Legislative Session number- 85

Bill Name: HF3149

HF 3149

FOURTH ENGROSSMENT

Omnibus tax bill.

ARTICLE 1 -- HOMEOWNER PROPERTY
TAX REFUND

Section 1: Homeowners language modified.

Section 2: Taxpayer
assistant services; property tax refund language provided.

ARTICLE 2 -- AIDS TO
LOCAL GOVERNMENTS

Section 1: City revenue need language modified.

Section 2:
City aid base language modified.

Section 3: Small city aid base language
provided.

Section 4: City jobs base language provided.

Section 5: Unmet need
language added.

Section 6: County transition aid language modified.

Section 7:
City formula aid language modified.

Section 8: City aid distribution language
modified.

Section 9: Appropriation language modified.

Section 10: Utility
valuation transition aid language provided.

Section 11: State Parks located on
Lake Vermillion; distribution of payments in lieu of taxes language
provided.

Section 12: Study of aids to local governments language
provided.

Section 13: Out-of-home placement aid language provided.

Section 14:
Repealer language provided.

ARTICLE 3 -- LEVY LIMITS

Section 1: Special levies
language modified.

Section 2: Levy aid base language provided.

Section 3: Levy
limits language modified.

Section 4: Authorization for special levies language
modified.

Section 5: Maintenance of effort and matching requirements suspended
language provided.

ARTICLE 4 -- INCOME AND ESTATE TAXES

Section 1: Corporate
franchise and mining company taxes language modified.

Section 2: Federal
extensions language provided.

Section 3: Foreign operating corporation language
modified.

Section 4: Subtractions from federal taxable income language
modified.

Section 5: Corporations; additions to federal taxable income language
modified.

Section 6: Corporations; modifications decreasing federal taxable
income language modified.

Section 7: Bovine testing credit language
modified.

Section 8: Credit allowed; current military service language
modified.

Section 9: Credit allowed; past military service language added. A
tax credit for past military service is issued.

Section 10: Definitions
modified.

Section 11: Credit refundable language modified.

Section 12:
Definitions modified.

Section 13: Determination of sales factor language
modified.

Section 14: Determination of receipts factor for financial
institutions language modified.

Section 15: Tax amount language
modified.

Section 16: Expenses disallowed language added.

Section 17:
Effective date provided.

ARTICLE 5 -- LOCAL DEVELOPMENT

Section 1: Seed
capital investment credit; Commissioner's responsibility language
provided.

Section 2: Business subsidy language modified.

Section 3: Developing
a set of criteria language modified.

Section 4: Public notice and hearing
language modified.

Section 5: Reports by grantors language modified.

Section
6: Use of data language modified.

Section 7: Disclosure to legislative auditor
and state auditor language provided.

Section 8: Report of job opportunity zone
benefits; penalty for failure to file report language provided.

Section 9: Seed
capital investment credit language provided.

Section 10: Bonding for county
library buildings language modified.

Section 11: Operation area as taxing
district, special tax language modified.

Section 12: Correction of errors
language provided.

Section 13: Repayment of tax benefits by businesses that no
longer operate in zone language modified.

Section 14: Breach of agreements by
businesses that continue to operate in zone language provided.

Section 15:
Prohibition against amendments to business subsidy agreements language
provided.

Section 16: Certification of continuing eligibility for JOBZ benefits
language provided.

Section 17: State Auditor; audits of job opportunity
building zones and business subsidy agreements language modified.

Section 18:
Obligations language added.

Section 19: Eligibility language modified.

Section
20: Limitation on use of tax increments language added.

Section 21: District
extension language modified.

Section 22: Definitions modified.

Section 23:
City of Fridley; tax increment financing district; special rules language
modified.

Section 24: City of New Brighton; tax increment financing language
modified.

Section 25: City of Austin; tax increment financing authority
language provided.

Section 26: Bloomington tax increment financing; five-year
rule language provided.

