivision 1; 290.01, subdivision 19;
290.05, subdivision 3; 290.06, subdivision 23;
290.0671, subdivision 1; 290.091, subdivision 2;
290.0921, subdivision 8; 290.0922, subdivision 1;
290A.04, subdivision 2h; 297A.135, subdivision 1, and
by adding a subdivision; 297A.21, subdivision 4;
297A.25, subdivision 12; 375.192, subdivision 2;
423A.02, subdivision 1a; 477A.011, subdivisions 27 and
29; 477A.012, subdivision 6; 477A.013, subdivisions 1
and 3; 477A.03, subdivision 1; 508.25; 508A.25; Laws
1953, chapter 560, section 2, subdivision 3; Laws
1971, chapter 773, section 1, subdivision 2, as
amended; and section 2, as amended; Laws 1991, chapter
291, article 1, section 65; and article 7, section 27;
proposing coding for new law in Minnesota Statutes,
chapters 13; 16A; 60A; 207A; 273; 275; 289A; 290;
290A; 297A; 298; 473F; 477A; repealing Minnesota
Statutes 1990, sections 60A.15, subdivision 6;
134.342, subdivisions 2 and 4; 275.065, subdivision
1b; 278.01, subdivision 2; 289A.12, subdivision 1;
290.48, subdivision 7; 297.32, subdivision 7;
Minnesota Statutes 1991 Supplement, sections 271.04,
subdivision 2; 273.124, subdivision 15; 295.367; Laws
1991, chapter 291, article 2, section 3; and article
15, section 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
AIDS TO LOCAL GOVERNMENTS
Section 1. Minnesota Statutes 1991 Supplement, section
16A.711, subdivision 4, is amended to read:
Subd. 4. [GENERAL FUND ADVANCES.] If the money in the
trust fund is insufficient to make payments on the dates
provided by law, but the commissioner estimates receipts for the
fiscal year biennium will be sufficient, the commissioner shall
advance money from the general fund to the trust fund necessary
to make the payments. On or before the close of the biennium
the trust shall repay the advances with interest, calculated at
the rate of earnings on invested treasurer's cash, to the
general fund.
Sec. 2. Minnesota Statutes 1991 Supplement, section
16A.711, is amended by adding a subdivision to read:
Subd. 5. [ADJUSTMENTS FOR LOCAL GOVERNMENT TRUST FUND
REVENUES.] For the second fiscal year of each biennium, the
commissioner of revenue shall make adjustments in aid amounts so
that the anticipated total obligations of the local government
trust fund are equal to anticipated total revenues.
In the event that anticipated total obligations of the
trust fund exceed anticipated total revenues, each
jurisdiction's aid will be reduced as provided under section
477A.0132. For fiscal year 1993 only, if reductions are
necessary in an amount greater than $6,700,000, the additional
reduction for the shortfall beyond $6,700,000 will be applied
only to aids under section 477A.013.
In the event that anticipated total obligations of the
trust fund are less than anticipated total revenues, aid amounts
for the following programs will be proportionately increased to
bring anticipated total expenditures into conformance with
anticipated total revenues:
(1) local government aid and equalization aid under section
477A.013;
(2) community social services aid under section 256E.06;
and
(3) county criminal justice aid under section 477A.0121.
If the commissioner estimates further aid adjustments are
necessary after aid amounts have already been certified, but
before all aid amounts have been paid, all remaining aid
payments will be increased or decreased proportionately.
Sec. 3. [16A.712] [LOCAL GOVERNMENT TRUST; APPROPRIATIONS
IN FISCAL YEAR 1993 AND SUBSEQUENT YEARS.]
(a) The amounts necessary to make the following payments in
fiscal year 1993 and subsequent years are appropriated from the
local government trust fund to the commissioner of revenue
unless otherwise specified:
(1) attached machinery aid to counties under section
273.138;
(2) in fiscal year 1993 only, supplemental homestead credit
under section 273.1391. The school district's supplemental
homestead credit shall be appropriated to the commissioner of
education;
(3) $560,000 in fiscal year 1993 and $300,000 annually in
fiscal years 1994 and 1995 for tax administration;
(4) $105,000 annually to the commissioner of finance in
fiscal years 1993, 1994, and 1995 to administer the trust fund;
(5) $25,000 annually to the advisory commission on
intergovernmental relations in fiscal years 1993, 1994, and 1995
to pay nonlegislative members' per diem expenses and such other
expenses as the commission deems appropriate;
(6) $350,000 in fiscal year 1993 and $1,200,000 annually in
fiscal years 1994 and 1995 to the intergovernmental information
systems advisory council to develop a local government financial
reporting system, with the participation and ongoing oversight
of the legislative commission on planning and fiscal policy; and
(7) in fiscal year 1993 only, the transition credit under
section 273.1398, subdivision 5, and the disparity reduction
credit under section 273.1398, subdivision 4, for school
districts. The school districts' transition credit and
disparity reduction credit shall be appropriated to the
commissioner of education.
(b) In addition, the legislature shall appropriate the rest
of the trust fund receipts for fiscal year 1993 and subsequent
years to finance intergovernmental aid formulas or programs
prescribed by law.
Sec. 4. [207A.10] [REIMBURSEMENT OF ELECTION EXPENSES.]
Subdivision 1. [DUTIES OF SECRETARY OF STATE.] The
secretary of state shall reimburse the counties and
municipalities for expenses incurred in the administration of
the presidential primary from the funds appropriated by the
legislature for this purpose, as provided in this section. Up
to $7,500 of the appropriation for reimbursement of election
expenses may be retained by the secretary of state to administer
the reimbursement program.
Subd. 2. [REIMBURSABLE EXPENSES.] The following expenses
are eligible for reimbursement: salaries of election judges;
postage for absentee ballots; preparation of polling places, in
an amount not to exceed $25 per polling place; preparation of
electronic voting systems or lever voting machines, in an amount
not to exceed $50 per precinct; compensation of county
canvassing board members; and compensation for temporary staff
or overtime payments.
Subd. 3. [CERTIFICATION OF COSTS.] The county auditor
shall certify to the secretary of state the costs incurred by
the county for the presidential primary. The municipal clerk
shall certify to the secretary of state the costs incurred by
the municipality for the presidential primary. If the total
amount certified by all units for temporary staff and overtime
payments exceeds $480,000, the secretary of state shall reduce
those amounts so that they do not exceed $480,000. The
secretary of state shall provide each county and municipality
with the appropriate forms for this certification. The
secretary of state may require that the county auditor or
municipal clerk provide documentation of actual expenditures
made for the presidential primary. The certification of costs
must be submitted to the secretary of state no later than 60
days after the presidential primary. No reimbursement of
expenses must be made unless the certification of costs has been
submitted as provided in this subdivision.
Subd. 4. [APPORTIONMENT OF REIMBURSEMENTS.] If the total
amount of requests for reimbursement of expenses exceeds the
total amount appropriated to the secretary of state for this
purpose, the secretary of state shall proportionately reduce the
reimbursements so that they do not exceed the amount
appropriated.
Sec. 5. Minnesota Statutes 1991 Supplement, section
256.025, subdivision 3, is amended to read:
Subd. 3. [PAYMENT METHODS.] (a) Beginning July 1, 1991,
the state will reimburse counties for the county share of county
agency expenditures for benefits and services distributed under
subdivision 2 and funded by the human services account
established under section 273.1392, except as follows:
(1) beginning July 1, 1992, the county shall pay 25 percent
of the costs of the growth in emergency general assistance
payments which exceed expenditures during the base year of
calendar year 1990;
(2) beginning July 1, 1992, the county shall pay 25 percent
of the costs of the growth in eligible general assistance
negotiated rate payments which exceed expenditures during the
base year of calendar year 1990;
(3) beginning July 1, 1992, the county shall pay 15 percent
of the costs of the growth in Minnesota supplemental aid
negotiated rate payments made which exceed expenditures during
the base year of calendar year 1990;
(4) beginning July 1, 1992, the county shall pay 50 percent
of the nonfederal portion of the growth in emergency assistance
payments made which exceed expenditures during the base year of
calendar year 1990.
(b) Payments under subdivision 4 are only for client
benefits and services distributed under subdivision 2 and do not
include reimbursement for county administrative expenses.
(c) The state and the county agencies shall pay for
assistance programs as follows:
(1) Where the state issues payments for the programs, the
county shall monthly advance to the state, as required by the
department of human services, the portion of program costs not
met by federal and state funds. The advance shall be an
estimate that is based on actual expenditures from the prior
period and that is sufficient to compensate for the county share
of disbursements as well as state and federal shares of
recoveries;
(2) Where the county agencies issue payments for the
programs, the state shall monthly advance to counties all
federal funds available for those programs together with an
amount of state funds equal to the state share of expenditures;
and
(3) Payments made under this paragraph are subject to
section 256.017. Adjustment of any overestimate or
underestimate in advances shall be made by the state agency in
any succeeding month.
Sec. 6. Minnesota Statutes 1991 Supplement, section
256.025, subdivision 4, is amended to read:
Subd. 4. [PAYMENT SCHEDULE.] Except as provided for in
subdivision 3, beginning July 1, 1991, the state will reimburse
counties, according to the following payment schedule, for the
county share of county agency expenditures for the programs
specified in subdivision 2.
(a) Beginning July 1, 1991, the state will reimburse or pay
the county share of county 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 through July 31, for calendar years 1991, 1992, and
1993 shall be made on or before July 10 in each of those years.
Payments for the period August through December for calendar
years 1991, 1992, and 1993 shall be made on or before the third
of each month thereafter through December 31 in each of those
years.
(b) Payment for 1/24 of the base amount and the January
1994 county share of county agency expenditures growth amount
for the programs identified in subdivision 2 shall be made on or
before January 3, 1994. For the period of February 1, 1994,
through July 31, 1994, payment of the base amount shall be made
on or before July 10, 1994, and payment of the growth amount
over the base amount shall be made on or before the third of
each month July 10, 1994. Payments for the period August 1994
through December 1994 shall be made on or before the third of
each month thereafter through December 31, 1994.
(c) Payment for the county share of county agency
expenditures during January 1995 shall be made on or before
January 3, 1995. Payment for 1/24 of the base amount and the
February 1995 county share of county agency expenditures growth
amount for the programs identified in subdivision 2 shall be
made on or before February 3, 1995. For the period of March 1,
1995, through July 31, 1995, payment of the base amount shall be
made on or before July 10, 1995, and payment of the growth
amount over the base amount shall be made on or before the third
of each month July 10, 1995. Payments for the period August
1995 through December 1995 shall be made on or before the third
of each month thereafter through December 31, 1995.
(d) Monthly payments for the county share of county agency
expenditures from January 1996 through February 1996 shall be
made on or before the third of each month through February
1996. Payment for 1/24 of the base amount and the March 1996
county share of county agency expenditures growth amount for the
programs identified in subdivision 2 shall be made on or before
March 1996. For the period of April 1, 1996, through July 31,
1996, payment of the base amount shall be made on or before July
10, 1996, and payment of the growth amount over the base amount
shall be made on or before the third of each month July 10,
1996. Payments for the period August 1996 through December 1996
shall be made on or before the third of each month thereafter
through December 31, 1996.
(e) Monthly payments for the county share of county agency
expenditures from January 1997 through March 1997 shall be made
on or before the third of each month through March 1997.
Payment for 1/24 of the base amount and the April 1997 county
share of county agency expenditures growth amount for the
programs identified in subdivision 2 shall be made on or before
April 3, 1997. For the period of May 1, 1997, through July 31,
1997, payment of the base amount shall be made on or before July
10, 1997, and payment of the growth amount over the base amount
shall be made on or before the third of each month July 10,
1997. Payments for the period August 1997 through December 1997
shall be made on or before the third of each month thereafter
through December 31, 1997.
(f) Monthly payments for the county share of county agency
expenditures from January 1998 through April 1998 shall be made
on or before the third of each month through April 1998.
Payment for 1/24 of the base amount and the May 1998 county
share of county agency expenditures growth amount for the
programs identified in subdivision 2 shall be made on or before
May 3, 1998. For the period of June 1, 1998, through July 31,
1998, payment of the base amount shall be made on or before July
10, 1998, and payment of the growth amount over the base amount
shall be made on or before the third of each month July 10,
1998. Payments for the period August 1998 through December 1998
shall be made on or before the third of each month thereafter
through December 31, 1998.
(g) Monthly payments for the county share of county agency
expenditures from January 1999 through May 1999 shall be made on
or before the third of each month through May 1999. Payment for
1/24 of the base amount and the June 1999 county share of county
agency expenditures growth amount for the programs identified in
subdivision 2 shall be made on or before June 3, 1999. For the
period of June 1, 1999, through July 31, 1999, payment shall be
made on or before July 10, 1999. Payments for the period August
July 1999 through December 1999 shall be made on or before the
third of each month thereafter through December 31, 1999.
(h) Effective January 1, 2000, monthly payments for the
county share of county 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. 7. Minnesota Statutes 1990, section 256E.06, is
amended by adding a subdivision to read:
Subd. 12. [APPROPRIATION.] $51,566,000 is appropriated
from the local government trust fund in fiscal year 1993 and
$53,113,000 annually in fiscal years 1994 and thereafter to the
commissioner of human services for payment of aid under this
section. Notwithstanding subdivisions 1 and 2, the increased
appropriation available in fiscal year 1994 and thereafter shall
be used to increase each county's aid proportionately over the
aid received in calendar year 1992. For calendar year 1993
only, each county's aid will be adjusted appropriately to
reflect the increase that is dictated to occur in the second
half of the calendar year.
Sec. 8. Minnesota Statutes 1991 Supplement, section
273.1398, subdivision 5, is amended to read:
Subd. 5. [ADDITIONAL HOMESTEAD AND AGRICULTURAL TRANSITION
CREDIT GUARANTEE.] Beginning with taxes payable in 1990, each
unique taxing jurisdiction may receive additional homestead and
agricultural transition credit guarantee payments.
Each year, the commissioner shall determine the total
education aids paid under chapters 124 and 124A, homestead and
agricultural credit aid and disparity reduction aid paid under
this section, local government aid to cities, counties, and
towns paid under chapter 477A, and human services aids,
including, for aids paid in 1991 and thereafter, the amount paid
under subdivision 5b, paid to counties for each taxing
jurisdiction. The commissioner shall apportion each
governmental unit's aids to each school district portion of each
city and town based upon the proportion that each school
district portion of each city and town's tax capacity bears to
the total tax capacity of the local governmental unit. For
purposes of this subdivision, "governmental unit" includes
counties, cities, towns, and school districts, and excludes
special taxing districts.
If the amount determined is less than the amount of
homestead credit and agricultural credit received by all
properties for taxes payable in 1989 in the school district
portion of each city or town, the difference will be additional
homestead and agricultural transition credit guarantee payments
for that school district portion of the city or town in the
following taxes payable year. The additional credit amount
shall proportionately reduce the local tax rates of all
governmental units levying taxes within that school district
portion of the city or town in the following year. The
commissioner shall certify the amounts of additional credits
determined under this subdivision to the county auditor at the
time provided in subdivision 6. For aid payable in 1992 and
subsequent years, the aid payable under this subdivision shall
be reduced by any reductions required in the current year and
permanent reductions required in previous years under section
477A.0132.
Sec. 9. Minnesota Statutes 1991 Supplement, section
273.1398, subdivision 7, is amended to read:
Subd. 7. [APPROPRIATION.] (a) An amount sufficient to pay
the aids and credits provided under this section for school
districts, intermediate school districts, or any group of school
districts levying as a single taxing entity, except aid provided
under subdivisions 4 and 5 for fiscal year 1993 only, is
annually appropriated from the general fund to the commissioner
of revenue education. An amount sufficient to pay the aids and
credits provided under this section for counties, cities, towns,
and special taxing districts, except as provided under paragraph
(b), is annually appropriated from the local government trust
fund to the commissioner of revenue. A jurisdiction's aid
amount may be increased or decreased based on any prior year
adjustments for homestead credit or other property tax credit or
aid programs.
(b) An amount sufficient to pay the aid provided under
subdivision 5a is appropriated four percent from the local
government trust fund and 96 percent from the general fund in
fiscal year 1993 and entirely from the general fund in fiscal
year 1994 and thereafter.
Sec. 10. Minnesota Statutes 1990, section 274.20,
subdivision 4, is amended to read:
Subd. 4. [APPROPRIATION.] There is annually appropriated
from the general fund to the commissioner of revenue education a
sum sufficient to pay the aids provided under this section for
school districts, intermediate school districts, or any group of
school districts levying as a single taxing entity. There is
annually appropriated from the local government trust fund to
the commissioner of revenue a sum sufficient to pay the aids
provided under this section to counties, cities, towns, and
special taxing districts.
Sec. 11. Minnesota Statutes 1990, section 290A.23, is
amended to read:
290A.23 [APPROPRIATION.]
Subdivision 1. [RENTERS CREDIT AND TARGETING.] There is
appropriated from the general fund in the state treasury to the
commissioner of revenue the amount necessary to make the
payments required by this chapter under section 290A.04,
subdivisions 2a and 2h.
Subd. 2. [HOMEOWNERS PROPERTY TAX REFUND.] There is
appropriated from the local government trust fund to the
commissioner of revenue the amount necessary to make the
payments required under section 290A.04, subdivision 2.
Sec. 12. Minnesota Statutes 1990, section 299C.18, is
amended to read:
299C.18 [REPORTS.]
Biennially, on or before November 15, in each even-numbered
year the superintendent shall submit to the governor and the
legislature a detailed report of the operations of the bureau,
of information about crime and the handling of crimes and
criminals by state and local officials collected by the bureau,
and the superintendent's interpretations of the information,
with comments and recommendations. The data contained in the
report on Part I offenses cleared by arrest, as defined by the
United States Department of Justice, shall be collected and
tabulated geographically at least on a county-by-county basis.
In such reports the superintendent shall, from time to time,
include recommendations to the legislature for dealing with
crime and criminals and information as to conditions and methods
in other states in reference thereto, and shall furnish a copy
of such report to each member of the legislature.
Sec. 13. Minnesota Statutes 1991 Supplement, section
477A.012, subdivision 6, is amended to read:
Subd. 6. [AID OFFSET FOR 1992 COURT AND PUBLIC DEFENDER
COSTS.] (a) There shall be deducted from the payment to a county
under this section an amount equal to the cost of jury fees and,
in the case of a county located in the third or sixth judicial
district, of public defense services in juvenile and misdemeanor
cases, to the extent those costs are assumed by the state for
the fiscal year beginning on July 1, 1992. The amount of the
deduction is computed as provided in this subdivision.
(b) By June 30, 1991, the supreme court shall determine and
certify to the department of revenue for each county, except
counties located in the eighth judicial district, the cost for
each county of jury fees during the fiscal year beginning on
July 1, 1992.
(c) By June 30, 1991, the board of public defense shall
determine and certify to the department of revenue the pro rata
share for each county in the third or sixth judicial district of
the cost of the state-financed public defense services in
juvenile and misdemeanor cases in the third or sixth judicial
district during the fiscal year beginning on July 1, 1992.
(d) One-half of the amount computed under paragraphs (b)
and (c) for each county shall be deducted from each local
government aid payment to the county under section 477A.015 in
1992 and each subsequent year. If the amount computed under
paragraph (b) 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, and then,
if necessary, from the disparity reduction aid under section
273.1398, subdivision 3. No payments shall be made from the
local government trust fund to the general fund for county aid
reductions under subdivisions 3, 4, and 6.
Sec. 14. [477A.0121] [COUNTY CRIMINAL JUSTICE AID.]
Subdivision 1. [PURPOSE.] County criminal justice aid is
intended to reduce the reliance of county criminal justice and
corrections programs and associated costs on local property
taxes.
County criminal justice aids must be used to pay expenses
associated with criminal justice activities including law
enforcement, criminal adjudication, and corrections.
Subd. 2. [DEFINITIONS.] For the purposes of this section,
the following definitions apply:
(1) "population" means the population according to the most
recent federal census, or according to the state demographer's
most recent estimate if it has been issued subsequent to the
most recent federal census; and
(2) "Part I crimes" means the total number of Part I crimes
reported for each county by the department of public safety for
the most recent year available. By July 1 of each year the
commissioner of public safety shall certify to the commissioner
of revenue the number of Part I crimes reported for each county.
Subd. 3. [FORMULA.] Each calendar year, the commissioner
of revenue shall distribute county criminal justice aid to each
county in an amount determined according to the following
formula:
(1) one-half shall be distributed to each county in the
same proportion that the county's population is to the
population of all counties in the state; and
(2) one-half shall be distributed to each county in the
same proportion that the county's Part I crimes are to the total
Part I crimes for all counties in the state.
Subd. 4. [PUBLIC DEFENDER COSTS.] Each calendar year, four
percent of the total appropriation for this section shall be
retained by the commissioner of revenue to make reimbursements
to the commissioner of finance for payments made under section
611.27. The reimbursements shall be to defray the additional
costs associated with court-ordered counsel under section
611.27. Any retained amounts not used for reimbursement in a
year shall be carried over and distributed as additional county
criminal justice aid in the following year.
Subd. 5. [PAYMENT DATES.] The aid amounts for each
calendar year shall be paid as provided in section 477A.015.
Subd. 6. [REPORT.] By March 15 of each year following the
year in which criminal justice aids are received, each county
must file a report with the commissioner of revenue describing
how criminal justice aids were spent, and demonstrating that
they were used for criminal justice purposes.
Sec. 15. Minnesota Statutes 1991 Supplement, section
477A.013, subdivision 1, is amended to read:
Subdivision 1. [TOWNS.] In calendar year 1990, each town
that had levied for taxes payable in the prior year a local tax
rate of at least .008 shall receive a distribution equal to 106
percent of the amount received in 1989 under this subdivision.
In calendar year years 1991 and subsequent years 1992, each town
that had levied for taxes payable in the prior year a local tax
rate of at least .008 shall receive a distribution equal to the
amount it received in the previous year under this subdivision
less any permanent reductions made under section 477A.0132. In
1993 and thereafter, each town that had levied for taxes payable
in the prior year a local tax rate of at least .008 shall
receive a distribution equal to the amount it received in 1992
before any nonpermanent reductions made under section 477A.0132
plus $1 per capita based on the town's population.
Sec. 16. Minnesota Statutes 1991 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 1992, a city will receive an
amount equal to the local government aid it received under this
section in the previous year, less any permanent reductions made
under section 477A.0132.
In 1993 and thereafter, a city will receive an amount equal
to 103 percent of the local government aid it received under
this section in 1992 before any nonpermanent reductions made
under section 477A.0132.
For aids payable in 1990, 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, 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.
For purposes of this subdivision, the term "local government
aid" does not include equalization aid amounts under subdivision
5.
Sec. 17. Minnesota Statutes 1990, section 477A.013,
subdivision 5, is amended to read:
Subd. 5. [EQUALIZATION AID.] A city is eligible for
equalization aid equal to 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 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) .30,
and (iii) one minus the ratio of the net tax capacity per capita
to 900. The equalization aid increase under this section is
limited to 12 percent of the total aid the city received 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, appropriated 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 appropriated. If the
equalization aid increase is reduced to zero and the
amount allocated under section 477A.03, subdivision
1, appropriated 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 appropriated.
Sec. 18. Minnesota Statutes 1991 Supplement, section
477A.0132, is amended to read:
477A.0132 [AID REDUCTIONS TO LOCAL GOVERNMENTS.]
Subdivision 1. [AFFECTED LOCAL GOVERNMENTS.] The following
permanent and nonpermanent reductions shall be made in aids paid
to the following local units of government:
(a) For aids payable in 1990, there shall be a permanent
reduction in aids to counties and cities of $28,000,000.
(b) For aids payable on July 20, 1991, there shall be a
nonpermanent reduction in aid payments to counties, cities,
towns, and special taxing districts of $50,000,000.
(c) For aids payable on December 15, 1991, there shall be a
nonpermanent reduction in aids to counties, cities, towns, and
special taxing districts of $35,000,000. For purposes of this
reduction, hospital districts are not considered special taxing
districts.
(d) For aids payable in 1992, there shall be a permanent
reduction in aids to counties, cities, and special taxing
districts of $86,000,000. For purposes of this reduction,
hospital districts are not considered special taxing districts.
(e) For (b) Aid reductions required under section 477A.014,
subdivision 1a 16A.711, subdivision 5, there shall be a
nonpermanent reduction reductions in aids to counties, cities,
towns, and special taxing districts equal to the difference
between the aid amounts certified to be paid and the
amount appropriated under Laws 1991, chapter 291, article 2,
section 3, of the appropriation to pay the aids.
Subd. 2. [CALCULATION OF AID REDUCTION.] The aid reduction
to each local government as provided under subdivision 1 will be
equal to the product of the reduction percentage and its
reduction base. The reduction base is defined as the following:
(a) For subdivision 1, clause (a), the reduction base is
equal to the adjusted revenue base for 1991 1992.
(b) For subdivision 1, clause (b), the reduction base is
equal to the revenue base for 1992.
(c) For subdivision 1, clause (c) (b), the reduction base
is equal to the adjusted revenue base for 1992.
(d) For subdivision 1, clause (d), the reduction base is
equal to the adjusted revenue base for 1992.
(e) For subdivision 1, clause (e), the reduction base is
equal to the adjusted revenue base for the year in which the aid
payment is to be made.
Subd. 3. [ORDER OF AID REDUCTIONS.] The aid reduction to a
local government as calculated under subdivisions 1 and 2, is
first applied to its local government aid under sections
477A.012 and 477A.013 excluding aid under section 477A.013,
subdivision 5; then, if necessary, to its equalization aid under
section 477A.013, subdivision 5; then if necessary, to its
homestead and agricultural credit aid under section 273.1398,
subdivision 2; and then, if necessary, to its disparity
reduction aid under section 273.1398, subdivision 3; and then,
if necessary, to its homestead and agricultural transition
credit guarantee under section 273.1398, subdivision 5. No aid
payment may be less than $0. Aid reductions under this section
in any given year shall be divided equally between the July 20
and December 15 aid payments unless specified otherwise in
subdivision 1.
Sec. 19. Minnesota Statutes 1991 Supplement, 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 local government trust fund to
the commissioner of revenue. For aids payable in 1991 1993 and
thereafter, the total amount of equalization aid paid under
section 477A.013, subdivision 5, is limited to
$19,485,684 $20,011,000.
In 1993 and subsequent years, $8,400,000 per year is
appropriated from the local government trust fund to make
payments under section 477A.0121.
Sec. 20. [CITY OF ALDEN; LOCAL GOVERNMENT AID.]
For aid payments in 1993 and thereafter, local government
aid to the city of Alden, Freeborn county, as determined under
Minnesota Statutes, sections 477A.013 and 477A.0132, is
increased by $838. These amounts reimburse the city for state
aid decreases attributable to an error in the city's 1990 levy,
payable in 1991.
If local government aid provisions are enacted in 1992 or
thereafter which do not use the city's 1990 levy as a base year
to determine local government aids, this section does not apply
to those aids.
The commissioner of revenue shall pay the local government
aid under this section from the amounts appropriated to the
commissioner by law from the local government trust fund for
payment of local government aid. For purposes of any
proportional increases or decreases in local government aid
under Minnesota Statutes, section 16A.711, due to the amount of
funds in the local government trust fund, payments under this
section must be included in local government aid payable to the
city of Alden.
Sec. 21. [LOCAL APPROVAL; EFFECTIVE DATE.]
Section 20 is effective the day following compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of Alden.
Sec. 22. [AID ADJUSTMENT.]
The amount by which any county's homestead and agricultural
credit aid offset exceeded its actual public defender levy for
1991 shall be permanently added back to the county's homestead
and agricultural credit aid base for aids paid in 1993.
Counties may apply for an aid adjustment on a form prescribed by
the commissioner of revenue by July 1, 1992. The aggregate
amount of all adjustments shall not exceed $500,000. If the sum
of all counties aid adjustments exceeds this amount, the
commissioner shall proportionately reduce all adjustment amounts
so that the total is $500,000.
Sec. 23. [APPROPRIATION CANCELLATION.]
Any fiscal year 1993 appropriation from the general fund
enacted prior to enactment of this act to pay community social
services aids under Minnesota Statutes, section 256E.06, is
canceled.
Sec. 24. [APPROPRIATION.]
(a) The sum of $978,000 is appropriated from the general
fund to the commissioner of human services in fiscal year 1993
for the state takeover of the growth of the income maintenance
aids under section 5.
(b) The sum of $2,483,375 is appropriated from the general
fund to the secretary of state in fiscal year 1992 for the
purposes authorized in section 4. If any amount certified under
section 4 remain unpaid on July 1, 1992, a sum sufficient to pay
the remaining aids is carried forward to fiscal year 1993
provided the total appropriation does not exceed $2,483,375.
Sec. 25. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall change references to the homestead and
agricultural credit guarantee to transition credit wherever the
terms appear in Minnesota Statutes.
Sec. 26. [REPEALER.]
Minnesota Statutes 1991 Supplement, section 16A.711,
subdivision 3; and Laws 1991, chapter 291, article 2, section 3,
is repealed.
Sec. 27. [EFFECTIVE DATE.]
Sections 4 and 24, paragraph (b), are effective the day
following final enactment. Sections 1, 11, and 13 are effective
July 1, 1993. Section 10 is effective July 1, 1994. Section 14
is effective for aids payable in 1993 and thereafter.
ARTICLE 2
PROPERTY TAXES
Section 1. Minnesota Statutes 1991 Supplement, section
47.209, is amended to read:
47.209 [MANUFACTURED HOME FINANCING; PROPERTY TAX ESCROW
COLLECTION REQUIREMENT.]
Subdivision 1. [APPLICABILITY.] This section applies to
any agreement entered into after December 31, 1991 1992, for the
financing or refinancing of a purchase of a manufactured home
shall require that the lender maintain an escrow account for
deposit of payments for property taxes payable on the
manufactured home, and that the borrower make the required
payments. As used in this section and section 277.17, "lender"
includes a state bank and trust company, national banking
association, state or federally chartered savings and loan
association, mortgage bank, mutual savings bank, insurance
company, credit union, or a dealer as defined in section
327B.01, subdivision 7, who that enters into an agreement for
financing or refinancing a purchase of a manufactured home.
Subd. 2. [CONDITION OF FINANCING AGREEMENT.] Each
agreement must contain a statement that it is a condition of the
agreement that the borrower must agree to pay all taxes on the
manufactured home when due.
Subd. 3. [COLLECTION OF DELINQUENT TAXES.] Within 30 days
of receipt of a notice of delinquency from a county under
section 277.17, the lender must notify the mortgagor that the
tax must be paid in full no later than 60 days from the date of
issuance of the notice. The notice must inform the mortgagor
that if the tax is not paid by that date, the lender may pay the
delinquent tax, together with any penalty and interest then due,
in full to the county. The notice may inform the mortgagor of
the lender's option to begin foreclosure proceedings. The
county may only request payment and collection of taxes that
have been delinquent for no longer than one year under this
section. The county must notify the lender if the owner of the
manufactured home pays the delinquent taxes at any time during
the 60 days after the notice has been issued.
Sec. 2. Minnesota Statutes 1990, section 103B.241, is
amended to read:
103B.241 [LEVY LEVIES.]
Subdivision 1. [WATERSHED PLANS.] A levy to pay the
increased costs to a local government unit or watershed
management organization of implementing sections 103B.231 and
103B.235 or to pay costs of improvements and maintenance of
improvements identified in an approved and adopted plan shall be
in addition to any other taxes authorized by law.
Notwithstanding any provision to the contrary in chapter 103D, a
watershed district may levy a tax sufficient to pay the
increased costs to the district of implementing sections
103B.231 and 103B.235. The proceeds of any tax levied under
this section shall be deposited in a separate fund and expended
only for the purposes authorized by this section. Watershed
management organizations and local government units may
accumulate the proceeds of levies as an alternative to issuing
bonds to finance improvements. The amount authorized under this
section and levied by a governmental subdivision is not exempt
from sections 275.50 to 275.56.
Subd. 2. [PRIORITY PROGRAMS; SOIL AND WATER CONSERVATION
DISTRICTS.] A county may levy amounts necessary to pay the
reasonable increased costs to soil and water conservation
districts of administering and implementing priority programs
identified in an approved and adopted plan.
Sec. 3. Minnesota Statutes 1990, section 103B.255, is
amended by adding a subdivision to read:
Subd. 13. [PROPERTY TAX LEVIES.] A metropolitan county may
levy amounts necessary to administer and implement an approved
and adopted groundwater plan. A county may levy amounts
necessary to pay the reasonable increased costs to soil and
water conservation districts and watershed management
organizations of administering and implementing priority
programs identified in the county's groundwater plan.
Sec. 4. Minnesota Statutes 1990, section 103B.335, is
amended to read:
103B.335 [TAX; EXEMPTION FROM PER CAPITA LEVY LIMIT.]
Subdivision 1. [LOCAL WATER PLANNING AND MANAGEMENT.] The
governing body of any county, municipality, or township may levy
a tax in an amount required to implement sections 103B.301 to
103B.355. The amount of the levy up to 0.01813 percent of
taxable market value is exempt from the per capita levy limit
under section 275.11.
Subd. 2. [PRIORITY PROGRAMS; CONSERVATION AND WATERSHED
DISTRICTS.] A county may levy amounts necessary to pay the
reasonable increased costs to soil and water conservation
districts and watershed districts of administering and
implementing priority programs identified in an approved and
adopted plan.
Sec. 5. Minnesota Statutes 1990, section 124.2131,
subdivision 1, is amended to read:
Subdivision 1. [ADJUSTED GROSS TAX CAPACITY.] (a) [
COMPUTATION.] The department of revenue shall annually conduct
an assessment/sales ratio study of the taxable property in each
school district in accordance with the procedures in paragraphs
(b) and (c). Based upon the results of this assessment/sales
ratio study, the department of revenue shall determine an
aggregate equalized gross tax capacity and an aggregate
equalized net tax capacity for the various classes of taxable
property in each school district, which tax capacity shall be
designated as the adjusted gross tax capacity and the adjusted
net tax capacity, respectively. The department of revenue may
incur the expense necessary to make the determinations. The
commissioner of revenue may reimburse any county or governmental
official for requested services performed in ascertaining the
adjusted gross tax capacity and the adjusted net tax capacity.
On or before March 15 annually, the department of revenue shall
file with the chair of the tax committee of the house of
representatives and the chair of the committee on taxes and tax
laws of the senate a report of adjusted gross tax capacities and
adjusted net tax capacities. On or before April 15 annually,
the department of revenue shall file its final report on the
adjusted gross tax capacities and adjusted net tax capacities
established by the previous year's assessment with the
commissioner of education and each county auditor for those
school districts for which the auditor has the responsibility
for determination of local tax rates. A copy of the report so
filed shall be mailed to the clerk of each district involved and
to the county assessor or supervisor of assessments of the
county or counties in which each district is located.
(b) [METHODOLOGY.] In making its annual assessment/sales
ratio studies, the department of revenue shall use a methodology
consistent with the most recent Standard on Assessment Ratio
Studies published by the assessment standards committee of the
International Association of Assessing Officers. The
commissioner of revenue shall supplement this general
methodology with specific procedures necessary for execution of
the study in accordance with other Minnesota laws impacting the
assessment/sales ratio study. The commissioner shall document
these specific procedures in writing and shall publish the
procedures in the State Register, but these procedures will not
be considered "rules" pursuant to the Minnesota administrative
procedure act.
(c) [AGRICULTURAL LANDS.] For purposes of determining the
adjusted gross tax capacity and adjusted net tax capacity of
agricultural lands for the calculation of adjusted gross tax
capacities and adjusted net tax capacities, the market value of
agricultural lands shall be the price for which the property
would sell in an arms length transaction.
(d) [FORCED SALES.] The commissioner may include forced
sales in the assessment/sales ratio studies if it is determined
by the commissioner that these forced sales indicate true market
value.
Sec. 6. Minnesota Statutes 1990, section 270B.12, is
amended by adding a subdivision to read:
Subd. 8. [COUNTY ASSESSORS.] The commissioner may disclose
names and social security numbers of individuals who have
applied for both homestead classification under section 273.13
and a property tax refund as a renter under chapter 290A for the
purpose of and to the extent necessary to administer section
290A.25.
Sec. 7. Minnesota Statutes 1990, section 271.06,
subdivision 7, is amended to read:
Subd. 7. [RULES.] (a) The rules of evidence and civil
procedure for the district court of Minnesota shall govern the
procedures in the tax court, where practicable. The tax court
may adopt rules under chapter 14. The rules in effect on
January 1, 1989, apply until superseded.
(b) Notwithstanding paragraph (a), information, including
income and expense figures, verified net rentable areas, and
anticipated income and expenses, for income-producing property
which is not provided to the county assessor at least 45 days
before any hearing under this chapter, is not admissible except
if necessary to prevent undue hardship or when the failure to
provide it was due to the unavailability of the evidence at that
time.
(c) Notwithstanding paragraph (a) and provided that the
information as contained in paragraph (b) is timely submitted to
the county assessor, the county assessor shall furnish the
petitioner at least five days before the hearing under this
chapter with the property's appraisal, if any, which will be
presented to the court at the hearing. The petitioner shall
furnish to the county assessor at least five days before the
hearing under this chapter with the property's appraisal, if
any, which will be presented to the court at the hearing. An
appraisal of the petitioner's property done by or for the county
or by or for the petitioner shall not be admissible as evidence
if the provisions within this paragraph are not met.
Sec. 8. Minnesota Statutes 1991 Supplement, section
271.21, subdivision 6, is amended to read:
Subd. 6. (a) The hearing in the small claims division
shall be informal and without a jury. The judge may hear any
testimony and receive any evidence the judge deems necessary or
desirable for a just determination of the case except as
provided in paragraph (b). Sales ratio studies published by the
department of revenue may be admissible as a public record
without foundation. All testimony shall be given under oath. A
party may appear personally or may be represented or accompanied
by an attorney. No transcript of the proceedings shall be kept.
(b) Information, including income and expense figures,
verified net rentable areas, and anticipated income and
expenses, for income-producing property which is not provided to
the county assessor at least 30 days before any hearing under
this chapter, is not admissible except if necessary to prevent
undue hardship or when the failure to provide it was due to the
unavailability of the evidence at that time.
Sec. 9. Minnesota Statutes 1991 Supplement, section
272.02, subdivision 1, is amended to read:
Subdivision 1. All property described in this section to
the extent herein limited shall be exempt from taxation:
(1) all public burying grounds;
(2) all public schoolhouses;
(3) all public hospitals;
(4) all academies, colleges, and universities, and all
seminaries of learning;
(5) all churches, church property, and houses of worship;
(6) institutions of purely public charity except parcels of
property containing structures and the structures described in
section 273.13, subdivision 25, paragraph (c), clauses (1), (2),
and (3), or paragraph (d);
(7) all public property exclusively used for any public
purpose;
(8) except for the taxable personal property enumerated
below, all personal property and the property described in
section 272.03, subdivision 1, paragraphs (c) and (d), shall be
exempt.
The following personal property shall be taxable:
(a) personal property which is part of an electric
generating, transmission, or distribution system or a pipeline
system transporting or distributing water, gas, crude oil, or
petroleum products or mains and pipes used in the distribution
of steam or hot or chilled water for heating or cooling
buildings and structures;
(b) railroad docks and wharves which are part of the
operating property of a railroad company as defined in section
270.80;
(c) personal property defined in section 272.03,
subdivision 2, clause (3);
(d) leasehold or other personal property interests which
are taxed pursuant to section 272.01, subdivision 2; 273.124,
subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were
the fee owner;
(e) manufactured homes and sectional structures, including
storage sheds, decks, and similar removable improvements
constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section
274.19, subdivision 8, paragraph (f); and
(f) flight property as defined in section 270.071.
(9) Personal property used primarily for the abatement and
control of air, water, or land pollution to the extent that it
is so used, and real property which is used primarily for
abatement and control of air, water, or land pollution as part
of an agricultural operation, as a part of a centralized
treatment and recovery facility operating under a permit issued
by the Minnesota pollution control agency pursuant to chapters
115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730,
and 7045.0020 to 7045.1260, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals,
oils, chemicals, water, sludges, or inorganic materials from
hazardous industrial wastes, or as part of an electric
generation system. For purposes of this clause, personal
property includes ponderous machinery and equipment used in a
business or production activity that at common law is considered
real property.
Any taxpayer requesting exemption of all or a portion of
any real property or any equipment or device, or part thereof,
operated primarily for the control or abatement of air or water
pollution shall file an application with the commissioner of
revenue. The equipment or device shall meet standards, rules,
or criteria prescribed by the Minnesota pollution control
agency, and must be installed or operated in accordance with a
permit or order issued by that agency. The Minnesota pollution
control agency shall upon request of the commissioner furnish
information or advice to the commissioner. On determining that
property qualifies for exemption, the commissioner shall issue
an order exempting the property from taxation. The equipment or
device shall continue to be exempt from taxation as long as the
permit issued by the Minnesota pollution control agency remains
in effect.
(10) Wetlands. For purposes of this subdivision,
"wetlands" means: (i) land described in section 103G.005,
subdivision 18; (ii) land which is mostly under water, produces
little if any income, and has no use except for wildlife or
water conservation purposes, provided it is preserved in its
natural condition and drainage of it would be legal, feasible,
and economically practical for the production of livestock,
dairy animals, poultry, fruit, vegetables, forage and grains,
except wild rice; or (iii) land in a wetland preservation area
under sections 103F.612 to 103F.616. "Wetlands" under items (i)
and (ii) include adjacent land which is not suitable for
agricultural purposes due to the presence of the wetlands, but
do not include woody swamps containing shrubs or trees, wet
meadows, meandered water, streams, rivers, and floodplains or
river bottoms. Exemption of wetlands from taxation pursuant to
this section shall not grant the public any additional or
greater right of access to the wetlands or diminish any right of
ownership to the wetlands.
(11) Native prairie. The commissioner of the department of
natural resources shall determine lands in the state which are
native prairie and shall notify the county assessor of each
county in which the lands are located. Pasture land used for
livestock grazing purposes shall not be considered native
prairie for the purposes of this clause. Upon receipt of an
application for the exemption provided in this clause for lands
for which the assessor has no determination from the
commissioner of natural resources, the assessor shall refer the
application to the commissioner of natural resources who shall
determine within 30 days whether the land is native prairie and
notify the county assessor of the decision. Exemption of native
prairie pursuant to this clause shall not grant the public any
additional or greater right of access to the native prairie or
diminish any right of ownership to it.
(12) Property used in a continuous program to provide
emergency shelter for victims of domestic abuse, provided the
organization that owns and sponsors the shelter is exempt from
federal income taxation pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, as amended through December 31,
1986, notwithstanding the fact that the sponsoring organization
receives funding under section 8 of the United States Housing
Act of 1937, as amended.
