Section 1 – County Fairgrounds; Improvement Aided – converts the criteria that allows a city, town, or school district to spend up to a certain amount per year on county fairground improvements from taxable to estimated market value.

Section 2 – Agricultural Land Preservation and Conservation Assistance Program – converts minimum levy required for a county to participate in program from 0.01209 percent of taxable market value to estimated market value.

Section 3 – Fire and Police Department Aid – modifies definition of "market value" by changing it to "estimated market value."

Section 4 – Fire and Police Department Aid; Apportionment of Fire State Aid – modifies apportionment of state fire aid based on estimated market value rather than market value.  

Section 5 – Fire and Police Department Aid; Fire State Aid – changes reference from market value to estimated market value.

Section 6 – Department of Natural Resources; Camp Ripley Buffer Easements – provides that value of land for purposes other than taxation be based on estimated market value.

Section 7 – Auxiliary Forest – clarifies that the market value of land in an auxiliary forest for all other purposes other than taxation be based on estimated market value.

Section 8 – Watershed Management Tax District – converts the levy limits on watershed management tax district levies in rural towns 0.02418 percent of taxable market value to estimated market value.

Section 9 – Watershed Management Organizations – converts the reference of levy limits on bond levies in rural towns 0.02418 percent of taxable market value to estimated market value.

Section 10 – Lake Minnetonka Conservation District – converts the total funding limit from .00242 percent of taxable market value to estimated market value.

Section 11 – White Bear Lake Conservation District – changes the levy limit for municipalities within the district from 0.02418 percent of taxable market value to estimated market value on taxable property within the district.

Section 12 –Watershed Districts, Organizational Fund – changes the cap on a district’s organizational expense fund from 0.01596 percent of taxable market value to estimated market value.

Section 13 – Watershed District, General Fund – modifies the limit on a district’s general levy from 0.048 percent of taxable market value to estimated market value.  This section also modifies the levy for basic water management features from taxable market value to estimated market value.

Section 14 – Watershed District, Survey, and Data Acquisition Fund – converts the levy limit from .02418 percent of taxable market value to one based on estimated market value.

Section 15 –Eminent Domain, Blight Test – modifies the definition of  "structurally substandard" in eminent domain law to refer to estimated market value.

Section 16 – State Aid Payment and Adjustment – requires Department of Revenue to compute adjusted net tax capacity values for cities and counties and clarifies that the computations use values that reflect fiscal disparities, tax increment financing, and power line credit.

Section 17 – County Historical Society – converts city and town levy limits from .02418 percent of taxable market value to estimated market value.

Section 18 – Emergency Medical Service Districts – converts district levy limit from 0.048 percent of taxable market value to estimated market value.

Section 19 – County State Aid Highway, Rural Counties– converts levy calculation in CSAH formula for rural counties from 0.01596 percent of taxable market value to estimated market value.

Section 20 – County State Aid Highway, Urban Counties – converts levy calculation in CSAH formula for urban counties from 0.00967 percent of taxable market value to estimated market value.

Section 21 –Town Road Account – converts the minimum levy required for town road and bridge aid from 0.04835 percent of taxable market value to estimated market value.

Section 22 – County Highways; Bridges Within Certain Cities – modifies exemption from requirement that counties spend CSAH money on bridge and dam improvements in cities of the third and fourth class.  Under current law, this requirement does not apply to cities with taxable market value of more than $2,100 per capita and this change converts the amount based on estimated market value.

Section 23 – Taxation in Unorganized Townships – modifies qualifying rules related to expenditure of the county road and bridge levy in unorganized towns from valuation based on taxable market value to estimated market value.

Section 24 – County Road and Bridge Bonds – converts the limit on county road and bridge bonds from 0.12089 percent of market value to estimated market value.

Section 25 – Definition of Estimated Market Value – defines "estimated market value" for property tax statutes as the assessor’s determination of market value.

Section 26 – Definition of Taxable Market Value – defines "taxable market value" for property tax statutes.

Section 27 – Definition of Market Value – converts taxable market value to estimated market value in statute used in computing tax levy limits, debt limits, and statute aid computations and specifically references statutory exclusions and provides that estimated market value is the value prior to these adjustments. ,This section also reverses current law which requires that tax-exempt wind energy property be added to taxable market value. ,Also, limits under special law and city charters that are based on market value are changed to estimated market value. ,The measure of estimated market value for tax limits is the amount for the previous assessment year while it’s the most recently available amount for debt limits.

Section 28 – Valuation of Property - corrects a cross-reference to statute related to value of platted land.

