1.1                          A bill for an act
  1.2             relating to taxation; making certain property tax 
  1.3             public hearings optional; requiring a reverse 
  1.4             referendum for property tax levy increases in counties 
  1.5             and certain cities; amending Minnesota Statutes 1998, 
  1.6             sections 275.065, subdivisions 3, 5a, 6, 8, and by 
  1.7             adding a subdivision; and 275.07, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 275.065, 
  1.10  subdivision 3, is amended to read: 
  1.11     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
  1.12  county auditor shall prepare and the county treasurer shall 
  1.13  deliver after November 10 and on or before November 24 17 each 
  1.14  year, by first class mail to each taxpayer at the address listed 
  1.15  on the county's current year's assessment roll, a notice of 
  1.16  proposed property taxes.  
  1.17     (b) The commissioner of revenue shall prescribe the form of 
  1.18  the notice. 
  1.19     (c) The notice must inform taxpayers that it contains the 
  1.20  amount of property taxes each taxing authority proposes to 
  1.21  collect for taxes payable the following year.  In the case of a 
  1.22  town, or in the case of the state determined portion of the 
  1.23  school district levy, the final tax amount will be its proposed 
  1.24  tax.  The notice must clearly state that each taxing authority, 
  1.25  including regional library districts established under section 
  1.26  134.201, and including the metropolitan taxing districts as 
  2.1   defined in paragraph (i), but excluding all other special taxing 
  2.2   districts, cities of 500 population or less, and towns, will 
  2.3   must hold a public meeting to receive public testimony on the 
  2.4   proposed budget and proposed or final property tax levy, or, in 
  2.5   case of a school district, on the current budget and proposed 
  2.6   property tax levy.  It In the case of a county or a city over 
  2.7   500 population, a public hearing is not required if the county's 
  2.8   or city's proposed property tax levy has not increased over the 
  2.9   levy amount certified by the county or city under section 
  2.10  275.07, subdivision 1, for the previous year.  The notice must 
  2.11  clearly state the time and place of each taxing authority's 
  2.12  meeting and if one is to be held.  It must also state an address 
  2.13  where comments will be received by mail, whether or not a public 
  2.14  hearing is held.  
  2.15     (d) The notice must state for each parcel: 
  2.16     (1) the market value of the property as determined under 
  2.17  section 273.11, and used for computing property taxes payable in 
  2.18  the following year and for taxes payable in the current year as 
  2.19  each appears in the records of the county assessor on November 1 
  2.20  of the current year; and, in the case of residential property, 
  2.21  whether the property is classified as homestead or 
  2.22  nonhomestead.  The notice must clearly inform taxpayers of the 
  2.23  years to which the market values apply and that the values are 
  2.24  final values; 
  2.25     (2) the items listed below, shown separately by county, 
  2.26  city or town, state determined school tax net of the education 
  2.27  homestead credit under section 273.1382, voter approved school 
  2.28  levy, other local school levy, and the sum of the special taxing 
  2.29  districts, and as a total of all taxing authorities:  
  2.30     (i) the actual tax for taxes payable in the current year; 
  2.31     (ii) the tax change due to spending factors, defined as the 
  2.32  proposed tax minus the constant spending tax amount; 
  2.33     (iii) the tax change due to other factors, defined as the 
  2.34  constant spending tax amount minus the actual current year tax; 
  2.35  and 
  2.36     (iv) the proposed tax amount. 
  3.1      In the case of a town or the state determined school tax, 
  3.2   the final tax shall also be its proposed tax unless the town 
  3.3   changes its levy at a special town meeting under section 
  3.4   365.52.  If a school district has certified under section 
  3.5   126C.17, subdivision 9, that a referendum will be held in the 
  3.6   school district at the November general election, the county 
  3.7   auditor must note next to the school district's proposed amount 
  3.8   that a referendum is pending and that, if approved by the 
  3.9   voters, the tax amount may be higher than shown on the notice.  
