1.1 	A bill for an act
1.2 	relating to property taxation; exempting the first tier of commercial-industrial 
1.3 	property from the state general tax;amending Minnesota Statutes 2006, section 
1.4 	275.025, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 275.025, subdivision 2, is amended to read:
1.7 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
1.8 	"commercial-industrial tax capacity" means the tax capacity of all taxable property 
1.9 	classified as class 3 or class 5(1) under section 273.13, except for that portion of property 
1.10 	eligible for the first tier class rate under section 273.13, subdivision 24, electric generation 
1.11 	attached machinery under class 3 and property described in section 473.625. County
1.12 	Commercial-industrial tax capacity amounts are not adjusted for the captured net tax 
1.13 	capacity of a tax increment financing district under section 469.177, subdivision 2, the 
1.14 	net tax capacity of transmission lines deducted from a local government's total net tax 
1.15 	capacity under section 273.425, or fiscal disparities contribution and distribution net 
1.16 	tax capacities under chapter 276A or 473F. 

1.17 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
1.18 	subsequent years.