1.1 	A bill for an act
1.2 	relating to property taxation; eliminating all property tax aid and credit programs 
1.3 	except those paid directly to the taxpayer; enhancing the homeowner property tax 
1.4 	refund program; terminating all maintenance of effort requirements; abolishing 
1.5 	prohibition against local sales taxes; eliminating metro and iron range fiscal 
1.6 	disparities programs; repealing levy limits; repealing green acres, rural preserves, 
1.7 	and metropolitan agricultural preserves;amending Minnesota Statutes 2010, 
1.8 	sections 275.77, by adding a subdivision; 290A.04, subdivisions 2, 4; repealing 
1.9 	Minnesota Statutes 2010, sections 6.91, subdivision 4; 40A.151, subdivision 2; 
1.10 	40A.152, subdivision 2; 69.021, subdivisions 4, 5, 6, 7, 7a, 8, 9, 10, 11; 270C.19, 
1.11 	subdivision 4; 273.111, subdivisions 1, 2, 3, 3a, 4, 5, 8, 9, 9a, 10, 11, 11a, 12, 
1.12 	13, 14, 15, 16; 273.113; 273.114; 273.119; 273.1233, subdivision 3; 273.1234; 
1.13 	273.135, subdivisions 1, 2, 3, 5; 273.1384; 273.1385; 273.1391, subdivisions 
1.14 	1, 2, 3, 4, 5; 273.1398, subdivisions 1, 2d, 3, 3a, 4, 4b, 6, 8; 275.295; 275.70; 
1.15 	275.71, subdivisions 1, 2, 4, 5, 6; 275.72; 275.73; 275.74; 275.75; 275.77, 
1.16 	subdivision 2; 276A.01; 276A.02; 276A.03; 276A.04; 276A.05; 276A.06; 
1.17 	276A.07; 276A.08; 276A.09; 290C.07; 290C.08; 298.018; 298.285; 423A.02; 
1.18 	473F.001; 473F.01; 473F.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 
1.19 	21, 22, 23, 24; 473F.03; 473F.05; 473F.06; 473F.07; 473F.08, subdivisions 1, 2, 
1.20 	3, 3a, 3b, 4, 5, 5a, 6, 7a, 8a, 10; 473F.09; 473F.10; 473F.11; 473F.13, subdivision 
1.21 	1; 473H.01; 473H.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 473H.03; 473H.04; 
1.22 	473H.05, subdivisions 1, 2, 4; 473H.06; 473H.07; 473H.08; 473H.09; 473H.10; 
1.23 	473H.11; 473H.12; 473H.14; 473H.15; 473H.16; 473H.17; 473H.18; 477A.011, 
1.24 	subdivisions 1, 1a, 1b, 2a, 3, 19, 20, 21, 27, 29, 30, 31, 32, 33, 34, 35, 36, 38, 
1.25 	39, 40, 41, 42, 43; 477A.0124; 477A.013, subdivisions 1, 8, 9, 10; 477A.0133; 
1.26 	477A.014, subdivisions 1, 2, 3; 477A.015; 477A.016; 477A.03, subdivisions 2, 
1.27 	2a, 2b; 477A.11; 477A.12; 477A.13; 477A.14; 477A.145; 477A.15; 477A.16; 
1.28 	477A.17.
1.29 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.30 	Section 1. Minnesota Statutes 2010, section 275.77, is amended by adding a 
1.31 	subdivision to read:
1.32 		Subd. 3.Termination of maintenance of effort requirements. Notwithstanding 
1.33 	any other provision of law, all maintenance of effort or matching fund requirements shall 
2.1 	cease to be effective after December 31, 2011, except in those cases where the spending 
2.2 	is required by federal law and there would be a cost to the state budget without the 
2.3 	requirement.

2.4 	EFFECTIVE DATE. This section is effective January 1, 2012.

2.5 	Sec. 2. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:
2.6 		Subd. 2.Homeowners. A claimant whose property taxes payable are in excess 
2.7 	of the percentage of the household income stated below shall pay an amount equal to 
2.8 	the percent of income shown for the appropriate household income level along with the 
2.9 	percent to be paid by the claimant of the remaining amount of property taxes payable. 
2.10 	The state refund equals the amount of property taxes payable that remain, up to the state 
2.11 	refund amount shown below.