  3.10  In the case of the city of Minneapolis, the levy for the 
  3.11  Minneapolis library board and the levy for Minneapolis park and 
  3.12  recreation shall be listed separately from the remaining amount 
  3.13  of the city's levy.  In the case of a parcel where tax increment 
  3.14  or the fiscal disparities areawide tax under chapter 276A or 
  3.15  473F applies, the proposed tax levy on the captured value or the 
  3.16  proposed tax levy on the tax capacity subject to the areawide 
  3.17  tax must each be stated separately and not included in the sum 
  3.18  of the special taxing districts; and 
  3.19     (3) the increase or decrease between the total taxes 
  3.20  payable in the current year and the total proposed taxes, 
  3.21  expressed as a percentage. 
  3.22     For purposes of this section, the amount of the tax on 
  3.23  homesteads qualifying under the senior citizens' property tax 
  3.24  deferral program under chapter 290B is the total amount of 
  3.25  property tax before subtraction of the deferred property tax 
  3.26  amount. 
  3.27     (e) The notice must clearly state that the proposed or 
  3.28  final taxes do not include the following: 
  3.29     (1) special assessments; 
  3.30     (2) levies approved by the voters after the date the 
  3.31  proposed taxes are certified, including bond referenda, school 
  3.32  district levy referenda, and levy limit increase referenda; 
  3.33     (3) amounts necessary to pay cleanup or other costs due to 
  3.34  a natural disaster occurring after the date the proposed taxes 
  3.35  are certified; 
  3.36     (4) amounts necessary to pay tort judgments against the 
  4.1   taxing authority that become final after the date the proposed 
  4.2   taxes are certified; and 
  4.3      (5) the contamination tax imposed on properties which 
  4.4   received market value reductions for contamination. 
  4.5      (f) Except as provided in subdivision 7, failure of the 
  4.6   county auditor to prepare or the county treasurer to deliver the 
  4.7   notice as required in this section does not invalidate the 
  4.8   proposed or final tax levy or the taxes payable pursuant to the 
  4.9   tax levy. 
  4.10     (g) If the notice the taxpayer receives under this section 
  4.11  lists the property as nonhomestead, and satisfactory 
  4.12  documentation is provided to the county assessor by the 
  4.13  applicable deadline, and the property qualifies for the 
  4.14  homestead classification in that assessment year, the assessor 
  4.15  shall reclassify the property to homestead for taxes payable in 
  4.16  the following year. 
  4.17     (h) In the case of class 4 residential property used as a 
  4.18  residence for lease or rental periods of 30 days or more, the 
  4.19  taxpayer must either: 
  4.20     (1) mail or deliver a copy of the notice of proposed 
  4.21  property taxes to each tenant, renter, or lessee; or 
  4.22     (2) post a copy of the notice in a conspicuous place on the 
  4.23  premises of the property.  
  4.24     The notice must be mailed or posted by the taxpayer by 
  4.25  November 27 20 or within three days of receipt of the notice, 
  4.26  whichever is later.  A taxpayer may notify the county treasurer 
  4.27  of the address of the taxpayer, agent, caretaker, or manager of 
  4.28  the premises to which the notice must be mailed in order to 
  4.29  fulfill the requirements of this paragraph. 
  4.30     (i) For purposes of this subdivision, subdivisions 5a and 
  4.31  6, "metropolitan special taxing districts" means the following 
  4.32  taxing districts in the seven-county metropolitan area that levy 
  4.33  a property tax for any of the specified purposes listed below: 
  4.34     (1) metropolitan council under section 473.132, 473.167, 
  4.35  473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
  4.36     (2) metropolitan airports commission under section 473.667, 
  5.1   473.671, or 473.672; and 
  5.2      (3) metropolitan mosquito control commission under section 
  5.3   473.711. 
  5.4      For purposes of this section, any levies made by the 
  5.5   regional rail authorities in the county of Anoka, Carver, 
  5.6   Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
  5.7   398A shall be included with the appropriate county's levy and 
  5.8   shall be discussed at that county's public hearing, if held. 
  5.9      (j) If a statutory or home rule charter city or a town has 
  5.10  exercised the local levy option provided by section 473.388, 
  5.11  subdivision 7, it may include in the notice of its proposed 
  5.12  taxes the amount of its proposed taxes attributable to its 
  5.13  exercise of the option.  In the first year of the city or town's 
  5.14  exercise of this option, the statement shall include an estimate 
  5.15  of the reduction of the metropolitan council's tax on the parcel 
  5.16  due to exercise of that option.  The metropolitan council's levy 
  5.17  shall be adjusted accordingly. 
