1.1 	A bill for an act
1.2 	relating to property taxation; providing for use of
1.3 	household income for computing property taxes on
1.4 	homesteads; appropriating money; amending Minnesota
1.5 	Statutes 2004, sections 126C.01, subdivision 3;
1.6 	127A.48, by adding a subdivision; 273.13, subdivisions
1.7 	22, 23, by adding a subdivision; 275.065, subdivision
1.8 	3; 275.08, subdivision 1a; 276.017, subdivision 1;
1.9 	276.02; 276.03; 276.04, subdivisions 2, 3; 276.09;
1.10 	proposing coding for new law in Minnesota Statutes,
1.11 	chapters 273; 477A; repealing Minnesota Statutes 2004,
1.12 	section 273.1384, subdivision 1.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2004, section 126C.01,
1.15 	subdivision 3, is amended to read:
1.16 		Subd. 3.Referendum market value. (a) Except as provided
1.17 	in paragraph (b),"referendum market value" means the market
1.18 	value of all taxable property, excluding property classified as
1.19 	class 2, noncommercial 4c(1), or 4c(4) under section 273.13.
1.20 	The portion of class 2a property consisting of the house,
1.21 	garage, and surrounding one acre of land of an agricultural
1.22 	homestead is included in referendum market value.  Any class of
1.23 	property, or any portion of a class of property, that is
1.24 	included in the definition of referendum market value and that
1.25 	has a class rate of less than one percent under section 273.13
1.26 	shall have a referendum market value equal to its net tax
1.27 	capacity multiplied by 100.
1.28 	(b) For any property or portion thereof where the net tax
1.29 	capacity is determined under section 273.13, subdivision 34,
2.1 	referendum market value means net tax capacity multiplied by a
2.2 	factor of 100.
2.3 	
EFFECTIVE DATE. This section is effective for taxes
2.4 	payable in 2006 and subsequent years.

2.5 	Sec. 2. Minnesota Statutes 2004, section 127A.48, is
2.6 	amended by adding a subdivision to read:
2.7 		Subd. 2a.Homestead property. If the net tax capacity of
2.8 	homestead property is determined under section 273.13,
2.9 	subdivision 34, its adjusted net tax capacity is deemed to be
2.10 	equal to the net tax capacity.
2.11 	
EFFECTIVE DATE. This section is effective for taxes
2.12 	payable in 2006 and subsequent years.

2.13 	Sec. 3. [273.128] ASSESSMENT OF HOMESTEAD PROPERTY.
2.14 		Subdivision 1.Homestead list to commissioner of
2.15 	revenue. By March 1 of each assessment year, the county
2.16 	assessor shall provide a list of all homesteads in the county to
2.17 	the commissioner of revenue, in a form prescribed by the
2.18 	commissioner, providing the legal description and address of
2.19 	each homestead, the names and Social Security numbers of all
2.20 	owners of the homestead, and all taxing jurisdictions whose
2.21 	boundaries contain the homestead.
2.22 		Subd. 2.Income reporting form sent to homeowner. By
2.23 	March 1 of each year, the assessor shall mail a form prescribed
2.24 	by the commissioner of revenue to each homestead.  The form
2.25 	shall solicit from the owner of the homestead the name and
2.26 	income of each occupant of the home, excluding minors with no
2.27 	income, using the income definition contained in section
2.28 	290A.03, along with any identifying information required by the
2.29 	commissioner.  Upon completion, the homeowner is required to
2.30 	submit the form to the commissioner of revenue.
2.31 		Subd. 3.Verification; report of tax capacity to county.
 2.32 	The commissioner of revenue shall verify the information
2.33 	provided by the homeowner and may adjust the incomes as reported
2.34 	by the homeowner for assessor omissions.  By July 1 of the
2.35 	assessment year, the commissioner shall calculate the net tax
2.36 	capacity and referendum market value of each homestead, and
3.1 	report to the county auditor the aggregate amount of net tax
3.2 	capacity and referendum market value of all homestead properties
3.3 	for each taxing jurisdiction within the county.
3.4 	
EFFECTIVE DATE. This section is effective for taxes
3.5 	payable in 2006 and subsequent years.

