Signed by Governor Tim Pawlenty

Vote Smart's Synopsis:

Vote to pass an omnibus tax bill.

Highlights:

-Increases the city aid base for cities based on their populations and aid given in previous years (Article 1, Sec. 2). -Establishes a “small city aid base” for cities with populations less than 5,000 at a rate of $12 per citizen (Article 1, Sec. 3). -Establishes a “city jobs base” for cities with populations of more than 5,000 based on jobs per capita (Article 1, Sec. 4). -Declares that the aid limits to cities, counties, and towns will be adjusted for inflation starting in 2010 (Article 1, Sec. 15). -Requires the commissioner of revenue to conduct a review of the property tax status of public charities and prohibits changes in property assessment practices of those charities (Article 2, Sec. 37). -Establishes a homestead property tax program for senior citizens with a household income less than $40,000 who have owned and lived on the property for at least 25 years (Article 3, Sec. 3). -Provides that at least 80% of a business’s gross income must come from active foreign business to qualify as a “foreign operating corporation” (Article 4, Sec. 1). - Prohibits businesses from entering into the Jobs Opportunity Building Zone (JOBZ) program after May 1, 2008 (Article 9, Sec. 8). -Authorizes the city of Bloomington to impose additional taxes, and allocates the funds to a parking facility for phase II of the Mall of America (Article 9, Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that modifies how property is taxed, increases local government aid, and freezes participation in, and increases the oversight of, the Job Opportunity Building Zone program.

Highlights:

- Increases funding for local government aid and modifies the formulas for how such assistance is calculated (Article 2). - Prohibits businesses from entering into the Job Opportunity Building Zone program unless they have entered into an arrangement with a local government unit prior to June 1, 2008 (Article 4, Sec. 12). - Allows a percentage of compensation received from a pension or other retirement pay for service in the Armed Forces to be subtracted from federally taxable income, starting with 25 percent in 2009 and increasing to 100 percent by 2012 (Article 3, Sec. 8). - Eliminates the political contribution refund program, effective for contributions made after June 30, 2008 (Article 3, Sec. 1, Sec. 6). - Limits the existing homestead credit to 60 percent of the amount determined by county auditors for property taxes paid in 2010 and subsequent years (Article 1, Sec. 1). - Establishes a new homestead credit state refund on property taxes paid in excess of two percent of a household's income, so long as a household's income is less than $200,000 (Article 1, Sec. 6).

Full Bill Text

Full Bill Text