2013 Minnesota Property Tax Updates

Estate Tax

2013 PROPERTY TAX LEGISLATIVE BULLETIN

(2013 Regular Session)

Bulletin Date: May 31,2013
MINNESOTA· REVENUE
Appeals and Legal Services Division
600 North Robert Street
Saint Paul, Minnesota 55146-2220

Unless otherwise noted, the provisions discussed in this bulletin can be found in 2013 Minn. Laws, Chapter 143.

Tax forfeited lands; school forests.

Minn. Stat. § 89.41, and § 282~01, subds. la and l d were amended to provide that conveyances of tax forfeited land by the commissioner of revenue for school forest purposes, upon approval by the affected county board, are subject to perpetual use restrictions notwithstanding the recently-enacted duration limits for the use restrictions on other public use deeds issued on behalf of the state by the commissioner of revenue under Minn. Stat. § 282.01, subd. la. Effective May 21,2013. 2013 Minn. Laws, Chapter 73, Sections 2, 4, and 5.

Tax levies; comprehensive watershed management plans.

Minn. Stat. § 103B.335, subd. 1 and 2 were amended to authorize counties, cities, and towns to levy property taxes to implement a comprehensive watershed management plan defined in Minn. Stat. § 103B.3363; and to authorize counties to levy amounts for administration of a comprehensive watershed management plan.Effective July 1,2013.

Tax levies; water resources restoration, protection, and management.

Minn.Stat.§ 103B.3369, subd. 5, was amended to specify that the Board of Water and Soil Resources determines a minimum amount, rather than a rate, for the tax a local unit intends to use for its share of a state grant, and to allow a non-metro county’s agricultural conservation fee revenues to be used to fund its local share. Conservation fee revenues in a county’s account that are not encumbered within a year must be transferred to the state treasury and used to fund property tax credits under Minn. Stat. § 273.119 (non-metro county conservation property tax credits) and Minn. Stat. § 473 H.l 0 (metropolitan area agricultural preserve property tax credits). Effective July 1,2013.

Environment and natural resources trust fund; acquisition of lands.

Minn. Stat. § 116P .17, was amended by adding the new subd. 2, which requires entities receiving money from the environment and natural resources trust fund that will be used to acquire an interest in real property to submit the most recent property tax value notice and tax statement for the land to the Legislative-Citizen Commission on Minnesota Resources and to the commissioner of natural resources. The Board of Water and Soil Resources is excepted from this requirement, but must keep records of the most recent property tax value and tax statement for land subject to a conservation easement it acquires.2013 Minn. Laws, Chapter 52, Section 8. Effective July 1,2013.

Exemptions; manufactured home in a dealer’s inventory.

Minn. Stat. § 168.012, subd. 9, and Minn. Stat. § 168.012, were amended by adding the new subdivision 9a. These changes clarify that a vacant manufactured home held in dealer inventory can be exempt as inventory even if the home remains connected to utilities and located in a horne park. Effective for taxes payable in 2014 and thereafter.

Air flight property tax collection.

Minn. Stat. § 270.077 was amended to clarify that the commissioner of revenue collects the air flight property tax. Previous law only required the tax to be credited to the state airports fund but did not specifically require the commissioner to collect the tax. Effective May 24, 2013.

Air flight property tax penalties. Minn. Stat. § 270C.34, subd. 1, was amended to add a citation to Minn. Stat. § 270.075 allowing the commissioner to abate air flight property tax late payment penalties. The statute refers to both late payment and late filing penalties but only cross references the late filing penalties in 270.0725. Including a cross reference to the late payment penalties in § 270.075 clarifies that the commissioner has the power to abate both late payment and late filing penalties upon finding reasonable cause. Effective May 24,2013.

Usage taxation. Minn. Stat. § 272.01, subd. 2(d), was amended to clarify that the property taxes that apply to the use of federal real property are assessed as a personal property tax against the user. Minn. Stat. § 273.19, subd. 1, was amended to clarify that the tax under that section on leased exempt property does apply in the case of property owned by a local unit of government. Effective May 24, 2013.

Exemptions; property held for economic development

Minn. Stat. § 272.02, subd. 39, was amended to expand the scope of the 15-year statutory exemption for real property held by a non­ metro city for later resale as part of economic development so that it now applies to: (1) property in non-metro cities with populations of up to 20,000 (previously 5,000); and, (2) property acquired after 1999 and before 2011 if it is located in any city. Effective for taxes payable in 2014 and thereafter.

Exemptions; direct reduced ore

Minn. Stat. § 272.02, subd. 97 was amended to clarify that this exemption does not cover direct reduced ore. Effective May 24,2013.

Exemptions; tribal property

Minn. Stat. § 272.02, was amended by adding the new subd. 98, to exempt property described in the paragraph that is owned by an instrumentality of a Minnesota tribal government and located in a first class city with a 2010 population over 300,000 (i.e., the city of Minneapolis). Effective for taxes payable in 2014 through 2023.

Exemptions; machinery and equipment used to generate electricity

Minn. Stat. § 272.02 was amended by adding the new subdivision 99. Exempts machinery and equipment at natural gas­ fueled generation facilities owned by municipal power agencies serving the metro area that exceed 5 megawatts of capacity if construction begins after June 1,2013 and before June 1,2017. Effective for taxes payable in 2014 and thereafter.

Exemptions; machinery and equipment used to generate electricity

Minn. Stat. § 272.02 was amended by adding the new subdivision 101. Exempts machinery and equipment at generation facilities owned by municipal power agencies that exceed 5 megawatts of capacity if construction begins after June 1,2013 and before June 1,2017. Effective for taxes payable in 2014 and thereafter.

Agricultural homesteads

Minn. Stat. § 272.03, subd. 9 was amended to clarify the definition of “person” for property tax purposes. Effective May 24, 2013. § 273.13, subd. 23, par. (e) and (f), were amended to clarify that: (i) intensive livestock and poultry confinement operations are agricultural even when they are less than 10 acres in size; (ii) land must be agricultural when enrolled in a conservation program restricting usage in order to remain classified as such; and, (iii) the 10-acre parcel size-limit includes eleven acre parcels that have a house, because one acre surrounding the house is statutorily required to be treated as in residential use. Effective for taxes payable in 2014 and thereafter.

“Rural Preserves” program; ownership changes.

