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of the accuracy of the information provided, the Commissioner of Children, Families and Learning must notify the Commissioner of Finance. The Act provides that "upon receipt of this notice...the Commissioner of Finance shall issue a warrant and authorize the Commissioner of Children, Families and Learning to pay to the paying agent for this debt obligation the specific amount on or before the date due. The amounts needed for this purpose are annually appropriated to the Department of Children, Families and Learning from the State General Fund." The Act was not apparently intended to create indebtedness of the State of Minnesota. Payment by the State will be dependent upon the availability of sufficient appropriations for the purpose of the Program. Net Direct Debt- Total direct debt of a municipality less all self-supporting debt, any sinking funds and short-term debt such as tax anticipation notes and revenue anticipation notes. Net Interest Cost- The traditional method of calculating bids for new issues of municipal securities. The total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and then reduced to an average annual rate. The other method is known as the true interest cost (see "True Interest Cost"). Net Tax Capacity for the Local Rate -The Net Tax Capacity for the Local Rate is determined by taking the aggregate Net Tax Capacity for a governmental unit and reducing that total by the captured value in tax increment districts and the value of the contribution to the fiscal disparity pool. The value pledged to these two programs is not available for local taxing purposes. Overlapping Debt- On a municipal issuer's financial statement"overlapping debt" is the debt of other issuers which is payable in whole or in part by taxpayers of the subject issuer. As an example, a county usually includes several smaller government units and its debt is apportioned to them for payment based on the ratio of the assessed value of each smaller unit to the assessed value of the county. Another example is when a school district includes two or more municipalities within its bounds. Referendum Market Value - Market values are determined as of January 2nd of the assessment year and are used for determining taxes for the subsequent (tax payable) year. Taxable Market Value - The estimated market value as adjusted for various statutory exemptions, exceptions, and deferrals. The most common adjustments for homes are the Limited Market Value and "This Old House"deferrals. The Limited Market Value allows the market value of a home to only increase by the greater of 10% or '/4 the difference in values from the prior year, exclusive of new improvements. "This Old House" defers, upon request, the qualifying value of improvements made to homes that are at least 35 years old. Market values are determined as of January 2nd of the assessment year and are used for determining taxes for the subsequent (tax payable) year. Taxable Net Tax Capacity(TNTC) - The Minnesota Legislature has determined that different uses of property should be taxed at different rates. This tax differential is accomplished through the use of class rates; e.g., homesteads at 1.00% of the 11' $75,000 of Taxable Market Value and 1.70% over$75,000; large apartments at 2.50%; commercial property at 2.45% of the 151 $100,000 and 3.5% over$100,000. The class rates are multiplied by the Taxable Market Value of a property to determine its Net Tax Capacity (or tax base). On an individual property, the Net Tax Capacity is multiplied by the local tax rate to determine the property tax. The sum of all the Net Tax Capacities of property in the governmental unit is the Net Tax Capacity (or tax base) of that government.