(13) If approved by the governing body of the municipality
in which the property is located, property not exceeding one
acre which is owned and operated by any senior citizen group or
association of groups that in general limits membership to
persons age 55 or older and is organized and operated
exclusively for pleasure, recreation, and other nonprofit
purposes, no part of the net earnings of which inures to the
benefit of any private shareholders; provided the property is
used primarily as a clubhouse, meeting facility, or recreational
facility by the group or association and the property is not
used for residential purposes on either a temporary or permanent
basis.
(14) To the extent provided by section 295.44, real and
personal property used or to be used primarily for the
production of hydroelectric or hydromechanical power on a site
owned by the state or a local governmental unit which is
developed and operated pursuant to the provisions of section
103G.535.
(15) If approved by the governing body of the municipality
in which the property is located, and if construction is
commenced after June 30, 1983:
(a) a "direct satellite broadcasting facility" operated by
a corporation licensed by the federal communications commission
to provide direct satellite broadcasting services using direct
broadcast satellites operating in the 12-ghz. band; and
(b) a "fixed satellite regional or national program service
facility" operated by a corporation licensed by the federal
communications commission to provide fixed satellite-transmitted
regularly scheduled broadcasting services using satellites
operating in the 6-ghz. band.
An exemption provided by clause (15) shall apply for a period
not to exceed five years. When the facility no longer qualifies
for exemption, it shall be placed on the assessment rolls as
provided in subdivision 4. Before approving a tax exemption
pursuant to this paragraph, the governing body of the
municipality shall provide an opportunity to the members of the
county board of commissioners of the county in which the
facility is proposed to be located and the members of the school
board of the school district in which the facility is proposed
to be located to meet with the governing body. The governing
body shall present to the members of those boards its estimate
of the fiscal impact of the proposed property tax exemption.
The tax exemption shall not be approved by the governing body
until the county board of commissioners has presented its
written comment on the proposal to the governing body or 30 days
has passed from the date of the transmittal by the governing
body to the board of the information on the fiscal impact,
whichever occurs first.
(16) Real and personal property owned and operated by a
private, nonprofit corporation exempt from federal income
taxation pursuant to United States Code, title 26, section
501(c)(3), primarily used in the generation and distribution of
hot water for heating buildings and structures.
(17) Notwithstanding section 273.19, state lands that are
leased from the department of natural resources under section
92.46.
(18) Electric power distribution lines and their
attachments and appurtenances, that are used primarily for
supplying electricity to farmers at retail.
(19) Transitional housing facilities. "Transitional
housing facility" means a facility that meets the following
requirements. (i) It provides temporary housing to parents and
children who are receiving AFDC or parents of children who are
temporarily in foster care individuals, couples, or families.
(ii) It has the purpose of reuniting families and enabling
parents or individuals to obtain self-sufficiency, advance their
education, get job training, or become employed in jobs that
provide a living wage. (iii) It provides support services such
as child care, work readiness training, and career development
counseling; and a self-sufficiency program with periodic
monitoring of each resident's progress in completing the
program's goals. (iv) It provides services to a resident of the
facility for at least six three months but no longer than three
years, except residents enrolled in an educational or vocational
institution or job training program. These residents may
receive services during the time they are enrolled but in no
event longer than four years. (v) It is sponsored by an
organization that has received a grant under either section
256.7365 for the biennium ending June 30, 1989, or section
462A.07, subdivision 15, for the biennium ending June 30, 1991,
for the purposes of providing the services in items (i) to
(iv). (vi) It is sponsored owned and operated or under lease
from a unit of government or governmental agency under a
property disposition program and operated by an organization
that is one or more organizations exempt from federal income tax
under section 501(c)(3) of the Internal Revenue Code of 1986, as
amended through December 31, 1987. This exemption applies
notwithstanding the fact that the sponsoring organization
receives financing by a direct federal loan or federally insured
loan or a loan made by the Minnesota housing finance agency
under the provisions of either Title II of the National Housing
Act or the Minnesota housing finance agency law of 1971 or rules
promulgated by the agency pursuant to it, and notwithstanding
the fact that the sponsoring organization receives funding under
Section 8 of the United States Housing Act of 1937, as amended.
(20) Real and personal property, including leasehold or
other personal property interests, owned and operated by a
corporation if more than 50 percent of the total voting power of
the stock of the corporation is owned collectively by: (i) the
board of regents of the University of Minnesota, (ii) the
University of Minnesota Foundation, an organization exempt from
federal income taxation under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended through December 31, 1990, and
(iii) a corporation organized under chapter 317A, which by its
articles of incorporation is prohibited from providing pecuniary
gain to any person or entity other than the regents of the
University of Minnesota; which property is used primarily to
manage or provide goods, services, or facilities utilizing or
relating to large-scale advanced scientific computing resources
to the regents of the University of Minnesota and others.
(21) Wind energy conversion systems, as defined in section
216C.06, subdivision 12, installed after January 1, 1991, and
used as an electric power source.
(22) Containment tanks, cache basins, and that portion of
the structure needed for the containment facility used to
confine agricultural chemicals as defined in section 18D.01,
subdivision 3, as required by the commissioner of agriculture
under chapter 18B or 18C.
(23) Photovoltaic devices, as defined in article 8, section
1, installed after January 1, 1992, and used to produce or store
electric power.
(24) Real and personal property owned and operated by a
private, nonprofit corporation exempt from federal income
taxation pursuant to United States Code, title 26, section
501(c)(3), primarily used for an ice arena or ice rink, and used
primarily for youth and high school programs.
Sec. 10. Minnesota Statutes 1990, section 272.115, is
amended to read:
272.115 [CERTIFICATE OF VALUE; FILING.]
Subdivision 1. Except as provided in subdivision 1a,
whenever any real estate is sold on or after January 1, 1978,
for a consideration in excess of $1,000, whether by warranty
deed, quitclaim deed, contract for deed or any other method of
sale, the grantor, grantee or the legal agent of either shall
file a certificate of value with the county auditor in the
county in which the property is located within 30 days of the
sale. Value shall, in the case of any deed not a gift, be the
amount of the full actual consideration thereof, paid or to be
paid, including the amount of any lien or liens assumed. The
certificate of value shall include the classification to which
the property belongs for the purpose of determining the fair
market value of the property. The certificate shall include
financing terms and conditions of the sale which are necessary
to determine the actual, present value of the sale price for
purposes of the sales ratio study. The commissioner of revenue
shall promulgate administrative rules specifying the financing
terms and conditions which must be included on the certificate.
Subd. 1a. Whenever any real estate, a portion or all of
which is classified as homestead under chapter 273 is sold or
transferred on or after January 1, 1993, whether by warranty
deed, quitclaim deed, contract for deed, or any other method of
sale or transfer, the grantor, grantee, or the legal agent of
either shall file a certificate of value with the county auditor
in the county in which the property is located within 30 days of
the sale or transfer.
Subd. 2. The certificate of value shall require such facts
and information as may be determined by the commissioner to be
reasonably necessary in the administration of the state
education aid formulas. The form of the certificate of value
shall be prescribed by the department of revenue which shall
provide an adequate supply of forms to each county auditor.
Subd. 3. The county auditor shall transmit two true copies
of the certificate of value to the assessor who shall insert the
most recent market value and when available, the year of
original construction of each parcel of property on both copies
and shall transmit one copy to the department of revenue. Upon
the request of a city council located within the county, a copy
of each certificate of value for property located in that city
shall be made available to the governing body of the city. The
assessor shall remove the homestead classification for the
following assessment year from a property which is sold or
transferred, unless the grantee or the person to whom the
property is transferred completes a homestead application under
section 273.124, subdivision 13, and qualifies for homestead
status.
Subd. 4. No real estate sold or transferred on or after
January 1, 1978, for which a certificate of value is required
pursuant to 1993, under subdivision 1 1a shall be classified as
a homestead, unless a certificate of value has been filed with
the county auditor in accordance with this section.
This subdivision shall apply to any real estate taxes that
are payable the year or years following the sale or transfer of
the property.
Sec. 11. Minnesota Statutes 1990, section 273.11, is
amended by adding a subdivision to read:
Subd. 12. [NEIGHBORHOOD LAND TRUSTS.] (a) A neighborhood
land trust, as defined under chapter 462A, is (i) a
community-based nonprofit corporation organized under chapter
317A, which qualifies for tax exempt status under 501(c)(3), or
(ii) a "city" as defined in section 462C.02, subdivision 6,
which has received funding from the Minnesota housing finance
agency for purposes of the neighborhood land trust program. The
Minnesota housing finance agency shall set the criteria for
neighborhood land trusts.
(b) All occupants of a neighborhood land trust building
must have a family income of less than 80 percent of the greater
of (1) the state median income, or (2) the area or county median
income, as most recently determined by the department of housing
and urban development. Before the neighborhood land trust can
rent or sell a unit to an applicant, the neighborhood land trust
shall verify to the satisfaction of the administering agency or
the city that the family incomes of each person or family
applying for a unit in the neighborhood land trust building is
within the income criteria provided in this paragraph. The
administering agency or the city shall verify to the
satisfaction of the county assessor that the occupant meets the
income criteria under this paragraph. The property tax benefits
under paragraph (c) shall be granted only to property owned or
rented by persons or families within the qualifying income
limits. The family income criteria and verification is only
necessary at the time of initial occupancy in the property.
(c) A unit which is owned by the occupant and used as a
homestead by the occupant qualifies for homestead treatment as
class 1a under section 273.13, subdivision 22. A unit which is
rented by the occupant and used as a homestead by the occupant
shall be class 4a or 4b property, under section 273.13,
subdivision 25, whichever is applicable. Any remaining portion
of the property not used for residential purposes shall be
classified by the assessor in the appropriate class based upon
the use of that portion of the property owned by the
neighborhood land trust. The land upon which the building is
located shall be assessed at the same class rate as the units
within the building, provided that if the building contains some
units assessed as class 1a and some units assessed as class 4a
or 4b, the market value of the land will be assessed in the same
proportions as the value of the building.
Sec. 12. Minnesota Statutes 1990, section 273.11, is
amended by adding a subdivision to read:
Subd. 13. [VALUATION OF INCOME-PRODUCING
PROPERTY.] Beginning with the 1995 assessment, only accredited
assessors or senior accredited assessors may value
income-producing property for ad valorem tax purposes.
"Income-producing property" as used in this subdivision means
the taxable property in class 3a and 3b in section 273.13,
subdivision 24; class 4a and 4c, except for seasonal
recreational property not used for commercial purposes, and
class 4d in section 273.13, subdivision 25; and class 5 in
section 273.13, subdivision 31.
Sec. 13. Minnesota Statutes 1991 Supplement, section
273.124, subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] (a) Residential real estate
that is occupied and used for the purposes of a homestead by its
owner, who must be a Minnesota resident, is a residential
homestead.
Agricultural land, as defined in section 273.13,
subdivision 23, that is occupied and used as a homestead by its
owner, who must be a Minnesota resident, is an agricultural
homestead.
Dates for establishment of a homestead and homestead
treatment provided to particular types of property are as
provided in this section.
The assessor shall require proof, by affidavit or otherwise
as provided in subdivision 13, of the facts upon which
classification as a homestead may be
determined. Notwithstanding any other law, the assessor may at
any time require a homestead application to be filed in order to
verify that any property classified as a homestead continues to
be eligible for homestead status.
(b) For purposes of this section, homestead property shall
include property which is used for purposes of the homestead but
is separated from the homestead by a road, street, lot,
waterway, or other similar intervening property. The term "used
for purposes of the homestead" shall include but not be limited
to uses for gardens, garages, or other outbuildings commonly
associated with a homestead, but shall not include vacant land
held primarily for future development. In order to receive
homestead treatment for the noncontiguous property, the owner
shall apply for it to the assessor by July 1 of the year when
the treatment is initially sought. After initial qualification
for the homestead treatment, additional applications for
subsequent years are not required.
(c) In the case of property owned by a married couple in
joint tenancy or tenancy in common, the assessor must not deny
homestead treatment in whole or in part if only one of the
spouses is occupying the property and the other spouse is absent
due to divorce or separation, or is a resident of a nursing home
or a boarding care facility.
(d) If an individual is purchasing property with the intent
of claiming it as a homestead, and is required by the terms of
the financing agreement to have a relative shown on the deed as
a coowner, the assessor shall allow a full homestead
classification. Residential real estate that is occupied and
used for purposes of a homestead by a relative of the owner is a
homestead but only to the extent of the homestead treatment that
would be provided if the related owner occupied the property.
For purposes of this paragraph, "relative" means a parent,
stepparent, child, stepchild, spouse, grandparent, grandchild,
brother, sister, uncle, or aunt. This relationship may be by
blood or marriage. Property that was classified as seasonal
recreational residential property at the time when treatment
under this paragraph would first apply shall continue to be
classified as seasonal recreational residential property for the
first two assessment years beginning after the date when the
relative of the owner occupies the property as a homestead; this
delay also applies to property that, in the absence of this
paragraph, would have been classified as seasonal recreational
residential property at the time when the residence was
constructed. Neither the related occupant nor the owner of the
property may claim a property tax refund under chapter 290A for
a homestead occupied by a relative. In the case of a residence
located on agricultural land, only the house, garage, and
immediately surrounding one acre of land shall be classified as
a homestead under this paragraph.
(e) In the case of property owned and formerly occupied by
two or more persons in joint tenancy or tenancy in common, when
those persons are related to each other as parents and children
or as stepparents and stepchildren, and when one or more of the
owners ceases to occupy the property, the assessor shall
continue to allow a full homestead classification as long as at
least one of the owners continues to occupy the property for
purposes of a homestead. This paragraph applies only to single
family residential property.
Sec. 14. Minnesota Statutes 1991 Supplement, section
273.124, subdivision 6, is amended to read:
Subd. 6. [LEASEHOLD COOPERATIVES.] When one or more
dwellings or one or more buildings which each contain several
dwelling units is owned by a nonprofit corporation subject to
the provisions of chapter 317A and qualifying under section
501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as
amended through December 31, 1990, or a limited partnership
which corporation or partnership operates the property in
conjunction with a cooperative association, and has received
public financing, homestead treatment may be claimed by the
cooperative association on behalf of the members of the
cooperative for each dwelling unit occupied by a member of the
cooperative. The cooperative association must provide the
assessor with the social security numbers of those members. To
qualify for the treatment provided by this subdivision, the
following conditions must be met:
(a) the cooperative association must be organized under
chapter 308A and all voting members of the board of directors
must be resident tenants of the cooperative and must be elected
by the resident tenants of the cooperative;
(b) the cooperative association must have a lease for
occupancy of the property for a term of at least 20 years, which
permits the cooperative association, while not in default on the
lease, to participate materially in the management of the
property, including material participation in establishing
budgets, setting rent levels, and hiring and supervising a
management agent;
(c) to the extent permitted under state or federal law, the
cooperative association must have a right under a written
agreement with the owner to purchase the property if the owner
proposes to sell it; if the cooperative association does not
purchase the property it is offered for sale, the owner may not
subsequently sell the property to another purchaser at a price
lower than the price at which it was offered for sale to the
cooperative association unless the cooperative association
approves the sale;
(d) the cooperative must meet one of the following criteria
with respect to the income of its members: (1) a minimum of 75
percent of members must have incomes at or less than 80 percent
of area median income, (2) a minimum of 40 percent of the
cooperative association's members must have incomes at or less
than 60 percent of area median gross income, or (3) a minimum of
20 percent of members must have incomes at or less than 50
percent of area median income as determined by the United States
Secretary of Housing and Urban Development under section
142(d)(2)(B) of the Internal Revenue Code of 1986, as amended
through December 31, 1991. For purposes of this clause, "member
income" means the income of a member existing at the time the
member acquires cooperative membership, and "median income"
means the St. Paul-Minneapolis metropolitan area median income
as determined by the United States Department of Housing and
Urban Development;
(e) if a limited partnership owns the property, it must
include as the managing general partner a nonprofit organization
operating under the provisions of chapter 317A and qualifying
under section 501(c)(3) or 501(c)(4) of the Internal Revenue
Code of 1986, as amended through December 31, 1990, and the
limited partnership agreement must provide that the managing
general partner have sufficient powers so that it materially
participates in the management and control of the limited
partnership;
(f) prior to becoming a member of a leasehold cooperative
described in this subdivision, a person must have received
notice that (1) describes leasehold cooperative property in
plain language, including but not limited to the effects of
classification under this subdivision on rents, property taxes
and tax credits or refunds, and operating expenses, and (2)
states that copies of the articles of incorporation and bylaws
of the cooperative association, the lease between the owner and
the cooperative association, a sample sublease between the
cooperative association and a tenant, and, if the owner is a
partnership, a copy of the limited partnership agreement, can be
obtained upon written request at no charge from the owner, and
the owner must send or deliver the materials within seven days
after receiving any request;
(g) if a dwelling unit of a building was occupied on the
60th day prior to the date on which the unit became leasehold
cooperative property described in this subdivision, the notice
described in paragraph (f) must have been sent by first class
mail to the occupant of the unit at least 60 days prior to the
date on which the unit became leasehold cooperative property.
For purposes of the notice under this paragraph, the copies of
the documents referred to in paragraph (f) may be in proposed
version, provided that any subsequent material alteration of
those documents made after the occupant has requested a copy
shall be disclosed to any occupant who has requested a copy of
the document. Copies of the articles of incorporation and
certificate of limited partnership shall be filed with the
secretary of state after the expiration of the 60-day period
unless the change to leasehold cooperative status does not
proceed; and
(h) the county attorney of the county in which the property
is located must certify to the assessor that the property meets
the requirements of this subdivision.;
(i) the public financing received must be from at least one
of the following sources:
(1) tax increment financing proceeds used for the
acquisition or rehabilitation of the building or interest rate
writedowns relating to the acquisition of the building;
(2) government issued bonds exempt from taxes under section
103 of the Internal Revenue Code of 1986, as amended through
December 31, 1991, the proceeds of which are used for the
acquisition or rehabilitation of the building;
(3) programs under section 221(d)(3), 202, or 236, of Title
II of the National Housing Act;
(4) rental housing program funds under Section 8 of the
United States Housing Act of 1937 or the market rate family
graduated payment mortgage program funds administered by the
Minnesota housing finance agency that are used for the
acquisition or rehabilitation of the building;
(5) low-income housing credit under section 42 of the
Internal Revenue Code of 1986, as amended through December 31,
1991;
(6) public financing provided by a local government used
for the acquisition or rehabilitation of the building, including
grants or loans from (i) federal community development block
grants; (ii) HOME block grants; or (iii) residential rental
bonds issued under chapter 474A; or
(7) other rental housing program funds provided by the
Minnesota housing finance agency for the acquisition or
rehabilitation of the building;
(j) at the time of the initial request for homestead
classification or of any transfer of ownership of the property,
the governing body of the municipality in which the property is
located must hold a public hearing and make the following
findings:
(1) that the granting of the homestead treatment of the
apartment's units will facilitate safe, clean, affordable
housing for the cooperative members that would otherwise not be
available absent the homestead designation;
(2) that the owner has presented information satisfactory
to the governing body showing that the savings garnered from the
homestead designation of the units will be used to reduce
tenant's rents or provide a level of furnishing or maintenance
not possible absent the designation; and
(3) that the requirements of paragraphs (b), (d), and (i)
have been met.
Homestead treatment must be afforded to units occupied by
members of the cooperative association and the units must be
assessed as provided in subdivision 3, provided that any unit
not so occupied shall be classified and assessed pursuant to the
appropriate class. No more than three acres of land may, for
assessment purposes, be included with each dwelling unit that
qualifies for homestead treatment under this subdivision.
Sec. 15. Minnesota Statutes 1991 Supplement, section
273.124, subdivision 9, is amended to read:
Subd. 9. [HOMESTEAD ESTABLISHED AFTER ASSESSMENT DATE.]
Any property that was not used for the purpose of a homestead on
the assessment date, but which was used for the purpose of a
homestead by June 1 of a year, constitutes class 1 or class 2a.
Any taxpayer meeting the requirements of this subdivision
must notify the county assessor, or the assessor who has the
powers of the county assessor pursuant to under section 273.063,
in writing, prior to June 15 of the year of occupancy in order
to qualify under this subdivision. The assessor must not deny
full homestead treatment to a property that is partially
homesteaded on January 2 but occupied for the purpose of a full
homestead by June 1 of a year.
The county assessor and the county auditor may make the
necessary changes on their assessment and tax records to provide
for proper homestead classification as provided in this
subdivision.
If homestead classification has not been requested as of
December 15, the assessor will classify the property as
nonhomestead for the current assessment year for taxes payable
in the following year, provided that the owner of any property
qualifying under this subdivision, which has not been accorded
the benefits of this subdivision, regardless of whether or not
the notification has been timely filed, may be entitled to
receive homestead classification by proper application as
provided in section 270.07 or 375.192.
The county assessor shall publish in a newspaper of general
circulation within the county no later than June 1 of each year
a notice informing the public of the requirement to file an
application for homestead prior to June 15.
Sec. 16. Minnesota Statutes 1991 Supplement, section
273.124, subdivision 13, is amended to read:
Subd. 13. [SOCIAL SECURITY NUMBER REQUIRED FOR HOMESTEAD
APPLICATION.] On or before January 2, 1993, each county assessor
shall mail a homestead application to the owner of each parcel
of property within the county which was classified as homestead
for the 1992 assessment year. The format and contents of a
uniform homestead application shall be prescribed by the
commissioner of revenue. The commissioner shall consult with
the chairs of the house and senate tax committees on the
contents of the homestead application form. The application
must clearly inform the taxpayer that this application must be
signed by all owners of the property and returned to the county
assessor in order for the property to continue receiving
homestead treatment. The envelope containing the homestead
application shall clearly identify its contents and alert the
taxpayer of its necessary immediate response.
Every four years after the initial homestead application
has been filed under this subdivision, a county shall mail a
homestead application to the owner of each parcel of property to
verify the continued eligibility for homestead status for all
properties classified as homestead within the county in the
prior year's assessment. The homestead application and
procedures shall be done in the same manner as contained in this
subdivision for the 1993 homestead application.
On the homestead application each owner shall disclose the
location of any other residential property in the state in which
the owner holds full or partial ownership and for which
homestead status has been granted or has been applied for at the
time of the application. Each owner must also disclose the name
and social security number of any relative occupying a property
qualifying as a homestead under section 273.124, subdivision 1,
paragraph (c). Failure to disclose the information required
under this paragraph may result in the imposition of the penalty
provided under this subdivision.
Every property owner applying for homestead classification
must furnish to the county assessor that owner's the social
security number of each person who is listed as an owner of the
property listed on the homestead application. If the social
security number is not provided, the county assessor shall
classify the property as nonhomestead. The social security
numbers of the property owners are private data on individuals
as defined by section 13.02, subdivision 12, but,
notwithstanding that section, the private data may be disclosed
to the commissioner of revenue.
If residential real estate is occupied and used for
purposes of a homestead by a relative of the owner and qualifies
for a homestead under section 273.124, subdivision 1, paragraph
(c), in order for the property to receive homestead status, a
homestead application must be filed with the assessor. The
social security number of each relative occupying the property
and the social security number of each owner of the property
shall be required on the homestead application filed under this
subdivision. If a different relative of the owner subsequently
occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy.
The homestead application shall also notify the property
owners that the application filed under this section will not be
mailed annually and that if the property is granted homestead
status for the 1993 assessment, that same property shall remain
classified as homestead until the property is sold or
transferred to another person, or the owners or the relatives no
longer use the property as their homestead. Upon the sale or
transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under
section 272.115. Failure to notify the county within 30 days
that the property has been sold, transferred, or that the owner
or the relative is no longer occupying the property as a
homestead, shall result in the penalty provided under this
subdivision and the property will lose its current homestead
status.
If the initial homestead application is not returned within
30 days, the county will send a second application to the
present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the
property's classification. If a homestead application has not
been filed with the county by December 15, the assessor shall
classify the property as nonhomestead for the current assessment
year for taxes payable in the following year, provided that the
owner may be entitled to receive the homestead classification by
proper application under section 375.192.
At the request of the commissioner, each county must give
the commissioner a list that includes the name and social
security number of each property owner applying for homestead
classification under this subdivision.
If, in comparing the lists supplied by the counties, the
commissioner finds that a property owner is claiming more than
one homestead, the commissioner shall notify the appropriate
counties. Within 90 days of the notification, the county
assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does
not qualify, the county assessor shall notify the county auditor
who will determine the amount of homestead benefits that had
been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, the taconite
homestead credit under section 273.135, and the supplemental
homestead credit under section 273.1391. The county auditor
shall send a notice to the owners of the affected property,
demanding reimbursement of the homestead benefits plus a penalty
equal to 50 100 percent of the homestead benefits. The property
owners may appeal the county's determination by filing a notice
of appeal with the Minnesota tax court within 60 days of the
date of the notice from the county.
If the amount of homestead benefits and penalty is not paid
within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of taxes and penalty to the
succeeding year's tax list to be collected as part of the
property taxes.
Any amount of homestead benefits recovered by the county
from the property owner must be transmitted to the commissioner
by the end of each calendar quarter shall be distributed to the
county, city or town, and school district where the property is
located in the same proportion that each taxing district's levy
was to the total of the three taxing districts' levy for the
current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis county
auditor to be deposited in the taconite property tax relief
account. The total amount of penalty collected must be
deposited in the county general fund.
The commissioner will provide suggested homestead
applications to each county. If a property owner has applied
for more than one homestead and the county assessors cannot
determine which property should be classified as homestead, the
county assessors will refer the information to the commissioner.
The commissioner shall make the determination and notify the
counties within 60 days.
In addition to lists of homestead properties, the
commissioner may ask the counties to furnish lists of all
properties and the record owners.
Sec. 17. Minnesota Statutes 1991 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 $72,000 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. For taxes
payable in 1992, the market value of class 1a property that
exceeds $72,000 but does not exceed $115,000 has a class rate of
two percent of its market value; and the market value of class
1a property that exceeds $115,000 has a class rate of 2.5
percent of its market value. For taxes payable in 1993 and
thereafter, the market value of class 1a property that exceeds
$72,000 has a class rate of two percent.
(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) 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
(4) any person who is permanently and totally disabled and
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 under clause (4) only
if the government agency or income-providing source certifies,
upon the request of the property owner, that the property owner
satisfies the disability requirements of this subdivision.
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 .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 225 250 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 .8 percent of
the first $32,000 of market value and one percent of market
value in excess of $32,000 for taxes payable in 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. 18. Minnesota Statutes 1991 Supplement, section
273.13, subdivision 25, as amended by Laws 1992, chapter 363,
article 1, section 12, subdivision 1, 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 3.5 percent of market value for taxes
payable in 1992, and 3.4 percent of market value for taxes
payable in 1993 and thereafter.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational;
(2) manufactured homes not classified under any other
provision;
(3) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b).
Class 4b property has a class rate of 2.8 percent of market
value for taxes payable in 1992, 2.5 percent of market value for
taxes payable in 1993, and 2.3 percent of market value for taxes
payable in 1994 and thereafter.
(c) Class 4c property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for
the elderly or for low- and moderate-income families as defined
in Title II, as amended through December 31, 1990, of the
National Housing Act or the Minnesota housing finance agency law
of 1971 or rules promulgated by the agency and financed by a
direct federal loan or federally insured loan made pursuant to
Title II of the Act; or
(ii) situated on real property that is used for housing the
elderly or for low- and moderate-income families as defined by
the Minnesota housing finance agency law of 1971, as amended, or
rules adopted by the agency pursuant thereto and financed by a
loan made by the Minnesota housing finance agency pursuant to
the provisions of the act.
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 as defined in section
42(c)(2) of the Internal Revenue Code of 1986, as amended
through December 31, 1990, that (i) receives a low-income
housing credit under section 42 of the Internal Revenue Code of
1986, as amended through December 31, 1990; or (ii) meets the
requirements of that section and receives public financing,
except financing provided under sections 469.174 to 469.179,
which contains terms restricting the rents; or (iii) meets the
requirements of section 273.1317. Classification pursuant to
this clause is limited 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 unless the owner of the property
elects to have the property assessed under Laws 1991, chapter
291, article 1, section 55. If the owner of the property elects
to have the market value determined on the basis of the actual
restricted rents, as provided in Laws 1991, chapter 291, article
1, section 55, the property will be assessed at the rate
provided for class 4a or class 4b property, as appropriate.
Properties described in clauses (1)(ii), (3), and (4) may apply
to the assessor for valuation under Laws 1991, chapter 291,
article 1, section 55. 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. This clause applies only to the property of a nonprofit
or limited dividend entity.
(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
317A;
(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 250 days in the year preceding the year of
assessment. For purposes of this clause, property is devoted to
a commercial purpose on a specific day if any portion of the
property is used, or available for use for residential
occupancy, and a fee is charged for 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 250 days in the year preceding the year of
assessment and is located within two miles of the class 4c
property with which it is used. Class 4c property classified in
this clause also includes the remainder of class 1c resorts.
Owners of real property devoted to temporary and seasonal
residential occupancy for recreation purposes and all or a
portion of which was devoted to commercial purposes for not more
than 250 days in the year preceding the year of assessment
desiring classification as class 1c or 4c, must submit a
declaration to the assessor designating the cabins or units
occupied for 250 days or less in the year preceding the year of
assessment by January 15 of the assessment year. Those cabins
or units and a proportionate share of the land on which they are
located will be designated class 1c or 4c as otherwise
provided. The remainder of the cabins or units and a
proportionate share of the land on which they are located will
be designated as class 3a. The first $100,000 of the market
value of the remainder of the cabins or units and a
proportionate share of the land on which they are located shall
have a class rate of three percent. The owner of property
desiring designation as class 1c or 4c property must provide
guest registers or other records demonstrating that the units
for which class 1c or 4c designation is sought were not occupied
for more than 250 days in the second year preceding the
assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, and (4) other
nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy
for recreation purposes shall not qualify for class 1c or 4c;
(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, 1990. 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;
(7) post-secondary student housing of not more than one
acre of land that is owned by a nonprofit corporation organized
under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or
housing located within two miles of the border of a college
campus; and
(8) manufactured home parks as defined in section 327.14,
subdivision 3.
Class 4c property has a class rate of 2.3 percent of market
value, except that (i) seasonal residential recreational
property not used for commercial purposes under clause (5) has a
class rate of 2.2 percent of market value for taxes payable in
1992, and for taxes payable in 1993 and thereafter, the first
$72,000 of market value has a class rate of two percent and the
market value that exceeds $72,000 has a class rate of 2.5
percent, and (ii) manufactured home parks assessed under clause
(8) have a class rate of two percent for taxes payable in 1993
only.
(d) Class 4d property includes:
(1) a structure that is:
(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. For property for which
application is made for 4c or 4d classification for taxes
payable in 1994 and thereafter, and which was not classified 4c
or 4d for taxes payable in 1993, 4c or 4d classification is
available only for those units meeting the requirements of
section 273.1318.
Classification under this clause is only available to
property of a nonprofit or limited dividend entity.
(2) For taxes payable in 1992, 1993 and 1994, only,
buildings and appurtenances, together with the land upon which
they are located, leased by the occupant under the community
lending model lease-purchase mortgage loan program administered
by the Federal National Mortgage Association, provided the
occupant's income is no greater than 60 percent of the county or
area median income, adjusted for family size and the building
consists of existing single family or duplex housing. The lease
agreement must provide for a portion of the lease payment to be
escrowed as a nonrefundable down payment on the housing. To
qualify under this clause, the taxpayer must apply to the county
assessor by May 30 of each year. The application must be
accompanied by an affidavit or other proof required by the
assessor to determine qualification under this clause.
(3) For taxes payable in 1992, 1993 and 1994, only,
federally acquired buildings under four units and appurtenances,
together with the land upon which they are located that is
leased to a nonprofit corporation organized under chapter 317A
that qualifies for tax exempt status under United States Code,
title 26, section 501(c), or a housing and redevelopment
authority authorized under sections 469.001 to 469.047; the
purpose of the lease must be to allow the nonprofit corporation
to provide transitional housing for homeless persons under the
program established in Code of Federal Regulations, title 55,
section 49489. As used in this clause, "transitional housing"
has the meaning given in section 268.38, subdivision 1, except
that the two-year restriction does not apply. If the property
is purchased from the federal government by the nonprofit
corporation for the purpose of continuing to provide
transitional housing after the expiration of the lease, the
property shall continue to be eligible for this classification.
To qualify under this clause, the taxpayer must apply to the
county assessor by May 30 of each year. The application must be
accompanied by an affidavit or other proof required by the
county assessor to determine qualification under this clause.
Property qualifying under this clause in 1992, 1993, or 1994
continues to receive a two percent class rate until the
five-year lease has expired provided that the property continues
to be used for the purposes as described in this clause.
Qualifying buildings and appurtenances, together with the land
upon which they are located, leased for a period of up to five
years by the occupant under a lease-purchase program
administered by the Minnesota housing finance agency or a
housing and redevelopment authority authorized under sections
469.001 to 469.047, provided the occupant's income is no greater
than 80 percent of the county or area median income, adjusted
for family size and the building consists of two or less
dwelling units. The lease agreement must provide for a portion
of the lease payment to be escrowed as a nonrefundable down
payment on the housing. The administering agency shall verify
the occupants income eligibility and certify to the county
assessor that the occupant meets the income criteria under this
paragraph. To qualify under this clause, the taxpayer must
apply to the county assessor by May 30 of each year. For
purposes of this section, "qualifying buildings and
appurtenances" shall be defined as one or two unit residential
buildings which are unoccupied and have been abandoned and
boarded for at least six months.
Class 4d property has a class rate of two percent of market
value.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (3); 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 2.3 percent of market value
if it is found to be a substandard building under section
273.1316.
Sec. 19. [273.1318] [CLASS 4C LOW-INCOME HOUSING; ELIGIBLE
UNITS.]
Subdivision 1. [INCOME LIMITATION.] (a) Subject to the
exception in paragraph (b), for a building for which application
is made for class 4c for taxes payable in 1994 and thereafter,
and which was not class 4c for taxes payable in 1993, only those
units occupied by a household whose income is 100 percent or
less of the county or area median income adjusted for family
size as determined by the department of housing and urban
development are eligible for class 4c.
(b) For a building for which application is made for class
4c for taxes payable in 1994 and thereafter, and which was not
class 4c for taxes payable in 1993, but for which a formal
application was received by a local, state, or federal agency
for financing, refinancing, or insurance before July 1, 1992,
the income limit is 100 percent or less of county or area median
income not adjusted for family size as determined by the
department of housing and urban development.
Subd. 2. [ANNUAL DETERMINATION.] With regard to buildings,
the construction of which had been commenced after December 31,
1982; or the project of which the building was a part was
approved by the governing body of the municipality in which it
is located subsequent to June 29, 1983; or financing of the
project had been approved by a federal or state agency
subsequent to June 29, 1983, a governmental agency providing
financing or mortgage insurance for a building qualifying for
class 4c or 4d or other entity must annually review income
records maintained by the owner of the property to determine the
units that qualify for a class 4c or 4d rate under this
section. The income records must reflect household income at
the commencement of the tenancy, and thereafter, when household
composition changes. If the entity is not a governmental
agency, the entity must be approved by the department of
revenue. The agency or other entity shall report to the
assessor responsible for assessing the property at the time and
in the manner required by the assessor. The income records must
be made available to the assessor. The assessor shall determine
the units that qualify for a class 4c or 4d rate.
Sec. 20. Minnesota Statutes 1990, section 274.19,
subdivision 8, is amended to read:
Subd. 8. [MANUFACTURED HOMES; SECTIONAL STRUCTURES.] (a)
In this section, "manufactured home" means a structure
transportable in one or more sections, which is built on a
permanent chassis, and designed to be used as a dwelling with or
without a permanent foundation when connected to the required
utilities, and contains the plumbing, heating, air conditioning,
and electrical systems in it. "Manufactured home" includes any
accessory structure that is an addition or supplement to the
manufactured home and, when installed, becomes a part of the
manufactured home.
(b) A manufactured home that meets each of the following
criteria must be valued and assessed as an improvement to real
property, the appropriate real property classification applies,
and the valuation is subject to review and the taxes payable in
the manner provided for real property:
(1) the owner of the unit holds title to the land on which
it is situated;
(2) the unit is affixed to the land by a permanent
foundation or is installed at its location in accordance with
the manufactured home building code in sections 327.31 to
327.34, and rules adopted under those sections, or is affixed to
the land like other real property in the taxing district; and
(3) the unit is connected to public utilities, has a well
and septic tank system, or is serviced by water and sewer
facilities comparable to other real property in the taxing
district.
(c) A manufactured home that meets each of the following
criteria must be assessed at the rate provided by the
appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and
the taxes payable in the manner provided in this section:
(1) the owner of the unit is a lessee of the land under the
terms of a lease;
(2) the unit is affixed to the land by a permanent
foundation or is installed at its location in accordance with
the manufactured homes building code contained in sections
327.31 to 327.34, and the rules adopted under those sections, or
is affixed to the land like other real property in the taxing
district; and
(3) the unit is connected to public utilities, has a well
and septic tank system, or is serviced by water and sewer
facilities comparable to other real property in the taxing
district.
(d) Sectional structures must be valued and assessed as an
improvement to real property if the owner of the structure holds
title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph
"sectional structure" means a building or structural unit that
has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially
assembled on-site alone or with other units and attached to a
permanent foundation.
(e) The commissioner of revenue may adopt rules under the
administrative procedure act to establish additional criteria
for the classification of manufactured homes and sectional
structures under this subdivision.
(f) A storage shed, deck, or similar improvement
constructed on property that is leased or rented as a site for a
manufactured home, sectional structure, park trailer, or travel
trailer is taxable as provided in this section. The property is
taxable as personal property to the lessee of the site if it is
not owned by the owner of the site. The property is taxable as
real estate if it is owned by the owner of the site. As a
condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to
construct improvements on the leased or rented site, the owner
of the site must obtain the permanent home address of the lessee
or user of the site. The site owner must provide the name and
address to the assessor upon request.
Sec. 21. Minnesota Statutes 1991 Supplement, section
275.125, subdivision 6j, is amended to read:
Subd. 6j. [LEVY FOR CRIME RELATED COSTS.] For taxes levied
in 1991 and subsequent years, payable in 1992 only and
subsequent years, each school district may make a levy on all
taxable property located within the school district for the
purposes specified in this subdivision. The maximum amount
which may be levied for all costs under this subdivision shall
be equal to $1 multiplied by the population of the school
district. For purposes of this subdivision, "population" of the
school district means the same as contained in section 275.14.
The proceeds of the levy must be used for reimbursing the cities
and counties who contract with the school district for the
following purposes: (1) to pay the costs incurred for the
salaries, benefits, and transportation costs of peace officers
and sheriffs for liaison services in the district's middle and
secondary schools, and (2) to teach drug abuse resistance
education curricula pay the costs for a drug abuse prevention
program as defined in Minnesota Statutes 1991 Supplement,
section 609.101, subdivision 3, paragraph (f) in the elementary
schools, and (3) to pay the costs incurred for the salaries and
benefits of peace officers and sheriffs whose primary
responsibilities are to investigate controlled substance crimes
under chapter 152. The school district must initially attempt
to contract for these services with the police department of
each city or the sheriff's department of the county within the
school district containing the school receiving the services.
If a local police department or a county sheriff's department
does not wish to provide the necessary services, the district
may contract for these services with any other police or
sheriff's department located entirely or partially within the
school district's boundaries. The levy authorized under this
subdivision is not included in determining the school district's
levy limitations and must be disregarded in computing any
overall levy limitations under sections 275.50 to 275.56 of the
participating cities or counties.
Sec. 22. Minnesota Statutes 1991 Supplement, section
275.61, is amended to read:
275.61 [REFERENDUM LEVY; MARKET VALUE.]
For local governmental subdivisions other than school
districts, any levy, including the issuance of debt obligations
payable in whole or in part from property taxes, required to be
approved and approved by the voters at a general or special
election for taxes payable in 1993 and thereafter, shall be
levied against the market value of all taxable property within
the governmental subdivision. Any levy amount subject to the
requirements of this section shall be certified separately to
the county auditor under section 275.07.
The ballot shall state the maximum amount of the increased
levy as a percentage of market value and the amount that will be
raised by the new referendum tax rate in the first year it is to
be levied.
Sec. 23. Minnesota Statutes 1991 Supplement, section
277.17, is amended to read:
277.17 [ESCROW REQUIREMENT FOR DELINQUENCIES ON
MANUFACTURED HOMES.]
Subdivision 1. [CERTIFICATION TO MANUFACTURED HOME OWNER.]
On or before October 15 of each year, the county auditor shall
send a letter to each owner of a manufactured home for which the
personal property taxes due on August 31 are delinquent as of
September 30. On or before December 31 of each year, the county
auditor shall send a letter to each owner of a manufactured home
for which the taxes due on August 31 were not delinquent but the
personal property taxes due on November 15 are delinquent as of
December 15. The letter must inform the owner that due to the
delinquency, if the delinquent taxes are not paid in full within
90 days of the date of issuance of the notice one of the
following may occur:
(1) the owner will may be required under state law to begin
making monthly payments of delinquent property taxes, and that
the property taxes will also be escrowed for payment of property
taxes the following year; or
(2) the county will notify the lender of the tax
delinquency and request the lender to initiate the process
provided under section 47.209. The form and content of the
notice to the owner shall be specified by the commissioner of
revenue.
Subd. 2. [ESTABLISHMENT OF TAX ESCROW ACCOUNTS.] The
county auditor must may establish a tax escrow account for
delinquent property taxes for each an owner receiving a letter
who receives a notice under subdivision 1 if the county does not
initiate the process provided under section 47.209. If an
escrow account is established for an owner who receives a notice
regarding taxes due August 31, the owner must pay an additional
amount each month equal to ten percent of the delinquent
personal property taxes, penalties, and interest due, plus ten
percent of the tax payable in the following calendar year. If
the owner fails to pay the tax due on November 15, the
additional amount of tax due but unpaid will be added to the
delinquent property taxes payable by installment under this
section. If an escrow account is established for an owner who
receives a notice regarding taxes due November 15, the owner
must pay an additional amount each month equal to 15 percent of
the delinquent taxes, penalties, and interest due, plus 12
percent of the tax payable in the following calendar year.
Subd. 3. [COUNTY ESCROW.] Within 30 days of receipt of a
letter notice from the county auditor under subdivision 1 2, the
owner must make the first monthly payment under subdivision 2 to
the county auditor. The commissioner of revenue shall prescribe
the procedures to be used for monthly collections of the
delinquent and current tax payments. If an owner is making the
payments at the time required under this section, no action may
be taken under section 277.20 with respect to the manufactured
home for which the property taxes are being paid into the escrow
account.
Sec. 24. Minnesota Statutes 1991 Supplement, section
278.05, subdivision 6, is amended to read:
Subd. 6. [EXCLUSION OF CERTAIN EVIDENCE.] (a) Information,
including income and expense figures, verified net rentable
areas, and anticipated income and expenses, for income-producing
property which is not provided to the county assessor at least
30 45 days before any hearing under this chapter, is not
admissible except if necessary to prevent undue hardship or when
the failure to provide it was due to the unavailability of the
evidence at that time.