Section 29 – Classification of Property; Tax Capacity – eliminates an obsolete definition of  "gross tax capacity."

Section 30 – Disparity Reduction Aid – requires that taxable market value be used in computing disparity reduction aid.

Section 31 – Disparity Reduction Credit – requires that taxable market value be used in computing disparity reduction credit.

Section 32 – Taxes; Determination of Levy Limit – provides that the law converting old special law and city charter provisions containing levy or mill rate limits provide increases based on growth in estimated market value rather than taxable market value.

Section 33 – Correction of Levy Amount; Towns – modifies threshold used to determine which year levy for a correction of mistakes in town levies will be added to from a percentage or taxable market value to estimated market value.

Section 34 – Levy Limits, Adjusted Levy Limit Base – changes reference from taxable market value to estimated market value under levy limit.  This law is now obsolete.

Section 35 – Contents of Tax Statement – eliminates obsolete reference to limited market value and updates a cross- reference to new definition of "taxable market value."

Section 36 – Iron Range Fiscal Disparities Program, Adjusted Market Value – defines "adjusted market value" under the Iron Range Fiscal Disparities Program statute.

Section 37 – Iron Range Fiscal Disparities Program, Fiscal Capacity – modifies definition of "fiscal capacity" for municipalities.

Section 38 – Iron Range Fiscal Disparities Program, Average Fiscal Capacity – modifies definition of "average fiscal capacity" for municipalities.

Section 39 – Iron Range Fiscal Disparities Program, Net Tax Capacity – modifies definition of net tax capacity by changing market value to taxable market value.

Section 40 – Mortgage Registry Tax – clarifies that the county portion of collections of mortgage registry tax paid for mortgages on properties in more than one county is allocated to the counties based on estimated market value.

Section 41 – Real Property Outside County, Deed Tax – clarifies that the county portion of collections of the deed tax for properties in more than one county is allocated to the counties based on estimated market value.

Section 42 – Volunteer Firefighters Retirement Plan – provides that one-half of additional contributions to a volunteer firefighter’s pension fund, required due to insufficient funds, be allocated to employer-municipalities in proportion to their estimated market values.

Section 43 – Town General Law; Major Purchases – converts threshold that subjects large contracts for town purchases to reverse referendum authority from 0.24177 of the taxable market value to estimated market value.

Section 44 – Towns; Authority to Issue Certificates of Indebtedness – converts reference from market value to estimated market value under threshold that subjects town’s issuance of certificates of indebtedness  to reverse referendum authority.

Section 45 – Towns; Firefighters’ Relief Tax Levy – converts levy limit for firefighter pension benefits from 0.00806 percent of taxable market value to estimated market value.

Section 46 – Metropolitan Area Towns; Certificate of Indebtedness –converts reference from market value of the town to estimated market value of the town concerning threshold for certificates of indebtedness.

Section 47 – Towns May Be Dissolved – converts criteria for dissolution of town from amount of taxable market value to estimated market value.

Section 48 – Counties; Change of Boundaries – changes reference from market value of a county to estimated market value for purposes of the criteria for creating new counties.

Section 49 – Counties; Capital Improvement Bonds – removes definition of "tax capacity."

Section 50 – Counties; Capital Improvement Bond Debt Limit – converts limit on capital improvement bonds from .012 percent of taxable market value of property in county to estimated market value.

Section 51 – Counties; Nonprofit Legal Assistance – converts limit on county’s appropriation to nonprofit corporation providing legal assistance from 0.00604 percent of taxable market value to estimated market value.

Section 52 – Counties; Courthouse – converts debt limit from 0.04030 percent of taxable market value to estimated market value.  Any amount in excess requires approval of majority of county voters.

Section 53 – Counties; County Emergency Jobs Program – modifies the limit that a county may levy for emergency jobs program from 0.01209 percent of taxable market value to estimated market value.

Section 54 – Hennepin County; Building and Maintenance Fund – converts levy limit from 0.02215 percent of taxable market value to estimated market value.

Section 55 – Hennepin County Library Levy – converts levy limit from 0.01612 percent of taxable market value to estimated market value.

Section 56 – Three Rivers Park District Levy – converts levy limit from 0.03224 percent of taxable market value to estimated market value.

Section 57 – Anoka County; Library Debt Limit – converts debt limit on library bonds from 0.01 percent of taxable market value to estimated market value.

Section 58 – Anoka County; Library Levy Limit – converts levy limit from .01 percent of taxable market value of taxable property in the county to estimated market value.