Section 27: City of Bloomington; Tax Increment
Financing District; project requirements language provided.

Section 28: City of
Bloomington; Local Taxing Authority language provided.

Section 29: Mall of
America phase II parking facility revenue bonds language provided.

Section 30:
State review; but-for determination; development agreement language
provided.

Section 31: City of Duluth; extension of time for activity in Tax
Increment Financing Districts language provided.

Section 32: City of Wells;
Disposition of Tax Increment Financing revenues language provided.

Section 33:
Multicounty housing and redevelopment authority levy authority language
provided.

Section 34: City of Oakdale; original tax capacity language
provided.

Section 35: Dakota County Community development authority; plan
modification language provided.

Section 36: City of St. Paul; Tax Increment
Financing District language provided.

Section 37: City of Minneapolis; Tax
Increment Financing District language provided.

Section 38: Temporary increase
in annual volume cap language provided.

ARTICLE 6 -- PROPERTY TAXES

Section 1:
Retired employee health benefits language modified.

Section 2: Powers and
duties language modified.

Section 3: Electric generation facility; personal
property language modified.

Section 4: Electric generation facility; personal
property language provided.

Section 5: Fergus Falls historical zone language
provided.

Section 6: Electric generation facility; personal property language
provided.

Section 7: Leased seasonal-recreational land language
provided.

Section 8: Commissioner review of local assessment practices language
provided.

Section 9: Vacant land platted on or after August 1, 2001; located in
metropolitan counties language modified.

Section 10: Vacant land platted on or
after August 1, 2001; located in nonmetropolitan counties language
modified.

Section 11: Certain vacant land platted on or after August 1, 2001;
located in metropolitan county language provided.

Section 12: Requirements
language modified.

Section 13: Property no longer eligible for deferment
language provided.

Section 14: Determination of value language
modified.

Section 15: Application language modified.

Section 16: Additional
taxes language modified.

Section 17: Special local assessments language
modified.

Section 18: Continuation of tax treatment upon sale language
modified.

Section 19: Applicability of special assessment provisions language
modified.

Section 20: Implementation of program language provided.

Section 21:
Aggregate resource preservation property tax law language provided.

Section 22:
Tax credit for property in bovine tuberculosis management zones language
provided.

Section 23: Valuation of real property, notice language
modified.

Section 24: General rule language modified.

Section 25: Agricultural
homesteads; special provisions language modified.

Section 26: Class 2 language
modified.

Section 27: Class 4 language modified.

Section 28: Classification of
unimproved property language modified.

Section 29: Agricultural homestead
market value credit language modified.

Section 30: Computation of net property
taxes language modified.

Section 31: Tax-exempt property; lease language
modified.

Section 32: Length of session; record language modified.

Section 33:
Failure to certify proposed levy language added.

Section 34: Hearing language
modified.

Section 35: Apportionment of proceeds to taxing districts language
modified.

Section 36: Definitions modified.

Section 37: Tax imposed language
modified.

Section 38: Penalties; removal of aggregate if previous tax not paid;
false report language modified.

Section 39: Proceeds of taxes language
modified.

Section 40: Levy for first responder association language
added.

Section 41: Petition for removal of district; procedure; refund of
surplus language modified.

Section 42: Ordinances language modified.

Section
43: Limitation on abatements language modified.

Section 44: Effective date
language modified.

Section 45: Tax levy may be certified by an airport
authority language modified.

Section 46: White Community Hospital District
language provided.

Section 47: Vadnais Lake Area Water Management Organization;
storm sewer utility fees language provided.

Section 48: City of Brooklyn
Center; participation in crime-free multihousing program language
provided.

Section 49: Assessment of properties of purely public charities
language provided.

Section 50: Federal Audit; School District Levy language
provided.

Section 51: Comfort Lake-Forest Lake Watershed District language
provided.

Section 52: Repealer provided.

ARTICLE 7 -- SALES AND USE
TAXES

Section 1: Ambulance supplies, parts, and equipment language
modified.