(b) Provided that the information as contained in paragraph
(a) is timely submitted to the county assessor, the county
assessor shall furnish the petitioner at least five days before
the hearing under this chapter with the property's appraisal, if
any, which will be presented to the court at the hearing. The
petitioner shall furnish to the county assessor at least five
days before the hearing under this chapter with the property's
appraisal, if any, which will be presented to the court at the
hearing. An appraisal of the petitioner's property done by or
for the county or by or for the petitioner shall not be
admissible as evidence if the provisions within this paragraph
are not met.
Sec. 25. Minnesota Statutes 1991 Supplement, section
279.01, subdivision 1, is amended to read:
Subdivision 1. Except as provided in subdivision 3, on May
16 or 21 days after the postmark date on the envelope containing
the property tax statement, whichever is later, a penalty shall
accrue and thereafter be charged upon all unpaid taxes on real
estate on the current lists in the hands of the county
treasurer. The penalty shall be at a rate of three two percent
on homestead property and seven percent until May 31 and four
percent on June 1. The penalty on nonhomestead property shall
be at a rate of four percent until May 31 and eight percent on
June 1. This penalty shall not accrue until June 1 of each
year, or 21 days after the postmark date on the envelope
containing the property tax statements, whichever is later, on
commercial use real property used for seasonal residential
recreational purposes and classified as class 1c or 4c, and on
other commercial use real property classified as class 3a,
provided that over 60 percent of the gross income earned by the
enterprise on the class 3a property is earned during the months
of May, June, July, and August. Any property owner of such
class 3a property who pays the first half of the tax due on the
property after May 15 and before June 1, or 21 days after the
postmark date on the envelope containing the property tax
statement, whichever is later, shall attach an affidavit to the
payment attesting to compliance with the income provision of
this subdivision. Thereafter, for both homestead and
nonhomestead property, on the first day of each month beginning
July 1, up to and including October 1 following, an additional
penalty of one percent for each month shall accrue and be
charged on all such unpaid taxes provided that if the due date
was extended beyond May 15 as the result of any delay in mailing
property tax statements no additional penalty shall accrue if
the tax is paid by the extended due date. If the tax is not
paid by the extended due date, then all penalties that would
have accrued if the due date had been May 15 shall be charged.
When the taxes against any tract or lot exceed $50, one-half
thereof may be paid prior to May 16 or 21 days after the
postmark date on the envelope containing the property tax
statement, whichever is later; and, if so paid, no penalty shall
attach; the remaining one-half shall be paid at any time prior
to October 16 following, without penalty; but, if not so paid,
then a penalty of four two percent shall accrue thereon for
homestead property and a penalty of four percent on nonhomestead
property. Thereafter, for homestead property, on the first day
of November an additional penalty of four percent shall accrue
and on the first day of December following, an additional
penalty of two percent for each month shall accrue and be
charged on all such unpaid taxes. Thereafter, for nonhomestead
property, on the first day of November and December following,
an additional penalty of four percent for each month shall
accrue and be charged on all such unpaid taxes. If one-half of
such taxes shall not be paid prior to May 16 or 21 days after
the postmark date on the envelope containing the property tax
statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of
payment added, and thereupon no penalty shall attach to the
remaining one-half until October 16 following.
This section applies to payment of personal property taxes
assessed against improvements to leased property, except as
provided by section 277.01, subdivision 3.
A county may provide by resolution that in the case of a
property owner that has multiple tracts or parcels with
aggregate taxes exceeding $50, payments may be made in
installments as provided in this subdivision.
The county treasurer may accept payments of more or less
than the exact amount of a tax installment due. If the accepted
payment is less than the amount due, payments must be applied
first to the penalty accrued for the year the payment is made.
Acceptance of partial payment of tax does not constitute a
waiver of the minimum payment required as a condition for filing
an appeal under section 278.03 or any other law, nor does it
affect the order of payment of delinquent taxes under section
280.39.
Sec. 26. Minnesota Statutes 1991 Supplement, 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 22, paragraph (c), 23, paragraph
(c), or 25, paragraph (c), clause (5), for which 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 three
years from the date of sale. The period of redemption for all
lands located in a targeted neighborhood as defined in Laws
1987, chapter 386, article 6, section 4, except (1) homesteaded
lands as defined in section 273.13, subdivision 22, and (2) for
periods of redemption beginning after June 30, 1991, but before
July 1, 1996, lands located in the Loring Park targeted
neighborhood on which a notice of lis pendens has been served,
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, except that the period of redemption for nonhomesteaded
agricultural land as defined in section 273.13, subdivision 23,
paragraph (b), shall be two years from the date of sale if at
that time that property is owned by a person who owns one or
more parcels of property on which taxes are delinquent, and (1)
the aggregate tax capacity of that property exceeds five percent
of the total tax capacity of the school district in which the
property is located, or (2) the delinquent taxes are more than
25 percent of the prior year's school district levy.
Sec. 27. Minnesota Statutes 1990, section 282.01,
subdivision 7, is amended to read:
Subd. 7. [SALES, WHEN COMMENCED, HOW LAND OFFERED FOR
SALE.] The sale herein provided for shall commence at such time
as the county board of the county wherein such parcels lie,
shall direct. The county auditor shall offer the parcels of
land in order in which they appear in the notice of sale, and
shall sell them to the highest bidder, but not for a less sum
than the appraised value, until all of the parcels of land shall
have been offered, and thereafter shall sell any remaining
parcels to anyone offering to pay the appraised value thereof,
except that if the person could have repurchased a parcel of
property under section 282.012 or 282.241, that person shall not
be allowed to purchase that same parcel of property at the sale
under this subdivision unless approved by the county board.
Said sale shall continue until all such parcels are sold or
until the county board shall order a reappraisal or shall
withdraw any or all such parcels from sale. Such list of lands
may be added to and the added lands may be sold at any time by
publishing the descriptions and appraised values of such parcels
of land as shall have become forfeited and classified as
nonconservation since the commencement of any prior sale or such
parcels as shall have been reappraised, or such parcels as shall
have been reclassified as nonconservation or such other parcels
as are subject to sale but were omitted from the existing list
for any reason in the same manner as hereinafter provided for
the publication of the original list, provided that any parcels
added to such list shall first be offered for sale to the
highest bidder before they are sold at appraised value. All
parcels of land not offered for immediate sale, as well as
parcels of such lands as are offered and not immediately sold
shall continue to be held in trust by the state for the taxing
districts interested in each of said parcels, under the
supervision of the county board, and such parcels may be used
for public purposes until sold, as the county board may direct.
Sec. 28. Minnesota Statutes 1990, section 282.012, is
amended to read:
282.012 [PRIOR OWNER MAY PURCHASE; CONDITIONS.]
At any time not less than least one week prior to before
the date of such sale, the person who was the owner of any
included parcel at the time when it forfeited to the state for
nonpayment of taxes, or the person's heirs, successors or
assigns or any person to whom the right to pay taxes on such
lands was given by statute, mortgage, or other agreement, may
purchase such the parcel at. The purchase price is the greater
of (1) the appraised value thereof, of the parcel, or (2) the
sum of all delinquent taxes and assessments, computed under
section 282.251, together with penalties, interest, and costs,
that accrued or would have accrued if the parcel had not
forfeited to the state. The purchaser's title and right to
be is conditioned upon the primary use as designated by the
resolution of the county board. The right of such the purchaser
to purchase shall be evidenced by the purchaser's duly verified
written application showing the qualifications as hereinabove
prescribed required by this section and filed with the county
auditor.
Sec. 29. Minnesota Statutes 1990, section 282.241, is
amended to read:
282.241 [REPURCHASE AFTER FORFEITURE FOR TAXES.]
The owner at the time of forfeiture, or the owner's heirs,
devisees, or representatives, or any person to whom the right to
pay taxes was given by statute, mortgage, or other agreement,
may repurchase any parcel of land claimed by the state to be
forfeited to the state for taxes unless prior to before the time
repurchase is made such the parcel shall have been is sold under
installment payments, or otherwise, by the state as provided by
law, or is under mineral prospecting permit or lease, or
proceedings have been commenced by the state or any of its
political subdivisions or by the United States to condemn such
parcel of land. Said The parcel of land may be repurchased for
a sum equal to the aggregate. The repurchase price is the
greater of (1) the appraised value of the parcel, or (2) the sum
of all delinquent taxes and assessments computed as provided by
under section 282.251, together with penalties, interest, and
costs, which did that accrued or would have accrued if such the
parcel of land had not forfeited to the state. Except for
property which was homesteaded on the date of forfeiture, such
repurchase shall be permitted during one year only from the date
of forfeiture, and in any case only after the adoption of a
resolution by the board of county commissioners determining that
thereby undue hardship or injustice resulting from the
forfeiture will be corrected, or that permitting such repurchase
will promote the use of such lands that will best serve the
public interest. If the county board has good cause to believe
that a repurchase installment payment plan for a particular
parcel is unnecessary and not in the public interest, the county
board may require as a condition of repurchase that the entire
repurchase price be paid at the time of repurchase. A
repurchase shall be subject to any easement, lease, or other
encumbrance granted by the state prior thereto, and if said land
is located within a restricted area established by any county
under Laws 1939, chapter 340, such repurchase shall not be
permitted unless said resolution with respect thereto is adopted
by the unanimous vote of the board of county commissioners.
Sec. 30. Minnesota Statutes 1991 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 12 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 the
greater of 12 percent of the prior year's net property taxes
payable or $80 for taxes payable in 1993, and 75 percent of the
first $325 of the amount of the increase over ten percent the
greater of 12 percent of the prior year's net property taxes
payable or $100 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
gross property taxes payable attributable to improvements made
to the homestead after the assessment date for the prior year's
taxes.
In the case of refunds for property taxes payable in 1993
and thereafter, the maximum refund allowed under this
subdivision is $1,500.
(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; 273.135; 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 1993, 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 for taxes payable in 1991, 1993, or 1994
exceed the following amounts for the taxes payable year
designated $5,500,000, the commissioner shall increase the
dollar $100 amount of tax increase which must occur before a
taxpayer qualifies for a refund, and increase by an equal amount
the $100 threshold used in determining the amount of the refund,
so that the estimated total refund claims do not exceed the
appropriation limit $5,500,000.
Taxes payable in: Appropriation limit
1991 $13,000,000
1993 $6,000,000
1994 $5,500,000
The determinations of the revised thresholds by the
commissioner are not rules subject to chapter 14.
Sec. 31. [290A.25] [VERIFICATION OF SOCIAL SECURITY
NUMBERS.]
Annually, the commissioner of revenue shall furnish a list
to the county assessor containing the names and social security
numbers of persons who have applied for both homestead
classification under section 273.13 and a property tax refund as
a renter under this chapter.
Within 90 days of the notification, the county assessor
shall investigate to determine if the homestead classification
was improperly claimed. If the property owner does not qualify,
the county assessor shall notify the county auditor who will
determine the amount of homestead benefits that has been
improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the
classification as a homestead under section 273.13, and the
taconite homestead credit under section 273.1391. The county
auditor shall send a notice to the owners of the property,
demanding reimbursement of the homestead benefits plus a penalty
equal to 100 percent of the homestead benefits. The property
owners may appeal the county's determination by filing a notice
of appeal with the Minnesota tax court within 60 days of the
date of the notice from the county.
If the amount of homestead benefits and penalty is not paid
within 60 days, and if no appeal has been filed, the county
auditor shall certify the amount of taxes and penalty to the
succeeding year's tax list to be collected as part of the
property taxes.
Any amount of homestead benefits recovered by the county
from the property owner shall be distributed to the county, city
or town, and school district where the property is located in
the same proportion that each taxing district's levy was to the
total of the three taxing districts' levy for the current year.
Any amount recovered attributable to taconite homestead credit
shall be transmitted to the St. Louis county auditor to be
deposited in the taconite property tax relief account. The
total amount of penalty collected must be deposited in the
county general fund.
Sec. 32. Minnesota Statutes 1990, section 327C.01, is
amended by adding a subdivision to read:
Subd. 9a. [RESIDENT ASSOCIATION.] "Resident association"
means an organization that has the written permission of the
owners of at least 51 percent of the manufactured homes in the
park to represent them, and which is organized for the purpose
of resolving matters relating to living conditions in the
manufactured home park.
Sec. 33. Minnesota Statutes 1990, section 327C.12, is
amended to read:
327C.12 [RETALIATORY CONDUCT PROHIBITED.]
A park owner may not increase rent, decrease services,
alter an existing rental agreement or seek to recover possession
or threaten such action in whole or in part as a penalty for a
resident's:
(a) good faith complaint to the park owner or to a
government agency or official; or
(b) good faith attempt to exercise rights or remedies
pursuant to state or federal law. In any proceeding in which
retaliatory conduct is alleged, the burden of proving otherwise
shall be on the park owner if the owner's challenged action
began within 90 days after the resident engaged in any of the
activities protected by this section. If the challenged action
began more than 90 days after the resident engaged in the
protected activity, the party claiming retaliation must make a
prima facie case. The park owner must then prove otherwise; or
(c) joining and participating in the activities of a
resident association as defined under section 327C.01,
subdivision 9a.
Sec. 34. Minnesota Statutes 1991 Supplement, section
375.192, subdivision 2, is amended to read:
Subd. 2. Upon written application by the owner of the
property, 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 county board may also grant the abatement of
penalties for taxes paid within 30 days of the due date,
regardless of the classification of the property. 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. If the
application is for abatement of penalty or interest, the
application must be approved by the county treasurer and county
auditor. 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.
The county auditor shall notify the commissioner of revenue
of all abatements resulting from the erroneous classification of
real property, for tax purposes, as nonhomestead property. For
the abatements relating to the current year's tax processed
through June 30, the auditor shall notify the commissioner on or
before July 31 of that same year of all abatement applications
granted. For the abatements relating to the current year's tax
processed after June 30 through the balance of the year, the
auditor shall notify the commissioner on or before the following
January 31 of all applications granted. The county auditor
shall submit a form containing the social security number of the
applicant and such other information the commissioner prescribes.
Sec. 35. Minnesota Statutes 1990, section 381.12,
subdivision 2, is amended to read:
Subd. 2. [EXPENSE, TAX LEVY.] For the purpose of defraying
the expense incurred, or to be incurred in the preservation and
restoration of monuments under this section, The county board of
any county may levy a tax upon all the taxable property in the
county for the purpose of defraying the expense incurred, or to
be incurred for:
(1) the preservation and restoration of monuments under
this section;
(2) the preservation or establishment of control monuments
for mapping activities;
(3) the modernization of county land records through the
use of parcel-based land management systems; or
(4) the establishment of geographic (GIS), land (LIS),
management (MIS) information systems.
Sec. 36. Minnesota Statutes 1990, section 473.388,
subdivision 4, is amended to read:
Subd. 4. [FINANCIAL ASSISTANCE.] The board may grant the
requested financial assistance if it determines that the
proposed service is consistent with the approved implementation
plan and is intended to replace the service to the applying city
or town or combination thereof by the transit commission and
that the proposed service will meet the needs of the applicant
at least as efficiently and effectively as the existing service.
The amount of assistance which the board may provide under
this section may not exceed the sum of:
(a) the portion of the available local transit funds which
the applicant proposes to use to subsidize the proposed service;
and
(b) an amount of financial assistance bearing an identical
proportional relationship to the amount under clause (a) as the
total amount of financial assistance to the transit commission
bears to the total amount of taxes collected by the board under
section 473.446. The board shall pay the amount to be provided
to the recipient from the assistance the board would otherwise
pay to the transit commission.
For purposes of this section "available local transit funds"
means 90 percent of the tax revenues which would accrue to the
board from the tax it levies under section 473.446 in the
applicant city or town or combination thereof.
For purposes of this section, "tax revenues" in the city or
town means the sum of the following:
(1) the nondebt spread levy, which is the total of the
taxes extended by application of the local tax rate for nondebt
purposes on the taxable net tax capacity;
(2) the portion of the fiscal disparity distribution levy
under section 473F.08, subdivision 3, attributable to nondebt
purposes; and
(3) the portion of the homestead credit and agricultural
credit aid and disparity reduction aid amounts under section
273.1398, subdivisions 2 and 3, attributable to nondebt purposes.
Tax revenues do not include the state feathering
reimbursement under section 473.446.
Sec. 37. Minnesota Statutes 1990, section 473.711,
subdivision 2, is amended to read:
Subd. 2. The metropolitan mosquito control commission
shall prepare an annual budget. The budget may provide for
expenditures in an amount not exceeding the property tax levy
limitation determined in this subdivision. The commission may
levy a tax on all taxable property in the district as defined in
section 473.702 to provide funds for the purposes of sections
473.701 to 473.716. The tax shall not exceed the property tax
levy limitation determined in this subdivision. A participating
county may agree to levy an additional tax to be used by the
commission for the purposes of sections 473.701 to 473.716 but
the sum of the county's and commission's taxes may not exceed
the county's proportionate share of the property tax levy
limitation determined under this subdivision based on the ratio
of its total net tax capacity to the total net tax capacity of
the entire district as adjusted by section 270.12, subdivision
3. The auditor of each county in the district shall add the
amount of the levy made by the district to other taxes of the
county for collection by the county treasurer with other taxes.
When collected, the county treasurer shall make settlement of
the tax with the district in the same manner as other taxes are
distributed to political subdivisions. No county shall levy any
tax for mosquito, disease vectoring tick, and black gnat
(Simuliidae) control except under sections 473.701 to 473.716.
The levy shall be in addition to other taxes authorized by law
and shall be disregarded in the calculation of limits on taxes
imposed by chapter 275.
The property tax levied by the metropolitan mosquito
control commission shall not exceed the following amount for the
years specified:
(a) for taxes payable in 1988, the product of six-tenths on
one mill multiplied by the total assessed valuation of all
taxable property located within the district as adjusted by the
provisions of Minnesota Statutes 1986, sections 272.64; 273.13,
subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the
commission's property tax levy limitation for the taxes payable
year 1988 determined under clause (a) multiplied by (2) an index
for market valuation changes equal to the assessment year 1988
total market valuation of all taxable property located within
the district divided by the assessment year 1987 total market
valuation of all taxable property located within the district;
and
(c) for taxes payable in 1990, 1991, and subsequent
years 1992, the product of (1) the commission's property tax
levy limitation for the previous year determined under this
subdivision multiplied by (2) an index for market valuation
changes equal to the total market valuation of all taxable
property located within the district for the current assessment
year divided by the total market valuation of all taxable
property located within the district for the previous assessment
year;
(d) for taxes payable in 1993, the product of (1) the
commission's certified property tax levy for the previous year
determined under this subdivision multiplied by (2) an index for
market valuation changes equal to the total market valuation of
all taxable property located within the district for the current
assessment year divided by the total market valuation of all
taxable property located within the district for the previous
assessment year; and
(e) for taxes payable in 1994 and subsequent years, the
product of (1) the commission's property tax levy limitation for
the previous year determined under this subdivision multiplied
by (2) an index for market valuation changes equal to the total
market valuation of all taxable property located within the
district for the current assessment year divided by the total
market valuation of all taxable property located within the
district for the previous assessment year.
For the purpose of determining the commission's property
tax levy limitation for the taxes payable year 1988 and
subsequent years under this subdivision, "total market
valuation" means the total market valuation of all taxable
property within the district without valuation adjustments for
fiscal disparities (chapter 473F), tax increment financing
(sections 469.174 to 469.179), and high voltage transmission
lines (section 273.425).
Sec. 38. Minnesota Statutes 1990, section 473.714, is
amended to read:
473.714 [COMPENSATION OF COMMISSIONERS.]
Subdivision 1. [COMPENSATION.] Except as provided in
subdivision 2, each commissioner, including the officers of the
commission shall be reimbursed for actual and necessary expenses
incurred in the performance of duties. The chair shall be paid
a per diem for attending meetings, monthly, executive, and
special, and each commissioner shall be paid a per diem for
attending meetings, monthly, executive, and special, which per
diem shall be established by the commission, such expense
reimbursement and per diem notwithstanding any other funds which
such commissioners may receive from any other public body. A
commissioner who receives a per diem from the commissioner's
county shall not be paid a per diem for the same day by the
commission for attending meetings of the commission. The annual
budget of the commission shall provide as a separate account
anticipated expenditures for per diem, travel and associated
expenses for the chair and members, and compensation or
reimbursement shall be made to the chair or members only when
budgeted.
Subd. 2. [CERTAIN COMMISSIONERS.] A commissioner whose
annual public salary is $25,000 or more shall only be reimbursed
for expenses related to travel.
Sec. 39. [473F.001] [CITATION.]
This chapter shall be cited as the "Charles R. Weaver
metropolitan revenue distribution act."
Sec. 40. Minnesota Statutes 1990, 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
net tax capacity of those properties by applying the appropriate
class rates. When computing the rate of tax pursuant to section
275.08, the county auditor shall include the gross net 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 net tax capacity times the total local
tax rate for all purposes as provided in clause (a).
(c) The county auditor shall then compute the tax on lands
valued according to subdivision 2 and nonresidential buildings
by multiplying the net tax capacity times the total local tax
rate for all purposes as provided in clause (a), subtracting
$1.50 per acre of land in the preserve.
(d) 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 net tax
capacity times 105 percent of the previous year's statewide
average local tax rate levied on property located within
townships for all purposes.
(d) (e) 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) or
(d), 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 the difference between
the net tax determined under this clause and the gross tax in
clause (b). 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. Payment shall be made by the state 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. 41. Minnesota Statutes 1990, section 488A.20,
subdivision 4, is amended to read:
Subd. 4. [DISPOSITION OF FINES, FEES AND OTHER MONEYS;
ACCOUNTS.] (a) Except as otherwise provided herein and except as
otherwise provided by law, the administrator shall pay to the
Ramsey county treasurer all fines and penalties collected by the
administrator, all fees collected for administrator's services,
all sums forfeited to the court as hereinafter provided, and all
other moneys received by the administrator.
(b) The administrator of court shall for each fine or
penalty, provide the county treasurer with the name of the
municipality or other subdivision of government where the
offense was committed and the total amount of the fines or
penalties collected for each such municipality or other
subdivision of government.
(c) The state of Minnesota and any governmental subdivision
within the jurisdictional area of the municipal court herein
established may present cases for hearing before said municipal
court. In the event the court takes jurisdiction of a
prosecution for the violation of a statute or ordinance by the
state or a governmental subdivision other than a city or town in
Ramsey county, all fines, penalties and forfeitures collected
shall be paid over to the county treasurer except where a
different disposition is provided by law, and the following fees
shall be taxed to the state or governmental subdivision other
than a city or town within Ramsey county which would be entitled
to payment of the fines, forfeitures or penalties in any case,
and shall be paid to the administrator of the court for
disposing of the matter. The administrator shall deduct the
fees from any fine collected for the state of Minnesota or a
governmental subdivision other than a city or town within Ramsey
County and transmit the balance in accordance with the law, and
the deduction of the total of the fees each month from the total
of all the fines collected is hereby expressly made an
appropriation of funds for payment of the fees:
(1) In all cases where the defendant is brought into court
and pleads guilty and is sentenced, or the matter is otherwise
disposed of without a trial.....$5
(2) In arraignments where the defendant waives a
preliminary examination.....$10
(3) In all other cases where the defendant stands trial or
has a preliminary examination by the court.....$15
(4) The court shall have the authority to waive the
collection of fees in any particular case.
(d) At the beginning of the first day of any month, the
amount in the hands of the administrator which is owing to any
municipality or county shall not exceed $5,000.
(e) On or before the last day of each month, the county
treasurer shall pay over to the treasurer of the city of St.
Paul two-thirds and to the treasurer of each other municipality
or subdivision of government in Ramsey county one-half of all
fines or penalties collected during the previous month from
those imposed for offenses committed within such the treasurer's
municipality or subdivision of government in violation of a
statute, an ordinance, charter provision, rule or regulation of
a city. All other fines and forfeitures and all fees and costs
collected by the county municipal court shall be paid to the
treasurer of Ramsey county who shall dispense the same as
provided by law.
(f) Amounts represented by checks issued by the
administrator or received by the administrator which have not
cleared by the end of the month may be shown on the monthly
account as having been paid or received, subject to adjustment
on later monthly accounts.
(g) The administrator may receive negotiable instruments in
payment of fines, penalties, fees, or other obligations as
conditional payments, and is not held accountable therefor but
if collection in cash is made and then only to the extent of the
net collection after deduction of the necessary expense of
collection.
Sec. 42. [REPAYMENT.]
The city of St. Paul shall repay to Ramsey county an amount
equal to the difference between the payments it receives under
section 488A.20, subdivision 4, from July 1, 1992, to December
31, 1992. That amount, plus interest, must be paid over 12
equal monthly installments beginning January 31, 1993. Interest
will be accrued at the average rate of return for Ramsey
county's portfolio of general investments as determined by the
manager of the revenue division of the Ramsey county department
of taxation and records administration, using the county's
normal method of calculating investment earnings on monthly
balances.
Sec. 43. Laws 1991, chapter 291, article 1, section 65, is
amended to read:
Sec. 65. [EFFECTIVE DATE.]
Sections 1, 4, 35, 36, 57, 58, and 62 are effective the day
following final enactment.
Sections 2, 3, 11, 15 to 22, 24, 26 to 28, 30, 37 to 49,
and 63 are effective for taxes levied in 1991, payable in 1992,
and thereafter.
Sections 5 and 6 are effective for referenda held after
November 1, 1992, for taxes payable in 1993 and thereafter.
Sections 7 and 52 are effective July 1, 1991.
Sections 8, 9 and 31 are effective for appeals filed after
July 31, 1991.
Section 10 is effective only for taxes payable in 1992,
1993, 1994, and 1995 and thereafter.
Sections 12 and 14 are effective for taxes payable in 1993
and thereafter, except the deletion of the language "or any
single contiguous lot fronting on the same street" in sections
12 and 14 shall be effective for taxes payable in 1992 and
thereafter.
Section 13 is effective the day following final enactment
and applies to real property acquired after December 31, 1990.
Sections 23 and 25 are effective for taxes payable in 1993
and thereafter.
Section 29 is effective for referenda for taxes payable in
1993 and thereafter.
Sections 32 and 33 are effective for taxes deemed
delinquent after December 31, 1991.
Sections 50 and 51 are effective for aids payable in 1991
and thereafter.
Section 53 is effective the day after the governing body of
the city of Minneapolis complies with Minnesota Statutes,
section 645.021, subdivision 3.
Section 54 is effective for the 1991 and 1992 assessment
year.
Section 59 is effective the day after the governing body of
independent school district No. 325, Lakefield, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Section 60 is effective the day after the governing body of
independent school district No. 77, Mankato, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Section 61 is effective the day after the governing body of
independent school district No. 284, Wayzata, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Sec. 44. [SPECIAL SERVICE DISTRICT; CITY OF HUTCHINSON.]
Subdivision 1. [SPECIAL SERVICES DEFINED.] For purposes of
this section, "special services" means all services rendered or
contracted for by the city of Hutchinson, including, but not
limited to:
(1) the repair, maintenance, operation, and construction of
any improvement authorized by Minnesota Statutes, section
429.021;
(2) parking services rendered or contracted for by the
city;
(3) development and promotional services rendered or
contracted for by the city; and
(4) any other service or improvement provided by the city
or development authority that is authorized by law or charter.
Subd. 2. [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.] The
governing body of the city of Hutchinson may adopt an ordinance
establishing a special service district to be operated by the
city of Hutchinson. Minnesota Statutes, chapter 428A, governs
the establishment and operation of special service districts in
the city.
Sec. 45. [DULUTH; TECHNICAL COLLEGE STUDENT HOUSING;
PROPERTY TAX EXEMPTION.]
Subdivision 1. [EXEMPTION.] As provided in this section,
qualified student housing at the Duluth technical college is
exempt from ad valorem property taxation. In order to qualify
for the exemption, the requirements in subdivisions 2 to 6 must
be met.
Subd. 2. [FINDING OF NEED.] Before authorizing a project
qualifying under this section, the state board of technical
colleges must find (1) that an adequate supply of appropriate
housing is not available to students of the technical college,
(2) that there is significant demand for housing by students of
the technical college, and (3) that the private market is unable
to satisfy this demand either at affordable prices or in a
reasonable time.
Subd. 3. [LOCATED ON LEASED PUBLIC LAND.] The student
housing must be located on land owned by the technical college,
the school district, or the state board of technical colleges
that is leased to a private or nonprofit entity. The lease must
provide for nominal rent.
Subd. 4. [NEW OR REHABILITATED UNITS ONLY.] The qualified
student housing must consist of dwelling units that either were
constructed or substantially rehabilitated after the project is
approved by the state board.
Subd. 5. [CONTRACT WITH DEVELOPER.] The state board must
enter into a contract with the developer or landlord of the
qualified student housing project. This contract must provide
that the reduced costs of the development resulting from the
property tax exemption and leased land at a nominal rent will be
reflected in lower rents for student tenants. The contract must
also provide a reasonable system of giving priority to students
in renting the dwelling units. The contract may include any
other provisions that the board determines to be reasonable and
appropriate, including provisions to monitor or ensure that
priority is given to students in renting, that the student rents
reflect the lower costs, or that special services are available
to student tenants.
Subd. 6. [MINIMUM STUDENT OCCUPANCY REQUIRED.] A student
housing project qualifies for exemption under this section only
if more than 50 percent of the units are occupied during the
year by students of the technical college or other
post-secondary institutions. For purposes of this section, a
student must be enrolled in a certificate or degree program to
qualify.
Subd. 7. [EXPIRATION.] This section applies to student
housing approved by the state board before January 1, 1997. The
property tax exemption for a student housing development is
limited to 20 years from the date of first occupancy. This
section expires January 1, 2018.
Subd. 8. [EFFECTIVE DATE.] This section is effective the
day after the governing body of the city of Duluth complies with
Minnesota Statutes, section 645.021, subdivision 3, and applies
beginning for property taxes assessed in 1993, and payable in
1994.
Sec. 46. [THIEF RIVER FALLS; TECHNICAL COLLEGE STUDENT
HOUSING; PROPERTY TAX EXEMPTION.]
Subdivision 1. [EXEMPTION.] As provided in this section,
qualified student housing at the Thief River Falls technical
college is exempt from ad valorem property taxation. In order
to qualify for the exemption, the requirements in subdivisions 2
to 6 must be met.
Subd. 2. [FINDING OF NEED.] Before authorizing a project
qualifying under this section, the state board of technical
colleges must find (1) that an adequate supply of appropriate
housing is not available to students of the technical college,
(2) that there is significant demand for housing by students of
the technical college, and (3) that the private market is unable
to satisfy this demand either at affordable prices or in a
reasonable time.
Subd. 3. [LOCATED ON LEASED PUBLIC LAND.] The student
housing must be located on land owned by the technical college,
the school district, or the state board of technical colleges
that is leased to a private or nonprofit entity. The lease must
provide for nominal rent.
Subd. 4. [NEW OR REHABILITATED UNITS ONLY.] The qualified
student housing must consist of dwelling units that either were
constructed or substantially rehabilitated after the project is
approved by the state board.
Subd. 5. [CONTRACT WITH DEVELOPER.] The state board must
enter into a contract with the developer or landlord of the
qualified student housing project. This contract must provide
that the reduced costs of the development resulting from the
property tax exemption and leased land at a nominal rent will be
reflected in lower rents for student tenants. The contract must
also provide a reasonable system of giving priority to students
in renting the dwelling units. The contract may include any
other provisions that the board determines to be reasonable and
appropriate, including provisions to monitor or ensure that
priority is given to students in renting, that the student rents
reflect the lower costs, or that special services are available
to student tenants.
Subd. 6. [MINIMUM STUDENT OCCUPANCY REQUIRED.] A student
housing project qualifies for exemption under this section only
if more than 50 percent of the units are occupied during the
year by students of the technical college or other
post-secondary institutions. For purposes of this section, a
student must be enrolled in a certificate or degree program to
qualify.
Subd. 7. [EXPIRATION.] This section applies to student
housing approved by the state board before January 1, 1997. The
property tax exemption for a student housing development is
limited to 20 years from the date of first occupancy. This
section expires January 1, 2018.
Subd. 8. [EFFECTIVE DATE.] This section is effective the
day after the governing body of the city of Thief River Falls
complies with Minnesota Statutes, section 645.021, subdivision
3, and applies beginning for property taxes assessed in 1993,
and payable in 1994.
Sec. 47. [PROPERTY ACQUIRED FROM ELECTRIC COOPERATIVE.]
Subdivision 1. [PROPERTY EXEMPTION.] Property owned by a
cooperative association, as defined in Minnesota Statutes,
section 273.40, that is purchased by a public utility, as
defined in Minnesota Statutes, section 216B.02, remains exempt
from property taxes, if the property:
(1) was exempt under Minnesota Statutes, section 272.02,
subdivision 1, clause (18), or section 273.41 when it was owned
by the cooperative association; and
(2) is located in St. Louis, Koochiching, Itasca, and Lake
counties.
This exemption applies for three assessment years from the
date of purchase. The tax under Minnesota Statutes, section
273.41, continues to apply during the three-year exemption
period. The rates charged by the public utility must reflect
the property tax exemption provided under this section.
Subd. 2. [LOCAL APPROVAL.] Subdivision 1 is effective in
St. Louis, Koochiching, Itasca, and Lake counties the day after
the governing body of the county complies with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 48. [HENNEPIN COUNTY; PROPERTY TAX EXEMPTION.]
Subdivision 1. [EXEMPTION.] Notwithstanding the time
requirements of Minnesota Statutes, section 272.02, subdivision
4, paragraph (b), for taxes levied in 1991, payable in 1992, the
governing body of Hennepin county may grant a property tax
exemption for property that (1) meets the requirements of exempt
property under Minnesota Statutes, section 272.02, subdivision
4, paragraph (b), except for the July 1 date; (2) was an
athletic facility classified as class 3 commercial and
industrial property on January 2, 1991; and (3) was acquired
during 1991 by a church.
Subd. 2. [LOCAL APPROVAL.] Subdivision 1 is effective the
day following compliance with Minnesota Statutes, section
645.021, subdivision 3, by the governing body of Hennepin county.
Sec. 49. [TRANSFERRING CLOSED ARMORIES.]
Notwithstanding Minnesota Statutes 1990, section 193.36, an
armory that is mustered out of the service of the state and is
closed by the adjutant general between the effective date of
this act and July 1, 1994, must be disposed of as provided in
this act.
An armory subject to this section must be offered for sale
to the municipality or county within which it is located for the
price of $1. In the event that both the municipality and the
county desire to purchase the armory, the municipality must be
given first priority to purchase the armory. If the
municipality or county does not agree to purchase the armory
after a reasonable opportunity, the adjutant general shall
dispose of the property as provided in Minnesota Statutes 1990,
section 193.36. The adjutant general shall dispose of any
receipts from the sale of the property as provided in Minnesota
Statutes 1990, section 193.36, subdivision 2.
Sec. 50. [PLANNING AND REMODELING GRANTS.]
$25,000 for each armory sold or disposed of under this
section is appropriated from the general fund to the department
of military affairs for fiscal year 1993 for the purpose of
providing grants to municipalities or counties that purchase
closed armories under section 49. A grant of up to $25,000 must
be provided to each municipality or county purchasing an
armory. These grants must be used by the municipality or county
for preparing this property for any purpose deemed acceptable by
the acquiring municipality or county. The commissioner of
military affairs shall consult with representatives of the
acquiring municipalities and counties in adopting rules for the
distribution of the grants.
Sec. 51. [LIMITATION; LIABILITY.]
A municipality or county does not become responsible for
responding to the presence of a hazardous substance or pollutant
or contaminant in or on property associated with an armory under
Minnesota Statutes, chapter 115B, solely because it takes
ownership of an armory under sections 49 to 51.
Sec. 52. [WATERSHED DISTRICT LEVIES.]
(a) The Nine Mile Creek watershed district, the
Riley-Purgatory Bluff Creek watershed district, the Minnehaha
Creek watershed district, the Coon Creek watershed district, and
the Lower Minnesota River watershed district may levy in 1992
and thereafter a tax not to exceed $200,000 on property within
the district for the administrative fund. The levy authorized
under this section is in lieu of section 103D.905, subdivision
3. The administrative fund shall be used for the purposes
contained in Minnesota Statutes, section 103D.905, subdivision
3. The board of managers shall make the levy for the
administrative fund in accordance with Minnesota Statutes,
section 103D.915.
(b) The Wild Rice watershed district may levy, for taxes
payable in 1993, 1994, 1995, 1996, and 1997, an ad valorem tax
not to exceed $200,000 on property within the district for the
administrative fund. The additional $75,000 above the amount
authorized in Minnesota Statutes, section 103D.905, subdivision
3, must be used for costs incurred in connection with
cost-sharing projects with the United States Army Corps of
Engineers. The board of managers shall make the levy for the
administrative fund in accordance with Minnesota Statutes,
section 103D.915.
Sec. 53. [CITY OF OTSEGO; EXCESS LEVY PENALTY ABATEMENT.]
The excess levy amount of $63,707, levied in 1990, for
taxes payable in 1991, by the city of Otsego, Wright county, is
exempt from the penalties imposed under Minnesota Statutes,
sections 275.51, subdivision 4, and 275.55.
This section is effective the day after approval by the
Otsego city council and compliance with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 54. [STUDY OF SINGLE-USE PROPERTY.]
For the purposes of providing information to the
legislature, the commissioner of revenue shall survey selected
county assessors to obtain information on the number and types
of single-use industrial real estate properties in the state.
For purposes of the survey, the commissioner of revenue shall
develop a definition of single-use industrial real estate
property in consultation with the chairs of the house and senate
tax committees and county assessors. The commissioner shall
make a report on the findings of the survey to the chairs of the
house and senate tax committees prior to the 1993 legislative
session.
Sec. 55. [STUDY OF HOMESTEAD CLAIMS.]
The commissioner of revenue shall study alternative methods
for identifying improper claims for homestead classification and
the extent to which improper claims have been made. The
commissioner shall report the findings to the chairs of the
house and senate tax committees by January 1993.
Sec. 56. [STUDY ON ECONOMICS ON RENTAL HOUSING.]
The Minnesota housing finance agency, in cooperation with
the department of revenue, shall study the effect of property
tax policy on the economics of the long-term affordability of
rental housing, maintenance of current rental housing stock, and
the changing demographics of renters. The agency shall convene
a task force of representatives of interested groups to advise
the agency on the study. The agency and the department shall
use appropriate research resources, including the University of
Minnesota. The agency shall report to the governor and the
legislature by February 15, 1993.
Sec. 57. [STUDY OF VALUATION OF MANUFACTURED HOME PARKS.]
The department of revenue in consultation with the
assessors and the house and senate tax staff shall study the
valuation of manufactured home parks and shall make
recommendations concerning the most equitable and efficient
methods of valuation to the chairs of the house and senate tax
committees by January 15, 1993.
Sec. 58. [REGIONAL TRANSIT BOARD AID.]
Notwithstanding Minnesota Statutes, section 473.446,
subdivision 1, clause (3), for aids relating to taxes payable in
1992, no aid shall be paid to the regional transit board in 1992
for aid that was not used to reduce the levy extended against
individual parcels as the result of a county auditor's error in
taxes payable in 1992.
Aids payable to the regional transit board in 1993 under
section 473.446 shall be adjusted to include the actual amount
of aids not paid in 1992 under this section provided that the
county auditor reduces property taxes payable in 1993 by this
amount.
Sec. 59. Laws 1991, chapter 291, article 1, section 65, is
amended to read:
Sec. 65. [EFFECTIVE DATE.]
Sections 1, 4, 28, 35, 36, 57, 58, and 62 are effective the
day following final enactment.
Sections 2, 3, 11, 15 to 22, 24, 26 to 28, 27, 30, 37 to
49, and 63 are effective for taxes levied in 1991, payable in
1992, and thereafter.
Sections 5 and 6 are effective for referenda held after
November 1, 1992, for taxes payable in 1993 and thereafter.
Sections 7 and 52 are effective July 1, 1991.
Sections 8, 9 and 31 are effective for appeals filed after
July 31, 1991.
Section 10 is effective only for taxes payable in 1992,
1993, 1994, and 1995.
Sections 12 and 14 are effective for taxes payable in 1993
and thereafter, except the deletion of the language "or any
single contiguous lot fronting on the same street" in sections
12 and 14 shall be effective for taxes payable in 1992 and
thereafter.
Section 13 is effective the day following final enactment
and applies to real property acquired after December 31, 1990.
Sections 23 and 25 are effective for taxes payable in 1993
and thereafter.
Section 29 is effective for referenda for taxes payable in
1993 and thereafter, except that any city or county that
conducted a referendum prior to May 1, 1992, and had publicly
advertised to its property owners using levy amounts that, if
adopted, reflect net tax capacity, is exempt from this provision
with regards to that referendum. If the city or county intends
to levy the tax on net tax capacity under section 29, it must
certify to the commissioner of revenue the information necessary
for the commissioner to determine that the requirements of this
exception have been met.
Sections 32 and 33 are effective for taxes deemed
delinquent after December 31, 1991.
Sections 50 and 51 are effective for aids payable in 1991
and thereafter.
Section 53 is effective the day after the governing body of
the city of Minneapolis complies with Minnesota Statutes,
section 645.021, subdivision 3.
Section 54 is effective for the 1991 and 1992 assessment
year.
Section 59 is effective the day after the governing body of
independent school district No. 325, Lakefield, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Section 60 is effective the day after the governing body of
independent school district No. 77, Mankato, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Section 61 is effective the day after the governing body of
independent school district No. 284, Wayzata, complies with
Minnesota Statutes, section 645.021, subdivision 3.
Sec. 60. [REPEALER.]
(a) Minnesota Statutes 1991 Supplement, section 273.124,
subdivision 15, is repealed.
(b) Minnesota Statutes 1991 Supplement, section 271.04,
subdivision 2, is repealed.
(c) Laws 1991, chapter 291, article 15, section 9, is
repealed.
Sec. 61. [EFFECTIVE DATES.]
Sections 2 to 4, 9, 13, 17, 18, 20, 25, 35, 36, 40, and 60,
paragraph (a), are effective for property taxes levied in 1992,
payable in 1993, and thereafter.
Section 5 is effective beginning with the 1992 sales ratio
study.
Sections 6, 10, 11, 15, 16, 31, 45, and 46 are effective
for property taxes levied in 1993, payable in 1994, and
thereafter.
Sections 7, 8, 24 and 60, paragraph (b), are effective for
hearings scheduled by the court after January 1, 1993.
Section 14 is effective the day following final enactment
and applies to property taxes payable in 1993 and thereafter by
property for which leasehold cooperative status had been claimed
before or after the effective date.
Section 18 is effective for assessment year 1992 and
thereafter, for taxes payable in 1993 and thereafter, provided
that for the assessment year 1992, for taxes payable in 1993,
the January 15, 1992, certification date in section 18 is
extended to June 15, 1992.
Section 22 is effective for referenda for taxes payable in
1993 and thereafter.
Sections 27 to 29, 39, 43, 49 to 51, 54 to 58 and 60,
paragraph (c), are effective the day following final enactment.