Minn. Stat. § 273.114, subd. 6 (the “rural preserve property tax program”) was amended. The changes in paragraph (a), and the new language in paragraph (b), clarify that a sale or transfer disqualifies the land, but that new owners may qualify without an intervening period of disqualification. The new language in paragraph (c) provides that the following will not be treated as sales or transfers, meaning that the land will continue to qualify without the need for a new application: 1) a transfer of the property to a surviving owner due to death; 2) a transfer of the property to a spouse by reason of marriage or divorce; or 3) a transfer of the property to a trust or authorized farming partnership, corporation, or company when the same people retain the same beneficial interests. Effective May 24, 2013.

Valuations; conservation easements.

Minn. Stat. 273.117 was amended to impose the requirement that an assessor cannot reduce the valuation of any real property, if that property is subject to a conservation restriction or easement and used in accordance with the terms of the restriction or easement; except in the case of (i) restrictions and easements for buffers along lakes, rivers, and streams that are used for water quantity or quality control, and (ii) easements in a county that adopted a program to protect farmland by referendum in 1999. Under the definition in Minn. Stat. § 84.64, subd. 2, this limitation does not apply to farm land. Effective for taxes payable in 2014 and thereafter.

Property tax administration; homestead applications.

Minn. Stat. § 273.124, subd. 13, par. (f) was amended to remove obsolete language, related to the mailing of homestead applications, that was not removed when the annual mailing requirements were removed in 1993. Effective May 24, 2013. 2013 Minn. Laws, Chapter 82, Section 20.

Property tax administration; private data on taxpayer forms.

Minn. Stat. § 273.124, subd. 13 was amended. The last paragraph of paragraph (c) was stricken and reenacted as the separate §273 .1245 so that private income tax returns and information supplied to the property tax assessor to support an application for a property tax classification or benefit remains private data; as is the case now for private data supplied on a homestead application. For the sake of clarity, paragraphs (g), (h) thru G), (k), and (l), of the current subdivision 13 are converted to subdivisions 13a, 13b, 13c, and 13d, respectively. Minn. Stat. § 13.4965, subd. 3; § 273.1315, subds. 1 and 2; and § 290A.25 were amended to update cross-references. Effective May 24,2013. 2013 Minn. Laws, Chapter 82, Sections 6 and 20-24.

Class rates; low-income housing.

Minn. Stat. § 273.13, subd. 25 was amended to reduce the class rate for the taxable market value of each unit of class 4d, low-income rental housing, that exceeds the “first tier” amount from 0.75% to 0.25%. For this purpose, a unit includes the associated portion of land and building. For taxes payable in 2014 and 2015, the “first tier” amount is $100,000. For subsequent years, the amount is increased in $1,000 increments by the increase in the average estimated market value for class 4a apartments and class 4d low-income rental housing properties. An increase in the first tier amount for taxes payable in the following year must be certified by the commissioner of revenue by November 1. Effective for taxes payable in 2014 and thereafter. An uncodified provision, effective July 1, 2013, requires the commissioners of revenue and the housing finance agency to report to the legislature by January 31, 2015 on the utilization of this provision and the characteristics of the properties to which it applies.

Class 4bb residential classifications.

Minn. Stat. § 273.13, subd. 25, par. (c), was amended to eliminate the two separate property tax classifications in class 4bb for nonhomestead single-unit residences that are located on either non-agricultural property (currently class 4bb(I», or agricultural property (currently class 4bb(2». This is a conforming change to Minn. Stat. § 123A.455, subd. 1 to delete a reference to the clause that was eliminated. Effective for taxes payable in 2014 and thereafter.

Administrative appeals for railroads and utilities.

Minn. Stat. § 273.372, subd. 4, was amended to allow railroads until the earlier of June 15 or ten days after the date of the valuation, and utilities until the earlier of July 1 or ten days after the valuation; to file an administrative appeal of their property tax valuations. Effective beginning with assessment year 2014.

Definition of rural area for electrical cooperatives per capita tax.

Minn. Stat. § 273.39, the definition of rural area, was amended to refer to “statutory cities” and “home rule charter cities”. All cities are now either statutory cities or home rule charter cities. Effective May 24,2013.

Tax payment due dates; persons on active federal service.

Minn. Stat. § 279.01, subd. 1 was amended, and the new § 279.01, subd. 5 was enacted, to provide National Guard members and Reservists who are on active federal service (defined in Minn. Stat. § 190.05, subd. 5c) with a four­ month extension of the due dates under § 279.01 for the payment of property taxes on homestead property they own without a penalty for late payment, if a copy of their valid orders or form DD214 is included when making the payment. Minn. Stat. § 279.02 was amended, by adding the new subdivision 2, to provide that unpaid taxes on a property classified as a homestead for property tax purposes, and owned by aN ational Guard member or Reservist in active federal service will not become delinquent on the date they otherwise would, if the due date under § 279.01 for the unpaid taxes fell on a date that the individual was on federal active service. Effective July 1,2013.

Notice of delinquent property tax.

Minn. Stat. § 279.06, subd. 1, was amended to eliminate obsolete text from the notice regarding the various times within which the owners of different types of property may avoid a forfeiture of the property by paying the taxes, costs, and interest. Replaces that language with an instruction that the commissioner of revenue will provide a correct and complete narrative description of the various redemption periods that the respective county auditors will include in the notice. Effective for lists and notices required after December 31, 2013.

Delinquent property taxes; confessions of judgment.

Minn. Stat. § 279.37, subds. la and 2 were amended to provide that a confession of judgment for delinquent property taxes on class 3a property (commercial/industrial/utility) requires the approval of the county auditor; who may impose conditions including environmental remediation action plan requirements. Also allows authorities that have imposed special assessments on class 3a property the new options under a confession of judgment of either including the delinquent assessments in the amount eligible for payment by installments, or of abating all the unpaid assessments under Minn. Stat. § 375.192 (along with the associated penalty and interest amounts), and of reassessing them under Minn. Stat. § 429.071, subd. 2, which includes an option of payment by installments. Effective July 1, 2013.

Delinquent property taxes; time for redemption.

Minn. Stat. § 281.14 and § 281.17 were amended to change the period within which to redeem real property from a tax sale from five years to three years for homesteads, seasonal-residential properties, and other properties located outside of an incorporated municipality; and, to eliminate the shortened, two-year redemption period for nonhomestead agricultural property owned by a person who owns other parcels upon which the taxes are delinquent and the delinquent taxes are more than 25% of the prior year’s school district levy. Effective July 1,2013.

Hennepin and Ramsey county mortgage registry and deed taxes.