Section 2: Sales of certain goods and services to government language
modified.

Section 3: Regionwide public safety radio communication system;
products and services language modified.

Section 4: Construction materials for
qualified low-income housing projects language modified.

Section 5:
Construction materials; Central Corridor light rail transit language
added.

Section 6: Refund; appropriation language modified.

Section 7:
Authorization; scope language modified.

Section 8: Exemptions language
modified.

Section 9: Use of revenues language modified.

Section 10: Expiration
of taxing authority and expenditure limitation language modified.

Section 11:
Use of revenues language modified.

Section 12: Sales and use tax language
modified.

Section 13: Use of revenues language modified.

Section 14: Bonding
authority language modified.

Section 15: City of Mankato; Reverse Referendum
Required language provided.

Section 16: City of Mankato, Local taxes authorized
language provided.

Section 17: Cook County; Lodging and Admissions Taxes
language provided.

Section 18: Cook County; Taxes Authorized language
provided.

Section 19: City of Clearwater; Taxes authorized language
provided.

Section 20: City of North Mankato; Taxes authorized language
provided.

Section 21: City of Winona; Taxes authorized language
provided.

Section 22: Repealer language provided.

ARTICLE 8 -- JUNE
ACCELERATED TAX PAYMENTS

Section 1: Sales and use tax language
modified.

Section 2: Accelerated payment of June sales tax liability; penalty
for underpayment language modified.

Section 3: Accelerated tax payment;
cigarette or tobacco products distributor language modified.

Section 4:
Accelerated tax payment; penalty language modified.

ARTICLE 9 -- SPECIAL
TAXES

Section 1: Tax authorized language modified.

Section 2: Vehicles exempt
from tax, fees, or plate display language modified.

Section 3: Spotter trucks
language modified.

Section 4: Bus; commuter van language modified.

Section 5:
No certificate issued language modified.

Section 6: Spotter truck language
provided.

Section 7: Spotter trucks language provided.

Section 8: Definitions
language modified.

Section 9: Inspection required language modified.

Section
10: Expiration language modified.

Section 11: Creation language
modified.

Section 12: Uses of fund language modified.

Section 13: Expiration
language modified.

Section 14: Uses of fund language modified.

ARTICLE 10 --
MINERALS

Section 1: Other iron bearing material language added.

Section 2:
Iron Range Resources and Rehabilitation Board language modified.

Section 3:
Forest trust language modified.

Section 4: Data classification language
added.

Section 5: Taconite economic development fund language
modified.

Section 6: Imposed; calculation language modified.

Section 7: Taxes
additional to occupation tax; in lieu of other taxes language modified.

Section
8: Cities; towns language modified.

Section 9: Iron Range higher education
account language modified.

Section 10: Estimates language modified.

Section
11: Use of money language modified.

Section 12: Definition language
modified.

Section 13: Effective date language provided.

Section 14: Electric
generating plants in taconite tax relief areas language added.

Section 15: 2008
distributions only language added.

Section 16: Repealer provided.

ARTICLE 11
-- FEDERAL UPDATE

Section 1: Emergency shelters for victims of domestic abuse
language modified.

Section 2: Transitional housing facilities language
modified.

Section 3: Property used to provide computing resources to University
of Minnesota language modified.

Section 4: Superior National Forest;
recreational property for use by disabled veterans language modified.

Section
5: Business incubator property language modified.

Section 6: Agricultural
historical society property language modified.

Section 7: Construction of terms
language modified.

Section 8: Internal Revenue Code language provided.

Section
9: Internal Revenue Code language provided.

Section 10: Limited equity
cooperative apartments language modified.

Section 11: Leasehold cooperatives
language modified.

Section 12: Requirement language modified.

Section 13:
Class 4 language modified.

Section 14: Designated transfer language
modified.

Section 15: Reorganization language modified.

Section 16: Internal
Revenue Code language modified.