Section 34 is effective for abatements granted in 1992 and
thereafter.
Sections 41 and 42 are effective for collections made July
1, 1992, and thereafter.
Section 59 is effective the day following final enactment
and applies as provided in that section.
ARTICLE 3
PROPOSED AND FINAL TAX NOTICES
Section 1. Minnesota Statutes 1991 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 September 1, 1989, and October 1 thereafter of the year
preceding the distribution year to the county auditor of the
affected local government. The aids provided in subdivisions 2,
2b, 3, and 5 must be paid to local governments other than school
districts at the times provided in section 477A.015 for payment
of local government aid to taxing jurisdictions, except that the
first one-half payment of disparity reduction aid provided in
subdivision 3 must be paid on or before August 31. 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.
Sec. 2. Minnesota Statutes 1991 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 15, 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 15, 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, 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 124.495, and common school districts No. 323,
Franconia, and No. 815, Prinsburg, are special taxing districts
for purposes of this section.
Sec. 3. Minnesota Statutes 1990, section 275.065,
subdivision 1a, is amended to read:
Subd. 1a. [OVERLAPPING JURISDICTIONS.] In the case of a
taxing authority lying in two or more counties, the home county
auditor shall certify the proposed levy and the proposed local
tax rate to the other county auditor by September 20 for taxes
levied in 1990, and thereafter, and the proposed local tax rate
by September 5 for taxes levied in 1991, and thereafter, for
counties containing a city of the first class. The home county
auditor must estimate the levy or rate in preparing the notices
required in subdivision 3, if the other county has not certified
the appropriate information. If requested by the home county
auditor, the other county auditor must furnish an estimate to
the home county auditor.
Sec. 4. Minnesota Statutes 1991 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 after November 10 and on or before November
24 each year, by first class mail to each taxpayer at the
address listed on the county's current year's assessment roll, a
notice of proposed property taxes 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 current budget and 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.
(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, and for school districts,
the increase or decrease in the number of pupils in average
daily membership from the current school year to the immediately
following 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 notices which are not parcel-specific, the notice must
also state a total percentage increase or decrease in the
proposed levy, relative to the actual property tax levy for
taxes payable in the current year for the county, city or town,
and school district. The county auditor shall compute the total
percentage increase or decrease as an average percentage change
weighted in proportion to each taxing jurisdiction's proportion
of the total levy.
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; and, in
the case of residential property, whether the property is
classified as homestead or nonhomestead. The notice must
clearly inform taxpayers of the years to which the market values
apply and that the values are final values;
(2) 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. In the case of a parcel where tax increment or
the fiscal disparities areawide tax applies, the proposed tax
levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing
districts; and
(3) the increase or decrease 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) (e) The notice must clearly state that the proposed or
final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, 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;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) any additional amount levied in lieu of a local sales
and use tax, unless this amount is included in the proposed or
final taxes.
(g) (f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead and the homeowner provides
satisfactory documentation to the county assessor that the
property is owned and has been used as the owner's homestead
prior to June 1 of that year, the assessor shall reclassify the
property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:
(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
The notice must be mailed or posted by the taxpayer by
November 13 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
the premises to which the notice must be mailed in order to
fulfill the requirements of this paragraph.
Sec. 5. Minnesota Statutes 1990, section 275.065,
subdivision 4, is amended to read:
Subd. 4. [COSTS.] If the reasonable cost of the county
auditor's services and the cost of preparing and mailing the
notice required in this section exceed the amount distributed to
the county by the commissioner of revenue to administer this
section, the taxing authority must reimburse the county for the
excess cost. The excess cost must be apportioned between taxing
jurisdictions as follows:
(1) one-third is allocated to the county;
(2) one-third is allocated to cities and towns within the
county; and
(3) one-third is allocated to school districts within the
county.
The amounts in clause (2) must be further apportioned among
the cities and towns in the proportion that the population
number of parcels in the city and town bears to the population
number of parcels in all the cities and towns within the
county. The amount in clause (3) must be further apportioned
among the school districts in the proportion that the number
of pupils parcels in the school district bears to the number
of pupils parcels in all school districts within the county.
Sec. 6. Minnesota Statutes 1991 Supplement, section
275.065, subdivision 5a, is amended to read:
Subd. 5a. [PUBLIC ADVERTISEMENT.] (a) A city that has a
population of more than 1,000, 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, to review its current budget and proposed property
taxes payable in the following year, at a public hearing. The
notice must be published not less than two business days nor
more than six business days before the hearing.
For a city that has a population of more than 1,000 but
less than 2,500 the advertisement must be at least one-eighth
page in size of a standard-size or a tabloid-size newspaper, and.
The headlines first headline in the advertisement stating the
notice of proposed property taxes and the notice of public
hearing must be in a type no smaller than 14-point, and the
second headline must be in a type no smaller than 12-point. The
text of the advertisement must be no smaller than 12-point
10-point, except that the property tax amounts and percentages
may be in 10-point 9-point type.
For a city that has a population of 2,500 or more, a county
or a school district, the advertisement must be at least
one-quarter page in size of a standard-size or a tabloid-size
newspaper, and the headlines first headline in the advertisement
stating the notice of proposed property taxes and the notice of
public hearing must be in a type no smaller than 30-point, and
the second headline must be in a type no smaller than 22-point.
The text of the advertisement must be no smaller than 22-point
14-point, except that the property tax amounts and percentages
may be in 14-point 12-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 may include references to
the current budget in regard to proposed property taxes.
"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, or in the case of a school
district, its current budget and proposed property taxes,
payable in the following year. 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)."
(c) A city with a population of 1,000 or less must
advertise by posted notice as defined in section 645.12,
subdivision 1. The advertisement must be posted at the time
provided in paragraph (a). It must be in the form required in
paragraph (b).
(d) For purposes of this subdivision, the population of a
city is the most recent population as determined by the state
demographer under section 116K.04, subdivision 4 4A.02.
Sec. 7. Minnesota Statutes 1991 Supplement, section
275.065, subdivision 6, is amended to read:
Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.]
Between November 15 29 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 review its current budget and
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 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 124.82,
subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision
2, 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;
(5) the amount of a levy to pay tort judgments against a
taxing authority that become final after the proposed levy was
certified, if the amount is approved by the commissioner of
revenue under subdivision 6a;
(6) the amount of an increase in levy limits certified to
the taxing authority by the commissioner of revenue or the
commissioner of education after the proposed levy was certified;
and
(7) if not included in the certified levy, any additional
amount levied pursuant to section 275.51, subdivision 7,
paragraph (b).
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 of a school district, shall adopt its final
property tax levy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, the
taxing authority must announce, prior to adjournment of the
hearing, the date, time, and place for the continuation of the
hearing. The continued hearing must be held at least five
business days but no more than 14 business days after the
original hearing.
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 governing body of a county shall hold its hearing on the
first Tuesday in December each year. The county auditor shall
provide for the coordination of hearing dates for all taxing
authorities cities and school districts 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 the county hearing dates or with
those elected by or assigned to the counties and school
districts in which the city is located.
The county hearing dates so elected or assigned and the
city and school district hearing dates must be designated on the
notices required under subdivision 3. The continuation dates
need not be stated on the notices.
This subdivision does not apply to towns and special taxing
districts.
Sec. 8. Minnesota Statutes 1990, section 275.125,
subdivision 10, is amended to read:
Subd. 10. [CERTIFICATION OF LEVY LIMITATIONS.] By August
15 September 1, 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 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 two calendar years.
Sec. 9. [REPEALER.]
Minnesota Statutes 1990, section 275.065, subdivision 1b,
is repealed.
Sec. 10. [EFFECTIVE DATE.]
Sections 2 to 9 are effective for taxes levied in 1992,
payable in 1993, and thereafter. Section 1 is effective for
aids paid in 1993 and thereafter.
ARTICLE 4
PROPERTY TAXES: ADMINISTRATIVE AND TECHNICAL
Section 1. Minnesota Statutes 1991 Supplement, section
124A.23, subdivision 1, is amended to read:
Subdivision 1. [GENERAL EDUCATION TAX RATE.] The
commissioner of revenue shall establish the general education
tax rate and certify it to the commissioner of education by July
1 of each year for levies payable in the following year. The
general education tax capacity rate shall be a rate, rounded up
to the nearest tenth of a percent, that, when applied to the
adjusted net tax capacity for all districts, raises the amount
specified in this subdivision. The general education tax rate
shall be the rate that raises $916,000,000 for fiscal year 1993
and $961,800,000 for fiscal year 1994 and later fiscal years.
The general education tax rate certified by the commissioner of
revenue may not be changed due to changes or corrections made to
a district's adjusted net tax capacity after the tax rate has
been certified established.
Sec. 2. Minnesota Statutes 1990, section 270.075,
subdivision 1, is amended to read:
Subdivision 1. The commissioner shall determine the rate
of tax to be levied and collected against the net tax capacity
as determined pursuant to section 270.074, subdivision 2, to
generate revenues of $7,500,000 from taxes levied in assessment
year 1987 and payable in 1988 and revenues of $7,900,000 from
taxes levied in 1988 and payable in 1989. Thereafter the
legislature shall annually establish the amount of revenue to be
generated from a tax on sufficient to fund the airflight
property tax portion of each year's state airport fund
appropriation, as certified to the commissioner by the
commissioner of transportation. The property tax portion of the
state airport fund appropriation is the difference between the
total fund appropriation and the estimated total fund revenues
from other sources for the state fiscal year in which the tax is
payable. If a levy amount has not been certified by September 1
of a levy year, the commissioner shall use the last previous
certified amount to determine the rate of tax.
Sec. 3. Minnesota Statutes 1990, section 273.1104,
subdivision 1, is amended to read:
Subdivision 1. The term value as applied to iron ore in
sections 273.165, subdivision 2, and 273.13, subdivision 31,
shall be deemed to be three times the present value of future
income or the minimum value as established by the commissioner
notwithstanding the provisions of section 273.11. The present
value of future income shall be determined by the commissioner
of revenue in accordance with professionally recognized mineral
valuation practice and procedure. Nothing contained herein
shall be construed as requiring any change in the method of
determining present value of iron ore utilized by the
commissioner prior to the enactment hereof or as limiting any
remedy presently available to the taxpayer in connection with
the commissioner's determination of present value, or precluding
the commissioner from making subsequent changes in the present
worth formula.
Sec. 4. Minnesota Statutes 1991 Supplement, section
273.13, subdivision 25, as amended by Laws 1992, chapter 363,
article 1, section 12, subdivision 1, 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 3.5 percent of market value for taxes
payable in 1992, and 3.4 percent of market value for taxes
payable in 1993 and thereafter.
(b) Class 4b includes:
(1) residential real estate containing less than four
units, other than seasonal residential, and recreational;
(2) manufactured homes not classified under any other
provision;
(3) a dwelling, garage, and surrounding one acre of
property on a nonhomestead farm classified under subdivision 23,
paragraph (b).
Class 4b property has a class rate of 2.8 percent of market
value for taxes payable in 1992, 2.5 percent of market value for
taxes payable in 1993, and 2.3 percent of market value for taxes
payable in 1994 and thereafter.
(c) Class 4c property includes:
(1) a structure that is:
(i) situated on real property that is used for housing for
the elderly or for low- and moderate-income families as defined
in Title II, as amended through December 31, 1990, of the
National Housing Act or the Minnesota housing finance agency law
of 1971, as amended, or rules promulgated by the agency and
financed by a direct federal loan or federally insured loan made
pursuant to Title II of the act; or
(ii) situated on real property that is used for housing the
elderly or for low- and moderate-income families as defined by
the Minnesota housing finance agency law of 1971, as amended, or
rules adopted by the agency pursuant thereto and financed by a
loan made by the Minnesota housing finance agency pursuant to
the provisions of the act.
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 as defined in section
42(c)(2) of the Internal Revenue Code of 1986, as amended
through December 31, 1990, that (i) receives a low-income
housing credit under section 42 of the Internal Revenue Code of
1986, as amended through December 31, 1990; or (ii) meets the
requirements of that section and receives public financing,
except financing provided under sections 469.174 to 469.179,
which contains terms restricting the rents; or (iii) meets the
requirements of section 273.1317. Classification pursuant to
this clause is limited 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 unless the owner of the property
elects to have the property assessed under Laws 1991, chapter
291, article 1, section 55. If the owner of the property elects
to have the market value determined on the basis of the actual
restricted rents, as provided in Laws 1991, chapter 291, article
1, section 55, the property will be assessed at the rate
provided for class 4a or class 4b property, as appropriate.
Properties described in clauses (1)(ii), (3), and (4) may apply
to the assessor for valuation under Laws 1991, chapter 291,
article 1, section 55. 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. This clause applies only to the property of a nonprofit
or limited dividend entity.
(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
317A;
(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 250 days in the year preceding the year of
assessment. For purposes of this clause, property is devoted to
a commercial purpose on a specific day if any portion of the
property is used, or available for use for residential
occupancy, and a fee is charged for 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 250 days in the year preceding the year of
assessment and is located within two miles of the class 4c
property with which it is used. Class 4c property classified in
this clause also includes the remainder of class 1c resorts;
(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, 1990. 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;
(7) post-secondary student housing of not more than one
acre of land that is owned by a nonprofit corporation organized
under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or
housing located within two miles of the border of a college
campus; and
(8) manufactured home parks as defined in section 327.14,
subdivision 3.
Class 4c property has a class rate of 2.3 percent of market
value, except that each parcel of seasonal residential
recreational property not used for commercial purposes under
clause (5) has a class rate of 2.2 percent of market value for
taxes payable in 1992, and for taxes payable in 1993 and
thereafter, the first $72,000 of market value on each parcel has
a class rate of two percent and the market value of each parcel
that exceeds $72,000 has a class rate of 2.5 percent.
(d) Class 4d property includes:
(1) a structure that is:
(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.
(2) For taxes payable in 1992, 1993 and 1994, only,
buildings and appurtenances, together with the land upon which
they are located, leased by the occupant under the community
lending model lease-purchase mortgage loan program administered
by the Federal National Mortgage Association, provided the
occupant's income is no greater than 60 percent of the county or
area median income, adjusted for family size and the building
consists of existing single family or duplex housing. The lease
agreement must provide for a portion of the lease payment to be
escrowed as a nonrefundable down payment on the housing. To
qualify under this clause, the taxpayer must apply to the county
assessor by May 30 of each year. The application must be
accompanied by an affidavit or other proof required by the
assessor to determine qualification under this clause.
(3) For taxes payable in 1992, 1993 and 1994, only,
federally acquired buildings under four units and appurtenances,
together with the land upon which they are located that is
leased to a nonprofit corporation organized under chapter 317A
that qualifies for tax exempt status under United States Code,
title 26, section 501(c), or a housing and redevelopment
authority authorized under sections 469.001 to 469.047; the
purpose of the lease must be to allow the nonprofit corporation
to provide transitional housing for homeless persons under the
program established in Code of Federal Regulations, title 55,
section 55 Federal Register 49489. As used in this clause,
"transitional housing" has the meaning given in section 268.38,
subdivision 1, except that the two-year restriction does not
apply. If the property is purchased from the federal government
by the nonprofit corporation for the purpose of continuing to
provide transitional housing after the expiration of the lease,
the property shall continue to be eligible for this
classification. To qualify under this clause, the taxpayer must
apply to the county assessor by May 30 of each year. The
application must be accompanied by an affidavit or other proof
required by the county assessor to determine qualification under
this clause. Property qualifying under this clause in 1992,
1993, or 1994 continues to receive a two percent class rate
until the five-year lease has expired provided that the property
continues to be used for the purposes as described in this
clause.
Class 4d property has a class rate of two percent of market
value.
(e) Residential rental property that would otherwise be
assessed as class 4 property under paragraph (a); paragraph (b),
clauses (1) and (3); 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 2.3 percent of market value
if it is found to be a substandard building under section
273.1316.
Sec. 5. Minnesota Statutes 1991 Supplement, section
273.13, subdivision 33, is amended to read:
Subd. 33. [CLASSIFICATION OF UNIMPROVED PROPERTY.] (a)
Except as provided in paragraph (b), real property that is not
improved with a structure and that is not used as part of a
commercial or industrial activity must be classified and
assessed according to its highest and best use permitted under
the local zoning ordinance. If the ordinance permits more than
one use, the land must be classified and assessed according to
the highest and best use permitted under the ordinance. If no
such ordinance exists, the assessor shall consider the most
likely potential use of the vacant unimproved land based upon
the use made of surrounding land or land in proximity to
the vacant unimproved land.
(b) Real property that is not improved with a structure and
is in commercial, industrial, or agricultural use under section
273.13, must be classified according to its actual use.
Sec. 6. Minnesota Statutes 1990, section 273.135,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1990 and subsequent years,
The amount of the reduction authorized by subdivision 1 shall be:
(a) In the case of property located within the boundaries
of a municipality which meets the qualifications prescribed in
section 273.134, 66 percent of the tax, provided that the
reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to the product
of 95 percent of the base year effective tax rate multiplied by
the ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10.
(b) In the case of property located within the boundaries
of a school district which qualifies as a tax relief area but
which is outside the boundaries of a municipality which meets
the qualifications prescribed in section 273.134, 57 percent of
the tax, provided that the reduction shall not exceed the
maximum amounts specified in clause (c), and shall not exceed an
amount sufficient to reduce the effective tax rate on each
parcel of property to the product of 95 percent of the base year
effective tax rate multiplied by the ratio of the current year's
tax rate to the payable 1989 tax rate. In no case will the
reduction for each homestead resulting from this credit be less
than $10.
(c) The maximum reduction of the tax is $225.40 on property
described in clause (a) and $200.10 on property described in
clause (b), for taxes payable in 1985. These maximum amounts
shall increase by $15 times the quantity one minus the homestead
credit equivalency percentage per year for taxes payable in 1986
and subsequent years.
For the purposes of this subdivision, "homestead credit
equivalency percentage" means one minus the ratio of the net
class rate to the gross class rate applicable to the first
$68,000 $72,000 of the market value of residential homesteads,
"effective tax rate" means tax divided by the market value of a
property, and the "base year effective tax rate" means the
payable 1988 tax on a property with an identical market value to
that of the property receiving the credit in the current year
after the application of the credits payable under Minnesota
Statutes 1988, section 273.13, subdivisions 22 and 23, and this
section, divided by the market value of the property.
Sec. 7. Minnesota Statutes 1990, section 273.1391,
subdivision 2, is amended to read:
Subd. 2. For taxes payable in 1990 and subsequent years,
The amount of the reduction authorized by subdivision 1 shall be:
(a) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a county
with a population of less than 100,000 in which taconite is
mined or quarried and wherein a school district is located which
does meet the qualifications of a tax relief area, and provided
that at least 90 percent of the area of the school district
which does not meet the qualifications of section 273.134 lies
within such county, 57 percent of the tax on qualified property
located in the school district that does not meet the
qualifications of section 273.134, provided that the amount of
said reduction shall not exceed the maximum amounts specified in
clause (c), and shall not exceed an amount sufficient to reduce
the effective tax rate on each parcel of property to the product
of 95 percent of the base year effective tax rate multiplied by
the ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10. The reduction
provided by this clause shall only be applicable to property
located within the boundaries of the county described therein.
(b) In the case of property located within a school
district which does not meet the qualifications of section
273.134 as a tax relief area, but which is located in a school
district in a county containing a city of the first class and a
qualifying municipality, but not in a school district containing
a city of the first class or adjacent to a school district
containing a city of the first class unless the school district
so adjacent contains a qualifying municipality, 57 percent of
the tax, but not to exceed the maximums specified in clause (c),
and shall not exceed an amount sufficient to reduce the
effective tax rate on each parcel of property to the product of
95 percent of the base year effective tax rate multiplied by the
ratio of the current year's tax rate to the payable 1989 tax
rate. In no case will the reduction for each homestead
resulting from this credit be less than $10.
(c) The maximum reduction of the tax is $200.10 for taxes
payable in 1985. This maximum amount shall increase by $15
multiplied by the quantity one minus the homestead credit
equivalency percentage per year for taxes payable in 1986 and
subsequent years.
For the purposes of this subdivision, "homestead credit
equivalency percentage" means one minus the ratio of the net
class rate to the gross class rate applicable to the first
$68,000 $72,000 of the market value of residential homesteads,
and "effective tax rate" means tax divided by the market value
of a property, and the "base year effective tax rate" means the
payable 1988 tax on a property with an identical market value to
that of the property receiving the credit in the current year
after application of the credits payable under Minnesota
Statutes 1988, section 273.13, subdivisions 22 and 23, and this
section, divided by the market value of the property.
Sec. 8. Minnesota Statutes 1991 Supplement, section
273.1398, subdivision 7, is amended to read:
Subd. 7. [APPROPRIATION.] An amount sufficient to pay the
aids and credits provided under this section for school
districts, intermediate school districts, or any group of school
districts levying as a single taxing entity is annually
appropriated from the general fund to the commissioner of
revenue education.
Sec. 9. Minnesota Statutes 1991 Supplement, section
273.1399, is amended to read:
273.1399 [REDUCTION IN STATE TAX INCREMENT FINANCING AID.]
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Qualifying captured net tax capacity" means the
following amounts:
(1) the captured net tax capacity of a new or the expanded
part of an existing economic development or soils condition tax
increment financing district, other than a qualified
manufacturing district, for which certification was requested
after April 30, 1990;
(2) the captured net tax capacity of a qualified
manufacturing district, 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 assessment year of the
original net tax capacity). In no case may the final amounts be
less than zero or greater than the total captured net tax
capacity of the district:
Number of Years Percentage
1 0
2 20
3 40
4 60
5 80
6 or more 100;
(3) the captured net tax capacity of a new or the expanded
part of an existing 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 assessment year of
the original net tax capacity). In no case may the final
amounts be less than zero or greater than the total captured net
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 net
tax capacity resulting from the reduction in the subdistrict's
or site's original net tax capacity.
(b) The terms defined in section 469.174 have the meanings
given in that section.
(c) "Qualified manufacturing district" means an economic
development district that qualifies under section 469.176,
subdivision 4c, paragraph (a), without regard to clauses (2) and
(4), for which certification was requested after June 30, 1991,
located in a home rule charter or statutory city that (1) has a
population under 10,000 according to the last federal census and
(2) is wholly located outside of a metropolitan statistical area
as determined by the United States Office of Management and
Budget.
Subd. 2. [REPORTING.] The county auditor shall calculate
the qualifying captured net 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 net 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 net tax capacity were divided by the sales
ratio and included in the school district's adjusted tax
capacity for purposes of calculating equalized levies as defined
in section 273.1398, subdivision 2a, and associated 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 net 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) 75 percent of the excess, if any, of the amount
determined under subdivision 3, over
(2) .05 times the municipality's net 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 net tax capacity must
be included in adjusted net tax capacity for purposes of
computing the local government aid of the municipality that
approved the tax increment financing district.
Sec. 10. Minnesota Statutes 1990, section 274.20,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) The term "total gross
taxes" means the total gross taxes levied on manufactured homes
assessed pursuant to section 274.19 in a unique taxing
jurisdiction as defined in section 273.1398 before reduction by
any credits for taxes in 1989. For aid payable in 1991 and
subsequent years total gross taxes for 1989 shall be multiplied
by the cost of living adjustment factor as defined in section
273.1398.
(b) "Local tax rate" means the total local tax rate for
taxes payable in 1989 within a unique taxing jurisdiction.
(c) "Total net tax capacity" means the net tax capacities
as defined in section 273.1398 of all manufactured homes
assessed pursuant to section 274.19 except the market value used
shall be for the assessment one year prior to that in which aid
is payable.
(d) "Subtraction factor" means the product of (i) a unique
taxing jurisdiction's local tax rate; (ii) its total net tax
capacity; and (iii) 0.9767. "Current local tax rate" has the
meaning given in section 273.1398, subdivision 1.
(b) "Growth adjustment factor" means the growth adjustment
factor used in the calculation of homestead and agricultural
credit aid for the payable year in which the manufactured home
homestead and agricultural credit aid is payable.
(c) "Net tax capacity" means the product of (1) the
appropriate net class rates for the year in which the aid is
payable, except that for aids payable in 1993 the class rate
applicable to class 4a shall be 3.5 percent; and the class rate
applicable to class 4b shall be 3.5 percent; and for aid payable
in 1994 the class rate applicable to class 4b shall be 2.4
percent, and (2) estimated market values of manufactured homes
assessed under section 274.19 for the assessment one year prior
to that in which the aid is payable. "Total net tax capacity"
means the net tax capacities for all manufactured homes within
the taxing district assessed under section 274.19. Net tax
capacity cannot be less than zero.
(d) "Net tax capacity adjustment" means (1) the total
previous net tax capacity minus the total net tax capacity,
multiplied by (2) the taxing district's current local tax rate.
The net tax capacity adjustment 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 of
manufactured homes assessed under section 274.19 for the
assessment one year prior to that in which the aid is payable.
"Total previous net tax capacity" means the previous net tax
capacities for all manufactured homes within the taxing district
assessed under section 274.19. Previous net tax capacity cannot
be less than zero.
Sec. 11. Minnesota Statutes 1990, section 274.20,
subdivision 2, is amended to read:
Subd. 2. [MANUFACTURED HOME HOMESTEAD AND AGRICULTURAL
CREDIT AID.] For each calendar year, the manufactured home
homestead and agricultural credit aid for each unique taxing
jurisdiction equals total gross taxes minus the unique taxing
jurisdiction's subtraction factor manufactured home homestead
and agricultural credit aid determined under this subdivision
for the preceding aid payable year times the growth adjustment
factor for the jurisdiction plus the net tax capacity adjustment
for the jurisdiction. The aid shall be allocated to each local
government levying taxes in the unique taxing jurisdiction in
the proportion that the local government's gross taxes bear to
the total gross taxes. Except for education districts and
secondary cooperatives that receive revenue according to section
124.2721 or 124.575, payment will not be made to any taxing
jurisdiction that has ceased to levy a property tax.
Sec. 12. Minnesota Statutes 1991 Supplement, section
275.125, subdivision 5, is amended to read:
Subd. 5. [BASIC TRANSPORTATION LEVY.] Each year, a school
district may levy for school transportation services an amount
not to exceed the amount raised by the basic transportation tax
rate times the adjusted net tax capacity of the district for the
preceding year. The commissioner of revenue education shall
establish the basic transportation tax rate and certify it to
the commissioner of education by July 1 of each year for levies
payable in the following year. The basic transportation tax
rate shall be a rate, rounded up to the nearest hundredth of a
percent, that, when applied to the adjusted net tax capacity of
taxable property for all districts, raises the amount specified
in this subdivision. The basic transportation tax rate for
transportation shall be the rate that raises $64,300,000 for
fiscal year 1993 and $68,000,000 for fiscal year 1994 and
subsequent fiscal years. The basic transportation tax rate
certified by the commissioner of revenue education must not be
changed due to changes or corrections made to a district's
adjusted net tax capacity after the tax rate has been certified.
Sec. 13. Minnesota Statutes 1991 Supplement, section
277.01, subdivision 1, is amended to read:
Subdivision 1. [DUE DATES; PENALTY.] Except as provided in
this subdivision and subdivision 3, all unpaid personal property
taxes shall be deemed delinquent on May 16 next after they
become due or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, and
thereupon a penalty of eight percent shall attach and be charged
upon all such taxes. In the case of unpaid personal property
taxes due and owing under section 272.01, subdivision 2, or
273.19, the first half shall become delinquent if not paid
before May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, and
thereupon a penalty of eight percent shall attach on the unpaid
first half; and the second half shall become delinquent if not
paid before October 16, and thereupon a penalty of eight percent
shall attach on the unpaid second half; penalties for unpaid tax
on such property are imposed under section 279.01, subdivision
1. This section shall not apply to property taxed under section
274.19, subdivision 8, paragraph (c).
A county may provide by resolution that in the case of a
property owner that has multiple personal property tax
statements with the aggregate taxes exceeding $50, payments may
be made in installments as provided in this subdivision.
Sec. 14. Minnesota Statutes 1991 Supplement, section
278.01, subdivision 1, is amended to read:
Subdivision 1. [DETERMINATION OF VALIDITY.] Any person
having any estate, right, title, or interest in or lien upon any
parcel of land, who claims that such property has been
partially, unfairly, or unequally assessed in comparison with
other property in the (1) city, or (2) county, or (3) in the
case of a county containing a city of the first class, the
portion of the county excluding the first class city, or that
the parcel has been assessed at a valuation greater than its
real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the
property is exempt from the tax so levied, may have the validity
of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the tax
court by serving one copy of a petition for such determination
upon the county auditor, one copy on the county attorney, one
copy on the county treasurer, and three copies on the county
assessor. In counties where the office of county treasurer has
been combined with the office of county auditor, the petitioner
must serve the number of copies required by the county. The
petitioner must file the copies with proof of service, in the
office of the court administrator of the district court before
the 16th day of May of the year in which the tax becomes
payable. The county assessor shall immediately forward one copy
of the petition to the appropriate governmental authority in a
home rule charter or statutory city or town in which the
property is located if that city or town employs its own
certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school
district in which the property is located.
In counties where the office of county treasurer has been
combined with the office of county auditor, the county may elect
to require the petitioner to serve the number of copies as
determined by the county. The county assessor shall immediately
forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in
which the property is located if that city or town employs its
own certified assessor. A list of petitioned properties,
including the name of the petitioner, the identification number
of the property, and the estimated market value, shall be sent
on or before the first day of July by the county
auditor/treasurer to the school board of the school district in
which the property is located.
For all counties, the petitioner must file the copies with
proof of service, in the office of the court administrator of
the district court before the 16th day of May of the year in
which the tax becomes payable. A petition for determination
under this section may be transferred by the district court to
the tax court. An appeal may also be taken to the tax court
under chapter 271 at any time following receipt of the valuation
notice required by section 273.121 but prior to May 16 of the
year in which the taxes are payable.
Sec. 15. Minnesota Statutes 1990, section 278.02, is
amended to read:
278.02 [PETITION MAY INCLUDE SEVERAL PARCELS.]
Such petition need not be in any particular form, but shall
clearly identify the land involved, the assessment date, and
shall set forth in concise language the claim, defense, or
objection asserted. No petition shall include more than one
assessment date. Several parcels of land in or upon which the
petitioner has an estate, right, title, interest, or lien may be
included in the same petition, but only if they are in the same
city or town, except that contiguous property overlapping city
or town boundaries may be included in one petition.
Sec. 16. Minnesota Statutes 1991 Supplement, section
279.03, subdivision 1a, is amended to read:
Subd. 1a. [RATE AFTER DECEMBER 31, 1990.] (a) Except as
provided in paragraph (b) or (c), interest on delinquent
property taxes, penalties, and costs unpaid on or after January
1, 1991, shall be payable at the per annum rate determined in
section 270.75, subdivision 5. If the rate so determined is
less than ten percent, the rate of interest shall be ten
percent. The maximum per annum rate shall be 14 percent if the
rate specified under section 270.75, subdivision 5, exceeds 14
percent. The rate shall be subject to change on January 1 of
each year.
(b) If a person is the owner of one or more parcels of
property on which taxes are delinquent, and the aggregate tax
capacity of that property exceeds five percent of the total tax
capacity of the school district in which the property is
located, interest on the delinquent property taxes, penalties,
and costs unpaid after January 1, 1992, shall be payable at
twice the rate determined under paragraph (a) for the year.
(c) If a person is the owner of one or more parcels of
property on which taxes are delinquent, and the delinquent taxes
are more than 25 percent of the prior year's school district
levy, interest on the delinquent property taxes, penalties, and
costs unpaid after January 1, 1992, shall be payable at twice
the rate determined under paragraph (a) for the year.
Sec. 17. Minnesota Statutes 1990, section 279.37,
subdivision 1, is amended to read:
Subdivision 1. [COMPOSITION INTO ONE ITEM.] Delinquent
taxes upon any parcel of real estate may be composed into one
item or amount by confession of judgment at any time prior to
the forfeiture of the parcel of land to the state for taxes, for
the aggregate amount of all the taxes, costs, penalties, and
interest accrued against the parcel, as hereinafter provided.
Taxes upon property which, for the previous year's assessment,
was classified as vacant land, mineral property, employment
property, or commercial or industrial property shall not only be
eligible to be composed into any confession of judgment pursuant
to under this section except as provided in subdivision
1a. Delinquent taxes on unimproved land are eligible to be
composed into a confession of judgment only if the land is
classified as homestead, agricultural, or timberland in the
previous year or is eligible for installment payment under
subdivision 1a. The entire parcel is eligible for the ten-year
installment plan as provided in subdivision 2 if 25 percent or
more of the market value of the parcel is eligible for
confession of judgment under this subdivision.
Sec. 18. Minnesota Statutes 1991 Supplement, 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 22, paragraph (c), 23, paragraph
(c), or 25, paragraph (c), clause (5), for which 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 three
years from the date of sale. The period of redemption for 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, except that the period of redemption for nonhomesteaded
agricultural land as defined in section 273.13, subdivision 23,
paragraph (b), shall be two years from the date of sale if at
that time that property is owned by a person who owns one or
more parcels of property on which taxes are delinquent, and (1)
the aggregate tax capacity of that property exceeds five percent
of the total tax capacity of the school district in which the
property is located, or (2) the delinquent taxes are more than
25 percent of the prior year's school district levy.
Sec. 19. Minnesota Statutes 1990, section 281.23,
subdivision 8, is amended to read:
Subd. 8. [COST.] The cost of giving notice, as provided by
subdivisions 2, 3, 5, and 6, shall be paid by the county. The
county may recover costs incurred for posting, publishing,
mailing, and serving the notice from the owner of the parcel
that is the subject of the notice.
Sec. 20. Minnesota Statutes 1990, section 282.09,
subdivision 1, is amended to read:
Subdivision 1. [MONEY PLACED IN FUND.] The county auditor
and county treasurer shall place all money received through the
operation of sections 282.01 to 282.13 in a fund to be known as
the forfeited tax sale fund and all disbursements and costs
shall be charged against that fund, when allowed by the county
board. Members of the county board may be paid a per diem
pursuant to section 375.055, subdivision 1, and reimbursed for
their necessary expenses, and may receive mileage as fixed by
law. Compensation of a land commissioner and assistants, if a
land commissioner is appointed, shall be in the amount
determined by the county board. The county auditor shall
receive 50 cents for each certificate of sale, each contract for
deed and each lease executed by the auditor, and, in counties
where no land commissioner is appointed, additional annual
compensation, not exceeding $300, as fixed by the county board.
Compensation of any other clerical help that may be needed by
the county auditor or land commissioner shall be in the amount
determined by the county board. All compensation provided for
herein shall be in addition to other compensation allowed by
law. Fees so charged in addition to the fee imposed in section
282.014 shall be included in the annual settlement by the county
auditor as hereinafter provided. On or before February 1 each
year, the commissioner of revenue shall certify to the
commissioner of finance, by counties, the total number of state
deeds issued and reissued during the preceding calendar year for
which such fees are charged and the total amount thereof. On or
before March 1 each year, each county shall remit to the
commissioner of revenue, from the forfeited tax sale fund, the
aggregate amount of the fees imposed by section 282.014 in the
preceding calendar year. The commissioner of revenue shall
deposit the amounts received in the state treasury to the credit
of the general fund. When disbursements are made from the fund
for repairs, refunds, expenses of actions to quiet title, or any
other purpose which particularly affects specific parcels of
forfeited lands, the amount of such disbursements shall be
charged to the account of the taxing districts interested in
such parcels. The county auditor shall make an annual
settlement of the net proceeds received from sales and rentals
by the operation of sections 282.01 to 282.13, on the settlement
day determined in section 276.09, for the preceding calendar
year.
Sec. 21. Minnesota Statutes 1990, section 282.36, is
amended to read:
282.36 [FEES PAYABLE TO BY REPURCHASER.]
Any person repurchasing land after forfeiture to the state
for nonpayment of taxes under the provisions of a repurchase law
shall at the time the certificate of repurchase is issued and
recorded by the county auditor or before receiving quitclaim
deed pursuant thereto, pay to the county treasurer a fee of $3
in an amount equal to the fee provided in section 282.014. Fees
so collected during any calendar year shall be credited to a
special fund and, upon a warrant issued by the county auditor on
or before March 1 of the year following, shall be remitted to
the state treasurer commissioner of revenue and credited to the
general fund. The commissioner of revenue shall, on or before
February 1 in each year, certify to the state treasurer
commissioner of finance the number of deeds issued during the
preceding calendar year to which these fees apply, showing by
counties the number of deeds so issued and the total fees due
therefor. This section shall not apply to repurchases made
under any law enacted prior to January 1, 1945.
Sec. 22. Minnesota Statutes 1991 Supplement, section
375.192, subdivision 2, is amended to read:
Subd. 2. Upon written application by the owner of the any
property, 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 county board may also grant the abatement of
penalties for taxes paid within 30 days of the due date,
regardless of the classification of the property. 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 All applications 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. If, except that the part of the application which is for
the abatement of penalty or interest, the application must be
approved by the county treasurer and county auditor. Approval
by the county or city assessor is not required for abatements of
penalty or interest. 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. 23. Minnesota Statutes 1991 Supplement, section
423A.02, subdivision 1a, is amended to read:
Subd. 1a. [SUPPLEMENTARY AMORTIZATION STATE AID.] In
addition to the amortization state aid under subdivision 1,
there is a distribution of supplementary amortization state aid
among those local police and salaried firefighters relief
associations municipalities that receive amortization state aid
under subdivision 1. The amount of the distribution is that
proportion of the appropriation that the unfunded actuarial
accrued liability of each relief association bears to the total
unfunded actuarial accrued liabilities of all relief
associations as reported in the most recent December 31, 1983,
actuarial valuations of the relief associations receiving
amortization state aid under subdivision 1. Money under this
subdivision must be distributed to the relief associations at
the same time that fire and police state aid is distributed
under section 69.021.
Sec. 24. Minnesota Statutes 1990, section 469.177,
subdivision 1a, is amended to read:
Subd. 1a. [ORIGINAL LOCAL TAX RATE.] At the time of the
initial certification of the original net tax capacity for a tax
increment financing district, the county auditor shall certify
the original local tax rate that applies to the district. The
original local tax rate is the sum of all the local tax rates
that apply to a property in the district. The local tax rate to
be certified is the rate in effect for the same taxes payable
year applicable to the tax capacity values certified as the
district's original tax capacity. If the total local tax rate
applicable to properties in the tax increment financing district
varies, the local tax rate must be computed by determining the
average total local tax rate in the district, weighted on the
basis of net tax capacity. The resulting tax capacity rate is
the original local tax rate for the life of the district.
Sec. 25. Minnesota Statutes 1990, section 473.446,
subdivision 1, is amended to read:
Subdivision 1. [TAXATION WITHIN TRANSIT TAXING DISTRICT.]
For the purposes of sections 473.404 to 473.449 and the
metropolitan transit system, except as otherwise provided in
this subdivision, the regional transit board shall levy each
year upon all taxable property within the metropolitan transit
taxing district, defined in subdivision 2, a transit tax
consisting of:
(a) an amount which shall be used for payment of the
expenses of operating transit and paratransit service and to
provide for payment of obligations issued by the commission
under section 473.436, subdivision 6;
(b) an additional amount, if any, the board determines to
be necessary to provide for the full and timely payment of its
certificates of indebtedness and other obligations outstanding
on July 1, 1985, to which property taxes under this section have
been pledged; and
(c) an additional amount necessary to provide full and
timely payment of certificates of indebtedness, bonds, including
refunding bonds or other obligations issued or to be issued
under section 473.39 by the council for purposes of acquisition
and betterment of property and other improvements of a capital
nature and to which the council or board has specifically
pledged tax levies under this clause.
The property tax levied by the regional transit board for
general purposes under clause (a) must not exceed the following
amount for the years specified:
(1) for taxes payable in 1988, the product of two mills
multiplied by the total assessed valuation of all taxable
property located within the metropolitan transit taxing district
as adjusted by the provisions of Minnesota Statutes 1986,
sections 272.64; 273.13, subdivision 7a; and 275.49;
(2) for taxes payable in 1989, the product of (i) the
regional transit board's property tax levy limitation for
general purposes for the taxes payable year 1988 determined
under clause (1) multiplied by (ii) an index for market
valuation changes equal to the assessment year 1988 total market
valuation of all taxable property located within the
metropolitan transit taxing district divided by the assessment
year 1987 total market valuation of all taxable property located
within the metropolitan transit taxing district; and
(3) for taxes payable in 1990 and subsequent years, the
product of (i) the regional transit board's property tax levy
limitation for general purposes for the previous year determined
under this subdivision multiplied by (ii) an index for market
valuation changes equal to the total market valuation of all
taxable property located within the metropolitan transit taxing
district for the current assessment year divided by the total
market valuation of all taxable property located within the
metropolitan transit taxing district for the previous assessment
year.
For the purpose of determining the regional transit board's
property tax levy limitation for general purposes for the taxes
payable year 1988 and subsequent years under this subdivision,
"total market valuation" means the total market valuation of all
taxable property within the metropolitan transit taxing district
without valuation adjustments for fiscal disparities (chapter
473F), tax increment financing (sections 469.174 to 469.179),
and high voltage transmission lines (section 273.425).
The county auditor shall reduce the tax levied pursuant to
this subdivision on all property within statutory and home rule
charter cities and towns that receive full-peak service and
limited off-peak service by an amount equal to the tax levy that
would be produced by applying a rate of 0.01209 0.510 percent of
market value net tax capacity on the property. The county
auditor shall reduce the tax levied pursuant to this subdivision
on all property within statutory and home rule charter cities
and towns that receive limited peak service by an amount equal
to the tax levy that would be produced by applying a rate
of 0.01813 0.765 percent of market value net tax capacity on the
property. The amounts so computed by the county auditor shall
be submitted to the commissioner of revenue as part of the
abstracts of tax lists required to be filed with the
commissioner under section 275.29. Any prior year adjustments
shall also be certified in the abstracts of tax lists. The
commissioner shall review the certifications to determine their
accuracy and may make changes in the certification as necessary
or return a certification to the county auditor for
corrections. The commissioner shall pay to the regional transit
board the amounts certified by the county auditors on the dates
provided in section 273.1398. There is annually appropriated
from the general fund in the state treasury to the department of
revenue the amounts necessary to make these payments.
For the purposes of this subdivision, "full-peak and
limited off-peak service" means peak period regular route
service, plus weekday midday regular route service at intervals
longer than 60 minutes on the route with the greatest frequency;
and "limited peak period service" means peak period regular
route service only.
Sec. 26. [1989 POPULATION AND NUMBER OF HOUSEHOLDS DATA
USED IN 1992 AID CALCULATIONS.]
Notwithstanding any law to the contrary, for the
calculation of payable 1992 homestead and agricultural credit
aid under Minnesota Statutes, section 273.1398, the 1989
population and number of households figure for governmental
subdivisions not having annual estimates prepared by the
metropolitan council is equal to the local unit's 1988
population or number of households figure as prepared by the
state demographer, plus one-half the increase or minus one-half
the decrease when compared to the corresponding figures
according to the 1990 federal census.