  5.18     Sec. 2.  Minnesota Statutes 1998, section 275.065, 
  5.19  subdivision 5a, is amended to read: 
  5.20     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city that has a 
  5.21  population of more than 2,500, county, a metropolitan special 
  5.22  taxing district as defined in subdivision 3, paragraph (i), a 
  5.23  regional library district established under section 134.201, or 
  5.24  school district shall advertise in a newspaper a notice of its 
  5.25  intent to adopt a budget and property tax levy or, in the case 
  5.26  of a school district, to review its current budget and proposed 
  5.27  property taxes payable in the following year, at a public 
  5.28  hearing.  In the case of a county or a city that has a 
  5.29  population over 2,500, if its proposed property tax levy has not 
  5.30  increased over its levy amount certified under section 275.07, 
  5.31  subdivision 1, for the previous year, no public hearing is 
  5.32  required.  The notice must be published not less than two 
  5.33  business days nor more than six business days before the 
  5.34  hearing, if required due to a levy increase.  Even if a hearing 
  5.35  is not required, counties and cities must continue to place an 
  5.36  advertisement in the newspaper informing taxpayers of the 
  6.1   proposed budget and levy amounts. 
  6.2      The advertisement must be at least one-eighth page in size 
  6.3   of a standard-size or a tabloid-size newspaper.  The 
  6.4   advertisement must not be placed in the part of the newspaper 
  6.5   where legal notices and classified advertisements appear.  The 
  6.6   advertisement must be published in an official newspaper of 
  6.7   general circulation in the taxing authority.  The newspaper 
  6.8   selected must be one of general interest and readership in the 
  6.9   community, and not one of limited subject matter.  The 
  6.10  advertisement must appear in a newspaper that is published at 
  6.11  least once per week.  
  6.12     For purposes of this section, the metropolitan special 
  6.13  taxing district's advertisement must only be published in the 
  6.14  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
  6.15     (b) The advertisement for school districts, metropolitan 
  6.16  special taxing districts, and regional library districts must be 
  6.17  in the following form, except that the notice for a school 
  6.18  district may include references to the current budget in regard 
  6.19  to proposed property taxes. 
  6.20                             "NOTICE OF
  6.21                      PROPOSED PROPERTY TAXES
  6.22                   (School District/Metropolitan
  6.23                  Special Taxing District/Regional
  6.24                   Library District) of .........
  6.25  The governing body of ........ will soon hold budget hearings 
  6.26  and vote on the property taxes for (metropolitan special taxing 
  6.27  district/regional library district services that will be 
  6.28  provided in (year)/school district services that will be 
  6.29  provided in (year) and (year)). 
  6.30                     NOTICE OF PUBLIC HEARING:
  6.31  All concerned citizens are invited to attend a public hearing 
  6.32  and express their opinions on the proposed (school 
  6.33  district/metropolitan special taxing district/regional library 
  6.34  district) budget and property taxes, or in the case of a school 
  6.35  district, its current budget and proposed property taxes, 
  6.36  payable in the following year.  The hearing will be held on 
  7.1   (Month/Day/Year) at (Time) at (Location, Address)." 
  7.2      (c)(i) If the city or county's proposed property tax levy 
  7.3   has increased over its previous year's certified levy, the 
  7.4   advertisement for cities and counties must be in the following 
  7.5   form. 
  7.6                         "NOTICE OF PROPOSED
  7.7                   TOTAL BUDGET AND PROPERTY TAXES
  7.8   The (city/county) governing body or board of commissioners will 
  7.9   hold a public hearing to discuss the budget and to vote on the 
  7.10  amount of property taxes to collect for services the 
  7.11  (city/county) will provide in (year). 
  7.12     
  7.13  SPENDING:  The total budget amounts below compare 
  7.14  (city's/county's) (year) total actual budget with the amount the 
  7.15  (city/county) proposes to spend in (year). 