3.6 	Sec. 4. Minnesota Statutes 2004, section 273.13,
3.7 	subdivision 22, is amended to read:
3.8 		Subd. 22.Class 1.  (a) Except as provided in subdivision
3.9 	23 and in paragraphs (b) and (c), real estate which is
3.10 	residential and used for homestead purposes is class 1a.  In the
3.11 	case of a duplex or triplex in which one of the units is used
3.12 	for homestead purposes, the entire property is deemed to be used
3.13 	for homestead purposes.  The market value tax capacity of class
3.14 	1a property must be determined based upon the value of the
3.15 	house, garage, and land as provided under subdivision 34.
3.16 	The first $500,000 of market value of class 1a property has
3.17 	a net class rate of one percent of its market value; and the
3.18 	market value of class 1a property that exceeds $500,000 has a
3.19 	class rate of 1.25 percent of its market value.
3.20 	(b) Class 1b property includes homestead real estate or
3.21 	homestead manufactured homes used for the purposes of a
3.22 	homestead by
3.23 	(1) any person who is blind as defined in section 256D.35,
3.24 	or the blind person and the blind person's spouse; or
3.25 	(2) any person, hereinafter referred to as "veteran," who:
3.26 	(i) served in the active military or naval service of the
3.27 	United States; and
3.28 	(ii) is entitled to compensation under the laws and
3.29 	regulations of the United States for permanent and total
3.30 	service-connected disability due to the loss, or loss of use, by
3.31 	reason of amputation, ankylosis, progressive muscular
3.32 	dystrophies, or paralysis, of both lower extremities, such as to
3.33 	preclude motion without the aid of braces, crutches, canes, or a
3.34 	wheelchair; and
3.35 	(iii) has acquired a special housing unit with special
3.36 	fixtures or movable facilities made necessary by the nature of
4.1 	the veteran's disability, or the surviving spouse of the
4.2 	deceased veteran for as long as the surviving spouse retains the
4.3 	special housing unit as a homestead; or
4.4 	(3) any person who is permanently and totally disabled.
4.5 	Property is classified and assessed under clause (3) only
4.6 	if the government agency or income-providing source certifies,
4.7 	upon the request of the homestead occupant, that the homestead
4.8 	occupant satisfies the disability requirements of this paragraph.
4.9 	Property is classified and assessed pursuant to clause (1)
4.10 	only if the commissioner of revenue certifies to the assessor
4.11 	that the homestead occupant satisfies the requirements of this
4.12 	paragraph.
4.13 	Permanently and totally disabled for the purpose of this
4.14 	subdivision means a condition which is permanent in nature and
4.15 	totally incapacitates the person from working at an occupation
4.16 	which brings the person an income.  The first $32,000 market
4.17 	value of class 1b property has a net class rate of .45 percent
4.18 	of its market value tax capacity of class 1b property shall be
4.19 	determined as provided under subdivision 34.  The remaining
4.20 	market value of class 1b property has a class rate using the
4.21 	rates for class 1a or class 2a property, whichever is
4.22 	appropriate, of similar market value.
4.23 	(c) Class 1c property is commercial use real property that
4.24 	abuts a lakeshore line and is devoted to temporary and seasonal
4.25 	residential occupancy for recreational purposes but not devoted
4.26 	to commercial purposes for more than 250 days in the year
4.27 	preceding the year of assessment, and that includes a portion
4.28 	used as a homestead by the owner, which includes a dwelling
4.29 	occupied as a homestead by a shareholder of a corporation that
4.30 	owns the resort, a partner in a partnership that owns the
4.31 	resort, or a member of a limited liability company that owns the
4.32 	resort even if the title to the homestead is held by the
4.33 	corporation, partnership, or limited liability company.  For
4.34 	purposes of this clause, property is devoted to a commercial
4.35 	purpose on a specific day if any portion of the property,
4.36 	excluding the portion used exclusively as a homestead, is used
5.1 	for residential occupancy and a fee is charged for residential
5.2 	occupancy. The first $500,000 of market value of Class 1c
5.3 	property has a class rate of one percent, and the remaining
5.4 	market value of class 1c property has a class rate of one
5.5 	percent, with the following limitation:  the area of the
5.6 	property must not exceed is limited to 100 feet of lakeshore
5.7 	footage for each cabin or campsite located on the property up to
5.8 	a total of 800 feet and 500 feet in depth, measured away from
5.9 	the lakeshore.  If any portion of the class 1c resort property
5.10 	is classified as class 4c under subdivision 25, the entire
5.11 	property must meet the requirements of subdivision 25, paragraph
5.12 	(d), clause (1), to qualify for class 1c treatment under this
5.13 	paragraph. The tax capacity of class 1c property shall be
5.14 	determined under subdivision 34.
5.15 	(d) Class 1d property includes structures that meet all of
5.16 	the following criteria:
5.17 	(1) the structure is located on property that is classified
5.18 	as agricultural property under section 273.13, subdivision 23;
5.19 	(2) the structure is occupied exclusively by seasonal farm
5.20 	workers during the time when they work on that farm, and the
5.21 	occupants are not charged rent for the privilege of occupying
5.22 	the property, provided that use of the structure for storage of
5.23 	farm equipment and produce does not disqualify the property from
5.24 	classification under this paragraph;
5.25 	(3) the structure meets all applicable health and safety
5.26 	requirements for the appropriate season; and
5.27 	(4) the structure is not salable as residential property
5.28 	because it does not comply with local ordinances relating to
5.29 	location in relation to streets or roads.
5.30 	The first $500,000 of market value of class 1d property has
5.31 	the same class rates as class 1a property under paragraph (a) a
5.32 	net class rate of one percent, and the market value of class 1d
5.33 	property tax that exceeds $500,000 has a class rate of 1.25
5.34 	percent.
5.35 	
EFFECTIVE DATE. This section is effective for taxes
5.36 	payable in 2006 and subsequent years.