Sec. 27. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall delete the first note after section 273.1398.
The amendment to Minnesota Statutes, section 273.1398,
subdivision 1, paragraph (j), made by Laws 1990, chapter 480,
article 7, section 9, is of no effect.
Sec. 28. [REPEALER.]
Minnesota Statutes 1990, section 278.01, subdivision 2, is
repealed.
Sec. 29. [EFFECTIVE DATES.]
Sections 1, 12, 14, 15, and 26 to 28 are effective the day
following final enactment. Sections 2 and 25 are effective for
taxes levied in 1989, payable in 1990, and thereafter, and for
aids and credits payable in 1990 and thereafter. Sections 3, 4
to 7, and 13 are effective for taxes levied in 1992, payable in
1993, and thereafter. Section 8 is effective for aids payable
after June 30, 1992. Section 9 is effective for school year
1992-1993 and for homestead and agricultural credit aid and
local government aids for taxes payable in 1992, and
thereafter. Sections 10 and 11 are effective for aids payable
in 1992 and thereafter. Sections 16 to 18 are effective for
taxes becoming delinquent after December 31, 1991. Section 19
is effective for costs incurred after June 30, 1992. Section 20
is effective July 1, 1982, and thereafter. Section 21 is
effective June 1, 1990, and thereafter, provided further that no
refunds of overpayments and no collection of underpayments will
be made for fees paid prior to June 1, 1990. Section 22 is
effective for abatements granted in 1992 and thereafter.
Section 23 is effective for supplementary amortization state aid
payable after June 30, 1991. Section 24 is effective for new
tax increment financing districts for which the certification
request is, or has been, filed with the county auditor after May
1, 1988, but does not apply to amendments adding geographic area
to an existing district.
ARTICLE 5
LEVY LIMIT REPEAL
Section 1. Minnesota Statutes 1991 Supplement, section
4A.02, is amended to read:
4A.02 [STATE DEMOGRAPHER.]
The director shall appoint a state demographer. The
demographer must be professionally competent in demography and
must possess demonstrated ability based upon past performance.
The demographer shall:
(1) continuously gather and develop demographic data
relevant to the state;
(2) design and test methods of research and data
collection;
(3) periodically prepare population projections for the
state and designated regions and periodically prepare
projections for each county or other political subdivision of
the state as necessary to carry out the purposes of this
section;
(4) review, comment on, and prepare analysis of population
estimates and projections made by state agencies, political
subdivisions, other states, federal agencies, or nongovernmental
persons, institutions, or commissions;
(5) serve as the state liaison with the federal Bureau of
the Census, coordinate state and federal demographic activities
to the fullest extent possible, and aid the legislature in
preparing a census data plan and form for each decennial census;
(6) compile an annual study of population estimates on the
basis of county, regional, or other political or geographical
subdivisions as necessary to carry out the purposes of this
section and section 4A.03;
(7) by January 1 of each year, issue a report to the
legislature containing an analysis of the demographic
implications of the annual population study and population
projections;
(8) prepare maps for all counties in the state, all
municipalities with a population of 10,000 or more, and other
municipalities as needed for census purposes, according to scale
and detail recommended by the federal Bureau of the Census, with
the maps of cities showing precinct boundaries; and
(9) prepare an estimate of population and of the number of
households for each governmental subdivision for which the
metropolitan council does not prepare an annual estimate, and
convey the estimates to the governing body of each political
subdivision by May 1 of each year; and.
(10) prepare an estimate of population and number of
households for an area annexed by a governmental subdivision
subject to levy limits under sections 275.50 to 275.56 if a
municipal board order under section 414.01, subdivision 14,
exists for the annexation and if the population of the annexed
area is equal to at least 50 people or at least ten percent of
the population of a governmental subdivision or unorganized
territory that is losing area by the annexation.
An estimate under clause (10) must be an estimate of the
population as of the date, within 12 months after the annexation
occurs, for which a population estimate for the governmental
subdivision is made either by the state demographer under clause
(9) or by the metropolitan council.
Sec. 2. Minnesota Statutes 1990, section 103B.241, is
amended to read:
103B.241 [LEVY.]
A levy to pay the increased costs to a local government
unit or watershed management organization of implementing
sections 103B.231 and 103B.235 or to pay costs of improvements
and maintenance of improvements identified in an approved and
adopted plan shall be in addition to any other taxes authorized
by law. Notwithstanding any provision to the contrary in
chapter 103D, a watershed district may levy a tax sufficient to
pay the increased costs to the district of implementing sections
103B.231 and 103B.235. The proceeds of any tax levied under
this section shall be deposited in a separate fund and expended
only for the purposes authorized by this section. Watershed
management organizations and local government units may
accumulate the proceeds of levies as an alternative to issuing
bonds to finance improvements. The amount authorized under this
section and levied by a governmental subdivision is not exempt
from sections 275.50 to 275.56.
Sec. 3. Minnesota Statutes 1990, section 103B.335, is
amended to read:
103B.335 [TAX; EXEMPTION FROM PER CAPITA LEVY LIMIT LEVY
AUTHORITY.]
The governing body of any county, municipality, or township
may levy a tax in an amount required to implement sections
103B.301 to 103B.355. The amount of the levy up to 0.01813
percent of taxable market value is exempt from the per capita
levy limit under section 275.11.
Sec. 4. Minnesota Statutes 1990, section 103F.221,
subdivision 3, is amended to read:
Subd. 3. [COMMISSIONER'S COST OF ADOPTING ORDINANCES.] The
costs incurred by the commissioner in adopting the ordinances or
rules for the municipality must be paid by the municipality and
collected from the municipality in the same manner as costs are
paid by a county and collected from a county under section
103F.215, subdivision 4. The tax levied to pay the costs may be
levied in excess of the per capita levy limitation imposed under
section 275.11.
Sec. 5. Minnesota Statutes 1990, section 174.27, is
amended to read:
174.27 [PUBLIC EMPLOYER COMMUTER VAN PROGRAMS.]
Any statutory or home rule charter city, county, school
district, independent board or agency may acquire or lease
commuter vans, enter into contracts with another public or
private employer to acquire or lease such vans, or purchase such
a service for the use of its employees. The governing body of
any such city, county, or school district may by resolution
establish a commuter van revolving fund to be used to acquire or
lease commuter vans for the use of its employees. Any payments
out of the fund shall be repaid to the fund out of revenues
derived from the use by the employees of the city, county, or
school district, of the vans so purchased or leased. For the
purpose of establishing the fund any city, county, or school
district is authorized to make a one time levy not to exceed
0.00242 percent of taxable market value in excess of all taxing
limitations except the limitations imposed under sections 275.50
to 275.56, without affecting the amount or rate of taxes which
may be levied by the city, county, or school district for other
purposes or by any local governments in the area. Any city,
county, or school district which establishes a commuter van
acquisition program or contracts for this service is authorized
to levy a tax not to exceed 0.00024 percent of taxable market
value for the purpose of paying the administrative and
promotional costs of the program which levy shall be in excess
of all taxing limitations except the limitations imposed under
sections 275.50 to 275.56. The governing body of any city,
county, or school district may by resolution terminate the
commuter van revolving fund and use the funds for other purposes
authorized by law.
Sec. 6. Minnesota Statutes 1991 Supplement, section
256E.05, subdivision 3, is amended to read:
Subd. 3. [ADDITIONAL DUTIES.] The commissioner shall also:
(a) Provide necessary forms and instructions to the
counties for plan format and information;
(b) To the extent possible, coordinate other categorical
social services grant applications and plans required of
counties so that the applications and plans are included in and
are consistent with the timetable and other requirements for the
community social services plan in subdivision 2 and section
256E.09;
(c) Provide to the chair of each county board, in addition
to notice required pursuant to sections 14.05 to 14.36, timely
advance notice and a written summary of the fiscal impact of any
proposed new rule or changes in existing rule which will have
the effect of increasing county costs for community social
services;
(d) Provide training, technical assistance, and other
support services to county boards to assist in needs assessment,
planning, implementing, and monitoring social services programs
in the counties;
(e) Design and implement a method of monitoring and
evaluating social services, including site visits that utilize
quality control audits to assure county compliance with
applicable standards, guidelines, and the county and state
social services plans;
(f) Design and implement a system that uses corrective
action procedures as established in subdivision 5 and a schedule
of fines to ensure county compliance with statutes, rules,
federal laws, and federal regulations governing community social
services. In determining the amount of the fine, the
commissioner may consider the number of community social
services clients or applicants affected by the county's failure
to comply with the law or rule, the severity of the
noncompliance, the duration of the noncompliance, the resources
allocated for the provision of the service in the community
social services plan approved under section 256E.09, and the
amount the county is levying for social services and income
maintenance programs as reported under section 275.50 275.62,
subdivision 5 1, clause (2). Fines levied against a county
under this subdivision must not exceed ten percent of the
county's community social services allocation for the year in
which the fines are levied;
(g) Design and implement an incentive program for the
benefit of counties that perform at a level that consistently
meets or exceeds the minimum standards in law and rule. Fines
collected under paragraph (e) may be placed in an incentive fund
and used for the benefit of counties that meet and exceed the
minimum standards;
(h) Specify requirements for reports, including fiscal
reports, according to section 256.01, subdivision 2, paragraph
(17), to account for aids distributed under section 256E.06,
funds from Title XX of the Social Security Act distributed under
Minnesota Statutes, section 256E.07, claims under Title IV-E of
the Social Security Act, mental health funding, and other social
services expenditures and activities; and
(i) Request waivers from federal programs as necessary to
implement sections 256E.01 to 256E.12.
Sec. 7. Minnesota Statutes 1991 Supplement, section
256E.09, subdivision 6, is amended to read:
Subd. 6. [PLAN AMENDMENT.] After providing opportunity for
public comment, the county may amend its plan. After approval
of the amendment by the county board, the county shall submit to
the commissioner its amendment and a statement signed by the
county board or its designee that the county is in compliance
with specified Minnesota Statutes. When certifying the
amendment according to section 256E.05, subdivision 2, the
commissioner shall consider: (1) the effect of the proposed
amendment on efforts to prevent inappropriate or facilitate
appropriate residential placements; and
(2) the resources allocated for the provision of services
in the community social services plan approved under section
256E.09, and the amount the county is levying for social
services and income maintenance programs as reported under
section 275.50 275.62, subdivision 5 1, clause (2).
Sec. 8. Minnesota Statutes 1991 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 review its current budget and
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 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 124.82,
subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision
2, 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;
(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;
and
(7) if not included in the certified levy, any additional
amount levied pursuant to section 275.51, subdivision 7,
paragraph (b).
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 of a school district, shall adopt its final
property tax levy prior to adopting its final budget.
If the hearing is not completed on its scheduled date, the
taxing authority must announce, prior to adjournment of the
hearing, the date, time, and place for the continuation of the
hearing. The continued hearing must be held at least five
business days but no more than 14 business days after the
original hearing.
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 county auditor shall provide for the coordination of hearing
dates 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. 9. Minnesota Statutes 1991 Supplement, section
275.125, subdivision 6j, is amended to read:
Subd. 6j. [LEVY FOR CRIME RELATED COSTS.] For taxes levied
in 1991, payable in 1992 only, each school district may make a
levy on all taxable property located within the school district
for the purposes specified in this subdivision. The maximum
amount which may be levied for all costs under this subdivision
shall be equal to $1 multiplied by the population of the school
district. For purposes of this subdivision, "population" of the
school district means the same as contained in section 275.14.
The proceeds of the levy must be used for reimbursing the cities
and counties who contract with the school district for the
following purposes: (1) to pay the costs incurred for the
salaries, benefits, and transportation costs of peace officers
and sheriffs for liaison services in the district's middle and
secondary schools, (2) to teach drug abuse resistance education
curricula in the elementary schools, and (3) to pay the costs
incurred for the salaries and benefits of peace officers and
sheriffs whose primary responsibilities are to investigate
controlled substance crimes under chapter 152. The school
district must initially attempt to contract for these services
with the police department of each city or the sheriff's
department of the county within the school district containing
the school receiving the services. If a local police department
or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services
with any other police or sheriff's department located entirely
or partially within the school district's boundaries. The levy
authorized under this subdivision is not included in determining
the school district's levy limitations and must be disregarded
in computing any overall levy limitations under sections 275.50
to 275.56 of the participating cities or counties.
Sec. 10. [275.62] [TAX LEVIES; REPORT TO THE COMMISSIONER
OF REVENUE.]
Subdivision 1. [REPORT ON TAXES LEVIED.] The commissioner
of revenue shall establish procedures for the annual reporting
of local government levies. Each local governmental unit shall
submit a report to the commissioner by December 30 of the year
in which the tax is levied. The report shall include, but is
not limited to, information on the amount of the tax levied by
the governmental unit for the following purposes:
(1) debt, which includes taxes levied for the purposes
defined in Minnesota Statutes 1991 Supplement, section 275.50,
subdivision 5, clauses (b), (c), (d), and (e);
(2) social services and related programs, which include
taxes levied for the purposes defined in Minnesota Statutes 1991
Supplement, section 275.50, subdivision 5, clauses (a), (j), and
(v);
(3) libraries, which include taxes levied for the purposes
defined in Minnesota Statutes 1991 Supplement, section 275.50,
subdivision 5, clause (n); and
(4) other levies, which include the taxes levied for all
purposes not included in clause (1), (2), or (3).
Subd. 2. [LOCAL GOVERNMENTS REQUIRED TO REPORT.] For
purposes of this section, "local governmental unit" means a
county, home rule charter or statutory city with a population
greater than 2,500, a town with a population greater than 5,000,
or a home rule charter or statutory city or town that receives a
distribution from the taconite municipal aid account in the levy
year.
Subd. 3. [POPULATION ESTIMATE.] For the purposes of this
section, the population of a local governmental unit shall be
that established by the last federal census, by a census taken
under section 275.14, or by an estimate made by the metropolitan
council or by the state demographer made under section 116K.04,
subdivision 4, whichever is the most recent as to the stated
date of count or estimate for the calendar year preceding the
current levy year.
Subd. 4. [PENALTY FOR LATE REPORTING.] If a local
government unit fails to submit the report required in
subdivision 1 by January 30 of the year after the year in which
the tax was levied, aid payments to the local governmental unit
in the year after the year in which the tax was levied shall be
reduced as follows:
(1) for a county, the aid amount under section 256E.06
shall be reduced by five percent; and
(2) for other local governmental units, the aid certified
to be received under sections 477A.011 to 477A.014 shall be
reduced by five percent.
Sec. 11. Minnesota Statutes 1990, section 383B.152, is
amended to read:
383B.152 [BUILDING AND MAINTENANCE FUND.]
The county board may by resolution levy a tax to provide
money which shall be kept in a fund known as the county reserve
building and maintenance fund. Money in the fund shall be used
solely for the construction, maintenance, and equipping of
county buildings that are constructed or maintained by the
board. The levy shall not be subject to any limit fixed by any
other law except the limitations imposed in sections 275.50 to
275.56 or by any board of tax levy or other corresponding body,
but shall not exceed 0.02215 percent of taxable market value,
less the amount required by chapter 475 to be levied in the year
for the payment of the principal of and interest on all bonds
issued pursuant to Extra Session Laws 1967, chapter 47, section
1.
Sec. 12. Minnesota Statutes 1990, section 398A.06,
subdivision 2, is amended to read:
Subd. 2. [LOANS AND DONATIONS.] The municipality may lend
or donate money to the authority and may levy taxes, appropriate
money, and issue bonds for that purpose in the manner and within
the limitations prescribed by law, including but not limited
to chapters 275 and chapter 475.
Sec. 13. Minnesota Statutes 1990, section 469.107,
subdivision 2, is amended to read:
Subd. 2. [REVERSE REFERENDUM.] A city may increase its
levy for economic development authority purposes under
subdivision 1 in the following way. Its city council must first
pass a resolution stating the proposed amount of levy increase.
The city must then publish the resolution together with a notice
of public hearing on the resolution for two successive weeks in
its official newspaper or if none exists in a newspaper of
general circulation in the city. The hearing must be held two
to four weeks after the first publication. After the hearing,
the city council may decide to take no action or may adopt a
resolution authorizing the proposed increase or a lesser
increase. A resolution authorizing an increase must be
published in the city's official newspaper or if none exists in
a newspaper of general circulation in the city. The resolution
is not effective if a petition requesting a referendum on the
resolution is filed with the city clerk within 30 days of
publication of the resolution. The petition must be signed by
voters equaling five percent of the votes cast in the city in
the last general election. The election must be held pursuant
to the procedure specified in section 275.58 at a general or
special election. Notice of the election must be given in the
manner required by law. The notice must state the purpose and
amount of the levy.
Sec. 14. Minnesota Statutes 1990, section 471.571,
subdivision 2, is amended to read:
Subd. 2. [CREATION OF FUND, TAX LEVY.] The governing body
of the city may create a permanent improvement and replacement
fund to be maintained by an annual tax levy. The governing body
may levy a tax in excess of any charter limitation and in excess
of the per capita limitation imposed under section 275.11 for
the support of the permanent improvement and replacement fund,
but not exceeding the following:
(a) In cities having a population of not more than 500
inhabitants, the lesser of $20 per capita or 0.08059 percent of
taxable market value;
(b) In cities having a population of more than 500 and less
than 2500, the greater of $12.50 per capita or $10,000 but not
exceeding 0.08059 percent of taxable market value;
(c) In cities having a population of more than 2500
inhabitants, the greater of $10 per capita or $31,500 but not
exceeding 0.08059 percent of taxable market value.
Sec. 15. Minnesota Statutes 1990, section 473.711,
subdivision 2, is amended to read:
Subd. 2. The metropolitan mosquito control commission
shall prepare an annual budget. The budget may provide for
expenditures in an amount not exceeding the property tax levy
limitation determined in this subdivision. The commission may
levy a tax on all taxable property in the district as defined in
section 473.702 to provide funds for the purposes of sections
473.701 to 473.716. The tax shall not exceed the property tax
levy limitation determined in this subdivision. A participating
county may agree to levy an additional tax to be used by the
commission for the purposes of sections 473.701 to 473.716 but
the sum of the county's and commission's taxes may not exceed
the county's proportionate share of the property tax levy
limitation determined under this subdivision based on the ratio
of its total net tax capacity to the total net tax capacity of
the entire district as adjusted by section 270.12, subdivision
3. The auditor of each county in the district shall add the
amount of the levy made by the district to other taxes of the
county for collection by the county treasurer with other taxes.
When collected, the county treasurer shall make settlement of
the tax with the district in the same manner as other taxes are
distributed to political subdivisions. No county shall levy any
tax for mosquito, disease vectoring tick, and black gnat
(Simuliidae) control except under sections 473.701 to 473.716.
The levy shall be in addition to other taxes authorized by law
and shall be disregarded in the calculation of limits on taxes
imposed by chapter 275.
The property tax levied by the metropolitan mosquito
control commission shall not exceed the following amount for the
years specified:
(a) for taxes payable in 1988, the product of six-tenths on
one mill multiplied by the total assessed valuation of all
taxable property located within the district as adjusted by the
provisions of Minnesota Statutes 1986, sections 272.64; 273.13,
subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the
commission's property tax levy limitation for the taxes payable
year 1988 determined under clause (a) multiplied by (2) an index
for market valuation changes equal to the assessment year 1988
total market valuation of all taxable property located within
the district divided by the assessment year 1987 total market
valuation of all taxable property located within the district;
and
(c) for taxes payable in 1990 and subsequent years, the
product of (1) the commission's property tax levy limitation for
the previous year determined under this subdivision multiplied
by (2) an index for market valuation changes equal to the total
market valuation of all taxable property located within the
district for the current assessment year divided by the total
market valuation of all taxable property located within the
district for the previous assessment year.
For the purpose of determining the commission's property
tax levy limitation for the taxes payable year 1988 and
subsequent years under this subdivision, "total market
valuation" means the total market valuation of all taxable
property within the district without valuation adjustments for
fiscal disparities (chapter 473F), tax increment financing
(sections 469.174 to 469.179), and high voltage transmission
lines (section 273.425).
Sec. 16. Minnesota Statutes 1991 Supplement, section
477A.011, subdivision 27, is amended to read:
Subd. 27. [REVENUE BASE.] "Revenue base" means the amount
levied for taxes payable in the previous year, 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 originally certified local
government aid in the previous year under sections 477A.011,
477A.012, and 477A.013, except for 477A.013, subdivision 5; and
the estimated taconite aids used to determine levy limits for
taxes payable received in the previous year under section
275.51, subdivision 3i sections 298.28 and 298.282.
Sec. 17. Minnesota Statutes 1991 Supplement, section
477A.011, subdivision 29, is amended to read:
Subd. 29. [ADJUSTED REVENUE BASE.] "Adjusted revenue base"
means revenue base as defined in subdivision 27 less the special
levy reported under section 275.50 275.62, subdivision 5 1,
clause (a) (2).
Sec. 18. [REPEALER.]
Minnesota Statutes 1990, section 134.342, subdivisions 2
and 4, are repealed.
Sec. 19. [EFFECTIVE DATE.]
Sections 1 to 18 are effective for taxes levied in 1992,
payable in 1993, and thereafter.
ARTICLE 6
INCOME, FRANCHISE, GROSS PREMIUMS TAXES
Section 1. Minnesota Statutes 1990, section 60A.15,
subdivision 1, is amended to read:
Subdivision 1. [DOMESTIC AND FOREIGN COMPANIES.] (a) On or
before April 15 1, June 15 1, and December 15 1 of each
year, every domestic and foreign company, including town and
farmers' mutual insurance companies and, domestic mutual
insurance companies, and marine 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 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, unless the total tax for
the current tax year is $500 or less.
Sec. 2. [60A.152] [INSURANCE PREMIUM TAX EQUIVALENT
PAYMENT BY AUTOMOBILE RISK SELF-INSURERS.]
Subdivision 1. [DEFINITIONS.] (a) [APPLICATION.] For
purposes of this section, the definitions in paragraphs (b) to
(f) apply.
(b) [AUTOMOBILE RISKS.] "Automobile risks" means the risk
of providing no-fault insurance under sections 65B.41 to 65B.71.
(c) [MOTOR VEHICLE.] "Motor vehicle" has the meaning given
in section 65B.43, subdivision 2.
(d) [PERSON.] "Person" means an owner, as defined in
section 65B.43, subdivision 4, but does not include the state or
a political subdivision as defined in section 65B.43,
subdivision 20.
(e) [SELF-INSURANCE.] "Self-insurance" means the condition
of qualifying as a self-insurer by complying with section
65B.48, subdivisions 3 and 3a.
(f) [SELF-INSURER.] "Self-insurer" means a person who has
arranged self-insurance for the automobile risks associated with
the person's motor vehicle.
Subd. 2. [PREMIUM TAX AMOUNT.] Every self-insurer who
owns, leases, or operates a motor vehicle required to be
registered or licensed in this state or principally garaged in
this state for at least two months in the applicable calendar
year shall pay an annual amount for each vehicle of:
(1) $15 for a private passenger vehicle as defined in
section 65B.001, subdivision 3, or a utility vehicle as defined
in section 65B.001, subdivision 4, not including a taxi; or
(2) $25 for a taxi or any other self-insured vehicle not
covered by clause (1).
The amount required under this subdivision is payable no
later than July 1, annually, to the commissioner of revenue. A
late payment penalty of $10 a vehicle is assessed if the amount
is not paid on or before July 1, and an additional amount equal
to the original payment amount if the total amount is not paid
until after December 1 of the same year. A self-insurer who is
more than six months delinquent in paying the amount due must be
referred to the commissioner of commerce for action, which may
include revocation of the self-insured's self-insurer status.
Subd. 3. [DEPOSIT OF PAYMENT AMOUNT.] The amounts paid
under subdivision 2 must be deposited in the general fund to the
credit of the account from which the police state aid provided
for in sections 69.011 to 69.051 is payable.
Subd. 4. [RULES AUTHORIZED.] The commissioner of revenue
and the commissioner of commerce are authorized to make rules to
permit the administration of this section.
Sec. 3. Minnesota Statutes 1990, section 289A.25, is
amended by adding a subdivision to read:
Subd. 5a. [MODIFICATION TO INDIVIDUAL ESTIMATED TAX
REQUIREMENTS.] (a) If an individual meets the requirements of
section 6654(d)(1)(C) to (F), of the Internal Revenue Code, the
amount of the required installments under subdivision 5 must be
computed as provided in this subdivision. In determining the
amount of the required installment, the following requirement is
substituted for subdivision 5, clauses (2) and (3): "(2) the
greater of (i) 100 percent of the tax shown on the return of the
individual for the preceding taxable year, or (ii) 90 percent of
the tax shown on the return for the current year, determined by
taking into account the adjustments under section 6654(d)(1)(D)
of the Internal Revenue Code."
(b) Paragraph (a) does not apply for purposes of
determining the amount of the first required installment in any
taxable year under subdivision 3, paragraph (b). A reduction in
an installment under this paragraph must be recaptured by
increasing the amount of the first succeeding required
installment by the amount of the reduction, unless the
individual meets the requirements of paragraph (c).
(c) This subdivision does not apply to any required
installment if the individual qualifies for an annualization
exception as computed under section 6654(d)(1)(C)(iv) of the
Internal Revenue Code. A reduction in an installment under this
paragraph must be recaptured by increasing the amount of the
first succeeding required installment (with respect to which the
requirements of section 6654(d)(1)(C)(iv) are not met) by the
amount of the reduction.
(d) All references to the Internal Revenue Code in this
section are to the Internal Revenue Code of 1986, as amended
through December 31, 1991. For purposes of meeting the
requirements of or making adjustments under section 6654 of the
Internal Revenue Code in this subdivision:
(1) for an individual who is not a Minnesota resident for
the entire year, the terms "adjusted gross income" and "modified
adjusted gross income" mean the Minnesota share of that income
apportioned to Minnesota under section 290.06, subdivision 2c,
paragraph (e); and
(2) "tax" means the sum of the taxes imposed by chapter 290
for a taxable year.
(e) This subdivision does not apply to individuals who
compute and pay estimated taxes under subdivision 10.
(f) This subdivision does not apply to any taxable year
beginning after December 31, 1996.
Sec. 4. Minnesota Statutes 1991 Supplement, section
289A.26, subdivision 1, is amended to read:
Subdivision 1. [MINIMUM LIABILITY.] A corporation,
partnership, or trust subject to taxation under chapter 290
(excluding section 290.92) or an entity subject to taxation
under section 290.05, subdivision 3, must make payment of
estimated tax for the taxable year if its tax liability so
computed can reasonably be expected to exceed $500, or in
accordance with rules prescribed by the commissioner for an
affiliated group of corporations electing to file one return as
permitted under section 289A.08, subdivision 3.
Sec. 5. Minnesota Statutes 1990, section 289A.26,
subdivision 3, is amended to read:
Subd. 3. [SHORT TAXABLE YEAR.] (a) A corporation An entity
with a short taxable year of less than 12 months, but at least
four months, must pay estimated tax in equal installments on or
before the 15th day of the third, sixth, ninth, and final month
of the short taxable year, to the extent applicable based on the
number of months in the short taxable year.
(b) A corporation An entity is not required to make
estimated tax payments for a short taxable year unless its tax
liability before the first day of the last month of the taxable
year can reasonably be expected to exceed $500.
(c) No payment is required for a short taxable year of less
than four months.
Sec. 6. Minnesota Statutes 1990, section 289A.26,
subdivision 4, is amended to read:
Subd. 4. [UNDERPAYMENT OF ESTIMATED TAX.] If there is an
underpayment of estimated tax by a corporation, partnership, or
trust, there shall be added to the tax for the taxable year an
amount determined at the rate in section 270.75 on the amount of
the underpayment, determined under subdivision 5, for the period
of the underpayment determined under subdivision 6. This
subdivision does not apply in the first taxable year that a
corporation is subject to the tax imposed under section 290.02.
Sec. 7. Minnesota Statutes 1991 Supplement, section
289A.26, subdivision 6, is amended to read:
Subd. 6. [PERIOD OF UNDERPAYMENT.] The period of the
underpayment runs from the date the installment was required to
be paid to the earlier of the following dates:
(1) the 15th day of the third month following the close of
the taxable year for corporations, the 15th day of the fourth
month following the close of the taxable year for partnerships
or trusts, and the 15th day of the fifth month following the
close of the taxable year for entities subject to tax under
section 290.05, subdivision 3; or
(2) with respect to any part of the underpayment, the date
on which that part is paid. For purposes of this clause, a
payment of estimated tax shall be credited against unpaid
required installments in the order in which those installments
are required to be paid.
Sec. 8. Minnesota Statutes 1990, section 289A.26,
subdivision 7, is amended to read:
Subd. 7. [REQUIRED INSTALLMENTS.] (a) Except as otherwise
provided in this subdivision, the amount of a required
installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the
term "required annual payment" means the lesser of:
(1) 90 (i) for tax years beginning in calendar year 1992,
93 percent of the tax shown on the return for the taxable year,
or if no return is filed, 90 93 percent of the tax for that
year; or
(ii) for tax years beginning after December 31, 1992, 95
percent of the tax shown on the return for the taxable year, or
if no return is filed 95 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of the
corporation entity for the preceding taxable year provided the
return was for a full 12-month period, showed a liability, and
was filed by the corporation entity.
(c) Except for determining the first required installment
for any taxable year, paragraph (b), clause (2), does not apply
in the case of a large corporation. The term "large
corporation" means a corporation or any predecessor corporation
that had taxable net income of $1,000,000 or more for any
taxable year during the testing period. The term "testing
period" means the three taxable years immediately preceding the
taxable year involved. A reduction allowed to a large
corporation for the first installment that is allowed by
applying paragraph (b), clause (2), must be recaptured by
increasing the next required installment by the amount of the
reduction.
(d) In the case of a required installment, if the
corporation establishes that the annualized income installment
is less than the amount determined in paragraph (a), the amount
of the required installment is the annualized income installment
and the recapture of previous quarters' reductions allowed by
this paragraph must be recovered by increasing later required
installments to the extent the reductions have not previously
been recovered.
(e) The "annualized income installment" is the excess, if
any, of:
(1) an amount equal to the applicable percentage of the tax
for the taxable year computed by placing on an annualized basis
the taxable income:
(i) for the first two months of the taxable year, in the
case of the first required installment;
(ii) for the first two months or for the first five months
of the taxable year, in the case of the second required
installment;
(iii) for the first six months or for the first eight
months of the taxable year, in the case of the third required
installment; and
(iv) for the first nine months or for the first 11 months
of the taxable year, in the case of the fourth required
installment, over
(2) the aggregate amount of any prior required installments
for the taxable year.
(3) For the purpose of this paragraph, the annualized
income shall be computed by placing on an annualized basis the
taxable income for the year up to the end of the month preceding
the due date for the quarterly payment multiplied by 12 and
dividing the resulting amount by the number of months in the
taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred
to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
For the following The applicable
required installments: percentage is:
for tax years for tax years
beginning in beginning after
1992 December 31, 1992
1st 22.5 23.25 23.75
2nd 45 46.5 47.5
3rd 67.5 69.75 71.25
4th 90 93 95
(f)(1) If this paragraph applies, the amount determined for
any installment must be determined in the following manner:
(i) take the taxable income for the months during the
taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for
the months during the taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item
(ii); and
(iv) multiply the tax computed under item (iii) by the base
period percentage for the filing month and the months during the
taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is
the average percent that the taxable income for the
corresponding months in each of the three preceding taxable
years bears to the taxable income for the three preceding
taxable years;
(ii) the term "filing month" means the month in which the
installment is required to be paid;
(iii) this paragraph only applies if the base period
percentage for any six consecutive months of the taxable year
equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the
determination of the base period percentage in the case of
reorganizations, new corporations, and other similar
circumstances.
(3) In the case of a required installment determined under
this paragraph, if the corporation entity determines that the
installment is less than the amount determined in paragraph (a),
the amount of the required installment is the amount determined
under this paragraph and the recapture of previous quarters'
reductions allowed by this paragraph must be recovered by
increasing later required installments to the extent the
reductions have not previously been recovered.
Sec. 9. Minnesota Statutes 1990, section 289A.26,
subdivision 9, is amended to read:
Subd. 9. [FAILURE TO FILE AN ESTIMATE.] In the case of a
corporation an entity that fails to file an estimated tax for a
taxable year when one is required, the period of the
underpayment runs from the four installment dates in subdivision
2 or 3, whichever applies, to the earlier of the periods in
subdivision 6, clauses (1) and (2).
Sec. 10. Minnesota Statutes 1991 Supplement, section
289A.37, subdivision 1, is amended to read:
Subdivision 1. [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO
TAXPAYER.] (a) When a return has been filed and the commissioner
determines that the tax disclosed by the return is different
than the tax determined by the examination, the commissioner
shall send an order of assessment to the taxpayer. When no
return has been filed, the commissioner may make a return for
the taxpayer under section 289A.35 or may send an order of
assessment under this subdivision. The order must explain the
basis for the assessment and must explain the taxpayer's appeal
rights. An order of assessment is final when made but may be
reconsidered by the commissioner under section 289A.65.
(b) An The penalty under section 289A.60, subdivision 1, is
not imposed if the amount of unpaid tax shown on the order must
be is paid to the commissioner: (1) within 60 days after notice
of the amount and demand for its payment have been mailed to the
taxpayer by the commissioner; or (2) if an administrative appeal
is filed under section 289A.65 or a tax court appeal is filed
under chapter 271, within 60 days following the final
determination of the appeal.
Sec. 11. Minnesota Statutes 1991 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, 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, the provisions of
sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
of 1989, Public Law Number 101-239, and the provisions of
section 11702 of the Revenue Reconciliation Act of 1990, Public
Law Number 101-508, 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, the
provision of section 1401 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
and the provisions of sections 11701 and 11703 of the Revenue
Reconciliation Act of 1990, Public Law Number 101-508, shall
become effective at the time they become effective for federal
tax purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1989, shall be in effect for taxable years
beginning after December 31, 1989. The provisions of sections
11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of
the Revenue Reconciliation Act of 1990, Public Law Number
101-508, shall become effective at the time they become
effective for federal purposes.
The Internal Revenue Code of 1986, as amended through
December 31, 1990, shall be in effect for taxable years
beginning after December 31, 1990.
The Internal Revenue Code of 1986, as amended through
December 31, 1991, shall be in effect for taxable years
beginning after December 31, 1991.
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. 12. Minnesota Statutes 1991 Supplement, section
290.05, subdivision 3, is amended to read:
Subd. 3. (a) An organization exempt from taxation under
subdivision 2 shall, nevertheless, be subject to tax under this
chapter to the extent provided in the following provisions of
the Internal Revenue Code:
(i) section 527 (dealing with political organizations);
(ii) section 528 (dealing with certain homeowners
associations);
(iii) sections 511 to 515 (dealing with unrelated business
income); and
(iv) section 521 (dealing with farmers' cooperatives); but
notwithstanding this subdivision, shall be considered an
organization exempt from income tax for the purposes of any law
which refers to organizations exempt from income taxes.
(b) The tax shall be imposed on the taxable income of
political organizations or homeowner associations or the
unrelated business taxable income, as defined in section 512 of
the Internal Revenue Code, of organizations defined in section
511 of the Internal Revenue Code, provided that the tax is not
imposed on:
(1) advertising revenues from a newspaper published by an
organization described in section 501(c)(4) of the Internal
Revenue Code; or
(2) revenues from lawful gambling authorized under chapter
349 that are expended for purposes that qualify for the
deduction for charitable contributions under section 170 of the
Internal Revenue Code of 1986, as amended through December 31,
1991, disregarding the limitation under section 170(b)(2), but
only to the extent the contributions are not deductible in
computing federal taxable income.
The tax shall be at the corporate rates. The tax shall
only be imposed on income and deductions assignable to this
state under sections 290.17 to 290.20. To the extent deducted
in computing federal taxable income, the deductions contained in
section 290.21 shall not be allowed in computing Minnesota
taxable net income.
Sec. 13. Minnesota Statutes 1991 Supplement, section
290.06, subdivision 23, is amended to read:
Subd. 23. [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES
AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the
amount of the taxpayer's contributions made in the calendar year
to candidates and to any political party. The maximum refund
for an individual must not exceed $50 and, for a married couple
filing jointly, must not exceed $100. A refund of a
contribution is allowed only if the taxpayer files a form
required by the commissioner and attaches to the form a copy of
an official refund receipt form issued by the candidate or party
and signed by the candidate, the treasurer of the candidate's
principal campaign committee, or the party chair. A claim must
be filed with the commissioner not sooner than September January
1 of the calendar year in which the contribution is made and no
later than April 15 of the calendar year following the calendar
year in which the contribution is made. A taxpayer may file
only one claim per calendar year. Amounts paid by the
commissioner after June 15 of the calendar year following the
calendar year in which the contribution is made must include
interest at the rate specified in section 270.76.
(b) No refund is allowed under this subdivision for a
contribution to any candidate unless the candidate:
(1) has signed an agreement to limit campaign expenditures
as provided in section 10A.322 or 10A.43;
(2) is seeking an office for which voluntary spending
limits are specified in section 10A.25 or 10A.43; and
(3) has designated a principal campaign committee.
This subdivision does not limit the campaign expenditure of
a candidate who does not sign an agreement but accepts a
contribution for which the contributor improperly claims a
refund.
(c) For purposes of this subdivision, "political party"
means a major political party as defined in section 200.02,
subdivision 7, or a minor political party qualifying for
inclusion on the income tax or property tax refund form under
section 10A.31, subdivision 3a.
A "major or minor party" includes the aggregate of the
party organization within each house of the legislature, the
state party organization, and the party organization within
congressional districts, counties, legislative districts,
municipalities, and precincts.
"Candidate" means a congressional candidate as defined in
section 10A.41, subdivision 4, or a candidate as defined in
section 10A.01, subdivision 5, except a candidate for judicial
office.
"Contribution" means a gift of money.
(d) The commissioner shall make copies of the form
available to the public and candidates upon request.
(e) The following data collected or maintained by the
commissioner under this subdivision are private: the identities
of individuals claiming a refund, the identities of candidates
to whom those individuals have made contributions, and the
amount of each contribution.
(f) The amount necessary to pay claims for the refund
provided in this section is appropriated from the general fund
to the commissioner of revenue.
Sec. 14. Minnesota Statutes 1990, section 290.0922,
subdivision 2, is amended to read:
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; and
(6) cooperatives organized under chapter 308A that provide
housing exclusively to persons age 55 and over and are
classified as homesteads under section 273.124, subdivision 3.
Entities not specifically exempted by this subdivision are
subject to tax under this section, notwithstanding section
290.05.
Sec. 15. Minnesota Statutes 1990, section 290.9201,
subdivision 11, is amended 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. 16. Minnesota Statutes 1990, section 290.923, is
amended by adding a subdivision to read:
Subd. 11. [EXEMPTION FROM DEDUCTION AND WITHHOLDING.] A
person or entity whose shares or certificates of beneficial
interest are traded on the New York Stock Exchange or publicly
traded on any recognized stock exchange and which issues 1099 or
K1 forms to its shareholders or certificate holders and provides
the 1099 or K1 information to the department of revenue, is
exempt from deduction and withholding under this section.
Sec. 17. Minnesota Statutes 1990, section 299F.21,
subdivision 1, is amended to read:
Subdivision 1. [ESTIMATED INSTALLMENT PAYMENTS.] On or
before April 15 1, June 15 1, and December 15 1 of each
year, every licensed insurance company, including reciprocals or
interinsurance exchanges, doing business in the state, excepting
farmers' mutual fire insurance companies and township mutual
fire insurance companies, shall pay to the commissioner of
revenue installments equal to one-third of, a tax upon its fire
premiums or assessments or both, based on a sum equal to
one-half of one percent of the estimated fire premiums and
assessments, less return premiums and dividends, on all direct
business received by it in this state, or by its agents for it,
in cash or otherwise, during the year, including premiums on
policies covering fire risks only on automobiles, whether
written under floater form or otherwise. In the case of a
mutual company or reciprocal exchange the dividends or savings
paid or credited to members in this state shall be construed to
be return premiums. The money so received into the state
treasury shall be credited to the general fund. A company that
fails 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 is
subject to the penalty and interest provided in this chapter,
unless the total tax for the current tax year is $500 or less.
Sec. 18. [TRANSITION RELIEF FOR CHANGE IN CORPORATE
ESTIMATED TAX.]
For the purposes of computing the amount of underpayment of
corporate estimated tax on installment payments due before June
1, 1992, 90 percent shall be substituted for 93 percent in
Minnesota Statutes, section 289A.26, subdivision 7, paragraph
(b), clause (1), and 22.5 percent shall be substituted for 23.25
percent in paragraph (e), clause (4), if there is not an
underpayment of estimated tax for the second installment due in
calendar year 1992.
Sec. 19. [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, 1991" for the words
"Internal Revenue Code of 1986, as amended through December 31,
1990" or "Internal Revenue Code of 1986, as amended through
January 30, 1991" where either phrase occurs in chapters 289A,
290, 290A, and 291, except for section 290.01, subdivision 19.
Sec. 20. [REPEALER.]
Minnesota Statutes 1990, section 60A.15, subdivision 6, is
repealed.
Sec. 21. [EFFECTIVE DATE.]
Sections 1 and 20 are effective for taxable years beginning
after December 31, 1992, except that the date changes in section
1 are effective for payments due on or after December 1, 1992.
Section 2 is effective January 1, 1992.
Section 3 is effective for taxable years beginning after
December 31, 1992.
Sections 4 to 7, and 9 are effective for taxable years
beginning after June 1, 1992.
Sections 8 and 18 are effective for estimated tax payments
for tax years beginning after December 31, 1991, except that the
amendments changing the words "corporation" to "entity" are
effective for taxable years beginning after June 1, 1992.
Sections 10 and 15 are effective the day following final
enactment.
Sections 12 and 14 are effective for taxable years
beginning after December 31, 1991.
Section 13 is effective for contributions made after the
day of final enactment.
Section 16 is effective for taxable years beginning after
December 31, 1989.
Section 17 is effective for payments due on or after
December 31, 1992.
ARTICLE 7
STATE TAXES: ADMINISTRATIVE AND TECHNICAL
Section 1. [13.701] [TAX DATA; CLASSIFICATION AND
DISCLOSURE.]
Classification and disclosure of tax data created,
collected, or maintained under chapters 290, 290A, 291, and 297A
by the department of revenue is governed by chapter 270B.
Sec. 2. Minnesota Statutes 1990, section 60A.19,
subdivision 6, is amended to read:
Subd. 6. [RETALIATORY PROVISIONS.] (1) When by the laws of
any other state or country any taxes, fines, deposits,
penalties, licenses, or fees, other than assessments made by an
insurance guaranty association or similar organization, in
addition to or in excess of those imposed by the laws of this
state upon foreign insurance companies and their agents doing
business in this state, other than assessments made pursuant to
section 60C.06 by an insurance guaranty association or similar
organization organized under the laws of this state, are imposed
on insurance companies of this state and their agents doing
business in that state or country, or when any conditions
precedent to the right to do business in that state are imposed
by the laws thereof, beyond those imposed upon these foreign
companies by the laws of this state, the same taxes, fines,
deposits, penalties, licenses, fees, and conditions precedent
shall be imposed upon every similar insurance company of that
state or country and their agents doing or applying to do
business in this state so long as these foreign laws remain in
force. Special purpose obligations or assessments, or
assessments imposed in connection with particular kinds of
insurance, are not taxes, licenses, or fees as these terms are
used in this section.