  7.16     
  7.17  (Year) Total          Proposed (Year)          Change from
  7.18  Actual Budget             Budget               (Year)-(Year)
  7.19     
  7.20    $.......              $.......                ...%
  7.21     
  7.22  TAXES:  The property tax amounts below compare that portion of 
  7.23  the current budget levied in property taxes in (city/county) for 
  7.24  (year) with the property taxes the (city/county) proposes to 
  7.25  collect in (year). 
  7.26     
  7.27  (Year) Property       Proposed (Year)          Change from
  7.28      Taxes              Property Taxes         (Year)-(Year)
  7.29     
  7.30    $.......              $.......                ...% 
  7.31     
  7.32                     ATTEND THE PUBLIC HEARING
  7.33  All (city/county) residents are invited to attend the public 
  7.34  hearing of the (city/county) to express your opinions on the 
  7.35  budget and the proposed amount of (year) property taxes.  The 
  7.36  hearing will be held on: 
  8.1                        (Month/Day/Year/Time)
  8.2                          (Location/Address)
  8.3   If the discussion of the budget cannot be completed, a time and 
  8.4   place for continuing the discussion will be announced at the 
  8.5   hearing.  You are also invited to send your written comments to: 
  8.6                            (City/County)
  8.7                         (Location/Address)"
  8.8      (ii) If no hearing is required under this section for the 
  8.9   city or county, its advertisement must be in the following 
  8.10  form.  The advertisement must clearly state that because the 
  8.11  proposed property tax levy amount is equal to or less than the 
  8.12  taxing authority's previous year's actual property tax levy, no 
  8.13  public hearing is required by law. 
  8.14                       "NOTICE OF PROPOSED
  8.15                 TOTAL BUDGET AND PROPERTY TAXES
  8.16  Although no public hearing will be held, the (city/county) 
  8.17  governing body or board of commissioners is planning to adopt 
  8.18  the following budget and property tax levy. 
  8.19     
  8.20  SPENDING:  The total budget amounts below compare 
  8.21  (city's/county's) (year) total actual budget with the amount the 
  8.22  (city/county) proposes to spend in (year). 
  8.23     
  8.24  (Year) Total          Proposed (Year)          Change from
  8.25  Actual Budget             Budget               (Year)-(Year)
  8.26     
  8.27    $.......              $.......                ...%
  8.28     
  8.29  TAXES:  The property tax amounts below compare that portion of 
  8.30  the current budget levied in property taxes in (city/county) for 
  8.31  (year) with the property taxes the (city/county) proposes to 
  8.32  collect in (year). 
  8.33     
  8.34  (Year) Property       Proposed (Year)          Change from
  8.35      Taxes              Property Taxes         (Year)-(Year)
  8.36     
  9.1     $.......              $.......                ...% 
  9.2      Although no public hearing will be held, you are invited to 
  9.3   send any written comments to: 
  9.4                           (City/County)
  9.5                        (Location/Address)"
  9.6      (iii) If the city's governing body or county board of 
  9.7   commissioners decide to hold a public hearing on the proposed 
  9.8   budget and levy, even though the proposed levy is equal to or 
  9.9   less than the previous year's certified levy amount, the 
  9.10  advertisement format in clause (i) must be used. 