2.12
2.13
2.14	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund

2.15	$0 to 1,189
	1.0 percent
	15 percent
	$
	1,850
	
2.16	1,190 to 2,379
	1.1 percent
	15 percent
	$
	1,850
	
2.17	2,380 to 3,589
	1.2 percent
	15 percent
	$
	1,800
	
2.18	3,590 to 4,789
	1.3 percent
	20 percent
	$
	1,800
	
2.19	4,790 to 5,979
	1.4 percent
	20 percent
	$
	1,730
	
2.20	5,980 to 8,369
	1.5 percent
	20 percent
	$
	1,730
	
2.21	8,370 to 9,559
	1.6 percent
	25 percent
	$
	1,670
	
2.22	9,560 to 10,759
	1.7 percent
	25 percent
	$
	1,670
	
2.23	10,760 to 11,949
	1.8 percent
	25 percent
	$
	1,610
	
2.24	11,950 to 13,139
	1.9 percent
	30 percent
	$
	1,610
	
2.25	13,140 to 14,349
	2.0 percent
	30 percent
	$
	1,540
	
2.26	14,350 to 16,739
	2.1 percent
	30 percent
	$
	1,540
	
2.27	16,740 to 17,929
	2.2 percent
	35 percent
	$
	1,480
	
2.28	17,930 to 19,119
	2.3 percent
	35 percent
	$
	1,480
	
2.29	19,120 to 20,319
	2.4 percent
	35 percent
	$
	1,420
	
2.30	20,320 to 25,099
	2.5 percent
	40 percent
	$
	1,420
	
2.31	25,100 to 28,679
	2.6 percent
	40 percent
	$
	1,360
	
2.32	28,680 to 35,849
	2.7 percent
	40 percent
	$
	1,360
	
2.33	35,850 to 41,819
	2.8 percent
	45 percent
	$
	1,240
	
2.34	41,820 to 47,799
	3.0 percent
	45 percent
	$
	1,240
	
2.35	47,800 to 53,779
	3.2 percent
	45 percent
	$
	1,110
	
2.36	53,780 to 59,749
	3.5 percent
	50 percent
	$
	990
	
2.37	59,750 to 65,729
	3.5 percent
	50 percent
	$
	870
	
2.38	65,730 to 69,319
	3.5 percent
	50 percent
	$
	740
	
2.39	69,320 to 71,719
	3.5 percent
	50 percent
	$
	610
	
3.1	71,720 to 74,619
	3.5 percent
	50 percent
	$
	500
	
3.2	74,620 to 77,519
	3.5 percent
	50 percent
	$
	370

3.3
3.4
3.5	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund

3.6	$0 to 1,519
	1.0 percent
	15 percent
	$
	2,610
	
3.7	1,520 to 3,049
	1.1 percent
	15 percent
	$
	2,610
	
3.8	3,050 to 4,599
	1.2 percent
	15 percent
	$
	2,530
	
3.9	4,600 to 6,129
	1.3 percent
	20 percent
	$
	2,530
	
3.10	6,130 to 7,659
	1.4 percent
	20 percent
	$
	2,430
	
3.11	7,660 to 10,719
	1.5 percent
	20 percent
	$
	2,430
	
3.12	10,720 to 12,239
	1.6 percent
	25 percent
	$
	2,350
	
3.13	12,240 to 13,779
	1.7 percent
	25 percent
	$
	2,350
	
3.14	13,780 to 15,299
	1.8 percent
	25 percent
	$
	2,270
	
3.15	15,300 to 16,819
	1.9 percent
	30 percent
	$
	2,270
	
3.16	16,820 to 18,369
	2.0 percent
	30 percent
	$
	2,170
	
3.17	18,370 to 21,429
	2.1 percent
	30 percent
	$
	2,170
	
3.18	21,430 to 22,949
	2.2 percent
	35 percent
	$
	2,080
	
3.19	22,950 to 24,479
	2.3 percent
	35 percent
	$
	2,080
	
3.20	24,480 to 26,009
	2.4 percent
	35 percent
	$
	2,000
	
3.21	26,010 to 32,129
	2.5 percent
	40 percent
	$
	2,000
	
3.22	32,130 to 45,899
	2.5 percent
	40 percent
	$
	1,910
	
3.23	45,900 to 61,199
	2.5 percent
	45 percent
	$
	1,750
	
3.24	61,200 to 68,849
	2.5 percent
	45 percent
	$
	1,560
	
3.25	68,850 to 76,489
	2.5 percent
	50 percent
	$
	1,400
	
3.26	76,490 to 84,149
	2.5 percent
	50 percent
	$
	1,220
	
3.27	84,150 to 88,749
	2.5 percent
	50 percent
	$
	1,050
	
3.28	88,750 to 91,819
	2.5 percent
	50 percent
	$
	860
	
3.29	91,820 to 95,529
	2.5 percent
	50 percent
	$
	700
	
3.30	95,530 to 99,239
	2.5 percent
	50 percent
	$
	520
	
3.31 	The payment made to a claimant shall be the amount of the state refund calculated 
3.32 	under this subdivision. No payment is allowed if the claimant's household income is 
3.33 	$77,520 $99,240 or more.

