1.1 	A bill for an act
1.2 	relating to property taxation; reducing disparity reduction aid payments;
1.3 	amending Minnesota Statutes 2010, section 273.1398, subdivision 3.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to 
1.6 	read:
1.7 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified each year 
1.8 	for each taxing district within each unique taxing jurisdiction for taxes payable in the prior 
1.9 	year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class 
1.10 	rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity 
1.11 	using the class rates for taxes payable in the year prior to that for which aid is being 
1.12 	computed, both based upon market values for taxes payable in the year prior to that for 
1.13 	which aid is being computed. If the commissioner determines that insufficient information 
1.14 	is available to reasonably and timely calculate the numerator in this ratio for the first taxes 
1.15 	payable year that a class rate change or new class rate is effective, the commissioner 
1.16 	shall omit the effects of that class rate change or new class rate when calculating this 
1.17 	ratio for aid payable in that taxes payable year. For aid payable in the year following a 
1.18 	year for which such omission was made, the commissioner shall use in the denominator 
1.19 	for the class that was changed or created, the tax capacity for taxes payable two years 
1.20 	prior to that in which the aid is payable, based on market values for taxes payable in the 
1.21 	year prior to that for which aid is being computed is 50 percent of the amount certified 
1.22 	for taxes payable in 2011.

2.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and 
2.2 	thereafter.