6.1 	Sec. 5. Minnesota Statutes 2004, section 273.13,
6.2 	subdivision 23, is amended to read:
6.3 		Subd. 23.Class 2.  (a) Class 2a property is agricultural
6.4 	land including any improvements that is homesteaded.  The market
6.5 	value tax capacity of the house and garage and immediately
6.6 	surrounding one acre of land has the same class rates is
6.7 	determined in the same way as class 1a property under
6.8 	subdivision 22 34.  The value of the remaining land including
6.9 	improvements up to and including $600,000 market value has a net
6.10 	class rate of 0.55 percent of market value.  The remaining
6.11 	property over $600,000 market value has a class rate of one
6.12 	percent of market value.
6.13 	(b) Class 2b property is (1) real estate, rural in
6.14 	character and used exclusively for growing trees for timber,
6.15 	lumber, and wood and wood products; (2) real estate that is not
6.16 	improved with a structure and is used exclusively for growing
6.17 	trees for timber, lumber, and wood and wood products, if the
6.18 	owner has participated or is participating in a cost-sharing
6.19 	program for afforestation, reforestation, or timber stand
6.20 	improvement on that particular property, administered or
6.21 	coordinated by the commissioner of natural resources; (3) real
6.22 	estate that is nonhomestead agricultural land; or (4) a landing
6.23 	area or public access area of a privately owned public use
6.24 	airport.  Class 2b property has a net class rate of one percent
6.25 	of market value.
6.26 	(c) Agricultural land as used in this section means
6.27 	contiguous acreage of ten acres or more, used during the
6.28 	preceding year for agricultural purposes.  "Agricultural
6.29 	purposes" as used in this section means the raising or
6.30 	cultivation of agricultural products.  "Agricultural purposes"
6.31 	also includes enrollment in the Reinvest in Minnesota program
6.32 	under sections 103F.501 to 103F.535 or the federal Conservation
6.33 	Reserve Program as contained in Public Law 99-198 if the
6.34 	property was classified as agricultural (i) under this
6.35 	subdivision for the assessment year 2002 or (ii) in the year
6.36 	prior to its enrollment.  Contiguous acreage on the same parcel,
7.1 	or contiguous acreage on an immediately adjacent parcel under
7.2 	the same ownership, may also qualify as agricultural land, but
7.3 	only if it is pasture, timber, waste, unusable wild land, or
7.4 	land included in state or federal farm programs.  Agricultural
7.5 	classification for property shall be determined excluding the
7.6 	house, garage, and immediately surrounding one acre of land, and
7.7 	shall not be based upon the market value of any residential
7.8 	structures on the parcel or contiguous parcels under the same
7.9 	ownership.
7.10 	(d) Real estate, excluding the house, garage, and
7.11 	immediately surrounding one acre of land, of less than ten acres
7.12 	which is exclusively and intensively used for raising or
7.13 	cultivating agricultural products, shall be considered as
7.14 	agricultural land.
7.15 	Land shall be classified as agricultural even if all or a
7.16 	portion of the agricultural use of that property is the leasing
7.17 	to, or use by another person for agricultural purposes.
7.18 	Classification under this subdivision is not determinative
7.19 	for qualifying under section 273.111.
7.20 	The property classification under this section supersedes,
7.21 	for property tax purposes only, any locally administered
7.22 	agricultural policies or land use restrictions that define
7.23 	minimum or maximum farm acreage.
7.24 	(e) The term "agricultural products" as used in this
7.25 	subdivision includes production for sale of:
7.26 	(1) livestock, dairy animals, dairy products, poultry and
7.27 	poultry products, fur-bearing animals, horticultural and nursery
7.28 	stock, fruit of all kinds, vegetables, forage, grains, bees, and
7.29 	apiary products by the owner;
7.30 	(2) fish bred for sale and consumption if the fish breeding
7.31 	occurs on land zoned for agricultural use;
7.32 	(3) the commercial boarding of horses if the boarding is
7.33 	done in conjunction with raising or cultivating agricultural
7.34 	products as defined in clause (1);
7.35 	(4) property which is owned and operated by nonprofit
7.36 	organizations used for equestrian activities, excluding racing;
8.1 	(5) game birds and waterfowl bred and raised for use on a
8.2 	shooting preserve licensed under section 97A.115;
8.3 	(6) insects primarily bred to be used as food for animals;
8.4 	(7) trees, grown for sale as a crop, and not sold for
8.5 	timber, lumber, wood, or wood products; and
8.6 	(8) maple syrup taken from trees grown by a person licensed
8.7 	by the Minnesota Department of Agriculture under chapter 28A as
8.8 	a food processor.
8.9 	(f) If a parcel used for agricultural purposes is also used
8.10 	for commercial or industrial purposes, including but not limited
8.11 	to:
8.12 	(1) wholesale and retail sales;
8.13 	(2) processing of raw agricultural products or other goods;
8.14 	(3) warehousing or storage of processed goods; and
8.15 	(4) office facilities for the support of the activities
8.16 	enumerated in clauses (1), (2), and (3),
8.17 	the assessor shall classify the part of the parcel used for
8.18 	agricultural purposes as class 1b, 2a, or 2b, whichever is
8.19 	appropriate, and the remainder in the class appropriate to its
8.20 	use.  The grading, sorting, and packaging of raw agricultural
8.21 	products for first sale is considered an agricultural purpose.
8.22 	A greenhouse or other building where horticultural or nursery
8.23 	products are grown that is also used for the conduct of retail
8.24 	sales must be classified as agricultural if it is primarily used
8.25 	for the growing of horticultural or nursery products from seed,
8.26 	cuttings, or roots and occasionally as a showroom for the retail
8.27 	sale of those products.  Use of a greenhouse or building only
8.28 	for the display of already grown horticultural or nursery
8.29 	products does not qualify as an agricultural purpose.
8.30 	The assessor shall determine and list separately on the
8.31 	records the market value of the homestead dwelling and the one
8.32 	acre of land on which that dwelling is located.  If any farm
8.33 	buildings or structures are located on this homesteaded acre of
8.34 	land, their market value shall not be included in this separate
8.35 	determination.
8.36 	(g) To qualify for classification under paragraph (b),
9.1 	clause (4), a privately owned public use airport must be
9.2 	licensed as a public airport under section 360.018.  For
9.3 	purposes of paragraph (b), clause (4), "landing area" means that
9.4 	part of a privately owned public use airport properly cleared,
9.5 	regularly maintained, and made available to the public for use
9.6 	by aircraft and includes runways, taxiways, aprons, and sites
9.7 	upon which are situated landing or navigational aids.  A landing
9.8 	area also includes land underlying both the primary surface and
9.9 	the approach surfaces that comply with all of the following:
9.10 	(i) the land is properly cleared and regularly maintained
9.11 	for the primary purposes of the landing, taking off, and taxiing
9.12 	of aircraft; but that portion of the land that contains
9.13 	facilities for servicing, repair, or maintenance of aircraft is
9.14 	not included as a landing area;
9.15 	(ii) the land is part of the airport property; and
9.16 	(iii) the land is not used for commercial or residential
9.17 	purposes.
9.18 	The land contained in a landing area under paragraph (b), clause
9.19 	(4), must be described and certified by the commissioner of
9.20 	transportation.  The certification is effective until it is
9.21 	modified, or until the airport or landing area no longer meets
9.22 	the requirements of paragraph (b), clause (4).  For purposes of
9.23 	paragraph (b), clause (4), "public access area" means property
9.24 	used as an aircraft parking ramp, apron, or storage hangar, or
9.25 	an arrival and departure building in connection with the airport.
9.26 	
EFFECTIVE DATE. This section is effective for taxes
9.27 	payable in 2006 and subsequent years.

