Legislative Session number- 87

Bill Name: SF0027

1E Relating to taxation

ARTICLE 1 - INCOME AND ESTATE TAXES

Authorizing
tax return information disclosure to the Wisconsin secretary of revenue for
reciprocity study; providing for a phased-in military retirement pay subtraction
from federal taxable income; modifying the Minnesota education tax credit;
providing a taxpayer budget reserve fund checkoff for income and property tax
filings; modifying the Minnesota adjusted taxable estate definition by adding
certain qualified small business and farm property, providing an exclusion for
certain farm and small business properties, imposing a recapture tax under
certain conditions; appropriating money to the commissioner of revenue for the
income reciprocity benchmark study and for the state budget reserve tax
checkoff

ARTICLE 2 - SALES TAXES

Exempting from the sales and use tax
items purchased for transactions covered by medicare, medicaid, and durable
medical equipment, resale of ticket purchases, and certain aircraft and aircraft
equipment; eliminating the sales tax on purchases by towns; expanding the sales
tax exemption for sales and purchases to local government units and for certain
public safety radio equipment; authorizing cities (municipalities) to impose
local sales and use taxes up to a certain amount and requiring voter general
election approval, requiring exclusive dedication to specific capital projects
approved by voters, allowing general obligation bonds issuance; clarifying
election requirements held for local sales tax impositions; imposing a local
government aid (LGA) offset (reduction) for cities imposing local taxes;
modifying the current local sales tax rate in the city of Hermantown under
certain conditions; modifying the Rochester local sales and use tax authority;
modifying the use of the proceeds from the sales tax in the city of Clearwater;
authorizing Fergus Falls, Lanesboro, and Hutchinson to impose sales and use
taxes

ARTICLE 3 - TAX AIDS AND CREDITS

Decreasing the commissioner of
natural resources (DNR) game and fish county payment amount; limiting the DNR
wild goose management cropland payment; eliminating the political contribution
refund; changing property tax capacity, property class 2c managed forest land
property, market value homestead credits, net property taxes computation, the
disparity reduction credit, tax capacity computation, the property tax refund,
local government aid (LGA), property taxes payable in 2011 property tax refund
claims administration, and property tax statement for taxes payable in 2012
only; reducing maintenance of effort requirements; appropriating money for local
government consolidation and service-sharing grants; repealing the political
contribution refund, wetlands exemption, inflation adjustment, market value
homestead credit reduction, disparity reduction credit, and the sustainable
forest resource management incentive

ARTICLE 4 - PROPERTY TAX

Lengthening
the period for which political subdivisions may hold property for later resale;
providing for a property tax exemption for attached machinery and personal
property that is a part of certain electric generation facilities, specifying
certain facility compliance criteria; providing for green acres treatment denial
appeal; modifying the rural preserve property tax plan; allowing certain
expenditures by nonprofit community-service organizations to be considered
charitable contributions to qualify for a reduced property tax classification;
modifying the homestead classification of disabled veteran taxable market value
exclusion and the state general levy for commercial-industrial property and
seasonal residential recreational property; repealing the conservation
assessment plan definition and the state general tax

ARTICLE 5 - TAX
INCREMENT FINANCING

Modifying tax increment financing (TIF) by requiring
housing projects to be commenced by certain dates; extending the deadline for
spending tax increment financing (TIF) increments to stimulate construction;
modifying the boundaries for a TIF district in the city of Ramsey; authorizing
the use of tax increments to repay Cohasset for certain payments; allowing Lino
Lakes to extend the TIF district to a certain date, specifying conditions for
extension

ARTICLE 6 - MINERALS

Exempting mining, producing, or refining
other ores, metals, and minerals from the income tax and subjecting to the
occupation tax; defining refining and defining mining to include
hydrometallurgical processes; specifying a rate of occupation tax; making
conforming amendments; modifying the taconite and iron sulphides tax, division
and distribution of proceeds to cities and towns, property tax relief, the iron
range resources and rehabilitation board (IRRRB) distribution, the Douglas J.
Johnson economic protection trust fund payment, and the taconite environmental
fund payment; repealing taconite economic development fund, the range
association of municipalities and schools, the taconite economic development
fund, city of Eveleth temporary distribution, increase, the state aid
appropriation, and deductions

ARTICLE 7 - MISCELLANEOUS

Expanding the
definition of claimant agency under the revenue recapture act for licensed
ambulance services for unpaid debts collection purposes, authorizing submission
of claims directly to the state, eliminating the authority of a county to charge
an ambulance service a fee for administering a fee when acting as a claimant
agency for the ambulance service, requiring tax information in the biennial
report, appropriating money to the commissioner of revenue for the tax incidence
report; reducing the cash flow account and the budget reserve by requiring the
commissioner of management and budget (MMB) to cancel certain amounts to the
general fund
(rt)