(2) In the event that a domestic insurance company, after
complying with all reasonable laws and rulings of any other
state or country, is refused permission by that state or country
to transact business therein after the commissioner of commerce
of Minnesota has determined that that company is solvent and
properly managed and after the commissioner has so certified to
the proper authority of that other state or country, then, and
in every such case, the commissioner may forthwith suspend or
cancel the certificate of authority of every insurance company
organized under the laws of that other state or country to the
extent that it insures, or seeks to insure, in this state
against any of the risks or hazards which that domestic company
seeks to insure against in that other state or country. Without
limiting the application of the foregoing provision, it is
hereby determined that any law or ruling of any other state or
country which prescribes to a Minnesota domestic insurance
company the premium rate or rates for life insurance issued or
to be issued outside that other state or country shall not be
reasonable.
(3) This section does not apply to insurance companies
organized or domiciled in a state or country, the laws of which
do not impose retaliatory taxes, fines, deposits, penalties,
licenses, or fees or which grant, on a reciprocal basis,
exemptions from retaliatory taxes, fines, deposits, penalties,
licenses, or fees to insurance companies domiciled in this state.
Sec. 3. Minnesota Statutes 1991 Supplement, section
270A.04, subdivision 2, is amended to read:
Subd. 2. Any debt owed to a claimant agency shall must not
be submitted by the agency for collection under the procedure
established by sections 270A.01 to 270A.12 unless if (a) an
alternative means of collection is pending and the debtor is
complying with the terms of alternative means of collection,
except that this limitation does not apply to debts owed
resulting from a default in payment of child support or
maintenance there is a written payment agreement between the
debtor and the claimant agency in which revenue recapture is
prohibited and the debtor is complying with the agreement, (b)
the collection attempt would result in a loss of federal funds,
or (c) the agency is unable to supply the department with the
necessary identifying information required by subdivision 3 or
rules promulgated by the commissioner, or (d) the debt is barred
by section 541.05.
Sec. 4. Minnesota Statutes 1990, section 270A.05, is
amended to read:
270A.05 [MINIMUM SUM COLLECTIBLE.]
The minimum sum which a claimant agency may collect through
use of the setoff procedure is $25 $15.
Sec. 5. Minnesota Statutes 1990, section 270A.07,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant
agency, seeking collection of a debt through setoff against a
refund due, shall submit to the commissioner information
indicating the amount of each debt and information identifying
the debtor, as required by section 270A.04, subdivision
3. Where the notification is received before July 1, the
notification shall be effective only to initiate set-off for
claims against refunds that would be made in the same calendar
year. Where the notification is received on or after July 1,
the notification is effective only to begin setoff for claims
against refunds that would be made in the next calendar year.
The claimant agency shall submit to the commissioner the
amount of $3 per certification. The payment must accompany the
certification. The claimant agency shall increase the amount of
each debt certified by $3 and this total amount is subject to
recapture. If the total debt is not recaptured by the
commissioner, the $3 addition to the debt may be collected by
the claimant agency from the debtor and must be considered an
obligation of the debtor. The $3 will not be refunded if the
recapture is not accomplished.
For each setoff of a debt against a refund due, the
commissioner shall charge a fee of $10. The claimant agency may
add the fee to the amount of the debt.
The claimant agency shall notify the commissioner when a
debt has been satisfied or reduced by at least $200 within 30
days after satisfaction or reduction.
Sec. 6. Minnesota Statutes 1990, section 270A.07,
subdivision 2, is amended to read:
Subd. 2. [SETOFF PROCEDURES.] (a) The commissioner, upon
receipt of notification, shall initiate procedures to detect any
refunds otherwise payable to the debtor. When the commissioner
determines that a refund is due to a debtor whose debt was
submitted by a claimant agency, the commissioner shall first
deduct the fee in subdivision 1 and then remit the refund or the
amount claimed, whichever is less, to the agency. In
transferring or remitting moneys to the claimant agency, the
commissioner shall provide information indicating the amount
applied against each debtor's obligation and the debtor's
address listed on the tax return.
(b) The commissioner shall remit to the debtor the amount
of any refund due in excess of the debt submitted for setoff by
the claimant agency. Notice of the amount setoff and address of
the claimant agency shall accompany any disbursement to the
debtor of the balance of a refund.
Sec. 7. Minnesota Statutes 1991 Supplement, section
270A.08, subdivision 2, is amended to read:
Subd. 2. (a) This written notice shall clearly and with
specificity set forth the basis for the claim to the refund
including the name of the benefit program involved if the debt
arises from a public assistance grant and the dates on which the
debt was incurred and, further, shall advise the debtor of the
claimant agency's intention to request setoff of the refund
against the debt.
(b) The notice will also advise the debtor that any the
debt incurred more than six years from the date of the notice to
the commissioner under section 270A.07, except for debts owed
resulting from a default in payment of child support or
maintenance, must not can be setoff against a refund unless the
time period allowed by law for collecting the debt has expired,
and will advise the debtor of the right to contest the validity
of the claim at a hearing. The debtor must assert this right by
written request to the claimant agency, which request the agency
must receive within 45 days of the mailing date of the original
notice or of the corrected notice, as required by subdivision
1. If the debtor has not received the notice, the 45 days shall
not commence until the debtor has received actual notice. The
debtor shall have the burden of showing no notice and shall be
entitled to a hearing on the issue of notice as well as on the
merits.
Sec. 8. Minnesota Statutes 1990, section 270A.11, is
amended to read:
270A.11 [DATA PRIVACY.]
Private and confidential data on individuals may be
exchanged among the department, the claimant agency, and the
debtor as necessary to accomplish and effectuate the intent of
sections 270A.01 to 270A.12, as provided by section 13.05,
subdivision 4, clause (b). The department may disclose to the
claimant agency only the debtor's name, address, social security
number and the amount of the refund, and in the case of a joint
return, the name of the debtor's spouse. Any person employed
by, or formerly employed by, a claimant agency who discloses any
such information for any other purpose, shall be subject to the
civil and criminal penalties of section 270B.18.
Sec. 9. Minnesota Statutes 1990, section 270B.01,
subdivision 8, is amended to read:
Subd. 8. [MINNESOTA TAX LAWS.] For purposes of this
chapter only, "Minnesota tax laws" means the taxes administered
by or paid to the commissioner under chapters 289A, 290, 290A,
291, and 297A, and includes any laws for the assessment,
collection, and enforcement of those taxes.
Sec. 10. Minnesota Statutes 1991 Supplement, section
289A.20, subdivision 1, is amended to read:
Subdivision 1. [INDIVIDUAL INCOME, FIDUCIARY INCOME,
MINING COMPANY, CORPORATE FRANCHISE, AND ENTERTAINMENT TAXES.]
(a) Individual income, fiduciary, mining company, and corporate
franchise taxes must be paid to the commissioner on or before
the date the return must be filed under section 289A.18,
subdivision 1, or the extended due date as provided in section
289A.19, unless an earlier date for payment is provided.
Notwithstanding any other law, a taxpayer whose unpaid
liability for income or corporate franchise taxes, as reflected
upon the return, is $1 or less need not pay the tax.
A corporation required to make estimated tax payments by
means of an electronic funds transfer must also make the payment
with the return in accordance with section 289A.26, subdivision
2a.
(b) Entertainment taxes must be paid on or before the date
the return must be filed under section 289A.18, subdivision 1.
Sec. 11. [289A.43] [PROHIBITION OF SUITS TO RESTRAIN
ASSESSMENT OR COLLECTION.]
Except for the express procedures in this chapter, chapters
270 and 271, and any other tax statutes for contesting the
assessment or collection of taxes, penalties, or interest
administered by the commissioner of revenue, no suit to restrain
assessment or collection, including a declaratory judgment
action, can be maintained in any court by any person.
Sec. 12. Minnesota Statutes 1990, section 289A.50,
subdivision 5, is amended to read:
Subd. 5. [WITHHOLDING OF REFUNDS FROM CHILD SUPPORT
DEBTORS.] (a) If a court of this state finds that a person
obligated to pay child support is delinquent in making payments,
the amount of child support unpaid and owing, including attorney
fees and costs incurred in ascertaining or collecting child
support, must be withheld from a refund due the person under
chapter 290. The public agency responsible for child support
enforcement or the parent or guardian of a child for whom the
support, attorney fees, and costs are owed may petition the
district or county court for an order providing for the
withholding of the amount of child support, attorney fees, and
costs unpaid and owing as determined by court order. The person
from whom the refund may be withheld must be notified of the
petition under the rules of civil procedure before the issuance
of an order under this subdivision. The order may be granted on
a showing to the court that required support payments, attorney
fees, and costs have not been paid when they were due.
(b) On order of the court and on payment of $3 to the
commissioner, the commissioner shall withhold the money from the
refund due to the person obligated to pay the child support.
The amount withheld shall be remitted to the public agency
responsible for child support enforcement or to the parent or
guardian petitioning on behalf of the child, after any
delinquent tax obligations of the taxpayer owed to the revenue
department have been satisfied and after deduction of the fee
prescribed in section 270A.07, subdivision 1. An amount
received by the responsible public agency or the petitioning
parent or guardian in excess of the amount of public assistance
spent for the benefit of the child to be supported, or the
amount of any support, attorney fees, and costs that had been
the subject of the claim under this subdivision that has been
paid by the taxpayer before the diversion of the refund, must be
paid to the person entitled to the money. If the refund is
based on a joint return, the part of the refund that must be
paid to the petitioner is the proportion of the total refund
that equals the proportion of the total federal adjusted gross
income of the spouses that is the federal adjusted gross income
of the spouse who is delinquent in making the child support
payments.
(c) A petition filed under this subdivision remains in
effect with respect to any refunds due under this section until
the support money, attorney fees, and costs have been paid in
full or the court orders the commissioner to discontinue
withholding the money from the refund due the person obligated
to pay the support, attorney fees, and costs. If a petition is
filed under this subdivision and a claim is made under chapter
270A with respect to the individual's refund and notices of both
are received before the time when payment of the refund is made
on either claim, the claim relating to the liability that
accrued first in time must be paid first. The amount of the
refund remaining must then be applied to the other claim.
Sec. 13. Minnesota Statutes 1990, section 290.05,
subdivision 4, is amended to read:
Subd. 4. (a) Corporations, individuals, estates, trusts or
organizations claiming exemption under subdivision 2 shall
furnish information concerning their exempt status under the
Internal Revenue Code.
(b) Corporations, individuals, estates, trusts, and
organizations shall file with the commissioner of revenue a copy
of an annual report that is required to be filed with the
Internal Revenue Service, no later than ten days after filing it
with the Internal Revenue Service. An annual report required of
a pension plan under sections 6057 to 6059 of the Internal
Revenue Code of 1954, does not need to be filed with the
commissioner.
(c) If the Internal Revenue Service revokes, cancels or
suspends, in whole or part, the exempt status of any
corporation, individual, estate, trust or organization referred
to in paragraph (a), or if the amount of gross income,
deductions, credits, items of tax preference or taxable income
is changed or corrected by either the taxpayer or the Internal
Revenue Service, or if the taxpayer consents to any extension of
time for assessment of federal income taxes, the corporation,
individual, estate, trust or organization shall notify the
commissioner in writing of the action within 90 days after that
date.
(d) (b) The periods of limitations contained in section
289A.42, subdivision 2, apply when there has been any action
referred to in paragraph (c) (a), notwithstanding any period of
limitations to the contrary.
Sec. 14. Minnesota Statutes 1991 Supplement, section
290.0671, subdivision 1, is amended to read:
Subdivision 1. [CREDIT ALLOWED.] An individual is allowed
a credit against the tax imposed by this chapter equal to ten
percent of the credit for which the individual is eligible under
section 32 of the Internal Revenue Code of 1986, as amended
through December 31, 1990.
For a nonresident, or part-year resident, or person who has
earned income not subject to tax under this chapter, the credit
determined under section 32 of the Internal Revenue Code of
1986, as amended through December 31, 1990, must be allocated
based on the percentage of the total earned income of the
claimant and the claimant's spouse that is derived from
Minnesota sources calculated under section 290.06, subdivision
2c, paragraph (e).
For a person who was a resident for the entire tax year and
has earned income not subject to tax under this chapter, the
credit must be allocated based on the ratio of federal adjusted
gross income reduced by the earned income not subject to tax
under this chapter over federal adjusted gross income.
Sec. 15. Minnesota Statutes 1991 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
Minnesota charitable contribution deduction and non-Minnesota
charitable deductions to the extent they are included in federal
alternative minimum taxable income under section 57(a)(6) of the
Internal Revenue Code, and excluding the medical expense
deduction;
(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, 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 seven 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. 16. Minnesota Statutes 1990, section 290.091,
subdivision 6, is amended to read:
Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit
is allowed against the tax imposed by this chapter on
individuals, trusts, and estates equal to the minimum tax credit
for the taxable year. The minimum tax credit equals the
adjusted net minimum tax for taxable years beginning after
December 31, 1988, reduced by the minimum tax credits allowed in
a prior taxable year. The credit may not exceed the excess (if
any) for the taxable year of
(1) the regular tax, over
(2) the greater of (i) the tentative alternative minimum
tax, or (ii) zero.
(b) The adjusted net minimum tax for a taxable year equals
the lesser of the net minimum tax or the excess (if any) of
(1) the tentative minimum tax, over
(2) six seven percent of the sum of
(i) adjusted gross income as defined in section 62 of the
Internal Revenue Code,
(ii) interest income as defined in section 290.01,
subdivision 19a, clause (1),
(iii) interest on specified private activity bonds, as
defined in section 57(a)(5) of the Internal Revenue Code, to the
extent not included under clause (ii),
(iv) depletion as defined in section 57(a)(1) of the
Internal Revenue Code, less
(v) the deductions provided in clauses (3)(i), (3)(ii), and
(3)(iii) of subdivision 2, paragraph (a), and
(vi) the exemption amount determined under subdivision 3.
In the case of an individual who is not a Minnesota
resident for the entire year, adjusted net minimum tax must be
multiplied by the fraction defined in section 290.06,
subdivision 2c, paragraph (e). In the case of a trust or
estate, adjusted net minimum tax must be multiplied by the
fraction defined under subdivision 4, paragraph (b).
Sec. 17. Minnesota Statutes 1991 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), 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.
(2) "Qualified regular tax" means the tax imposed under
section 290.06, subdivision 1.
(c) The qualified alternative minimum tax for a taxable
year is an alternative minimum tax credit carryover to each of
the 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.
(d) An acquiring corporation may carry over this credit
from a transferor or distributor corporation in a corporate
acquisition. The provisions of section 381 of the Internal
Revenue Code apply in determining the amount of the carryover,
if any.
Sec. 18. Minnesota Statutes 1991 Supplement, section
290.0922, subdivision 1, is amended to read:
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 289A.08, subdivision 3, 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 $ 999,999 $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 289A.12, subdivision 3, 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 289A.12, subdivision 3, 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 for the taxpayer due under
section 290.41, subdivision 1, for the calendar year following
the calendar year in which the tax is imposed 289A.18,
subdivision 1. 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 $ 999,999 $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
Sec. 19. Minnesota Statutes 1990, section 290A.03,
subdivision 8, is amended to read:
Subd. 8. [CLAIMANT.] (a) "Claimant" means a person, other
than a dependent, who filed a claim authorized by this chapter
and who was a resident of this state as provided in chapter 290
during the calendar year for which the claim for relief was
filed.
(b) In the case of a claim relating to rent constituting
property taxes, the claimant shall have resided in a rented or
leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments
imposed in lieu of ad valorem taxes, are payable at some time
during the calendar year covered by the claim.
(c) "Claimant" shall not include a resident of a nursing
home, intermediate care facility, or long-term residential
facility whose rent constituting property taxes is paid pursuant
to the supplemental security income program under title XVI of
the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.41, the medical assistance
program pursuant to title XIX of the Social Security Act, or the
general assistance medical care program pursuant to section
256D.03, subdivision 3. If only a portion of the rent
constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but
the refund calculated pursuant to section 290A.04 shall be
multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (1) and (2), reduced by the
total amount of income from the above sources other than vendor
payments under the medical assistance program or the general
assistance medical care program and the denominator of which is
income as defined in subdivision 3, paragraphs (1) and (2), plus
vendor payments under the medical assistance program or the
general assistance medical care program, to determine the
allowable refund pursuant to this chapter.
(d) Notwithstanding paragraph (c), if the claimant was a
resident of the nursing home, intermediate care facility or
long-term residential facility for only a portion of the
calendar year covered by the claim, the claimant may compute
rent constituting property taxes by disregarding the rent
constituting property taxes from the nursing home, intermediate
care facility, or long-term residential facility and use only
that amount of rent constituting property taxes or property
taxes payable relating to that portion of the year when the
claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the
claim.
(e) In the case of a claim for rent constituting property
taxes of a part-year Minnesota resident, the income and rental
reflected in this computation shall be for the period of
Minnesota residency only. Any rental expenses paid which may be
reflected in arriving at federal adjusted gross income cannot be
utilized for this computation. When two individuals of a
household are able to meet the qualifications for a claimant,
they may determine among them as to who the claimant shall be.
If they are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. If a
homestead property owner was a part-year Minnesota resident, the
income reflected in the computation made pursuant to section
290A.04 shall be for the entire calendar year, including income
not assignable to Minnesota.
(f) If a homestead is occupied by two or more renters, who
are not husband and wife, the rent shall be deemed to be paid
equally by each, and separate claims shall be filed by each.
The income of each shall be each renter's household income for
purposes of computing the amount of credit to be allowed.
Sec. 20. Minnesota Statutes 1990, section 290A.19, is
amended to read:
290A.19 [OWNER OR MANAGING AGENT TO FURNISH RENT
CERTIFICATE.]
(a) The owner or managing agent of any property for which
rent is paid for occupancy as a homestead must furnish a
certificate of rent constituting property tax to a person who is
a renter on December 31, in the form prescribed by the
commissioner. If the renter moves before December 31, the owner
or managing agent may give 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 must be made available to the renter before February
1 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) The certificate of rent constituting property taxes
must include the address of the property, including the county,
and the property tax parcel identification number and any
additional information that the commissioner determines is
appropriate.
(c) 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 that
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.
(d) By June 30, for taxes payable in 1990 and May 30 for
taxes payable in 1991 and thereafter January 31 of the year
following the year in which the rent was collected, each owner
or managing agent shall report to the commissioner on a form
prescribed by the commissioner the net tax pertaining to the
rental residential part 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. 21. Minnesota Statutes 1990, section 297A.15,
subdivision 5, is amended to read:
Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding the
provisions of sections 297A.25, subdivision 42, and 297A.257 the
tax on sales of capital equipment, and construction materials
and supplies under section 297A.257, shall be imposed and
collected as if the rate rates under section sections 297A.02,
subdivision 1, and 297A.021 applied. Upon application by the
purchaser, on forms prescribed by the commissioner, a refund
equal to the reduction in the tax due as a result of the
application of the exemption under section 297A.25, subdivision
42, or 297A.257 shall be paid to the purchaser. In the case of
building materials qualifying under section 297A.257 where the
tax was paid by a contractor, application must be made by the
owner for the sales tax paid by all the contractors,
subcontractors, and builders for the project. The application
must include sufficient information to permit the commissioner
to verify the sales tax paid for the project. The application
shall include information necessary for the commissioner
initially to verify that the purchases qualified as capital
equipment under section 297A.25, subdivision 42, or capital
equipment or construction materials and supplies under section
297A.257. No more than two applications for refunds may be
filed under this subdivision in a calendar year. Unless
otherwise specifically provided by this subdivision, the
provisions of section 289A.40 apply to the refunds payable under
this subdivision. There is annually appropriated to the
commissioner of revenue the amount required to make the refunds.
The amount to be refunded shall bear interest at the rate
in section 270.76 from the date the refund claim is filed with
the commissioner.
Sec. 22. Minnesota Statutes 1990, section 297A.15,
subdivision 6, is amended to read:
Subd. 6. [REFUND; APPROPRIATION.] The tax on the gross
receipts from the sale of items exempt under section 297A.25,
subdivision 43, must be imposed and collected as if the sale
were taxable and the rate rates under section sections 297A.02,
subdivision 1, and 297A.021 applied.
Upon application by the owner of the homestead property on
forms prescribed by the commissioner, a refund equal to the tax
paid on the gross receipts of the building materials and
equipment must be paid to the homeowner. In the case of
building materials in which the tax was paid by a contractor,
application must be made by the homeowner for the sales tax paid
by the contractor. The application must include sufficient
information to permit the commissioner to verify the sales tax
paid for the project. The contractor must furnish to the
homeowner a statement of the cost of building materials and the
sales taxes paid on the materials. The amount required to make
the refunds is annually appropriated to the commissioner.
Interest must be paid on the refund at the rate in section
270.76 from 60 days after the date the refund claim is filed
with the commissioner.
Sec. 23. Minnesota Statutes 1990, section 541.07, is
amended to read:
541.07 [TWO- OR THREE-YEAR LIMITATIONS.]
Except where the Uniform Commercial Code, this section,
section 148A.06, or section 541.073 otherwise prescribes, the
following actions shall be commenced within two years:
(1) For libel, slander, assault, battery, false
imprisonment, or other tort, resulting in personal injury, and
all actions against physicians, surgeons, dentists, other health
care professionals as defined in section 145.61, and
veterinarians as defined in chapter 156, hospitals, sanitariums,
for malpractice, error, mistake or failure to cure, whether
based on contract or tort; provided a counterclaim may be
pleaded as a defense to any action for services brought by a
physician, surgeon, dentist, or other health care professional
or veterinarian, hospital or sanitarium, after the limitations
herein described notwithstanding it is barred by the provisions
of this chapter, if it was the property of the party pleading it
at the time it became barred and was not barred at the time the
claim sued on originated, but no judgment thereof except for
costs can be rendered in favor of the party so pleading it;
(2) Upon a statute for a penalty or forfeiture, except as
provided in sections 541.074 and 541.075;
(3) For damages caused by a dam, other than a dam used for
commercial purposes; but as against one holding under the
preemption or homestead laws, the limitations shall not begin to
run until a patent has been issued for the land so damaged;
(4) Against a master for breach of an indenture of
apprenticeship; the limitation runs from the expiration of the
term of service;
(5) For the recovery of wages or overtime or damages, fees
or penalties accruing under any federal or state law respecting
the payment of wages or overtime or damages, fees or penalties
except, that if the employer fails to submit payroll records by
a specified date upon request of the department of labor and
industry or if the nonpayment is willful and not the result of
mistake or inadvertence, the limitation is three years. (The
term "wages" means all remuneration for services or employment,
including commissions and bonuses and the cash value of all
remuneration in any medium other than cash, where the
relationship of master and servant exists and the term "damages"
means single, double, or treble damages, accorded by any
statutory cause of action whatsoever and whether or not the
relationship of master and servant exists);
(6) For damages caused by the establishment of a street or
highway grade or a change in the originally established grade;
(7) For sales or use taxes imposed by the laws of any other
state;
(8) Against the person who applies the pesticide for injury
or damage to property resulting from the application, but not
the manufacture or sale, of a pesticide.
Sec. 24. Laws 1991, chapter 291, article 7, section 27, is
amended to read:
Sec. 27. [EFFECTIVE DATE.]
Sections 2, 4, 9, 15 to 19, 21 to 24, and 26 are effective
for taxable years beginning after December 31, 1990, provided
that the carryover for the credit provided under Minnesota
Statutes, section 290.068, subdivision 6, that is repealed by
section 26, remains in effect for taxable years beginning before
2003. Sections 10 and 14 are effective the day following final
enactment. Sections 1, 3, 11, 12, 13, 20, and 25 are effective
for taxable years beginning after December 31, 1989.
Sec. 25. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota Statutes, the revisor of
statutes shall delete the note after section 290A.19. Effective
August 1, 1990, the amendment to Minnesota Statutes, section
290A.19, made by Laws 1990, chapter 480, article 1, section 38,
paragraph (c), is of no effect.
Sec. 26. [REPEALER.]
Minnesota Statutes 1990, sections 289A.12, subdivision 1;
290.48, subdivision 7; and 297.32, subdivision 7, are repealed.
Minnesota Rules, parts 8130.6100 and 8130.6800, are repealed.
Sec. 27. [EFFECTIVE DATES.]
Sections 2, 3, 7 to 9, 11, 17, 18, 24, and 26 are effective
the day following final enactment.
Sections 4, 5, 6, and 12 are effective for refund offsets
made on or after July 1, 1992.
Section 10 is effective for payments with corporate
franchise tax returns due on or after January 1, 1992.
Section 13 is effective for returns that would have been
due after the date of final enactment.
Section 14 is effective for tax years beginning after
December 31, 1991.
Sections 15 and 16 are effective for tax years beginning
after December 31, 1990.
Section 19 is effective beginning for claims based on rent
paid in 1992.
Section 20 is effective beginning with returns based on
rent collected in 1992.
Sections 21 and 22 are effective retroactively for all
purchases made after December 31, 1991.
Section 23 is effective for causes of action arising on or
after the day following final enactment, and for causes of
action arising before that date that have not expired as of the
day following final enactment.
ARTICLE 8
SALES AND USE TAXES
Section 1. Minnesota Statutes 1990, section 216C.06, is
amended by adding a subdivision to read:
Subd. 13. [PHOTOVOLTAIC DEVICE.] "Photovoltaic device"
means a system of components that generates electricity from
incident sunlight by means of the photovoltaic effect, whether
or not the device is able to store the energy produced for later
use.
Sec. 2. Minnesota Statutes 1990, section 289A.11,
subdivision 3, is amended to read:
Subd. 3. [WHO MUST FILE RETURN.] For purposes of the sales
tax, a return must be filed by a retailer who is required to
hold a permit. For the purposes of the use tax, a return must
be filed by a retailer required to collect the tax and by a
person buying any items, the storage, use or other consumption
of which is subject to the use tax, who has not paid the use tax
to a retailer required to collect the tax. The returns must be
signed by the person filing the return or by the person's agent
duly authorized in writing. The signature requirement can be
waived by agreement, in writing, between the commissioner and
the person required to file the returns for a period not to
exceed one year from the date of the agreement. The agreement
must contain an admission of liability by the taxpayer for the
taxes reported on all returns filed by the taxpayer without a
signature during the period of the waiver, to the extent such
taxes are not timely paid.
Sec. 3. Minnesota Statutes 1991 Supplement, section
289A.18, subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use
tax returns must be filed on or before the 20th day of the month
following the close of the preceding reporting period, except
that annual use tax returns provided for under section 289A.11,
subdivision 1, must be filed by April 15 following the close of
the calendar year. In addition, on or before June 20 of a year,
a retailer who has a May liability of $1,500 or more must file a
return with the commissioner for one-half of the estimated June
liability, in addition to filing a return for the May
liability. On or before August 20 of a year, the retailer must
file a return showing the actual June liability.
(b) Returns filed by retailers required to remit
liabilities by means of funds transfer under section 289A.20,
subdivision 4, paragraph (d), are due on or before the 25th day
of the month following the close of the preceding reporting
period. Returns filed under the second sentence of paragraph
(a) by a retailer required to remit by means of funds transfer
are due on June 25, and on or before August 25 of a year, the
retailer must file a return showing the actual June liability.
Sec. 4. Minnesota Statutes 1991 Supplement, section
289A.20, subdivision 4, is amended to read:
Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by
chapter 297A are due and payable to the commissioner monthly on
or before the 20th day of the month following the month in which
the taxable event occurred or following another reporting period
as the commissioner prescribes, except that use taxes due on an
annual use tax return as provided under section 289A.11,
subdivision 1, are payable by April 15 following the close of
the calendar year.
(b) A vendor having a liability of $1,500 or more in May of
a year must remit the June liability in the following manner:
(1) On or before June 20 of the year, the vendor must remit
the actual May liability and one-half of the estimated June
liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay
any additional amount of tax not remitted in June.
(3) If the vendor is required to remit by means of funds
transfer as provided in paragraph (d), the vendor may remit the
May liability as provided for in paragraph (e), but must remit
one-half of the estimated June liability on or before June 14.
The remaining amount of the June liability is due on August 14.
(c) When a retailer located outside of a city that imposes
a local sales and use tax collects use tax to be remitted to
that city, the retailer is not required to remit the tax until
the amount collected reaches $10.
(d) A vendor having a liability of $240,000 or more during
a fiscal year ending June 30 must remit all liabilities in the
subsequent calendar year by means of a funds transfer as defined
in section 336.4A-104, paragraph (a). The funds transfer
payment date, as defined in section 336.4A-401, must be on or
before the date the tax is due the 14th day of the month
following the month in which the taxable event occurred, except
for the one-half of the estimated June liability, which is due
with the May liability on June 14. The remaining amount of the
June liability is due on August 14. If the date the tax is due
is not a funds transfer business day, as defined in section
336.4A-105, paragraph (a), clause (4), the payment date must be
on or before the funds transfer business day next following the
date the tax is due.
(e) If the vendor required to remit by electronic funds
transfer as provided in paragraph (d) is unable due to
reasonable cause to determine the actual sales and use tax due
on or before the due date for payment, the vendor may remit an
estimate of the tax owed using one of the following options:
(1) 100 percent of the tax reported on the previous month's
sales and use tax return;
(2) 100 percent of the tax reported on the sales and use
tax return for the same month in the previous calendar year; or
(3) 95 percent of the actual tax due.
Any additional amount of tax that is not remitted on or
before the due date for payment, must be remitted with the
return. A vendor must notify the commissioner of the option that
will be used to estimate the tax due, and must obtain approval
from the commissioner to switch to another option. If a vendor
fails to remit the actual liability or does not remit using one
of the estimate options by the due date for payment, the vendor
must remit actual liability as provided in paragraph (d) in all
subsequent periods. This paragraph does not apply to the June
sales and use liability.
Sec. 5. [297.031] [REFUND FOR TAX CONSTITUTING BAD DEBT.]
Subdivision 1. [ADOPTION OF RULES.] The commissioner may
adopt rules providing a refund of the tax paid under section
297.02 if the tax paid qualifies as a bad debt under section
166(a) of the Internal Revenue Code of 1986, as amended through
December 31, 1991.
Subd. 2. [CREDIT AGAINST TAX.] The commissioner may credit
the amount determined under this section against taxes otherwise
payable under this chapter by the taxpayer.
Subd. 3. [CLAIMS; TIME LIMIT.] Claims for refund must be
filed with the commissioner within one year of the filing date
of the taxpayer's federal income tax return containing the bad
debt deduction that is being claimed. Claimants under this
section are subject to the notice requirements of section
289A.38, subdivision 7.
Subd. 4. [ANNUAL APPROPRIATION.] There is appropriated
annually from the general fund to the commissioner the amount
necessary to make the refunds provided by this section.
Sec. 6. [297.321] [REFUND FOR TAX CONSTITUTING BAD DEBT.]
Subdivision 1. [ADOPTION OF RULES.] The commissioner may
adopt rules providing a refund of the tax paid under section
297.32 if the tax paid qualifies as a bad debt under section
166(a) of the Internal Revenue Code of 1986, as amended through
December 31, 1991.
Subd. 2. [CREDIT AGAINST TAX.] The commissioner may credit
the amount determined under this section against taxes otherwise
payable under this chapter by the taxpayer.
Subd. 3. [CLAIMS; TIME LIMIT.] Claims for refund must be
filed with the commissioner within one year of the filing date
of the taxpayer's federal income tax return containing the bad
debt deduction that is being claimed. Claimants under this
section are subject to the notice requirements of section
289A.38, subdivision 7.
Subd. 4. [ANNUAL APPROPRIATION.] There is appropriated
annually from the general fund to the commissioner the amount
necessary to make the refunds provided by this section.
Sec. 7. Minnesota Statutes 1990, section 297A.07, is
amended to read:
297A.07 [REVOCATION OF PERMITS.]
Subdivision 1. [HEARINGS.] Whenever If any person fails to
comply with any provision of sections 297A.01 to 297A.44 this
chapter or any rule of the commissioner the rules adopted under
sections 297A.01 to 297A.44 this chapter, without reasonable
cause, the commissioner, upon may schedule a hearing, after
giving the person 30 days' notice in writing specifying the time
and place of hearing and the reason for the proposed revocation
and requiring the person to show cause why the permit or permits
should not be revoked, may for reasonable cause, revoke or
suspend any one or more of the permits held by such person. The
commissioner must give the person 15 days' notice in writing,
specifying the time and place of the hearing and the reason for
the proposed revocation. The notice shall also advise the
person of the person's right to contest the revocation under
this subdivision, the general procedures for a contested case
hearing under chapter 14, and the notice requirement under
subdivision 2. The notice may be served personally or by mail
in the manner prescribed for service of notice of a deficiency
an order of assessment.
Subd. 2. [CONTESTING OF REVOCATION.] A person planning to
contest the revocation of a sales tax permit must give the
commissioner written notice of intent to do so five calendar
days before the date of the hearing. If the person does not
provide the notice and has no reasonable justification for not
doing so, or does not attend the hearing, the commissioner may
request a finding of default and recommendation for revocation
by the administrative law judge.
Subd. 3. [NEW PERMITS AFTER REVOCATION.] The commissioner
shall not issue a new permit or reinstate a revoked permit after
revocation except upon application accompanied by unless the
taxpayer applies for a permit and provides reasonable evidence
of the intention of the applicant to comply with the
aforementioned provisions sales and use tax laws and rules. The
commissioner may condition require the issuance of a new permit
to such applicant on the supplying of such to supply security,
in addition to that authorized by section 297A.28, as is
reasonably necessary to insure compliance with
the aforementioned provisions sales and use tax laws and rules.
Sec. 8. Minnesota Statutes 1991 Supplement, section
297A.135, subdivision 1, is amended to read:
Subdivision 1. [TAX IMPOSED.] A tax of $7.50 is imposed on
the lease or rental in this state on a daily or weekly basis for
not more than 28 days of a passenger automobile as defined in
section 168.011, subdivision 7, a van as defined in section
168.011, subdivision 28, or a pickup truck as defined in section
168.011, subdivision 29. The tax does not apply to the lease or
rental of a hearse or limousine used in connection with a burial
or funeral service. The tax does not apply if the term of the
lease or rental is longer than 28 days. It applies whether or
not the vehicle is licensed in the state.
Sec. 9. Minnesota Statutes 1991 Supplement, section
297A.135, is amended by adding a subdivision to read:
Subd. 4. [EXEMPTION.] The tax imposed by this section does
not apply to a lease or rental if the vehicle is to be used by
the lessee to provide a licensed taxi service.
Sec. 10. [297A.136] [TAX ON 900 PAY-PER-CALL SERVICES.]
Subdivision 1. [TAX IMPOSED.] A tax of $.50 is imposed for
each call placed to a 900 service if that service originates
from and is charged to a telephone located in this state.
Subd. 2. [DEFINITIONS.] For the purposes of this section,
"900 service" means pay-per-call 900 information services
provided through a telephone exchange, commonly accessed by
dialing 1-900, 1-960, 1-976, or other similar prefix.
Subd. 3. [PAYMENT; ADMINISTRATION.] Liability for the tax
imposed by this section is on the person making the call.
Liability for collection is on the person providing access to a
dial tone. The tax imposed in this section must be reported and
paid to the commissioner of revenue with the taxes imposed in
this chapter. It is subject to the same interest, penalty, and
other provisions provided for sales and use taxes under chapter
289A and this chapter. The commissioner has the same powers to
access and collect the tax that are given the commissioner in
chapters 270 and 289A and this chapter to assess and collect
sales and use tax.
Sec. 11. Minnesota Statutes 1990, section 297A.14,
subdivision 1, is amended to read:
Subdivision 1. [IMPOSITION.] For the privilege of using,
storing or consuming in Minnesota tangible personal property or
taxable services purchased for use, storage, or consumption in
this state, a use tax is imposed on every person in this state
at the rate of tax imposed under section 297A.02 on the sales
price of sales at retail of the items, unless the tax imposed by
section 297A.02 was paid on the sales price.
A use tax is imposed on every person who uses, stores, or
consumes tangible personal property in Minnesota which has been
manufactured, fabricated, or assembled by the person from
materials, either within or without this state, at the rate of
tax imposed under section 297A.02 on the sales price of sales at
retail of the materials contained in the tangible personal
property, unless the tax imposed by section 297A.02 was paid on
the sales price.
Sec. 12. Minnesota Statutes 1990, section 297A.15,
subdivision 5, is amended to read:
Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding the
provisions of sections section 297A.25, subdivision subdivisions
42 and 297A.257 and 50, the tax on sales of capital equipment,
and construction materials and supplies under section 297A.257
297A.25, subdivision 50, shall be imposed and collected as if
the rate under section 297A.02, subdivision 1, applied. Upon
application by the purchaser, on forms prescribed by the
commissioner, a refund equal to the reduction in the tax due as
a result of the application of the exemption under section
297A.25, subdivision 42 or 50, or 297A.257 shall be paid to the
purchaser. In the case of building materials qualifying under
section 297A.257 297A.25, subdivision 50, where the tax was paid
by a contractor, application must be made by the owner for the
sales tax paid by all the contractors, subcontractors, and
builders for the project. The application must include
sufficient information to permit the commissioner to verify the
sales tax paid for the project. The application shall include
information necessary for the commissioner initially to verify
that the purchases qualified as capital equipment under section
297A.25, subdivision 42, or capital equipment or construction
materials and supplies under section 297A.257 297A.25,
subdivision 50. No more than two applications for refunds may
be filed under this subdivision in a calendar year. No owner
may apply for a refund based on the exemption under section
297A.25, subdivision 50, before July 1, 1993. Unless otherwise
specifically provided by this subdivision, the provisions of
section 289A.40 apply to the refunds payable under this
subdivision. There is annually appropriated to the commissioner
of revenue the amount required to make the refunds.
The amount to be refunded shall bear interest at the rate
in section 270.76 from the date the refund claim is filed with
the commissioner.
Sec. 13. Minnesota Statutes 1991 Supplement, section
297A.21, subdivision 4, is amended to read:
Subd. 4. [REQUIRED REGISTRATION BY OUT-OF-STATE RETAILER
NOT MAINTAINING PLACE OF BUSINESS IN MINNESOTA.] (a) A retailer
making retail sales from outside this state to a destination
within this state and not maintaining a place of business in
this state shall file an application for a permit pursuant to
section 297A.04 and shall collect and remit the use tax as
provided in section 297A.16 if the retailer engages in the
regular or systematic soliciting of sales from potential
customers in this state by:
(1) the distribution, by mail or otherwise, without regard
to the state from which such distribution originated or in which
the materials were prepared, of catalogs, periodicals,
advertising flyers, or other written solicitations of business
to customers in this state;
(2) display of advertisements on billboards or other
outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals
the circulation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national or
regional publication or a limited regional edition in which this
state is included of a broader regional or national publication
which are not placed in other geographically defined editions of
the same issue of the same publication;
(6) advertisements in regional or national publications in
an edition which is not by its contents geographically targeted
to Minnesota but which is sold over the counter in Minnesota or
by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television
station located in Minnesota; or
(8) any other solicitation by telegraphy, telephone,
computer data base, cable, optic, microwave, or other
communication system.
(b) The location within or without this state of vendors
independent of the retailer which provide products or services
to the retailer in connection with its solicitation of customers
within this state, including such products and services as
creation of copy, printing, distribution, and recording, is not
to be taken into account in the determination of whether the
retailer is required to collect use tax. Paragraph (a) shall be
construed without regard to the state from which distribution of
the materials originated or in which they were prepared.
(c) A retailer not maintaining a place of business in this
state shall be presumed, subject to rebuttal, to be engaged in
regular solicitation within this state if it engages in any of
the activities in paragraph (a) and (1) makes 100 or more retail
sales from outside this state to destinations within this state
during a period of 12 consecutive months, or (2) makes ten or
more retail sales totaling more than $100,000 from outside this
state to destinations within this state during a period of 12
consecutive months.
(d) A retailer not maintaining a place of business in this
state shall not be required to collect use tax imposed by any
local governmental unit or subdivision of this state and this
section does not subject such a retailer to any regulation of
any local unit of government or subdivision of this state. This
paragraph does not apply to the tax imposed under section
297A.021.
Sec. 14. Minnesota Statutes 1990, section 297A.25,
subdivision 7, is amended to read:
Subd. 7. [PETROLEUM PRODUCTS.] The gross receipts from the
sale of and storage, use or consumption of the following
petroleum products are exempt:
(1) products upon which a tax has been imposed and paid
under the provisions of chapter 296, and no refund has been or
will be allowed because the buyer used the fuel for nonhighway
use, or
(2) products which are used in the improvement of
agricultural land by constructing, maintaining, and repairing
drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures; or
(3) products purchased by a transit system receiving
financial assistance under section 174.24 or 473.384.
Sec. 15. Minnesota Statutes 1990, section 297A.25,
subdivision 11, is amended to read:
Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from
all sales, including sales in which title is retained by a
seller or a vendor or is assigned to a third party under an
installment sale or lease purchase agreement under section
465.71, of tangible personal property to, and all storage, use
or consumption of such property by, the United States and its
agencies and instrumentalities, the University of Minnesota,
state universities, community colleges, technical colleges,
state academies, the Minnesota center for arts education, and
political subdivisions of the state school districts are exempt.
As used in this subdivision, "school districts" means public
school entities and districts of every kind and nature organized
under the laws of the state of Minnesota, including, without
limitation, school districts, intermediate school districts,
education districts, educational cooperative service units,
secondary vocational cooperative centers, special education
cooperatives, joint purchasing cooperatives, telecommunication
cooperatives, regional management information centers, technical
colleges, joint vocational technical districts, and any
instrumentality of a school district, as defined in section
471.59. Sales exempted by this subdivision include sales under
section 297A.01, subdivision 3, paragraph (f), but do not
include sales under section 297A.01, subdivision 3, paragraph
(j), clause (vii). Sales to hospitals and nursing homes owned
and operated by political subdivisions of the state are exempt
under this subdivision. The sales to and exclusively for the
use of libraries, as defined in section 134.001, of books,
periodicals, audio-visual materials and equipment, photocopiers
for use by the public, and all cataloging and circulation
equipment, and cataloging and circulation software for library
use are exempt under this subdivision. Sales of supplies and
equipment used in the operation of an ambulance service owned
and operated by a political subdivision of the state are exempt
under this subdivision provided that the supplies and equipment
are used in the course of providing medical care; motor vehicle
parts are not exempt under this provision. This exemption shall
not apply to building, construction or reconstruction materials
purchased by a contractor or a subcontractor as a part of a
lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the
construction, alteration, or repair of a building or facility.