Minn. Stat. § 287.05 was amended by adding the new subd. 5, and Minn. Stat., chapter 287 was amended by enacting the new § 287.40, to authorize Hennepin and Ramsey county to each impose the mortgage registry and deed taxes described in Minn. Stat. § 383A.80 and § 383B.80 respectively for mortgages and deeds recorded in the county. These taxes were previously authorized, but the authority for each county expired on January 1, 2013. Minn. Stat. § 383A.80, subd. 4 and § 383B.80, subd. 4, were amended to authorize these county mortgage and deed taxes for fifteen years. Effective for mortgages and deeds that are acknowledged after June 30, 2013.

Senior citizens’ property tax deferral program.

Minn. Stat. § 290B.04, subd. 2, was amended to allow the commissioner to prescribe the form of the lien notices recorded under this program, eliminating the need for these lien notices to be notarized or contain a statutorily-prescribed notation that the document was drafted by the commissioner of revenue. Effective for lien notices that are both executed and recorded after June 30, 2013.

Property tax credits; disparity reduction credit.

Minn. Stat. § 273.1398, subd. 4, was amended so that the border-city disparity reduction credit reduces the effective property tax rate for qualifying class 3a (commercial-industrial) and class 4a (residential-rental) properties to 1.9% (previously 2.3%). Effective for taxes payable in 2014 and thereafter.

County capital improvement bonds.

Minn. Stat. § 373.40, subd. 2, was amended to eliminate a requirement that the commissioner of revenue prepare the form of the question for any required reverse referenda. Effective July 1, 2013.

Taconite taxes; property tax relief.

Minn. Stat. § 298.28, subd. 6 was amended to increase the amount per ton of the taconite production tax that is allocated to fund the property tax relief for homestead properties that is provided in Minn. Stat. § 273.134-.136 to 34.8 cents (formerly 33.9 cents). Effective beginning with amounts distributed in 2014.

Local pension fund amortization aids.

Minn. Stat. § 423A.02, subds. 1 and 2, were amended to provide Amortization Aid to the cities of Fairmont and Minneapolis until municipal contributions to the state police and fire retirement fund are no longer required. Minn. Stat. § 423A.02, subd. 1a is repealed, eliminating Supplementary Amortization Aid. Minn. Stat. § 423A.02, subd. 1b, was amended to change the allocations of, and funding for, Additional Amortization Aid. Minn. Stat. § 423A.02, subd. 3 was amended to change provisions pertaining to the annual Reallocation of Amortization Aid, and to eliminate obsolete references. Minn. Stat. § 423A.02, subd. 3a, was amended to change the annual appropriations for Amortization Aid and the Reallocation of Amortization Aid, and to eliminate an obsolete appropriation. Minn. Stat. § 423A.02, subd. 4 was amended to update references within provisions that limit the total aid for a municipality under this section. Minn. Stat. § 423A.02, subd. 5 was amended to modify the conditions when Amortization Aid and Additional Amortization Aid are terminated, and to eliminate obsolete references. Effective June 1,2013. An uncodified provision validates all allocations of Amortization Aid, Supplementary Amortization Aid, and Additional Amortization Aid made by the commissioner of revenue before January 1,2013. Effective July 1,2013. 2013 Minn. Laws, Chapter 111.

State aids; police & firefighter retirement supplemental state aid.

Minn. Stat., chapter 423A was amended by enacting the new § 423A.022, under which $15.5 million of supplemental state aid related to police and firefighter retirement benefits will be distributed each calendar year. Each October 1, the commissioner of revenue is to distribute this supplemental state aid: (1) 58.065% (approx.) to the Public Employees Retirement Association (PERA) for the Public Employees Police and Fire Retirement Fund (PEP&FRR); (2) 35.484% (approx.) to municipalities that employ firefighters with retirement coverage other than by PEP&FRR in proportion to the amount of fire state aid under Minn. Stat. § 69.021, subd. 7 for each of those municipalities (allocated to PERA if the municipality’s firefighters participate in the voluntary statewide lump-sum volunteer firefighter retirement fund and otherwise allocated to the municipality’s firefighter relief association); and, (3) 6.452% (approx.) for the State Patrol Retirement Rund (SPRF) within the Minnesota State Retirement System (MSRS). By September 1, annually, PERA supplies the commissioner of revenue with the information necessary to compute these distributions. Municipalities and relief associations not in compliance with the financial reporting requirements of Minn. Stat., chapter 69 do not receive aid. The aid terminates December 1 following the next actuarial valuation that determines that both the PEP&FPR and the SPRF are 90% funded. Effective beginning July 1,2013.

Special service districts and housing improvement districts.

Minn. Stat. § 428A.l Oland § 428A.21 were amended to delay by 15 years – from July 1,2013 until July 1,2028 — the imposition of a statutory requirement that creation of a municipal special service or housing improvement district be done through the enactment of a special law by the legislature. Effective May 24, 2013.

Border city enterprise and development zones.

Amends Minn. Stat. § 469.169, subds. 12, 14, 15, 16, 17, and 18, to eliminate obsolete statutory language related to border city enterprise and development zones in the cities of Moorhead, Dilworth, East Grand Forks, Breckenridge, and Ortonville. Effective August 1,2013. 2013 Minn. Laws, Chapter 125, Article 1, Sections 72-77.

State aids; border city enterprise and development zones.

Minn. Stat. § 469.169 was amended by enacting the new subd. 19, to allocate an additional $1.5 million for tax offsets and reductions in enterprise and development zones located in cities on the western border of the state. Effective July 1, 2013. Minn. Stat. § 469.176, subd. 4c was amended to eliminate qualified border retail facilities from the list of facilities that are ineligible for subsidy with increment revenues from economic development tax increment financing districts, and to eliminate an obsolete paragraph. Effective for districts for which the certification request is submitted after June 30, 2013.

Tax increment financing; four-year “rule.”

Minn. Stat. § 469.176, subd. 6, was amended. For districts created January 1,2005 through April 20, 2009, the six-year deadline for commencement of physical changes to the property in a tax increment financing district in order for the increase in value ofthe parcel to be captured for tax increment purposes, was changed to a fixed deadline of December 31, 2016. Effective May 24,2013 and applies to districts certified on or after January 1,2005 and before April 20, 2009.

Tax increment financing; adjustments related to school taxes.

Minn. Stat. § 469.177, subd. la was amended to exclude the school tax rate attributable to the general education levy, under Minn. Stat. § 126C.13, from the original tax rate of a district. Minn. Stat. § 469. 177, subd. 9 was amended to exclude the taxes attributable to the general education levy, under Minn. Stat. § 126C.13, from the captured tax of a district. Effective for districts for which the date of the request for certification is after April 15, 2013.

Tax increment financing; tax capacity adjustment for homestead properties.