  9.11     (d) For purposes of this subdivision, the budget amounts 
  9.12  listed on the advertisement mean: 
  9.13     (1) for cities, the total government fund expenditures, as 
  9.14  defined by the state auditor under section 471.6965, less any 
  9.15  expenditures for improvements or services that are specially 
  9.16  assessed or charged under chapter 429, 430, 435, or the 
  9.17  provisions of any other law or charter; and 
  9.18     (2) for counties, the total government fund expenditures, 
  9.19  as defined by the state auditor under section 375.169, less any 
  9.20  expenditures for direct payments to recipients or providers for 
  9.21  the human service aids listed below: 
  9.22     (1) aid to families with dependent children under sections 
  9.23  256.82, subdivision 1, and 256.935, subdivision 1; 
  9.24     (2) medical assistance under sections 256B.041, subdivision 
  9.25  5, and 256B.19, subdivision 1; 
  9.26     (3) general assistance medical care under section 256D.03, 
  9.27  subdivision 6; 
  9.28     (4) general assistance under section 256D.03, subdivision 
  9.29  2; 
  9.30     (5) emergency assistance under section 256.871, subdivision 
  9.31  6; 
  9.32     (6) Minnesota supplemental aid under section 256D.36, 
  9.33  subdivision 1; 
  9.34     (7) preadmission screening under section 256B.0911, and 
  9.35  alternative care grants under section 256B.0913; 
  9.36     (8) general assistance medical care claims processing, 
 10.1   medical transportation and related costs under section 256D.03, 
 10.2   subdivision 4; 
 10.3      (9) medical transportation and related costs under section 
 10.4   256B.0625, subdivisions 17 to 18a; 
 10.5      (10) group residential housing under 256I.05, subdivision 
 10.6   8, transferred from programs in clauses (4) and (6); or 
 10.7      (11) any successor programs to those listed in clauses (1) 
 10.8   to (10). 
 10.9      (e) A city with a population of over 500 but not more than 
 10.10  2,500 must advertise by posted notice as defined in section 
 10.11  645.12, subdivision 1.  The advertisement must be posted at the 
 10.12  time provided in paragraph (a).  It must be in the form required 
 10.13  in paragraph (b). 
 10.14     (f) For purposes of this subdivision, the population of a 
 10.15  city is the most recent population as determined by the state 
 10.16  demographer under section 4A.02. 
 10.17     (g) The commissioner of revenue, subject to the approval of 
 10.18  the chairs of the house and senate tax committees, shall 
 10.19  prescribe the form and format of the advertisement. 
 10.20     Sec. 3.  Minnesota Statutes 1998, section 275.065, 
 10.21  subdivision 6, is amended to read: 
 10.22     Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
 10.23  (a) For purposes of this section, the following terms shall have 
 10.24  the meanings given: 
 10.25     (1) "Initial hearing" means the first and primary hearing 
 10.26  held to discuss the taxing authority's proposed budget and 
 10.27  proposed property tax levy for taxes payable in the following 
 10.28  year, or, for school districts, the current budget and the 
 10.29  proposed property tax levy for taxes payable in the following 
 10.30  year. 
 10.31     (2) "Continuation hearing" means a hearing held to complete 
 10.32  the initial hearing, if the initial hearing is not completed on 
 10.33  its scheduled date. 
 10.34     (3) "Subsequent hearing" means the hearing held to adopt 
 10.35  the taxing authority's final property tax levy, and, in the case 
 10.36  of taxing authorities other than school districts, the final 
 11.1   budget, for taxes payable in the following year. 
 11.2      (b) Between November 29 19 and December 20 10, the 
 11.3   governing bodies of a city that has a population over 500, 
 11.4   county, metropolitan special taxing districts as defined in 
 11.5   subdivision 3, paragraph (i), and regional library districts 
 11.6   shall each hold an initial public hearing to discuss and seek 
 11.7   public comment on its final budget and property tax levy for 
 11.8   taxes payable in the following year, and the governing body of 
 11.9   the school district shall hold an initial public hearing to 
 11.10  review its current budget and proposed property tax levy for 
 11.11  taxes payable in the following year.  The metropolitan special 
 11.12  taxing districts shall be required to hold only a single joint 
 11.13  initial public hearing, the location of which will be determined 
 11.14  by the affected metropolitan agencies. 
 11.15     (c) The initial hearing must be held after 5:00 p.m. if 
 11.16  scheduled on a day other than Saturday.  No initial hearing may 
 11.17  be held on a Sunday.  
 11.18     (d) At the initial hearing under this subdivision, the 
 11.19  percentage increase in property taxes proposed by the taxing 
 11.20  authority, if any, and the specific purposes for which property 
 11.21  tax revenues are being increased must be discussed.  During the 
 11.22  discussion, the governing body shall hear comments regarding a 
 11.23  proposed increase and explain the reasons for the proposed 
 11.24  increase.  The public shall be allowed to speak and to ask 
 11.25  questions.  At the public hearing, the school district must also 
 11.26  provide and discuss information on the distribution of its 
 11.27  revenues by revenue source, and the distribution of its spending 
 11.28  by program area.  