9.28 	Sec. 6. Minnesota Statutes 2004, section 273.13, is
9.29 	amended by adding a subdivision to read:
9.30 		Subd. 34.Tax capacity; homestead property. The tax
9.31 	capacity of class 1a, 1b, or 1c property, and that portion of
9.32 	class 2a property consisting of the house, garage, and
9.33 	surrounding one acre of land, is equal to 1.5 percent of the
9.34 	household income of all persons residing in the homestead, as
9.35 	defined under section 290A.03, for the calendar year immediately
9.36 	preceding the year in which the tax is levied.
10.1 	
EFFECTIVE DATE. This section is effective for taxes
10.2 	payable in 2006 and subsequent years.

10.3 	Sec. 7. Minnesota Statutes 2004, section 275.065,
10.4 	subdivision 3, is amended to read:
10.5 		Subd. 3.Notice of proposed property taxes.  (a) In the
10.6 	case of property that is not classified as homestead,the county
10.7 	auditor shall prepare and the county treasurer shall deliver
10.8 	after November 10 and on or before November 24 each year, by
10.9 	first class mail to each taxpayer at the address listed on the
10.10 	county's current year's assessment roll, a notice of proposed
10.11 	property taxes.
10.12 	(b) The commissioner of revenue shall prescribe the form of
10.13 	the notice, and shall prepare and deliver the notice according
10.14 	to the procedures specified in paragraph (a) in the case of
10.15 	property which is partially or wholly classified as homestead.
10.16 	(c) The notice must inform taxpayers that it contains the
10.17 	amount of property taxes each taxing authority proposes to
10.18 	collect for taxes payable the following year.  In the case of a
10.19 	town, or in the case of the state general tax, the final tax
10.20 	amount will be its proposed tax.  In the case of taxing
10.21 	authorities required to hold a public meeting under subdivision
10.22 	6, the notice must clearly state that each taxing authority,
10.23 	including regional library districts established under section
10.24 	134.201, and including the metropolitan taxing districts as
10.25 	defined in paragraph (i), but excluding all other special taxing
10.26 	districts and towns, will hold a public meeting to receive
10.27 	public testimony on the proposed budget and proposed or final
10.28 	property tax levy, or, in case of a school district, on the
10.29 	current budget and proposed property tax levy.  It must clearly
10.30 	state the time and place of each taxing authority's meeting, a
10.31 	telephone number for the taxing authority that taxpayers may
10.32 	call if they have questions related to the notice, and an
10.33 	address where comments will be received by mail.
10.34 	(d) The notice must state for each parcel:
10.35 	(1) the market value of the property as determined under
10.36 	section 273.11, and used for computing property taxes payable in
11.1 	the following year and for taxes payable in the current year as
11.2 	each appears in the records of the county assessor on November 1
11.3 	of the current year; and, in the case of residential property,
11.4 	whether the property is classified as homestead or
11.5 	nonhomestead.  The notice must clearly inform taxpayers of the
11.6 	years to which the market values apply and that the values are
11.7 	final values;
11.8 	(2) the items listed below, shown separately by county,
11.9 	city or town, and state general tax, net of the residential and
11.10 	agricultural homestead credit under section 273.1384, voter
11.11 	approved school levy, other local school levy, and the sum of
11.12 	the special taxing districts, and as a total of all taxing
11.13 	authorities:
11.14 	(i) the actual tax for taxes payable in the current year;
11.15 	and
11.16 	(ii) the proposed tax amount.
11.17 	If the county levy under clause (2) includes an amount for
11.18 	a lake improvement district as defined under sections 103B.501
11.19 	to 103B.581, the amount attributable for that purpose must be
11.20 	separately stated from the remaining county levy amount.
11.21 	In the case of a town or the state general tax, the final
11.22 	tax shall also be its proposed tax unless the town changes its
11.23 	levy at a special town meeting under section 365.52.  If a
11.24 	school district has certified under section 126C.17, subdivision
11.25 	9, that a referendum will be held in the school district at the
11.26 	November general election, the county auditor must note next to
11.27 	the school district's proposed amount that a referendum is
11.28 	pending and that, if approved by the voters, the tax amount may
11.29 	be higher than shown on the notice.  In the case of the city of