Minn. Stat. § 469.177 was amended, by adding the new subd. 1d, to allow qualified authorities to elect an adjustment to original net tax capacity for current tax base loss that is attributable to the 2011 market value exclusion for homestead properties under Minn. Stat. § 273.13, subd. 35. Effective May 24, 2013 for all districts.

Tax increment financing; adjustment for low-income housing.

Minn. Stat. § 469.177 was amended, by adding the new subd. Ie, to provide a reduction of up to $20,000 in original net tax capacity for districts certified in 2011 for which at least 75% of the current net tax capacity of the district is class 4d low-income rental housing, and the average estimated market value of the class 4d units exceeds $115,000. Effective beginning with taxes payable in 2014, and expires on December 31, 2021.

Destination Medical Center; property tax abatements and tax increment financing; special provisions.

Minn. Stat., chapter 469 was amended by enacting the new Minn. Stat. § 469.45, subds.3 and 4, to allow the city of Rochester to grant economic abatements of property taxes under Minn. Stat. §§ 469.1812-.1815 without the limits in § 469.1813, subds. 6 and 8; and, to allow the city to create redevelopment tax increment financing districts within the medical center development district without meeting certain requirements and free from specified spending limitations. Effective upon timely local compliance with Minn. Stat. § 645.021, subds. 2 and 3.

Metro-area fiscal disparities program; Bloomington.

Minn. Stat. § 473F.08, subd. 3a was amended to relieve Bloomington of the additional contribution of tax base to the area-wide pool for the last four years of the statutory adjustment under which the city repaid the loan it got from the area-wide pool in the 1980’s and 1990’s (used in part to construct highway improvements related to the Mall of America). Instead, the state will make payments to increase the annual area-wide tax distributions by the amount the city would have repaid from 2015 to 2018 (i.e., the average annual additional area-wide taxes distributed to Bloomington from 1988 to 1999 divided by the prior year’s fiscal disparities area-wide tax rate – to determine a tax base amount – times the area-wide tax rate for the current year). The metro-area administrative auditor makes the necessary computations and the commissioner of revenue makes annual payments to the auditor from the state’s general fund in two installments on July 10 and November 10. Effective for payments in 2015 through 2018.

Metro-area fiscal disparities program; old Cedar Avenue bridge.

Minn. Stat. § 473F.08 was amended by adding the new subdivision 3c; and, enacts two uncoded provisions that require a portion of the city of Bloomington’s commercial/industrial tax base located within tax increment financing districts No. l-C and No. I-D, which would otherwise be contributed to the area wide fiscal disparities pool, to be used for up to ten years to generate funds for Metropolitan council to repair, restore, or replace the old Cedar Avenue bridge for use by bicycle commuters and for other recreational uses. Effective beginning for taxes payable in 2014.

City capital improvement bonds.

Minn. Stat. § 475.21, subd. 2, was amended to eliminate a requirement that the commissioner of revenue prepare the form of the question for any required reverse referenda. Effective July 1, 2013.

State aid; “local government aid” for cities and counties.

Unless otherwise noted, all of these “Local Government Aid” provisions are effective for aid payable in 2014 and thereafter.

Minn. Stat. § 477AOll, subds. 30, 34,42, was amended and the new subds. 30a, 44, and 45, were enacted to specify the “pre-1940 housing,” “housing between 1940 and 1970,” “city revenue need,” “jobs per capita,” “peak population decline,” and “sparsity adjustment” factors that are used in the city-aid formula.

Minn. Stat. § 477A013, subd. 8, was amended to modify each city’s formula aid amount for aid paid in 2014 and for aid paid in 2015 and thereafter.

Minn. Stat. § 477 A 013, subd. 9, was amended to modify the annual amount of aid distributed to each city for aid paid in 2014 and thereafter.

Minn. Stat. § 477 A 013 was amended by adding the new subdivision 13, to modify the city aid distribution amounts determined under Minn. Stat. § 477A013, subd. 9, by increasing the aid for Warroad and reducing the aid for Newport, Crookston, and Mendota. Effective July 1, 2013.

Minn. Stat. § 477 A 015 was amended to require that a city located in an area deemed a disaster area under Minn. Stat. § 12AOl, subd. 5 in April, 2013 must receive the amount of its December 26, 2013 installment of state aid under Minn. Stat. §§ 477 A011-.014 on or before July 20, 2013. Effective for aid paid in 2013 and thereafter.

Minn. Stat. § 477A03, subd. 2a, was amended to increase the total city aid under Minn. Stat. § 477A013, subds. 9 and 13 by $80 million for 2014 – i.e., to $506,438,012 and, to increase the total for each subsequent year by the inflation adjustment provided in the new Minn. Stat. § 477.03, subd. 6.

Minn. Stat. § 477A03, subd. 2b, was amended to increase the total county “need” aid under Minn. Stat. § 477A.OI24, subd. 3 that may be paid each year by $15 million – i.e., to $95,295,000 and, to increase the total county “tax-base equalization” aid under Minn. Stat. § 477 A0124, subd. 4 that may be paid each year by $15 million – i.e., to $99,909,575.

Amends Minn. Stat. § 477A03, by adding the new subdivision 6. This is the inflation adjustment for the total amount of city local government aid that may be paid out beginning in 2015. The annual inflation adjustment is defined as the sum of the rate of increase in the specified implicit price deflator for the 12-month period ending March 31 of the previous year, and the rate of increase in the total population of Minnesota cities; however, it cannot be less than 2.5% nor more than 5% for anyone year.

State payments in lieu of taxes; natural resources lands.

Minn. Stat., chapter 477A, was amended by enacting the new Minn. Stat. § 477 Al 0 (“Purposes”). Amends Minn. Stat. § 477 All, subds. 3 and 4; and, adds the new subds. 6, 7, and 8. Amends Minn. Stat. § 477A.12, subds. 1,2, and 3. Amends Minn. Stat. § 477 A14, subd. 1; and, adds the new subd. 3. Repeals Minn. Stat. § 97 A061 (public hunting and game refuges) , and 1973 Minn. Laws, Chapter 567, Section 7, as amended by 1977 Minn. Laws, Chapter 403, Section 12 (St. Croix Wild River State Park). Reorganizes the provisions related to state payments in lieu of taxes to local units of government for natural resource lands. Moves the provisions that were in Minn. Stat. § 97A061 (and paid by the commissioner of natural resources) to Minn. Stat. § 477A.ll-.14 (under which the commissioner of revenue makes the payment). Increases the per acre payment amounts for some types of lands. Changes the distribution of the state aid amount within the counties. Clarifies that the payments are based on the number of acres of each type of land as of the prior year, and changes the cycle under which the county assessors value and re-value the involved tax exempt lands. All the provisions are effective for transfer payments made in 2013 and thereafter.

