1.1                                        A bill for an act
1.2     relating to taxation; providing a property tax rebate; providing for the sale of 
1.3     certain state lands to offset administrative costs of the rebate; appropriating 
1.4     money. 
1.5     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6         Section 1. PROPERTY TAX REBATE.
1.7         Subdivision 1. Eligibility; amount. (a) An owner of a homestead is eligible for 
1.8     a property tax rebate under this section, unless the property taxes on the homestead are 
1.9     delinquent within the meaning of Minnesota Statutes, section 290A.10. 
1.10    (b) On or before October 1, 2006, the commissioner of revenue shall pay the eligible 
1.11    owner a property tax rebate equal to nine percent of the property taxes payable in 2006 
1.12    on the homestead.
1.13        Subd. 2. Definitions. (a) For purposes of this section, the following terms have 
1.14    the meanings given.
1.15    (b) "Commissioner" means the commissioner of revenue.
1.16    (c) "Homestead" means property qualifying as a homestead under Minnesota 
1.17    Statutes, section 290A.03, subdivision 6, for property taxes payable in 2006.
1.18    (d) "Owner" means the individual or trust that is the taxpayer of record for the 
1.19    homestead when the property tax statement was prepared for property taxes payable 
1.20    in 2006.
1.21    (e) "Property taxes payable" has the meaning given in Minnesota Statutes, section 
1.22    290A.03, subdivision 13, except that any adjustments provided under Minnesota Statutes, 
1.23    section 290A.03, subdivision 13, to line 1 of the property tax statement do not apply.
2.1         Subd. 3. County to provide data. (a) The county auditor shall provide the 
2.2     following data to the commissioner of revenue for each homestead in the county:
2.3     (1) the name or names of the property owner or owners;
2.4     (2) the mailing address of the property owner;
2.5     (3) the amount of property taxes payable in 2006 for the property; and
2.6     (4) whether property taxes are delinquent on the homestead within the meaning 
2.7     of Minnesota Statutes, section 290A.10.
2.8     (b) The county auditor shall provide the data to the commissioner electronically in 
2.9     the format and manner and at the time or times specified by the commissioner.
2.10        Subd. 4. Joint rebate rules. If a homestead is owned by two or more persons as 
2.11    joint tenants or tenants in common, the commissioner shall pay the rebate to all of the 
2.12    tenants jointly.
2.13        Subd. 5. Deceased individuals. If a rebate is received by the estate of a deceased 
2.14    individual after the probate estate has been closed, and if the original rebate check is 
2.15    returned to the commissioner with a copy of the decree of descent or final account of the 
2.16    estate and addresses of the beneficiaries, the commissioner may issue separate checks in 
2.17    proportion to their share in the residuary estate in the names of the residuary beneficiaries 
2.18    of the estate.
2.19        Subd. 6. Application of other law. (a) The property tax rebate is a "Minnesota tax 
2.20    law" for purposes of Minnesota Statutes, section 270B.01, subdivision 8.
2.21    (b) The property tax rebate is "an overpayment of any tax collected by the 
2.22    commissioner" for purposes of Minnesota Statutes, section 270C.64, and payment of the 
2.23    rebate is a refund of taxes under Minnesota Statutes, section 289A.50.
2.24        Subd. 7. Lapse of entitlement. If the commissioner of revenue cannot locate an 
2.25    individual entitled to a rebate by July 1, 2008, or if an individual to whom a rebate was 
2.26    issued has not cashed the check by July 1, 2008, the right to the rebate lapses and the 
2.27    check must be deposited in the general fund.
2.28        Subd. 8. Claims for unpaid rebates. Individuals entitled to a tax rebate under 
2.29    subdivision 1 but who did not receive one, and individuals who receive a rebate that was 
2.30    incorrectly computed, must file a claim with the commissioner before July 1, 2008, in a 
2.31    form prescribed by the commissioner. These claims must be treated as if they are a claim 
2.32    for refund under Minnesota Statutes, section 289A.50, subdivisions 4 and 7.
2.33        Subd. 9. Illegally cashed checks. If a rebate check is cashed by someone other 
2.34    than the payee or payees of the check, and the commissioner of revenue determines that 
2.35    the check has been forged or improperly endorsed or the commissioner determines that 
2.36    a rebate was overstated or erroneously issued, the commissioner may issue an order of 
3.1     assessment for the amount of the check or the amount the check is overstated against 
3.2     the person or persons cashing it. The assessment must be made within two years after 
3.3     the check is cashed, but if cashing the check constitutes theft under Minnesota Statutes, 
3.4     section 609.52, or forgery under Minnesota Statutes, section 609.631, the assessment can 
3.5     be made at any time. The assessment may be appealed administratively and judicially. The 
3.6     commissioner may take action to collect the assessment in the same manner as provided by 
3.7     Minnesota Statutes, chapter 270C, for any other order of the commissioner assessing tax.
3.8         Subd. 10. Authority to contract with vendor. Notwithstanding Minnesota Statutes, 
3.9     sections 9.031, 16A.40, 16B.49, and any other law to the contrary, the commissioner 
3.10    of revenue may take whatever actions the commissioner deems necessary to pay the 
3.11    rebates required by this section, and may, in consultation with the commissioner of 
3.12    finance, contract with a private vendor or vendors to process, print, and mail the rebate 
3.13    checks or warrants required under this section and receive and disburse state funds to pay 
3.14    those checks or warrants.
