1.1 	A bill for an act
1.2 	relating to education finance; increasing the referendum equalization levy factor;
1.3 	amending Minnesota Statutes 2004, sections 126C.10, subdivisions 29, 32; 
1.4 	126C.17, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 126C.10, subdivision 29, is amended to 
1.7 	read:
1.8 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year years 2005 and later
1.9 	2006, a district may levy an amount not more than the product of its equity revenue for the 
1.10 	fiscal year times the lesser of one or the ratio of its referendum market value per resident 
1.11 	marginal cost pupil unit to $476,000. To obtain equity revenue for fiscal year 2007 and 
1.12 	later, a district may levy an amount not more than the product of its equity revenue for 
1.13 	the fiscal year times the lesser of one or the ratio of its referendum market value per 
1.14 	resident marginal cost pupil unit to $750,000.

1.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2006.

1.16 	Sec. 2. Minnesota Statutes 2004, section 126C.10, subdivision 32, is amended to read:
1.17 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year years 2005 
1.18 	and later 2006, a district may levy an amount not more than the product of its transition 
1.19 	revenue for the fiscal year times the lesser of one or the ratio of its referendum market 
1.20 	value per resident marginal cost pupil unit to $476,000. To obtain transition revenue for 
1.21 	fiscal year 2007 and later, a district may levy an amount not more than the product of its 
1.22 	transition revenue for the fiscal year times the lesser of one or the ratio of its referendum 
1.23 	market value per resident marginal cost pupil unit to $750,000.

2.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2006.

2.2 	Sec. 3. Minnesota Statutes 2004, section 126C.17, subdivision 6, is amended to read:
2.3 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later, 
2.4 	a district's referendum equalization levy equals the sum of the first tier referendum 
2.5 	equalization levy and the second tier referendum equalization levy.
2.6 	(b) For fiscal years 2005 and 2006, a district's first tier referendum equalization levy 
2.7 	equals the district's first tier referendum equalization revenue times the lesser of one or 
2.8 	the ratio of the district's referendum market value per resident marginal cost pupil unit 
2.9 	to $476,000. For fiscal year 2007 and later, a district's first tier referendum equalization 
2.10 	levy equals the district's first tier referendum equalization revenue times the lesser of one 
2.11 	or the ratio of the district's referendum market value per resident marginal cost pupil 
2.12 	unit to $750,000.
2.13 	(c) For fiscal year 2005 and later, a district's second tier referendum equalization 
2.14 	levy equals the district's second tier referendum equalization revenue times the lesser 
2.15 	of one or the ratio of the district's referendum market value per resident marginal cost 
2.16 	pupil unit to $270,000.

2.17 	EFFECTIVE DATE. This section is effective for taxes payable in 2006.