11.30 	Minneapolis, the levy for the Minneapolis Library Board and the
11.31 	levy for Minneapolis Park and Recreation shall be listed
11.32 	separately from the remaining amount of the city's levy.  In the
11.33 	case of the city of St. Paul, the levy for the St. Paul Library
11.34 	Agency must be listed separately from the remaining amount of
11.35 	the city's levy.  In the case of a parcel where tax increment or
11.36 	the fiscal disparities areawide tax under chapter 276A or 473F
12.1 	applies, the proposed tax levy on the captured value or the
12.2 	proposed tax levy on the tax capacity subject to the areawide
12.3 	tax must each be stated separately and not included in the sum
12.4 	of the special taxing districts; and
12.5 	(3) the increase or decrease between the total taxes
12.6 	payable in the current year and the total proposed taxes,
12.7 	expressed as a percentage.
12.8 	For purposes of this section, the amount of the tax on
12.9 	homesteads qualifying under the senior citizens' property tax
12.10 	deferral program under chapter 290B is the total amount of
12.11 	property tax before subtraction of the deferred property tax
12.12 	amount.
12.13 	(e) The notice must clearly state that the proposed or
12.14 	final taxes do not include the following:
12.15 	(1) special assessments;
12.16 	(2) levies approved by the voters after the date the
12.17 	proposed taxes are certified, including bond referenda and
12.18 	school district levy referenda;
12.19 	(3) a levy limit increase approved by the voters by the
12.20 	first Tuesday after the first Monday in November of the levy
12.21 	year as provided under section 275.73;
12.22 	(4) amounts necessary to pay cleanup or other costs due to
12.23 	a natural disaster occurring after the date the proposed taxes
12.24 	are certified;
12.25 	(5) amounts necessary to pay tort judgments against the
12.26 	taxing authority that become final after the date the proposed
12.27 	taxes are certified; and
12.28 	(6) the contamination tax imposed on properties which
12.29 	received market value reductions for contamination.
12.30 	(f) Except as provided in subdivision 7, failure of the
12.31 	county auditor to prepare or the county treasurer to deliver the
12.32 	notice as required in this section does not invalidate the
12.33 	proposed or final tax levy or the taxes payable pursuant to the
12.34 	tax levy.
12.35 	(g) If the notice the taxpayer receives under this section
12.36 	lists the property as nonhomestead, and satisfactory
13.1 	documentation is provided to the county assessor by the
13.2 	applicable deadline, and the property qualifies for the
13.3 	homestead classification in that assessment year, the assessor
13.4 	shall reclassify the property to homestead for taxes payable in
13.5 	the following year.
13.6 	(h) In the case of class 4 residential property used as a
13.7 	residence for lease or rental periods of 30 days or more, the
13.8 	taxpayer must either:
13.9 	(1) mail or deliver a copy of the notice of proposed
13.10 	property taxes to each tenant, renter, or lessee; or
13.11 	(2) post a copy of the notice in a conspicuous place on the
13.12 	premises of the property.
13.13 	The notice must be mailed or posted by the taxpayer by
13.14 	November 27 or within three days of receipt of the notice,
13.15 	whichever is later.  A taxpayer may notify the county treasurer
13.16 	of the address of the taxpayer, agent, caretaker, or manager of
13.17 	the premises to which the notice must be mailed in order to
13.18 	fulfill the requirements of this paragraph.
13.19 	(i) For purposes of this subdivision, subdivisions 5a and
13.20 	6, "metropolitan special taxing districts" means the following
13.21 	taxing districts in the seven-county metropolitan area that levy
13.22 	a property tax for any of the specified purposes listed below:
13.23 	(1) Metropolitan Council under section 473.132, 473.167,
13.24 	473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
13.25 	(2) Metropolitan Airports Commission under section 473.667,
13.26 	473.671, or 473.672; and
13.27 	(3) Metropolitan Mosquito Control Commission under section
13.28 	473.711.
13.29 	For purposes of this section, any levies made by the
13.30 	regional rail authorities in the county of Anoka, Carver,
13.31 	Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
13.32 	398A shall be included with the appropriate county's levy and
13.33 	shall be discussed at that county's public hearing.
13.34 	
EFFECTIVE DATE. This section is effective for taxes
13.35 	payable in 2006 and subsequent years.

