1.1                          A bill for an act 
  1.2             relating to taxation; providing for annual adjustments 
  1.3             of certain payments in lieu of taxation; transferring 
  1.4             administration of the program to the commissioner of 
  1.5             revenue; amending Minnesota Statutes 1998, sections 
  1.6             477A.11, subdivision 1; 477A.12; 477A.13; and 477A.14; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 477A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 477A.11, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [TERMS.] For the purpose of Laws 1979, 
  1.13  Chapter 303, Article 8, Sections 1 to 5 sections 477A.11 to 
  1.14  477A.14, the terms defined in this section have the meanings 
  1.15  given them. 
  1.16     Sec. 2.  Minnesota Statutes 1998, section 477A.12, is 
  1.17  amended to read: 
  1.18     477A.12 [ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; 
  1.19  CERTIFICATION OF ACREAGE.] 
  1.20     (a) There is annually appropriated to the commissioner of 
  1.21  natural resources revenue from the general fund for payment to 
  1.22  counties within the state an amount equal to: 
  1.23     (1) for acquired natural resources land, $3, as adjusted 
  1.24  for inflation under section 477A.145, multiplied by the total 
  1.25  number of acres of acquired natural resources land or, beginning 
  1.26  July 1, 1996, at the county's option three-fourths of one 
  1.27  percent of the appraised value of all acquired natural resources 
  2.1   land in the county, whichever is greater; 
  2.2      (2) 75 cents, as adjusted for inflation under section 
  2.3   477A.145, multiplied by the number of acres of 
  2.4   county-administered other natural resources land; and 
  2.5      (3) 37.5 cents, as adjusted for inflation under section 
  2.6   477A.145, multiplied by the number of acres of 
  2.7   commissioner-administered other natural resources land located 
  2.8   in each county as of July 1 of each year. 
  2.9      (b) Lands for which payments in lieu are made pursuant to 
  2.10  section 97A.061, subdivision 3, and Laws 1973, chapter 567, 
  2.11  shall not be eligible for payments under this section.  Each 
  2.12  county auditor shall certify to the department of natural 
  2.13  resources during July of each year the number of acres of 
  2.14  county-administered other natural resources land within the 
  2.15  county.  The department of natural resources may, in addition to 
  2.16  the certification of acreage, require descriptive lists of land 
  2.17  so certified.  The commissioner of natural resources shall 
  2.18  determine and certify to the commissioner of revenue the number 
  2.19  of acres of acquired natural resources land and 
  2.20  commissioner-administered natural resources land within each 
  2.21  county. 
  2.22     (c) For the purposes of this section, the appraised value 
  2.23  of acquired natural resources land is the purchase price for the 
  2.24  first five years after acquisition.  The appraised value of 
  2.25  acquired natural resources land received as a donation is the 
  2.26  value determined for the commissioner of natural resources by a 
  2.27  licensed appraiser, or the county assessor's estimated market 
  2.28  value if no appraisal is done.  The appraised value must be 
  2.29  determined by the county assessor every five years after the 
  2.30  land is acquired. 
  2.31     Sec. 3.  Minnesota Statutes 1998, section 477A.13, is 
  2.32  amended to read: 
  2.33     477A.13 [TIME OF PAYMENT, DEDUCTIONS.] 
  2.34     Payments to the counties shall be made from the general 
  2.35  fund during the month of July of the year next following 
  2.36  certification.  There shall be deducted from amounts paid any 
  3.1   amounts paid to a county or township during the preceding year 
  3.2   pursuant to sections 97A.061, subdivisions 1 and 2, and section 
  3.3   272.68, subdivision 3, with respect to the lands certified 
  3.4   pursuant to section 477A.12. 
  3.5      Sec. 4.  Minnesota Statutes 1998, section 477A.14, is 
  3.6   amended to read: 
  3.7      477A.14 [USE OF FUNDS.] 
  3.8      Forty percent of the total payment to the county shall be 
  3.9   deposited in the county general revenue fund to be used to 
  3.10  provide property tax levy reduction.  The remainder shall be 
  3.11  distributed by the county in the following priority:  
  3.12     (a) 37.5 cents, as adjusted for inflation under section 
  3.13  477A.145, for each acre of county-administered other natural 
  3.14  resources land shall be deposited in a resource development fund 
  3.15  to be created within the county treasury for use in resource 
  3.16  development, forest management, game and fish habitat 
  3.17  improvement, and recreational development and maintenance of 
  3.18  county-administered other natural resources land.  Any county 
  3.19  receiving less than $5,000 annually for the resource development 
  3.20  fund may elect to deposit that amount in the county general 
  3.21  revenue fund; 
  3.22     (b) From the funds remaining, within 30 days of receipt of 
  3.23  the payment to the county, the county treasurer shall pay each 
  3.24  organized township 30 cents per, as adjusted for inflation under 
  3.25  section 477A.145, for each acre of acquired natural resources 
  3.26  land and 7.5 cents per, as adjusted for inflation under section 
  3.27  477A.145, for each acre of other natural resources land located 
  3.28  within its boundaries.  Payments for natural resources lands not 
  3.29  located in an organized township shall be deposited in the 
  3.30  county general revenue fund.  Payments to counties and townships 
  3.31  pursuant to this paragraph shall be used to provide property tax 
  3.32  levy reduction, except that of the payments for natural 
  3.33  resources lands not located in an organized township, the county 
  3.34  may allocate the amount determined to be necessary for 
  3.35  maintenance of roads in unorganized townships.  Provided that, 
  3.36  if the total payment to the county pursuant to section 477A.12 
  4.1   is not sufficient to fully fund the distribution provided for in 
  4.2   this clause, the amount available shall be distributed to each 
  4.3   township and the county general revenue fund on a pro rata 
  4.4   basis; and 
  4.5      (c) Any remaining funds shall be deposited in the county 
  4.6   general revenue fund.  Provided that, if the distribution to the 
  4.7   county general revenue fund exceeds $35,000, the excess shall be 
  4.8   used to provide property tax levy reduction. 
  4.9      Sec. 5.  [477A.145] [INFLATION ADJUSTMENT.] 
  4.10     In 2001 and each year thereafter, the amounts required to 
  4.11  be adjusted for inflation in sections 477A.12 and 477A.14 shall 
  4.12  be increased to an amount equal to:  (1) the amount before the 
  4.13  inflation adjustment multiplied by (2) one plus the percentage 
  4.14  increase in the implicit price deflator for government 
  4.15  consumption expenditures and gross investment for state and 
  4.16  local governments prepared by the Bureau of Economic Analysis of 
  4.17  the United States Department of Commerce for the period starting 
  4.18  with 1980 and ending with the calendar year prior to the year in 
  4.19  which aid is paid. 
  4.20     Sec. 6.  [EFFECTIVE DATE.] 
  4.21     Sections 1 to 5 apply to payments made in 2001 and 
  4.22  thereafter.