State aids; debt service aid for the city of Minneapolis. Minn. Stat. chapter 477A, was amended by enacting the new § 477A085. This new section appropriates and requires the commissioner of revenue to pay state aid to the city of Minneapolis annually by November 1, beginning in 2016, in an amount equal to 40% of the city’s otherwise required property tax levy for the following year’s debt service obligation on the city’s general obligation library referendum bonds issued before May 2, 2013. Effective July 1,2013.

Homesteads; flood-affected area.

2010 Minn. Laws, Chapter 389, Article 1, Section 12 was amended to eliminate the two-year duration limit for the homestead continuances allowed under Minn. Stat. § 273.124, subd. 140), for agricultural homestead properties in Marshall county that were affected by floods in March, 2009. The continuances, previously for taxes payable in 2011 and 2012, are now permanent, as long as the specified conditions remain extant. Effective for taxes payable in 2013 and thereafter.

Levy authority; Cloquet Area Fire and Ambulance Taxing District.

2009 Minn. Laws, Chapter 88, Article 2, Section 46, subds. 1 and 3 were amended to provide for uniform tax rates within each served municipality and to limit the tax rate for ambulance service. Effective July 1, 2013.

Tax increment financing; Bloomington.

2008 Minn. Laws, Chapter 366, Article 5, Section 26 was amended to extend a deadline and a duration limit, and to modify the computation of increments for district No. I-I in Bloomington. Effective upon the specified local compliance with Minn. Stat. § 469.1782 and Minn. Stat. § 645.021. An uncoded provision allows the city of Bloomington and its Port Authority to move parcels and increments from tax increment financing district No. I-C to district No. I-D, and to extend the duration limit of those districts for projects related to the Mall of America, subject to certain limitations. Effective upon the specified local approvals. An uncodified provision requires the city to transfer increments from its Mall of America districts that would normally go to the metro-area fiscal disparities pool to renovate and replace the old Cedar Avenue bridge. Effective upon timely local compliance with Minn. Stat. § 645.021, subd. 3.

Levy authority; NW MN Multicounty HRA.

2008 Minn. Laws, Chapter 366, Article 5, Section 33, was amended to extend the duration of the Northwest Minnesota Multicounty Housing and Redevelopment Authority’s authority to levy a property tax through taxes payable in 2018 (previously 2013). Effective for taxes payable in 2014 and thereafter.

Tax increment financing; Oakdale.

2008 Minn. Laws, Chapter 366, Article 5, Section 34, as previously amended, was further amended to allow specific parcels in the city of Oakdale to be in a redevelopment district with an extended duration limit. 2010 Minn. Laws, Chapter 216, Section 55 was amended, to extend a duration limit and to allow certain tax increments to be used on redevelopment costs for additional parcels. Effective upon timely local compliance with Minn. Stat. § 469.1782 and § 645.021, subd. 3.

State aid; Mahnomen.

2006 Minn. Laws, Chapter 259, Article 11, Section 3, as amended by 2008 Minn. Laws, Chapter 154, Article 1, Section 4, was amended to increase the annual payments to the county of Mahnomen (from $450,000 to $900,000), the city of Mahnomen (from $80,000 to $160,000), and Independent School District No. 432 (from $70,000 to $140,000) that compensate for the loss of tax base when the Shooting Star Casino was converted to federal trust ownership. Effective for aids payable in 2013 and thereafter.

Cemetery tax levy; Carlton county unorganized territory.

1999 Laws, Chapter 243, Article 6, Section 11, was amended to eliminate the $1,000 annual limit on the amount that the Carlton county board may annually levy in and for the unorganized territory of Sawyer for cemetery purposes. Effective for taxes payable in 2014 and thereafter following timely compliance with Minn. Stat. § 645.021, subds. 2 and 3 by local officials.

Ambulance tax levies; Cook area and city of Orr.

1988 Minn. Laws, Chapter 645, Section 3, as previously amended, was further amended to expand the allowable uses for the Cook area and city of Orr ambulance tax levy so that the purchase of ambulance-related equipment and repair parts are included. Effective July 1,2013.

Exemptions; professional sport team facilities owned by first-class cities.

Uncodified provisions exempt property in Minneapolis used primarily for a professional basketball team facility (e.g., Target Center); and, property in St. Paul used primarily for a minor league professional baseball facility (e.g., St. Paul ballpark) from general ad valorem property taxes. The exemption does not apply to portions of the property used for residential, business, commercial development, or other purposes not necessary to the operation of the basketball or baseball facility. The properties are not exempt from special assessments, but no other use may be considered in determining the value added to the facility by the improvements paid for with the assessments. Effective the day following timely compliance with Minn. Stat. § 645.021, subds. 2 and 3 by the respective local officials.

Property tax levies; overall limitation.

An uncodified provision establishes an overall property tax levy limitation for all counties, and for cities with a population of over 5,000, for taxes payable in 2014. The limit is: the sum of the jurisdiction’s certified tax levy plus state aid (i.e., county program aid or city local government aid) paid in 2012 or 2013, whichever is greater; increased by 3%; and reduced by the state aids certified for payment in 2014. The limit does not apply to levies for: (i) debt service; (ii) natural disasters; (iii) taxes authorized by referendum to be in excess of the limit; (iv) funding economic development tax abatements; and, (v) storm sewer improvement districts, as each is defined in Minn. Stat. § 275.70, subd. 5, clauses (1) through (5), (7), (9), and (16). The limit cannot be less than the jurisdiction’s certified levy for either taxes payable in 2012 or 2013. The affected jurisdictions are required to supply the commissioner of revenue with the information needed to compute their limit by Ju120, 2013; and, the commissioner must notify them of their limit by September 1, 2013. Effective for taxes payable in 2014.

Property tax savings report and discussion. An uncodified provision requires each county, and each city with a population of over 500, to certify the actual or estimated amount of sales and use tax paid in 2012, and report that amount to the county auditor. The county treasurer is required to include these amounts on the notices of proposed property taxes that are sent to property tax payers in 2013 under Minn. Stat. § 275.065, subd. 3. The counties and cities are also required to discuss the estimated property tax savings that are expected from the sales and use tax exemption in Minn. Stat. § 297A.70, subd. 2, at the public hearings required in 2013 under Minn. Stat. § 275.065, subd. 3. Effective May 24,2013 for taxes levied in 2013 and payable in 2014.

Tax increment financing; St. Cloud.

An uncodified provision provides that forthe purposes of determining the eligible uses of increments derived from district No.2 in the city, the request for certification for the district is after July 31, 1979 and before July 1, 1982. Effective upon timely and local compliance with Minn. Stat. § 645.021, subd. 3.