Section 59 – Payment of County Orders or Warrants – converts minimum amount required for county to qualify to borrow from another county from $1.033 billion of taxable market value to estimated market value.

Section 60 – Nonconformities; Continuation of nonconformity – changes from market value to estimated market value concerning an exception to continue nonconforming land uses if more than 50 percent of the market value of the building or structure is destroyed by fire or natural disaster. 

Section 61 – Regional Railroad Authority; Levy Limit – converts levy limit from 0.04835 percent of taxable market value to estimated market value.

Section 62 – Community Corrections; Leasing – converts rent limit from 0.1 percent of taxable market value to estimated market concerning issuance of revenue bonds financing community correction facilities.

Section 63 – Home Rule Charter City; Issuance of Capital Notes – converts debt limit on capital notes issued by home rule charter city without election from 0.03 percent of taxable market value to estimated market value.

Section 64 – Statutory Cities; Contracts – converts threshold that subjects conditional sale contracts and contracts for deed purchases to reverse referendum authority from 0.24177 percent of market value to estimated market value.

Section 65 – Statutory Cities; Certificates of Indebtedness – converts threshold that subjects issuance of certificates of indebtedness to reverse referendum authority from 0.25 percent of market value to estimated market value.

Section 66 – Special Service Districts – modifies test used to determine whether a split use property in a special service district is subject to full or proportionately to the chargers or levies from 50 percent of taxable market value to estimated market value.

Section 67 – Pedestrian Mall; Improvement Assessments – converts levy limits for pedestrian mall improvements from 0.12089 percent of market value to estimated market value.

Section 68 – Hospital; City of the First Class – converts levy limit for cities of the first class owning hospitals from 0.00806 percent of market value to taxable market value.

Section 69 – Tourist Camping Grounds – converts levy for camping ground established by home rule charter or statutory city from 0.00806 percent of taxable market value to estimated market value.

Section 70 – Museum, Gallery, or School of Arts – converts levy from 0.00846 percent of taxable market value to estimated market value.

Section 71 – St. Cloud Transit Commission Levy – converts levy limit from 0.12089 percent of market value to estimated market value.

Section 72 – Duluth Transit Commission Levy – converts levy limit from 0.07253 percent of taxable market value to estimated market value.

Section 73 – Municipalities; Acceptance of Gifts – converts qualifying rule for cities of the second, third, and fourth class to accept gifts with conditions from $41 million of taxable market value to estimated market value.

Section 74 – Housing and Redevelopment Authorities Levy Limit – converts levy limit for housing and redevelopment authorities from 0.0185 percent of market value to estimated market value.

Section 75 – Housing and Redevelopment Authorities Debt Limit – converts debt limit on issuance of general obligation bonds from one-half percent of taxable market value to estimated market value.

Section 76 – Port Authorities; Mandatory City Levy – converts levy limit from 0.01813 percent of taxable market value to estimated market value.

Section 77 – Seaway Port Authority Levy – converts levy limit from 0.01813 percent of taxable market value to estimated market value.

Section 78 – Port Authorities’ Discretionary City Levy – converts levy limit from 0.00282 percent of taxable market value to estimated market value.

Section 79 – Economic Development Authorities; City Tax Levy Limit – converts levy limit from 0.01813 percent of taxable market value to estimated market value.

Section 80 – Tax Increment Financing; Original Net Tax Capacity – provides for adjustments to the original tax capacity of TIF districts for market value exclusions.

Section 81 – Development Pacts with Entities of Other States – converts levy limit from 0.00080 percent of taxable market value to estimated market value.

Section 82 – First Class City; Publicity Levy – converts levy limit from 0.00080 percent of taxable market value to estimated market value.

Section 83 – Hazardous Property Penalty – converts penalty city may assess on property determined to be hazardous from one percent of taxable market value to estimated market value.

Section 84 – Towns/Cities; Joint Maintenance of Cemetery – modifies law allowing contiguous towns and statutory cities to jointly maintain public cemeteries if each have a minimum market value of $2 million.  The minimum market value would be based on estimated market value.

Section 85 – City Improvement Fund – modifies minimum requirement of taconite and iron ore values that permits cities to establish a permanent improvement fund based on estimated rather than taxable market value.

Section 86 – City Improvement Fund; Levy Limit – converts levy limit from 0.08059 percent of taxable market value to estimated market value.

Section 87 – Acceptance of Provisions – modifies reference in acceptance of 1943 law regulating financial practices which applied to cities with more than 50 percent value in unmined iron ore value to refer to estimated market value.

Section 88 – Metropolitan County; Debt Limit – converts debt limit from 0.01209 percent of taxable market value to estimated market value.

