1.1 	A bill for an act
1.2 	relating to property taxes; exempting noncommercial
1.3 	seasonal recreational property from the state property
1.4 	tax; amending Minnesota Statutes 2004, section
1.5 	275.025, subdivisions 1, 2, 4; repealing Minnesota
1.6 	Statutes 2004, section 275.025, subdivision 3.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 275.025,
1.9 	subdivision 1, is amended to read:
1.10 		Subdivision 1.Levy amount.  The state general levy is
1.11 	levied against commercial-industrial property ~~and seasonal~~
1.12 	~~residential recreational property~~, as defined in this section.
1.13 	The state general levy base amount is $592,000,000 for taxes
1.14 	payable in 2002.  For taxes payable in subsequent years, the
1.15 	levy base amount is increased each year by multiplying the levy
1.16 	base amount for the prior year by the sum of one plus the rate
1.17 	of increase, if any, in the implicit price deflator for
1.18 	government consumption expenditures and gross investment for
1.19 	state and local governments prepared by the Bureau of Economic
1.20 	Analysts of the United States Department of Commerce for the
1.21 	12-month period ending March 31 of the year prior to the year
1.22 	the taxes are payable.  The tax under this section is not
1.23 	treated as a local tax rate under section 469.177 and is not the
1.24 	levy of a governmental unit under chapters 276A and 473F.
1.25 	The commissioner shall increase or decrease the preliminary
1.26 	or final rate for a year as necessary to account for errors and
2.1 	tax base changes that affected a preliminary or final rate for
2.2 	either of the two preceding years.  Adjustments are allowed to
2.3 	the extent that the necessary information is available to the
2.4 	commissioner at the time the rates for a year must be certified,
2.5 	and for the following reasons:
2.6 	(1) an erroneous report of taxable value by a local
2.7 	official;
2.8 	(2) an erroneous calculation by the commissioner; and
2.9 	(3) an increase or decrease in taxable value for
2.10 	commercial-industrial or seasonal residential recreational
2.11 	property reported on the abstracts of tax lists submitted under
2.12 	section 275.29 that was not reported on the abstracts of
2.13 	assessment submitted under section 270.11, subdivision 2, for
2.14 	the same year.
2.15 	The commissioner may, but need not, make adjustments if the
2.16 	total difference in the tax levied for the year would be less
2.17 	than $100,000.
2.18 	
EFFECTIVE DATE. This section is effective for taxes
2.19 	payable in 2006 and subsequent years.

2.20 	Sec. 2. Minnesota Statutes 2004, section 275.025,
2.21 	subdivision 2, is amended to read:
2.22 		Subd. 2.Commercial-industrial tax capacity.  For the
2.23 	purposes of this section, "commercial-industrial tax capacity"
2.24 	means the tax capacity of all taxable property classified as
2.25 	class 3, commercial class 4c (1),or class 5(1) under section
2.26 	273.13, except for electric generation attached machinery under
2.27 	class 3 and property described in section 473.625.  County
2.28 	commercial-industrial tax capacity amounts are not adjusted for
2.29 	the captured net tax capacity of a tax increment financing
2.30 	district under section 469.177, subdivision 2, the net tax
2.31 	capacity of transmission lines deducted from a local
2.32 	government's total net tax capacity under section 273.425, or
2.33 	fiscal disparities contribution and distribution net tax
2.34 	capacities under chapter 276A or 473F.
2.35 	
EFFECTIVE DATE. This section is effective for taxes
2.36 	payable in 2006 and subsequent years.

3.1 	Sec. 3. Minnesota Statutes 2004, section 275.025,
3.2 	subdivision 4, is amended to read:
3.3 		Subd. 4.Apportionment and levy of state general tax.
 3.4 	The state general tax must be distributed among the counties by
3.5 	applying a uniform rate to each county's commercial-industrial
3.6 	tax capacity ~~and its seasonal residential recreational tax~~
3.7 	~~capacity~~.  Within each county, the tax must be levied by
3.8 	applying a uniform rate against commercial-industrial tax
3.9 	capacity ~~and seasonal residential recreational tax capacity~~.  On
3.10 	or before October 1 each year, the commissioner of revenue shall
3.11 	certify a preliminary state general levy rate to each county
3.12 	auditor that must be used to prepare the notices of proposed
3.13 	property taxes for taxes payable in the following year.  By
3.14 	January 1 of each year, the commissioner shall certify the final
3.15 	state general levy rate to each county auditor that shall be
3.16 	used in spreading taxes.
3.17 	
EFFECTIVE DATE. This section is effective for taxes
3.18 	payable in 2006 and subsequent years.

3.19 	Sec. 4. REPEALER.
 3.20 	Minnesota Statutes 2004, section 275.025, subdivision 3, is
3.21 	repealed.

3.22 	EFFECTIVE DATE. This section is effective for taxes
3.23 	payable in 2006 and subsequent years.