Section 17: Credit for research language
modified.

Section 18: Fuel used in other vehicle; claim for refund language
modified.

Section 19: Internal Revenue Code language modified.

Section 20:
Sale, sells, selling, purchase, purchased, or acquired language
modified.

Section 21: Internal Revenue Code language provided.

Section 22:
Exemptions language modified.

Section 23: Internal Revenue Code language
modified.

Section 24: Internal Revenue Code language modified.

Section 25: Bad
debts language modified.

ARTICLE 12 -- DEPARTMENT INDIVIDUAL INCOME AND
CORPORATE FRANCHISE TAXES

Section 1: Individual income, fiduciary income,
corporate franchise, and entertainment taxes; partnership and S corporation
returns; information returns; mining company returns language modified.

Section
2: Foreign operating corporation language modified.

Section 3: Limitation;
carryover language modified.

Section 4: Annual accounting period language
modified.

Section 5: Dividends received from another corporation language
modified.

Section 6: Extension of withholding to certain payments where
identifying number not furnished or inaccurate language modified.

Section 7:
Payments to persons who are not employees language modified.

Section 8:
Repealer language provided.

ARTICLE 13 -- DEPARTMENT SALES AND USE
TAXES

Section 1: Relief for purchasers language provided.

Section 2: Relief
for purchasers language provided.

Section 3: State language modified.

Section
4: Presumption of tax; burden of proof language modified.

Section 5: Drugs;
medical devices language modified.

Section 6: Relief from certain liability
language modified.

Section 7: Purchaser relief from certain liability language
provided.

Section 8: Database files language provided.

ARTICLE 14 --
DEPARTMENT SPECIAL TAXES AND FEES

Section 1: Creation of account;
appropriations language modified.

Section 2: Liability imposed language
modified.

Section 3: Health care provider language modified.

Section 4: Use
tax; legend drugs language modified.

Section 5: Exemptions language
modified.

Section 6: Exemptions language modified.

Section 7: Contraband
defined language modified.

Section 8: Other entities language
modified.

ARTICLE 15 -- DEPARTMENT PROPERTY TAXES AND AIDS

Section 1: Data on
income of individuals language modified.

Section 2: Private data on individuals
language modified.

Section 3: Conversion to exempt or taxable uses language
modified.

Section 4: Reassessed market value language modified.

Section 5:
Utility property language provided.

Section 6: Reassessments required language
modified.

Section 7: Abatement authorization language modified.

Section 8:
Reimbursement, levy, and appropriation language modified.

Section 9: Tax relief
for destroyed property; homestead and disaster credits language
modified.

Section 10: Credit provided language modified.

Section 11: Credit
reimbursements language modified.

Section 12: Homestead application language
modified.

Section 13: Trust property; homestead language modified.

Section 14:
Class 1 language modified.

Section 15: Homestead of disabled veteran language
modified. Disabled veterans qualify for property tax relief.

Section 16: Proof
of compliance; transfer of duties language modified.

Section 17: Contents of
tax statements language modified.

Section 18: Initial application language
modified.

Section 19: Facilities funded from multiple sources language
modified.

Section 20: Qualified disaster area language modified.

Section 21:
Original net tax capacity adjustments; presidential disaster area language
modified.

ARTICLE 16 -- DEPARTMENT MISCELLANEOUS

Section 1: Debt language
modified.

Section 2: Referring agency language modified.

Section 3: Agency
participation language modified.

Section 4: Notice to debtor language
modified.

Section 5: Prohibition against collection during appeal period of an
order language modified.

ARTICLE 17 -- MISCELLANEOUS

Section 1: Definitions
language modified.

Section 2: Surplus Lines Association of Minnesota language
provided.

Section 3: Licensee's duty to submit documents; penalty language
provided.

Section 4: Health Insurance credit language provided.

Section 5:
Dedication fee language modified.

Section 6: Data update language
added.

Section 7: Appropriations language added.

SNA 5/23/08