This exemption does not apply to construction materials
purchased by tax exempt entities or their contractors to be used
in constructing buildings or facilities which will not be used
principally by the tax exempt entities. This exemption does not
apply to the leasing of a motor vehicle as defined in section
297B.01, subdivision 5, except for leases entered into by the
United States or its agencies or instrumentalities. The tax
imposed on sales to political subdivisions of the state under
this section applies to all political subdivisions other than
those explicitly exempted under this subdivision,
notwithstanding sections 115A.69, subdivision 6, 116A.25,
360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2,
469.127, 473.394, 473.448, 473.545, or 473.608 or any other law
to the contrary enacted before 1992.
Sec. 16. Minnesota Statutes 1991 Supplement, section
297A.25, subdivision 12, as amended by Laws 1992, chapter 363,
article 1, section 19, subdivision 1, is amended to read:
Subd. 12. [OCCASIONAL SALES.] (a) The gross receipts from
the isolated or occasional sale of tangible personal property in
Minnesota not made in the normal course of business of selling
that kind of property, and the storage, use, or consumption of
property acquired as a result of such a sale are exempt.
(b) This exemption does not apply to sales of tangible
personal property primarily used in a trade or business unless
(1) the sale occurs in a transaction subject to or described in
section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731,
1031, or 1033 of the Internal Revenue Code of 1986, as amended
through December 31, 1990; (2) the sale is between members of an
affiliated a controlled group as defined in section
1504(a) 1563(a) of the Internal Revenue Code of 1986, as amended
through December 31, 1990; (3) the sale is a sale of farm
machinery; (4) the sale is a farm auction sale; or (5) the sale
is a sale of substantially all of the assets of a trade or
business conducted by an individual or by a partnership all of
the partners of which are individuals; or (6) the total amount
of gross receipts from the sale of trade or business property
made during the calendar month of the sale and the preceding 11
calendar months does not exceed $1,000.
(c) For purposes of this subdivision, the following terms
have the meanings given.
(1) A "farm auction" is a public auction conducted by a
licensed auctioneer if substantially all of the property sold
consists of property used in the trade or business of farming
and property not used primarily in a trade or business.
(2) "Trade or business" includes the assets of a separate
division, branch, or identifiable segment of a trade or business
if, before the sale, the income and expenses attributable to the
separate division, branch, or identifiable segment could be
separately ascertained from the books of account or record (the
lease or rental of an identifiable segment does not qualify for
the exemption).
(3) A "sale of substantially all of the assets of a trade
or business" must occur as a single transaction or a series of
related transactions occurring within the 12-month period
beginning on the date of the first sale of assets intended to
qualify for the exemption provided in paragraph (b), clause (5).
Sec. 17. Minnesota Statutes 1990, section 297A.25,
subdivision 24, is amended to read:
Subd. 24. [NONPROFIT TICKETS OR ADMISSIONS.] The gross
receipts from the sale or use of tickets or admissions to the
premises of or events sponsored by an association, corporation
or other group of persons which provides an opportunity for
citizens of the state to participate in the creation,
performance or appreciation of the arts and which either (1)
qualifies as a tax-exempt organization within the meaning of
Minnesota Statutes 1980, section 290.05, subdivision 1, clause
(i), or (2) is a municipal board that promotes cultural and arts
activities are exempt. The exemption provided with respect to a
municipal board applies only to tickets and admissions to events
sponsored by the board.
Sec. 18. Minnesota Statutes 1990, section 297A.25,
subdivision 34, is amended to read:
Subd. 34. [MOTOR VEHICLES.] The gross receipts from the
sale or use of any motor vehicle taxable under the provisions of
the motor vehicle excise tax laws of Minnesota shall be exempt
from taxation under this chapter. Notwithstanding section
297A.25, subdivision 11, the exemption provided under this
subdivision remains in effect for motor vehicles purchased by
political subdivisions of the state if the vehicles are not
subject to taxation under chapter 297B.
Sec. 19. Minnesota Statutes 1990, section 297A.25,
subdivision 45, is amended to read:
Subd. 45. [SHIPS USED IN INTERSTATE COMMERCE.] The gross
receipts from sales of, and use, storage, or consumption of:
(1) repair, replacement, and rebuilding parts and
materials, and lubricants, for ships or vessels used or to be
used principally in interstate or foreign commerce; and
(2) vessels with a gross registered tonnage of at least
3,000 tons are exempt.
Sec. 20. Minnesota Statutes 1990, section 297A.25, is
amended by adding a subdivision to read:
Subd. 47. [PHOTOVOLTAIC DEVICES.] The gross receipts from
the sale of photovoltaic devices, as defined in section 216C.06,
subdivision 13, and the materials used to install, construct,
repair, or replace them are exempt if the devices are used as an
electric power source.
Sec. 21. Minnesota Statutes 1990, section 297A.25, is
amended by adding a subdivision to read:
Subd. 48. [WIND ENERGY CONVERSION SYSTEMS.] The gross
receipts from the sale of wind energy conversion systems, as
defined in section 216C.06, subdivision 12, and the materials
used to manufacture, install, construct, repair, or replace them
are exempt if the systems are used as an electric power source.
Sec. 22. Minnesota Statutes 1990, section 297A.25, is
amended by adding a subdivision to read:
Subd. 49. [AIR COOLING EQUIPMENT.] The gross receipts from
the sale of equipment used for air cooling are exempt, if the
equipment is purchased for conversion or replacement of an
existing groundwater based once-through cooling system as
required under section 103G.271, subdivision 5.
Sec. 23. Minnesota Statutes 1990, section 297A.25, is
amended by adding a subdivision to read:
Subd. 50. [CONSTRUCTION MATERIALS FOR RECYCLING
FACILITIES.] Construction materials and supplies are exempt from
the tax imposed under this chapter, regardless of whether
purchased by the owner or a contractor, subcontractor, or
builder, if:
(1) the materials and supplies are used or consumed in
constructing a new facility which reduces the flow of solid
waste by creating a market for recycled office waste;
(2) the recycling process produces pulp or paper from
high-grade office waste; and
(3) the total capital investment made within a four-year
period for construction of the facility exceeds $50,000,000.
Sec. 24. [297A.46] [LOCAL GOVERNMENTS EXEMPT FROM LOCAL
SALES TAXES.]
Notwithstanding any other law, ordinance, or charter
provision, no political subdivision of the state shall be
required to pay any general sales tax imposed by a political
subdivision of the state. This provision does not apply to the
local option tax under section 297A.021.
Sec. 25. [297A.47] [REPORTING OF SALES TAX ON MINNESOTA
GOVERNMENTS.]
The commissioner shall estimate the amount of revenues
derived from imposing the tax under this chapter and chapter
297B on state agencies and political subdivisions for each
fiscal year and shall report this amount to the commissioner of
finance before the time for filing reports for the fiscal year
with the United States Department of Commerce. The commissioner
of finance in reporting the sales and motor vehicle excise tax
collections to the United States Department of Commerce shall
exclude this amount from the sales and motor vehicle
collections. Sales and motor vehicle excise tax revenues
received from political subdivisions must be reported as
intergovernmental grants or similar intergovernmental revenue.
The amount of the sales and motor vehicle excise tax paid by
state agencies must be reported as reduced state expenditures.
Sec. 26. Minnesota Statutes 1990, section 297B.01,
subdivision 8, is amended to read:
Subd. 8. "Purchase price" means the total consideration
valued in money for a sale, whether paid in money or otherwise,
provided however, that when a motor vehicle is taken in trade as
a credit or as part payment on a motor vehicle taxable under
Laws 1971, chapter 853, the credit or trade-in value allowed by
the person selling the motor vehicle shall be deducted from the
total selling price to establish the purchase price of the
vehicle being sold and the trade-in allowance allowed by the
seller shall constitute the purchase price of the motor vehicle
accepted as a trade-in. The purchase price in those instances
where the motor vehicle is acquired by gift or by any other
transfer for a nominal or no monetary consideration shall also
include the average value of similar motor vehicles, established
by standards and guides as determined by the motor vehicle
registrar. The purchase price in those instances where a motor
vehicle is manufactured by a person who registers it under the
laws of this state shall mean the manufactured cost of such
motor vehicle and manufactured cost shall mean the amount
expended for materials, labor and other properly allocable costs
of manufacture, except that in the absence of actual
expenditures for the manufacture of a part or all of the motor
vehicle, manufactured costs shall mean the reasonable value of
the completed motor vehicle.
The term "purchase price" shall not include the portion of
the value of a motor vehicle due solely to modifications
necessary to make the motor vehicle handicapped accessible. The
term "purchase price" shall not include the transfer of a motor
vehicle by way of gift between a husband and wife or parent and
child, nor shall it include the transfer of a motor vehicle by a
guardian to a ward when there is no monetary consideration and
the title to such vehicle was registered in the name of the
guardian, as guardian, only because the ward was a minor. There
shall not be included in "purchase price" the amount of any tax
imposed by the United States upon or with respect to retail
sales whether imposed upon the retailer or the consumer.
Sec. 27. [ROSEVILLE LODGING TAX.]
Subdivision 1. [TAX AUTHORIZED; USE OF REVENUES.]
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.
Subd. 2. [REFERENDUM.] If the city intends to impose the
tax authorized by this section, it shall conduct a referendum on
the issue. The question of imposing the tax must be submitted
to the voters at a general election. The tax may not be imposed
unless a majority of votes cast on the question of imposing the
tax 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 general election
before December 1, 1992. This subdivision applies
notwithstanding any city charter provision to the contrary.
Sec. 28. [OCCASIONAL SALES; RETROACTIVE DATE; REFUNDS.]
No refunds of tax may be paid due to the retroactive
effective date of section 16 except as provided in this section.
A purchaser must file a claim for refund containing the
information required in Minnesota Statutes, section 289A.50 and
any other information required by the commissioner, including
receipts or other proof of payment. A purchaser is considered a
taxpayer for purposes of section 289A.50. Notwithstanding
section 289A.50, subdivision 2, a vendor who has collected a tax
from the purchaser may not claim a refund under this section.
Sec. 29. [COMMISSIONER OF REVENUE; TEMPORARY POWERS.]
Subdivision 1. [APPLICABILITY.] This section gives the
commissioner of revenue certain temporary powers. These powers
apply only to taxes imposed under Minnesota Statutes, chapter
297A, and local taxes administered by the commissioner under
Minnesota Statutes, chapters 289A and 297A.
Subd. 2. [PAYMENT OF TAXES.] The commissioner may
establish additional due dates, applicable to certain groups of
taxpayers, for the payment of taxes. Unless the commissioner
has the written consent of the taxpayer, the additional payment
dates must not require the taxpayer to pay the tax earlier than
the payment dates now provided by statute or rule. The
commissioner may accept various forms of payment, including, but
not limited to, financial transaction cards and electronic funds
transfer.
Subd. 3. [FILING OF RETURN.] The commissioner may
establish additional dates, applicable to certain groups of
taxpayers, for the filing of tax returns. Unless the
commissioner has the written consent of the taxpayer, the return
due date must not be earlier than the due date now provided by
statute or rule. In conducting pilot studies, the commissioner
may use tax return forms with varying formats, accept electronic
filed returns, and waive the taxpayer signature requirements.
Subd. 4. [AGREEMENTS.] The commissioner may enter written
agreements with taxpayers that provide for the payment of taxes
or the filing of returns at dates earlier than now provided by
statute or rule. The commissioner and the taxpayer may also
agree in writing to other changes from the statutory or rule
requirements related to the administration of these taxes. If
the taxpayer agrees to pay taxes at a date earlier than provided
by statute, the commissioner may negotiate payments to the
taxpayer to compensate in part or in full for the loss incurred
as a result of the accelerated payment. Included under this
authority, the commissioner may agree to let the taxpayer keep a
percentage of the taxes collected.
Subd. 5. [PERMITS; APPLICATION; REVOCATION.] The
commissioner may establish procedures for the issuance, renewal,
revocation, and cancellation of sales tax permits. These
procedures may change the permit application process, establish
permit renewal procedures and timeframes, and alter the sales
and use tax permit revocation process. These procedures must
not impair the statutory due process rights of the taxpayer,
except with the taxpayer's consent.
Subd. 6. [PROCEDURE; APPROVAL.] Pilot studies proposed
under these authorities must be presented to the chairs of the
house of representatives tax committee and the senate committee
on taxes and tax laws. No study may be undertaken without the
approval of both chairs. If either chair fails to respond
within 15 days after the proposal is presented, that chair is
considered to have approved the study. If the study is
approved, the commissioner will initially seek participation on
a voluntary basis from within the targeted taxpayer group.
Subd. 7. [ADMINISTRATIVE PROCEDURES ACT.] The powers
granted under this section are not subject to the provisions of
Minnesota Statutes, chapter 14.
Subd. 8. [EXPIRATION DATE.] This section expires June 30,
1994. Within 90 days following the expiration date, the
commissioner will prepare a report on this study for
presentation to the chairs of the house of representatives tax
committee and the senate committee on taxes and tax laws.
Sec. 30. [BROOKLYN CENTER; LOCAL LIQUOR AND RESTAURANT
TAX.]
Subdivision 1. [AUTHORIZATION.] Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, the city of
Brooklyn Center may by ordinance, impose a tax of one percent on
the gross receipts on (1) retail on-sales of intoxicating liquor
and fermented malt beverages when sold at licensed on-sale
liquor establishments and municipal liquor stores within the
city, and (2) all sales of food primarily for consumption on or
off the premises by restaurants and places of refreshment within
the city.
Subd. 2. [USE OF REVENUES.] Revenues received from taxes
authorized under subdivision 1 must be used by the city to pay
the cost of collecting the tax and to fund approved housing
projects. Residents of at least 75 percent of any rental units
and 100 percent of any homeownership units constructed or
rehabilitated with revenues received under this section, must
have incomes that are at or below 80 percent of the area median
family income, adjusted for family size, as determined by the
department of housing and urban development. Resident income
shall be determined at the time of occupancy. For the purposes
of this section "housing project" shall have the meaning defined
in Minnesota Statutes, section 469.002.
Subd. 3. [REFERENDUM.] If the Brooklyn Center city council
intends to impose the liquor and restaurant tax authorized by
this section, it shall conduct a referendum on the issue. The
question of imposing the tax must be submitted to the voters at
a general election. The tax may not be imposed unless a
majority of votes cast on the question of imposing the tax 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 general election before December 1,
1992. This subdivision applies notwithstanding any city charter
provision to the contrary.
Subd. 4. [COLLECTION.] The city may agree with the
commissioner of revenue that a tax imposed pursuant to 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. By July 1, 1992, the commissioner of revenue shall
provide to the city council an estimate of the cost of
collection.
Subd. 5. [LOCAL APPROVAL.] This section is effective upon
compliance by the governing body of the city of Brooklyn Center
with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 31. [CITY OF ELY; SALES TAX.]
Subdivision 1. [SALES TAX AUTHORIZED.] Notwithstanding
Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, the city of Ely
may, by ordinance, impose an additional sales tax of up to one
percent on sales transactions taxable pursuant to Minnesota
Statutes, chapter 297A, that occur within the city.
Subd. 2. [EXCISE TAX.] Notwithstanding Minnesota Statutes,
section 477A.016, or any other contrary provision of law,
ordinance, or city charter, the city of Ely may by ordinance
impose an excise tax of up to $20 per motor vehicle, as defined
by ordinance, purchased or acquired from any person engaged
within the city in the business of selling motor vehicles at
retail.
Subd. 3. [USE OF REVENUES.] Revenues received from taxes
authorized by subdivisions 1 and 2 must be used by the city to
pay the cost of collecting the tax and to pay all or a portion
of the expenses of constructing, operating, promoting, and
developing of facilities as part of a community revitalization
project in Ely known as the Ely Wilderness Gateway project.
Authorized expenses include, but are not limited to, acquiring
property and paying relocation expenses related to the
development of the Wilderness Gateway project and related
facilities, securing or paying debt service on bonds or other
obligations issued to finance the construction of Wilderness
Gateway and related facilities, operating expenses of facilities
and attractions, and operations to promote and develop the
project as described in a strategic plan approved under section
8. For purposes of this section, "Ely Wilderness Gateway and
related facilities" means a convention center, amphitheater,
interpretive center, Gateway linkage facility, exhibits and
program components, furnishings and equipment, tourist center,
cottage industry center, wildlife enclosures, tourist
attractions, museum, educational facilities, and links to
municipal campgrounds and all publicly owned real or personal
property adjacent to the project area that the governing body of
the city determines will be necessary to facilitate the use of
these facilities, including but not limited to parking, skyways,
pedestrian bridges, lighting, educational and recreational
trails, and landscaping. The total capital, administrative, and
operating expenditures payable from bond proceeds and revenues
shall not exceed $20,000,000 for Ely Wilderness Gateway and
related facilities.
Subd. 4. [EXPIRATION OF TAXING AUTHORITY AND EXPENDITURE
LIMITATION.] The taxes imposed under subdivisions 1 and 2 shall
terminate on the first day of the second month next succeeding a
determination by the city council that sufficient funds have
been received from the taxes and bond proceeds to finance
capital, administrative, and operating costs of $20,000,000 for
the Ely Wilderness Gateway and related facilities and to prepay
or retire at maturity the principal, interest, and premium due
on any bonds issued for the improvements. Any funds remaining
after completion of the improvements and retirement or
redemption of the bonds may be placed in the general fund of the
city.
Subd. 5. [BONDS.] The city of Ely may issue general
obligation bonds of the city in an amount not to exceed
$20,000,000 for Ely Wilderness Gateway and related facilities,
without election under Minnesota Statutes, chapter 475, on the
question of issuance of the bonds or a property tax to pay
them. The debt represented by bonds issued for Ely Wilderness
Gateway and related facilities shall not be included in
computing any debt limitations applicable to the city of Ely,
and the levy of taxes required by Minnesota Statutes, section
475.61, to pay principal of and interest on the bonds shall not
be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city.
Subd. 6. [REFERENDUM.] If the Ely city council intends to
impose the sales and excise taxes authorized by this section, it
shall conduct a referendum on the issue. The question of
imposing the tax must be submitted to the voters at a general
election. The tax may not be imposed unless a majority of votes
cast on the question of imposing the tax 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 general election before December 1,
1992. This subdivision applies notwithstanding any city charter
provision to the contrary.
Subd. 7. [ENFORCEMENT; COLLECTION; ADMINISTRATION OF
TAXES.] A sales tax imposed under this section must be reported
and paid to the commissioner of revenue with the state sales
taxes, and be subject to the same penalties, interest, and
enforcement provisions. The proceeds of the tax, less refunds
and a proportionate share of the cost of collection, shall be
remitted at least quarterly to the city. The commissioner shall
deduct from the proceeds remitted an amount that equals the
indirect statewide cost as well as the direct and indirect
department costs necessary to administer, audit, and collect the
tax. By July 1, 1992, the commissioner of revenue shall provide
to the city council an estimate of these costs.
Subd. 8. [APPROVAL OF PLANS.] A nine-member citizens
committee is established. The committee shall review and, by
majority vote, approve or reject strategic plans relating to the
Ely Wilderness Gateway for the city of Ely. The committee shall
be appointed by the Ely city council as provided under Minnesota
Statutes, section 15.059, subdivisions 2 and 4. The committee
shall be composed of two members of the Ely chamber of commerce,
two members of the Ely area tourist board, two members of the
Ely area development council, two members of the Ely city
council, and one representative of a joint powers agreement
between Ely and another local government.
Subd. 9. [EFFECTIVE DATE.] This section is effective the
day after final enactment.
Sec. 32. [CITY OF THIEF RIVER FALLS; SALES TAX.]
Subdivision 1. [SALES TAX AUTHORIZED.] Notwithstanding
Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, the city of Thief
River Falls may, by ordinance, impose an additional sales tax of
up to one-half of one percent on sales transactions taxable
pursuant to Minnesota Statutes, chapter 297A, that occur within
the city except for sales of major farm equipment subject to the
tax under subdivision 2.
Subd. 2. [EXCISE TAX.] Notwithstanding Minnesota Statutes,
section 477A.016, or any other contrary provision of law,
ordinance, or city charter, the city of Thief River Falls may by
ordinance impose an excise tax of up to $20 per motor vehicle,
as defined by ordinance, purchased or acquired from any person
engaged within the city in the business of selling motor
vehicles at retail, and an excise tax of up to $20 per piece of
major farm equipment, as defined by ordinance, purchased or
acquired from any person engaged within the city in the business
of selling major farm equipment at retail.
Subd. 3. [USE OF REVENUES.] Revenues received from taxes
authorized by subdivisions 1 and 2 must be used by the city to
pay the cost of collecting the tax and to pay all or a portion
of the expenses of constructing, operating, promoting, and
developing of facilities as part of a community revitalization
project in Thief River Falls known as the Area
Tourism-Convention Facilities. Authorized expenses include, but
are not limited to, acquiring property and paying relocation
expenses related to the development of the Area
Tourism-Convention Facilities, securing or paying debt service
on bonds or other obligations issued to finance the construction
of the Area Tourism-Convention Facilities, operating expenses of
facilities and attractions, and operations to promote and
develop the project as described in a strategic plan approved
under subdivision 8. For purposes of this section, "Area
Tourism-Convention Facilities" means convention facilities,
rivers' beautification and reservoir management, tourist park
expansion, River Walk facilities, and Depot acquisition and
preservation. The total capital, administrative, and operating
expenditures payable from bond proceeds and revenues shall not
exceed $15,000,000 for the Thief River Falls Area
Tourism-Convention Facilities.
Subd. 4. [EXPIRATION OF TAXING AUTHORITY AND EXPENDITURE
LIMITATION.] The taxes imposed under subdivisions 1 and 2 shall
terminate on the first day of the second month next succeeding a
determination by the city council that sufficient funds have
been received from the taxes to finance capital, administrative,
and operating costs of $15,000,000 for the Area
Tourism-Convention Facilities and to prepay or retire at
maturity the principal, interest, and premium due on any bonds
issued for the improvements. Any funds remaining after
completion of the improvements and retirement or redemption of
the bonds may be placed in the general fund of the city. The
taxes imposed under subdivisions 1 and 2 may expire at an
earlier time if the city, by ordinance, so determines, provided
that sufficient funds have been received to finance obligations
already incurred for the Area Tourism-Convention Facilities.
Subd. 5. [BONDS.] The city of Thief River Falls may issue
general obligation bonds of the city in an amount not to exceed
$15,000,000 for the Area Tourism-Convention Facilities, without
election under Minnesota Statutes, chapter 475, on the question
of issuance of the bonds or a property tax to pay them. The
debt represented by bonds issued for the Area Tourism-Convention
Facilities shall not be included in computing any debt
limitations applicable to the city of Thief River Falls, and the
levy of taxes required by Minnesota Statutes, section 475.61, to
pay principal of and interest on the bonds shall not be subject
to any levy limitation or be included in computing or applying
any levy limitation applicable to the city.
Subd. 6. [REFERENDUM.] If the Thief River Falls city
council intends to impose the sales and excise taxes authorized
by this section, it shall conduct a referendum on the issue.
The question of imposing the tax must be submitted to the voters
at a general election. The tax may not be imposed unless a
majority of votes cast on the question of imposing the tax 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 general election before December 1,
1992. This subdivision applies notwithstanding any city charter
provision to the contrary.
Subd. 7. [ENFORCEMENT; COLLECTION; ADMINISTRATION OF
TAXES.] A sales tax imposed under this section must be reported
and paid to the commissioner of revenue with the state sales
taxes, and be subject to the same penalties, interest, and
enforcement provisions. The proceeds of the tax, less refunds
and a proportionate share of the cost of collection, shall be
remitted at least quarterly to the city. The commissioner shall
deduct from the proceeds remitted an amount that equals the
indirect statewide cost as well as the direct and indirect
department costs necessary to administer, audit, and collect the
tax. By July 1, 1992, the commissioner of revenue shall provide
to the city council an estimate of these costs.
Subd. 8. [APPROVAL OF PLANS.] A representative, advisory
citizens committee of not less than nine members is
established. The committee shall review and, by majority vote,
approve or reject strategic plans relating to the Area
Tourism-Convention Facilities of Thief River Falls. The
committee shall be appointed by the Thief River Falls city
council as provided under Minnesota Statutes, section 15.059,
subdivisions 2 and 4. The committee shall be composed of
persons representative of the area.
Subd. 9. [EFFECTIVE DATE.] This section is effective the
day after final enactment.
Sec. 33. [CITY OF ROCHESTER; TAXES.]
Subdivision 1. [SALES AND USE TAXES AUTHORIZED.]
Notwithstanding Minnesota Statutes, section 477A.016, or any
other contrary provision of law, ordinance, or city charter, the
city of Rochester may, by ordinance, impose an additional sales
tax of up to one-half of one percent on sales transactions
taxable under Minnesota Statutes, chapter 297A, that occur
within the city and may also, by ordinance, impose an additional
compensating use tax of up to one-half of one percent on uses of
property within the city, the sale of which would be subject to
the additional sales tax but for the fact that the property was
sold outside the city.
Subd. 2. [EXCISE TAX AUTHORIZED.] Notwithstanding
Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, the city of
Rochester may, by ordinance, impose an excise tax of up to $20
per motor vehicle, as defined by ordinance, purchased or
acquired from any person engaged within the city in the business
of selling motor vehicles at retail.
Subd. 3. [COLLECTION.] The commissioner of revenue may
enter into appropriate agreements with the city of Rochester to
provide for collection by the state on behalf of the city of a
tax imposed by the city of Rochester pursuant to subdivision 1
or 2. The commissioner may charge the city of Rochester from
the proceeds of any tax a reasonable fee for its collection. By
July 1, 1992, the commissioner of revenue shall provide the city
council an estimate of the fee.
Subd. 4. [ALLOCATION OF REVENUES.] Revenues received from
taxes authorized by subdivisions 1 and 2 must be used to pay the
costs of collecting the taxes, capital and administrative costs
of capital improvements for fire station, city hall, and public
library facilities for which the city voters at the general
election held on November 6, 1990, approved the issuance of
general obligation bonds, and to pay debt service on the bonds.
The total capital and administrative expenditures payable from
bond proceeds and revenues received from the taxes authorized by
subdivisions 1 and 2, excluding investment earnings thereon,
shall not exceed $28,760,000 for the several purposes.
Subd. 5. [TERMINATION OF TAXES.] The taxes imposed
pursuant to subdivisions 1 and 2 shall terminate on the first
day of the second month next succeeding a determination by the
city council that sufficient funds have been received from the
taxes to finance capital and administrative costs of $28,760,000
for improvements for fire station, city hall, and public library
facilities and to prepay or retire at maturity the principal,
interest, and premium due on any bonds issued for the
improvements. Any funds remaining after completion of the
improvements and retirement or redemption of the bonds may be
placed in the general fund of the city.
Subd. 6. [BONDS.] The city of Rochester, pursuant to the
approval of the city voters at the general election held on
November 6, 1990, may issue general obligation bonds of the city
in an amount not to exceed $28,760,000 for fire station, city
hall, and public library facilities. The debt represented by
the bonds shall not be included in computing any debt limitation
applicable to the city, and the levy of taxes required by
Minnesota Statutes, section 475.61, to pay the principal of and
interest on the bonds shall not be subject to any levy
limitation or be included in computing or applying any levy
limitation applicable to the city. The amount of any special
levy for debt service for payment of principal and interest on
the bonds shall not include the amount of estimated collection
of revenues from the taxes imposed pursuant to subdivisions 1
and 2 that are pledged for the payment of those obligations.
Subd. 7. [EFFECTIVE DATE.] This section is effective the
day after compliance by the governing body of the city of
Rochester with Minnesota Statutes, section 645.021, subdivision
3.
Sec. 34. [CITY OF MINNEAPOLIS; NEIGHBORHOOD EARLY LEARNING
CENTER.]
Subdivision 1. [CENTERS.] A neighborhood early learning
center provides programs to promote the physical, emotional, and
social development of all children residing in the city of
Minneapolis from birth until ready to enter first grade. A
center may include:
(1) way to grow school readiness programs as defined in
Minnesota Statutes, section 145.926;
(2) Head Start and other preschool programs;
(3) kindergarten and related programs; and
(4) other family support and child development activities
which strengthen the capacity of a family to give birth to and
successfully nurture healthy children.
A center shall be located as close as possible to the
families and children it serves and may be housed in one
structure or in structures in close proximity to each other. A
center may be owned by any private or public entity other than
the board established under subdivision 2.
Subd. 2. [CREATION OF BOARD.] Special school district No.
1 and the city of Minneapolis may establish a neighborhood early
learning board under Minnesota Statutes, section 471.59, to
create, manage, and operate neighborhood early learning centers
on the terms and conditions agreed to by the district and the
city. The Minneapolis youth coordinating board established
under Laws 1985, chapter 91, may serve as the neighborhood early
learning board provided that the governing bodies of special
school district No. 1 and the city of Minneapolis, together with
the youth coordinating board, adopt resolutions designating the
youth coordinating board as the neighborhood early learning
board under the authority of this section. If an existing board
ceases to function, and in the absence of a new joint powers
agreement creating a new board, an interim joint powers board
shall govern. The interim board shall consist of five members,
two of whom shall be selected by resolution of the governing
body of special school district No. 1, two of whom shall be
selected by resolution of the city council of the city of
Minneapolis, and one of whom shall be selected by the mayor with
the approval of the city council. Persons selected to serve may
be elected officials from their respective bodies. Any interim
board shall elect its own officers and shall serve until a new
joint powers agreement establishes a new board.
Subd. 3. [POWERS.] The neighborhood early learning board
is authorized to:
(1) manage and operate and acquire leasehold interests in
neighborhood early learning centers, and all leasehold interests
in centers shall be vested in the board or in another
governmental unit as may be designated by the board;
(2) employ permanent or temporary employees as it may
require, and determine their qualifications, duties, and
compensation;
(3) use the services of the participating local public
bodies and of other political subdivisions or public bodies
whose jurisdiction includes all or a part of the area of the
city of Minneapolis;
(4) sublease space or assign any of its leasehold interests
to any public or private entity in connection with the programs
described in subdivision 1;
(5) develop criteria and request proposals for the
provision of services described in subdivision 1, clauses (2)
and (3), by private entities which propose to provide these
services to less than 100 children at any one location, and
provide financial assistance to those private entities for the
costs of managing and operating a facility and providing these
services;
(6) receive funds or other assistance from both private and
public sources; and
(7) take other action as it deems necessary or useful to
carry out its responsibilities under this section.
The board shall not exercise any control over the content
or curriculum of Head Start or any programs operated by special
school district No. 1. The board shall expend a portion of the
operating funds received by it from the city and the school
district on the services provided under clause (5).
Subd. 4. [SUPPORT BY PARTICIPANTS AND OTHER PUBLIC
BODIES.] The city of Minneapolis and special school district No.
1 are authorized to appropriate money to the board, to the
Minneapolis community development agency, or to each other, for
use in connection with neighborhood early learning centers and
facilities described in subdivision 3, clause (5), and to
undertake activities in support of the purposes of the board,
including the acquisition, construction, equipping, and
improving of neighborhood early learning centers. Any
appropriations may be subject to any conditions that the
appropriating entity may establish. Other political
subdivisions and public bodies whose jurisdictions include all
or a part of the city of Minneapolis, including the Minneapolis
community development agency, are authorized to exercise any of
their powers for the purposes for which the board may act and to
acquire, construct, provide facilities for, and equip
neighborhood early learning centers on behalf of the city or
special school district No. 1. Any appropriations may be
subject to the conditions that the appropriating entity may
establish. Notwithstanding any limitations in Laws 1986,
chapter 396, the city of Minneapolis may appropriate the
proceeds of sales and use taxes collected or received by the
city under Laws 1986, chapter 396, section 4, to the board or
otherwise expend the funds in support of the board's purposes,
provided that the appropriation is limited to the amount of
revenue accruing to the city as a result of the advance
refunding of bonds issued under Laws 1986, chapter 396.
Neighborhood early learning centers shall be an authorized use
of the tax revenues under Laws 1986, chapter 396.
Sec. 35. [MINNEAPOLIS TEACHERS RETIREMENT; COMMITTEE TO
RECOMMEND FUNDING METHOD.]
Subdivision 1. [CREATION; PURPOSE.] An advisory committee
is created for the purpose of recommending to the legislative
commission on pensions and retirement a method of funding the
unfunded actuarial accrued liability of the Minneapolis teachers
retirement fund association. The committee shall consider:
(1) the feasibility of the use of the convention center
sales taxes to reduce the unfunded liability; and
(2) other possible options and sources of funding.
Subd. 2. [MEMBERSHIP.] The membership of the advisory
committee shall be as follows: the mayor of Minneapolis, one
member of the house of representatives who represents the city
of Minneapolis to be appointed by the speaker of the house, one
member of the senate who represents the city of Minneapolis to
be appointed by the subcommittee on committees of the senate
committee on rules and administration, the chair of special
school district No. 1 or a member of the school board designated
by the chair, the president of the Minneapolis city council or a
member of the city council designated by the president, the
president of the Minneapolis federation of teachers and one
teacher currently employed by special school district No. 1
appointed by the president of the Minneapolis federation of
teachers, the executive director and either one member of the
board of directors of the Minneapolis teachers retirement fund
association or one retiree of the fund appointed by the board,
and the commissioner of finance or the commissioner's designee.
The legislative members shall be co-chairs of the committee.
Subd. 3. [OPERATION OF COMMITTEE.] The advisory committee
shall make its recommendations by February 1, 1993, and shall
terminate after the recommendations have been made. No per diem
or expense reimbursements shall be paid to members of the
committee. The actuary employed by the legislative pension
commission shall provide information upon request of a chair of
the committee.
Subd. 4. [LOCAL APPROVAL.] This section is effective the
day following final enactment, after compliance with Minnesota
Statutes, section 645.021, subdivision 3, by the city council of
the city of Minneapolis, and the board of special school
district No. 1.
Sec. 36. Laws 1953, chapter 560, section 2, subdivision 3,
is amended to read:
Subd. 3. [TAX ORDINANCE; AMENDMENT, REPEAL.] An ordinance
adopted as heretofore provided in this act may be repealed or
amended in the following manner: A petition signed by not less
than two thousand (2,000) qualified electors of the city
demanding repeal of the ordinance shall be filed with the
clerk. The petition shall identify the ordinance to be repealed
by title, date of adoption and subject matter. The signatures
to the petition need not all be appended to one paper, but each
signer shall state his place of residence and street number.
One of the signers of each such paper shall make oath that the
statements therein made are true, as he believes, and that each
signature to the paper appended is the genuine signature of the
person whose signature it purports to be.
Within 10 days from the date of filing such petition, the
city clerk shall ascertain from the voters' register that the
said petition is signed by the requisite number of qualified
voters. The clerk shall attach to said petition his
certificate, showing the result of said examination. If, by the
clerk's certificate, the petition is shown to be insufficient,
it may be amended within 10 days from the date of said clerk's
certificate. The clerk shall, within 10 days after such
amendment, make like examination of the amended petition, and if
his certificate shall show the same to be insufficient it shall
be returned to the person filing the same, without prejudice,
however, to the filing of a new petition to the same effect. If
the petition is deemed sufficient, the clerk shall submit the
same to the council without delay. Within 10 days thereafter,
the council shall provide for the submission to the electorate
at the next general or special election held not less than 45
days thereafter of the question of repeal of the ordinance
described in the petition. The question of repeal or amendment
of said ordinance shall be submitted upon a separate ballot
which shall summarize the substance of the ordinance proposed to
be repealed or amended. If the majority of the electors voting
upon the question vote in favor of the repeal of the ordinance,
it shall be repealed or amended thereby effective on January 1
of the year next following. Such repeal shall not affect any
right accrued, any duty imposed, any penalty incurred, or any
proceeding commenced under or by virtue of the ordinance
repealed. If taxes levied under this section are pledged to or
for the benefit of any bonds issued before January 1, 1993, then
no pledge, mortgage, covenant, or agreement securing the bonds
may be impaired, revoked, or amended by repeal or amendment of
the ordinance under this subdivision, except in accordance with
the terms of the resolution or indenture under which the bonds
are issued, until the obligations of the city with respect to
the bonds or with respect to bonds issued to refund those bonds
have been fully discharged. Any action or proceeding pending to
enforce any right under the authority of the ordinance repealed
shall and may be proceeded with and concluded under the
ordinance in existence when the action or proceeding was
instituted, notwithstanding the repeal of such ordinance.
Sec. 37. [SALES TAX EXEMPTION.]
Subdivision 1. [EXEMPTION.] Capital equipment and building
materials, regardless of whether it was purchased by the owner,
contractor, subcontractor, or builder, qualifies for the
exemption under Minnesota Statutes 1990, section 297A.257, if
the purchase meets the other requirements of that section.
Subd. 2. [REFUNDS.] The commissioner of revenue shall pay
refunds of the tax exempted by subdivision 1 to the owner
operator of the facility upon filing of proof that the tax was
paid by the contractor. An amount sufficient to pay the refunds
is appropriated to the commissioner from the general fund.
Subd. 3. [EFFECTIVE DATE.] This section is effective for
projects begun during the time a county was designated as
distressed under Minnesota Statutes, section 297A.257, if the
capital equipment was placed in service after August 1, 1990.
Sec. 38. [REPEALER.]
Minnesota Statutes 1991 Supplement, section 295.367, is
repealed.
Sec. 39. [EFFECTIVE DATE.]
Sections 1, 2, 7, 8, 9, 11, 12, 24, and 28 are effective
the day after final enactment.
Sections 3 and 4 are effective for tax payments due for
sales made after September 30, 1992.
Sections 5 and 6 are effective July 1, 1992, and apply to
refunds filed after that date.
Sections 10, 13, 22, and 26 are effective for sales made
after June 30, 1992.
Sections 14, 15, and 18 are effective for sales made after
May 31, 1992.
Section 16 is effective retroactive for sales made after
June 30, 1991.
Section 19 is effective for all open tax years.
Sections 20 and 21 are effective for sales made after June
30, 1992, and before July 1, 1996.
Section 23 is effective for sales made on or after the date
of enactment, but prior to April 1, 1994.
Section 25 is effective for fiscal year 1993 and thereafter.
Section 36 is effective the day following final enactment,
and upon approval by the governing body of the city of Duluth
pursuant to Minnesota Statutes, section 645.021.
Section 38 is effective for sales made after December 31,
1991.
ARTICLE 9
MISCELLANEOUS
Section 1. Minnesota Statutes 1991 Supplement, section
16A.15, subdivision 6, is amended to read:
Subd. 6. [BUDGET AND CASH FLOW RESERVE ACCOUNT.] A budget
and cash flow reserve account is created in the general fund in
the state treasury. The commissioner of finance shall, as
authorized from time to time by law, restrict part or all of the
budgetary balance in the general fund for use as the budget and
cash flow reserve account. The commissioner of finance shall
transfer from the budget and cash flow reserve account the
amount necessary to bring the total amount, including any
existing balance in the account on June 30, 1991 July 1, 1992,
to $400,000,000 $240,000,000. The amounts restricted shall
remain in the account until drawn down under subdivision 1 or
increased under section 16A.1541.
Sec. 2. Minnesota Statutes 1991 Supplement, section
69.021, subdivision 5, is amended to read:
Subd. 5. [CALCULATION OF STATE AID.] (a) The amount of
fire state aid available for apportionment shall be two percent
of the fire, lightning, sprinkler leakage, and extended coverage
premiums reported to the commissioner by insurers on the
Minnesota Firetown Premium Report and two percent of the
premiums reported to the commissioner by insurers on the
Minnesota Aid to Police Premium Report. This amount shall be
reduced by the amount required to pay the state auditor's costs
and expenses of the audits or exams of the firefighters relief
associations.
(b) The total amount for apportionment in respect to police
peace officer state aid shall not be greater or lesser than is
the amount of premium taxes paid to the state upon the premiums
reported to the commissioner by insurers on the Minnesota Aid to
Police Premium Report after subtracting, plus the payment
amounts received under section 60A.152 since the last aid
apportionment, and reduced by the amount required to pay the
state auditor's costs and expenses of the audits or exams of the
police relief associations. The total amount for apportionment
in respect to firefighters state aid shall not be greater or
lesser than the amount of premium taxes paid to the state upon
the premiums reported to the commissioner by insurers on the
Minnesota Firetown Premium Report after subtracting the amount
required to pay the state auditor's costs and expenses of the
audits or exams of the firefighters relief associations. The
amount for apportionment in respect to police state aid shall be
distributed to the municipalities maintaining police departments
and to the county on the basis of the number of active peace
officers, as certified pursuant to section 69.011, subdivision
2, clause (b). The commissioner shall calculate the percentage
of increase or decrease reflected in the apportionment over or
under the previous year's available state aid using the same
premiums as a basis for comparison.
Sec. 3. Minnesota Statutes 1991 Supplement, section
69.021, subdivision 6, is amended to read:
Subd. 6. [CALCULATION OF APPORTIONMENT OF STATE PEACE
OFFICERS AID TO COUNTIES.] The peace officers state aid
available in respect to peace officers shall not exceed the
amount of tax collected and shall be distributed to the counties
in proportion to the total number of active peace officers, as
defined in section 69.011, subdivision 1, clause (g), in each
county who are employed either by municipalities maintaining
police departments or by the county. Any necessary adjustments
shall be made to subsequent apportionments.
Sec. 4. Minnesota Statutes 1990, section 270.07,
subdivision 3, is amended to read:
Subd. 3. Notwithstanding any other provision of law the
commissioner of revenue may,
(a) based upon the administrative costs of processing,
determine minimum standards for the determination of additional
tax for which an order shall be issued, and
(b) based upon collection costs as compared to the amount
of tax involved, determine minimum standards of collection, and
(c) based upon the administrative costs of processing,
determine the minimum amount of refunds for which an order shall
be issued and refund made where no claim therefor has been
filed, and
(d) may cancel any amounts below these minimum standards
determined under (a) and (b) hereof., and
(e) based upon the inability of a taxpayer to pay a
delinquent tax liability, abate the liability if the taxpayer
agrees to perform uncompensated public service work for a state
agency, a political subdivision or public corporation of this
state, or a nonprofit educational, medical, or social service
agency. The department of corrections shall administer the work
program. No benefits under chapter 176 or 268 shall be
available, but a claim authorized under section 3.739 may be
made by the taxpayer. The state may not enter into any
agreement that has the purpose of or results in the displacement
of public employees by a delinquent taxpayer under this
section. The state must certify to the appropriate bargaining
agent or employees, as applicable, that the work performed by a
delinquent taxpayer will not result in the displacement of
currently employed workers or layoff from a substantially
equivalent position, including partial displacement such as
reduction in hours of nonovertime work, wages, or other
employment benefits. The program authorized under this
paragraph terminates June 30, 1993.
Sec. 5. Minnesota Statutes 1990, section 270.69, is
amended by adding a subdivision to read:
Subd. 14. [REGISTERED LAND.] When a lien is filed with a
county recorder under subdivision 2, the county recorder shall
search the registered land records in that county and cause the
lien to be memorialized on every certificate of title or
certificate of possessory title of registered land in that
county which can be reasonably identified as owned by the
taxpayer who is named on the lien. The fees for memorializing
the lien shall be paid in the manner prescribed by subdivision
2, paragraph (c). The county recorders, and their employees and
agents, shall not be liable for any loss or damages arising from
failure to identify a parcel of registered land owned by the
taxpayer who is named on the lien.
