1.1 	A bill for an act
1.2 	relating to taxation; property; reducing the state general levy for historic 
1.3 	commercial buildings;amending Minnesota Statutes 2008, section 273.13, by 
1.4 	adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 273.13, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 24b.Preservation of historic commercial buildings. (a) Commercial 
1.9 	property classified as class 3a or class 3b under subdivision 24 qualifies for tax treatment 
1.10 	under this subdivision, provided that:
1.11 	(1) the property is located in a city outside the metropolitan area, as defined under 
1.12 	section 473.121, subdivision 2;
1.13 	(2) the property is located in a city that has a population of less than 50,000, as 
1.14 	defined under section 477A.011, subdivision 3;
1.15 	(3) the property contains a structure originally constructed over 50 years ago; and
1.16 	(4) the property is located within a city where the city council has defined a 
1.17 	"downtown area." A downtown area must consist of contiguous parcels of property with 
1.18 	at least 50 percent of the parcels containing structures that were originally constructed 
1.19 	before 1950.
1.20 	(b) For properties qualifying under this subdivision, the first tier of market value, as 
1.21 	defined under subdivision 24, paragraph (a), clause (1), shall be exempt from the state 
1.22 	general levy under section 275.025, and the remaining market value shall be assigned a 
1.23 	class rate of one percent in computing the state general levy. 
2.1 	(c) The city council of each participating city must file a map of its downtown area 
2.2 	with the county assessor by July 1 of the first assessment year that the city intends to 
2.3 	participate. If the boundaries of the downtown area are subsequently changed, a revised 
2.4 	map must be filed with the county assessor by July 1 in order for the new boundaries to be 
2.5 	in effect for taxes payable in the following year.

2.6 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
2.7 	thereafter. Notwithstanding the date specified in paragraph (c), if a city intends to 
2.8 	participate for taxes payable in 2010, the council has until September 1, 2009, to notify 
2.9 	and file a map with the county assessor.