 11.29     (e) If the initial hearing is not completed on its 
 11.30  scheduled date, the taxing authority must announce, prior to 
 11.31  adjournment of the hearing, the date, time, and place for the 
 11.32  continuation of the hearing.  The continuation hearing must be 
 11.33  held at least five business days but no more than 14 ten 
 11.34  business days after the initial hearing.  A continuation hearing 
 11.35  may not be held later than December 20 10 except as provided in 
 11.36  paragraphs (f) and (g).  A continuation hearing must be held 
 12.1   after 5:00 p.m. if scheduled on a day other than Saturday.  No 
 12.2   continuation hearing may be held on a Sunday. 
 12.3      (f) The governing body of a county shall hold its initial 
 12.4   hearing on the first Thursday Tuesday in December each year, and 
 12.5   may hold additional initial hearings on other dates before 
 12.6   December 20 10 if necessary for the convenience of county 
 12.7   residents.  If the county needs a continuation of its hearing, 
 12.8   the continuation hearing shall be held on the third second 
 12.9   Tuesday in December even if that second Tuesday is after 
 12.10  December 10.  If the third Tuesday in December falls on December 
 12.11  21, the county's continuation hearing shall be held on Monday, 
 12.12  December 20.  
 12.13     (g) The metropolitan special taxing districts shall hold a 
 12.14  joint initial public hearing on the first Wednesday of 
 12.15  December.  A continuation hearing, if necessary, shall be held 
 12.16  on the second Wednesday of December even if that second 
 12.17  Wednesday is after December 10. 
 12.18     (h) The county auditor shall provide for the coordination 
 12.19  of initial and continuation hearing dates for all school 
 12.20  districts and cities within the county to prevent conflicts 
 12.21  under clauses (i) and (j). 
 12.22     (i) By August 10, each school board and the board of the 
 12.23  regional library district shall certify to the county auditors 
 12.24  of the counties in which the school district or regional library 
 12.25  district is located the dates on which it elects to hold its 
 12.26  initial hearing and any continuation hearing.  If a school board 
 12.27  or regional library district does not certify these dates by 
 12.28  August 10, the auditor will assign the initial and continuation 
 12.29  hearing dates.  The dates elected or assigned must not conflict 
 12.30  with the initial and continuation hearing dates of the county or 
 12.31  the metropolitan special taxing districts.  
 12.32     (j) By August 20, the county auditor shall notify the 
 12.33  clerks of the cities within the county of the dates on which 
 12.34  school districts and regional library districts have elected to 
 12.35  hold their initial and continuation hearings.  At the time a 
 12.36  city certifies its proposed levy under subdivision 1 it shall 
 13.1   certify the dates on which it elects to hold its initial hearing 
 13.2   and any continuation hearing.  Until September 15, the first and 
 13.3   second Mondays of December are reserved for the use of the 
 13.4   cities.  If a city does not certify its hearing dates by 
 13.5   September 15, the auditor shall assign the initial and 
 13.6   continuation hearing dates.  The dates elected or assigned for 
 13.7   the initial hearing must not conflict with the initial hearing 
 13.8   dates of the county, metropolitan special taxing districts, 
 13.9   regional library districts, or school districts within which the 
 13.10  city is located.  To the extent possible, the dates of the 
 13.11  city's continuation hearing should not conflict with the 
 13.12  continuation hearing dates of the county, metropolitan special 
 13.13  taxing districts, regional library districts, or school 
 13.14  districts within which the city is located.  This paragraph does 
 13.15  not apply to cities of 500 population or less. 
 13.16     (k) The county initial hearing date and the city, 
 13.17  metropolitan special taxing district, regional library district, 
 13.18  and school district initial hearing dates must be designated on 
 13.19  the notices required under subdivision 3.  The continuation 
 13.20  hearing dates need not be stated on the notices.  