13.36 	Sec. 8. Minnesota Statutes 2004, section 275.08,
14.1 	subdivision 1a, is amended to read:
14.2 		Subd. 1a.Computation of tax capacity.  For taxes payable
14.3 	in 1989, the county auditor shall compute the gross tax capacity
14.4 	for each parcel according to the class rates specified in
14.5 	section 273.13.  The gross tax capacity will be the appropriate
14.6 	class rate multiplied by the parcel's market value.  For taxes
14.7 	payable in 1990 and subsequent years all property which does not
14.8 	qualify for homestead classification, the county auditor shall
14.9 	compute the net tax capacity for each parcel according to by
14.10 	multiplying the appropriate class rates specified in section
14.11 	273.13.  The net tax capacity will be the appropriate class rate
14.12 	multiplied by the parcel's market value. For all properties
14.13 	wholly or partially qualifying for homestead classification, the
14.14 	commissioner of revenue shall compute the tax capacity for each
14.15 	parcel.  The county assessor shall provide the commissioner with
14.16 	sufficient information to compute the net tax capacity for all
14.17 	portions of the property where the tax capacity is not
14.18 	determined under section 273.13, subdivision 34.
14.19 	
EFFECTIVE DATE. This section is effective for taxes
14.20 	payable in 2006 and subsequent years.

14.21 	Sec. 9. Minnesota Statutes 2004, section 276.017,
14.22 	subdivision 1, is amended to read:
14.23 		Subdivision 1.Date of mailing or receipt.  When a
14.24 	payment described in this section is required to be made to a
14.25 	county on or before the prescribed date, the payment is timely
14.26 	if received by the county on or before a prescribed date, or if
14.27 	mailed on or before that date.  This section applies to the
14.28 	payment of current or delinquent real or personal property
14.29 	taxes, any other amount shown as payable on a property tax
14.30 	statement, and all related penalties, interest, or costs.
14.31 	
EFFECTIVE DATE. This section is effective for taxes
14.32 	payable in 2006 and subsequent years.

14.33 	Sec. 10. Minnesota Statutes 2004, section 276.02, is
14.34 	amended to read:
14.35 	276.02  TREASURER TO BE COLLECTOR COLLECTIONS.
14.36 		Subdivision 1.County treasurer. Except as provided in
15.1 	subdivision 2,the county treasurer shall collect all taxes
15.2 	extended on the tax lists of the county and the fines,
15.3 	forfeitures, or penalties received by any person or officer for
15.4 	the use of the county.  The treasurer shall collect the taxes
15.5 	according to law and credit them to the proper funds.  This
15.6 	section does not apply to fines and penalties accruing to
15.7 	municipal corporations for the violation of their ordinances
15.8 	that are recoverable before a city justice.
15.9 		Subd. 2.Commissioner of revenue. The commissioner of
15.10 	revenue shall collect taxes on all properties wholly or
15.11 	partially classified as homestead, including any fines,
15.12 	forfeitures, and penalties resulting from taxes levied on such
15.13 	properties.
15.14 		Subd. 3.Payments. Taxes, fines, interest, and penalties
15.15 	must be paid with United States currency or by check or money
15.16 	order drawn on a bank or other financial institution in the
15.17 	United States.  The county board may by resolution authorize the
15.18 	treasurer to impose a charge for any dishonored checks.
15.19 	The county board may, by resolution, authorize the
15.20 	treasurer and/or other designees to accept payments of real
15.21 	property taxes by credit card provided that a fee is charged for
15.22 	its use.  The fee charged must be commensurate with the costs
15.23 	assessed by the card issuer.  If a credit card transaction under
15.24 	this section is subsequently voided or otherwise reversed, the
15.25 	lien of real property taxes under section 272.31 is revived and
15.26 	attaches in the manner and time provided in that section as
15.27 	though the credit card transaction had never occurred, and the
15.28 	voided or reversed credit card transaction shall not impair the
15.29 	right of a lienholder under section 272.31 to enforce the lien
15.30 	in its favor.
15.31 	
EFFECTIVE DATE. This section is effective for taxes
15.32 	payable in 2006 and subsequent years.