Tax increment financing; Glencoe.

An uncodified provision extends the duration limit of a specified district for the purpose of paying bonded debt. Effective upon timely local compliance with Minn. Stat. § 469.1782, subd. 2, and § 645.021, subd. 3.

Tax increment financing; Ely.

An uncodified provision extends the duration limit of a district No. 1, and allows the expenditure of increments from district No.3, to pay certain existing obligations. Effective upon timely local compliance with Minn. Stat. § 469.1782, subd. 2, and Minn. Stat. § 645.021, subd. 3.

Tax increment financing; Dakota County Community Development Agency (CDA).

An uncodified provision is enacted to allow the agency to create a redevelopment district comprised of properties that were included in the CDA 10 district in the city of West St. Paul subject to several special limits and allowances. Effective upon timely local compliance with Minn. Stat. § 645.021, subd.3.

Tax increment financing; city of Apple Valley.

An uncodified provision allows the city of Apple Valley to create 20-year soils deficiency districts within certain areas of the city. An uncodified provision allows the city of Apple Valley to spend increments for projects that will create or retain jobs within certain extended time periods. Effective upon timely local compliance with Minn. Stat. § 645.021, subd. 3

Tax increment financing; Minneapolis.

An uncodified provision allows the city of Minneapolis to establish limited areas within the city within which incremental tax revenues can be captured for up to 25 years for uses related to the development of street car lines. Effective May 24, 2013.

Tax increment financing; Maplewood.

An uncodified provision allows the city of Maplewood until 2019 to create one or more redevelopment districts for the 3M Renovation and Retention Project subject to several special allowances and conditions. Effective upon timely local compliance with Minn. Stat. § 645.021, subd. 3.

Tax increment financing;

Minneapolis streetcar financing districts. An uncodified provision allows the city to establish districts in specified areas of the city to finance planning, maintenance, and construction related to street car lines. Effective May 24, 2013.

Tax payment due dates; seasonal businesses.

An uncodified provision extends the due date for the first installment of property taxes due from seasonal resorts and businesses by two weeks, from May 31 to June 14 for taxes payable in 2013 only. Effective May 24, 2013.

State aids; city of Moose Lake.

An uncodified provision appropriates $2 million in fiscal year 2014 to the commissioner of revenue from the state’s general fund for a reimbursement to the city of Moose Lake for costs related to sewer connections for a state facility. Effective July 1,2013

Property used in production; study and report.

An uncodified provision imposes a moratorium on changes in the property tax assessment of properties used in the production of biofuels, wine, beer, distilled beverages, or dairy products. The commissioner of revenue, along with representatives of the affected industries and others, must study the functions and tax status of the various components of the facilities of the affected industries, make recommendations regarding taxation, and identify potential impacts of those tax-base recommendations. The commissioner must report the findings of the study to the legislature by February 1,2014. Effective July 1,2013.

Tax forfeited lands; special laws.

A number of uncodified provisions were enacted in 2013 Minn. Laws, Chapter 73 to authorize the sale or other disposition of specific tax forfeited lands. Many of the provisions were enacted to fulfill a general law requirement that certain forfeited lands may not be disposed of except by act of the legislature (e.g., Minn. Stat. § 282.018). Many of the provisions contain unique limitations, conditions, or provisions regarding the land or the involyed conveyance documents, which are issued by the commissioner of revenue on behalf of the state. The provisions involve lands in: Anoka county (section 10); Carlton county (section 11); Cass county (section 13); Crow Wing county (sections 14 and 15); Freeborn county (section 20); Hubbard county (section 22); Itasca county (sections 23-25); Koochiching county (section 26); Lake county (sections 28-30); St. Louis county (sections 31-33); and, Winona county (section 36). The provisions have differing effective dates. One of the uncodified sections contains a provision that requires Carlton county to offer any tax forfeited parcel in the county that may be sold under the general laws of Minn. Stat. § 282.01-.13, and that is located within the Fond du Lac Indian Reservation, to the band for its appraised value prior to approving another disposition. Effective upon timely local compliance with Minn. Stat. § 645.021.

County Technical Assistance Grants.

An uncodified provision appropriates $300,000 to the commissioner of revenue to fund grants to counties to help them plan for or implement improved electronic and internet-based data reporting procedures for parcel-level and sub-parcel-level data. The commissioner is to decide the conditions and procedures for applying for and awarding the grants. Any amount not expended as of June 30, 2015 reverts to the state general fund Effective July 1, 2013. 2013 Minn. Laws, Chapter 142, Article 1, Section 14.

State aids; reimbursements for disaster abatements.

An uncodified provision appropriates $336,000 to the commissioner of revenue from the state’s general fund in fiscal year 2014 to reimburse taxing jurisdictions in Hennepin county that granted property tax abatements related to tornadoes in 2011 under 2011 Minn. Laws, First Special Session Chapter 7, Article 5, Section 13.

Repealed provisions.

Minn. Stat. § 272.69 was repealed to eliminate a penalty if a lessor of tangible personal property fails to file a list of all leased items with the commissioner by February 15 each year. This requirement is obsolete. Minn. Stat. § 273.11, subd. 22 was repealed to eliminate the one-year value exclusion for residential property if qualifying investments were made reducing hazards related to lead paint. The provision is obsolete beginning with taxes payable in 2013. Effective May 24, 2013.

The following obsolete provisions related to city and county aid were repealed:

  • Minn. Stat. § 477 AOll,
    • subd. 2a (“Special tax district”),
    • subd. 19 (“Metropolitan area”),
    • subd. 29 (“Adjusted Revenue Base”),
    • subd. 31 (“Population decline percentage”),
    • subd. 32 (“Commercial industrial percentage”),
    • subd. 33 (“Transformed population”),
    • subd. 36, (City aid base”),
    • subd. 39 (“Road accidents factor”),
    • subd. 40 (“Metropolitan area factor”), and
    • subd. 41 (“Small city aid base”).
  • Minn. Stat. § 477 A013, subds. 11 (“Aid payments in 2011 and 2012”) and 12 (“Aid payments in 2013”).
  • Minn. Stat. § 477A0133 (“2009 and 2010 Aid Reductions”)
  • Minn. Stat. § 477A0134 (“Additional 2010 Aid and Credit Reductions”).

Police and fire state aid.