 13.21     (l) At a subsequent hearing, each county, school district, 
 13.22  city over 500 population, and metropolitan special taxing 
 13.23  district may amend its proposed property tax levy and must adopt 
 13.24  a final property tax levy.  Each county, city over 500 
 13.25  population, and metropolitan special taxing district may also 
 13.26  amend its proposed budget and must adopt a final budget at the 
 13.27  subsequent hearing.  The final property tax levy must be adopted 
 13.28  prior to adopting the final budget.  A school district is not 
 13.29  required to adopt its final budget at the subsequent hearing.  
 13.30  The subsequent hearing of a taxing authority must be held on a 
 13.31  date subsequent to the date of the taxing authority's initial 
 13.32  public hearing.  If a continuation hearing is held, the 
 13.33  subsequent hearing must be held either immediately following the 
 13.34  continuation hearing or on a date subsequent to the continuation 
 13.35  hearing.  The subsequent hearing may be held at a regularly 
 13.36  scheduled board or council meeting or at a special meeting 
 14.1   scheduled for the purposes of the subsequent hearing.  The 
 14.2   subsequent hearing of a taxing authority does not have to be 
 14.3   coordinated by the county auditor to prevent a conflict with an 
 14.4   initial hearing, a continuation hearing, or a subsequent hearing 
 14.5   of any other taxing authority.  All subsequent hearings must be 
 14.6   held prior to five working days after December 20 of the levy 
 14.7   year.  The date, time, and place of the subsequent hearing must 
 14.8   be announced at the initial public hearing or at the 
 14.9   continuation hearing. 
 14.10     (m) The property tax levy certified under section 275.07 by 
 14.11  a city of any population, county, metropolitan special taxing 
 14.12  district, regional library district, or school district must not 
 14.13  exceed the proposed levy determined under subdivision 1, except 
 14.14  by an amount up to the sum of the following amounts: 
 14.15     (1) the amount of a school district levy whose voters 
 14.16  approved a referendum to increase taxes under section 123B.63, 
 14.17  subdivision 3, or 126C.17, subdivision 9, after the proposed 
 14.18  levy was certified; 
 14.19     (2) the amount of a city or county levy approved by the 
 14.20  voters after the proposed levy was certified; 
 14.21     (3) the amount of a levy to pay principal and interest on 
 14.22  bonds approved by the voters under section 475.58 after the 
 14.23  proposed levy was certified; 
 14.24     (4) the amount of a levy to pay costs due to a natural 
 14.25  disaster occurring after the proposed levy was certified, if 
 14.26  that amount is approved by the commissioner of revenue under 
 14.27  subdivision 6a; 
 14.28     (5) the amount of a levy to pay tort judgments against a 
 14.29  taxing authority that become final after the proposed levy was 
 14.30  certified, if the amount is approved by the commissioner of 
 14.31  revenue under subdivision 6a; 
 14.32     (6) the amount of an increase in levy limits certified to 
 14.33  the taxing authority by the commissioner of children, families, 
 14.34  and learning or the commissioner of revenue after the proposed 
 14.35  levy was certified; and 
 14.36     (7) the amount required under section 126C.55. 
 15.1      (n) This subdivision does not apply to towns and, special 
 15.2   taxing districts other than regional library districts and 
 15.3   metropolitan special taxing districts, cities under 500 
 15.4   population, and any counties or cities over 500 population whose 
 15.5   proposed property tax levy is less than or equal to its levy 
 15.6   certified under section 275.07, subdivision 1, for the previous 
 15.7   year. 
 15.8      (o) Notwithstanding the requirements of this section, the 
 15.9   employer is required to meet and negotiate over employee 
 15.10  compensation as provided for in chapter 179A.  
 15.11     Sec. 4.  Minnesota Statutes 1998, section 275.065, 
 15.12  subdivision 8, is amended to read: 
 15.13     Subd. 8.  [HEARING.] Notwithstanding any other provision of 
 15.14  law, Ramsey county, the city of St. Paul, and independent school 
 15.15  district No. 625 are authorized to and shall hold their initial 
 15.16  public hearing jointly.  The hearing must be held on the second 
 15.17  first Tuesday of December each year.  The advertisement required 
 15.18  in subdivision 5a may be a joint advertisement.  The hearing is 
 15.19  otherwise subject to the requirements of this section. 