Section 89 – Value of Property for Bond Issues by School Districts – converts statute that adjusts school district debt limit for districts affected by airport detachments from taxable market value to estimated market value.

Section 90 – Metropolitan Airport Commission; General Budget  – converts commission’s levy limit for operation and maintenance from 0.00806 percent of market value to estimated market value.

Section 91 – Metropolitan Airport Commission; Additional Taxes –  converts commission’s additional levy limit from 0.00121 percent of market value to estimated market value.

Section 92 – Metropolitan Airport Commission; Levy Limit – converts commission’s levy limit from 0.00806 percent of taxable market value to estimated market value.

Section 93 – Metropolitan Mosquito Control Commission; Levy Limit – converts rate of growth in commission’s levy from the growth in its taxable market value to estimated market value.

Section 94 – Metropolitan Area Fiscal Disparities Program; Adjusted Market Value – defines "adjusted market value" as taxable market value adjusted by the assessment sales ratio.

Section 95 – Metropolitan Area Fiscal Disparities Program; Fiscal Capacity – defines "fiscal capacity" as being based on adjusted market value.

Section 96 – Metropolitan Area Fiscal Disparities Program; Average Fiscal Capacity – defines "average fiscal capacity" as being based on adjusted market value.

Section 97 – Metropolitan Area Fiscal Disparities Program; Net Tax Capacity – defines "net tax capacity" as being based on taxable market value.

Section 98 – Debt of Defines Municipalities; Capitol Improvement Bonds – converts limit that applies under city capital improvement bond law from .16 percent of taxable market value to estimated market value.

Section 99 – Debt of Defined Municipalities; General Net Debt Limit – converts general net debt limit for municipalities other than school districts and cities of the first class from three percent of market value to estimated market value.

Section 100 – Debt of Defined Municipalities; First Class Cities Net Debt Limit – converts net debt limit from two percent of market value to estimated market value.

Section 101 – Debt of Defined Municipalities; School Districts Net Debt Limit – converts net debt limit from 15 percent of taxable market value to estimated market value and clarifies that values may be adjusted by assessor’s sales ratio if it results in a higher limit.

Section 102 – Certain Independent School Districts; City of the First Class – converts net debt limit for bonds with a maturity of more than two years from 0.7 percent of taxable market value to estimated market value.

Section 103 – Refunding Bonds – converts debt threshold that allows a city, county, town, or school to issue refunding bonds without an election from 1.62 percent of taxable market value to estimated market value.

Section 104 – State Board of Investment; Bond Purchase – converts maximum limit on Minnesota municipal bond purchases by State Board of Investment from 3.63 percent of taxable market value to estimated market value.

Section 105 – Local Government Aid; City Net Tax Capacity – updates reference to city net tax capacity in LGA statute to recodified section.  This section is effective the day following final enactment.

Section 106 – Local Government Aid; County Program Aid – updates reference to county net tax capacity in county program aid statute to redodified section. This section is effective the day following final enactment.

Section 107 – County and Regional Jails; Levy Limit – converts levy to pay county jail bonds issued without election from 0.09671 percent of market value to estimated market value.

Section 108 – County and Regional Jails; Leases – converts rent limit permitting lease revenue bond financing of county jails from 0.1 percent of taxable market value to estimated market value.

Section 109 – Definition of Estimated Market Value – adds definition of "estimated market value" to general definition section of statutes.  This definition applies for purposes of levy, tax, spending, debt limit, and calculation of aid payments.

Section 110 – Revisor’s Instruction – directs the Revisor of Statutes to recodify the statute governing calculation of adjusted net tax capacity in property tax statutes (Chapter 273).  This section is effective the day following final enactment.

Section 111 – Repealer – repeals the following statutes: 

• M.S. 273.11, subd. 1a – Limited Market Value
• M.S. 276A.01, subd. 11 – Definition of ‘valuation’ under Iron Range Fiscal Disparities Law.
• M.S. 276A.06, subd. 10 – Adjustment of value under Iron Range Fiscal Disparities Law.
• M.S. 473F.02, subd. 13 – Definition of ‘valuation’ under Metropolitan Area Fiscal Disparities Law.
• M.S. 473F.08, subd. 10 – Adjustment of value under Metropolitan Area Fiscal Disparities Law.
• 477A.01, subd 11 – Definition of ‘equalized market value’ in local government aid statute.

Section 112 – Effective Date – Provides the changes affecting computation of debt limits are effective the day following final enactment while changes affecting levy and tax limitations or aid computations are effective for taxes payable in 2013.

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