3.15        Subd. 11. Adjustments. A property tax rebate of $276,570,000 is authorized 
3.16    for fiscal year 2006.  The commissioner of finance shall certify by July 15, 2006, 
3.17    the preliminary fiscal 2006 general fund net nondedicated revenues. If certified 
3.18    net nondedicated revenues are less than the amount forecast in February 2006, the 
3.19    commissioner shall proportionally decrease all rebates under this section to rebate the 
3.20    entire amount of the certified net nondedicated revenues. The adjustments under this 
3.21    subdivision are not a rule subject to Minnesota Statutes, chapter 14.
3.22        Subd. 12. Contingent upon resolution of lawsuit. No property tax rebates must be 
3.23    paid under this section, unless the Minnesota Supreme Court reverses the district court's 
3.24    order, dated December 20, 2005, finding the health impact fee under Minnesota Statutes, 
3.25    section 256.9658, unconstitutional and in violation of the settlement agreement in State v. 
3.26    Philip Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second Judicial District), 
3.27    and allows the state to continue imposing and collecting the health impact fee. If this 
3.28    contingency is not satisfied by August 1, 2006, no rebates must be paid, and any land sales 
3.29    under section 2 and the appropriations in section 3, subdivision 1, are canceled.
3.30    EFFECTIVE DATE.This section is effective the day after final enactment.

3.31        Sec. 2. SALE OF STATE LAND.
3.32        Subdivision 1. State land sales. The commissioner of administration shall 
3.33    coordinate with the head of each department or agency having control of state-owned land 
3.34    to identify and sell at least $1,100,000 of state-owned land. This amount is in addition to 
3.35    land sales required in Laws 2005, chapter 156, article 2, section 45, or under any other 
4.1     law. Sales should be completed according to law and as provided in this section as soon as 
4.2     practicable but no later than June 30, 2007. Notwithstanding Minnesota Statutes, sections 
4.3     16B.281, 16B.282, 94.09, and 94.10, or any other law to the contrary, the commissioner 
4.4     may offer land for public sale by only providing notice of lands or an offer of sale of lands 
4.5     to state departments or agencies, the University of Minnesota, cities, counties, towns, 
4.6     school districts, or other public entities. 
4.7         Subd. 2. Anticipated savings.  Notwithstanding Minnesota Statutes, section 
4.8     94.16, subdivision 3, or other law to the contrary, the amount of the proceeds from the 
4.9     sale of land under this section that exceeds the actual expenses of selling the land must 
4.10    be deposited in the general fund, except as otherwise provided by the commissioner of 
4.11    finance. Notwithstanding Minnesota Statutes, section 16B.283 or 94.11, the commissioner 
4.12    of finance may establish the timing of payments for land purchased under this section. If 
4.13    the total of all money deposited into the general fund from the proceeds of the sale of land 
4.14    under this section is anticipated to be less than $1,260,000, the governor must allocate the 
4.15    amount of the difference as reductions to general fund operating expenditures for other 
4.16    executive agencies for the biennium ending June 30, 2007.
4.17        Subd. 3. Sale of state lands revolving loan fund.  $55,000 is appropriated from 
4.18    the general fund in fiscal year 2007 to the commissioner of administration for purposes 
4.19    of paying the actual expenses of selling state-owned lands to achieve the anticipated 
4.20    savings required in this section. From the gross proceeds of land sales under this section, 
4.21    the commissioner of administration must cancel the amount of the appropriation in this 
4.22    subdivision to the general fund by June 30, 2007.

4.23        Sec. 3. APPROPRIATIONS; TRANSFER.
4.24        Subdivision 1. Appropriation; administration.
 4.25    (a) $907,900 is appropriated in fiscal year 2006 from the general fund to the 
4.26    commissioner of revenue to administer the property tax rebates in section 1. Any 
4.27    unencumbered balance remaining on June 30, 2006, does not cancel but is available 
4.28    for expenditure by the commissioner of revenue until June 30, 2007. Notwithstanding 
4.29    Minnesota Statutes, section 16A.285, the commissioner of revenue may not use this 
4.30    appropriation for any purpose other than administering the property tax rebates. This is a 
4.31    onetime appropriation and may not be added to the agency's budget base.
4.32    (b) $186,000 is appropriated in fiscal year 2006 from the general fund to the 
4.33    commissioner of finance to pay the cost of clearing property tax rebate checks through 
4.34    commercial banks. Any unencumbered balance remaining on June 30, 2006, does 
4.35    not cancel but is available for expenditure by the commissioner until June 30, 2007. 
5.1     Notwithstanding Minnesota Statutes, section 16A.285, the commissioner may not use this 
5.2     appropriation for any purpose other than paying the cost of clearing rebate checks.
5.3         Subd. 2. Transfer; tax relief account. The balance in the tax relief account under 
5.4     Minnesota Statutes, section 16A.1522, subdivision 4, is transferred to the general fund.
5.5     EFFECTIVE DATE.This section is effective the day after final enactment.