The 2013 state pensions act made numerous changes to provisions affecting local police, firefighter, and teacher pension funds. Many of the changes are technical in nature. Some ofthe amended provisions are administered by the commissioner of revenue and affect state aid for municipalities and local pension associations. Minn. Stat. § 69.011, subds. 2, 3, and 4; and § 69.021, subds. 4, 7, and 8, were amended to clarify eligibility, eligibility certifications, and remove an obsolete date. Minn. Stat. § 69.021, subds. 1,2, and 3 were amended to make technical changes in the statutes prescribing the Minnesota Firetown and Aid to Police Premium Reports from insurers. Minn. Stat. § 69.021, subd. 5, was amended to eliminate an annual reduction of the appropriation for state police aid (for certain state auditor costs). Minn. Stat. § 69.021, subd. 6 was repealed to eliminate an obsolete provision on the allocation of police aid, but language allowing corrections to be made in a subsequent year is reenacted as a part of subdivision 7a; where appropriate, references to the departments of natural resources and public safety are added. Minn. Stat. § 69.021, subd. 9; and § 69.031, subd. 1, were amended to clarify provisions related to the departments of natural resources and public safety, and the statewide volunteer firefighters retirement plan. Minn. Stat. § 69.021, subd. 10; and, § 69.031, subd. 5, were amended to accommodate the on-going consolidation of local police and firefighter retirement funds at the state ,level. Minn. Stat. § 69.021, subd. 11 was amended to eliminate an obsolete appropriation. Minn. Stat. § 69.031, subds. 1 and 3, concerning payments and appropriations, were amended with technical clarifications. Minn. Stat. § 69.33, which requires certain reports from fire insurance companies, was amended by adding a cross-reference to the statute under which these surcharge revenues are distributed. Effective July 1,2013. 2013 Minn. Laws, Chapter 111.

MARKET VALUE DEFINITIONS AND FORMULA ADJUSTMENTS OVERVIEW

Numerous statutes were amended to update, change, or correct, the references within those statutes to certain property tax terms such as “market value,” “taxable market value,” and “estimated market value,” and to adjust formulas generally for purposes of clarifying a levy, debt, spending, or other limitation or authorization for a local unit of government. Selected provisions that may affect the Department of Revenue are described below.

Effective date.

Unless otherwise indicated, these changes are effective May 24,2013 for purposes of limits on debt and the issuance of debt instruments; and for taxes and aids payable in 2014 for tax levy and aid computation purposes.

Fire state aid.

Minn. Stat. § 69.011, subd. 1; § 69.021, subd. 7; and, § 69.021, subd. 8 were amended to state that the apportionment of fire aid to municipalities and firefighter relief associations is based on the estimated market value of properties within the jurisdiction.

Eminent domain “blight test.”

Minn. Stat. § 117.025, subd. 7, was amended to modify the term “structurally substandard” for eminent domain (i.e., condemnation) purposes. A property will be substandard for this purpose if the cost of curing the applicable code and safety violations exceeds 50% of the assessor’s estimated market value of the property. Effective August 1, 2013.

Adjusted net tax capacity.

Minn. Stat. § 127A.48, subd. 1, was amended to require the commissioner of revenue to determine equalized property tax values (i.e., “adjusted net tax capacities”) for counties, cities, and towns, in addition to what’s currently required for school districts. The figures will incorporate the effects of the tax increment financing, electric transmission line credit, and fiscal disparities programs. An uncodified provision renumbered Minn. Stat. § 127A.48, subds. 1-6 as § 273.t325, subds. 1-6.

County state aid highway (CSAH) formulas.

Minn. Stat. § 162.07, subds. 3 and 4, were amended to convert two formulas used for CSAH purposes by counties from a percentage of taxable market value to a percentage of estimated market value.

“Estimated market value” for property tax purposes.

Minn. Stat. § 273.03, was amended by adding the new subd. 14, to define “estimated market value” as the assessor’s determination of market value, after equalization, for a parcel of real or personal property.

“Taxable market value” for property tax purposes.

Minn. Stat. § 273.03, was amended by adding the new subd. 15, to define “taxable market value” as the estimated market value of the parcel reduced by market value exclusions and deferrals and other adjustments that reduce market value before class rates are applied.

“Market value” for debt and levy purposes.

Minn. Stat. § 273.032 and § 275.011, subd. 1, was amended to convert the existing definition for “market value” at the taxing jurisdiction level, for the purposes of various debt and levy limits, and state aid computations, so that it is based on the sum of the estimated market values of the parcels within the jurisdiction instead of their taxable market values. The obsolete instruction to include the value of now-exempt wind energy conversion systems is also eliminated.

Platted land market-value exclusions.

Minn. Stat. § 273.11, subd. 1, was amended to correct a cross-reference involving the subdivisions that provide partial and limited market value exclusions for newly-platted parcels to reflect their recodification in 2008.

Homestead penalty provisions.

Minn. Stat. § 273.124, subds. 3a and 13, were amended to replace references to the repealed homestead credit with references to the current homestead market value exclusion.

Tax capacity.

Minn. Stat. § 273.13, subd, 21b, was amended to eliminate an obsolete reference to gross tax capacity.

Disparity reduction aid and credits.

Minn. Stat. § 273.1398, subds. 3 and 4, were amended to require that taxable market values continue to be used to compute the aid and credits despite the change to estimated market values for other aid and credit purposes.

Overall levy limits; growth factor.

Minn. Stat. § 275.71, subd. 4, was amended to convert the basis for the computation of the levy limit growth factor that is based on the increase in the value of commercial/industrial property in the jurisdiction from taxable market value to estimated market value.

Property tax statement.

Minn. Stat. § 276.04, subd. 2, was amended to eliminate an obsolete reference regarding limited market value, and to add a reference to the new definition of taxable market value.

Iron range and metropolitan area fiscal disparity programs.

Minn. Stat. § 276A. 01, subd. 10, was amended to define the term “adjusted market value” for these purposes to be taxable market value after equalization. Minn. Stat. § 276A.Ol, subds. 12 and 13, were amended to provide that the computations of fiscal capacity and average fiscal capacity under this program will be based on adjusted market values. Minn. Stat. § 276A.023, subd. 15, was amended to provide that net tax capacity for this program will be based on taxable market values. Minn. Stat. § 276A.06, subd. 10, was amended to clarify the computation of “fiscal capacity” for these purposes.

Minn. Stat. § 473F. 02, subd. 12, was amended to define the term “adjusted market value” for these purposes to be taxable market value after equalization. Minn. Stat. § 473F.02, subds. 14 and 15, were amended to provide that the computations of fiscal capacity and average fiscal capacity under this program will be based on adjusted market values. Minn. Stat. § 473F.02, subd. 23, was amended to provide that net tax capacity for this program will be based on taxable market values. Minn. Stat. § 473F.08, subd. 10, was amended to clarify the computation of “fiscal capacity” for these purposes .