15.33 	Sec. 11. Minnesota Statutes 2004, section 276.03, is
15.34 	amended to read:
15.35 	276.03  TREASURER TO COLLECT COLLECTION OF LOCAL
15.36 	ASSESSMENTS.
16.1 	The commissioner of revenue, or a county treasurer
16.2 	authorized by law to collect local assessments made or levied by
16.3 	a city,shall collect all assessments for local improvements
16.4 	made or levied and certified to the treasurer by the city
16.5 	against any specific tract or parcel of land.  The assessment
16.6 	must be collected at the same time as taxes levied against that
16.7 	tract or parcel of land.

16.8 	EFFECTIVE DATE. This section is effective for taxes
16.9 	payable in 2006 and subsequent years.

16.10 	Sec. 12. Minnesota Statutes 2004, section 276.04,
16.11 	subdivision 2, is amended to read:
16.12 		Subd. 2.Contents of tax statements.  (a) In the case of
16.13 	all properties which do not qualify for homestead
16.14 	classification,the treasurer shall provide for the printing of
16.15 	the tax statements. In the case of all properties wholly or
16.16 	partially qualifying for homestead classification, the
16.17 	commissioner of revenue shall provide for the printing of the
16.18 	tax statements.The commissioner of revenue shall prescribe the
16.19 	form of the property tax statement and its contents.  The
16.20 	statement must contain a tabulated statement of the dollar
16.21 	amount due to each taxing authority and the amount of the state
16.22 	tax from the parcel of real property for which a particular tax
16.23 	statement is prepared.  The dollar amounts attributable to the
16.24 	county, the state tax, the voter approved school tax, the other
16.25 	local school tax, the township or municipality, and the total of
16.26 	the metropolitan special taxing districts as defined in section
16.27 	275.065, subdivision 3, paragraph (i), must be separately
16.28 	stated.  The amounts due all other special taxing districts, if
16.29 	any, may be aggregated.  If the county levy under this paragraph
16.30 	includes an amount for a lake improvement district as defined
16.31 	under sections 103B.501 to 103B.581, the amount attributable for
16.32 	that purpose must be separately stated from the remaining county
16.33 	levy amount.  The amount of the tax on homesteads qualifying
16.34 	under the senior citizens' property tax deferral program under
16.35 	chapter 290B is the total amount of property tax before
16.36 	subtraction of the deferred property tax amount.  The amount of
17.1 	the tax on contamination value imposed under sections 270.91 to
17.2 	270.98, if any, must also be separately stated.  The dollar
17.3 	amounts, including the dollar amount of any special assessments,
17.4 	may be rounded to the nearest even whole dollar.  For purposes
17.5 	of this section whole odd-numbered dollars may be adjusted to
17.6 	the next higher even-numbered dollar.  The amount of market
17.7 	value excluded under section 273.11, subdivision 16, if any,
17.8 	must also be listed on the tax statement.
17.9 	(b) The property tax statements for manufactured homes and
17.10 	sectional structures taxed as personal property shall contain
17.11 	the same information that is required on the tax statements for
17.12 	real property.
17.13 	(c) Except as provided in paragraph (d),real and personal
17.14 	property tax statements must contain the following information
17.15 	in the order given in this paragraph.  The information must
17.16 	contain the current year tax information in the right column
17.17 	with the corresponding information for the previous year in a
17.18 	column on the left:
17.19 	(1) the property's estimated market value under section
17.20 	273.11, subdivision 1;
17.21 	(2) the property's taxable market value after reductions
17.22 	under section 273.11, subdivisions 1a and 16;
17.23 	(3) the property's gross tax, calculated by adding the
17.24 	property's total property tax to the sum of the aids enumerated
17.25 	in clause (4);
17.26 	(4) a total of the following aids:
17.27 	(i) education aids payable under chapters 122A, 123A, 123B,
17.28 	124D, 125A, 126C, and 127A;
17.29 	(ii) local government aids for cities, towns, and counties
17.30 	under chapter 477A; and
17.31 	(iii) disparity reduction aid under section 273.1398;
17.32 	(5) for homestead residential and agricultural properties,
17.33 	the credits under section 273.1384;
17.34 	(6) any credits received under sections 273.119; 273.123;
17.35 	273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
17.36 	473H.10, except that the amount of credit received under section
18.1 	273.135 must be separately stated and identified as "taconite
18.2 	tax relief"; and
18.3 	(7) the net tax payable in the manner required in paragraph
18.4 	(a).
18.5 	(d) Real and personal property tax statements for
18.6 	properties which are wholly or partially classified as homestead
18.7 	must contain the property's household income, along with the
18.8 	information required under paragraph (c), except that clauses
18.9 	(1) and (2) shall only apply to the portion, if any, of the
18.10 	property where the net tax capacity is not determined under
18.11 	section 273.13, subdivision 34.  The information must contain
18.12 	the current year tax information in the right column with the
18.13 	corresponding information for the previous year in a column on
18.14 	the left.
18.15 	(e) If the county uses envelopes for mailing property tax
18.16 	statements and if the county agrees, a taxing district may
18.17 	include a notice with the property tax statement notifying
18.18 	taxpayers when the taxing district will begin its budget
18.19 	deliberations for the current year, and encouraging taxpayers to
18.20 	attend the hearings.  If the county allows notices to be
18.21 	included in the envelope containing the property tax statement,
18.22 	and if more than one taxing district relative to a given
18.23 	property decides to include a notice with the tax statement, the
18.24 	county treasurer or auditor must coordinate the process and may
18.25 	combine the information on a single announcement.
18.26 	The commissioner of revenue shall certify to the county
18.27 	auditor the actual or estimated aids enumerated in clause (4)
18.28 	that local governments will receive in the following year.  The
18.29 	commissioner must certify this amount by January 1 of each year.
18.30 	
EFFECTIVE DATE. This section is effective for taxes
18.31 	payable in 2006 and subsequent years.