 15.20     Ramsey county is authorized to hold an additional initial 
 15.21  hearing or hearings as provided under this section, provided 
 15.22  that any additional hearings must not conflict with the initial 
 15.23  or continuation hearing dates of the other taxing districts.  
 15.24  However, if Ramsey county elects not to hold such additional 
 15.25  initial hearing or hearings, the joint initial hearing required 
 15.26  by this subdivision must be held in a St. Paul location 
 15.27  convenient to residents of Ramsey county. 
 15.28     Sec. 5.  Minnesota Statutes 1998, section 275.065, is 
 15.29  amended by adding a subdivision to read: 
 15.30     Subd. 9.  [REVERSE REFERENDUM.] The reverse referendum 
 15.31  procedure in this subdivision applies only in the case of a 
 15.32  county, or a city that has a population of more than 2,500, that 
 15.33  has adopted a property tax levy increase over the levy amount 
 15.34  certified under section 275.07, subdivision 1, for the previous 
 15.35  year. 
 15.36     If within 21 days after the public hearing and adoption of 
 16.1   a levy under subdivision 6, a petition signed by voters equal in 
 16.2   number to five percent of the votes cast in the county or city 
 16.3   in the last general election requesting a referendum on the levy 
 16.4   increase is filed with the county auditor, or the city clerk, 
 16.5   the levy increase shall not be effective until it has been 
 16.6   submitted to the voters at a special election to be held on the 
 16.7   fourth Tuesday in January, and a majority of votes cast on the 
 16.8   question of approving the levy increase are in the affirmative.  
 16.9   The commissioner of revenue shall prepare the form of the 
 16.10  question to be presented at the referendum, which shall 
 16.11  reference only the amount of the property tax levy increase over 
 16.12  the previous year. 
 16.13     The county or city shall notify the county auditor of the 
 16.14  results of the referendum.  If the majority of the votes cast on 
 16.15  the question are in the affirmative, the levy adopted under 
 16.16  subdivision 6 shall be certified to the county auditor under 
 16.17  section 275.07, subdivision 1.  If the majority of the votes 
 16.18  cast on the question are in the negative, an amount equal to the 
 16.19  preceding year's levy shall be certified to the county auditor 
 16.20  for purposes of section 275.07, subdivision 1. 
 16.21     Sec. 6.  Minnesota Statutes 1998, section 275.07, 
 16.22  subdivision 1, is amended to read: 
 16.23     Subdivision 1.  [CERTIFICATION OF LEVY.] Except as 
 16.24  otherwise provided in this subdivision, the taxes voted by 
 16.25  cities, counties, school districts, and special districts shall 
 16.26  be certified by the proper authorities to the county auditor on 
 16.27  or before five working days after December 20 in each year.  A 
 16.28  county or city to which the reverse referendum provisions under 
 16.29  section 275.065, subdivision 9, apply shall certify the taxes to 
 16.30  the county auditor by January 5, except that any county or city 
 16.31  for which a petition has been filed under section 275.065, 
 16.32  subdivision 9, must certify the day immediately following the 
 16.33  election under that section.  A town must certify the levy 
 16.34  adopted by the town board to the county auditor by September 15 
 16.35  each year.  If the town board modifies the levy at a special 
 16.36  town meeting after September 15, the town board must recertify 
 17.1   its levy to the county auditor on or before five working days 
 17.2   after December 20.  The taxes certified shall not be reduced by 
 17.3   the county auditor by the aid received under section 273.1398, 
 17.4   subdivision 2, but shall be reduced by the county auditor by the 
 17.5   aid received under section 273.1398, subdivision 3.  If a city, 
 17.6   town, county, school district, or special district fails to 
 17.7   certify its levy by that date, its levy shall be the amount 
 17.8   levied by it for the preceding year. 
 17.9      Sec. 7.  [EFFECTIVE DATE.] 
 17.10     Sections 1, 3, and 4 are effective for notices prepared in 
 17.11  1999 and thereafter.  Section 2 is effective for newspaper 
 17.12  advertisements in 1999 and thereafter.  Sections 5 and 6 are 
 17.13  effective for taxes levied in 1999 and thereafter, for taxes 
 17.14  payable in 2000 and thereafter.