Sec. 6. Minnesota Statutes 1990, section 282.016, is
amended to read:
282.016 [PROHIBITED PURCHASERS.]
No county auditor, county treasurer, court administrator of
the district court, or county assessor or supervisor of
assessments, or deputy or clerk or employee of such officer, and
no commissioner for tax-forfeited lands or assistant to such
commissioner may become a purchaser of the properties offered
for sale under the provisions of this chapter, either
personally, or as agent or attorney for any other person, except
that such officer, deputy, court administrator, employee or
commissioner for tax-forfeited lands or assistant to such
commissioner may (1) purchase lands owned by that official at
the time the state became the absolute owner thereof or (2) bid
upon and purchase forfeited property offered for sale under the
alternate sale procedure described in section 282.01,
subdivision 7a.
Sec. 7. [290.0691] [DESIGNATED COUNTIES JOB CREATION
CREDIT.]
Subdivision 1. [DESIGNATION OF COUNTIES.] The commissioner
of trade and economic development shall certify counties as
designated counties. A county is a designated county if:
(1) the county has had a decline in population of ten
percent or more from 1980 to 1990, as determined by the 1990
federal decennial census;
(2) the county has adopted a county-wide economic
development plan;
(3) the county has been designated a star county by the
department of trade and economic development; and
(4) each statutory and home rule charter city in the county
has established an economic development authority under sections
469.090 to 469.108.
For purposes of this section, "designated county" means a
county designated by the commissioner of trade and economic
development as provided under this section or a city of the
second class that is designated as an economically depressed
area by the United States Department of Commerce.
Subd. 2. [CREDIT FOR JOB CREATION.] A business with
operations located in a designated county may take a credit
against the tax due under chapter 290 for its first taxable year
beginning after December 31, 1992, and before January 1, 1994.
For purposes of this section, "business" means a business entity
organized for profit, including a sole proprietorship,
partnership, or corporation, and "eligible employees" are
determined as the number of persons paid an annual wage of at
least $15,000 and employed by the business within the designated
county on a full-time basis on the last day of the taxable year,
not to exceed the number of persons paid an annual wage of at
least $15,000 and employed by the business on a full-time basis
within the designated county on the date 90 days before the last
day of the taxable year. A credit is provided only for the
number of eligible employees that exceeds the number of such
persons so employed on the last day of the preceding taxable
year. A person is not an eligible employee if the commissioner
of trade and economic development determines that the position
held by that employee in the business was transferred from an
enterprise conducted by substantially the same business
enterprise at another site in the state. The credit is equal to
$2,000 multiplied by the number of eligible employees. The
credit is not refundable.
Subd. 3. [LIMITATION.] Tax credits provided under this
section may not exceed $200,000. If by April 15, 1994, the
commissioner of revenue determines that the estimated total
amount of credits claimed under this section exceeds $200,000,
the commissioner shall reduce the credit granted for each
eligible employee proportionately.
Sec. 8. [298.227] [TACONITE ECONOMIC DEVELOPMENT FUND.]
An amount equal to 10.4 cents per taxable ton distributed
pursuant to each taconite producer's taxable production under
section 298.28, subdivision 9a, for production years 1992 and
1993 shall be held by the iron range resources and
rehabilitation board in a separate taconite economic development
fund for each taconite producer. Money from the fund for each
producer shall be released only on the written authorization of
a joint committee consisting of an equal number of
representatives of the salaried employees and the nonsalaried
production and maintenance employees of that producer. The
district 33 director of the United States Steelworkers of
America, on advice of each local employee president, shall
select the employee members. In nonorganized operations, the
employee committee shall be elected by the nonsalaried
production and maintenance employees. Each producer's joint
committee may authorize release of the funds held pursuant to
this section only for acquisition of equipment and facilities
for the producer or for research and development in Minnesota on
new mining, or taconite, iron, or steel production technology.
Funds may be released only upon a majority vote of the
representatives of the committee. Any portion of the fund which
is not released by a joint committee within two years of its
deposit in the fund shall be divided between the taconite
environmental protection fund created in section 298.223 and the
northeast Minnesota economic protection trust fund created in
section 298.292 for placement in their respective special
accounts. Two-thirds of the unreleased funds shall be
distributed to the taconite environmental protection fund and
one-third to the northeast Minnesota economic protection trust
fund. This section is effective for taxes payable in 1993 and
1994.
Sec. 9. Minnesota Statutes 1990, section 298.24,
subdivision 1, is amended to read:
Subdivision 1. (a) For concentrate produced in 1990 1992
and 1993 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 $1.975 $2.054 per gross ton of
merchantable iron ore concentrate produced therefrom.
(b) For concentrates produced in 1991 1994 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 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 $1.975 $2.054 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. 10. Minnesota Statutes 1990, section 298.28, is
amended by adding a subdivision to read:
Subd. 9a. [TACONITE ECONOMIC DEVELOPMENT FUND.] 10.4 cents
per ton for distributions in 1993 and 1994 shall be paid to the
taconite economic development fund. No distribution shall be
made under this subdivision in any year in which total industry
production falls below 30 million tons.
Sec. 11. Minnesota Statutes 1990, section 373.40,
subdivision 7, is amended to read:
Subd. 7. [REPEALER.] This section is repealed effective
for bonds issued after July 1, 1993 1998, but continues to apply
to bonds issued before that date.
Sec. 12. Minnesota Statutes 1990, section 383.06, is
amended to read:
383.06 [PAYMENT OF WARRANTS; ACCOUNTS; HOW KEPT;
CERTIFICATES OF INDEBTEDNESS TO RETIRE OUTSTANDING WARRANTS.]
Subdivision 1. [PAYMENT OF WARRANTS.] The county treasurer
shall pay warrants only from the fund from which they are
legally payable. Payments under any special contract shall be
kept separate under the name of such contract, and under the
general title of the fund from which such payment may be legally
made. The treasurer need not keep a specific appropriations
account separately, but shall keep a general appropriations
account.
Subd. 2. [TAX ANTICIPATION CERTIFICATES.] The county board
may, by resolution, issue and sell as many certificates of
indebtedness as may be needed in anticipation of the collection
of taxes levied for any fund named in the tax levy for the
purpose of raising money for such fund, but the certificates
outstanding for any such separate funds shall not at any time
exceed 50 percent of the amount of taxes previously levied for
such fund remaining uncollected, and. No certificate shall be
issued to become due and payable later than December 31 of the
year succeeding the year in which the tax levy was made 15
months after the deadline for the certification of the property
tax levy under section 275.07, subdivision 1, and the
certificates shall not be sold for less than par and accrued
interest. No such certificates shall be issued prior to the
beginning of the fiscal year for which the taxes so anticipated
were intended, except that when taxes shall have been levied for
the purpose of paying a deficit in any such fund carried over
from any previous year or years The certificates of indebtedness
in anticipation of collection of the taxes levied for such
deficit may be issued at any time after such the levy shall have
has been finally made and certified to the county auditor. Each
certificate shall state upon its face for which fund the
proceeds thereof shall be used, the total amount of certificates
so issued, and the whole amount embraced in the levy for that
particular purpose. They shall be numbered consecutively, be in
denominations of $100 or a multiple thereof, may have interest
coupons attached, shall be otherwise of such form and terms, and
may be made payable at such place, as will best aid in their
negotiation, and the proceeds of the tax assessed and collected
on account of the fund and the full faith and credit of the
county shall be irrevocably pledged for the redemption and
payment of the certificates so issued. Such certificates shall
be payable primarily from the moneys derived from the levy for
the years against which such certificates were issued, but shall
constitute unlimited general obligations of the county. Money
derived from the sale of such certificates shall be credited to
the fund or funds the taxes for which are so anticipated.
Sec. 13. Minnesota Statutes 1990, section 401.02,
subdivision 3, is amended to read:
Subd. 3. [ESTABLISHMENT AND REORGANIZATION OF
ADMINISTRATIVE STRUCTURE.] Any county or group of counties which
have qualified for participation in the community corrections
subsidy program provided by this chapter may, after consultation
with the judges of the district court, county court, municipal
court, probate court and juvenile court having jurisdiction in
the county or group of counties establish, organize, and
reorganize an administrative structure and provide for the
budgeting, staffing and operation of court services and
probation, construction or improvement to juvenile detention and
juvenile correctional facilities and adult detention and
correctional facilities, and other activities required to
conform to the purposes of this chapter. No contrary general or
special statute divests any county or group of counties of the
authority granted by this subdivision. This subdivision does
not apply to Ramsey County or Hennepin County or to the counties
in the Arrowhead region. In Hennepin County and Ramsey County
the county board and the judges of the district court, county
court, municipal court, probate court and juvenile court shall
prepare and implement a joint plan for reorganization of
correctional services in the county providing for the
administrative structure and providing for the budgeting,
staffing and operation of court services and probation, juvenile
detention and juvenile correctional facilities, and other
activities required to conform to the purposes of this chapter.
The joint plan shall be subject to the approval of the
commissioner of corrections and submitted to the legislature on
or before January 15, 1983.
Sec. 14. Minnesota Statutes 1990, section 401.05, is
amended to read:
401.05 [FISCAL POWERS.]
Subdivision 1. [AUTHORIZATION TO USE AND ACCEPT FUNDS.]
Any county or group of counties electing to come within the
provisions of sections 401.01 to 401.16, may, through their
governing bodies, use unexpended funds, accept gifts, grants and
subsidies from any lawful source, and apply for and accept
federal funds.
Subd. 2. [CAPITAL IMPROVEMENTS; BONDS; LEASES.] (a) A
county or group of counties which acquires facilities under
section 401.04 or constructs the facilities may finance the
acquisition or construction and the equipping and subsequent
improvement of the facilities in whole or in part by:
(1) the issuance of general obligation bonds of the county
or group of counties in the manner provided in chapter 475; or
(2) the issuance of revenue bonds, secured by a lease
agreement as provided in subdivision 3 and sections 469.152 to
469.165, by a city situated in any of the counties or a county
housing and redevelopment authority established pursuant to
chapter 469 or special law.
Proceedings for the issuance of general obligation bonds shall
be instituted by the board of county commissioners of the county
or boards of the group of counties.
(b) If counties have combined as authorized in section
401.02, the joint powers board created under section 471.59
shall, with the approval of the county board of each county
which is a party:
(1) fix the total amount necessary for the construction or
acquisition and the equipping and subsequent improvement of the
facilities; and
(2) apportion to each county its share of this amount or of
the annual debt service or lease rentals required to pay this
amount with interest, as provided in subdivision 4.
Subd. 3. [LEASING.] (a) A county or joint powers board of
a group of counties which acquires or constructs and equips or
improves facilities under this chapter may, with the approval of
the board of county commissioners of each county, enter into a
lease agreement with a city situated within any of the counties,
or a county housing and redevelopment authority established
under chapter 469 or any special law. Under the lease
agreement, the city or county housing and redevelopment
authority shall:
(1) construct or acquire and equip or improve a facility in
accordance with plans prepared by or at the request of a county
or joint powers board of the group of counties and approved by
the commissioner of corrections; and
(2) finance the facility by the issuance of revenue bonds.
(b) The county or joint powers board of a group of counties
may lease the facility site, improvements, and equipment for a
term upon rental sufficient to produce revenue for the prompt
payment of the revenue bonds and all interest accruing on them.
Upon completion of payment, the lessee shall acquire title. The
real and personal property acquired for the facility constitutes
a project and the lease agreement constitutes a revenue
agreement as provided in sections 469.152 to 469.165. All
proceedings by the city or county housing and redevelopment
authority and the county or joint powers board shall be as
provided in sections 469.152 to 469.165, with the following
adjustments:
(1) no tax may be imposed upon the property;
(2) the approval of the project by the commissioner of
trade and economic development is not required;
(3) the department of corrections shall be furnished and
shall record information concerning each project as it may
prescribe, in lieu of reports required on other projects to the
commissioner of trade and economic development or the energy and
economic development authority;
(4) the rentals required to be paid under the lease
agreement shall not exceed in any year one-tenth of one percent
of the market value of property within the county or group of
counties as last equalized before the execution of the lease
agreement;
(5) the county or group of counties shall provide for
payment of all rentals due during the term of the lease
agreement in the manner required in subdivision 4;
(6) no mortgage on the facilities shall be granted for the
security of the bonds, but compliance with clause (5) may be
enforced as a nondiscretionary duty of the county or group of
counties; and
(7) the county or the joint powers board of the group of
counties may sublease any part of the facilities for purposes
consistent with their maintenance and operation.
Subd. 4. [TAX LEVIES; APPORTIONMENT OF COSTS.] The county
or each county of the group of counties shall annually levy a
tax in an amount necessary to defray its proportion of the net
costs of maintenance and operation of the facilities, and shall
levy a tax to pay the cost of construction or acquisition,
equipping, and any subsequent improvement to the facilities or
the retirement of any bonds or required lease payments for these
purposes. Each county may levy these taxes without limitation
on the rate or amount. This levy shall not cause the amount of
other taxes levied or to be levied by the county, which are
subject to any limitation, to be reduced in any amount. A joint
powers board of the group of counties shall apportion the costs
of maintenance and operation, construction or acquisition,
equipping, and subsequent improvement of the facilities to each
of the counties according to a formula in the agreement entered
into by the counties.
Subd. 5. [CORRECTIONAL FACILITIES FUND.] All money
received for the operation and maintenance, payment of
indebtedness or lease payments, and construction or acquisition,
equipping, and subsequent improvement of the facilities must be
deposited in a correctional facilities fund maintained in the
treasury of the county in which the facilities are located or
any county treasury of the group of counties as designated by
the joint powers board. Payments from the fund shall only be
made upon certification of the chair or board designee that the
expenditures have been approved at a meeting of the board.
Sec. 15. Minnesota Statutes 1990, section 462A.22,
subdivision 1, is amended to read:
Subdivision 1. The aggregate principal amount of bonds and
notes which are outstanding at any time, excluding the principal
amount of any bonds and notes refunded by the issuance of new
bonds or notes, shall not exceed the sum of $1,990,000,000
$2,400,000,000.
Sec. 16. Minnesota Statutes 1990, section 469.004,
subdivision 1, is amended to read:
Subdivision 1. [PRELIMINARY COUNTY FINDINGS AND
DECLARATION.] There is created in each county in this state
other than Ramsey and other than those counties in which a
county housing authority has been created by special act, a
public body, corporate and politic, to be known as the housing
and redevelopment authority of that county, hereinafter referred
to as "county authority." No county authority shall transact any
business or exercise any powers until the governing body of the
county, by resolution, finds that there is need for a county
authority to function in the county. The governing body shall
consider the need for a county authority to function (1) on the
governing body's own motion or (2) upon the filing of a petition
signed by 25 qualified voters of the county asserting that there
is need for a county authority to function in the county and
requesting that the governing body so declare. The governing
body shall adopt a resolution declaring that there is need for a
county authority to function in the county if it makes the
findings required in section 469.003, subdivision 1.
Sec. 17. Minnesota Statutes 1990, section 469.004, is
amended by adding a subdivision to read:
Subd. 1a. [RAMSEY COUNTY AUTHORITY.] Ramsey county may
exercise the powers of a housing and redevelopment authority.
Before the commencement of a project by Ramsey county acting as
a housing and redevelopment authority, the governing body of the
municipality in which the project is to be located shall, by
majority vote, approve the project as recommended by the
authority. The authority granted to Ramsey county under this
subdivision and section 16 terminates June 30, 1994, providing
that obligations incurred by the county before that date shall
remain in effect according to their terms.
Sec. 18. Minnesota Statutes 1990, section 469.034, is
amended to read:
469.034 [BOND ISSUE FOR CORPORATE PURPOSES.]
Subdivision 1. [AUTHORITY AND REVENUE OBLIGATIONS.] An
authority may issue bonds for any of its corporate purposes.
The bonds may be the type the authority determines, including
bonds on which the principal and interest are payable
exclusively from the income and revenues of the project financed
with the proceeds of the bonds, or exclusively from the income
and revenues of certain designated projects, whether or not they
are financed in whole or in part with the proceeds of the
bonds. The bonds may be additionally secured by (1) a pledge of
any grant or contributions from the federal government or other
source, or (2) a pledge of any income or revenues of the
authority from the project for which the proceeds of the bonds
are to be used, or (3) a mortgage of any project or other
property of the authority.
Subd. 2. [GENERAL OBLIGATION REVENUE BONDS.] (a) An
authority may pledge the general obligation of the general
jurisdiction governmental unit as additional security for bonds
payable from income or revenues of the project or the
authority. The authority must find that the pledged revenues
will equal or exceed 110 percent of the principal and interest
due on the bonds for each year. The proceeds of the bonds must
be used for a qualified housing development project or
projects. The obligations must be issued and sold in the manner
and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors. The
authority is the municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by
the governing body of the general jurisdiction governmental unit
whose general obligation is pledged. Public hearings must be
held on issuance of the obligations by both the authority and
the general jurisdiction governmental unit. The hearings must
be held at least 15 days, but not more than 120 days, before the
sale of the obligations.
(c) The maximum amount of general obligation bonds that may
be issued and outstanding under this section equals the greater
of (1) one-half of one percent of the taxable market value of
the general jurisdiction governmental unit whose general
obligation which includes a tax on property is pledged, or (2)
$3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of
all cities in the county or counties issued under this
subdivision must be added in calculating the limit under clause
(1).
(d) "General jurisdiction governmental unit" means the city
in which the housing development project is located. In the
case of a county or multicounty authority, the county or
counties may act as the general jurisdiction governmental unit.
In the case of a multicounty authority, the pledge of the
general obligation is a pledge of a tax on the taxable property
in each of the counties.
(e) "Qualified housing development project" means a housing
development project providing housing either for the elderly or
for individuals and families with incomes not greater than 80
percent of the median family income as estimated by the United
States Department of Housing and Urban Development for the
standard metropolitan statistical area or the nonmetropolitan
county in which the project is located. A qualified housing
development project may admit nonelderly individuals and
families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing
unanticipated vacancies resulting in insufficient revenues,
because of changes in population or other unforeseen
circumstances that occurred after the initial finding of
adequate revenues; and
(3) the authority finds a tax levy or payment from general
assets of the general jurisdiction governmental unit will be
necessary to pay debt service on the bonds if higher income
individuals or families are not admitted.
Subd. 3. [REVENUE FROM OTHER PROJECTS.] No proceeds of
bonds issued for or revenue authorized for or derived from any
redevelopment project or area shall be used to pay the bonds or
costs of, or make contributions or loans to, any public housing
project. The proceeds of bonds issued for or revenues
authorized for or derived from any one public housing project
shall not be used to pay the bonds or costs of, or make
contributions or loans to any other public housing project until
the bonds and costs of the public housing project for which
those bonds were issued or from which those revenues were
derived or for which they were authorized shall be fully paid.
Subd. 4. [BOND TERMS.] Neither the commissioners of an
authority nor any person executing the bonds shall be liable
personally on the bonds by reason of the issuance
thereof. Except as provided in subdivision 2, the bonds of an
authority shall not be a debt of the city, the state, or any
political subdivision, and neither the city nor the state or any
political subdivision shall be liable on them, nor shall the
bonds be payable out of any funds or properties other than those
of the authority; the bonds shall state this on their face. The
bonds shall not constitute an indebtedness within the meaning of
any constitutional or statutory debt limitation or restriction,
except as provided in subdivision 2. Bonds of an authority are
declared to be issued for an essential public and governmental
purpose and to be public instrumentalities.
Subd. 5. [TAX EXEMPTION.] The provisions of sections
469.001 to 469.047 exempting from taxation authorities, their
properties and income, shall be considered additional security
for the repayment of bonds and shall constitute, by virtue of
sections 469.001 to 469.047 and without the same being restated
in the bonds, a contract between the (1) bondholders and each of
them, including all transferees of the bonds, and (2) the
respective authorities issuing the bonds and the state. An
authority may by covenant confer upon the holder of the bonds
the rights and remedies it deems necessary or advisable,
including the right in the event of default to have a receiver
appointed to take possession of and operate the project. When
the obligations issued by an authority to assist in financing
the development of a project have been retired and federal
contributions have been discontinued, the exemptions from taxes
and special assessments for that project shall terminate.
Sec. 19. Minnesota Statutes 1990, section 469.153,
subdivision 2, is amended to read:
Subd. 2. [PROJECT.] (a) "Project" means (1) any
properties, real or personal, used or useful in connection with
a revenue producing enterprise, or any combination of two or
more such enterprises engaged or to be engaged in generating,
transmitting, or distributing electricity, assembling,
fabricating, manufacturing, mixing, processing, storing,
warehousing, or distributing any products of agriculture,
forestry, mining, or manufacture, or in research and development
activity in this field; (2) any properties, real or personal,
used or useful in the abatement or control of noise, air, or
water pollution, or in the disposal of solid wastes, in
connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be
engaged in any business or industry; (3) any properties, real or
personal, used or useful in connection with the business of
telephonic communications, conducted or to be conducted by a
telephone company, including toll lines, poles, cables,
switching, and other electronic equipment and administrative,
data processing, garage, and research and development
facilities; (4) any properties, real or personal, used or useful
in connection with a district heating system, consisting of the
use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses,
including cogeneration facilities, distribution lines, service
facilities, and retrofit facilities for modifying the user's
heating or water system to use the heat energy converted from
the steam or hot water.
(b) "Project" also includes any properties, real or
personal, used or useful in connection with a revenue producing
enterprise, or any combination of two or more such enterprises
engaged in any business.
(c) "Project" also includes any properties, real or
personal, used or useful for the promotion of tourism in the
state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under
section 471.191, and related facilities.
(d) "Project" also includes any properties, real or
personal, used or useful in connection with a revenue producing
enterprise, whether or not operated for profit, engaged in
providing health care services, including hospitals, nursing
homes, and related medical facilities.
(e) "Project" does not include any property to be sold or
to be affixed to or consumed in the production of property for
sale, and does not include any housing facility to be rented or
used as a permanent residence.
(f) "Project" also means the activities of any revenue
producing enterprise involving the construction, fabrication,
sale, or leasing of equipment or products to be used in
gathering, processing, generating, transmitting, or distributing
solar, wind, geothermal, biomass, agricultural or forestry
energy crops, or other alternative energy sources for use by any
person or any residential, commercial, industrial, or
governmental entity in heating, cooling, or otherwise providing
energy for a facility owned or operated by that person or entity.
(g) "Project" also includes any properties, real or
personal, used or useful in connection with a county jail or,
county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities,
the plans for which are approved by the commissioner of
corrections; provided that the provisions of section 469.155,
subdivisions 7 and 13, do not apply to those projects.
(h) "Project" also includes any real properties used or
useful in furtherance of the purposes and policies of sections
469.135 to 469.141.
(i) "Project" also includes related facilities as defined
by section 471A.02, subdivision 11.
(j) "Project" also includes an undertaking to purchase the
obligations of local governments located in whole or in part
within the boundaries of the municipality that are issued or to
be issued for public purposes.
Sec. 20. Minnesota Statutes 1991 Supplement, section
508.25, is amended to read:
508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.]
Every person receiving a certificate of title pursuant to a
decree of registration and every subsequent purchaser of
registered land who receives a certificate of title in good
faith and for a valuable consideration shall hold it free from
all encumbrances and adverse claims, excepting only the estates,
mortgages, liens, charges, and interests as may be noted in the
last certificate of title in the office of the registrar, and
also excepting any of the following rights or encumbrances
subsisting against it, if any:
(1) liens, claims, or rights arising or existing under the
laws or the constitution of the United States, which this state
cannot require to appear of record;
(2) the lien of any real property tax or special assessment
for which the land has not been sold at the date of the
certificate of title;
(3) any lease for a period not exceeding three years when
there is actual occupation of the premises thereunder;
(4) all rights in public highways upon the land;
(5) the right of appeal, or right to appear and contest the
application, as is allowed by this chapter;
(6) the rights of any person in possession under deed or
contract for deed from the owner of the certificate of
title; and
(7) any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17; and
(8) any lien for state taxes.
No existing or future lien for state taxes arising under
the laws of this state for the nonpayment of any amounts due
under chapter 268 or any tax administered by the commissioner of
revenue may encumber title to lands registered under this
chapter unless filed under the terms of this chapter.
Sec. 21. Minnesota Statutes 1991 Supplement, section
508A.25, is amended to read:
508A.25 [RIGHTS OF PERSON HOLDING CPT.]
Every person holding a CPT issued pursuant to sections
508A.01 to 508A.85 who has acquired title in good faith and for
a valuable consideration shall hold the same free from all
encumbrances and adverse claims, excepting only estates,
mortgages, liens, charges, and interests as may be noted by
separate memorials in the latest CPT in the office of the
registrar, and also excepting the memorial provided in section
508A.351 and any of the following rights or encumbrances
subsisting against the same, if any:
(1) Liens, claims, or rights arising or existing under the
laws or the constitution of the United States, which this state
cannot require to appear of record;
(2) The lien of any real property tax or special assessment
for which the land has not been sold at the date of the CPT;
(3) Any lease for a period not exceeding three years when
there is actual occupation of the premises under it;
(4) All rights in public highways upon the land;
(5) The rights of any person in possession under deed or
contract for deed from the owner of the CPT;
(6) Any liens, encumbrances, and other interests that may
be contained in the examiner's supplemental directive issued
pursuant to section 508A.22, subdivision 2;
(7) Any claims that may be made pursuant to section 508A.17
within five years from the date the examiner's supplemental
directive is filed on the CPT; and
(8) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17; and
(9) any lien for state taxes.
No existing or future lien for state taxes arising under
the laws of this state for the nonpayment of any amounts due
under chapter 268 or any tax administered by the commissioner of
revenue may encumber title to lands registered under this
chapter unless filed under the terms of this chapter.
Sec. 22. Minnesota Statutes 1990, section 641.24, is
amended to read:
641.24 [LEASING.]
The county may, by resolution of the county board, enter
into a lease agreement with any statutory or home rule charter
city situated within the county, or a county housing and
redevelopment authority established pursuant to chapter 462 469
or any special law whereby the city or county housing and
redevelopment authority will construct a jail or other law
enforcement facilities for the county sheriff, deputy sheriffs,
and other employees of the sheriff and other law enforcement
agencies, in accordance with plans prepared by or at the request
of the county board and, when required, approved by the
commissioner of corrections and will finance it by the issuance
of revenue bonds, and the county may lease the jail site and
improvements for a term and upon rentals sufficient to produce
revenue for the prompt payment of the bonds and all interest
accruing thereon and, upon completion of payment, will acquire
title thereto. The real and personal property acquired for the
jail shall constitute a project and the lease agreement shall
constitute a revenue agreement as contemplated in chapter 474
469, and all proceedings shall be taken by the city or county
housing and redevelopment authority and the county in the manner
and with the force and effect provided in chapter 474 469;
provided that:
(1) no tax shall be imposed upon or in lieu of a tax upon
the property;
(2) the approval of the project by the commissioner of
commerce shall not be required;
(3) the department of corrections shall be furnished and
shall record such information concerning each project as it may
prescribe, in lieu of reports required on other projects to the
commissioner of trade and economic development;
(4) the rentals required to be paid under the lease
agreement shall not exceed in any year one-tenth of one percent
of the market value of property within the county, as last
finally equalized before the execution of the agreement;
(5) the county board shall provide for the payment of all
rentals due during the term of the lease, in the manner required
in section 641.264, subdivision 2;
(6) no mortgage on the jail property shall be granted for
the security of the bonds, but compliance with clause (5) hereof
may be enforced as a nondiscretionary duty of the county board;
and
(7) the county board may sublease any part of the jail
property for purposes consistent with the maintenance and
operation of a county jail or other law enforcement facility.
Sec. 23. Laws 1971, chapter 773, section 1, subdivision 2,
as amended by Laws 1974, chapter 351, section 5, Laws 1976,
chapter 234, section 7, Laws 1978, chapter 788, section 1, Laws
1981, chapter 369, section 1, Laws 1983, chapter 302, section 1,
and Laws 1988, chapter 513, section 1, is amended to read:
Subd. 2. For each of the years through 1993, inclusive
1998, the city of St. Paul is authorized to issue bonds in the
aggregate principal amount of $8,000,000 for each year; or in an
amount equal to one-fourth of one percent of the assessors
estimated market value of taxable property in St. Paul,
whichever is greater, provided that no more than $8,000,000 of
bonds is authorized to be issued in any year, unless St. Paul's
local general obligation debt as defined in this section is less
than six percent of market value calculated as of December 31 of
the preceding year; but at no time shall the aggregate principal
amount of bonds authorized exceed $11,300,000 in 1987,
$12,000,000 in 1988, $13,300,000 in 1989, $14,000,000 in 1990,
$14,800,000 in 1991, $15,700,000 in 1992, and $16,600,000 in
1993, $16,600,000 in 1994, $16,600,000 in 1995, $17,500,000 in
1996, $17,500,000 in 1997, and $18,000,000 in 1998.
Sec. 24. Laws 1971, chapter 773, section 2, as amended by
Laws 1978, chapter 788, section 2, Laws 1983, chapter 302,
section 2, and Laws 1988, chapter 513, section 2, is amended to
read:
Sec. 2. The proceeds of all bonds issued pursuant to
section 1 hereof shall be used exclusively for the acquisition,
construction, and repair of capital improvements and, commencing
in the year 1989 1992 and notwithstanding any provision in Laws
1978, chapter 788, section 5, as amended, for redevelopment
project activities as defined in Minnesota Statutes, section
469.002, subdivision 14, in accordance with Minnesota Statutes,
section 469.041, clause (6). The amount of proceeds of bonds
authorized by section 1 used for redevelopment project
activities shall not exceed $530,000 in 1988, $560,000 in 1989,
$590,000 in 1990, $620,000 in 1991, $655,000 in 1992, and
$690,000 in 1993, $690,000 in 1994, $690,000 in 1995, $700,000
in 1996, $700,000 in 1997, and $725,000 in 1998.
None of the proceeds of any bonds so issued shall be
expended except upon projects which have been reviewed, and have
received a priority rating, from a capital improvements
committee consisting of 18 members, of whom a majority shall not
hold any paid office or position under the city of St. Paul.
The members shall be appointed by the mayor, with at least four
members from each Minnesota senate district located entirely
within the city and at least two members from each senate
district located partly within the city. Prior to making an
appointment to a vacancy on the capital improvement budget
committee, the mayor shall consult the legislators of the senate
district in which the vacancy occurs. The priorities and
recommendations of the committee shall be purely advisory, and
no buyer of any bonds shall be required to see to the
application of the proceeds.
Sec. 25. [JOINT TAX ADVISORY COMMITTEE.]
The city of St. Paul, independent school district No. 625,
and Ramsey county may establish a St. Paul joint tax levy
advisory committee. The committee shall elect a chair from
among its members and shall meet from time to time to make
appropriate recommendations for the efficient and effective use
of property tax dollars raised by levies by the jurisdictions
for programs, buildings, and operations.
Sec. 26. [RICHFIELD; TAX INCREMENT.]
Subdivision 1. [COMPUTATION OF TAX
INCREMENT.] Notwithstanding the provisions of Minnesota
Statutes, section 469.177, subdivision 3, paragraph (c), the
governing body of the city of Richfield may change its election
of a method for computing tax increment for the tax increment
financing district certified on December 5, 1985, and known as
the Interstate, Lyndale, Nicollet District. The governing body
may change its election from the computation in Minnesota
Statutes, section 469.177, subdivision 3, paragraph (b), to the
computation in Minnesota Statutes, section 469.177, subdivision
3, paragraph (a), or the alternative method described in
subdivision 2.
Subd. 2. [ALTERNATIVE CALCULATION METHOD.] Pursuant to the
election authorized in subdivision 1, the governing body of the
city of Richfield may elect the following method of computation:
(1) The original net tax capacity must be determined before
the application of the fiscal disparity provisions of Minnesota
Statutes, chapter 473F. The current net tax capacity must
exclude any fiscal disparity commercial-industrial net tax
capacity increase between the original year and the current year
multiplied by a ratio that is less than the fiscal disparity
ratio determined pursuant to Minnesota Statutes, section
473F.08, subdivision 6. The ratio, which must be a percentage
of the fiscal disparity ratio, must be determined by the
governing body and must remain in effect during the term of the
district. Where the original net tax capacity is equal to or
greater than the current net tax capacity, there is no captured
net tax capacity and no tax increment determination.
(2) The county auditor shall exclude the retained captured
net tax capacity of the authority from the net tax capacity of
the local taxing districts in determining local taxing district
tax capacity rates. The tax capacity rates so determined must
be extended against the retained captured net tax capacity of
the authority as well as the net tax capacity of the local
taxing districts. The tax generated by the extension of the
lesser of (i) the local taxing district tax capacity rates or
(ii) the original tax capacity rate to the retained captured net
tax capacity of the authority is the tax increment of the
authority.
Sec. 27. [MINNEAPOLIS; PLAZA AND PARKING BONDS.]
Subdivision 1. [AUTHORIZATION.] The city of Minneapolis
may issue and sell general obligation bonds for the acquisition
of land for and the construction of:
(1) a plaza and public parking facility adjacent to a
federal courts facility to be located in downtown Minneapolis;
(2) a city garage and parking facility to replace
facilities located on property to be used for the federal courts
facility; and
(3) a connecting tunnel and other appurtenant facilities.
Subd. 2. [CONDITIONS.] The bonds shall be issued and sold
under Minnesota Statutes, chapter 475, except that the bonds are
not subject to the election requirements of chapter 475 or the
charter of the city regardless of the amount of the bonds. The
bonds shall not be included in computing the net debt of the
city under law or charter. The powers granted by this section
are in addition to the powers which the city may exercise under
other law or charter.
Sec. 28. [CITY OF MINNEAPOLIS; DURATION OF TAX INCREMENT
DISTRICT.]
Notwithstanding Minnesota Statutes, section 469.176,
subdivision 1, the duration of the Laurel Village tax increment
financing district, district No. 64, located within the city of
Minneapolis, may be extended by the authority through the year
2015. Any increment received for the years 2013 to 2015 may
only be utilized to pay obligations provided for under the
Laurel Village contract for private development, including use
for payment of or to secure payment of, debt service on bonds
issued in aid of the Laurel Village project or bonds issued to
refund those bonds. Any increment received for years 2013 to
2015 that is not used for the purposes described in this section
must be paid proportionately to the municipality, county, and
school district as provided in Minnesota Statutes, section
469.176, subdivision 2.
Sec. 29. [ST. LOUIS PARK; TAX INCREMENT.]
Subdivision 1. [AUTHORIZATION.] The city of St. Louis
Park, or its redevelopment agencies, may create a hazardous
substance subdistrict within the Excelsior Boulevard
redevelopment project ("district"), under Minnesota Statutes,
section 469.175, subdivision 7, and issue bonds or other
obligations payable in whole or in part from increment derived
from the subdistrict or district upon a finding by city
resolution that establishment of a subdistrict will facilitate
environmental remediation and reduce the likelihood of
litigation. The request for certification of the subdistrict
must be filed with the county auditor before December 1, 1995.
The city may defer receipt of the first increment from a
subdistrict for up to three years following certification.
Minnesota Statutes, sections 469.174, subdivision 7, paragraph
(c); and 469.176, subdivisions 1, paragraph (d); 4e; 6; and 7,
do not apply to a subdistrict. Nothing in this section affects
the liability of persons for costs or damages associated with
the release of hazardous substances, the city's right to pursue
responsible parties or reimbursement under applicable insurance
contracts, or the city's liability under Minnesota Statutes,
section 115B.04, subdivision 4. The powers granted are in
addition to other powers of the city.
Subd. 2. [RESTRICTIONS; SUBDISTRICT SIZE.] The subdistrict
created under this section must be contiguous and may not exceed
20 acres.
Subd. 3. [QUALIFICATION RULES.] Before creation of a
subdistrict under subdivision 1, the governing body of the city
of St. Louis Park must find that the sum of remediation costs
related to the subdistrict and deposits to the indemnification
fund or premiums for the purchase of private environmental
insurance necessary to develop the site exceeds the estimated
fair market value of the land in the subdistrict after
completion of all necessary remediation activities and provision
of indemnification under the plan.
Subd. 4. [LIMITS ON SPENDING INCREMENTS; POOLING
RULES.] The provisions of Minnesota Statutes 1990, section
469.1763, do not apply to the subdistrict created under this
section. Revenues derived from tax increments from the
subdistrict may be spent only on:
(1) remediation and associated costs related to the area
contained in the subdistrict, including the activities outside
of the subdistrict to the extent necessary to prevent
contaminants moving to or from the site;
(2) deposits to an indemnification fund or the purchase of
environmental insurance, relating only to liability or
additional remediation costs for contaminated parcels located in
the subdistrict; and
(3) administrative expenses and costs permitted under
Minnesota Statutes 1990, section 469.176, subdivision 4h.
After sufficient revenues derived from tax increments have
been received to pay all remediation costs, deposits to an
indemnification fund or insurance premiums, and administrative
and other qualifying costs the subdistrict must be decertified.
Subd. 5. [STATE AID REDUCTIONS.] The state aid reductions
under Minnesota Statutes 1990, section 273.1399, do not apply to
the subdistrict, if the city elects to pay and pays 25 percent
of the remediation costs and deposits to the indemnification
fund out of its general fund, a property tax levy for that
purpose, or other unrestricted city money (other than tax
increments). The city must elect this option at the time of
certification of the district and must notify the commissioner
of revenue of its election. The election is irrevocable.
Subd. 6. [DEFINITION.] For purposes of this section,
"remediation" means activity constituting "removal," "remedy,"
"remedial action," or "response" as those terms are defined in
Minnesota Statutes, section 115B.02. Remediation costs include
activities, including installation of public infrastructure,
necessary to accomplish remediation.
Subd. 7. [EFFECTIVE DATE.] This section is effective upon
compliance by the city of St. Louis Park with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 30. [ST. PAUL; TAX INCREMENT.]
Subdivision 1. [AUTHORIZATION.] The city of St. Paul, or
its redevelopment agencies, may create a hazardous substance
subdistrict in the Lower Payne Avenue study area, under
Minnesota Statutes, section 469.175, subdivision 7, and issue
bonds or other obligations payable in whole or in part from
increment derived from the subdistrict or district upon a
finding by city resolution that establishment of a subdistrict
will facilitate environmental remediation and reduce the
likelihood of litigation. The request for certification of the
subdistrict must be filed with the county auditor before
December 1, 1995. The city may defer receipt of the first
increment from a subdistrict for up to three years following
certification. Minnesota Statutes, sections 469.174,
subdivision 7, paragraph (c); and 469.176, subdivisions 1,
paragraph (d); 4e; 6; and 7, do not apply to a subdistrict.
Nothing in this section affects the liability of persons for
costs or damages associated with the release of hazardous
substances, the city's right to pursue responsible parties or
reimbursement under applicable insurance contracts, or the
city's liability under Minnesota Statutes, section 115B.04,
subdivision 4. The powers granted are in addition to other
powers of the city.
Subd. 2. [RESTRICTIONS; SUBDISTRICT SIZE.] The subdistrict
created under this section must be contiguous and may not exceed
ten acres.
Subd. 3. [QUALIFICATION RULES.] Before creation of a
subdistrict under subdivision 1, the governing body of the city
of St. Paul must find that the sum of remediation costs related
to the subdistrict and deposits to the indemnification fund or
premiums for the purchase of private environmental insurance
necessary to develop the site exceeds the estimated fair market
value of the land in the subdistrict after completion of all
necessary remediation activities and provision of
indemnification under the plan.
Subd. 4. [LIMITS ON SPENDING INCREMENTS; POOLING
RULES.] The provisions of Minnesota Statutes 1990, section
469.1763, do not apply to the subdistrict created under this
section. Revenues derived from tax increments from the
subdistrict may be spent only on:
(1) remediation and associated costs related to the area
contained in the subdistrict, including the activities outside
of the subdistrict to the extent necessary to prevent
contaminants moving to or from the site;
(2) deposits to an indemnification fund or the purchase of
environmental insurance, relating only to liability or
additional remediation costs for contaminated parcels located in
the subdistrict; and
(3) administrative expenses and costs permitted under
Minnesota Statutes 1990, section 469.176, subdivision 4h.
After sufficient revenues derived from tax increments have
been received to pay all remediation costs, deposits to an
indemnification fund or insurance premiums, and administrative
and other qualifying costs the subdistrict must be decertified.
Subd. 5. [STATE AID REDUCTIONS.] (a) The state aid
reductions under Minnesota Statutes 1990, section 273.1399, do
not apply to the subdistrict, if the city elects to pay and pays
25 percent of the remediation costs and deposits to the
indemnification fund out of its general fund, a property tax
levy for that purpose, or other unrestricted city money (other
than tax increments). The city must elect this option at the
time of certification of the district and must notify the
commissioner of revenue of its election. The election is
irrevocable.
(b) If the city elects this option, tax capacity captured
by the subdistrict must not be included in the calculation of
state aid reduction for the district under Minnesota Statutes,
section 273.1399.
Subd. 6. [DEFINITION.] For purposes of this section,
"remediation" means activity constituting "removal," "remedy,"
"remedial action," or "response" as those terms are defined in
Minnesota Statutes, section 115B.02. Remediation costs include
activities, including installation of public infrastructure,
necessary to accomplish remediation.
Subd. 7. [EFFECTIVE DATE.] This section is effective upon
compliance by the city of St. Paul with Minnesota Statutes,
section 645.021, subdivision 3.
Sec. 31. [APPROPRIATIONS; TAX SAMPLE.]
$75,000 is appropriated to the commissioner of revenue for
purposes of preparing a microdata sample of individual income
tax returns and other data for taxable year 1991. This
appropriation may be used in either fiscal year 1992 or 1993.
Sec. 32. [APPROPRIATION.]
$1,000,000 is appropriated from the general fund to the
commissioner of the Minnesota housing finance agency to be
deposited in the housing trust fund account created under
Minnesota Statutes, section 462A.201, and used for the purposes
provided in that section.
Sec. 33. [REPEALER.]
Section 7 is repealed effective for taxable years beginning
after December 31, 1993.
Minnesota Statutes 1990, section 298.24, subdivision 4, is
repealed.
Sec. 34. [EFFECTIVE DATE.]
Sections 2 and 3 are effective July 1, 1992.
Sections 4, 13, 14, 15, 19, and 22 are effective the day
following final enactment.
Section 5 is effective for liens filed on or after the day
following final enactment.
Section 12 is effective for certificates of indebtedness
issued after the day of final enactment.
Sections 20 and 21 are effective retroactively to December
31, 1991.
Sections 23 and 24 are effective the day after compliance
with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of St. Paul.
Section 26 is effective the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of Richfield.
Section 27 is effective the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of the city of Minneapolis.
Presented to the governor April 17, 1992
Signed by the governor April 24, 1992, 11:13 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes