1.1 	A bill for an act
1.2 	relating to state government finance; governing taxation and safety of railroads 
1.3 	and pipelines; amending property taxes on railroads; eliminating sunset on 
1.4 	assessment of railroads and pipeline companies; appropriating funds for certain 
1.5 	railroad crossing improvements;amending Minnesota Statutes 2014, sections 
1.6 	270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1, 
1.7 	3, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 
1.8 	270.87; 272.02, subdivision 9; 275.025, subdivisions 1, 4; 299A.55, subdivision 
1.9 	4; repealing Minnesota Statutes 2014, sections 270.81, subdivision 4; 270.83, 
1.10 	subdivision 3; Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 
1.11 	10, 12, 13, 14, 17, 17a, 18, 19, 20, 21; 8106.0300, subparts 1, 3; 8106.0400; 
1.12 	8106.0500; 8106.0600; 8106.0700; 8106.0800; 8106.9900.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	OIL AND HAZARDOUS MATERIALS TRANSPORTATION SAFETY

1.16 	Section 1. Minnesota Statutes 2014, section 299A.55, subdivision 4, is amended to read:
1.17 		Subd. 4.Assessments. (a) The commissioner of public safety shall annually assess 
1.18 	$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph 
1.19 	(b). The commissioner shall deposit funds collected under this subdivision in the railroad 
1.20 	and pipeline safety account under subdivision 2.
1.21 	(b) The assessment for each railroad is 50 percent of the total annual assessment 
1.22 	amount, divided in equal proportion between applicable rail carriers based on route miles 
1.23 	operated in Minnesota. The assessment for each pipeline company is 50 percent of the 
1.24 	total annual assessment amount, divided in equal proportion between companies based 
1.25 	on the yearly aggregate gallons of oil and hazardous substance transported by pipeline 
1.26 	in Minnesota.
1.27 	(c) The assessments under this subdivision expire July 1, 2017.

2.1 	Sec. 2. RAILROAD AT-GRADE CROSSING IMPROVEMENTS; 
2.2 	APPROPRIATIONS.
 2.3 	(a) $11,034,000 in fiscal year 2016 and $22,876,000 in fiscal year 2017 are 
2.4 	appropriated from the general fund to the commissioner of transportation for highway 
2.5 	rail at-grade crossing safety improvement projects related to oil and other hazardous 
2.6 	materials transported by rail, excluding grade separation projects, as identified in the 
2.7 	legislative report under Laws 2014, chapter 312, article 10, section 10. Notwithstanding 
2.8 	Minnesota Statutes, section 16A.28, this appropriation is available for three years after 
2.9 	the year of appropriation.
2.10 	(b) The base appropriation for projects under this section is $23,000,000 each year.

2.11 	ARTICLE 2
2.12 	RAILROAD RECODIFICATION

2.13 	Section 1. Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:
2.14 		Subdivision 1.Applicability. The following words and phrases when used 
2.15 	in sections 270.80 273.3712 to 270.87 273.3719, unless the context clearly indicates 
2.16 	otherwise, have the meanings ascribed to them in this section.

2.17 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
2.18 	thereafter.

2.19 	Sec. 2. Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:
2.20 		Subd. 2.Railroad company. "Railroad company" means:
2.21 	(1) any company which as a common carrier operates a railroad or a line or lines of 
2.22 	railway railroad situated within or partly within Minnesota; or
2.23 	(2) any company owning or operating, other than as a common carrier, a railway 
2.24 	principally used for transportation of taconite concentrates from the plant at which the 
2.25 	taconite concentrates are produced in shipping form to a point of consumption or port 
2.26 	for shipment beyond the state; or
2.27 	(3) any company that produces concentrates from taconite and transports that 
2.28 	taconite in the course of the concentrating process and before the concentrating process is 
2.29 	completed to a concentrating plant located within the state over a railroad that is not a 
2.30 	common carrier and shall does not use a common carrier or taconite railroad company as 
2.31 	defined in clause (2) for the movement of the concentrate to a point of consumption or 
2.32 	port for shipment beyond the state.

3.1 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
3.2 	thereafter.

3.3 	Sec. 3. Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:
3.4 		Subd. 3.Operating property. "Operating property" means all property owned 
3.5 	or used by a railroad company in the performance of railroad transportation services, 
3.6 	including without limitation franchises, rights-of-way, bridges, trestles, shops, docks, 
3.7 	wharves, buildings and structures. but not limited to roads, locomotives, freight cars, 
3.8 	and improvements on leased property. Operating property is listed and assessed by the 
3.9 	commissioner where the property is located.

3.10 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
3.11 	thereafter.

3.12 	Sec. 4. Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:
3.13 		Subd. 4.Nonoperating property. "Nonoperating property" means and includes
3.14 	all property other than property defined in subdivision 3. Nonoperating property shall 
3.15 	include includes real property which that is leased or rented, or available for lease or rent,
3.16 	to any person which that is not a railroad company. Vacant land shall be is presumed to 
3.17 	be available for lease or rent if it has not been used as operating property for a period of 
3.18 	one year immediately preceding the valuation date. Nonoperating property also includes 
3.19 	land which that is not necessary and integral to the performance of railroad transportation 
3.20 	services and which that is not used on a regular and continual basis in the performance of 
3.21 	these services. Nonoperating property also includes that portion of a general corporation 
3.22 	office building and its proportionate share of land which that is not used for railway railroad
3.23 	operation or purpose. Nonoperating property is assessed by the local or county assessor.

3.24 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
3.25 	thereafter.

3.26 	Sec. 5. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
3.27 	to read:
3.28 		Subd. 6.Company. "Company" means any corporation, limited liability company, 
3.29 	association, partnership, trust, estate, fiduciary, public or private organization of any kind, 
3.30 	or any other legal entity.

3.31 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
3.32 	thereafter.

4.1 	Sec. 6. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
4.2 	to read:
4.3 		Subd. 7.Unit value. "Unit value" means the value of the whole integrated system 
4.4 	of a railroad company operating as a going concern without regard to the value of its 
4.5 	component parts.

4.6 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
4.7 	thereafter.

4.8 	Sec. 7. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
4.9 	to read:
4.10 		Subd. 8.Book depreciation. "Book depreciation" means the accumulated 
4.11 	depreciation shown by a railroad company on its books or allowed to the company by 
4.12 	the Surface Transportation Board.

4.13 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
4.14 	thereafter.

4.15 	Sec. 8. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
4.16 	to read:
4.17 		Subd. 9.Equalization. "Equalization" means the adjustment of the estimated value 
4.18 	of railroad operating property to the apparent sales ratio of commercial and industrial 
4.19 	property.

4.20 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
4.21 	thereafter.

4.22 	Sec. 9. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
4.23 	to read:
4.24 		Subd. 10.Exempt property. "Exempt property" means property that is nontaxable 
4.25 	for ad valorem tax purposes under Minnesota Statutes, including personal property exempt 
4.26 	from taxation under chapter 272.

4.27 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
4.28 	thereafter.

4.29 	Sec. 10. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
4.30 	to read:
5.1 		Subd. 11.Original cost. "Original cost" means the amount paid for an asset 
5.2 	by the current owner, as recorded on the railroad's books or allowed by the Surface 
5.3 	Transportation Board.

5.4 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
5.5 	thereafter.

5.6 	Sec. 11. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
5.7 	to read:
5.8 		Subd. 12.System. "System" means a railroad's total real and personal property used 
5.9 	in its railroad operations.

5.10 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
5.11 	thereafter.

5.12 	Sec. 12. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
5.13 	to read:
5.14 		Subd. 13.Minnesota allocated value. "Minnesota allocated value" means the value 
5.15 	of a railroad company's operating property that is assigned to Minnesota for tax purposes.

5.16 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
5.17 	thereafter.

5.18 	Sec. 13. Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:
5.19 		Subdivision 1.Valuation of operating property. The operating property of every 
5.20 	railroad company doing business in Minnesota shall be valued by the commissioner in the 
5.21 	manner prescribed by sections 270.80 273.3712 to 270.87 273.3719.

5.22 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
5.23 	thereafter.

5.24 	Sec. 14. Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:
5.25 		Subd. 3.Determination of type of property. (a) The commissioner shall have has
5.26 	exclusive primary jurisdiction to determine what whether railroad property is operating 
5.27 	property and what is or nonoperating property. In making such the determination, the 
5.28 	commissioner shall may solicit information and opinions from outside the department 
5.29 	and afford all interested persons an opportunity to submit data or views on the subject 
5.30 	in writing or orally.
6.1 	(b) Local and county assessors may submit written requests to the commissioner, 
6.2 	asking for a determination of the nature of specific whether property owned by a 
6.3 	railroad and located within their assessing jurisdiction is operating or nonoperating. Any 
6.4 	determination made by the commissioner may be appealed by the assessor to the Tax Court 
6.5 	pursuant to chapter 271. The requests must be submitted by April 1 of the assessing year. 
6.6 	The commissioner must send the assessor a written determination by May 1. Assessors 
6.7 	may appeal determinations made by the commissioner to the Tax Court under chapter 271.

6.8 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
6.9 	thereafter.

6.10 	Sec. 15. Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision 
6.11 	to read:
6.12 		Subd. 6.Deduction for nonoperating and exempt property. Property that was 
6.13 	part of the system, but is nonoperating property or is exempt from ad valorem taxation, is 
6.14 	excluded from the Minnesota allocated value under section 273.3718, subdivision 1a. Only 
6.15 	qualifying property located in Minnesota may be deducted from the Minnesota allocated 
6.16 	value. The commissioner must deduct the market value of the property to be excluded. This 
6.17 	must be calculated by multiplying the book value of the property by the market-to-book 
6.18 	ratio of the unit. The company has the burden of proof to establish the property should 
6.19 	be excluded from the Minnesota allocated value. The railroad company must submit 
6.20 	schedules of exempt or nonoperating property as required by the commissioner. The 
6.21 	remaining amount after this deduction is the Minnesota apportionable market value.

6.22 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
6.23 	thereafter.

6.24 	Sec. 16. Minnesota Statutes 2014, section 270.82, is amended to read:
6.25 	270.82 REPORTS OF RAILROAD COMPANIES.
6.26 		Subdivision 1.Annual report required. Before March 31, every railroad company 
6.27 	doing business in Minnesota shall annually must file with the commissioner on or before 
6.28 	March 31 a an annual report under oath setting forth the information prescribed by the 
6.29 	commissioner to enable the commissioner to make the valuation and equalization required 
6.30 	by sections 270.80 273.3712 to 270.87. 273.3719. The commissioner shall prescribe the 
6.31 	content, format, and manner of the report pursuant to section 270C.30. If a report is made 
6.32 	by electronic means, the taxpayer's signature is defined under section 270C.304, except 
6.33 	that a law administered by the commissioner includes the property tax laws.
7.1 		Subd. 2.Extension of time. If the commissioner for good determines there is 
7.2 	reasonable cause, the commissioner may extend the time for filing the report required by 
7.3 	subdivision 1 for up to 15 days the time for filing the report required by subdivision 1.
7.4 		Subd. 3.Amended reports. A railroad company may file an amended report to 
7.5 	correct or add information to the original report. Amended reports must be filed with 
7.6 	the commissioner by April 30.
7.7 		Subd. 4.Failure to file reports. (a) The commissioner may make the valuation 
7.8 	provided by sections 273.3712 to 237.3719 according to the commissioner's best judgment 
7.9 	based on available information, if any railroad company does not:
7.10 	(1) make the report required by this section;
7.11 	(2) permit an inspection and examination of its property, records, books, accounts, 
7.12 	or other papers when requested by the commissioner; or
7.13 	(3) appear before the commissioner or a person appointed under section 273.3715 
7.14 	when required to do so.
7.15 	(b) If the commissioner makes the valuation under paragraph (a), the commissioner's 
7.16 	valuation is final. Notwithstanding any other law to the contrary, the commissioner's 
7.17 	valuation made under this subdivision is not administratively appealable.

7.18 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
7.19 	thereafter.

7.20 	Sec. 17. Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:
7.21 		Subdivision 1.Powers of commissioner. The commissioner shall have has the 
7.22 	power to examine or cause to be examined any books, papers, records, or memoranda 
7.23 	relevant to the determination of the valuation of operating property as herein provided. 
7.24 	The commissioner shall have the further power to may require the attendance of any 
7.25 	person having knowledge or information in the premises concerning the valuation of the 
7.26 	operating property, to compel the production of books, papers, records, or memoranda by 
7.27 	persons so required to attend, to take testimony on matters material to such determination
7.28 	determine the valuation of operating property, and administer oaths or affirmations.

7.29 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
7.30 	thereafter.

7.31 	Sec. 18. Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:
7.32 		Subd. 2.Appointment of persons; subpoenas. For the purpose of making such 
7.33 	examinations, The commissioner may appoint such persons a person as the commissioner 
8.1 	may deem deems necessary to make the examinations described in subdivision 1. Such 
8.2 	persons shall have the rights and powers of the examining of An appointed person may 
8.3 	examine books, papers, records, or memoranda, and of subpoenaing subpoena witnesses, 
8.4 	administering administer oaths and affirmations, and taking of take testimony, which are 
8.5 	conferred upon the commissioner hereby. The court administrator of any court of record, 
8.6 	upon demand of any suchappointed person, shall issue a subpoena for the attendance of 
8.7 	any witness or the production of any books, papers, records, or memoranda before such 
8.8 	person. The commissioner may also issue subpoenas for the appearance of witnesses 
8.9 	before the commissioner or before such persons. Disobedience of subpoenas so issued 
8.10 	shall be punished by the district court of the district in which the subpoena is issued for a 
8.11 	contempt of the district court. Failure to comply with a subpoena shall be punished in the 
8.12 	same manner as contempt of the district court.

8.13 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
8.14 	thereafter.

8.15 	Sec. 19. Minnesota Statutes 2014, section 270.84, is amended to read:
8.16 	270.84 ANNUAL VALUATION OF OPERATING PROPERTY.
8.17 		Subdivision 1.Annual valuation; rules. (a) Before July 1, the commissioner 
8.18 	shall annually between March 31 and May 31 make a determination of must determine
8.19 	the fair market value of the operating property of every railroad company doing business 
8.20 	in this state as of January 2 of the year in which the valuation is made. In making 
8.21 	this determination, The commissioner shall must employ generally accepted appraisal 
8.22 	principles and practices, which may include the unit method of determining value. and 
8.23 	approaches approved by the Western States Association of Tax Administrators, National 
8.24 	Conference of Unit Valuation States, and the International Association of Assessing 
8.25 	Officers.
8.26 	(b) The unit value of railroad property is the reconciled value considering the cost, 
8.27 	income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must 
8.28 	be weighted in accordance with the reliability of the information and the commissioner's 
8.29 	judgment.
8.30 		Subd. 1a.Cost approach. (a) The commissioner may use the cost approach, 
8.31 	including but not limited to original cost less book depreciation and replacement cost 
8.32 	less depreciation.
8.33 	(b) Book depreciation is allowed as a deduction from an original cost model. Book 
8.34 	depreciation is assumed to include all forms of appraisal depreciation.
9.1 	(c) Explicitly calculated appraisal depreciation, including physical, functional, and 
9.2 	external obsolescence, is allowed as a deduction from the replacement cost model.
9.3 		Subd. 1b.Income approach. (a) The commissioner may use the income approach, 
9.4 	including but not limited to direct capitalization models and yield capitalization models.
9.5 	(b) The yield rate is calculated using market data on selected comparable companies 
9.6 	in the band of investment method. Discounted cash flows is a yield capitalization model 
9.7 	that calculates the present value of explicit cash flow forecasts capitalized using the 
9.8 	yield rate, plus revision to stable growth yield capitalization after the period of explicit 
9.9 	forecasts. Stable growth yield capitalization is a yield capitalization model that calculates 
9.10 	the present value of anticipated future cash flows, capitalized using the yield rate and 
9.11 	considering growth.
9.12 	(c) Direct capitalization is the expected net operating income for the following year, 
9.13 	divided by the direct capitalization rate. The direct capitalization rate is calculated by 
9.14 	using direct market observations from comparable sales or using market earning-to-price 
9.15 	information in the band of investment method.
9.16 		Subd. 1c.Market approach. The commissioner may use the market approach, 
9.17 	including but not limited to a sales comparison model, a stock and debt model, or other 
9.18 	market models that are available and reliable.
9.19 		Subd. 2.Notice. The commissioner, after determining the fair market value of the 
9.20 	operating property of each railroad company, shall give notice to must notify the railroad 
9.21 	company of the valuation by first class mail, overnight delivery, or messenger service.

9.22 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
9.23 	thereafter.

9.24 	Sec. 20. Minnesota Statutes 2014, section 270.86, is amended to read:
9.25 	270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.
9.26 		Subdivision 1.Apportionment of value. Upon determining (a) After allocating to 
9.27 	Minnesota the fair market value of the operating property of each railroad company, the 
9.28 	commissioner shall must apportion such the value to the respective counties and to the 
9.29 	taxing districts therein in conformity with fair and reasonable rules and standards to be 
9.30 	established by the commissioner pursuant to notice and hearing, except as provided in 
9.31 	section 270.81. In establishing such rules and standards the commissioner may consider 
9.32 	(a) the physical situs of all station houses, depots, docks, wharves, and other buildings and 
9.33 	structures with an original cost in excess of $10,000; (b) the proportion that the length and 
9.34 	type of all the tracks used by the railroad in such county and taxing district bears to the 
10.1 	length and type of all the track used in the state; and (c) other facts as will result in a fair 
10.2 	and equitable apportionment of value the operating parcels in Minnesota.
10.3 	(b) The apportioned market value of each company's operating parcel in Minnesota 
10.4 	is the current original cost of each parcel as of the last assessment date plus original cost 
10.5 	of new construction minus the original cost of property retired since the last assessment 
10.6 	date. The total Minnesota apportionable market value of the railroad is divided by the 
10.7 	total current original cost of the railroad in Minnesota to determine a percentage. The 
10.8 	resulting percentage is multiplied by the current original cost of each parcel to determine 
10.9 	the apportioned market value of each parcel.
10.10 		Subd. 1a.Allocation of value. (a) After the market value of operating property has 
10.11 	been estimated, the portion of value that is attributable to Minnesota must be determined 
10.12 	by calculating an allocation percentage using factors relevant to the industry segment of 
10.13 	the railroad company. The allocation percentage must be multiplied by the value of the 
10.14 	operating property to determine the Minnesota allocated value.
10.15 	(b) The Minnesota allocated value is determined by averaging the following factors:
10.16 	(1) miles of railroad track operated in Minnesota divided by miles of railroad track 
10.17 	operated in all states;
10.18 	(2) ton miles of revenue freight transported in Minnesota divided by ton miles of 
10.19 	revenue freight transported in all states;
10.20 	(3) gross revenues from transportation operations within Minnesota divided by gross 
10.21 	revenues from transportation operations in all states; and
10.22 	(4) cost of railroad property in Minnesota divided by cost of railroad property in 
10.23 	all states.
10.24 	(c) Each of the available factors must be weighted equally.
10.25 		Subd. 2.Equalized valuation. After making the apportionment provided in 
10.26 	subdivision 1, the commissioner shall must determine the equalized valuation of the 
10.27 	operating property in each county by applying to the apportioned value an estimated 
10.28 	current year median sales ratio for all commercial and industrial property in that county. If 
10.29 	the commissioner decides determines there are insufficient sales to determine a median 
10.30 	commercial-industrial sales ratio, an estimated current year countywide median sales ratio 
10.31 	for all property shall must be applied to the apportioned value. No equalization shall
10.32 	Equalization must not be made to the market value of the operating property if the median 
10.33 	sales ratio determined pursuant to this subdivision is within five at least 90 but less than 
10.34 	105 percent of the assessment ratio of the railroad operating property.

10.35 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
10.36 	thereafter.

11.1 	Sec. 21. Minnesota Statutes 2014, section 270.87, is amended to read:
11.2 	270.87 CERTIFICATION TO COUNTY ASSESSORS.
11.3 	After making an annual determination of the equalized fair market value of the 
11.4 	operating property of each company in each of the respective counties, and in the taxing 
11.5 	districts therein, The commissioner shall must certify the equalized fair market value of 
11.6 	the operating property to the county assessor on or before June 30 August 1. The equalized 
11.7 	fair market value of the operating property of the railroad company in the county and the 
11.8 	taxing districts therein is the value on which taxes must be levied and collected in the 
11.9 	same manner as on the commercial and industrial property of such county and the taxing 
11.10 	districts therein in the counties and taxing districts. If the commissioner determines that
11.11 	the equalized fair market value certified on or before June 30 August 1 is in error, the 
11.12 	commissioner may issue a corrected certification on or before August 31 October 1. The 
11.13 	commissioner may correct errors that are merely clerical in nature until December 31.

11.14 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
11.15 	thereafter.

11.16 	Sec. 22. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
11.17 		Subd. 9.Personal property; exceptions. (a) Except for the taxable personal 
11.18 	property enumerated below, all personal property and the property described in section 
11.19 	272.03, subdivision 1, paragraphs (c) and (d), shall be exempt.
11.20 	(b) The following personal property shall be taxable:
11.21 	(a) (1) personal property which is part of an electric generating, transmission, or 
11.22 	distribution system or a pipeline system transporting or distributing water, gas, crude 
11.23 	oil, or petroleum products or mains and pipes used in the distribution of steam or hot or 
11.24 	chilled water for heating or cooling buildings and structures;
11.25 	(b) railroad docks and wharves which are part of the(2) personal property that is part 
11.26 	of the operating property of a railroad company, as defined in section 270.80 273.3712;
11.27 	(c) (3) personal property defined in section 272.03, subdivision 2, clause (3);
11.28 	(d) (4) leasehold or other personal property interests which are taxed pursuant to 
11.29 	section 272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any 
11.30 	other law providing the property is taxable as if the lessee or user were the fee owner;
11.31 	(e) (5) manufactured homes and sectional structures, including storage sheds, decks, 
11.32 	and similar removable improvements constructed on the site of a manufactured home, 
11.33 	sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 
11.34 	8, paragraph (f); and
12.1 	(f) (6) flight property as defined in section 270.071.

12.2 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
12.3 	thereafter.

12.4 	Sec. 23. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
12.5 		Subdivision 1.Levy amount. The state general levy is levied against 
12.6 	commercial-industrial property and seasonal residential recreational property, as defined in 
12.7 	this section. The state general levy base amount is $592,000,000 $889,600,000 for taxes 
12.8 	payable in 2002 2016. For taxes payable in subsequent years, the levy base amount is 
12.9 	increased each year by multiplying the levy base amount for the prior year by the sum 
12.10 	of one plus the rate of increase, if any, in the implicit price deflator for government 
12.11 	consumption expenditures and gross investment for state and local governments prepared 
12.12 	by the Bureau of Economic Analysts of the United States Department of Commerce for 
12.13 	the 12-month period ending March 31 of the year prior to the year the taxes are payable. 
12.14 	The tax under this section is not treated as a local tax rate under section 469.177 and is not 
12.15 	the levy of a governmental unit under chapters 276A and 473F.
12.16 	The commissioner shall increase or decrease the preliminary or final rate for a year 
12.17 	as necessary to account for errors and tax base changes that affected a preliminary or final 
12.18 	rate for either of the two preceding years. Adjustments are allowed to the extent that the 
12.19 	necessary information is available to the commissioner at the time the rates for a year must 
12.20 	be certified, and for the following reasons:
12.21 	(1) an erroneous report of taxable value by a local official;
12.22 	(2) an erroneous calculation by the commissioner; and
12.23 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
12.24 	residential recreational property reported on the abstracts of tax lists submitted under 
12.25 	section 275.29 that was not reported on the abstracts of assessment submitted under 
12.26 	section 270C.89 for the same year.
12.27 	The commissioner may, but need not, make adjustments if the total difference in the tax 
12.28 	levied for the year would be less than $100,000.

12.29 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
12.30 	thereafter.

12.31 	Sec. 24. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
12.32 		Subd. 4.Apportionment and levy of state general tax. Ninety-five 95.1 percent of 
12.33 	the state general tax must be levied by applying a uniform rate to all commercial-industrial 
13.1 	tax capacity and five 4.9 percent of the state general tax must be levied by applying a 
13.2 	uniform rate to all seasonal residential recreational tax capacity. On or before October 1 
13.3 	each year, the commissioner of revenue shall certify the preliminary state general levy 
13.4 	rates to each county auditor that must be used to prepare the notices of proposed property 
13.5 	taxes for taxes payable in the following year. By January 1 of each year, the commissioner 
13.6 	shall certify the final state general levy rate to each county auditor that shall be used 
13.7 	in spreading taxes.

13.8 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
13.9 	thereafter.

13.10 	Sec. 25. APPROPRIATIONS.
 13.11 	The following sums are appropriated from the general fund to the agency to 
13.12 	implement the provisions of this article as follows: $266,000 in fiscal year 2016, $14,000 
13.13 	in fiscal year 2017, $13,000 in fiscal year 2018, and $11,000 in fiscal year 2019. The sums 
13.14 	indicated in this section for fiscal years 2016, 2017, and 2018 are onetime appropriations 
13.15 	and are not added to the agency's permanent base. The sum indicated in this section for 
13.16 	fiscal year 2019 shall become part of the agency's base.

13.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.18 	Sec. 26. REVISOR'S INSTRUCTION.
 13.19 	The revisor of statutes shall renumber the provisions of Minnesota Statutes listed 
13.20 	in column A to the references listed in column B. The revisor shall also make necessary 
13.21 	cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with 
13.22 	renumbering.

13.23		Column A
	Column B
	
13.24		270.80
	273.3712
	
13.25		270.81
	273.3713
	
13.26		270.82
	273.3714
	
13.27		270.83
	273.3715
	
13.28		270.84
	273.3716
	
13.29		270.85
	273.3717
	
13.30		270.86
	273.3718
	
13.31		270.87
	273.3719

13.32 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
13.33 	thereafter.

14.1 	Sec. 27.  REPEALER.
 14.2 	Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
14.3 	and Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 
14.4 	17a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600; 
14.5 	8106.0700; 8106.0800; and 8106.9900, are repealed.

14.6 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
14.7 	thereafter.