1.1 	A bill for an act
1.2 	relating to taxation; property; extending the limited
1.3 	market value provisions for five additional years for
1.4 	certain property; providing different limited market
1.5 	value maximum increases based on a property's market
1.6 	value; excluding certain property from the limitation;
1.7 	amending Minnesota Statutes 2004, section 273.11,
1.8 	subdivision 1a.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 273.11,
1.11 	subdivision 1a, is amended to read:
1.12 		Subd. 1a.Limited market value. (a) In the case of all
1.13 	property classified as agricultural homestead ~~or nonhomestead,~~
1.14 	~~residential homestead or nonhomestead~~, agricultural
1.15 	nonhomestead, or timber, ~~or noncommercial seasonal residential~~
1.16 	~~recreational,~~the assessor shall compare the value with the
1.17 	taxable portion of the value determined in the preceding
1.18 	assessment.
1.19 	~~For assessment year 2002, the amount of the increase shall~~
1.20 	~~not exceed the greater of (1) ten percent of the value in the~~
1.21 	~~preceding assessment, or (2) 15 percent of the difference~~
1.22 	~~between the current assessment and the preceding assessment.~~
1.23 	~~For assessment year 2003, the amount of the increase shall~~
1.24 	~~not exceed the greater of (1) 12 percent of the value in the~~
1.25 	~~preceding assessment, or (2) 20 percent of the difference~~
1.26 	~~between the current assessment and the preceding assessment.~~
1.27 	For assessment year 2004, the amount of the increase shall
2.1 	not exceed the greater of (1) 15 percent of the value in the
2.2 	preceding assessment, or (2) 25 percent of the difference
2.3 	between the current assessment and the preceding assessment.
2.4 	For assessment year 2005, the amount of the increase shall
2.5 	not exceed the greater of (1) 15 percent of the value in the
2.6 	preceding assessment, or (2) 33 percent of the difference
2.7 	between the current assessment and the preceding assessment.
2.8 	For assessment year 2006, the amount of the increase shall
2.9 	not exceed the greater of (1) 15 percent of the value in the
2.10 	preceding assessment, or (2) 50 percent of the difference
2.11 	between the current assessment and the preceding assessment.
2.12 	(b) In the case of all property classified as residential
2.13 	homestead, residential nonhomestead, or noncommercial seasonal
2.14 	residential recreational, the assessor shall compare the value
2.15 	with the taxable portion of the value as determined in the
2.16 	preceding assessment.
2.17 	For assessment years 2005 through 2011, the amount of the
2.18 	increase shall not exceed:
2.19 	(1) 11 percent of the value in the preceding assessment, if
2.20 	the taxable value in the preceding assessment was less than
2.21 	$325,000 market value; or 
2.22 	(2) 25 percent of the value in the preceding assessment if
2.23 	the taxable value in the preceding assessment is equal to or
2.24 	greater than $325,000 market value but less than $750,000 market
2.25 	value.
2.26 	(c) ~~This limitation~~ The limitations in paragraphs (a) and
2.27 	(b) shall not apply to increases in value due to improvements.
2.28 	For purposes of this subdivision, the term "assessment" means
2.29 	the value prior to any exclusion under subdivision 16.
2.30 	The provisions of this subdivision shall be in effect
2.31 	through assessment year 2006 ~~as provided in this subdivision~~ for
2.32 	paragraph (a) and through assessment year 2011 for paragraph (b).
2.33 	For purposes of the assessment/sales ratio study conducted
2.34 	under section 127A.48, and the computation of state aids paid
2.35 	under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and
2.36 	477A, market values and net tax capacities determined under this
3.1 	subdivision and subdivision 16, shall be used.
3.2 	
EFFECTIVE DATE. This section is effective for assessment
3.3 	year 2005, for taxes payable in 2006, and thereafter.