Legislative Session number- 86

Bill Name: SF3327

2E Relating to the financing of state and local government

ARTICLE 1 -
INDIVIDUAL INCOME, CORPORATE FRANCHISE AND ESTATE TAXES

Authorizing a
homeless prevention and food shelf program income tax checkoff; making
technical, administrative and clarifying changes concerning the filing of
individual income and corporate franchise taxes; clarifying refund notification
procedure in the case of an invalid address; modifying certain tax filing
requirements for nonresident individuals; clarifying the gain on the sale of a
interest in a single limited liability company in relation to federal income
taxes; clarifying definitions of certain terms; subjecting dividends received
from real estate investment trust to taxation under certain conditions;
implementing certain technical and clarifying changes to the estate tax;
clarifying nexus to impose tax on pass-through interests of nonresident
individuals; adding a requirement for certification of qualified
investors

ARTICLE 2 - SALES AND USE

Modifying provisions relating to sales
tax refunds for vendors; defining and modifying definitions to certain terms;
modifying certain sales tax imposition and rates; clarifying the taconite sales
tax exemption to be a minerals production tax exemption; including motor vehicle
repair paint and supplies by motor vehicle repair or body shops under retail
sale and subject to sales tax; clarifying disallowances under burden of tax;
specifying certain business exemptions; expanding the sales and use tax
exemption for region wide public safety radio communication systems products and
services and the exemption for construction materials used in low-income housing
projects; exempting from the sales tax materials and equipment used in the
construction, renovation, upgrading or expansion of a facility used for
manufacturing aerospace or defense products; specifying relief from liability
for certain sellers, certified service providers and purchasers; establishing
conditions where a local government may impose local taxes other than sales;
allowing Proctor to pay city facilities maintenance costs with tax revenue;
removing a limit and increasing bonding maximum; permitting the lodging, food
and beverage taxes in the city of Rochester to pay for certain general
obligation; expanding the use of the Owatonna sales and excise tax to include
payment of certain improvements capital costs and development; specifying
monetary limits and requiring a referendum; specifying termination of taxes;
allowing Owatonna to sell bonds; authorizing Cloquet to impose by ordinance a
sales and use tax and excise tax and to issue obligation bonds; specifying use
of revenues; providing for termination of taxes; authorizing the city of Detroit
Lakes to impose food, beverage and entertainment taxes; authorizing the city of
Ely to impose a sales and use; authorizing the city of Biwabik to impose
lodging, admissions and recreation and food and beverage taxes within the Giants
Ridge recreation area tax; authorizing and providing for the city of Hutchinson
to by ordinance impose a sales and use tax and a motor vehicle tax for a new
water treatment facility and to improve the wastewater treatment facility;
providing for termination of the taxes; authorizing the city of Marshall to
impose a local sales and use tax, a local lodging tax and a local food and
beverages tax

ARTICLE 3 - SPECIAL TAXES

Modifying and clarifying hospital
and surgical center, cigarette, insurance and taconite taxation; allowing
petroleum (gasoline) and cigarette (tobacco) license cancellation or nonrenewal
under certain conditions; modifying cigarette weighted average retail price;
modifying the (insurance) gross premiums definition and allowing additional
taxes or surcharges

ARTICLE 4 - PROPERTY TAXES AND AIDS

Making clarifying
changes relating to property tax assessment; specifying a date deadline for
certification of the airflight property tax portion of the state airport fund
appropriation and requiring certain revenue data and disclosure on the
certification; clarifying certain tax exempt properties; extending the date for
a business incubator property tax exemption; clarifying the duties of certain
tax assessors; providing for the continuation of Minnesota agricultural property
tax law (Green Acres) treatment after certain transfers; authorizing applicant
appeal of assessor valuation application denial; providing a method for
valuation of agricultural property in the green acres program; modifying the
Minnesota agricultural property tax (Green Acres) law; removing the covenant for
the rural preserve property tax program and restricting program to a
qualification requirement; modifying the property tax assessment of class 4 real
estate relating to manufactured home park cooperatives; allowing special
agricultural homesteads for certain taxpayers in Marshall county due to floods
in March 2009; extending the application of the homestead resort property
classification; classifying as agricultural land certain horse training and
riding instruction facilities; modifying the homestead treatment of manufactured
home park cooperatives; modifying certain proposed property tax notices;
modifying the definition of special levies; clarifying conditions in the event
of unallotment; allowing tax payment by electronic methods; requiring tax
statements to disclose separately certain special taxing district levies;
modifying certain land management provisions for Lake Vermilion state park and
Soudan underground mine state park; modifying payments in lieu of taxes for
certain park land; modifying local government's issuing of emergency debt
certificates; making various technical changes; requiring the commissioner of
revenue to conduct a study of the metropolitan fiscal disparities program;
transferring money from the fiscal disparities levy to pay for the
study

ARTICLE 5 - PUBLIC FINANCE; LOCAL DEVELOPMENT

Increasing watershed
districts borrowing authority; modifying capital improvement by including light
rail transit (LRT); changing requirements for economic development authorities
to create and define economic development districts; allowing additional
authority to spend increments for housing replacement district plans; specifying
a time limit for waiver requests; allowing local units of government and
qualified businesses that are parties to job opportunity building zones (JOBZ)
business subsidy agreements to amend agreements by extending the period to meet
business subsidy goals; modifying the JOBZ certification date; authorizing the
metropolitan council to issue certificates of indebtedness, bonds or obligations
for the metropolitan area transit and paratransit capital expenditures
financing; authorizing the housing finance agency (HFA), office of higher
education and the rural finance authority to transfer bonding authority to one
another and modifying higher education bond allocation limits; modifying the
definitions of housing and redevelopment authority; implementing entity;
qualifying real property; allocating certain distributions to St. Louis county;
clarifying a Cook allocation; extending the five-year rule for a tax increment
financing (TIF) district in Landfall Village; establishing a TIF district in the
city of Ramsey; specifying the application of certain rules and providing for an
expiration date; authorizing Wayzata to extend TIF district time for certain
activities; repealing Douglas J. Johnson economic protection trust fund 2010
distributions

ARTICLE 6 - CONDITIONAL USE DEEDS

Modifying the process for
land classification and reclassification as conservation and nonconservation
tax-forfeited lands; specifying certain duties of the county board; providing
for conveyances to public entities under certain conditions; modifying
conveyances relating to targeted community lands; modifying deed of conveyance
form requirements; modifying regulations for conveyance of tax-forfeited land to
a governmental subdivision and the reverter for failure to use provision;
imposing conditional use deed fees on applications; modifying county board
supervision duties for conservation lands; modifying certain tax-forfeited
conservation and nonconservation land sale and method requirements; requiring a
public hearing for public land use change; repealing certain provisions relating
to conveyance of targeted neighborhood lands and certain sale ratification
provisions; repealing ratification of old sales of tax-forfeited lands,
ratification application, approval and effect and pending actions not affected
and Ramsey county sale of tax-forfeited lands authority

ARTICLE 7 -
MISCELLANEOUS

Modifying certain tax payment agreements with the commissioner
of revenue
(rt)