18.32 	Sec. 13. Minnesota Statutes 2004, section 276.04,
18.33 	subdivision 3, is amended to read:
18.34 		Subd. 3.Mailing of tax statements. The commissioner of
18.35 	revenue, in the case of property wholly or partially classified
18.36 	as homestead, or the county treasurer, in the case of all other
19.1 	properties,shall mail to taxpayers statements of their personal
19.2 	property taxes due not later than April 15 for property taxes
19.3 	payable in 1990 and March 31 thereafter, except in the case of
19.4 	manufactured homes and sectional structures taxed as personal
19.5 	property.  Statements of the real property taxes due shall be
19.6 	mailed not later than April 15 for property taxes payable in
19.7 	1990 and March 31 thereafter.  The validity of the tax shall not
19.8 	be affected by failure of the treasurer to mail the statement.
19.9 	The taxpayer is defined as the owner who is responsible for the
19.10 	payment of the tax.
19.11 	
EFFECTIVE DATE. This section is effective for taxes
19.12 	payable in 2006 and subsequent years.

19.13 	Sec. 14. Minnesota Statutes 2004, section 276.09, is
19.14 	amended to read:
19.15 	276.09 SETTLEMENT BETWEEN AUDITOR AND TREASURER.
19.16 	On the later of May 20 of each year or 26 calendar days
19.17 	after the postmark date on the envelopes containing real or
19.18 	personal property tax statements, the commissioner of revenue
19.19 	and the county treasurer shall make full settlement with the
19.20 	county auditor of all receipts collected for all purposes, from
19.21 	the date of the last settlement up to and including each day
19.22 	mentioned.  The county auditor shall, within 30 days after the
19.23 	settlement, send an abstract of it to the state auditor in the
19.24 	form prescribed by the state auditor.  At the settlement the
19.25 	treasurer shall make complete returns of the receipts on the
19.26 	current tax list, showing the amount collected on account of the
19.27 	several funds included in the list.
19.28 	Settlement of receipts from the later of May 20 or the
19.29 	actual settlement date to December 31 of each year must be made
19.30 	as provided in section 276.111.
19.31 	For purposes of this section, "receipts" includes all tax
19.32 	payments received by the county treasurer on or before the
19.33 	settlement date.

19.34 	EFFECTIVE DATE. This section is effective for taxes
19.35 	payable in 2006 and subsequent years.

19.36 	Sec. 15. [477A.09] SUPPLEMENTAL AID.
20.1 		Subdivision 1.Determination of tax base loss. For taxes
20.2 	payable in 2006, the commissioner of revenue shall determine the
20.3 	change in net tax capacity and referendum market value in each
20.4 	taxing jurisdiction in the state under sections 1 to 6.  For
20.5 	each jurisdiction whose net tax capacity or referendum market
20.6 	value was reduced, the commissioner shall determine the revenue
20.7 	loss attributable to the reduction by multiplying the amount
20.8 	lost by the jurisdiction's tax capacity tax rate or referendum
20.9 	market value tax rate for taxes payable in 2005.
20.10 		Subd. 2.Aid amount. Each jurisdiction which was found
20.11 	to have lost net tax capacity or referendum market value in
20.12 	subdivision 1 shall be entitled to an annual aid payment.  The
20.13 	payment shall be equal to the aid appropriation under
20.14 	subdivision 3 multiplied by the proportionate share of the
20.15 	jurisdiction's loss as determined under subdivision 1, relative
20.16 	to the loss of all jurisdictions in the state determined under
20.17 	subdivision 1.
20.18 		Subd. 3.Notification. Each jurisdiction shall be
20.19 	notified of its aid amount by August 1 of each assessment year.
20.20 		Subd. 4.Appropriation; payment. The sum of $280,000,000
20.21 	is annually appropriated from the general fund to make the
20.22 	payments required under this section.  The aid amounts payable
20.23 	to jurisdictions other than school districts is appropriated to
20.24 	the commissioner of revenue; payments shall be made in the
20.25 	manner described under section 477A.015.  The aid amounts
20.26 	payable to school districts are appropriated to the commissioner
20.27 	of education.
20.28 	
EFFECTIVE DATE. This section is effective for aids
20.29 	payable in 2006 and subsequent years.

20.30 	Sec. 16. REPEALER.
 20.31 	Minnesota Statutes 2004, section 273.1384, subdivision 1,
20.32 	is repealed.

20.33 	EFFECTIVE DATE. This section is effective for taxes
20.34 	payable in 2006 and subsequent years.