3.34 	EFFECTIVE DATE. This section is effective beginning with refunds based on 
3.35 	taxes payable in 2012.

3.36 	Sec. 3. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
3.37 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in 
3.38 	calendar year 2002, the commissioner shall annually adjust the dollar amounts of the 
3.39 	income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. 
4.1 	The commissioner shall make the inflation adjustments in accordance with section 1(f) of 
4.2 	the Internal Revenue Code, except that for purposes of this subdivision the percentage 
4.3 	increase shall be determined as provided in this subdivision.
4.4 	(b) In adjusting the dollar amounts of the income thresholds and the maximum 
4.5 	refunds under subdivision 2 for inflation, the percentage increase shall be determined from 
4.6 	the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that 
4.7 	in which the refund is payable.
4.8 	(c) In adjusting the dollar amounts of the income thresholds and the maximum 
4.9 	refunds under subdivision 2a for inflation, the percentage increase shall be determined 
4.10 	from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding 
4.11 	that in which the refund is payable. 
4.12 	(d) The commissioner shall use the appropriate percentage increase to annually 
4.13 	adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for 
4.14 	inflation without regard to whether or not the income tax brackets are adjusted for inflation 
4.15 	in that year. The commissioner shall round the thresholds and the maximum amounts, 
4.16 	as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall 
4.17 	round it up to the next $10 amount.
4.18 	(e) The commissioner shall annually announce the adjusted refund schedule at the 
4.19 	same time provided under section 290.06. The determination of the commissioner under 
4.20 	this subdivision is not a rule under the Administrative Procedure Act.

4.21 	EFFECTIVE DATE. This section is effective beginning for refunds based on 
4.22 	taxes payable in 2013.

4.23 	Sec. 4. REVISOR'S INSTRUCTION.
 4.24 	The revisor of statutes shall remove from Minnesota Statutes and Minnesota Rules 
4.25 	all references to the sections repealed in section 5. The revisor shall also remove text and 
4.26 	calculations relating to the repealed sections.
4.27 	In sections affected by this instruction, the revisor may make changes necessary 
4.28 	to correct the punctuation, grammar, or structure of the remaining text and preserve its 
4.29 	meaning. If text in Minnesota Statutes or Minnesota Rules that is unrelated to the repealed 
4.30 	sections refers to a repealed definition, the revisor may substitute the text of the repealed 
4.31 	definition in the cross-reference.
4.32 	If the revisor requests it, the commissioner of revenue shall assist the revisor in 
4.33 	making the changes to statutes and rules necessary to accomplish the purpose of section 5.

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

5.1 	Sec. 5.  REPEALER.
 5.2 	(a) Minnesota Statutes 2010, sections 6.91, subdivision 4; 40A.151, subdivision 
5.3 	2; 40A.152, subdivision 2; 69.021, subdivisions 4, 5, 6, 7, 7a, 8, 9, 10, and 11; 
5.4 	270C.19, subdivision 4; 273.113; 273.119; 273.1233, subdivision 3; 273.1234; 273.135, 
5.5 	subdivisions 1, 2, 3, and 5; 273.1384; 273.1385; 273.1391, subdivisions 1, 2, 3, 4, and 
5.6 	5; 273.1398, subdivisions 1, 2d, 3, 3a, 4, 4b, 6, and 8; 275.295; 275.77, subdivision 2; 
5.7 	276A.01; 276A.02; 276A.03; 276A.04; 276A.05; 276A.06; 276A.07; 276A.08; 276A.09; 
5.8 	290C.07; 290C.08; 298.018; 298.285; 423A.02; 477A.011, subdivisions 1, 1a, 1b, 2a, 3, 
5.9 	19, 20, 21, 27, 29, 30, 31, 32, 33, 34, 35, 36, 38, 39, 40, 41, 42, and 43; 477A.0124; 
5.10 	477A.013, subdivisions 1, 8, 9, and 10; 477A.0133; 477A.014, subdivisions 1, 2, and 3; 
5.11 	477A.015; 477A.016; 477A.03, subdivisions 2, 2a, and 2b; 477A.11; 477A.12; 477A.13; 
5.12 	477A.14; 477A.145; 477A.15; 477A.16; and 477A.17, are repealed.
5.13 	(b) Minnesota Statutes 2010, sections 473F.001; 473F.01; 473F.02, subdivisions 1, 2, 
5.14 	3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 21, 22, 23, and 24; 473F.03; 473F.05; 473F.06; 473F.07; 
5.15 	473F.08, subdivisions 1, 2, 3, 3a, 3b, 4, 5, 5a, 6, 7a, 8a, and 10; 473F.09; 473F.10; 473F.11; 
5.16 	and 473F.13, subdivision 1, are repealed.
5.17 	(c) Minnesota Statutes 2010, sections 273.111, subdivisions 1, 2, 3, 3a, 4, 5, 8, 9, 
5.18 	9a, 10, 11, 11a, 12, 13, 14, 15, and 16; 273.114; 275.70; 275.71, subdivisions 1, 2, 4, 5, 
5.19 	and 6; 275.72; 275.73; 275.74; and 275.75, are repealed.
5.20 	(d) Minnesota Statutes 2010, sections 473H.01; 473H.02, subdivisions 1, 2, 3, 4, 
5.21 	5, 6, 7, 8, 9, and 10; 473H.03; 473H.04; 473H.05, subdivisions 1, 2, and 4; 473H.06; 
5.22 	473H.07; 473H.08; 473H.09; 473H.10; 473H.11; 473H.12; 473H.14; 473H.15; 473H.16; 
5.23 	473H.17; and 473H.18, are repealed.

5.24 	EFFECTIVE DATE. This section is effective for taxes, aids, and credits payable in 
5.25 	2012 and thereafter.