County inter-fund borrowing.

Minn. Stat. § 385.31, was amended to clarify that the value-based authorization for county to engage in inter-fund borrowing is based on estimated market values not taxable market values.

Nonconforming land use.

Minn. Stat. § 394.36, subd. 1, was amended to clarify that a value-based computation related to nonconforming land uses is based on estimated market values not taxable market values.

Community corrections facilities.

Minn. Stat. § 401.05, subd. 3, was amended to clarify that a value-based computation related to allowable rents for revenue-bond financed community corrections facilities is based on estimated market values not taxable market values.

Special service districts.

Minn. Stat. § 428A.02, subd. 1, was amended to clarify that a value-based computation related to the imposition of service charges within a special service district for certain properties with multiple uses is based on estimated market values, but that the service charges based on net tax capacity are imposed based on taxable market values.

County and city state aid.

Minn. Stat. § 477A.Oll, subd. 20, and § 477A.0124, subd. 2, were amended to update the definitions of city and county “net tax capacity” for purposes of these aid computations to incorporate the revised and recodified statute defining “adjusted net tax capacity” under the new Minn. Stat. § 273.1325. The change to the aid-related definition of city “net tax capacity” is effective May 24,2013.

“Estimated market value;” definition.

Minn. Stat. § 645.44 was amended by adding the new subdivision 20, to incorporate a reference to the definition of estimated market value in Minn. Stat. § 273.032, within this definitional statute.

Renumbered statute.

The Revisor of Statutes is directed to recodify Minn. Stat. § 127A.48. subds. 1-6, defining “adjusted net tax capacity” for school districts, municipalities, and counties, as § 273.1325, subds. 1-6.

Repealers.The following statutes were repealed:

  • Minn. Stat. § 273.11, subd. la was repealed to eliminate the obsolete limited market value provrsions.
  • Minn. Stat. § 276AOl, subd. 11; and, § 473F.02, subd. 13. Eliminates obsolete and
    inconsistent definitions of, and adjustments to, market values of a jurisdiction for purposes of the iron range and metropolitan area fiscal disparity programs.
  • Minn. Stat. § 477 AOll, subd. 21. Eliminates an obsolete definition of equalized market value
    used for purposes of city and county state aid computations under Minn. Stat., chapter 477.

SUSTAINABLE FOREST INCENTIVE ACT (SFIA)

Land subject to conservation easements.

Minn. Stat. § 290C.02, subd. 6, was amended to provide that land exceeding 60,000 acres that is currently enrolled in the Sustainable Forest Incentive program and is subject to a single permanent conservation easement conveyed to a governmental or nonprofit entity under either Minn. Stat. § 97 A056 (Lessard-Sams Outdoor Heritage Fund) or a similar program is no longer eligible for inclusion in the Sustainable Forest Incentive Act program. In addition, land that becomes subject to such conservation easements after May 13,2013 is not eligible for inclusion in the program. Effective for certifications and applications due in 2013 and thereafter.

Motorized access

Minn. Stat. § 290C.03 was amended to require SFIA claimants who enroll more than 1,920 acres to allow year round motorized access on established and maintained roads and trails in addition to allowing nonmotorized access. Effective for calculations made in 2013 and thereafter.

Withdrawal

Minn. Stat. 290C.055 was amended to allow claimants to withdraw from the program if payments are reduced due to changes in the payment formula. Effective for calculations made in 2013 and thereafter.

Change in payment formula

Minn. Stat. §290C.07 was amended to remove the $100,000 cap on payments. All payments are now $7 per acre regardless of how many acres are enrolled. Effective for calculations made in 2013 and thereafter.

Release from covenant

An uncodified provision was enacted that allows lands that are over 60,000 acres and no longer qualify for the program because they are subject to conservation easements, to be released from the covenant. Effective May 24, 2013.

Reenrollment of land previously withdrawn

An uncodified provision allows persons who terminated their enrollment in the program pursuant to 2011 Minn. Laws, First Special Session Chapter 7, Article 6, Section 12 to reenroll in the program and be eligible for a payment in 2013. The person must apply by July 23, 2013. Effective May 24, 2013.

ASSESSOR DUTIES AND SANCTIONS

Board of Assessors

Minn. Stat. § 270.41, subd. 3, was amended to allow the State Board of Assessors to censure and warn or fine assessors and others employed by assessing jurisdictions for failure to faithfully perform their duties. New language provides for written warnings prior to imposing sanctions. Fines cannot exceed $1,000 for a first occurrence or $3,000 for subsequent occurrences. Suspensions cannot exceed one year depending on the severity of the infraction. Actions of the Board to impose sanctions are subject to review in a contested case hearing under Chapter 14. Effective beginning July 1, 2013.

Report to the legislature.

Minn. Stat. § 270.41 was amended by adding a new subdivision 3a to require the Board to report the number and types of disciplinary actions recommended to the Board by the commissioner and the disposition of those recommendations to the House and Senate committees with jurisdiction over property taxes. The report is due by February 1 of each odd numbered year. Effective beginning July 1, 2013.

Assessor’s duties.

Minn. Stat. § 270.41, subd. 5, was amended to modify the list of non-tax property appraisals that an assessor may perform to allow county assessors to do appraisals related to land exchanges in accordance with the recently amended Minn. Stat. § 373.01, subd. ICe). Amends Minn. Stat. § 373.01, subd. ICe)to provide that the county assessors need not be licensed as areal estate appraiser under Minn. Stat. ch. 82B in order to do these appraisals. Effective May 24, 2013.

Fines credited to the general fund.

Minn. Stat. § 270.45 was amended to require that fines collected by the Board are credited to the generalfund, Effective beginning July 1,2013

Assessor accreditation.

A new section, Minn. Stat, 270C.9901 was enacted to require that anyone who appraises real property for purposes of classification or valuation for tax purposes must be licensed as an Accredited Minnesota Assessor by July 1, 2019 or within 4 years of being licensed as a Certified Minnesota Assessor, whichever is earlier. Effective beginning January 1, 2014

Complaints and Investigations.

Minn. Stat.§ 273.0645 was amended by adding a new subdivision 2 to allow county assessors to file written complaints with the commissioner detailing allegations of misfeasance, nonfeasance or malfeasance by local assessors. The commissioner is then required to complete an investigation and recommend appropriate action to the Board. The commissioner may also conduct investigations and recommend actions to the Board in the absence of written allegations from a county assessor. Duplicative language in Minn. Stat. § 273.061 subd. 2 was removed. Effective beginning July 1, 2013.